Innovation and risk taking key for successful entrepreneurs

It is a great week for businesses in Kenya as it is the Global Entrepreneurship Summit (GES) week. The GES started in 2009 and is a platform for connecting entrepreneurs with business leaders and other stakeholders who seek to support them.

There are many misconceptions about entrepreneurs. Some people believe that as long as you are in business you are an entrepreneur. Others feel that entrepreneurship is a matter of age –that it is only a preserve of the young digital age.

Many people think that being an entrepreneur is synonymous with being a “hustler” or running a small outfit.

An entrepreneur is a person who develops a startup using ideas and grows it into a profitable enterprise. For one to qualify as an entrepreneur there is an element of their ability to take risks.

There are many people in business who are risk averse and like to play in safe waters. An entrepreneur has the ability to identify opportunities in the market and uses his/her personal drive to meet a need.

There are some people who are naturally blessed with an entrepreneurial spirit. Such people easily take risks and are strongly innovative. Entrepreneurs are go getters and are resilient even in the face of setbacks.

Many of today’s large global corporations were begun by an entrepreneur – someone who identified a need in society, created a solution and was ready to take a risk to ensure the vision was achieved.

Many times the founders of these corporations faced setbacks but they were able to come out stronger and bigger. Despite their initial small beginnings many of these large corporations have lived for many generations.

Being a risk taker and innovative is not enough for an enterprise to survive. An entrepreneur must have some sort of business management skills, resources and the right people. Many entrepreneurs fail because they lacked skills and resources.

One of the common legal pointers entrepreneurs overlook is failing to do feasibility and viability tests before starting a venture.

Some entrepreneurs do not take time to conduct proper research on the regulatory framework of the sector that supports their business.

For example, does the law support your venture? What are the regulatory approvals required? How do you take advantage of the legal environment to maximise your venture?

Entrepreneurs also fail to protect their intellectual property. Before you can begin to commercialise your venture ensure you protect qualifying products and services by the means of intellectual property otherwise there is a risk of plundering.

Over excitement about the business idea can lead to premature disclosure of the same. Many times entrepreneurs are over zealous that they lack discretion about who they share ideas with.

This can be cured by having in place non-disclosure agreements (NDAs) with the people you communicate to.

Another pitfall for entrepreneurs is the lack of a proper business vehicle to carry the business idea. It is important to form a business association to carry the idea. Register a company or other business association to look professional.

Finally, entrepreneurs should seek professional services in the areas of finances, law, marketing and human resources to ensure proper governance structures and avoid pitfalls.

Mputhia is the founder of C Mputhia Advocates. www.cmputhiadvocates.co.ke