Saturday, October 24, 2009

SMEs - SMEs and creativity

SME owners are all creative! It is often suggested that if you are not creative you will not be likely to succeed as an entrepreneur.

I believe that this is generally overstated. I may well be wrong on this but I have another suggestion on what makes entrepreneurs succeed. They are opportunity aware. They never stop looking for opportunities. They actively look for them. They are not passively waiting for the order. They are deal makers not order takers.

Initially they tend to see mainly "deals" which they are able to close. As they progress so they become able to see deals in other sectors/industries, which leads to diversification (portfolio entrepreneurship). As they proceed further, depending on how well read they are in business in general, so they become better at putting greater "creativity" into the finding/creating of opportunities.

Once they become extremely well versed at this, so they are able to identify structural holes. This is when supply and demand exist, but there is no market mechanism to trade. The ultimate entrepreneur is able to identify the structural holes and close the hole by creating the ultimate creative solution based upon his /her vast knowledge base.

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