8. Team and Culture Flashcards
Do new ventures started by a team have an advantage over new ventures started by a sole entrepreneur, or is the opposite the case?
(8 marks)
2011
It is generally believed that new ventures started by a team have an advantage over those started by an individual because a team brings more talent, resources, ideas, and professional contacts to a new venture than does a sole entrepreneur.
It is unlikely that a single individual will have all the necessary skills and experience in the various business functions eg strategy, operations, finance, sales and marketing. In addition, the psychological support that cofounders of a new business can offer one another is an important element in the firm’s success.
“I prefer a Grade A entrepreneurial team with a Grade B idea to a Grade B team with a grade A idea.”
This was the view of General Georges Doriot, the Professor who founded the first institutional US VC in 1946. Do you share his opinion?
(2011)
“Hawkins elaborated: Cultural fit is extremely important to us, and we try to only hire people that share our values”. (pp. 2-3)
a) Why is a strong organisational culture important for a start-up?
“Hawkins also believed that an international workforce would help Digital Chocolate … “ (p.3)
b) What might be the potential problems when the workforce is located in different countries?
2011 (6 and 6)
a) A strong organisational culture is important because start-ups have a high propensity to fail and this can help to reduce this likelihood in a number of ways.
organisational culture = the bundle of values, norms and rituals that are shared by people in an organisation and govern the way they interact with eachother and stakeholders
Start-ups often have shared values of collaboration, creativity and risk-taking which facilitiates innovation.
Start-ups must have strong elements of trust in their culture - a belief in the reliability, confidence and committment of others. This is essential for all workers to feel a sense of pride and ownership to their work and the business. This will inspire each and every worker to fill their potential and grow the business.
What kind of team does a new venture need?
[6 marks]
- A team consisting of members with skills in a range of fields such as marketing, product development, mangement, finance
- Highly committed individuals, with a vested interest in the success of the business
- Adaptable, flexible to change with the business environment
- Creative thinkers
- Networks, contacts, opportunity
Bill Gates Quote
“We were young, but we had good advice and good ideas and lots of enthusiasm.”
- Bill Gates, founder of Microsoft Corporation
