In Brief
The Problem
Though entrepreneurs are the new heroes of the business world, most companies lack a scientific approach to recruiting managers with entrepreneurial qualities. Instead, they rely on stereotypes.
The Solution
An analysis of the psychological-testing results of more than 4,000 entrepreneurs and 1,800 general managers showed that three factors differentiate entrepreneurs: thriving in uncertainty, passion for ownership, and skill at persuasion.
The Upshot
Entrepreneurs aren’t always more creative than general managers, but they enjoy pushing boundaries. They aren’t risk seekers but find novelty motivating. Much like artists, they want to author and own projects. And they’re natural salespeople. Hiring managers should look for these qualities when recruiting.
Entrepreneurs have become the new heroes of the business world. In the same way that Robert McNamara and his fellow Ford Motor Company “Whiz Kids” elevated general managers to star status, figures like Mark Zuckerberg and Steve Jobs have made entrepreneurs the latest business icons. At Harvard Business School, where I advise the career development program, even students who plan to join blue chip firms and have no intention of ever launching start-ups would be insulted if someone told them they weren’t “entrepreneurial.” I understand why: Entrepreneurialism is highly valued in today’s labor market. Companies of all shapes and sizes aspire to be seen as highly innovative, nimble, and agile—all qualities traditionally ascribed to entrepreneurs.
