Author: Jeff Cornwall

Dr. Jeff Cornwall is the inaugural Jack C. Massey Chair in Entrepreneurship at Belmont University in Nashville, Tenn. Dr. Cornwall's current research and teaching interests include entrepreneurial finance and entrepreneurial ethics.

Dr. Jeff Cornwall is the inaugural Jack C. Massey Chair in Entrepreneurship at Belmont University in Nashville, Tenn. Dr. Cornwall's current research and teaching interests include entrepreneurial finance and entrepreneurial ethics.

Interesting Surveys on Entrepreneurship

The National Dialogue on Entrepreneurship cites two interesting studies on entrepreneurship.
“A new survey from credit card firm Capital One and Consumer Action reveals that the American entrepreneurial spirit is alive and well. The survey found that 40% of Americans dream of owning their own business. The primary reasons for desiring this career option were ‘to do what they want to do’ and ‘to be (my) own boss.’ Within this group of aspiring entrepreneurs, nearly 55% felt that they ‘don’t know where to begin.'”
These results are both a bit concerning to me. The “Be Your Own Boss” myth is one that I try to warn aspiring entrepreneurs about. Entrepreneurs actually have many people to whom they are accountable including, partners, customers, employees, family, bankers, investors, etc., etc. The “don’t know where to begin” response speaks to the need for education for entrepreneurs so they avoid the “ready, fire, aim” approach that I see so many new business owners mistakenly take in their launches.
“Another survey from Wells Fargo and Gallup…found that 86% say they would do it again. Overall, 48% felt that they were very successful, while another 46% said that they were ‘somewhat successful.’ Only 5% felt they had not succeeded. Finally, 76% of the entrepreneurs noted that they believed they were better off financially than if they had opted to work for another company.”
Sounds like a good endorsement to me!

Inc 500

The latest Inc 500 is out, which includes their list of the 500 fastest growing private companies.
While this is kind of interesting to read, there are a few cautions that need to be noted. First, this is a self-report list so there a many businesses that choose not to participate in this type of list. They may not want this type of publicity or may not want the flood of unsolicited contacts that follow getting in this publication.
Second, growth rates are easier off of a smaller denominator (math class time, students…). Assume two companies grow by $100,000. If one only sold $100,000 the year before they would record 100% growth. If the other had $1 million in sales the year before, it would only show 10% growth for the same $100,000 increase.
Third, growing sales at the fastest rate possible is generally not a good thing for any business. Ask any banker.

Entrepreneurship Education in Australia

We have had the pleasure of hosting Colin Dunn and Kathy Griffiths from RMIT University in Melbourne, Australia. They run an ambitious program in which students receive their actual degree in Entrepreneurship (a BBE degree). While most American universities offer a major or a concentration (typically just a handful of courses), the vast majority of the courses RMIT students take focus on entrepreneurship. It is an applied program that requires their students to start a real business before they can graduate. Admission is selective and looks for not only good students, but those with entrepreneurial and leadership potential that is already in evidence.
I look forward watching this program as more of its students make their way into the world.

Tips on Avoiding Common Financing Mistakes

StartupJournal offers a few sound tips on common financing mistakes in start-up ventures.
1. “Not raising enough capital”. True, but I’ll add a corollary: don’t raise too much either, as it can lead poor spending decisions, over-commitment to overhead, and just general mischief.
2. “Risking everything you own”. Very true! We wife and I had significant savings when I went into business in NC, which got us through a very up and down start-up period.
3. “Borrowing from friends and family”. I generally agree with this as it can lead to rather uncomfortable Thanksgiving dinners! However, I have seen it work when the funds are relatively (no pun intended) small and the transaction is done in a truly business-like manner.
4. “Failing to keep good records”. Amen!

Tips on Creating Balance

I recently wrote about the importance of self-assessment and self-reflection. One of the important outcomes of this process is to keep all of the important things in your life and your goals all in balance. This article from StartupJournal offers four practical tips to help keep your business from becoming all consuming.
1. Define what is important in life.
2. Make personal commitments concrete.
3. Just say “no” to non-essential tasks.
4. Delegate, then delegate some more.

Going Global Tough for Small Businesses

Much is said about the global economy and the need for all businesses to “think globablly”. However, a report issued by the SBA Office of Advocacy suggests that the road overseas for small businesses is a difficult one to navigate.
“Small business owners may not have the time and money to invest in overcoming barriers to exporting, suggests a study released today at the South Carolina Chamber of Commerce Business Summit. The study closely examined barriers to exporting faced by a panel of South Carolina small businesses.”
The barriers seem to be many and they are most often situation specific, so the report did not generalize a list of basic barriers that all small businesses face. This makes finding solutions for small businesses looking to go overseas much more difficult.