THE ENTREPRENEURIAL TEAM Entrepreneurs are not alone here: they tend to establish companies in collaboration with other peoples(team). Successful entrepreneurs either build teams around them or were part of a team. Teaming up with others provides many advantages. For example, you need a lot of information and competences that are impossible to be already owned by a single person. Also in that case, it is quite impossible to have all the needed processing capability in just one person. What is an entrepreneurial team? An entrepreneurial team “consists of two or more persons who have an Interest, both financial and otherwise, in and commitment to a venture’s future and success; whose work is interdependent in the pursuit of common goals and venture success; who are accountable to the entrepreneurial team and for the venture; who are considered to be at the executive level with executive responsibility in the early phases of the venture, including founding and pre- start up; and who are seen as a social entity by themselves and by others” Accordingly, they join forces to start up a company in which they are partners, employees and management team members and these teams are often composed of people with diverse skills, experiences, and backgrounds, which can be essential for the success of a startup. Composition of an Entrepreneurial Team 1. Founder/Entrepreneur: The visionary behind the business idea who takes the lead in driving the venture forward. 2. Co-founder(s): Partners who join the founder(s) to provide expertise in various areas like technology, marketing, finance, or operations. 3. Technical Expert: Someone with specialized technical skills, especially crucial for tech startups. 4. Marketer: Responsible for creating and executing marketing strategies to attract customers. 5. Salesperson: Focuses on generating revenue by selling the product or service. 6. Operations Manager: Manages day-to-day operations, logistics, and supply chain. 7. Financial Expert: Handles financial planning, budgeting, and fundraising. 8. Advisor/Mentor: An experienced individual who offers guidance and advice to the team based on their own entrepreneurial experience. 9. Product Developer: If the business involves a unique product, this person plays a key role in its design and development. 10. Customer Support: Ensures customers have a positive experience and addresses their concerns. 11. Legal/Compliance Expert: Manages legal matters, contracts, and compliance with regulations. Essential Factors for a Successful Entrepreneurial Team To build a successful entrepreneurial team, consider the following factors: 1. Roles and Responsibilities: Each member of the entrepreneurial team typically has specific roles and responsibilities based on their expertise. These roles can evolve over time as the business grows and changes. For example, a co-founder with technical skills might initially focus on product development but could later transition to a more strategic role as the company expands. 2. Complementary Skills: Successful entrepreneurial teams often consist of individuals with complementary skills. This means that the skills and expertise of team members should cover a wide range of areas necessary for the business’s success. For instance, a team may combine a visionary entrepreneur with a technical expert, a marketer, and a financial strategist. 3. Team Dynamics: Building a strong entrepreneurial team goes beyond just having the right skills; it also involves effective teamwork and communication. Team members need to collaborate, share ideas, and work cohesively toward common goals. Establishing clear communication channels and fostering a positive work culture is essential. 4. Diversity: Diversity within an entrepreneurial team can be a significant asset. Diverse teams bring different perspectives, which can lead to more innovative solutions and a broader understanding of customer needs. Diversity can encompass various dimensions, including gender, ethnicity, age, and background. 5. Shared Vision: A shared vision and mission are crucial for aligning the team’s efforts. The team should have a clear understanding of what they aim to achieve and why it matters. This shared sense of purpose can motivate team members and keep them focused on their goals, especially during challenging times. 6. Adaptability: Entrepreneurial ventures often face uncertainty and change. A successful team needs to be adaptable and open to adjusting its strategies and plans as circumstances evolve. This adaptability can be a key factor in overcoming obstacles and seizing new opportunities. 7. Conflict Resolution: Conflicts can arise within entrepreneurial teams due to differences in opinions and approaches. Effective conflict resolution mechanisms should be in place to address these issues constructively and prevent them from harming the team’s dynamics and productivity. 8. Leadership: Leadership within the entrepreneurial team may shift as the business grows. The initial founder(s) may lead in the early stages, but leadership roles can change as the team expands and new challenges arise. Leadership transitions should be managed thoughtfully. 9. Scaling: As the business grows, the entrepreneurial team may need to expand by hiring additional team members or seeking external expertise. Scaling the team should be done strategically to maintain the team’s cohesion and effectiveness. 10. Long-Term Commitment: Entrepreneurial ventures often require a significant time commitment and perseverance. Team members should be committed to the long-term success of the business and willing to weather the ups and downs of entrepreneurship. What are the 7 most important traits an entrepreneur and team must have? 1. Leadership In the context of a startup leadership is the ability to inspire meaningful contributions to the enterprise. The entrepreneurial team needs to lead their wider team, customers, markets and investors to a better future. 2. Willingness to listen There is great strength in allowing others to contribute to the enterprise, as their buy-in not only improves the enterprise but it can also create an emotional attachment to it. The entrepreneurial team needs to be able to take advice from all parties and then rationalize, prioritize, adjust and incorporate it, so the enterprise will benefit from the collective wisdom and experience of the community. 3. People management Mission creep, meandering, and a lack of focus are extremely common failures of entrepreneurial teams. Good management is the continuous organization of people, processes and resources to achieve what you set out to do – on time and on budget – and regularly refining your activity informed by data and experience. Entrepreneurs must be able to effectively manage scarce resources to deliver the business plan. Plans may change but those changes should be a result of deliberate decisions. 4. Decision-making There is never enough time, data or resources in a startup to contemplate decisions for a long period of time. A tinkering entrepreneurial team, who are reluctant to make hard decisions quickly, and keep moving, will be detrimental to the startup. Entrepreneurs must adapt or become obsolete. They must possess the ability to make quick and decisive decisions in uncertain times. 5. Articulating a vision The entrepreneurial team must be able to clearly articulate the problem they are solving, why it matters to their constituency and why they provide the best solution for the problem. They need to be able to paint a picture of a future where the problem is solved, and demonstrate the benefits to the market and their potential investors in solving the problem. 6. Getting the investors on board The entrepreneurial team must be able to hustle and network their way to large pools of potential investors. They then need to convince the investors that their company is the best investment opportunity currently in the market. Getting target investors involved in the journey is a great first step. 7. Attracting the top talent The entrepreneurial team needs to be able to communicate a future that is desirable and tangible for every current and potential employee. Employees must be so heavily engaged in the business that they’d be willing to invest their own capital or take a significant pay cut in exchange for equity. Types of conflict that will affect the whole entrepreneurial team and business/company: Task conflict: conflict because of what Task conflict, as the name says, revolves around the particular task a team is given. In other words, it is about the content of the decisions made by the team in relation to a specific task. This type of conflict comes from differences in ideas and views on the task, and sometimes even stems from disagreements on what the task to be done is in the first place. Task conflict is less destructive when it is isolated, i.e. when it is not underpinned by other types of conflict, for example relationship conflict. Relationship conflict: conflict because of who In relationship conflict, it is the team members relationships with each other that are at stake. Relationship conflict thus includes differences involving different preferences, personal and interpersonal styles, and attitudes. This is one of the types of conflict most likely to be destructive to teams, because it is often linked to negative emotions, hostility and personal dislike, which is not only destructive but also distracting. Relationship conflict is a shadow of task conflict, as the quality of inter-group relationships is linked to the ability to solve tasks together. Process conflict: conflict because of how Process conflict has to do with the delegation of tasks and the process through which team tasks are solved, that is to say, the logistics of accomplishing a task. Conflict arises when there are disagreements over task division and responsibility, as well as strategy on how to best tackle the task. Process conflict is the worst form of intra-group conflict: not only is it linked to a specific task, but the issues at hand is often linked to disagreements about who is in which role and gets to control resources, meaning it shows attributes of relationship conflict too. Status conflict: conflict because of who is where There is evidence that the social hierarchy within a group can be a source of conflict. It is natural for teams to form into social hierarchies, leading to power struggles over social esteem and control over decisions or resources. This form of conflict is structural, meaning there is usually no interest in conflict outcomes, but rather in the broader achievement of a social position or function, which may well exceed beyond the team. Organizational conflict: conflict because of structure This context-related source of conflict refers to the actual make-up of an organization and the rules, norms and values it represents. For example, organizations with limited knowledge, various cultural values and traditions, and different work ethics and visions are less likely to engage in negotiation processes but rather act unilaterally and forcefully. Their organizational counterparts with similar working styles, values and goals are more likely to communicate, negotiate, and seek compromise and conflict resolution. In organizations that are less attuned, there is a likelihood that status struggles will emerge, as power positions bring great benefits to those who attain them. How to solve team conflicts (with strategies)? Focus on the conflict, issues underpinning it, and resolving the situation. Integrating, Obliging, Dominating, Avoiding, and Compromising Focus on the causes of the problem, the broader picture, and future outcomes. Identifying underlying causes together Emphasizing cooperative goals Communicating openly Listening open-mindedly Practicing empathy and understanding Promote mutual goals and resolve problems for mutual benefit REFERENCES: Fuel, Pardo-del-Val, Revuelto-Taboada (2022). Does the ideal entrepreneurial team exist?. Int Entrep Management Journal, https://doi.org/10.1007/s11365-020-00739-x Agarwal, Moran, Meron-Spektor (2018). The Entrepreneurial Tea, www.googlescholar.com Smart Company (2015). Professional Development, https://www.smartcompany.com.au/peoplehuman-resources/professional-development/the-seven-most-important-traits-an-entrepreneurand-team-must-have/ Tiefenbacher (2020). Team conflict: understanding the types of conflict and how to manage them sustainably, https://www.ckju.net/en/dossier/team-conflict-understanding-types-conflict-andhow-manage-themsustainably#:~:text=In%20relationship%20conflict%2C%20it%20is,Dreu%20and%20Weingart %2C%202003).
