Entrepreneurs should expect help, not handouts

I frequently encounter an entrepreneur who demonstrates a sense of entitlement. This person expects to get free advice, expects to obtain a meeting or expects to receive funding. Mentors are expected to help without getting paid. Successful people are expected to “give back” and “pay it forward.” Investors are expected to financially enable everyone’s business that will be the next Google, as depicted in every pitch session.

From my perspective of having advised and started a large number of businesses, I have learned that expectations are very rarely attained. Not only is the hoped-for outcome not met, but more often the future yields an unpleasant surprise. Years of experience of startup roller coasters certainly have tempered my enthusiasm for any new venture, but that sense of adventure in pursuing an opportunity is not what I am talking about. I am not talking about confusing confidence with arrogance.

In a recent conversation with an associate who also consults as I do, he commented on a recent meeting where the prospective client raised the issue of fees and compensation in recognition of appreciation for the assistance that was offered. My associate shared his sense of surprise at the offer. He, like me, is often asked for help, and that help, when offered, often is treated as my duty to share what I have learned through my long series of adventures and misadventures.

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Most often a “thank you” is given, but the expression of thanks sounds more like a child reciting a parent-imposed mandate.

As a small-business advocate, I often am cheerleading new entrepreneurs to go out there and give it their best. I recommend that leaders of business not spend money unless it is necessary.  But this advocacy and this advice were never intended to create an uncompensated privilege.

As a group, we now encourage innovation and recognize entrepreneurs who successfully convert ideas into products and services. A portion of our tax dollars goes to provide free business-support services. We hold competitions where we give away prizes. We forgive debts in bankruptcy. Are we guilty of catering to entrepreneurs to the point that we have created a new class of royalty? Or, is the lack of appreciation for support simply a small minority that reflects some of the lesser attributes of the human race?

When I was growing up, it was a common saying that “anyone can grow up to be president” or that “hard work can make anyone rich.” I have no doubt that such statements created in me a sense of opportunity — that the American way of life was not about restrictions based upon class or noble birth or other barriers to personal success. I certainly pursued the American dream.  Although becoming president has lost its glamour and I have gained a true understanding of the role that luck and good fortune play in achieving success, I still work hard — and I try to recognize the value of help and advice when it is given. But, I did not and do not feel entitled.

I often hear phrases such as “it’s your turn” or “your fair share.” Some of these phrases find their way into calls for “social justice” and “distribution of wealth.” There is no doubt that there are serious dysfunctions in the business world and that there is tremendous room for improvement, but does this translate into a sense of entitlement at the individual level?

It may be simply that we are rewarding the concept of ‘entrepreneurship’ without having clearly defined processes and metrics for encouraging entrepreneurship or entrepreneur success. Like giving trophies out to every member of every soccer team in the league without regard to their performance, everyone expects a badge for just showing up.  I do not see this as a new problem, but one that has always existed.

If we seek for entrepreneurs to attain a threshold of professionalism, we should give some thought to how we promote and enable entrepreneurs.

Contact Karl Dakin of Dakin Capital Services LLC at 720-296-0372 or kdakin@dakincapital.com.