Sara Sutton Fell, CEO and founder of FlexJobs, says: “To me, an entrepreneurial spirit is a way of approaching situations where you feel empowered, motivated, and capable of taking things into your own hands. Companies that nurture an entrepreneurial spirit within their organization encourage their employees to not only see problems, solutions and opportunities, but to come up with ideas to do something about them.” Entrepreneurial companies tend to have a more innovative approach to thinking about their products or services, new directions to take the company in, or new ways of doing old tasks, she adds. “Entrepreneurial spirit helps companies grow and evolve rather than become stagnant and stale.”
According to Jay Canchola, an independent human resources consultant, entrepreneurial spirit is also associated with taking calculated risks, and sometimes failing. “This usually means that an employee working within a budget and corporate guidelines is allowed or encouraged to find innovative ways of getting the job done. This attitude can have amazing effects not only on profitability, but from an HR perspective can contribute to increases in employee satisfaction, retention, public image and productivity. Other HR effects can include reduced time to fill jobs, especially if the entrepreneurial spirit is used as a leverage point.”
To have an entrepreneurial spirit, you need people who think anything is possible and have the tenacity to accomplish it, says Marc de Grandpre, senior vice president of marketing for KIND Healthy Snacks. “Regardless if you are a senior executive or a junior team member, everyone has a voice that needs to be nurtured, not criticized, in order to continue bringing innovative ideas forward.”
If you think an entrepreneurial spirit can only exist in small companies or startups, think again.
KIND’s de Grandpre says he has worked at big and small companies that have exhibited an entrepreneurial spirit. “It’s all about building a team of people who aren’t afraid to be in the driver’s seat and are equally happy to ride in the passenger’s seat when others take the lead. It is truly built around collaboration; the concept that no idea is a bad idea (yes, cliché). Why be afraid to foster that culture within any company, big or small?”
Sutton says that while any company can have an entrepreneurial spirit, it does tend to be more inherent in startup organizations "because they are small, action-oriented and evolve at a faster pace.” However, she says, “there are many large organizations that most definitely embrace an entrepreneurial spirit: Apple, Virgin, Google and Zappos, to name a few." The challenge as a company grows and matures is that it often becomes more steady and stable and loses some of that entrepreneurial outlook, she says. "It takes work to maintain an entrepreneurial spirit--but all companies can absolutely have it.”
Kerr agrees. He says any company can, and should, set a goal to sustain a thriving entrepreneurial spirit. “But, of course, this gets more challenging as businesses grow—because as they do, there’s a tendency to move towards more complacency, increased bureaucracy, increased hierarchy and more complexity.” Companies start to lose the “underdog mentality” they started out with that fueled a fighting, entrepreneurial spirit—and as they get bigger, businesses may feel they have more to lose than when they started out. This causes them to become more risk-adverse; more protective of what they’ve established. But it’s imperative that employers and employees keep their entrepreneurial spirit alive as the organization grows.
Why?
Culture is a big component of employee retention, de Grandpre says. Teams want to be fulfilled by their jobs and accomplish great things with great people. More than that, employees want to contribute their ideas—so employers and employees must work together to foster a culture that enables ideas to flow from anywhere within the company. “Letting people take their ideas and see them through is very empowering and motivating. It is a simple component of the entrepreneurial spirit that must remain alive.”
Kerr says it’s important to maintain an entrepreneurial spirit because “any business’s success depends on it.” “Over the last ten years we’ve all seen how the notion of being ‘too big to fail’ is a complete folly. One of the riskiest things a business can do is to not take any risks, as complacency is simply not an option.” Agreeing with de Grandpre, Kerr says ideas are the currency of success, and to keep the idea funnel full you need all your employees to embrace an entrepreneurial mindset. He says another reason to keep the spirit alive is the impact on workplace culture. "A loss of entrepreneurial spirit often results in a less fun, creative and passionate work environment.”
The employer and employees are both responsible for maintaining an entrepreneurial spirit as the company grows. Here’s how:
Think like an owner. Employees should feel empowered to make decisions--and employers should let them. “That may require a significant culture shift for many organizations,” Kerr says. “Decision-making processes and approvals need to be simplified; leaders need training in how to hand off the reins; and employees need training, coaching and mentoring to help them confidently grab hold of the reins.”
Champion all ideas. Since everyone is tasked with thinking like an owner, when an employee presents an idea, it’s important that their boss and co-workers not shoot it down immediately, de Grandpre says. “Ask your colleague questions to understand their thinking or build on top of their ideas as it encourages them to remain open and share ideas. Even if you ultimately end up walking away from an idea, they’ll understand why.” Always make it a learning opportunity when you push an idea forward or table it. By doing so, you drive engagement which ultimately will fuel creativity and productivity, he says.
Kerr adds: "To keep ideas coming from employees, managers need to respond to every idea and every suggestion in a timely and forthright manner so that employees feel their ideas aren’t disappearing into a black hole."
As a hiring manager, only recruit those who have an entrepreneurial spirit. Canchola says you should make it clear to all applicants that this is a corporate value and ask for examples during interviews.
Minimize the rules. “One of my favorite signs I’ve seen in a workplace: ‘When Policy Fails, Try Thinking,’” Kerr says. “A bloated bureaucracy and unnecessary policy stifles creativity, freedom and entrepreneurial spirit, so as a manager, be vigilant. Go on a rule diet. Create a ‘No Sacred Cows’ committee to look for ways to keep the bureaucracy to a minimum or start a ‘Dilbert Squad’ to seek out and destroy just plain stupid policies that are inane enough they might just show up in a Dilbert cartoon.”
Keep a “Crazy Ideas” file. “At my previous company, and currently with FlexJobs, we have a policy that everyone should feel free to throw out any idea they have, no matter how grand or seemingly unattainable,” Sutton Fell explains. “I have a folder where I keep them--the ‘Crazy Ideas’ folder--and review them periodically to see the possibilities.” As an employee, never be afraid to offer an idea—even if it seems “crazy.” (You never know—the idea might be useful later on!)
Give people the opportunity to drive. If a team member comes up with an idea that may not be part of their “scope of responsibility,” help connect them with the right teams and let them bring their ideas to life, de Grandpre suggests. Whether you’re the boss or a co-worker, try to give them that opportunity. “It will expand their skills, thinking and again, drive engagement while ultimately fostering cross-functional teamwork.”
Create a recognition program that rewards people for thinking like an entrepreneur. As a manager, reward those who are constantly sharing ideas that are simple and small, but still make a significant difference to either the customer experience or company bottom line, Kerr suggests.
Canchola agrees. He says it’s important, as an employer, to recognize those who take risks. “I once read about a company that regularly recognized people for taking risks that failed. The key ingredient was understanding the lessons learned so that they become a foundation for future success.”
Try to work with colleagues in different departments. Cross-pollination of ideas is a must, Sutton Fell says. “One of the reasons smaller companies are naturally more entrepreneurial is because of this – the team is small enough that everyone has a voice and input on everything, even if it’s not part of their core responsibility or strength. As companies get bigger, departments tend to be segmented off from other departments, losing the diversity of ideas, fresh perspectives and organic innovation that can come from cross-pollination.”
Always communicate. As companies grow, internal communication gets more complex and naturally suffers, Kerr says. “Companies need to be intentional about their internal communication. If employees are indeed being asked to think like owners, then they need the same level of information that owners receive: they need a clear understanding of the big picture including all the costs and relevant financial information. How can employees be encouraged to look for cost-saving opportunities, for example, if they don’t have an accurate picture of all the real costs associated with their business?“
Ask for flexible work options. Part of being entrepreneurial is doing your work when and where you do it best, Sutton Fell explains. “Flexible work options such as telecommuting and flexible or alternative schedules are proven to increase productivity, engagement, loyalty and overall happiness -- all of which set a good foundation for better ideas and a better company.” If your employer doesn't offer flexible work options, ask for them.
Create a culture of questioning. Questions fuel the creative process and entrepreneurial mindset, Kerr says. “Perhaps you can open meetings with a thought-provoking question; you can create a board where co-workers can write down any query they may have; or you can pose a question of the month to get everyone focused and thinking about a certain aspect of the business.”
Set an entrepreneurial example. As with most elements of a company’s culture, the entrepreneurial spirit has to come from the top and from within, Sutton Fell says. “Whether you’re in upper management or not, setting an example for yourself and your department can always help trigger more responsive, innovative ideas around you. For me, I know that if I’m not open to new ideas and new ways of doing things, how can I expect my team to be open to them?”
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