Hiring entrepreneurs; we must be mad?

Hiring entrepreneurs sounds a bit like an oxymoron doesn’t it? In fact, an entrepreneur, according to Investopedia is an “individual who, rather than working as an employee, runs a small business.”

However, having set up The Baobab Network 18 months ago, we have just made our second hire with one thing in mind – we want our employees to be entrepreneurs. We’re not na?ve enough to think we have created a groundbreaking hiring strategy that will suit all, nor do we think all our employees in the future will be entrepreneurs, but it has allowed us to think carefully about our company. We want to hire people that are better than we are, and we see entrepreneurs as a fantastic pool of talent to employ from.

What do we like about entrepreneurs?

We work with start-ups in Sub Saharan Africa, and get to see the best and worst traits of entrepreneurs. Here are a few things we like:

Entrepreneurs tend to be self-starters who often need little guidance and, as such, they can be more open to taking calculated risks. Risk is a word that can scare managers, but, by having their own businesses and making important day-to-day judgements, entrepreneurs can be fantastic at making strategic decisions. And when they make mistakes? It’s a learning, not a failure.

Entrepreneurs are often on the pulse of current trends and opportunities which can be hugely relevant and valuable to an organisation. In nature, entrepreneurs are trying to disrupt markets with innovation, and therefore generally have a fantastic idea of what is happening in the market around them. This can open the gates for future opportunities not only for themselves, but also for those they work with.

Entrepreneurs can be fantastic at building networks. When starting a business from scratch, although a shame, a lot can still be said about who you know as well as what you know. Entrepreneurs will often move in different circles rather than your typical corporate networking events, which can open your business up to new opportunities which you never knew existed.

How we have adapted to suit “entrepreneur employees”?

A lot gets written about the appeal of having a ‘start-up culture’ and every day we hear about corporates opening “innovation hubs” in co-working spaces. However, it is also imperative that companies look to facilitate entrepreneurs as part of their teams as well, and we have made several decisions on how to do so:

“Frideation”; we have a philosophy that Fridays can be used to come up with new ideas (hence the clever name). As part of this we allow entrepreneurs to spend the day working on their own business. Having worked at a big corporate, it’s hard to deny that efficiency is below par with the weekend in sight – so let’s adapt. What if something pressing comes up? Of course, our team understand that we may sometimes need to prioritise other things, but it is the exception – the diary has Friday’s blocked out.

Entrepreneurs can leave… and come back. Start-ups are fantastic places to learn, and as such, people leave corporates to join firms where they are given greater responsibility, earlier on. When this happens, how often have employees been honest about their plans to quit? More often than not companies are left in lurch with no contingency plan. We have made it a policy that if someone has their own business and wants to leave, they 100% have our support to do so. Why would you want to keep someone working for you if their passion lies elsewhere? In being supportive of peoples’ businesses, you are also far more likely to be kept in the loop if it looks like they may leave. Leave the door open for them to return to you if their business doesn’t work – they will come back with new experiences and will be better for knowing they gave their idea a go.

Flat hierarchy and flexible working. Entrepreneurs are used to being their own boss, working on their terms. Different working styles are apparent across the workplace, and where possible need to be facilitated. Work from home, work in the evenings, take time out in the day to see a friend. This obviously isn’t possible in all circumstances, but by allowing people to work how they see best, you drive internal efficiency. 

 Is this feasible in the long run?

In a period where it is easier than ever to start your own business, it is becoming more and more realistic that people will ditch stable employment and opt to start something themselves. However, is this something that companies should be scared of, or can we change our attitude to talent acquisition and retention?  

Embrace the likelihood that people won’t have career long jobs. My dad worked for 2 companies over his 40-year career, the much talked millennials are hopping from job to job every 3 years. Let’s embrace this movement rather than be worried about it. Have open discussions of what their life goals are, and support them. I think it’s unlikely that graduates going into investment banking this September truly have a passion for financial modelling, however I bet 99% of them will have suggested they did in their interview (I certainly did). And perhaps the lack of support for their real passions is why so many leave after such a short period of time.

Your business vs. their business. Will we just be a stepping stone for people while they set up their own venture? Maybe. But why should that be an issue. We should have a culture of encouraging people to execute their ideas. A mutual respect is required here; by giving people the opportunity to have their own business, you’d hope that when asked your entrepreneur employee will be able, and willing to prioritise your company.

The role of a Chief Innovation Officer. Label it as you wish, but we believe it is important to have someone responsible for your engagement with start-ups and entrepreneurs who are at different stages of innovation. Entrepreneurs have the potential to disrupt (in the positive sense). It’s important that we have the ability to move with them - instead of against them — to cultivate disruption.

What can entrepreneurs bring to corporates?

It is often frowned upon at big businesses, when someone mentions they have their own business outside of work; it can be perceived as showing a lack of commitment to the company. I’m strongly of the opinion that this attitude needs to change as entrepreneurs  can bring something very different to the table:

Lean thinking. Often, entrepreneurs have learnt the importance of being lean and agile – creating businesses without many resources at their disposal. How often does a lack of budget stop a project at a corporate? Corporates have an abundance of other resources at their fingertips which they could and should use. Furthermore, there is a really positive trend towards intrapreneurship at big companies and hiring entrepreneurs can only fuel this.

Diversity. Entrepreneurs can bring a different way of thinking to corporates. It’s great to have teams who have varied backgrounds and don’t think about things in the same way. It’s not that entrepreneurs will have all the solutions or the correct answers, but they do bring with them an alternative approach to a team comprised of corporate graduates.  

Partnership Opportunities. More and more big companies are looking to partner with start-ups – whether it be banks with FinTechs, or insurance firms desperately seeking innovation. Companies could look to hire entrepreneurs whose interest lie in their wider market – then if that results in the entrepreneur leaving to run such a start-up, they offer the easiest partnership opportunity.

Final Thoughts...

Since launching The Baobab Network, we have spoken with many Heads of Talent at global organisations, who often cite shared worries about losing talent to start-ups. Indeed, both my co-founder Tom and I left big corporates to start The Baobab Network. We were fed up of their slow moving, bureaucratic nature, and craved the opportunity to take our ideas forward.

Despite this, we believe there is a fantastic opportunity for ‘entrepreneurs’ to be ‘employees’. We are in sorts becoming an accelerator – offering office space, access to contacts and expertise, in exchange for an employee who may leave when their own idea takes off. We’d rather benefit from such talent, than have a culture which scares it away.