An entrepreneur can be defined as a person who starts a business venture through the identification and exploitation of an opportunity, by gathering resources and bearing the risk of failure (Nieuwenhuizen & Nieman 2009:9). Similarly, entrepreneurship is a venture undertaken by an entrepreneur who assumes the risk of the discovery and exploitation of an opportunity (Wolf, Kaudela-Baum & Meissner 2011:2
Entrepreneurship is important for economic development and performance as it relates to productivity, wealth and job creation, innovation and competitiveness (Adekunle 2011:363; Kuratko, Morris & Schindehutte 2015:1; Spencer, Kirchhoff & White 2008:9). However, despite the importance of entrepreneurship, entrepreneurial ventures are susceptible to failure.
Entrepreneurial ventures fail because of a lack of business knowledge or learning, poor planning, a lack of appropriate skills, poor management, poor finance management and inability to reach goals (Freiling & Laudien 2013:2–3; Hammer 2012:3; Urban 2012:17).
Entrepreneurs are facing rapid changes in environmental, economic, market and competitive pressures and, because of these pressures, they seek faster and better ways of keeping up with the pace of change (Crompton 2012:22; International Coach Federation n.d.).
Entrepreneurs want to receive advice on matters such as planning, strategy and marketing, and learn how to engage in high-level thinking (Crompton 2012:20). Furthermore, it is essential for entrepreneurs to continuously develop their skill set in the face of changing environmental pressures (Mazra & Guy 2012:293). Companies are no longer achieving results through traditional management approaches and need to develop inclusive and collaborative working environments. As a result, entrepreneurs seek support to assist them in overcoming these various challenges, improving efficiency, achieving future success and developing necessary skills (Audet & Couteret 2012:516; Crompton & Smyrnios 2011:11; International Coach Federation n.d.; Lamine, Mian & Fayolle 2014:537).
Coaching is used by entrepreneurs as a development tool and a mechanism for support that encourages the high-level thinking necessary to be successful in their endeavours now and in the future (Audet & Couteret 2012:516; Crompton & Smyrnios 2011:11; Dobrea & Maiorescu 2015:248; Fielden & Hunt 2011:354; Saadaoui & Affess 2015:56
The notion of coaching is not a new phenomenon. Previous literature highlights definitions of coaching as a means to assist people in developing the necessary knowledge, opportunities and tools needed for adequate growth (Feldman & Lankau 2005:830). The International Coach Federation (ICF) (n.d.) defines coaching as ‘partnering with clients in a thought-provoking and creative process that inspires them to maximize their personal and professional potential’. Similarly, Vidal-Salazar, Ferrón-Vilchez and Cordón-Pozo (2012:424) define coaching as a management practice that encourages personal development and fosters sustainable economic growth. Audet and Couteret (2012:516) offer a conceptualised definition of coaching as a support structure that facilitates learning and development of potential. Other definitions of coaching include coaching as a process of facilitating growth and change (Moore et al. n.d.:33) and coaching as a tool for self-development for increased effectiveness and fulfilment (Centre for Coaching 2015).
Coaching differs from other managerial tools used to aid the entrepreneur such as consultancy and mentoring. It is important that a distinction be made between these terms. Consultancy does not facilitate learning, unlike coaching which creates and facilitates a learning environment. Coaching does not provide ‘ready-made answers to specific problems’ (Audet & Couteret 2012:516) but rather allows and encourages the entrepreneur to overcome problems through their own problem-solving processes (Audet & Couteret 2012:516; Mühlberger & Traut-Mattausch 2015:202; Rosha 2013:124). Coaching and mentoring are often used interchangeably in literature (Crompton 2012:33; Koopman 2013:11), owing to the fact that the two methods are almost the same. Both these methods encourage an individual to solve problems themselves (Audet & Couteret 2012:516).
However, mentoring is perceived as a voluntary relationship with a long-term focus on the overall business endeavour. The purpose of mentoring is to assist entrepreneurs in broadening their personal horizons and teaching them how to be an entrepreneur.
Mentoring vs Coaching
We accept the definition that mentoring is defined as a formal process of advice or support given by a person who has experience and knowledge to another person who is lacking in such experience and knowledge (Arkün Kocadere 2015:1). Coaching, on the other hand, is perceived as a business relationship with a short- term focus on assisting entrepreneurs in improving business performance through the development of specific skills and goal achievement, for the purposes of growth and success (Audet & Couteret 2012:516–517; Crompton 2012:33; Koopman 2013:3; McKevitt & Marshall 2015:264)
There are several types of coaching; these includes executive coaching, business coaching, personal coaching and entrepreneurial coaching.
Benefits of Coaching
Coaches provide guidance towards a better focus on organisational issues and processes and facilitate change (Botma 2012:7; Wakkee et al. 2010:7) by guiding the entrepreneur into a situation where he or she becomes aware of his or her incompetencies, which becomes necessary for implementing corrective measures. Entrepreneurs are taught to see themselves realistically and reflect on their behaviour and how others perceive their actions, which is achieved through inner potential exploration, learning and self- awareness (Bachkirova, Arthur & Reading 2015:185; Crompton 2012:28; Lawless 2009:10; Vidal-Salazar et al. 2012:426).
The coach provides a structure that does not allow the coach to do work for the entrepreneur, but rather a structure that will facilitate problem-solving and encourage entrepreneurs to derive their own solutions (Audet & Couteret 2012:516; Koopman 2013:5). This solution-focused approach uses thought-provoking questioning that encourages entrepreneurs to change their thinking by challenging their underlying assumptions and allowing entrepreneurs to work through challenges that they perceive as opportunities rather than as problems (Crompton 2012:50; Crompton, Smyrnios & Bi 2014:17; Nikolova et al. 2014:86).
The coach may act as a sounding board for entrepreneurs with the purpose of challenging their thinking and encouraging more strategic thinking for the exploration of alternative perspectives (Gray, Ekinci & Goregaokar 2011:864–865). In this way, coaches are expected to listen and create a safe space for sharing and discussion of problems and opportunities (Crompton 2012:150; Nikolova et al. 2014:86).
How Dawgen Global Help Entrepreneur!
Business transformation necessarily starts with a vision of new products, new markets, or new operating models. It then focuses on making fundamental changes in core business processes to operationalize that new vision or business model. It also entails dealing with numerous organizational design issues that become critical to operating and sustaining a newly transformed business enterprise.
In the course of making such a transformation, few organizations ask how well the core competencies of their leaders and managers are aligned to address either the current or emerging needs of the business. Even fewer ask whether their leaders possess the requisite leadership, technical, and people skills to lead and sustain broad-gauge organizational change.
Practical Example
For example, the implementation of an ERP (Enterprise Resource Planning) initiative within a company calls for a new concept of business operations. There are some Key Questions that need to be considered including :
- How will the business manage and operate differently once enabled by the new ERP system?
- What will the organization’s customers see that’s “new and better” in dealing with the organization once the new ERP processes are up and running?
While implementing the ERP system, most organizations focus their business transformation energies on new processes and new organization designs. Yet, the most important factor in assuring the success of the new system is the introduction of new leadership behaviors and management practices in the organization, to ensure that the benefits of ERP deployment are leveraged quickly and throughout the enterprise to meet customer needs.
Dawgen Global Team is here for you !
Regardless of the size of your business, whether you are a solo entrepreneur, a small business or a Fortune 500 company, Dawgen Global business coaching is aimed at improving the performance of your people and increasing the company’s bottom line.
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