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Is there any difference between a good and a successful entrepreneur?
Yes.
The basic difference is that a good entrepreneur takes full advantage of all the instruments at his disposal, whereas a successful entrepreneur, despite that the fact that he’s moving forward and developing his business, he doesn’t use all of his instruments (connections, knowledge, etc.) and opportunities to the full which are at his disposal. The reasons vary, where some of them are ignorance, or as the most common one - relaxation ("we have profit, so we are on the right path").
The reasons that can lead an entrepreneur to success are many. One of them for example is pure luck (which is rare) and another one is lack of competition (or better excessive demand). The second one, is something that basically no-one takes into account, before the 'storm' (e.g. crisis of 2008), where the "good" entrepreneur gives a "wet slap" to a just "successful". At the end of the day, the "successful" entrepreneur will wonder what happened or what he did wrong.
Lack of competition doesn’t only mean that there are not enough competitors, it also means that there is an excessive (very often fictitiously) demand in the market. So the expression "Lack of competition" is quite subjective.
For instance:
One shop in a market of 100 costumers is the same as two shops in a market of 200, three shops in a market of 300, etc. But when the competitors stay the same (let's say 3) and the market demand goes up, then we get the lack of competition in another version of subjectivity. And that's what most of entrepreneurs don't take into account.
Success is not the proper indicator of a good entrepreneur. There is a need for constant review and studying of each situation and the conditions within the business environment, even (if not particularly) when we experience a constant profit. To put it simply, the appropriate indicator of good entrepreneurship, is the level of constant vigilance, revision and uneasiness of the entrepreneur, relating to his competitors and market generally.
Today, many companies exist not because of their good strategies, but because of the lack of appropriate competition (or because of excessive demand, better) and not being controlled by government markets. We can learn a lot from the recent crisis of 2008.
Conclusion - Profit of a company, do not represent a good entrepreneurship, it can represent the level of an excessive demand as well.
by Spyros S.
Director @ UPECO LTD
ATTENTION!
This article intends to give only a general informative picture and should not, in any case, be taken as a rule. It is strongly recommended to seek a full and professional guidance specifically for your circumstances before making any decisions.