The making of an entrepreneur

Is adversity the mother of invention? New research suggests that the majority of entrepreneurs have been motivated by some kind of personal hardship. Business writer Rachel Miller looks at the stories behind the statistics

What makes a successful entrepreneur? Is it personality, vision, skill or just being in the right place at the right time?

Clearly, every entrepreneur is different. But when you look into the stories of successful business owners, a common theme emerges - a surprisingly high number have had to overcome some kind of adversity to succeed.

Take the Dragons’ Den investor Richard Farleigh. He and his ten siblings were sent to foster homes when he was just two years old. Diagnosed as “backward” at the age of five, Farleigh went on to excel at maths and chess, won a scholarship to read economics at university and graduated with a first-class degree. He is now worth more than £121m.

Such inspirational “rags to riches” stories seem to show how individuals have succeeded against the odds. But new research suggests that the odds may have been in their favour all the time: adversity, it seems, could actually be the making of an entrepreneur.

What makes an entrepreneur?

Research by the Aldridge Foundation suggests that 69 per cent of successful entrepreneurs are motivated by personal adversity. For its Origins of an Entrepreneur report, the foundation interviewed 370 successful business-owners about their backgrounds. Seven out of ten said they had been motivated by adversity.

“Entrepreneurs are very good at turning a problem into an opportunity. Overcoming such difficulties is character building,” says Dr Elizabeth Chell, a professor at Kingston University and author of The Entrepreneurial Personality.

Those who have overcome adversity use the same skills needed to run a business, argues Chell. “You have to be persistent and determined to succeed. Running a business is not for the faint-hearted. You’ve got to be resilient and be able to take a few knock-backs.”

The long road to success

But are entrepreneurs born with these character traits or do they develop them? “I think I’ve always been a determined person,” says Craig Earley. In 2008, Craig opened his own shop in Beeston, Nottinghamshire - Happy Daze - selling alternative gifts and clothing.

“My Dad died when I was 12 and I went a bit off the rails,” he admits. Leaving school with no qualifications, Craig turned to drugs and crime and spent time in prison. He suffered another blow when he had to have his leg amputated below the knee after a traffic accident.

“When I lost my leg I spent a few years at home in a wheelchair, getting depressed,” he reveals. Since the birth of his son, however, Craig has got his confidence back and last year he opened Happy Daze with help from the Prince’s Trust.

“I do feel enormous pride that I’ve achieved what I have. Everything that has happened to me has made me the kind of person I am today,” he stresses.

Building character and self-belief

“If you face great adversity, it can strengthen your self-belief and show you what you are capable of,” says Professor Chell. “There are certain skills that a person may develop through adversity, including self-belief, determination and persistence.”

These are qualities that Deborah Stone has in abundance. Deborah has cystic fibrosis and had to rethink her career when she could no longer work in the NHS. “That spurred me on to start my own business,” she explains. “My body was knackered but there was nothing wrong with my brain. I thought, if I am my own boss, no-one can sack me.”

In December 2006, Deborah opened a card and gift shop, The Gigglebucket, in Liverpool. She went on to open a second shop in 2007 and a hair and beauty salon in 2008 in nearby Widnes.

“I found out I had cystic fibrosis when I was 16,” she says. “At first I just wanted to give up. Even my teachers advised me not to bother doing my GCSEs.” Thankfully, Deborah ignored their advice and went on to get a degree. “The cystic fibrosis has given me the drive to succeed.”

Like Craig Earley, Deborah’s achievements have been recognised - both were finalists in the Barclays Trading Places Awards 2009, and Deborah was declared the overall winner.

There’s no doubt that people like Craig and Deborah have guts and determination, and their experiences have clearly shaped their characters. Indeed, Professor Chell argues that there is a clear connection between what life throws at people and the path they have taken as a result.

“These are people who, when faced with adversity, have decided they want to make every day count,” she says. It seems that the school of hard knocks can teach some valuable lessons.