The Founder's Notes: A Journey of Inspired Ideas, Work and Life by a Leading Serial Entrepreneur by Ji Qi

Author:Ji Qi [Qi, Ji]
Language: eng
Format: azw3
Publisher: LID Publishing
Published: 2020-03-04T16:00:00+00:00

20 September 2014

ENTREPRENEURS AND PROFESSIONAL MANAGERS

It is very difficult for people who do not have sound management skills and knowledge, and solely depend on entrepreneurial spirit, to grow start-up companies to large enterprises. It’s risky, too. At the same time, the advantage that professional managers possess does not always apply to the initial stage of entrepreneurship. Sometimes it can even become an obstacle. Planned or not, the three enterprises I have been involved with are very good at managing both.

Entrepreneurs usually have backgrounds in areas such as marketing, technology or particular industries. They are passionate about their products and markets but are not interested in the company’s day-to-day operations. They tend to think they are smarter than others. They like to take risks. They are vigorous in work. They have big personalities – their strong points and weaknesses are equally noticeable – and they like to do things their own way.

They give open promises to their companies. This means their companies will not only take up most of the time in their lives, but also become their lives. Many of them consider running a company a challenging game and the source of deep happiness.

Professional managers are well-educated people – many have graduated from elite universities in the United States – and have years of experience working in multinational companies. They have received structured professional training and attach importance to numbers and logic. They are different from entrepreneurs when it comes to passion, risk-taking, decision-making, innovation and vision.

Some founders (mostly owners) of entrepreneurial enterprises in China tend to firmly hold on to power and also rely on nepotism. They do not trust professional managers recruited externally and are reluctant to relinquish control of company operations. When professional managers clash with family members of the company founders or company veterans, these entrepreneurs have a tendency to side with family members and the veterans. This means professional managers recruited externally cannot possibly carry out the work they are hired to do. Animosities will inevitably occur if one side tries to push their own policies through. Eventually, it is always professional managers who leave the company in disappointment.

Some professional managers, especially the ones hired by entrepreneurial enterprises controlled by venture capital investors, attempt to erase all contributions made by entrepreneurs, overstate the company’s problems, and put all the blame on their predecessors and the entrepreneurs. Some even attempt to hijack the company to glorify their own careers for their own short-term interests.

In China, both entrepreneurs and professional managers are rare commodities. They should treat each other equally and with respect. Neither the attitude of the rich looking down on educated people, or the attitude of ‘sea turtles’ looking down on ‘local turtles’ (overseas trained people looking down on those who are locally trained) is constructive because neither of them can replace the other. Whoever does not respect this rule will pay severely.

In China’s primitive and fast-growing business environment, only learning from each other and growing together can bring success to everyone. In the current environment, ideal entrepreneurs should possess global knowledge.

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