Victor Mikhailovich Orlovski talks about the types of entrepreneurs, their distinctive skills and competencies.
Victor Orlovski: managers and entrepreneurs
In business, every entrepreneur is unique and brings their own experience, skills, and vision to our world. And the risks that such an individual takes on are much higher than those taken on by a manager, despite the importance of their work. According to expert Victor Orlovski, there is now a convergence of managers and entrepreneurs. Managers often become the owners of their own businesses. The reverse process occurs much more seldom when entrepreneurs take on managerial roles.
According to Victor Orlovski, entrepreneurs receive considerably greater rewards than managers, but in direct proportion to the risks taken. Unlike in the case of a manager, there is a direct correlation between an entrepreneur’s income and the risk they take. The higher the risk the higher the potential profit. Moreover, each leader achieves goals in different ways depending on the type they belong to.
Categories of entrepreneurs according to Victor Mikhailovich Orlovski
The first type of entrepreneur that Victor Orlovski singles out can be construed as “operator”. They build the businesses they engage in and take a manual approach. They often have the necessary managerial competencies. Know all the inner workings of the company, and are immersed in the processes, being well-versed in them. Victor Orlovski notes that such managers can be found in the restaurant business. Such people often switch from one business to another. They could be running a restaurant one day and then get interested in construction or software the next. “Operators” rarely manage to run several businesses at once, because they have only one true passion – a business that consumes all of their thought processes.
The next type that Victor Orlovski identifies are the “investors”. These are strategists who diversify their investments of time and money. Unlike the managers, investors do not get involved in the manual operations, as their course is to find managers, not build businesses from the ground up by themselves. However, they are willing to risk their own or borrowed funds to invest in those who can build companies. Victor Mikhailovich Orlovski refers to this type of entrepreneur as those who love long-term investments. These people know how to predict the future. However, unlike the “operators,” they do not see the details of business development, but rather observe the greater picture, making global plans. Both types of leaders are important, but each has its own role to play, unique skills and competencies. An entrepreneur often concentrates risks, while an investor, on the contrary, diversifies them across several directions.
The third type of entrepreneur considered by Victor Orlovski is the “speculator.” The word is often perceived in a negative light, as it was used to refer to people who peddled goods at inflated prices for a substantial profit. In fact, speculation is rather about having a quick mind, searching for asymmetries in knowledge and information, as well as taking concrete actions aimed at getting rich quickly. It is all about the ability to navigate the business environment, find a solution, and take advantage of the current situation. A speculative business, according to Victor Mikhailovich Orlovski, is no better or worse than that of an operator or investor.
In general, there are no ideal entrepreneurs. However, many managers combine all three types, with one role taking prevalence over the others. And of course, certain personality traits influence the skills developed in each area of expertise. According to Victor Orlovski, the future is built by the entrepreneurs, as it is thanks to them that new ideas emerge, demand is formed and then satisfied. Victor Orlovski is convinced that a clear understanding of the strengths and characteristics of leaders. This will help in the development of entrepreneurship, which is the engine of development and a key factor in the formation of society and the economy.