Does Your Company Have an Entrepreneurial Spirit?

Companies driven by entrepreneurial thinkers are thriving during the recession, according to a professor at Babson College who has identified 15 key attributes that determine whether a firm has an entrepreneurial spirit.

Organizations focused on entrepreneurial culture , organic growth, and aligned compensation trump corporate bureaucracy on a regular basis, according to Joel Shulman and faculty researchers at Babson College.

The 15 attributes that define entrepreneurial from non-entrepreneurial companies are:

• Organic growth opportunities
• Above average ownership stake among key stakeholders
• Low SG&A (Selling, General and Administrative Expenses)
• Above average return on invested capital
• Sustainable growth
• Manageable debt
• Active strategic alliances/partnerships/licensing
• Aligned executive compensation packages
• Low executive turnover
• Transparent governance
• Long duration of key managers
• Low or no dividends
• Family involvement
• High EBITDA Margin Percentage
• Other significant stakeholder relationships

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