Does Your Company Have an Entrepreneurial Spirit?
9:47 AM ET |
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
- Engaged Employees Help Increase Bottom Line
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