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Does Your Company Have an Entrepreneurial Spirit?

politics-business-art-02 Jenvejvoda | Dreamstime.com

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 CONLINK|135|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



Business News Daily Editor

Business News Daily was founded in 2010 as a resource for small business owners at all stages of their entrepreneurial journey. Our site is focused exclusively on giving small business advice, tutorials and insider insights. Business News Daily is owned by Business.com.

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