Slashdot Mirror
Why Do Entrepreneurs Innovate Better Than Managers?
netbuzz writes "New research from MIT suggests that entrepreneurs innovate better than managers not because they try more often but rather because when they do try they apply more of their available brainpower to the task. 'We found, somewhat surprisingly, that managers and entrepreneurs did not differ in the probability with which they would undertake explorative (potentially innovative) courses of action. But when entrepreneurs did select explorative tasks, they used both the left and right sides of the frontal cortex of their brain whereas managers only used their left parts of the frontal cortex,' says the lead researcher, MIT Sloan School of Management Visiting Prof. Maurizio Zollo. This is an important difference, he notes, 'because the right side of the frontal cortex is associated with creative thinking, involving to a larger extent emotional processes, whereas the left side is associated with rational decision-making and logic.'"
coz they get more excited?
It's often easier to get funding or buy-in if you're genuinely excited about something rather than thinking dispassionately "this is a good thing technically".
The entrepreneur starts the business, makes it successful, then brings in a PHB to watch the money and keep it running. This has been the case for as long as there have been businesses.
Entrepreneurs tend to be creative, driven, and willing to work around the clock. They also tend to be terrible at the "boring" things (like money management). They're often terrible at details, too.
This same basic principle works for established businesses, too. I worked with a company that turned around radio stations many years ago. We'd send in a "hit" team to do the makeover, then put in a PHB to run it after it was successful. Likewise with restaurants: when a new eatery opens, they send in the "A" team to make sure everything is perfect. A few months later, if the restaurant takes off, they send in a "detail" guy to keep it running and making money.
I wouldn't have thought that it'd take a study to discover something this obvious, but it's nice to see it confirmed scientifically. :)
Cogito, igitur comedam pizza.
The article mischaracterizes MIT's research. The original paper did not say that entrepreneurs "innovate better." It said that they used more of their brains. To judge whether they "innovate better" you would have to measure OUTCOMES, which the MIT research did not do.