The duty of an entrepreneur includes managing a business entity with the idea of providing goods and services in a bid to make a profit. However, in this piece, we would be moving a few steps higher. We would be talking about Entrepreneur In Residence (EIR).
In fact, the definition of an EIR will vary from one company to another. It may eventually take on a new name, altogether. At the heart of the role of entrepreneurship is a concept that is crucial to every forward-thinking organization.
An entrepreneur in residence is an individual within an organization who uses their entrepreneurial skills to manage special projects without bearing the costs which those projects demand. They are to develop the project inputting their technical knowledge. The organization in question usually provide the entrepreneur in residence the resources needed to carry out those projects.
Organizations who get great deals assess them. After that, the management decides if they are capable enough to handle them. An EIR may be asked to help out and provide operational assistance to the organization. The goal, however, remains same: to develop a project which the organization can fund and which an EIR can manage and assist on. There are many opinions on this topic- on the role of an EIR. They include but not limited to:
a) Investing in an existing company
b) Doing a roll-up or buying a distressed company.
An EIR is usually pragmatic when developing new companies. This entrepreneur in residence churns in ideas that are valuable enough to make the project successful. In a nutshell, we can say that the role of EIR is to help promote the firm’s mission and vision- to support entrepreneurs in the following:
a) Solving major problems in financial services
b) To promote social responsibility
c) To work on shareholders’ value.
Lessons and Importance Of Being an Entrepreneur in Residence
1) They Help Firms Actualize Their Missions and Visions
EIR look out for infant companies and seek ways to help them grow and blossom. The entrepreneur in residence helps start-up companies to identify their passions and give them the space to help them develop their ideas. An EIR should be able to build and execute business ideas.
2) EIR Teach in the Area of Development
EIR advises start-up companies on product development, technical recruiting, customer acquisition and fundraising. EIR can share their lessons of what worked and did not work in all of those experiences. Many persons consider this information as a valuable knowledge to an organization. Experience brings with it a great value.
3) EIR Bring Significant Value to An Organization
By exploring innovation, EIR bring in fresh perspectives. Apart from working on his knowledge base, the EIR brainstorms for new ideas which are paramount for the success of the organization. It is vital to invite an EIR who perfectly complements and adds value to your team. Such a person will introduce a range of skills, backgrounds, and interests.
4) An EIR Has Class
Usually, an EIR looks forward to joining a vibrant company which equips them with the expertise needed to start their organization. The EIR also can network with other people. This, in itself, gives them class.
5) Being an EIR Allows for Flexibility
Most EIR agreements are about a year long but may vary depending on the firm and the individual. There is a common arrangement that is also well structured. Here, the firm and the EIR work out a plan which is more flexible. Whenever there is no balance in their characters, the arrangement becomes null and void.
6) An EIR can Start A Company
An EIR can go in with an idea, work on it, and present it to the organization. If the EIR is successful, the firm may fund the idea. Also, EIR do take a nominal salary.
7) EIR Vary in Their Level of Focus
While an entrepreneur envisions a company from start to finish, an entrepreneur in residence has a much broader vision for an established company. The entrepreneur in residence works on solving bigger issues within the business. They typically channel more directly applicable skills to given tasks and take more risks within the context of his job.
8) Entrepreneurs in Residence are Innovative
Although an entrepreneur starts a company as a means of providing a good or service, entrepreneurs in residence seek policies, technologies, and applications that will help increase a company’s productivity. As an entrepreneur in residence builds the foundation for recognizing potential problems and solving them, that person also builds the skills required to start a business.
9) Entrepreneurs in Residence Willingly Experiment
Similarly to how entrepreneurs experiment, an entrepreneur in residence possesses the freedom and autonomy for professional growth. An entrepreneur in residence has the power to study and understand current trends required for planning the company’s future. Entrepreneurs in residence analysis their findings and determine methods for staying ahead of business competitors.
10) Entrepreneurs in Residence are Company Leaders
An entrepreneur in residence can become a company’s executive leader over time. They move the business forward and rise to the top as they understand the business from all levels.
A company should recognize and promote successful entrepreneurs as resources that can help the business can succeed and grow. When entrepreneurs in residence work at solving problems, they foster the growth of other talented entrepreneurs in residence and integrate processes for the greater good of the entire company. They are a vital asset to any organization.