How do managers and entrepreneurs develop? Opinion of Victor Orlovski

The main quality that distinguishes an entrepreneur from everyone else, even the most senior of employees, is the ability to take on risks. Victor Orlovski is confident that the level of risk taken on by an entrepreneur exceeds the responsibilities handled by their employees many times over. Managers who can withstand such intense pressure can often become entrepreneurs and successfully combine the necessary traits. However, according to Victor Orlovski, the reverse process can also be observed, with entrepreneurs abandoning their element to take on managerial roles.

 As Victor Orlovski believes, many individuals are now combining the functions of a manager and an entrepreneur. In the latter case, the rewards are much higher due to the risks involved. The higher the risk, the higher the possible income. But the approaches of entrepreneurs to leadership can vary diametrically, depending on their skills and character traits.

Victor Orlovski: main types of entrepreneurs

The following are the most common types of leaders identified by expert Victor Orlovski:

• “Operators”
• “Investors”
• “Speculators”.
  

The first type prefers to build a business from the ground up and understand each process in intricate detail. As Victor Orlovski notes, by possessing the necessary managerial competence, these managers immerse themselves in a business headlong and like to build processes on their own. Among the representatives of this type are, for example, restaurant owners. At the same time, such people rarely manage several projects simultaneously. Most often, they manage one endeavor, but with complete dedication.

Victor Orlovski singled out “investors” as a separate category. These are strategists who diversify investments of time and money. Unlike the managers, they do not build a business, but rather select and appoint competent managers. Such people formulate strategies and can see the development of their company well into the future. If we draw an analogy with the military structure, the “operators” are field generals, while the “investors” are chiefs of staff charged with drafting a plan of action. 

The speculative type of entrepreneurs, according to Victor Orlovski, despite the negative connotation of the word, is devoid of evaluative characteristics. As a rule, they are characterized by their speed of decision-making, the search for the necessary knowledge, and by actions aimed at getting rich rather quickly. Speculators are able to instantly adapt to changing conditions and emerge as winners, turning circumstances to their advantage. Such an approach, according to Victor Orlovski, is no better or worse than the cases of the “operators” or the “investors”. But, of course, it is quite risky.

Among the most prominent representatives of business, Victor Orlovski singles out Steve Jobs, whom he deems the ideal “operator” – one who was able to build the most expensive company in the world. Warren Edward Buffett is an excellent “investor” who knows how to diversify risks and choose assets for long-term investments. George Soros is a talented “speculator” who is able to find or create the necessary asymmetry in order to make money on it.

Is there any convergence between the aforementioned types of entrepreneurs? Victor Orlovski is certain that there is, because many “operators” ultimately become “investors”. To a lesser extent, the reverse scenario can be observed as well. But in reality, there are no perfect entrepreneurs. Managers often combine all three characteristics in different proportions, and one may prevail over the others.