A Resident Entrepreneur (RE) is a person who serves as a consultant typically in a business environment. Usually focused on research and exploration, REs provide new perspectives on a contemporary or future idea or tackle challenges that a company may currently face or anticipates encountering. A Resident Entrepreneur is an expert in the subject matter and is often recruited to work in a company, community, or country requiring the necessary abilities or expertise to succeed in a specific business sector or market segment.
This article discusses a method to introduce innovation in a country, company, or community by outlining the types of RE programs and the advantages of hiring a Resident Entrepreneur.
Categories of Resident Entrepreneur Programs
Below are the categories of the resident entrepreneur program
1. Within a country
Every country and its culture are distinct. Through the help of a resident entrepreneur program, teaching and sharing experiences, it reminds people that they are capable, empowered, and should seize an opportunity if they want to make a difference; and ultimately that they can become who they want to be within their own country and that resources are available to complement their experience.
2. Within a company
a) Internal recruitment
An internal Resident Entrepreneur is a person who challenges the current way of thinking and impacts the overall approach and development of a business, product, culture, etc. They encourage the company to think like an entrepreneur; making wise decisions with sometimes incomplete information; testing assumptions and learning quickly.
Major companies like Google, Dell, and Target have RE programs incorporated with some individuals or dedicated teams whose sole job is to research and consider ways to address new or current problems in innovative ways.
b) External recruitment:
By hiring an external Resident Entrepreneur for a period, a company or organization can benefit from a completely new, and unbiased viewpoint in business strategy and execution. Employees can be biased in their thinking and decision-making and afraid to disagree with others if they have differing opinions.
3. Within a community
Often as volunteers, employees of a company will devote their time, knowledge, and skills to a community as a Resident Entrepreneur. They will educate others about their expertise or collaborate with a group or community program to help achieve their business or organizational objectives.
Alternatively, a community or city may invest in funding a community-centric RE program that focuses on brainstorming and solving issues in the community, such as becoming more technology-centric, supporting small businesses, and attracting large businesses.
Advantages of Employing a Resident Entrepreneur
1. Managing portfolio business
Entrepreneurs-in-residence can oversee spinoff brands and equity deals, freeing up the CEO while the business gains new market shares and audiences.
REs also help founders avoid the pitfalls inherent in becoming “parallel entrepreneurs,” or starting companies simultaneously. With experience, one learns that managing two startups essentially sets one up to fail because a CEO can’t dedicate himself or herself to two all-consuming projects. However, REs can shoulder some responsibilities so that both ventures thrive.
2. Developing key partnership strategies
CEOs should involve REs in meetings related to venture capital, influencers, and agencies. This way, the resident entrepreneurs can make connections about portfolio businesses and hit the ground running with spinoff brands.
3. Streamlining detailed operations
REs must be given ample freedom to delve into the nitty-gritty of meeting clients’ needs. Google’s RE Jewel Burks, for instance, aids small businesses by optimizing their web efforts and providing guidance to their teams. REs must dig in and work at this granular level, delivering the specific services customers demand.
REs can also recruit team members and bring them up to speed on projects as needed. This will allow companies to capitalize on the strengths and expertise of their staff to address specific issues without everyone needing to be fully onboard from the start.
Not only do small businesses benefit from having dedicated entrepreneurs develop unique initiatives, but they can retain their best people long-term.
We trust this article will be informative for you to grasp the concept of resident entrepreneur and its categories, and also understand its benefits. For more inquiries, feel free to ask anything.
