Entrepreneurship

TiasNimbas Business School Int. MSc. in Business Administration Module Entrepreneurship Joris van Kreij 200952109 Individual assignment 6 June 2011 Prof. Shahid Rasul 2420 words

Table of Contents

1 3 1.1 Background 3 1.2 Journey 3 1.3 Grabbing the opportunity 4 1.4 Factors for success 5 1.5 Legacy 6

2 Own Entrepreneurial Capabilities 7 2.1 General Enterprise Test 7 2.2 Applegate Entrepreneurial Mindset 8 2.3 Other tests and personal feedback 8 2.4 Analysis 9

3 Conclusion 10

Appendixes 11

References 13

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1 Gardiner Greene Hub bard

Gardiner Greene Hubbard (August 25, 1822 – December 11, 1897) was a lawyer , financier, and philanthropist from the . Among other remarkable feats he was founder of the Bell Company and the first president of the Society . This report will mainly focus on Hubbard’s contribution to the telephone services in t he United States.

1.1 Background

Gardiner Greene Hubbard was born in , in 1822. His father Samuel Hubbard was a Massachusetts Supreme Court justice. Hubbard was also a grandson of Boston merchant Gardiner Greene. He was further a descendant of , an early English settler and soldier in the New World who founded the first English settlement in what later became the State of . Hubbard attended the in Andover, graduated from Dartmou th in 1841 and studied law at Harvard.

1.2 Journey

Gardiner Greene Hubbard has been active in many different fields. The main events of his life have been listed below.

• After his study Hubbard joined a Boston law firm where his practice included some patent work. He relocated to Washington, D.C. in 1873 . Gardiner Hubbard helped establish a city water works in Cambridge, was a founder of the Cambridge Gas Co. helped Gordon McKay secure patent covera ge for his shoemaking machinery, and organized a Cambridge to Boston trolley system. • Hubbard married and had three daughters. One of his daughters, became deaf at the age of five from scarlet fever. She later became a student of , who taught de af children, and they eventually married in 1877. • Hubbard p layed a significant role in the founding of Clar ke School for the Deaf, the first oral school for the deaf in the United States, located in Northampton, Massachusetts. He was President of this scho ol for ten years. Hubbard was further a trustee of the Clarke Institution for Deaf Mutes.

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• Hubbard argued for the nationalization of the telegraph system (then a of the Company) under the U.S. Postal Service. During the late 1860s, Gardiner Hubbard had lobbied Congress to pass the U.S. Postal Telegraph Bill that was known as the Hubbard Bill. The bill would have chartered the U.S. that would be connected to the U.S. Post Office. The Hubbard Bill did not pass. • To benefit from the Hubbard Bill, Hubbard needed patents which dominated essential aspects of telegraph technology such as sending multiple messages simultaneously on a single telegraph wire. This was called the ‘harmonic telegraph’ or ‘acoustic ’. To acquire such patents, Hubbard and his partner Thomas Sanders (whose son was also deaf) financed Alexander Graham Bell's experiments and the development of an acoustic, which unexpectedly led to his invention of the telephone. • Hubbard organized the Bell on July 9, 1877, with himself as president, Thomas Sanders as Treasurer and Alexander Graham Bell as chief electrician. This company subsequently evolved in to the National and then the American Bell Telephone Company, merging with smaller telephone companies during its growth. The American Bell Telephone Company would, at the very end of 1899, evolve into AT&T and had become the largest corporation in America. • In 1876 Hubbard was appointed by President Grant to determine the proper rates for Railway Mail. • Hubbard became a principal investor in the Edison Speaking Company. • In 1888 Hubbard founded the National Geographic Society and was first president for many years.

1.3 Grabbing the opportunities

With his background in law, Gardiner Green Hubbard helped business start-ups in the early part of his life. This gave him a lot of experience and insight in the challenges that starting companies face. The unfortunate fate of his daughter caused extensive involvement of Hubbard in deaf education. This led to the founding of the first oral school for the deaf in the United States. Hubbard had a suspicion of large-scale organisations, especially those controlled by New York financiers. According to Hubbard, Western Union, led by William Orton, was not serving the public interest: the company was pursuing only a business market, it was not using the most up-to-date technology and it was not reducing its prices. For Hubbard, the solution lay in rethinking the market for the telegraph. To be able to exploit social and governmental messaging Hubbard proposed to locate telegraph offices not just in railway stations (Western Union’s common practice) but in post offices which were much more convenient to the average citizen. Hubbard was convinced that there was an enormous potential market for social and governmental messages and that this demand could be used to lower prices and expand telegraph service to every town and village in America. This would better serve the needs of the American public and advance democracy. To create this alternative telegraph system, Hubbard sought government support. This he had

Entrepreneurship 4 done before for other causes as well (i.e. he convinced the Massachusetts legislature to support a school for the deaf). Although the earlier mentioned ‘Hubbard Bill’ did not pass, Hubbard found a new way to challenge Western Union in the creative ideas of Alexander Graham Bell. Bell was a young Scotsman who had immigrated with his parents to North America to help promote his father’s system of . In his search to find the best possible teaching techniques for his daughter and other deaf children, Hubbard invited Bell in 1872 to Massachusetts to teach visible speech. Bell did not wish to devote his life to advancing his father’s system and therefore turned into invention. This led him to develop his own multiple message telegraph. Drawing on the extensive knowledge of acoustics he had acquired in teaching visible speech, Bell investigated a harmonic telegraph. In 1874, after he had begun courting Hubbard’s daughter Mabel, Bell told Hubbard of his telegraph experiments. Hubbard took an immediate interest in Bell’s efforts and encouraged him to perfect his harmonic scheme as quickly as possible. Hubbard knew that he could use the invention of a better multiple telegraph which could change the telegraph industry. In February 1876, Bell filed a patent for his harmonic telegraph scheme which included claims for a speaking telegraph. Six weeks later, Bell succeeded in transmitting the voice and thus inventing the telephone. Hubbard saw the big opportunities that this invention brought along. He believed that it would be used for domestic and social purposes. The Bell Company, founded by Hubbard in July 1877 held the Bell patents and issued licenses to individuals who wanted to set up local telephone exchanges. Eventually the company installed 56.000 in 55 cities. Mergers with smaller companies followed and the company would evolve into AT&T at the end of 1899 to become the largest corporation in America.

1.4 Factors for success

There are several causes from which Hubbard’s success originated. These are the most important factors.

Chance It is difficult to call it luck that Hubbard’s daughter became deaf; however it is the indirect cause that Alexander Graham Bell became his son-in-law. The cooperation with Bell has been the core of Hubbard’s success in reforming the communication industry in the United States.

Vision Hubbard saw the opportunities of the telephone and knew how to commercialise it.

Not afraid to ‘break the rules’ It is surprising that Hubbard asked the Congress to provide the capital for a private corporation which would build the new network and in turn enter into a contract with the Post Office. Somehow he was perfectly comfortable combining a crusade for the public good with pursuing private gain.

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Persistence Hubbard showed perseverance throughout his life. For example: despite the fact that the Hubbard Bill did not pass, Hubbard continued his battle against the monopoly position of Western Union.

Social network Hubbard’s contacts within governmental bodies enabled him to get (financial) support for his projects.

Fighting for the public interest Many of Hubbard’s activities were for the public good instead of his own interest. This helped him to receive assistance in achieving his objectives. When he became president of the National Geographic Society Hubbard stated: “By my election you notify the public that the membership of our Society will not be confined to professional geographers, but will include that large number who, like myself, desire to promote special researches by others, and to diffuse the knowledge so gained, among men, so that we may all know more of the world upon we live.”

1.5 Legacy

Gardiner Hubbard’s life is detailed in the book ‘One Thousand Years of Hubbard History’, by Edward Warren Day. His legacy includes which remains in the family and is the largest privately owned island in the United States. Further, in 1890, Mount Hubbard on the -Yukon border was named after him by an expedition co-sponsored by the National Geographic Society while he was president. The main school building at the Clark School for the Deaf, Hubbard Hall, is also named after him in his honor.

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2 Own entrepreneurial capabilities

To evaluate my own entrepreneurial capabilities I have performed a General Enterprise Test (GET) and used the Entrepreneurial Mindset Tool from Applegate. Further, I have done personality tests and looked at personal feedback I received from people who know me well.

2.1 General Enterprise Test

The General Enterprise Test resulted in the following outcomes.

Need for achievement Maximum 12, average 9 Score: 10

Need for autonomy/independence Maximum 6, average 4 Score: 4

Creative tendency Maximum 12, Average 8 Score: 9

Moderate/calculated risk taking Maximum 12, Average 8 Score: 10

Drive and determination Maximum 12, Average 8 Score: 9

This test shows strengths in my personal need for achievement and the ability to take moderate or calculated risks. In the other entrepreneurial traits the scores are average or slightly above average.

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2.2 Applegate Entrepreneurial Mindset Evaluation

The results from the Applegate Entrepreneurial Mindset Tool can be found in the table below (table 2.1).

Number of responses with scores of: 1 2 3 4 5 N/A D/K Average Fatal Key Flaws Strengths Commitment and Determination 1 1 4 3.5 1 4 Leadership 4 6 3.6 6 Opportunity obesession 1 2 3.7 2 Tolerance of Risk, Ambiguity, and 1 3 3 1 3.5 1 4 Uncertainty Creadtivity, Self-Reliance, and 3 3 1 3.7 4 Ability to adapt Support from ‘Significant others’ 3 3.0 0 Motivation to Excel 1 3 1 4.0 4 Table 2.1: Results of the Applegate Entrepreneurial Mindset evaluation.

Although there is not a single field in which I particularly excel, in the most fields the score is higher than average. The low score on support from ‘significant others’ requires attention.

2.3 Other tests and personal feedback

Further I have done several other personality tests and collected feedback from people around me.

Myers-Briggs Type Indicator (MBTI) ISTP: Introvert, Sensing (slightly expressed), Thinking (slightly expressed), Perceiving. Interestingly I had also performed this test roughly two years ago with the result: INFP (Introvert, iNtuitive, Feeling, Perceiving). Although the two middle dichotomies are different it is logic that they are not strongly expressed in this new test. This change could be caused by randomness in the two different tests or it could indicate a ‘shift’ in my personality. The shift from ‘Feeling’ into ‘Thinking’ does sound ‘familiar’ in that sense. Maybe future tests will give a better understanding.

Enneagram Type 7: The enthusiast / the adventurer This type is described as the busy, variety-seeking type: spontaneous, versatile, acquisitive, optimistic and scattered.

Personality Test This test was performed in 2007 for admittance to aviation academy (in Dutch, Appendix 1). It showed a high level of independent acting and focus on the future with an optimistic view. Also, it illustrated a relative low ability and desire to convince others as well as a low self confidence. Moreover it recognised my preference to look at opinions and feelings instead

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Entrepreneurs Checklist (from www.career-intelligence.com) Most answers: b (Appendix 2).

Feedback from people knowing me well As part of the personal development programme at TiasNimbas, Friends, colleagues and one of my brothers provided personal feedback on my personality and my main strengths and weaknesses (see Appendix 3)

2.4 Analysis

In light of entrepreneurial possibilities, I have collected my strengths and weaknesses from the above mentioned tests and feedback.

Strengths • Being naturally curious • Optimistic • Social • Calm • Future - minded • Works and acts independent • Creative • High need for achievement • Competitive and ambitious • Above average score on calculated risk taking • Positive attitude • Social • Has respect for others • Remains calm and professional

Weaknesses • Introvert • Limited self-confidence • Lower than average thrust in people • Ineffective networking amongst ‘higher’ management • Inefficient time management • Lack of a clear purpose in life • Could develop better coaching skills • Limited capability to convince people • Find it difficult to deal with conflict • Support from significant others

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3 Conclusion

Looking at the results from the GET and ‘Applegate’ tests, it can be concluded that there are certainly possibilities to start my own business. However there are also quite some aspects which require attention and development. Self-employment in the form of a 1-man business could be an option. However, my own preference is to find a partner who can excel in the fields that I have limitations. One of the other tests showed some discrepancy with earlier performed tests. It could be caused by a change in my personality, a change in my awareness of my personality or just the randomness of the two different tests. In any way I found it not easy to make the tests, clearly I have not yet full sight on who I really am. Further, the results could be biased by the difference between who I am and who I want to be . Several of the weaknesses that come forward from the personality tests were also included in the feedback I got from people who knew me well. Some of these I can work on via courses (i.e. time management courses) others, I will need to ‘conquer’ with help of others (or with help of ‘significant others’). Looking at the factors of success of Gardiner Greene Hubbard, it is easy to say that luck or chance is something everybody will need at some point in his/her career. However, his vision, persistence and ‘stubbornness’ has played a pivotal role in his achievements. For me, this gives me extra motivation to find my (professional) goals and look for the opportunities to catch. Further, the social network has been important in Hubbard’s success. This is something I will need to continue to work on. Lastly, I do believe that fighting for the public interest has helped Hubbard in his challenges. In my own work I will always try to look for the best option, not just for the business but also for our society or our world as a whole.

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Appendixes

1 Personality test Aviation Academy (2007)

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2 Result of the Entrepreneurs Checklist

www.career-intelligence.com/assessment/entrpreneurs_checlist.asp Mostly b: Your natural creative talent will help you keep your company from becoming stagnant. Your ability to adapt when things don't go as planned can be an invaluable asset. And, because you prefer to work independently, you will probably feel less isolated than those who need constant people contact. Things to think about: Because you're not as comfortable connecting with others, it may take more effort to develop business relationships. While values and feelings are important, don't forget to consider what's best for the bottom line. Also, you will need to develop some organizational skills until you are able to hire staff. In the end, whether to start your own business or not, should be your decision. A decision based on your goals, your abilities, your financial situation and many other factors. Our Entrepreneur Quiz is meant to be a starting point: An entertaining way to get you thinking about yourself. One of the keys to being successful is to recognize your strengths and your weaknesses. It's easier to move forward, when you know where you already are.

3 Feedback from friends, colleagues, and one of my brothers

Strengths: • Positive attitude • Social • Has respect for others • Remains calm and professional • Committed, hard worker

Weaknesses: • Too i ntrovert • Ineffective networking amongst ‘higher’ management • Inefficient time management • Lack of a clear purpose in life • Could develop better coaching skills

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References

Burns, P., [2011], “Entrepreneurship & small business, Start-up, growth & maturity”, Third edition, Palgrave Macmillan.

Carlson, B. W., [1994], “Entreprenership in the Early Development of the Telephone: How Did William Orton and Gardiner Hubbard Conceptualize this New Technology?” , Business and Economic History, Volume 23, no 2.

General Enterprise Test: www.palgrave.com/business/burnsentrepreneurship/students/get/instructions.html

MBTI Test: www.humanmetrics.com/cgi-win/JTypes2.asp

Enneagram Tests: www.Eclecticenergies.com/nederlands/enneagram/dotest.php www.123test.nl/enneagram

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