I have a few questions on my mind as I proceed with my writing. Do you aspire to be a chief executive officer (CEO) or an entrepreneur? Can a CEO transition into entrepreneurship? Can an entrepreneur take on the role of a CEO? What sets a CEO apart from an entrepreneur?
As I delve into research on CEOs, an interesting fact emerged: In 1955, only one Fortune 200 company had a CEO title, while the others held titles such as President or Chairman. Companies like General Motors, Exxon Mobile, Esmark, Amoco, CBS, Texaco, and Shell Oil were examples listed in 1955, and by 1975, nearly all of them were led by CEOs.
Historically, the inception of the Chief Executive Officer, as it is recognised in the present era, started to take form in the early 20th century. Even though there were leaders and executives in different organisations before this period, the contemporary role of the CEO is frequently associated with individuals such as Alfred P. Sloan.
It was found that, Sloan served as the CEO of General Motors from the 1920s to the 1950s and is widely acknowledged for his significant contributions to modern management practices. It's important to note that, during this era, the title "CEO" might not have been commonly employed.
The Chief Executive Officer is defined as the highest-ranking corporate officer responsible for overall management and administration. Considering this definition, how do we distinguish between a CEO and an entrepreneur?
Long (1983) emphasises that modern definitions of entrepreneurship should include innovativeness, risk-taking propensity, and proactiveness. With this in mind, how do CEOs and entrepreneurs differ?
In the book "Why We Want You to Become Rich," the distinction between CEO and entrepreneur is highlighted. An entrepreneur is likened to someone building a great race car, while a CEO is compared to the driver of that race car. The analogy suggests that a great CEO can't win races with a poorly built race car.
Considering figures like Bill Gates and Michael Dell, we question whether they were great entrepreneurs or CEOs. Michael Dell's book, "Play Nice But Win," explores his journey from founder to leader, emphasising that an entrepreneur is born.
Reflecting on Dhirajlal Hirachand Ambani, the founder of Reliance Industries, how would you describe him? When comparing CEOs and entrepreneurs, my opinion, backed by some research, leans towards the idea that an entrepreneur may become a great CEO, but the reverse isn't necessarily true.
CEOs excel at running companies efficiently, like skilled race car drivers. However, not all of them possess the entrepreneurial ability to build or innovate, like entrepreneurs. While many entrepreneurs serve as CEOs in their founded companies, it's rare to find CEOs transitioning to entrepreneurship after retirement.
Mohammed Anwar Al Balushi
Academic Lecturer and Advisor,
Oman College of Management and Technology
93692422
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