Great entrepreneurs aren’t born. They are made

A key question for investors has been on my mind for the past decade: Are great entrepreneurs born or made?

Over time, I’ve developed a thesis to address this query, validating my ideas through various cases within the East Ventures ecosystem. The answer boils down to three key elements, which I call the three Cs: capacity, character, and capability.

Image credit: Timmy Loen

Capacity is innate. Like computers, some have faster processors and larger memories while others don’t.

Having capacity is an advantage in entrepreneurship. Unfortunately, an entrepreneur’s capacity – unlike a computer’s – can’t be upgraded.

Character, on the other hand, is shaped over time. Factors like geography, upbringing, family background, social culture, and religion play significant roles in forming an individual’s mental model, principles, and social compass that contribute to their character.

See also: The power of three: the art of making hard decisions

I believe changing a person’s character can be quite challenging once they reach adulthood since its foundation is laid out in their early years.

As for capability, it is acquired. This can happen through formal education, like schooling, or through informal learning, such as observing and getting hands-on experience.

In essence, the three Cs represent three distinct types of attributes: innate (capacity), molded (character), and acquired (capability).

This framework helps explain many of the anomalies I’ve noticed in entrepreneurs.

The 3 Cs in practice

To really grasp how the three Cs work when it comes to evaluating an entrepreneur, it’s helpful to ask a few questions. Let’s dive in.

1. Can someone without formal education become a successful entrepreneur?

Yes, it’s possible, assuming that they have great capacity and strong character. Such an individual often acquires capability informally, through hands-on experience or self-directed learning.

The role of privilege

Final observation