Entrepreneurs:

Made or Born?
Studies of entrepreneurs indicate that individuals whose parents or
grandparents are self-employed are more likely to start their own
businesses than individuals born into other families. This leads
some people to the conclusion that entrepreneurs are born, not
made. However, another possible conclusion is simply that these
Think About It entrepreneurs were influenced by their family environment. Did they
get caught up in the excitement of business-related talk around the
Do you think having par- dinner table? Did they share the satisfaction of success with a parent
ents who are entrepre-
or other family member? Did they work for the family business when
neurs would contribute to
the likelihood of becoming they were young?
one yourself? Whether entrepreneurs are born or made is likely still to be
debated many years from now. Even though heredity is important in
establishing basic
entrepreneurial
traits, the influ-
ences of environ-
ment cannot be
dismissed. These
two factors often
work together in
shaping a future
entrepreneur.
Although some
entrepreneurs come
from entrepreneu-
rial families, many
others do not. What
all entrepreneurs do
share, however, is a
vision for the future
and the willingness
to take the risk of
starting a venture.

Chapter 1 ◆ What Is Entrepreneurship? 19

 Venture Profile
YOU’RE HACKED—NOW HIRE ME
Julie Alnwick, Canadian Business
n March 1999, Curtis Penner, Steve Skoronski,

I Wil Hutchins, and Corey Auger began to

check Calgary-based International Proper-
ties Group’s computer system—from the out-
side. Realizing that the system was weak, they
contacted company security and mocked the
network’s “hackability.” Unimpressed, Interna-
tional Properties Group Ltd. (IPG) staff chal-
lenged them to hack into the network. In less
than a week, the hackers produced IPG finan-
cials, databases, and scores of personal e-
mails. IPG hired them on the spot.
It was the first contract for efinity Inc. The
company’s founders had just dropped out of
the University of Calgary. They pooled their
tuition funds to rent an office for a startup attacks, in which many infected computers
whose mission is ethical hacking—breaking automatically ask for Web pages from a tar-
into corporate information systems to find geted site so fast that the system freezes. An
weaknesses. After a year and a half of taunt- audit includes a first check, risk assessment,
ing, being challenged, and hacking into other and another check after fixes are made.
firms, efinity grew into a 10-person firm with Skoronski swears efinity has hacked ethi-
clients like CIBC World Markets, Westcorp cally since day one—if not earlier. At univer-
Inc., and CDL Systems Ltd. “That approach sity, Skoronski hacked into a server, but didn’t
has worked again and again for us because ferret out the juicy data; instead, he told the
there’s not a lot to lose,” says Penner, efinity’s network administrator and helped fix the secu-
president. Taunts lead to contracts for secu- rity hole. Now, that’s an ethical hacker.
rity audits (including hacks) for which efinity
charges up to $25 000. Profits last year totalled Exploring
$125 000, and Penner anticipates revenue of
$750 000 this year. 1. What niche does efinity respond to?
2. How did the founders get their first
To better simulate a real breach of net- client? Why did their strategy work?
work security, efinity doesn’t tell its clients 3. Which characteristics of efinity make it
exactly when it will attack. “We want to come an entrepreneurial venture?
across as a skilled attacker rather than some- 4. Do you think that the venture has a
one who’s just doing it from their home,” says chance for a successful future? Why or
Skoronski. Audits test a company’s defences, why not?
5. What impact has this venture had on
its reaction to apparent virus infection, and its the business community?
susceptibility to denial-of-service (DOS)

20 Unit 1 ◆ Entrepreneurs: Made or Born?