Give First; Expect Nothing in Return

January 17, 2012

In a recent article published in Forbes, titled “Today’s ‘G’ Generation: Replacing Greed With Generosity”, Scott Davis explores the anti-greed sentiment so evident in the Occupy Wall Street movement. The apparent cause for this cultural shift can be attributed to a number of high profile cases of corporate greed and world disasters in the last decade including 911, Hurricane Katrina and the earthquakes in Haiti and Japan. The article credits the concept of “Generation G”, which stands for generosity, to one of the world’s leading consumer trend firms. When times are toughest, people place a high value on caring, empathy and generosity.

The vast majority of Americans have lost faith in big companies, the senior leadership of those companies and advertisers. Each year, three quarters of the employees in large companies report violations of laws and company standards. And, that’s just private industry. The media is full of stories about the latest scandal surrounding one of our politicians.

As our members know, our philosophy at MainStreetChamber is to give first and expect nothing in return. Make no mistake this is not just some flowery slogan promoting altruistic behavior, philanthropy or the practice of selflessly serving clients, employees and society. According to research, ego is a central motive for entrepreneurs. In fact, giving first without expecting anything in return may be one of the most self-serving things an entrepreneur can do.  But, before I expand on why this approach works, allow me to provide some background on the most significant factors that contribute to entrepreneurial success.

According to research, ego is a central motive for entrepreneurs. The true or rational egoist passionately loves the work as well as the process of building an organization and making it profitable. They are motivated to do what is actually in their own interest—that is, to do everything necessary.

In a study on “Entrepreneurial Motivation” conducted by Scott Shane, Edwin A. Locke and Christopher J. Collins published by Human Resource Management Review, entrepreneurship is not a profession for which people are naturally suited. It is a process. And, along the way, the entrepreneur comes face to face with any number of tough decisions, risks, obstacles, road blocks and/or detours. It is at these moments when many entrepreneurs self-select out of the game. Notwithstanding the role that numerous external factors play, it is the entrepreneur’s motivations that drive their decisions and ultimately determine their success.

The following motivations were identified in the study as having a significant impact on an entrepreneur’s ability to effectively advance through the process of starting, building, growing and sustaining a successful business:

1. Need for achievement (the desire to improve something that exists or create something new)
2. Risk taking (willingness to take moderate risks)
3. Tolerance for ambiguity (sees situations without clear outcomes as attractive rather than threatening)
4. Locus of control (belief that one’s actions or personal characteristics affect outcomes)
5. Self-efficacy (belief in one’s ability to achieve a specific task – task specific competence)
6. Goal setting (establishing objectives)
7. Independence (taking responsibility for one’s own judgment over that of others)
8. Drive (ambition, goals, energy and stamina, and persistence)
9. Egoistic passion (selfish love of the work)

So, what does giving first, without expecting anything in return have to do with entrepreneurial motivations? Let’s look at each of them individually.

1. Need for achievement – true entrepreneurs understand that in order to meet their goals they must demonstrate the value they can provide. By giving first, without expecting anything in return, they demonstrate their value.
2. Risk taking – true entrepreneurs do not consider it risky to offer a certain amount of free advice, assistance, samples or trials of their products and services. Most marketers understand the power of giving something away because it sets in motion the law of reciprocity; which makes recipients feel obligated to return the favor.
3. Tolerance for ambiguity – true entrepreneurs are at peace with the uncertainty that comes from giving with no assurance of a return. They are confident that even if they don’t get an immediate return on their investment, they have established themselves as a valuable resource.
4. Locus of control – true entrepreneurs believe the action of giving first without expecting anything in return is a worthwhile investment in their personal and professional brand.
5. Self-efficacy – true entrepreneurs are so confident in their ability to deliver high quality products and/or services that recipients will want to keep using it or will give them referrals.
6. Goal setting – true entrepreneurs have specific and measurable goals in mind when they give first. Their goals include targeting certain companies and people to whom they are willing to give first.
7. Independenc – true entrepreneurs have enough confidence in their own judgment to give first without expecting anything in return because they know why they are doing it.
8. Drive – true entrepreneurs have enough drive, stamina, tenacity and persistence to keep on giving first without expecting anything in return until they have achieved their desired results.
9. Egoistic Passion – true entrepreneurs are more than willing to give first without expecting anything in return because they love the work they do.

Networking at MainStreetChamber events gives you the perfect opportunity to practice giving first without expecting anything in return. Even though the primary purpose of networking is to meet the kind of contacts who can help you grow your business, it is critical that you focus more on what you can do for the people you meet than what they can do for you.

The best way to do this is to ask good questions. You must resist the urge to jump into your elevator pitch. If you demonstrate a genuine interest in the other person, they will be more inclined to open up and share more detailed information about themselves and their company. The more you learn about them the better job you will do in determining if you can help them in some way. The help you end up offering could be in the form of information, a recommendation or a referral to someone else who may be able to help them. This is a classic example of giving without expecting anything in return.

If the person you’ve been talking with happens to mention a challenge that your products and/or services could help them overcome, it would be foolish not to mention that your company could help them. However, this is another great opportunity for you to continue to build credibility and trust with this person by giving first and expecting nothing in return. Instead of launching into your sales pitch, why not suggest that you get together at another time to discuss their needs in more depth because although your products and or services help companies with issues such as those they described you want to make sure it is the right fit.

According to Scott Davis, Forbes contributor and Chief Growth Officer at Prophet, there are three core principles to keep in mind when giving:

• Be authentic (i.e. be true to your brand and your core business)
• Be relevant (i.e. make sure that what you do and say resonates with consumers and employees)
• Be effective (i.e. make sure you make a measureable impact)

Many networking experts suggest you write notes on the back of the business cards you collect. I recommend that you bring along a notebook so you can take more detailed notes about the people you meet and the kinds of things you might be able to help them with. Then, whatever you do, make sure you follow up. Imagine their surprise when you contact them with the names of people, companies and resources that could help them. You may not ever do any business with them, but they will not forget you. And, that is worth a lot. Chances are they will recommend others to you.

Why not practice giving first at our next networking event? Each Monday, we send an email to members with a list of our upcoming events. They are also listed on our Upcoming Events page.

Filed under: Entrepreneurship,Leadership,Networking

Tags: Corporate Generosity, entrepreneurship, Networking, small business