The MAIR model: a non-linear approach to business creation

As an entrepreneur and someone whose business involves working with entrepreneurs, I am always interested in different business creation models, and an article I recently read reminded me of the MAIR model. I first came across this when I was doing a Masters in Entrepreneurship at the University of Stirling in 1995, and have used it extensively ever since to train both advisors and entrepreneurs, both in my work with support organizations and in my consultancy. with Eriskay Associates. Since then, it seems to have come in and out of fashion a bit, but I like it for its logical simplicity and the fact that it’s non-linear (i.e. step one, step two, step 3…)

The basic idea is that you explore four ‘interactive variables’: Motivation, Skills, Ideas and Resources. Clearly, each has a critical role to play in their own right:

Motivation: I guess that’s what separates the thinkers and dreamers from the actors and doers… The willingness to really go out and work hard, often under conditions of little short-term reward and a lot of uncertainty, seems to be one of the distinguishing characteristics of successful entrepreneurs. .

Skills: We could start a whole separate thread on this: what are the key skills that make an entrepreneur successful? Certainly a combination of hard and soft skills.

Ideas: Arguably they must be clearly rooted in a market to be valid, although there are some businesses that seem to be product rather than market oriented… fashion, any Apple product, Rubik’s cube… .

Resources: Entrepreneurs are a bit paralyzed until they get resources behind them. I guess we automatically think of cash here, but skills, knowledge and contacts can make a big difference.

… but you also need to think about how these factors interact: a good idea has limited value, without the motivation and resources to turn it into a business and this is where the final components of the MAIR model come into play: Planning and Organizing! Arguably, this is the real job of the entrepreneur. Gather all the factors to create something that did not exist before and that can change the world!

As far as I know, the academic origins of this model are in Gibb and Ritchie (1982), but I have seen references dating back to the 1970s, where it was apparently used at the Durham University Business School. It’s been featured in several articles since then, but I’m surprised it hasn’t gained more traction.

By comparison, think of the SWOT analysis: it provides a simple mnemonic and recognized structure for analyzing a situation. And, despite its many shortcomings (the subject of a future article!), it has gained widespread use. So why hasn’t the MAIR model achieved the same? By the way, one of the other advantages is its adaptability. In a very interesting article by Pat Richardson et al (The Challenges of Growing Small Businesses: Insights from Women Entrepreneurs in Africa, 2004), the authors integrate MAIR with the sustainable livelihoods model to create a growth framework for women entrepreneurs in Africa.

An important point of this model is that it provides the ingredients, but not the recipe for success. That may sound like a limitation, but my opinion is that there is no universal recipe for business success – that is the job of the individual entrepreneur!

I hope you find this model interesting or useful. I would love to hear other points of view and perspectives on this. I know some people think that entrepreneurs are a bit like anarchists and not willing to follow the rules… I guess I can see that too!

Best wishes,

taylor mark
Eriskay Associates.