Everything you need to know about the qualities and traits of an entrepreneur. In the 20th century the theorist Arthur H. Cole defined an entrepreneur as an ‘organization builder’. It can be viewed as a quality or a trait of an entrepreneur.
Entrepreneurs have many of the same character traits as leaders, similar to the great man theories of leadership.
Entrepreneurs are often contrasted with managers and administrators who are said to be more methodical and less prone to risk-taking. Still, a vast number of certain traits seem to be associated with entrepreneurs and are commonly seen in most of them.
The successful Entrepreneurs are those who are able to accomplish the objectives they have set for themselves i.e., they are able to carry out the projects of new ventures and put them on the track of further operation.
Entrepreneurs possess several qualities, which according to Napoleon are 90 attributes. Some of those have been given below. If you identify some of, or all of these traits, in your SWOT analysis, consider yourself to be an entrepreneur in making.
Some of the qualities and traits of an entrepreneur are:-
1. Leadership 2. Negotiating Skills 3. Honesty 4. Knowledge of Business 5. Far Sightedness 6. Courage 7. Experience 8. Organizational Ability 9. Innovativeness 10. Risk Taker;
11. Decision-Making Ability 12. Delegation of Responsibility and Authority 13. Abounding Curiosity 14. Bursting with Creativity 15. Clarity of Vision 16. Ability to Communicate 17. Leadership Acumen 18. Tenacious Beyond Belief 19. Independent & Achiever;
20. Optimistic 21. Keen Learners 22. Urge to Build 23. Initiative Taker 24. Opportunity Grabber 25. Persistent 26. Information Seeker 27. Believer in Quality and Efficiency 28. Goal Setter 29. Hard Working;
30. Systematic Planner 31. Persuasive and Networker 32. Independent and Self-Confident 33. Well Versed in Managerial Skill and Strong Team Builder 34. Aggressive Catalyst 35. Dynamic and Visionary 36. Go-Getter Spirit 37. Never Say Die Spirit 38. High IQ, EQ and SQ Levels and Few Others.
Qualities of an Entrepreneur
Qualities of an Entrepreneur – Top 12 Qualities
Modern business is a very complicated affair. In order to organize and run it successfully, the entrepreneur must possess qualities of a very high order.
The various qualities of an entrepreneur are mentioned as under:
An entrepreneur must have the qualities of leadership. He should have the capacity to influence people and win their confidence. He must understand human nature, so that he can make each person to do his best. He must be thoughtful and skilled. Thus, an entrepreneur is called as “captain of the ship”.
2. Negotiating Skills:
An entrepreneur must possess good negotiating skills, because running a business involves holding negotiations on various issues and various parties like trade union, government officials, etc.
An entrepreneur should be honest. Modern business depends on high level of cash-credit. If an entrepreneur is not honest, people will lose confidence in him.
4. Knowledge of Business:
He must understand his business activities. In other words, he must be expert in judging the quality of machines and raw materials. He must also have the art of marketing. However, he should be a master of his trade.
5. Far Sightedness:
He must be farsighted to foresee the changes in the market so that the production could be adjusted accordingly.
He must be courageous to face the challenges and difficulties of business. Therefore, he will have to take bold decisions in a cautious manner. A single mistake may cause disaster.
He must be experienced and skilled. Experience makes even a man of average intelligence an efficient entrepreneur.
8. Organizational Ability:
An entrepreneur must have the quality of a good organizer to organize his labourers. He must be sympathetic, flexible and helpful to remove genuine problems of his labour force.
He must be a good innovator to become a successful entrepreneur. In fact, the amount of profit that he earns depends to a large extent on his ability to introduce innovations.
10. Risk Taker:
An entrepreneur must be a risk taker. This is not at all necessary that whatever venture he starts proves to be a success. The customer may not accept the product or service which he offers. In real world thousands of new businesses start and close each day.
This may result in the losses. So he must be ready to bear the risks associated with the business like financial risk, social risk and morale risk, etc.
11. Decision-Making Ability:
Proper analysis of risks and prudent decision-making is another essential quality of a good entrepreneur.
12. Delegation of Responsibility and Authority:
A successful entrepreneur is capable of delegating correct responsibilities to correct people and also to authorize other people to act on his behalf.
Qualities of a Successful Entrepreneur – 15 Qualities of a Successful Entrepreneur
The term ‘competence’ implies a person’s underlying characteristics leading to his/her superior performance. It is a good combination of various qualities and traits required to perform the job effectively. Entrepreneurs who possess the necessary competencies succeed while those deficient in these competencies fail in their ventures.
Some people believe that entrepreneurs are born not made. In other words, business family background is essential to success for entrepreneurs. Other people believe that entrepreneurs are made not born. According to some people, persons with proper knowledge and skills acquired through education and experience can become successful entrepreneurs.
In order to resolve the controversy on what makes successful entrepreneurs, the Entrepreneurship Development Institute of India (EDI), Ahmedabad, conducted a research study of entrepreneurs.
This study has identified the following entrepreneurial competencies:
Initiation – Given the demand of the situation, the entrepreneur takes initiative to start an industry.
Watching for Opportunities – He, like a watch dog, looks for favourable business opportunity and takes necessary action accordingly.
Persistence – Follows the saying ‘try and try again, you will succeed at last’. He is always tenacious to make extreme efforts to get rid of the obstacles coming in the way of reaching the ultimate goal.
Information Seeker – He is ready to learn from the experience of others and enriches his business information to help him reach the goal.
Quality Conscious – Always puts effort to excel better than the existing standards of performance.
Commitment to Work – Accords the utmost priority to accomplish the work.
Efficiency Lover – Tries to do things at a faster pace incurring the minimum cost.
Proper Planning – Frames realistic business plans and follows them rigorously to achieve the objectives.
Self Confidence – A strong believer in his strengths and weaknesses.
Assertiveness – Able to assert his issues, whatsoever these might be, in the interest of his enterprise.
Persuasion – Succeeds in persuading others to do what he wants.
Efficient Monitoring – Personally supervises the work to ensure that the work is accomplished according to the standards set forth.
Concern for Employees – Keeps concern and takes proper action to improve the welfare of the employees working in his enterprise.
Having gone through research studies, an integrated view of the qualities of a successful entrepreneur can be listed as follows:
1. Capacity and willingness to assume risk.
2. Willingness to work hard and be always tenacious, energetic, versatile.
3. Vision and foresightedness—good planner.
4. Creative and imaginative thinking—originator.
5. High need achievement—high degree of ambition.
6. Innovativeness and willingness to adapt to change, and accept uncertainty.
7. Ability to Marshall Resources.
8. Total commitment, determination and perseverance.
10. Prompt and sound decision-making.
11. Ability of organisation and administration.
12. Enterprising and energetic.
13. Will to establish and prove superior to fellow entrepreneurs.
14. Good health.
15. Internal locus of control.
Qualities of a Successful Entrepreneur
First, what exactly is an entrepreneur?
Well, Wikipedia defines it like this –
“An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.”
Entrepreneurs are curious. Always wondering about things. Taking stuff apart to see how it works. Asking people questions about their likes and dislikes. Questioning why we keep doing things the same old way when maybe there is a better way. And on and on.
Curiosity means asking questions. Asking questions inspires learning. Learning births total domain knowledge and customer understanding. Total domain knowledge and customer understanding leads to one successful entrepreneur.
They’re like two peas in a pod. Curiosity + Creativity.
Not only do you have to be curious as an entrepreneur, you must also be creative.
New products. New solutions. New ways. Willing to think of all possibilities. Almost like a child.
Just resolve to be like a child.
As you become more curious by asking questions and learning, it actually opens your mind to creativity.
So have no fear if you suffer a little in the creativity department — just start being more curious.
You simply need vision as an entrepreneur. And more importantly? Clarity around that vision.
Crucial to have a crystal clear vision of who you are; what you want to do; and where you want to go.
Think of it as a beacon of light. Guiding you on your journey. And without it?
You can have the brightest idea on the planet. The next great invention to rival Edison. An idea so powerful it blows anything Steve Jobs ever came up with away. But if you can’t communicate it? Might as well pack your bags and go home.
The ability to communicate effectively is huge for all of us. We must be clear; concise; easy to understand. Both in writing and verbally.
Why is this so important? Well, because communication affects influence. Communication affects relationships. Communication affects results.
The really cool thing about communication is you can learn how to do it better. It’s a necessary trait, but one you can master with practice.
Are we really able to do everything ourselves? Even with no employees, you definitely have a team of others working on your behalf.
Vendors, partners, mentors, contractors, and more.
You must be able to lead them. Now again the great thing about the .leadership trait is you can learn to do better. If you stink as a leader, don’t fret. You can learn how to be great. You can learn how to lead with fire and passion.
Maybe you feel excited when you hear it.
Entrepreneurs take risks. They take action. Each one may have a slightly different risk meter, but when the time comes; they step out of their comfort zone and risk through taking action.
Your start-up company is not going to build itself while you sit there on the couch eating bon-bons.
True entrepreneurs never, never, never quit. Never.
Tenacity is the basic trait you must have as an entrepreneur. “The number one trait you find in all successful entrepreneurs is tenacity. Just the sheer will to keep going, even when things look impossible.”
Qualities of a Successful Entrepreneur – Top 20 Qualities of an Entrepreneur
In the 20th century the theorist Arthur H. Cole defined an entrepreneur as an ‘organization builder’. It can be viewed as a quality or a trait of an entrepreneur. Entrepreneurs have many of the same character traits as leaders, similar to the great man theories of leadership. Entrepreneurs are often contrasted with managers and administrators who are said to be more methodical and less prone to risk-taking. Still, a vast number of certain traits seem to be associated with entrepreneurs and are commonly seen in most of them.
The successful Entrepreneurs are those who are able to accomplish the objectives they have set for themselves i.e., they are able to carry out the projects of new ventures and put them on the track of further operation. Entrepreneurs possess several qualities, which according to Napoleon are 90 attributes. Some of those have been given below. If you identify some of, or all of these traits, in your SWOT analysis, consider yourself to be an entrepreneur in making.
However, some characteristics even include negative traits such as – they are cunning, opportunistic, creative, and unsentimental:
(i) Independent & Achiever:
They are rough, tough & pragmatic people who are driven by needs of independence and achievement
They are extreme optimists in their decision-making processes.
(iii) Keen Learners:
They have the ability to prioritize ideas over data, to be nomadic and to learn endlessly.
(iv) Urge to Build:
They are primarily motivated by an overwhelming need for achievement and strong urge to build a business empire.
(v) Initiative Taker:
An entrepreneur takes actions that go beyond job requirements or the demand of the situation.
(vi) Opportunity Grabber:
An entrepreneur is quick to see and seize opportunities.
An entrepreneur is not discouraged by difficulties and once the goal is set, he/she is committed to the goal and will become completely absorbed in it.
(viii) Information Seeker:
An entrepreneur undertakes personal research on how to satisfy customers and solve problems. He/she always wants to learn things which will help the business to grow.
(ix) Believer in Quality and Efficiency:
An entrepreneur is always competing with others to do things better, faster, and at less cost he/ she strives to achieve excellence.
(x) Risk Taker:
They place themselves in situations involving moderate risk so they are moderate risk takers.
(xi) Goal Setter:
An entrepreneur sets meaningful and challenging and realistic goals for him/herself.
(xii) Hard Working:
An entrepreneur will work long hours, just to be able to keep his/her commitment to his/her client.
(xiii) Systematic Planner:
Since and entrepreneur knows what to expect at anytime he/she is able to change plans and strategies to achieve what he/she aims at.
(xiv) Persuasive and Networker:
An entrepreneur acts to develop and maintain business contacts by establishing good working relationship. Uses deliberate strategies to influence others.
(xv) Independent and Self-Confident:
Most entrepreneurs start business because they like to be their own boss. They are responsible for their own decisions.
(xvi) Well Versed in Managerial Skill and Strong Team Builder:
These are often perceived as essential leadership attributes for successful entrepreneurs
(xvii) Aggressive Catalyst:
The entrepreneur is the aggressive catalyst in bringing change in the world of business.
A business catalyst is an entrepreneur or company that initiates a fundamental change in business or technology.
(xviii) Dynamic and Visionary:
Dynamism and capacity to foresee in future are the necessary attributes of an entrepreneur.
(xix) Go-Getter Spirit:
The spirit to go and achieve despite hurdles is a virtue possessed by all entrepreneurs otherwise they will never be able to build that big.
(xx) Never Say Die Spirit:
Any setbacks do not discourage the entrepreneurs from their path.
(xxi) High IQ, EQ and SQ Levels:
To be successful and to deal with all kinds of situations, the entrepreneur needs to have high intelligence quotient, high emotional quotient and equally high spiritual quotient. In short an Entrepreneur/Promoter can be compared with a mother and also a midwife as he goes through the pains of creating the idea and finally delivering and executing it, where as an Intrapreneur, almost does the same thing, with an exception that he carries out the innovation within an existing organization.
Qualities of an Entrepreneur
Behavioural orientation is defined as an individual’s predisposition toward work, motivation to work, work satisfaction, and ways of dealing with people
Entrepreneurs come from different geographic locations, upbringings, income brackets and social classes, as well as education levels.
While there isn’t a foolproof map to entrepreneurial greatness, one thing is consistent that they possess all or some of the under mentioned traits:
(i) Full of Determination & Dedication:
When you set out to become an entrepreneur it will require you to set very clear goals along the way. You have to be determined from the beginning to be successful
(ii) Daring & not Afraid to Take Risks:
Some of the most successful entrepreneurs took major risks, and they paid off in a big way. Many would assume it is not possible to start a business with very little money, but those who are not afraid to take risks do not see things such as limited funding as a handicap.
(iii) High Level of Self-Confidence & Self-Belief:
Entrepreneurs that have a high level of confidence are able to get the job done even under the most stressful conditions. They understand that big challenges breed big rewards.
(iv) Craves for Learning & Continuous Curiosity:
One has to stay sharp, and that requires that one is constantly learning. Industries constantly change and evolve; therefore, learning becomes very essential. For doing this Reading books and industry news helps to absorb new information.
(v) Accepts Failure as a Part of the Game & do not Get Deterred by Set-Backs:
Richard Branson said it best: “Few first ventures work out. It is how a beginning entrepreneur deals with failure that sets that person apart. In fact, failure is one of the secrets to success, since some of the best ideas arise from the ashes of a shuttered business.”
(vi) Passionate about Business:
Passion fuels the drive and determination required to be successful, whether you are building a company from the ground up or buying an Internet business that already has a proven track record.
(vii) Highly Adaptable & Flexible:
If you are extremely adaptable it gives you the ability to respond quickly in any situation. This allows you to make decisions that will navigate you out of trouble and allow you to thrive in environments that would sink those that aren’t adaptable.
(viii) Good Understanding of Money & Finance Management:
Money problems can destroy a business the same way they can ruin a marriage. Good knowledge of finance helps in achieving success.
(ix) Expert at Networking:
There are the relationships that lead to business opportunities and long-term relationships that are mutually beneficial. You should always know how you can help someone and provide value to them before even thinking about how the relationship will be potentially beneficial to you.
(x) Ability to Sell and Promote:
Knowing how to sell is an absolutely essential part of being a successful business owner.
Qualities of a Successful Entrepreneur
The qualities of an entrepreneur that contribute to success are the result of his achievement motivation. A successful entrepreneur must be a person with technical competence, initiative, good judgment, intelligence, leadership qualities, self-confidence, energy, attitude, creativeness, fairness, honesty, tactfulness and emotional stability.
Some of these qualities are briefly stated below:
1. Mental Ability- Mental ability consists of intelligence and creative thinking. An entrepreneur must be reasonably intelligent, and should have creative thinking. He should anticipate changes and must be able to study the various situations under which decisions have to be taken.
2. Clear Objectives- An entrepreneur should have a clear objective as to the exact nature of the goods to be produced and subsidiary activities to be undertaken.
3. Communication Ability- Communication ability is the ability to communicate effectively. Good communication also means that both the sender and receiver understand each other and are being understood. He should effectively communicate with customers, employees, supplier’s creditors, etc.
4. Motivator- An entrepreneur must build a team, keep it motivated and provide an environment for individual growth and career development.
5. Self Confidence- Entrepreneurs must have belief in themselves and the ability to achieve their goals.
6. Long-term Involvement- An entrepreneur must be committed to the project with a time horizon of five to seven years.
7. High Energy Level- Success of an entrepreneur demands the ability to work long hours for sustained periods of time.
8. Persistent Problem Solver- An entrepreneur must have an intense desire to complete a task or solve a problem. Creativity is an essential ingredient.
9. Initiative- An entrepreneur must have initiative accepting personal responsibility for actions, and above all, make good use of resources.
10. Goal Setter- An entrepreneur must be able to set challenging but realistic goals.
11. Moderate Risk-taker- An entrepreneur must be a moderate risk-taker and learn from any failures.
These personal traits or qualities go a long way in making an entrepreneur a successful man/woman.
Qualities of a Successful Entrepreneur:
The following are some common features of successful entrepreneurs:
i. Take Calculated Risks:
Entrepreneurs are calculated risk takers. They spot opportunities, choose less-travelled paths, and do unusual things while trying to realize a dream. Entrepreneurs see ‘problems’ as ‘opportunities,’ then take action to identify the solutions to those problems and the customers who will pay to have those problems solved. Entrepreneurial success is simply a matter of turning gaps into opportunities.
ii. Coordinate Efforts:
They pool resources, build a solid business plan and apply their will and skill to get things done. Entrepreneurs can rightly be called the force that drives economic and social progress.
iii. Innovate and Deliver Value:
They are the innovators and also the source of employment, productivity and progress. The annals of history are replete with inspiring stories of famous entrepreneurs who have earned each and every penny through hard work and dedication.
iv. Convert Dreams into a Concrete Action Plan:
Each of them had a dream and the belief in their dream. They tackled all the problems and strode towards achievement of their goals. They worked out their difficulties and devoted their lives to work. There are innumerable examples of famous entrepreneurs who earned their billions with their ideas and hard work. They have the will and skill to turn mere dreams to reality. According to the Forbes website, the real essence of entrepreneurship is ‘define, invest, build and repeat’.
v. Heroes of Present-Day World:
Dedicated entrepreneurs are passionate; they turn their passion into their business. They are the heroes of today’s marketplace. Successful entrepreneurs have acted as pillars of society, and because of their contribution, we live a better life today. They were born to bring their vision to life. For example, Henry Ford’s mass production of vehicles changed the way people lived in the 20th century by offering mobility. Steve Jobs, Bill Gates, Larry Page and Eric Schmidt revolutionized the cyber world, which has become an integral part of our lives today.
vi. Create Jobs and Improve the Quality of Human Life:
Entrepreneurship has proved to be a catalyst in the process of technological development and improvement of human lives. Entrepreneurs create millions of jobs and generate enormous wealth in society. They are the ones who not only have the right ideas but the courage to explore things and create the opportunities for themselves and in turn the society at large.
Qualities of an Entrepreneur – Few Entrepreneurial Characteristics
In this contexts two questions arises.
What makes an entrepreneur successful? Is there anything common in the personal characteristics of the entrepreneurs?
In an endeavour two answer these questions we need to understand the characteristics of an entrepreneur. There have been sufficient studies to trace the common characteristics of the entrepreneurs.
Here, we shall try to enlist few entrepreneurial characteristics:
1. Desire or Urge to Achieve:
An entrepreneur must have an inherent urge to achieve the desired goals. McClelland found that people with a high need for achievement perform better. The “n Ach” people are achievement motivated and look forward to attain challenging goals and achieve marvelous achievements in their endeavours.
2. Retain Motivation towards Achievement:
A successful entrepreneur must retain the strong motivation level towards the achievement of a task. There may be obstacles and hindrances, but an entrepreneur must keep himself/ herself motivated even at the difficult times.
3. Leadership Quality:
An entrepreneur ought to be a good leader. The entrepreneur has to bring all the factors of productions into a single platform. He/she should be able to lead the workers successfully.
4. Risk Bearing Capacity:
An entrepreneur makes his move under uncertainty. The entrepreneur should be willing to bear risk. The entrepreneur takes moderate risks. He is not a gambler. In the entire process of establishing an enterprise, the entrepreneur bears the uncertainty involved in the enterprise. The entrepreneur undertakes the responsibility of bearing the losses that may arise on account of new ideas and projects undertaken by him/her.
5. Decision Maker:
An entrepreneur is expected to be very good in decision making. Every phase in entrepreneurship needs proper decision making. The decision making ability of the entrepreneur helps in solving many problems.
An innovating mind is an inherent characteristic of a successful entrepreneur. An entrepreneur introduces new technology in production; discover new products, source of raw materials, and new markets. The entrepreneur as an innovator comes up with new ideas, products, services, methods in order to meet the ever changing needs of consumers most successfully. The entrepreneur has a profound influence on the level of business activities.
7. Goal Oriented:
An entrepreneur should be highly goal-oriented. An entrepreneur must be able to set realistic but challenging goals for him as well as for others in the organisation.
8. Desire to own Responsibility:
An entrepreneur must be able to own responsibility .The entrepreneur must have a sense of personal responsibility for the outcome of the initiatives that he/she takes while pursuing his/her entrepreneurial pursuit.
9. Organizing Skill:
An entrepreneur must be able to mobilize the available resources in an efficient manner. The entrepreneur must be able to organize all the factors of production. The entrepreneur should be able to allocate the appropriate worker for a task to be accomplished. Effectively combining manpower and jobs would enable the entrepreneur to be successful.
10. Work in Uncertain Conditions:
All entrepreneurial endeavours are shrouded with uncertainty. The entrepreneur must possess the guts to work in this uncertain environment. The ability to handle uncertainty is the key to success.
11. Emotionally Stable and Have Self-Control:
An entrepreneur is expected to be emotionally stable. It helps him/her in meeting the challenges of exploiting a new business opportunity.
12. Communication Skill:
An entrepreneur is expected to possess a high level of communication skill. The entrepreneur needs to efficiently communicate with all the concerned business partners. He/ She must be able to communicate his/her views and ideas to the employees, customers, suppliers, and financiers.
13. High Level of Commitment and Dedication:
An entrepreneur must be highly dedicated and committed towards his task. Beginning a enterprise successfully requires total commitment from an entrepreneur.
14. Possess High Level of Energy:
An entrepreneur has to be energetic. Organizing resources and coordinating all the factors of production requires long hours of work and therefore, an entrepreneur should possess high level of energy.
15. Technical Knowledge:
An entrepreneur is expected to have a reasonable level of technical knowledge. The entrepreneur should be aware of the latest technology available. The technical knowhow allows the entrepreneur to appreciate and understand changes in the technological environment. The entrepreneur can bring about required technological up gradation or changes.
Technical knowledge is an inevitable prerequisite for a normal entrepreneur to bring about innovation in the technology used in the production process.
16. Analytical Mind and High Mental Ability:
An entrepreneur should bear an analytical mind in order take pragmatic and realistic decisions. He /she should be able to analyze various problems and situations associated with the enterprise. Moreover, the entrepreneur should not have a prejudiced mind, but should deploy his/her analytical mind to solve all the issues.
The business environment is very dynamic. There are often changes which could be detrimental for an enterprise. A true entrepreneur should be able to adapt to the changes in the business environment. Rigidity and inertia to change could be fatal. There may be changes in demand conditions, supply conditions, government policies, global business environment .The successful entrepreneur is very flexible in his/her approach and deals with the changes with great caution. The entrepreneur should be ready to change the strategies whenever necessary.
18. Willing to Learn from Feedback:
A successful entrepreneur likes to receive feedback of his/her performance. The feedback allows the entrepreneur to decide his/her future course of action.
An entrepreneur must have self-confidence to successfully complete the business endeavour. Self-confidence helps the entrepreneur to tide over all the problems associated with his/her entrepreneurial pursuit.
An entrepreneur must be perseverant. He /she may face failures. But the entrepreneur should never bow down. He/ she should change the strategy and try again and again to materialize his/her vision into reality. An entrepreneur should never quit till the project is successfully completed.
It is prudent for an aspiring entrepreneur to understand the different characteristics of an entrepreneur. The potential entrepreneur should take stock of what might be lacking and acquire those skills through training.
Qualities of an Entrepreneur – Top 13 Qualities that an Entrepreneur Must Have
Some of the qualities of an entrepreneur are discussed below:
1. Risk-Bearing Capacity:
An entrepreneur is not simply an innovator but a risk-bearer also. Entrepreneurship involves risk and uncertainty as all the decisions are concerned with future and the future is uncertain, which cannot be predicted in advance.
2. Ability to Innovate:
Innovation is the basic instrument of entrepreneurship. An entrepreneur is basically an innovator who introduces something new to the economy.
3. Business-oriented Tendency:
It is a tendency to do any business activity, even by taking the risk or uncertainly.
4. Creative Activity:
Entrepreneurship is a creative activity to do something new through innovation.
5. Managerial and Leadership Quality:
Richman and Copen writes that entrepreneurship involves innovation and dynamic leadership. According to Hoselitz, “Managerial skills and leadership are the most important facts of entrepreneurship.”
6. A Function to High Achievement:
According to McClelland, “People having high need for achievement are more likely to succeed as entrepreneur.”
7. A Function to Organisation:
An entrepreneur combines the various factors of production to form an enterprise for the purpose of producing some useful items for the society. He is the organiser and administer and supervise the process of implementing the decisions taken by him.
8. Entrepreneur and Capitalist:
An entrepreneur is not only an innovator or a manager, but he invests in the capital of the business to start with.
9. Entrepreneurship is not a Personality Trait, but a Behaviour:
Taking a most accurate decision has much importance, but every decision bears risk. However, only by developing the skill of decision-making, one can become an entrepreneur. This is the reason that Peter Drucker writes, “Entrepreneurship is not a personality trait, but a behaviour.”
10. Environment-Oriented Activity:
Joseph A. Schumpeter observes that entrepreneurship is a creative response to every external situation. It is an open system related with the environment. An entrepreneur produces something under the influence of social, economic, political and physical environmental factors.
11. Management is the Vehicle of Entrepreneurship:
An entrepreneur takes decision for change or improvement of an enterprise. It is the entrepreneurial management that runs the vehicle of every enterprise.
12. Creation of Resources:
Things are available in the form of raw materials or substances in the country. It is the entrepreneurship that transforms them into resources of production.
13. Essential for All Kinds of Economies:
Entrepreneurship is an important organ of all kinds of economies in the world as well as for every kind of business organisation. This is the reason that Robert Lamb observes that all the people in the world are entrepreneurs in their own way.
Qualities of an Entrepreneur – Change Agent, Self Confidence, Energy Level, Level of Risk, Need for Achievement, Tolerance for Ambiguity and Locus of Control
An entrepreneur should be one who bears, innovates or imitates and organizes the business.
Following are the important qualities of an entrepreneur:
An entrepreneur is expected to work as a change agent. The entrepreneur is a catalyst for change. He should be alert to the signs that change is needed. “Both external and internal forces can act on the entrepreneurial organisation, just as they do on other organizations. The complex and uncertain environment can create the need to change.”
In this context, entrepreneur is the person who recognizes the need for change and directs it. Whenever a particular need to change is recognised the entrepreneur becomes the key person to initiate that change.
Entrepreneurs should have confidence in their abilities to make both strategic and day- to-day decisions regarding technical matters, marketing and overall business strategy. They should also feel capable of overcoming any future unanticipated problem. Since entrepreneur is to work as cheerleader and coach while implementing change, he requires capability to overcome any resistance to change. Actually overcoming any resistance to change requires intense interpersonal efforts and support.
To be successful, a new venture requires hard work and dedication. In practice, success of an entrepreneur needs the ability to work for long hours in completing the task before him. Entrepreneurs need an unusually high energy level in order to meet the demands of launching and running a business.
The entrepreneur assumes risk. Entrepreneurs shift resources from areas of low productivity and yield to areas of higher productivity and yield. Of course, there is a risk they may not succeed. But if they are even moderately successful, the returns should be more than adequate to offset whatever risk there might be. Thus, entrepreneurs are typically characterized as risk takers. Successful entrepreneurs actually tend to take moderate risk rather than little risk or excessive risk.
Entrepreneurs exhibit a high need for achievement which accounts for their seemingly endless drive. Studies show that people with high need achievement like to take risks but only reasonable ones and such risks stimulate them to greater effort. Moreover, McClelland found that certain societies tended to produce a larger percentage of people with high need achievement. Thus, high achievers set ambitious short-term and long-term goals that challenge them and that provide great personal satisfaction when achieved.
Imperfection in information is always possible and manager is required to take decisions with incomplete or unclear information. But entrepreneurs even face more ambiguity since they may be doing certain things for the first time and they are risking their livelihood. Thus, entrepreneurs should be comfortable and capable of making decisions based on incomplete or little information. Practically it is a critical trait for entrepreneurs who face a great deal of uncertainty at the time of starting new enterprise.
General idea that individuals not luck or fate control their own lives. Entrepreneurs work with impression that they are pulling their own strings. Thus, entrepreneurs tend to believe that they have a high degree of control over their lives. Side by side they oppose to believe their lives are governed by luck, fate or other external sources. Since they feel in control of their lives they should be able to strike out on their own and assess the future prospects by their own calculations.
Qualities of an Entrepreneur – 14 Most Important Qualities that Contribute to Entrepreneur’s Success
Entrepreneurship is more than dressing well-it takes certain characteristics and steps:
Entrepreneurial success is not all about innovative thinking and breakthrough ideas but entrepreneurial success usually comes through great execution, simply by doing a superior job of doing the blocking and tackling. But what else does it take to succeed as an entrepreneur and how should an entrepreneur define success?
Many businesspeople would argue there is not one concrete recipe for success, but many successful entrepreneurs have in common certain characteristics that have contributed to the rise of their companies. With the rapid advancement of technology and communication methods, entrepreneurship has become a popular means for survival during the past decade or so.
Certain factors or qualities that contribute to an entrepreneur’s success are:
One important success factors of entrepreneurs is the ability to come up with a concept, envision what it looks like and execute it effectively. This process, called innovation, is essential to any successful business owner and entrepreneur. When coming up with an idea, an entrepreneur must think of what he enjoys doing, analyze competition, perform market research to see if there is a demand and figure out how to make the idea work. This takes talent, initiative and creativity.
2. Money Management:
Money is what keeps a business venture afloat. It is an essential part of buying inventory, paying employees, marketing the business, buying or repairing business tools and paying his own salary. A successful entrepreneur knows how to manage his money.
From the very beginning, it takes dedication and self-control not to make a wrong financial decision or prematurely spend company money, especially in a lone venture. In addition, he knows when to hire help, when he can afford an office space and pays his bills on time all while running his company.
Starting a business on your own, let alone with someone else, takes lots of planning. However, the temptation often is to jump straight into the venture with minimal planning. The “figure it out along the way” mentality is not one of many successful entrepreneurs. Planning is essential to starting and running a successful business.
From the early stages- market research and business plan writing to later stages hiring, firing and sustaining—a successful entrepreneur must think ahead, analyze every single business decision and constantly compile data. Another aspect of planning is setting goals, outlining how to achieve them and achieving them. Short-term and long-term goals help motivate and remind entrepreneurs of their passions and aspirations, according to “Entrepreneur”.
Adaptation is essential in an entrepreneur’s success. This essential factor comes in several different forms and is vital to the beginning and life of a new company. Entrepreneurs must learn how to adapt during the business planning stages. Throughout the process whether in market research, coming up with an idea or writing a business plan things change, and an entrepreneur must be able to alter an idea or plan to fit the circumstances.
Another form of this factor is adapting technologically to your industry. With the major emphasis on technology in all major industries, if you can keep it up, you can succeed. Entrepreneurs must constantly research industry standards so they can keep up with competitors.
The entrepreneur must be passionate about what he is trying to achieve. That means he is willing to sacrifice a large part of his waking hours to the idea he has come up with. His passion will ignite the same intensity in the others who join him as he builds a team. And with passion, both his team and customers are more likely to truly believe in what he is trying to do.
6. Maintain Focus:
Great entrepreneurs focus intensely on an opportunity where others see nothing. This focus and intensity helps to eliminate wasted effort and distractions. Most companies die from indigestion rather than starvation. Companies suffer from doing too many things at the same time rather than doing too few things very well. Stay focused on the mission.
7. Hard Work:
Success only comes from hard work. There is no such thing as overnight success; behind every “overnight success” lies years of hard work and sweat. People with luck will tell you there’s no easy way to achieve success-and that luck comes to those who work hard. Focus on things you can control; stay focused on your efforts and let the results be what they will be.
8. Enjoy the Journey:
The road to success is going to be long, so remember to enjoy the journey. Everyone will teach you to focus on goals, but successful people focus on the journey and celebrate the milestones along the way. Is it worth spending a large part of your life trying to reach the destination if you didn’t enjoy the journey? Won’t your team also enjoy the journey more as well? Wouldn’t it be better for all of you to have the time of your lives during the journey, even if the destination is never reached?
9. Trust Your Gut Instinct:
There are too many variables in the real world that you simply can’t put into a spread sheet. Spread sheets spit out results from your inexact assumptions and give you a false sense of security. In most cases, your heart and gut is still your best guide. We’ve all had experiences in business where our heart told us something was wrong while our brain was still trying to use logic to figure it all out. Sometimes a faint voice based on instinct is far more reliable than overpowering logic.
10. Be Flexible but Persistent:
Every entrepreneur has to be agile, continually learning and adapting as new information becomes available. At the same time, you have to remain devoted to the cause and mission of your enterprise. That’s where that faint voice becomes so important, especially when it is giving you early warning signals that things are off-track. Successful entrepreneurs find the balance between listening to that voice and staying persistent in driving for success-because sometimes success is waiting right across from the transitional bump that’s disguised as failure.
11. Rely on Your Team:
It’s a simple fact – no individual can be good at everything. Everyone needs people around them who have complementary skill sets. It takes a lot of soul searching to find your own core skills and strengths. After that, find the smartest people you can who complement your strengths. It’s tempting to gravitate toward people who are like you; the trick is to find people who are not like you but who are good at what they do-and what you can’t do.
12. Focus on Execution:
Unless you are the smartest person on earth, it’s likely that many others have thought about doing the same thing you’re trying to do. Success doesn’t necessarily come from breakthrough innovation, but from flawless execution. A great strategy alone won’t win a game or a battle; the win comes from basic blocking and tackling. No matter how much time you spend perfecting your business plan, you still have to adapt according to the ground realities. You’re going to learn a lot more useful information from taking action rather than hypothesizing.
13. Have Integrity:
I can’t imagine anyone ever achieving long-term success without having honesty and integrity. These two qualities need to be at the core of everything we do. Everybody has a conscience-but too many people stop listening to it. There is always that faint voice that warns you when you are not being completely honest or even slightly off track from the path of integrity. Be sure to listen to that voice.
14. Give Back:
Success is much more rewarding if you give back. By the time become successful, lots of people will have helped you along the way. You’ll learn, as I have, that you rarely get a chance to help the people who helped you because in most cases, you don’t even know who they were. The only way to pay back the debts we owe is to help people we can help-and hope they will go on to help more people. It’s our responsibility to do “good” with the resources we have available.
You might do all of the above and will wonder “but am I successful?” Success, of course, is very personal; there is no universal way of measuring success. What do successful people like Bill Gates and Mother Teresa have in common? On the surface it’s hard to find anything they share-and yet both are successful. The real metric of success isn’t the size of your bank account. It’s the number of people in whose lives you are able make a positive difference. This is the measure of success we need to apply while we are on our journey to success.