Traits of a successful entrepreneur
From the last write-up in What is Entrepreneurship (Part I), we understood that entrepreneurs undertake risks, carry out new combinations of innovations, able to make decisions and possess needs for achievements. Successful entrepreneurs possess personality traits that motivates them in their entrepreneurship activities. According to Chell et al. (1991), many of the character traits found to be significant in entrepreneurs are similar to the character traits of other successful people.
Entrepreneurs are a special kind of people that possess pertinent traits which drives them to success. They are motivated internally and externally. Their internal motivating factors are their personal goals, need for achievement and ambition; while the external factors come from compulsion to sustain living, support from others, looking at exemplar successful entrepreneurs, having access to capital and retaining status.
McClelland (1987) mentioned forty-two unique characteristics of entrepreneurs that could be found in literature. He lead a research team to conduct a cross-cultural study on successful entrepreneurs. The outcome of the research produce 13 competencies which are common to all successful entrepreneurs. They are:
- Entrepreneurs act fast and take initiative ahead of others in the industry. With their initiative, entrepreneurs are able to take ideas into action.
- Entrepreneurs always seizes opportunities and acts on it. They are able to identify opportunities to exploit future products and services.
- Entrepreneurs are persistent in the activities and overcome obstacles. Despite their challenges, entrepreneurs remain steadfast, focused and do not give up easily.
- Entrepreneurs constantly seeks information to help them achieve their objectives. They hunt for information on their businesses and conduct researches to satisfy customers and solve problems.
- Entrepreneurs are concerned for high quality of their works and act to achieve a standard of excellence. Good quality products and services lower production costs and give better margins to the business. It also gives good reputation.
- Entrepreneurs are committed on their work contracts and places high priority to the theirs jobs done. They keep their words and promises with their efforts and dedication.
- Entrepreneurs are oriented for efficiency and will always find ways to do tasks using low resources and costs. They tend to approach a task with the goal of obtaining the most out of the resources used.
- Entrepreneurs are systematic planners; they develop and use logical step-by-step plans to achieve their goals. They do not leave things to luck; they plan for whatever they expect in the business. With systematic planning, processes and actions will be made easier and more effective.
- Entrepreneurs identify new and unique solutions to solve problems. They apply innovations and creativity to solve societal, business and technological problems.
- Entrepreneurs possess self-confidence with their own ability to meet challenges. Their self confidence enabled them to challenge the norms and embark into unknown areas without fear.
- Entrepreneurs are assertive with ability to confront problems and issues with people directly. They feel secure in their actions and they are willing to accept the risk of confrontations.
- Entrepreneurs are persuasive and able to persuade others to mobilise resources, obtain inputs, organise productions and sell products and services. They can convince investors on their ideas, persuade partners on their approach and potential customers on their solutions.
- Entrepreneurs are able to use influential strategies and people to achieve goals. They are able to transform and shape the opinion of others using their influences.
To be continued in What is Entrepreneurship (Part III)
Bibliography
Chell, E., Haworth, J. and Bearley. S. (1991) The Entrepreneurial Personality: Concepts, Cases and Categories. London: Routledge
McClelland, D. C. (1987) Characteristics of Successful Entrepreneurs. The Journal of Creative Behavior
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