Project 1

EDP

Entrepreneurial Quotient (EQ)

Report submitted By

Rakesh K.

3rd Sem,MBA Full Time

Roll No : 27

SMS,CUSAT

Objective: People who have a high EQ need not be good entrepreneurs as this is a totally

different field. The study aims at finding out the entrepreneurial traits found in

entrepreneurs. It tries to establish if any common traits are found among the

entrepreneurs. It helps to answer to the query as what is that which makes the

entrepreneur different. The Entrepreneurial Quotient is measured by studying the various

traits.

Methodology: The study was done by identifying five entrepreneurs. They are then

questioned on various aspects as given in the questionnaire. The responses are studied

and then clubbed under various headings. Also the same questions were posed to five

non-entrepreneurs or the salaried class people. Based on these the final data has been

compiled. To simplify the process, a point system has been used. The EQ of the

entrepreneurs and of non-entrepreneurs has been arrived by using the points system.

Profile:

Profile of the entrepreneurs chosen for study is given below:

Age: All entrepreneurs studied here are aged below 40 years except one who is of 58

years old. The average age of the entrepreneurs considered for study is 38 years. The

youngest entrepreneur is 28 years old.

Educational Qualification: All the entrepreneurs except two have done graduation in

commerce. One of the graduate holds a post graduate degree in management.Two persons

have done graduation in arts.

Profile of the non-entrepreneurs or the salaried class studied:

All the persons have good positions in MNCs except one who is employed in a bank.

Three persons studied here have experience of more than 15 years, while others have an

experience of about 5 years.

Analysis:

The responses were studied in depth and were correlated to find their meanings.

The various aspects that were studied during this project can be clubbed into following

headings:

Self Control, Self Confidence, Creativity, Sense of Urgency, Conceptual Ability

Realism, Risks and Tolerance, Persistence/Determination, Initiative, Luck,

Learning from others, Clarity in thoughts, People skills, Interpersonal Relationships

Emotional Stability, Honesty/Integrity, Comprehensive Awareness

Interestingly none of the five respondents have done small jobs during their childhood. It

is also interesting that only one person has a family that own businesses, remaining others

are first generation entrepreneurs. All the entrepreneurs have a good support from their

spouse in matters regarding financial risks.

To enable easier analysis,each responses have been given a point.If the response is very

much apt to the entrepreneurial activity then it is given highest point.All other entries are

then given lower points in descending order.

For example,take the question no 32 - I enjoy power, control and authority .

The responses will be assigned the following points:

Fully Agree Agree No Opinion Disagree Fully Disagree

10 5 0 -5 -10

The entrepreneurs are found to enjoy power,control and authority.Hence the point system

assigns more points to first response and negative points to those who disagree. The ideal

measurements would be 470 points for all the qualities considered.

Findings:

Self control: One of striking quality found in all the entrepreneurs is their desire to be

independent and be their own boss. All of them also agree that they enjoy power, control

and authority. All expect two respondents told that they do not read self help books.

Majority of them agreed that they were aware of factors that decide personality

characteristics.This aspect was found missing in case of non-entrepreneurs.

Self Confidence: All the respondents scored high on the aspects like being

ambitious,having good managerial skills and selling skills.This shows that the

entrepreneur may not be selling goods but he has the confidence to take up unknown

jobs.The salaried class scored low in this aspect too.

Creativity : Majority of the respondents scored high in this regard.We can understand that

the entrepreneurs don’t do different things but they do things differently.They are capable

to think out of box even in stresses situations due to their creativity.

Sense of Urgency: Again majority of the respondents in entrepreneurs’ category had a

feeling to complete a task once they set their target. They also agree that at times they

take quick decisions. They believed they were highly energetic and aggressive in their

approach.

Conceptual Ability : The entrepreneurs responded that they enjoyed solving problems

where as the salaried class does not want to come into contact with problems.This shows

that entrepreneurs have a good conceptual ability as they enjoy finding solutions for

problems.

Realism : The entrepreneurs were practical people who want to make things happen.All

the entrepreneurs scored high in this regard.

Risks/Tolerance : All entrepreneurs took personal and financial risks.They were willing

to face the consequences of their decision and accept outcomes whether it was profitable

or a loss making decision.On the other hand the salaried class surveyed here were

running away from risks as all scored badly on this aspect.

Persistence / Determination : The entrepreneurs scored very high points in this

aspect.One of the entrepreneur mentioned that he had previously failed in many

businesses but has come back to start another one.This shows that entrepreneurship is for

those who are willing to pursuit their dreams despite setbacks.

Emotional Stability: The Entrepreneurs had good emotional stability despite their set

backs as all of the respondents agreed that they never get upset by setbacks.They also

found time for relaxation and get up happy.

Learning from others: The data shows that all the entrepreneurs are willing to go extra

mile to learn things they are unaware of .They are not shy to ask helo from others when

required.

Honesty and Integrity: All of the entrepreneurs are dedicated to their work and

business.They show high degree of ethics in their business when dealing with customers

and partners.

Comprehensive Awareness: All respondents were aware of their customer’s choices and

tastes.They also knew the sources of finance available at lowest cost.They were familiar

with business laws and practices.

Interpersonal Relationship: This aspect seems to be common for both the entrepreneurs

and the salaried persons.

Based on the conversion system adopted for each response we have the detailed scores of

Entrepreneurs in the table below.

Question

No

Ideal

Scores

Mohan

Das Agison Naushad Alex Prakash

1 10 5 5 -10 -10 -10

2 10 5 5 5 5 -5

3 10 5 5 5 5 5

4 10 5 5 -5 5 5

5 10 10 5 5 10 10

6 10 5 5 5 10 10

7 10 10 5 5 10 5

8 10 5 5 5 10 10

9 10 5 5 5 5 10

10 10 10 10 0 5 10

11 10 5 0 10 0 10

12 10 5 5 5 5 5

13 10 5 5 0 5 5

14 10 10 10 5 5 5

15 10 5 5 5 5 5

16 10 5 5 5 5 5

17 10 5 -5 -5 5 5

18 10 5 5 5 5 5

19 10 5 10 5 10 5

20 10 10 5 5 10 5

21 10 10 5 5 5 5

22 10 5 5 5 5 0

23 10 10 5 5 5 5

24 10 5 5 0 5 5

25 10 10 5 5 5 5

26 10 5 5 0 5 5

27 10 5 5 5 5 5

28 10 5 5 5 5 0

29 10 5 5 0 5 5

30 10 5 10 5 5 5

31 10 5 5 5 5 5

32 10 5 5 5 5 5

33 10 5 5 5 5 5

34 10 5 5 5 5 5

35 10 5 5 5 5 10

36 10 5 5 5 5 5

37 10 10 5 5 5 5

38 10 5 5 0 -5 -5

39 10 0 5 -5 -5 -10

40 10 5 5 5 5 5

41 10 5 5 5 5 5

42 10 5 5 5 5 5

43 10 10 5 5 5 5

44 10 5 5 5 5 5

45 10 5 5 5 5 5

46 10 5 5 -5 5 -10

47 10 5 5 5 5 5

Total

Score 470 280 240 155 225 195

EQ of Entrepreneurs

0

50

100

150

200

250

300

350

400

450

500

Ideal Scores Mohan Das Agison Naushad Alex Prakash

Entrepreneurs

Score

The same methodology when adapted to non-entrepreneurs, the scores were negative.

They were hardly willing to take risks. They could not with stand even small set backs

like denial of promotions. They were totally unaware of business ideas. They also never

determined their net assets.

Conclusion:

The results show that the entrepreneurs seem to show certain qualities which are missing

in salaried persons.The EQ of an entrepreneur is very high when compared to that of a

salaried persons.The Entrepreneur is more risk taking, emotionally stable, has good

awareness of opportunities and threats and is a practical person.He enjoys independence

and authority.He likes to be his own boss where as the salaried persons are satisfied with

their positions.The salaried class seem to be not caring much for status as long as their

salary comes on time.They need constant guidance to do things whereas an entrepreneur

will learn by himself and try to do of his own.EQ is also not depended on persons’ family

occupation as all of the entrepreneurs except one are first generation entrepreneurs.