Chapter 2 entrepreneur

8/22/2019 Chapter 2 entrepreneur

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Identifying

EntrepreneurialCharacteristics


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By the end of this topic, you should be able to:

1. Identify sixteen characteristics of successful

entrepreneurs;

2. Evaluate your entrepreneurial inclination potential using

the entrepreneur self- assessment test; and

3. Describe at least three differences between businessmen,

managers and entrepreneurs.


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Initiative and Responsibility

Most researchers agree that effective entrepreneurs actively seek

and take the initiative. They willingly put themselves in situations

where they are personally responsible for the success or failure of

the operation.

Entrepreneurs feel a personal responsibility for the outcome of

ventures in which they are associated. They like to take the

initiative in solving problems where no leadership exists.


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High Degree of CommitmentLaunching a venture successfully requires total commitment

from entrepreneurs. This commitment helps entrepreneurs

to overcome business-threatening mistakes and obstacles.

Entrepreneurs commitment to their ideas and ventures

determine how successful those ventures

ultimately become.


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Opportunity Orientation

Entrepreneurs focus and start on opportunities rather than on resources,

structure, or strategy. They begin with opportunities and let their

understanding of them guide other important issues. Entrepreneurs have a

well-defined sense of searching for opportunities. In searching for new

business opportunities, entrepreneurs observe the same events other people

do, but they see something different. Entrepreneurs are not only capable of

searching for opportunities but are also capable of seizing the extraordinary

ones.


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Moderate Risk-Taker

Entrepreneurs are not wild risk-takers; they are calculated risktakers.

When entrepreneurs participate in any venture, they do so in a

very calculated, carefully thought out manner. They often avoid

taking unnecessary risks.


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Confident and Optimistic

Entrepreneurs typically have an abundance of confidence in their

ability to succeed. They tend to be optimistic about their chancesfor success, and usually their optimism is based on reality. The

high level of confidence and optimism explains why some of the

most successful entrepreneurs have failed in business, often more

than once, before finally succeeding.


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Creative and Innovative

Creativity and innovativeness are important for entrepreneurs to

gain a competitive advantage in their ventures. Through theircreative and

innovative minds and imagination, entrepreneurs can produce

unique goods and services for customers. Creativity is not

inherited, it can be learned.


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Seeking Feedback

Entrepreneurs like to know how they are doing and are

constantly looking for reinforcement. They actively seek

and use feedback to improve themselves and their venture

performance. From feedback, entrepreneurs can learn fromtheir mistakes


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Drive to Achieve

Achievement seems to be the primary motivating force behind

entrepreneurs. Entrepreneurs are self-starters who internally have

a strong desire to compete, excel, pursue and attain challenginggoals. One of the common misconceptions about entrepreneurs is

that they are driven wholly by the desire to make money. To

entrepreneurs, money is simply a symbol of achievement, not the

driving motive.


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Ability to Set Vision

Entrepreneurs know what they want to achieve. They have a

vision or concept of what their firm can be. Not all entrepreneurshave predetermined visions for their firm. In many cases, this

vision develops over time as the entrepreneur begins to realise

what the firm is and what it can become.


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Skilled at Organising

Building a venture from the very beginning is not easy. So,

entrepreneurs know how to put the right people together toaccomplish a task.

Entrepreneurs are able to organise their resources in an effective

way so as to transform their visions into reality.


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Internal Locus of Control

Entrepreneurs believe that the success or failure of their venturedepends on themselves. Their accomplishments and setbacks are

within their own control and influence, and they can affect the

outcome of their actions.


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Tolerance of Failure

Entrepreneurs do not become disappointed, discouraged, or

depressed by failure. They use failure as a learning experience. Indifficult times, they still look for opportunities. Most

entrepreneurs believe they learn more from

their early failures than from their early successes.


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High Level of Energy

Entrepreneurs are more energetic than the average person.

Entrepreneurs need to have a high level of energy so as to copewith the extraordinary workload and the stressful demands they

face. That energy may be a critical factor, given the incredible

effort required to start-up a company.


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Team Building

Most successful entrepreneurs have highly qualified and

well-motivated teams that help handle the ventures growth

and development.


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Independent

Entrepreneurs are independent people. They like to

accomplish tasks in their own way. This does not mean

entrepreneurs must make all the

decisions. They want to have authority to make importantdecisions.


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Flexibility

Entrepreneurs are not rigid in their venture. They are

flexible and have the

ability to adapt to the changing demands of their customers

and businesses.

In this rapidly changing world economy, rigidity often leads

to failure.

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Chapter 2 entrepreneur