ATTRIBUTES QUALITIES AND CHARACTERISTICS OF AN ENTREPRENEUR Andrew

ATTRIBUTES, QUALITIES, AND CHARACTERISTICS OF AN ENTREPRENEUR Andrew Triganza Scott MBA (Maas), M. Ed (Melit), BPsy (Hons) PGCE

Attributes, Qualities, and Characteristics of an Entrepreneur The Entrepreneur According to Schumpeter (1950), an entrepreneur is a person who is willing and able to convert a new idea or invention into a successful innovation. Schumpeter is also famous for the phrase “creative destruction”

Attributes, Qualities, and Characteristics of an Entrepreneur The Entrepreneur Webster’s – someone who runs a business at his or her own financial risk An entrepreneur is a person who undertakes the creation of an enterprise or business that has the chance of profit (or success).

Attributes, Qualities, and Characteristics of an Entrepreneur Who is the Entrepreneur? • Somebody who has IDEAS and makes these ideas happen or come to life. • Must have some BUSINESS SKILLS (ideation, creativity & innovation) • Somebody who ASSUMES RISKS • Desires to MAKE PROFIT

Attributes, Qualities, and Characteristics of an Entrepreneur The Role of an Entrepreneur: 1. Entrepreneurs are innovators Ø They observe an opportunity. Ø They create new goods and services. Ø They improve existing products.

Attributes, Qualities, and Characteristics of an Entrepreneur The Role of an Entrepreneur: 2. Entrepreneurs provide choice Ø They add goods and services to the marketplace. Ø They offer variety. Ø They design different approaches to familiar problems.

Attributes, Qualities, and Characteristics of an Entrepreneur The Role of an Entrepreneur: 3. Entrepreneurs provide jobs Ø They hire workers for their businesses. Ø They consume resources, thus providing jobs in the industries that supply those resources.

Attributes, Qualities, and Characteristics of an Entrepreneur The Role of an Entrepreneur: 4. Entrepreneurs help the economy grow.

Why Become an Entrepreneur? 1 -9 The 3 primary reasons that people become entrepreneurs and start their own firms Desire to be their own boss Desire to pursue their own ideas Financial rewards

Characteristics of Successful Entrepreneurs 1 of 3 1 -10 Four Primary Characteristics

Characteristics of Successful Entrepreneurs 2 of 3 1 -11 Passion for the Business The number one characteristic shared by successful entrepreneurs is a passion for the business. This passion typically stems from the entrepreneur’s belief that the business will positively influence people’s lives. Product/Customer Focus A second defining characteristic of successful entrepreneurs is a product/customer focus. An entrepreneur’s keen focus on products and customers typically stems from the fact that most entrepreneurs are, at heart, craftspeople.

Characteristics of Successful Entrepreneurs 3 of 3 1 -12 Tenacity Despite Failure Because entrepreneurs are typically trying something new, the failure rate is naturally high. A defining characteristic for successful entrepreneurs’ is their ability to persevere through setbacks and failures. Execution Intelligence The ability to fashion a solid business idea into a viable business is a key characteristic of successful entrepreneurs.

Attributes, Qualities, and Characteristics of an Entrepreneur The Qualities of an Entrepreneur: 1. Inner Drive to Succeed q Entrepreneurs are driven to succeed and expand their business. q They see the bigger picture and are often very ambitious. q Entrepreneurs set massive goals for themselves and stay committed to achieving them regardless of the obstacles that get in the way.

Attributes, Qualities, and Characteristics of an Entrepreneur The Qualities of an Entrepreneur: 2. Strong Belief in themselves Successful entrepreneurs have a healthy opinion of themselves and often have a strong and assertive personality. They are focused and determined to achieve their goals and believe completely in their ability to achieve them. Their self optimism can often been seen by others as flamboyance or arrogance but entrepreneurs are just too focused to spend too much time thinking about unconstructive criticism.

Attributes, Qualities, and Characteristics of an Entrepreneur The Qualities of an Entrepreneur: 3. Search for New Ideas and Innovation All entrepreneurs have a passionate desire to do things better and to improve their products or service. They are constantly looking for ways to improve. They're creative, innovative and resourceful.

Attributes, Qualities, and Characteristics of an Entrepreneur The Qualities of an Entrepreneur: 4. Openness to Change If something is not working for them they simply change. Entrepreneurs know the importance of keeping on top of their industry and the only way to being number one is to evolve and change with the times. They're up to date with the latest technology or service techniques and are always ready to change if they see a new opportunity

Attributes, Qualities, and Characteristics of an Entrepreneur The Qualities of an Entrepreneur: 5. Competitive by Nature Successful entrepreneurs thrive on competition. The only way to reach their goals and live up to their self imposed high standards is to compete with other successful businesses.

Attributes, Qualities, and Characteristics of an Entrepreneur The Qualities of an Entrepreneur: 6. Highly Motivated and Energetic Entrepreneurs are always on the move, full of energy and highly motivated. They are driven to succeed and have an abundance of self motivation. The high standards and ambition of many entrepreneurs demand that they have to be motivated!

Attributes, Qualities, and Characteristics of an Entrepreneur The Qualities of an Entrepreneur: 7. Accepting of Constructive Criticism and Rejection Innovative entrepreneurs are often at the forefront of their industry so they hear the words "it can't be done" quite a bit. They readjust their path if the criticism is constructive and useful to their overall plan, otherwise they will simply disregard the comments as pessimism. Also, the best entrepreneurs know that rejection and obstacles are a part of any leading business and they deal with them appropriately.

Types of Entrepreneurs 20 Novice Entrepreneur Has no prior business ownership experiences as a business founder, inheritor, or purchaser Habitual Entrepreneur Has prior business ownership experience Nascent Entrepreneur In the process of starting a new business

Types of Entrepreneurs (cont’d) 21 Serial Entrepreneur Has sold or closed an original business and establishes another new business Continues the cycle of selling/closing and establishing Portfolio Entrepreneur Retains an original business and builds a portfolio of additional businesses Through inheriting, establishing, and purchasing the businesses

Common Myths About Entrepreneurs 1 of 5 1 -22 Myth 1: Entrepreneurs Are Born Not Made This myth is based on the mistaken belief that some people are genetically predisposed to be entrepreneurs. The consensus of many studies is that no one is “born” to be an entrepreneur; everyone has the potential to become one. Whether someone does or doesn’t become an entrepreneur, is a function of the environment, life experiences, and personal choices.

Common Myths About Entrepreneurs 2 of 5 1 -23 Although no one is “born” to be an entrepreneur, there are common traits and characteristics of successful entrepreneurs: • Achievement motivated • Optimistic disposition • Alert to opportunities • Persuasive • Creative • Promoter • Decisive • Resource assembler / leverager • Energetic • Has a strong work ethic • Is a moderate risk taker • Is a networker • Lengthy attention span • Self-confident • Self-starter • Tenacious • Tolerant of ambiguity • Visionary

Common Myths About Entrepreneurs 3 of 5 1 -24 Myth 2: Entrepreneurs Are Gamblers Most entrepreneurs are moderate risk takers. The idea that entrepreneurs are gamblers originates from two sources: Entrepreneurs typically have jobs that are less structured, and so they face a more uncertain set of possibilities than people in traditional jobs. Many entrepreneurs have a strong need to achieve and set challenging goals, a behavior that is often equated with risk taking.

Common Myths About Entrepreneurs 4 of 5 1 -25 Myth 3: Entrepreneurs Are Motivated Primarily by Money. While it is naïve to think that entrepreneurs don’t seek financial rewards, money is rarely the reason entrepreneurs start new firms. In fact, some entrepreneurs warn that the pursuit of money can be distracting.

Common Myths About Entrepreneurs 5 of 5 1 -26 Myth 4: Entrepreneurs Should Be Young and Energetic. The most active age for business ownership is 35 to 45 years old. While it is important to be energetic, investors often cite the strength of the entrepreneur as their most important criteria in making investment decisions. What makes an entrepreneur “strong” in the eyes of an investor is experience, maturity, a solid reputation, and a track record of success. These criteria favor older rather than younger entrepreneurs.