What Are the Typical Philosophy, Traits and Characteristics of Entrepreneurs?

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By: Site Engineer, Staff

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Entrepreneurship Philosophy And Concept

Every person is a unique individual and no two persons are alike.

All people have had different past experiences, are living in different life situations, have different commitments and responsibilities with different life goals.

The previous experiences of an entrepreneur are usually broad and varied which determine his present life situation. Most entrepreneurs have modeled themselves on another; probably older entrepreneur and close identification such a ‘role model’ will lead to the acquisition of entrepreneurial behavior skills.

You have various obligations and commitments to yourself and to others, including your spouse, family employers or employees, friends, and other community members. Your current job and your financial and family circumstances as well as factors, help to determine your attitudes towards being entrepreneurial. If you have too many commitments responsibilities outside your work, you will find it difficult to be entrepreneurial.

In planning for the future, be realistic in determining those things about you that can be changed and those that cannot. Your past experience should help to understand your present situation.

Most entrepreneurs have definite goals and expectations. The clearer your goals are, the more likely you are to achieve them.

As earlier stated, an entrepreneur, therefore, is said to be “someone who has the ability to see and evaluate business opportunities to gather the necessary resources to take advantages of them and initiates appropriate action to ensure success”.

As an entrepreneur, you must be willing to learn from experience. You must constantly be aware of new ways to increase your own productivity. One of the main keys to your success is your involvement in continuous personal growth.

The Philosophy

The underlying philosophy of the various development programmes currently being run in each and every country is aimed at increasing the supply of adequate well-trained entrepreneurs, who will make a success out of their business ventures.

Entrepreneurship thus becomes a term used already in connection with the innovative and creative modern industrial business leader. The entrepreneur has been described as the man who perceives business opportunities and takes advantages of the scarce resources to use them profitably, it is the one who bears the non-insurable risks in his business, and it is he who directs the human and material resources in his business objectives.

It has been argued that not all businessmen are entrepreneurs. To be an entrepreneur, one has to possess some psychological traits which are either latent and could be aroused through training or manifest from which training could be built upon.

Thus, to qualify as an entrepreneur, it is not sufficient to be a businessman just managing. An entrepreneur must possess the ability to gain command of and combine resources in a new way which will be profitable. He/she must be prepared to risk his personal energy and financial resources to achieve unpredictable results.

The Concepts

The concept of any entrepreneurship development is based on two main areas.

These are:

  • That such entrepreneur should be trained based on the deficiencies identified at the screening stage in the areas of how to utilize his traits to achieve maximum economic returns on any business ventures he/she might wish to embark upon, and
  • That the entrepreneur should show his entrepreneurial traits through participation in some games and exercises which will reveal the degree of such traits in the entrepreneur.

Although these traits are difficult to judge without sophisticated tools and techniques, using a working profile of entrepreneurial qualities and traits may help in clearing views and in the long-run the evaluation of whom an entrepreneur is rather than a good businessman.

You must have qualities like technical knowledge, practical experiences in the line of the business product line, clarity of decisions, managerial competence, planning orientation and institution building capabilities.

To some extent success as an entrepreneur depends on your willingness to accept responsibility for your work. You must learn a great deal about yourself if you intend to pursue goals that are compatible with what you must want in life.

Your power comes from your own actions rather than the actions of others. Even though the risk of failure is always present; entrepreneurs take risks by assuming responsibility for their actions. Failure must be accepted as a learning experience.

Some entrepreneurs succeed only after experiencing many failures. Learning from past experience will help to channel your actions to obtain more positive results and success will result from persistent efforts.

Pursue goals related to your skills and abilities. Accept yourself as you are, and try to emphasize your strengths and play down your weaknesses. If pursue these goals honestly and aggressively you are likely to achieve a positive result. Being goal oriented will bring but your best qualities. Engage in activities which are important to you and which you do best.

Most people do not recognize the broad scope they have to determine their actions. Achieving perfection is ideal for attaining a goal but it is not realistic objectives, for most entrepreneurs. Acceptable results are more important than perfect results. Trying to achieve perfect results for one goal over a too long time will only prevent your personal growth and development.

Entrepreneurship Characteristics and Traits

Entrepreneurs are action-oriented highly motivated individuals who take risks to achieve goals. The following listed characteristics and traits provide a working profile for entrepreneurs. 

Traits: Confidence, independence, individuality optimism 

  • Characteristics: Task Resulted Oriented

Traits: Need for achievement, profit-oriented, persistence, perseverance, determination, hard work, drive, energy, and initiative.

  • Characteristics: Risk-Taker

Traits: Risk-taking ability and like challenges.

Traits: Leadership behavior gets along well with others, responsive to suggestions, criticisms, innovative.

  • Characteristics: Originality

Traits: Innovative, creative, flexible (open-minded) and resourceful.

  • Characteristics: Future-oriented

Traits: Versatile, knowledgeable, foresight, and perceptive.

The traits mentioned above are some of the ones an entrepreneur should possess or have for potential development. You may not need the traits but the more you have, the greater chances there is of your being an entrepreneur.

It should be stressed that many of these traits are highly inter-related, that is, people who are self-confident will probably accept responsibility for their own decisions be willing to take risks, and become leaders.

Not all entrepreneurs are alike either in these traits or in personal qualities. Often, they differ remarkably from each other some are aloof and arrogant some are warm and friendly; some are withdrawn and shy. But when measured on various personality traits and skills it is clear that as a group, entrepreneurs differ substantially from not being entrepreneurs.

It is unlikely that you will ever meet an entrepreneur who rates high on all the traits; but it is very likely that the entrepreneurs you do meet will rate high on most of them especially self-confidence risk-taking ability flexibility, a strong need to achieve and a strong desire to be independent.

Your career objectives should be stated in terms of priorities and the intended outcomes should be related to measurable and meaningful goals. These objectives should be challenging and should motivate you to learn and grow in your career. You learn best when doing things which interests you, and when you are committed to specific goals.

You should look at your personal qualities in a realistic manner.

Your response to the following questions will give some indication of your entrepreneurial abilities and of the type of person you are:

  • Are you a good listener?
  • Are you able to communicate well with others?
  • Are you usually self-motivated to achieve goals?
  • Do you have a positive self-image?
  • Do you make decisions easily and confidently?
  • Do you take advantage of opportunities to expand your own knowledge through reading and through attending educational courses?
  • Do you work well with other people?
  • Do your accomplishments indicate that you are growing personally and professionally?
  • Does your work require you to be self-reliant?
  • Within a group of people do you usually assume a leadership role?
  • What goals do you want to achieve and are these goals challenging?

Some of these traits are in-born while some could be learned formally through the school system and some informally through experiences and interactions with others.

Entrepreneurship Process

The entrepreneur passes through certain stages in the process of setting and development of the business.

The stages are:

1. Monitoring of Environmental Changes

This is the first stage in the setting up and development of the business. Some changes in the environment create needs for substitute goods or for new goods and services. For example, government policy banning the importation of certain goods into the country may create opportunities for local entrepreneurs.

2. Generation of Business ideas

It is one thing to monitor the environment with a view to identifying needs to be satisfied with a product or service it is another thing to have the business idea to do it.

3. Conducting Feasibility Studies and Choosing a Location

A feasibility study is a process of gathering facts and figure about a particular business idea aimed at determining the business profit potentials and the return on investment. It is, therefore, necessary to conduct a feasibility study which can be simple or detailed depending on the size of the business before committing any money.

4. Recognition of Barriers to Entering Certain Businesses and How to Overcome Them

Before going into a new business, entrepreneurs must be aware of the barriers to entry. These barriers are the reasons why entrepreneurs fail.

These most common reasons are:

  • Complacency and Non-motivation.
  • Lack of business know-how.
  • Lack of market familiarity.
  • Lack of start-up or seed capital.
  • Lack of a viable concept.
  • Lack of technical skill
  • Technological infrastructure problems.
  • Time pressures and distractions.

5. Planning a Strategy

There are several ways of trying to be an entrepreneur. Three prominent entrepreneurial strategies are identified among others.

These are:

  • Creative imitation strategy.
  • Entrepreneurial judo strategy.
  • Fustiest with the mutest strategy

6. Choosing an Organization

Entrepreneurs who are starting a business need to choose a legal form of organization.

The following form of ownership exists:

7. Deciding on the name of the Business

Names of businesses must be registered with respective agencies in control of the business in your community, state or country in which the business will be carried out.

8. Others are:

  • Applying to the agency (e.g., Corporate Affairs Commission) for Certificate of incorporation.
  • The holding of statutory General Meeting
  • The holding of the first board of Directors meeting
  • In the case of public limited companies obtaining a trading certificate.
  • Notifying the Commission of the address of the registered office of the Company and the particulars of the Directors and Secretary of the Company.
  • Preparing a business plan.
  • Preparing Memorandum and Article of Association and having the former stamped at the Stamp Duties Office.

We believe these processes if carefully followed will lead to a profitable business choice business setup.

 

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