Blog

A true entrepreneur is referred to as a pioneer who organizes and coordinates all factors of production for a purposeful goal. An entrepreneur is capable of performing more than the average capacity tasks being performed by an employee or non-entrepreneur.

Not all entrepreneurs are endowed with such talent. Contemporary entrepreneurs also have the ability to detect and evaluate new opportunities emerging in the business environment and accordingly make the required adjustments in the economic system to achieve the business objectives.

Characteristics of Entrepreneur

A new industrial enterprise is conceived, considerable initiative is displayed and grit and determination are applied in bringing a project to fruition by a proficient entrepreneur. Therefore, a successful entrepreneur must possess the following traits and characteristics of entrepreneurs:

1. Clear Objectives
2. Mental Ability
3. Business Secrecy
4. Human Relations Ability
5. Technical Knowledge
6. Effective Communication
7. Decision Making
8. Energy
9. Risk-Bearing
10. Vision and Passion
11. Innovative
12. Leader
13. Persistent
14. Ethical

Clear Objectives

It implies that an entrepreneur should have a clear objective that corresponds exactly to the nature of the business, the goods to be produced and the ancillary activities to be undertaken. A successful entrepreneur should have the objective to establish the product in the market, make profits, and also provide social service.

Mental Ability

It refers to the intelligence and creative thinking of an entrepreneur. An entrepreneur must be intelligent and must have an analytical mind so as to analyze various problems and situations in order to deal with them.

An entrepreneur should be able enough to forecast changes and make decisions after studying various situations.

Business Secrecy

An entrepreneur should have the ability to guard business secrets. Entrepreneurs should consider confidentiality of business secrets as a secret matter and important things should never be disclosed to trade competitors. For this, the entrepreneur should hire subordinates who are trustworthy and reliable.

Human Relations Ability

The most significant entrepreneurial traits that contribute to the success of entrepreneurs are emotional stability, personal relations, consideration, and tactfulness. In other words, the success and failure of an entrepreneur are also related to their ability to maintain relations with stakeholders and consumers

Entrepreneurs should have good relations with their customers in order to gain their continued patronage and win their confidence in the products offered to them. They should also maintain good relations with their employees and motivate them to attain higher levels of efficiency.

Entrepreneurs who believe in maintaining good relations (with employees, suppliers, customers, creditors, etc.) are more successful in their business endeavors as compared to those who do not believe in practicing good relations.

Technical Knowledge

Business endeavors require updated knowledge of technology. Therefore, an entrepreneur should have a reasonable level of technical knowledge. This is one trait that entrepreneurs can acquire if they learn and keep practicing.

Effective Communication

Good communication means that entrepreneurs should have the ability to put their viewpoints across effectively and with clarity. A successful entrepreneur should have the “gift of the gab”. The communication should be to the point, crisp and convincing. Communication ability is the secret to the success of most entrepreneurs.

Decision Making

Anyone who runs a business is required to make many decisions. Therefore, an entrepreneur must have the capacity to analyze the various aspects of the business before arriving at a decision.

Energy

Entrepreneurs should be energetic enough to work for long hours. A successful business requires time, continuous working hours, and passion to achieve objectives. The constant effort of entrepreneurs takes business to heights.

Risk-Bearing

A simple and most significant rule of a business is that ‘No-risk, no business’ or ‘no risk, no gains’. Every business has an element of risk, that’s why an entrepreneur should be prepared to accept failure in its proper perspective and consider failure as a challenge and opportunity.

Vision and Passion

It implies that entrepreneurs must have clarity in their business vision. They should also show enough aptitude by framing long-term and short-term goals and business objectives.

The other very significant trait that is required in entrepreneurs is that they should be passionate about their work. Hard work and long hours working show the passion of an entrepreneur. Such passion definitely translates the hard work of entrepreneurs into success.

Innovative

An entrepreneur should be able to look for the opportunity in the market and capitalize on it. Entrepreneurs are the ones who introduce new products and services in the market and try to fulfill customer needs. The innovation also includes a production process, a new marketing strategy, innovative advertising, etc.

Leader

All good entrepreneurs should be good leaders and they must have the ability to motivate and lead their employees to success. They also have the firmness, knowledge, and skill to pull their businesses from a rigid corner like good and successful leaders.

Persistent

A good entrepreneur should always be determined by nature. A business is never a sudden success. It requires immense hard work and also a little bit of luck. Despite all this, persistent entrepreneurs make their own luck.

They can create opportunities if they are not presented with an opportunity. Hence, a persistent entrepreneur who works tirelessly always has a greater chance of success.

Ethical

The success of any business in the long term requires ethics and integrity as vital cornerstones. Compromised morals cannot help in running a sustainable business. Entrepreneurs should show reliability and authenticity in business. Integrity and law should be considered as the most significant elements of the business.

Traits of Entrepreneur

In addition to the above basic traits, Robert D. Hisrich has identified a few more entrepreneurial traits. According to him, an entrepreneur must have adequate commitment, motivation, and skill to start and build a business.

Entrepreneurs should determine the additional skills needed to succeed as an entrepreneur. Hisrich feels that an entrepreneur must possess the following traits:

1. Motivation
2. Self-Confidence
3. Long-Term Involvement
4. High Energy Level
5. Trouble-Shooter
6. Initiative
7. Goal-Setter

Motivation

An entrepreneur should bring together an efficient team, keep the team motivated, and provide an environment for individual growth and career development.

Self-Confidence

Entrepreneurs should have the mental capacity to face any situation. They must have the talent to inspire others. They must have confidence in themselves and the determination to attain their goals.

Long-Term Involvement

Entrepreneurs should be committed to long-term projects that need continuous and consistent involvement.

High Energy Level

An entrepreneur is successful only when the ability to work long hours for sustained periods is shown in working.

Trouble-Shooter

An entrepreneur should have the trait of recognizing troubles that may arise in business. Entrepreneurs must have the ability to make out where a problem is and suggest instant solutions.

Initiative

An entrepreneur should have the ability to take initiative, accept personal responsibility for actions, and above all make good use of resources. This trait ultimately gives the entrepreneur the courage to take the risk and learn from failures.

Goal-Setter

An entrepreneur should have the ability to set challenging, but realistic goals. This personal trait ultimately can go a long way in the all-round progress of a nation.

FAQs Section