Human Resource Factors in Entrepreneur
These are the inherited or acquired traits. Research reveals the following human resources factors that influence entrepreneurial success:
- Risk-Taking Willingness
- Influence Motivation
- Personal Efficacy
- Quick Decision Making
It is the urge to improve oneself in relation to a goal. It includes both personal achievement and social achievement. It is the basis of entrepreneurship as entrepreneurs with high needs achieve success better.
It refers to seeking challenges in one’s activity. Two persons may view the same venture as involving different degrees of risk. If both of them go for the same venture, it means that the person perceiving a greater amount of risk in the venture has a higher risk-taking willingness.
It has been defined as the desire to influence other people and the surrounding environment. In order to succeed in dealing with these diverse agencies and forces, the entrepreneur would need sufficient motivation to both influence them and control the means to achieve the end.
It has been defined as the general sense of adequacy in a person. It is the tendency of an individual to accept success or failure which is within his control. Personal efficacy is an important factor contributing to the entrepreneurial behavior of a person. It represents the potential effectiveness present at the inner level.
The roots of the efficiency of an individual lie in his perceptions and beliefs about himself. These beliefs may be the result of an individual’s self-concept and perception of his own strength, Personal efficacy can be measured by ‘Rotter’s locus of control’ defined as the tendency in the individual to attribute success or failure to external factors.
A person scoring high on internal control believes in his capacity to control and shape the environment. On the other hand, an individual having low personal efficacy believes that things are not under his control and occur due to fate and such persons are.
These are goal statements concerning future levels of achievement. These can be regarded first as an individual’s concepts of his future prospects and secondly as a form of self-motivation. Aspirations are related to the education of children, income, and material possessions.
A person with low aspirations is not likely to develop into an entrepreneur. But unrealistic aspiration levels would not lead to achievement, because they are bound to fail in their endeavor.
Therefore, it would be more meaningful to study an individual’s achievement motivation in relation to his aspiration. In general, individuals with lower socio-economic backgrounds have a higher discrepancy between their aspirations and achievement. This suggests that low socio-economic groups are unrealistic in their aspiration levels.
Quick Decision Making
An entrepreneur should be able to make quick decisions according to the changes in the business Environment. A number of other human resource variables such as independence, leadership, self-confidence, initiative, receptivity to feed, etc. are also important for entrepreneurship.
Thus, persons possessing a minimum level of entrepreneurial traits like the urge to achieve, risk-taking, positive self-concepts, initiative and independence, problem-solving, hope about the future, urge for goal setting, and interest in environment scanning should be selected for an EDP.