What is an Entrepreneur?
File C5-07January 2006www.extension.iastate.edu/agdm
Don Hofstrandco-director Ag Marketing Resource Center641-423-0844, dhof@iastate.edu
M
uch has been written about entrepre-neurs. Some of it portrays entrepreneursas almost mythical characters who ob-tain their skills from a unique genetic combination.However, research tells us that entrepreneurship can be learned. The information below provides somecharacteristics and skills you may want to acquire toimprove your entrepreneurial ability.In the context of a value-added business, an entre-
preneur is someone who identies a market opportu
-nity for agricultural commodities and products andcreates a business organization to pursue the oppor-tunity.To help you understand entrepreneurs, here are four characteristics of successful entrepreneurs.
Characteristics of Successful Entrepreneurs *
1. Successful entrepreneurs are able to identify potential business opportunities better than most people. They focus on opportunities – not prob-lems – and try to learn from failure.2. Successful entrepreneurs are action-oriented. Thiscomes from a sense of urgency. They have a highneed for achievement, which motivates them toturn their ideas into action.3. Successful entrepreneurs have a detailed knowl-edge of the key factors needed for success andhave the physical stamina needed to put their livesinto their work.4. Successful entrepreneurs seek outside help tosupplement their skills, knowledge and ability.Through their enthusiasm they are able to attractkey investors, partners, creditors and employees.
* Hofer and Sandberg
Risk Takers
It is commonly believed that entrepreneurs are risk-takers. However, the evidence suggests that theyare risk-averse just like you and me. Successfulentrepreneurs attempt to minimize their risk expo-sure whenever appropriate. They do this by care-fully assessing the risk/reward relationship of their actions. Risk is assumed only when the opportunity
for reward is sufciently large enough to warrant the
risk.
Sense of Limits
At a very early age, from our parents, friends andteachers, we begin developing a sense of
limits
.These are limits of what we can and cannot do andwhat we can and cannot accomplish. It is manifestin many ways such as “we’re not good enough, notsmart enough, or not capable enough.” This sense of limits is based on emotions rather than logic.Entrepreneurs either don’t have this sense of limits
or ght against it. All things are possible. Remov
-ing the sense of limits unleashes the creativity andinnovative juices that are needed for successfulentrepreneurship.
Locus of Control
Entrepreneurs tend to have a strong internal locus
of control. Locus of control is a concept dening
whether a person believes he/she is in control of his/her future or someone else is in control of it.For example, we all know people who believe theyhave no control over their lives. They believe thatwhat happens to them is dictated by outside forces.People who feel they are victims of outside forceshave an external locus of control – “it’s not my faultthis happened to me.” By contrast, entrepreneurshave a very strong internal locus of control. They believe their future is determined by the choices theymake.
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