Traits of Successful Entrepreneurs

Author(s): Arunachal Khosla and Puneet Gupta

Source: The Journal of Private Equity , SUMMER 2017, Vol. 20, No. 3 (SUMMER 2017),
pp. 12-15
Published by: Euromoney Institutional Investor PLC

Stable URL: https://www.jstor.org/stable/44397516

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 Traits of Successful Entrepreneurs
Arunachal Khosla and Puneet Gupta

Arunachal Khosla are trying to learn and acquire the various

is an assistant professor This phrase has never been as apt as it is traits and skil s of these entrepreneurs to make
at the University Institute
in the present time. The world around us their organizations adaptive, responsive, and
of Applied Management
Sciences at Panjab
It in is This is changiis changi
ng theng saiandd doiphraseng sopresent
at a pacethatneverand has change time. never doing The is the been so world at only as a pace apt around constant. as never it us is successful. This is primarily because as orga-
felt or seen before. The present era of change
University in Chandigarh, nizations become large in size and multiple
India. is characterized by high levels of uncertainty layers are created, they become less respon-
arunachal_khosla@yahoo.com and complexity. The business environment sive and more rigid, resulting in stagnation,
has become globally interrelated and con- delayed decision making, and decline.
Puneet Gupta
nected through technology. The ramifications Deciphering the traits of successful
is a managing director
at Kentrus Capital of technology lead to faster communication. entrepreneurs is essential so that these skil s
(Private Equity) in Changes and events occurring in one part of can be understood, developed, and promoted
New Delhi, India. the world have global implications. On the one for the success of the organizations, irrespec-
pgupta@kentrus.com
hand, these changes and events have resulted tive of their size. Knowing and understanding
in bigger challenges for the business world. these traits keeps an organization young and
But on the other hand, the result has been a flexible as well as responsive to the dynamics
world full of bigger and better opportunities. of the business environment.

This world of uncertainty and complexity has This article is an attempt to list and
led to the emergence of a new generation of elaborate on the most essential traits of suc-
entrepreneurs who are immensely driven and cessful entrepreneurs that are predictive of
have contributed exhaustively to the creation entrepreneurial and organizational success.
of new ventures and the generation of wealth. It is beyond doubt true that entrepreneurs
As change accelerates, a large number think and act differently. The way the entre-
of startups and small firms are being built all preneurs manage their organization and its
over the world. These small firms and startups people is very different from how it is done
are increasingly responsive and adaptable to in most large organizations.
changes in the business environment, mainly The five major traits of successful entre-
because of their small size, which allows them preneurs that are essential contributors to
the flexibility to respond to market turbulence the success of their business ventures are the
and disruptions. These small firms and new following:
ventures are created and run by entrepreneurs,
and thus entrepreneurs have become the cre- 1. Comfort with uncertainty
ators of wealth in developing and developed 2. Laser-like focus and execution
nations. A large number of big corporations 3. Flexibility in response to market needs

12 Traits of Successful Entrepreneurs Summer 2017

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 4. Big picture focus coupled with a detail orientation with the entrepreneur's trait of having laser-like focu
5. People management with the right balance and execution. It is the entrepreneur's task to wor
of delegation toward the success of the business. He must focus on
ensuring the achievement of goals and the satisfaction
COMFORT WITH UNCERTAINTY of customers as well as employees. Staying focused
helps entrepreneurs explore, avail, and harness market
opportunities,
At the top of the list of traits that characterize an executing them to the fullest rather than
switchingand
entrepreneur is the ability to cope with uncertainty from one option to the other. This laser-like
strike comfort with ambiguity. Entrepreneurs have
focus been
makes the entrepreneur put all effort, energy, and
found to be very low on uncertainty avoidance, resources
indicatinginto the well-considered market opportunity
a high level of tolerance of uncertain situations and
and in accomplishing the goals that have been developed
events.
While most seek refuge in clearly structured for the firm.
situations,
Laser-like focus is an essential trait for entrepre-
the entrepreneur's mind is fairly comfortable with uncer-
tainty in the business environment. This tolerance of it helps them keep their firms competitive
neurs because
in a dynamic environment. It makes the task of man-
uncertainty also contributes to the risk-taking propensity
aging
of the entrepreneur. High tolerance of ambiguity the business effective and results driven. Focused
increases
the entrepreneur's risk appetite. This in turnentrepreneurs
helps him are not disturbed by the risks and uncer-
tainties
to explore wider avenues and bigger opportunities in at
theand around work. It also helps them take
market and make crucial decisions with more ease. charge and keep their minds from wandering, staying
Whereas risk is an essential part of business deci- immersed in the critical tasks that ultimately lead to
sions, tolerance of ambiguity is nowhere indicative of goal attainment.
entrepreneurs indulging in mindless risk taking and ill- Whereas focus helps an entrepreneur follow his
considered business decision making. Rather, tolerance to goals with persistence and dedication, lack of proper
uncertainty helps them take calculated and well-thought- execution may limit the firm's performance. Effective
out risks and decisions, which not only gives them a execution of tasks ensures that persistence and dedication
wider playing field but also doesn't make the organiza- are channeled in the right direction. This trait of execu-
tion overly vulnerable. Successful entrepreneurs realize tion will result in the conversion of a business opportu-
that uncertainty is not always chaotic and bad; rather, it nity into a successful business venture. Proper execution
is a characteristic of entrepreneurship. The success of an can be the determining factor in the success or failure
entrepreneur and his firm largely depends on his ability to of a business. This is because execution will deal with
tide over uncertain times and circumstances. It is impor-pertinent questions related to how, when, where, and
by whom various tasks need to be performed in the
tant that the entrepreneur takes chances irrespective of the
uncertainty because the probability of success is higher organization.
on the other side. Entrepreneurs have a fair idea that the
markets they operate in will witness high uncertainty and FLEXIBILITY IN RESPONSE
are most of the times uncontrollable. So, the best option TO MARKET NEEDS
they have is to be cautious of how they respond to uncer-
tainty. In this response to uncertainty, entrepreneurs risk Another of the key traits of a successful entrepre
their possessions, their reputation, their resources, their neur is flexibility. An entrepreneur should be flexib
settled lives, and their fixed incomes to see the success enough to introduce changes as and when the marke
of their entrepreneurial ventures. Thus, we can say that requires him to do so. To remain competitive and acqu
entrepreneurs are willing to live in uncertainty and take and retain market leadership, the entrepreneur needs
bigger risks to drive their organizations to success. be prepared to accept and introduce changes in peop
product, technology, processes, and so on. Flexibility
LASER-LIKE FOCUS AND EXECUTION essential to respond to market needs through innovati
and creativity.
Where uncertainty characterizes an entrepreneur,
Many factors influence the change in market
the risks associated with ambiguity can be moderated
conditions in which the firm operates. This change c

Summer 2017 The Journal of Private Equity 13

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be in the form of new competitors, new products, or
product innovations, changes in economic conditions,
changes in government policies, inclusion or removal
of certain legal provisions, and so on. Flexibility helps
the entrepreneur gather new insights and information
about these changes in the market and their likely impact
on business. Flexibility lets an entrepreneur assimilate
and use this information about changing market needs
and conditions and respond to them more appropriately,
thus minimizing the impact of change and at the same
time catering to the needs of the new market. This flex-
ibility gives a clear advantage to entrepreneurial firms
and startups over large organizations. Relative to large
companies, entrepreneurial firms are leaner and flatter,
making them much more responsive to changes and
giving them speed and strength in decision making.
This trait also helps the entrepreneur anticipate change
and manage and mold the strategy to suit the market
needs. Furthermore, flexibility gives the choice to
entrepreneurs to manage the size of their business with
respect to their products, projects, and people and to
suit it to the requirements of the market. In the current
context, where customers seek maximum value for their
money and want new products, new features, and after-
sales support, flexibility helps the entrepreneur deliver
and outperform the competition.
BIG PICTURE FOCUS COUPLED
WITH A DETAIL ORIENTATION
information helps the entrepreneur understand the
picture in the right perspective.
If the entrepreneur has constant awareness of t
big picture, working toward details becomes m
rewarding for him and his business. Having the
picture in mind will help the entrepreneur to be mo
vigilant about the details that take the business to high
levels of success and performance.
A detail orientation is the ability of the entrepreneu
to be able to pay great attention to details. He can clear
understand the cause and effect relationship betwe
various events that occur and situations that emerg
Detail orientation helps him to study the reasons ass
ated with changes in the market and predict the imp
these changes can have on the business. It helps buil
clear understanding of the details of the business and th
remain more aware and informed. This increased aware-
ness leads to higher-quality decisions being made by the
entrepreneur in response to organizational and market
needs, which further results in higher levels of precision
with which the tasks are performed in the organiza-
tion, leading to improved efficiency and performance
of the entrepreneur as well as the organization. Detail-
oriented entrepreneurs contribute toward creating more
successful businesses because they have higher-order
analytical and problem-solving skills. Thus, detail orien-
tation makes the entrepreneur anticipate the challenges
and be more proactive vis-à-vis market needs and staying
ahead of competition.

Thinking big is the key to creating and sustaining

PEOPLE MANAGEMENT WITH THE RIGHT
a successful business. Looking at the big picture helps an
BALANCE OF DELEGATION
entrepreneur view any situation, event, and market in its
Jim Collins
entirety rather than in parts and pieces. On a day-to-day in his book Good to Great
basis, one may be too engrossed in the attention(HarperBusiness,
to detail, 2001) suggested that it is important
to decide
but successful entrepreneurs have the capability on the people who will board the bus with you
to step
back from the details. They can step back from before you actually board the bus. This highlights the
the little
pieces of progress toward their projects andimportance
goals andof having the right people when the entre-
preneur
look from a broader perspective to ensure that all takes on his journey of creating and building
of this
is taking the business in the right direction.business. Once the entrepreneur identifies the right
Details are
a key aspect of the business, but they may lose people, he constantly works toward managing them
their rel-
effectively.
evance if the entrepreneur loses sight of the larger goals Successful entrepreneurs understand and
believe
he has set out for his business. Thinking big is an that people are the most valuable resource for any
impor-
organization,
tant trait of the entrepreneur because it helps ensure the and through effective people management,
the company
focus on the key functions of the business rather than can be efficiently driven forward, toward
its objectives.
getting lost in the processes and procedures required to They build a right blend between strate-
gies that aim at improving systems and structures and
achieve these goals. A constant vigil on the direction
improving the performance of managers. Entrepreneurs
and growth of the business and analysis of supporting

14 Traits of Successful Entrepreneurs Summer 2017

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constantly work toward building and improving their delegating appropriate and important tasks and decisions
people management skills. People management skills to the team members. This delegation of work to trusted
allow an entrepreneur to build teams that are highly team members, on the one hand, gives time for entre-
engaged at their workplaces. This engagement results preneurs to focus on the big picture. On the other hand,
in an increased push toward organizational success. it creates a sense of worthiness and trust among other
High levels of engagement at work ensure that people members of the organization. They feel valued and
are more driven and will be more willing to put in part of the organization and experience higher levels of
high levels of effort to complete the tasks and achieve responsibility and accountability toward their work, thus
organizational goals. With their effective people man- effectively contributing to business outcomes.
agement skills, entrepreneurs are consistently able to We can say that delegation can be the most impor-
motivate the workforce to perform tasks and accom- tant tool of an entrepreneur for effective management.
plish outcomes. Successful entrepreneurs master the skill of delegation,
Entrepreneurs make their team members feel leading to a huge positive influence on the organization.
valued by investing in their growth and development. They ensure that the tasks that are entrusted to team
They share information, constantly encourage them, and members are carefully selected before being delegated.
provide rewarding career options and excellent training The entrepreneur ensures that the team members to
opportunities. These incentives increase the level of whom a task is given have the required skill to perform
ownership that employees feel toward the organization that task and are also made well aware of the reasons
and make them more enthusiastic and driven toward associated with delegation to that person. Deadlines are
performance and goals. communicated along with the critical nature of the task
Delegation of work is an important aspect of that is delegated.
people management. With the effort and energy that And finally, successful entrepreneurs also ensure
an entrepreneur puts into building his business, therethat when the delegated work is successfully completed,
is a high probability that he might want to retain thethey reward and recognize the good work done and also
power to make all important decisions and perform keythe effort that has been put in by the team members.
tasks himself. But as the business grows, it becomes more
and more difficult for the entrepreneur to be in chargeTo order reprints of this article, please contact Dewey Palmieri
of everything. Effective entrepreneurs master the art of at dpalmieri@iijournals.com or 212-224-3675.

Summer 2017 The Journal of Private Equity 15

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