Personal Entrepreneurial Characteristics

Learning Objectives
At the end of the lesson, students understand the concept of “Personal Entrepreneurial Characteristics”
and will have made a self-assessment of their personal traits and entrepreneurial
characteristics.
Self assessment exercise enables learners to assess their potential for becoming future
entrepreneurs. Self-assessment test will help the learners to better understand their personal
characteristics in relation to entrepreneurial characteristics. Based on their responses,
learners will be able to identify specific characteristics which they may need to improve or
develop if they want to become entrepreneurs in the future.

Key Competencies

 Understanding the importance of entrepreneurial characteristics

 Self assessment of students’ entrepreneurial profile

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 Personal Entrepreneurial Characteristics
Although the term entrepreneur is generally used to describe people who are self
employed, being an entrepreneur is more than a job or a career, it is a life style.
In a small business, the entrepreneur him/herself is crucial for the success of the
business. The success of the business highly depends on the business owner. (S)he
must be flexible and imaginative, able to plan, take risks, make decisions and
implement action to achieve the goals. (S)he should be willing to work under conditions
of conflict, change and uncertainty.
Before going into business, it is important to analyze your own strengths and
weaknesses so that you can use your strengths and compensate your weaknesses.
An entrepreneur is different from anybody else because he/she has certain factors
which are called personality traits or personal qualities.
He/she was not born with those factors but he/she either learned or acquired from other
people.
The following are the personality traits or qualities of an entrepreneur:
a) Risk taking:
An entrepreneur enjoys challenge but does not gamble. He/she avoids low and high
risk situations. Therefore he/she is a moderate risk taker.
b) Self confident:
He/she has clear thoughts and relevant knowledge to achieve his goals.

c) Optimistic:
An entrepreneur shows positive attitudes towards opportunities he/she sees in his/her
environment.
d) High need for achievement:
An entrepreneur has a desire for success in competition. He/she tries to finish
challenging tasks and set standards of excellence. He/she is also aware of his/her own
strengths and weaknesses.
e) Need for independence:
Need for independence is the characteristic that drives a person to start his/her own
business. Entrepreneurs take full responsibility of their own actions. An entrepreneur
wants to be his/her own boss.
f) Need for power:
An entrepreneur likes to influence others and to lead them to implement his/her ideas.
g) Creative:
Entrepreneurs are willing to adopt change and adapt to changing business situations.
They try to look out for new ideas and knowledge for improving their products and
processes. They are also information seekers.
h) Foresight/Visioner:
An entrepreneur has great vision and is able to find opportunities in the environment
which other people are unable to see. An entrepreneur is future oriented, he/she keeps
him/herself prepared for problems which his/her business is likely to face.
i) Managerial abilities:
An entrepreneur is a leader. (S)he runs his/her people in a way that makes them willing
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 and motivated to do things for him/her. While (s)he definitely controls the business
(s)he is able to delegate some functions to his/her workers so that (s)he has more time
for creative activities such as improving the products, look for new markets etc.
j) Persistent and hard working:
An entrepreneur pursues his/her goals to the best of his/her ability. His/her involvement
is total. (S)he works very hard to achieve his/her goals. (S)he can not stand unfinished
tasks.
k) Personal responsibility for actions:
An entrepreneur believes (s)he is personally responsible for the way his/her life turns
out to be. Success to him/her is a product of personal effort, not luck or fate.
(S)he leads and makes things happen while others watch or follow. (S)he originates
ideas and action and takes the initiative.
l) Ability to persuade and motivate:
An entrepreneur can talk in a way that motivates other people. All the people (s)he gets
in contact with do what they can do for min/her because they are willing to do it. (S)he
can influence and inspire people.

In another source, it is mentioned that a successful entrepreneur should have 3 (three)

major competencies: Knowledge, Skills, and Traits. The following lists provide examples of
the competencies required for setting up and managing a successful small business:

Knowledge
Possessing information on, or familiarity with:
• a business opportunity • the market
• customers • competitors
• production processes • technical matters
• business management • sources of assistance

Skills
May be of a technical or managerial nature. They relate to abilities to perform
tasks or functions in areas such as:
Technical Managerial
• Engineering • Marketing (including selling)
• Computing • Financial management
• Carpentry • Organization
• Mechanics • Planning
• Catering • Leadership

Traits
Personal characteristics of successful entrepreneurs:
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• Takes initiative
• Is persistent
• Is concerned for high quality
• Is oriented to efficiency
• Solves problems in original ways
• Takes calculated risks
• Is persuasive
• These are briefly described below.
It is more likely than that a person who does not have all 3 competencies in his/her business
(Knowledge, Skills, and Traits)
successfully.
• Sees and acts on opportunities
• Personally seeks information
• Is committed to fulfilling contracts
• Plans systematically
• Demonstrates self-confidence
• Is assertive
• Uses influential strategies
will encounter difficulties in operating the venture

Post-reading Question:
In your opinion, which three personality traits are the most important traits necessary for
becoming a successful entrepreneur? What is your reason(s)?

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 Personal Traits: Self Assessment Exercise

From the following 32 pairs of sentences, choose either A or B depending on

which statement most reflects your personal views. Kindly mark your response (A
or B) for each pair of sentences on a separate sheet of paper.

1. A) Work has to be done.

B) I enjoy the company of good and deserving friends so that I can get their
opinion on my work.

2. A) I feel happier when my responsibilities increase.

B) I will get settled at the right place, then let anything happen.

3. A) I shall never do anything that would possibly give me a loss.

B) The understanding of how to earn money is the first step in business.

4. A) I shall not venture into anything, however good, if its failure would lead to my
being ridiculed.
B) In addition to my work, I shall keep other people’s well-being in mind.

5. A) I shall strive to progress in any business that I start.

B) I shall undertake only those actions which would make me happy and secure.

6. A) People will ridicule me if I fail.

B) I would need the advice of others, though I have confidence in myself.

7. A) I shall find the solution to difficulties as they come.

B) If I fail in the new venture, I shall continue my present work.

8. A) I go with a good idea if I feel it is correct.

B) I can do better than what I am doing at present

9. A) While working, I shall keep in mind that personal relationships should not be strained.
B) Whatever may happen, I shall have a chance to learn from experience.

10. A) Even if I fail in my effort, I shall learn something.

B) I like to have a nice and comfortable life.

11. A) I shall invest only in races/lottery and some day luck will be in my favour.
B) If I fail in my work, I shall try to find out the reason.

12. A) I will consider my employees as friends and treat all of them equally.
B) If I get better work, then I shall leave my present work.

13. A) I shall think carefully before I implement a new idea.

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 B) I would not mind if my work suffered for the betterment of others.

14. A) I will be able to develop a business only if I have capital.

B) I wish that I could make important decisions on my own.

15. A) I will not act indifferently when somebody’s goodwill and trust is betrayed.
B) If things do not materialize according to my wishes, I shall find another alternative.

16. A) I shall be making mistakes.

B) I very much like to talk with friends.

17. A) I wish that my money could be safely kept in the bank.

B) I have full trust in my work and I am aware of its pros and cons.

18. A) I wish I could have lots of money so that I could live comfortably.
B) I wish to get somebody’s help in making my decisions.

19. A) One should first take care of one’s own relatives and the people one knows.
B) I enjoy solving difficult problems.

20. A) Even if I have to suffer, I will not behave in a way that makes others feel bad.
B) Money is a must for the advancement of business.

21. A) I wish that my business could flourish quickly so that I would not have financial
problems.
B) I shall be careful to see that I am not blamed for being unsuccessful.

22. A) I should be allowed to act independently according to my own thoughts.

B) My happiness lies only in collecting large amounts of money for my future.

23. A) If I fail, it will be mainly due to the faults of somebody else.

B) I will only do things which I feel are good and satisfactory.

24. A) Before taking up work, I will be careful to see that it will not harm my
reputation in society.
B) I wish that, like others, I could also buy costly items.

25. A) I wish that I could have a comfortable house to live in.

B) I will learn from my failures.

26. A) Before doing any work I think about its long-term effects.
B) I wish everything could happen according to my instructions.

27. A) Money brings all comforts, so my main aim is to make money.

B) I like to work where all my friends meet frequently.

28. A) I know what I am doing and am not afraid of the criticism of others.
B) If I fail, I will feel very bad about myself.

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29. A) I am aware of frequently occurring difficulties. I should get some good new work.

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 B) Before starting new work, I will take the advice of friends.

30. A) All my experiences will motivate me.

B) I wish that I could have a lot of money.

31. A) I like to spend my days leisurely, successfully and without any worries.
B) If I fail, I will try to determine why it happened.

32. A) I do not like others interfering in what I do.

B) I will do anything to earn money.

Now please check how to score your answers with the teacher’s note.