CHAPTER 3

CHARACTERISTICS OF ENTREPRENEURS
AND ADVANTAGES OF BECOMING AN
ENTREPRENEUR
 
• Entrepreneurs are certainly not supermen. Neither do they perform
miracles. They are just human beings. But they are different from
many of us.
• They possess several positive characteristics which are responsible for
their business success. Most of us shy away from business. We prefer
to be employees doing jobs which do not require great risks like
bankruptcy. The optimism and positive thinking of entrepreneurs make
a great difference between success and failure. Positive thinking
produces favorable results. We get what we deeply think and believe.
 Entrepreneur Characteristics as Suggested by Fajardo (2008)

• There are several positive characteristics that an entrepreneur must

have in order to succeed. Fajardo (2008) says that entrepreneurs
should have:
Self-confidence,
Leadership and
Creativity.
• Entrepreneurs have many favorable interdependent characteristics
which make them successful and extra-ordinary persons. Usually,
goals are achievable if these are based on:
The abilities,
Interests and
Resources of Individuals.
Here are the most important characteristics of entrepreneurs:
1. Self-confidence,
2. Reasonable Risk-Taking,
3. Hardworking,
4. innovative,
5. Leadership,
6. Positive thinker, and
7. decision maker.
• Self-confidence. Fajardo(2007) says that entrepreneurs have strong faith in their
abilities. They believe they can be the best in their field. They do not accept things as
they are, because they believe they can do things better. We succeed when we think
success. Litton et al (1987) defines self-confidence as an attitude which allows
individuals to have positive yet realistic views of themselves and their situations. Self-
confident people trust their own abilities, have a general sense of control in their lives,
and believe that, within reason, they will be able to do what they wish, plan, and expect.
• Risk-taker. According to Fajardo (2007, P. 59) entrepreneurs avoid low-risk situations,
because there are no challenges. They shy away from high-risk situations, because these
may not be attainable.
• Hardworking. "All hard work brings a profit, but mere talk leads only to poverty"
(Proverbs 14:23). "Lazy hands make a man poor, but diligent hands bring wealth.
Sluggards do not plow in season; so at harvest time they look but find nothing"
(Proverbs 20:4). "The cravings of sluggards will be the death of them, because their
hands refuse to work" (Proverbs 21:25). The Bible tells us that it is through noble
qualities that wealth is obtained (hard work, diligence, sacrifice) and that failure to do
those things will result in poverty. That's not to say that all those who are poor or in
poverty are sluggards or refuse to work, but it does tell us that those kinds of
characteristics and flaws will most often lead to poverty.
• Innovative. As Fajardo (2007) confirms entrepreneurs are creative.
They do things in new and different ways. For example, they create
new products or services, new methods of production, new markets,
and new sources of raw materials. They love to explore the unknown,
and to blaze new paths of progress.
• Leadership. According to Fajardo (2007) entrepreneurs are leaders by
the very nature of their functions. They are people who are task-
oriented. They are effective planners, organizers and implementers.
And they are achievers. Here are the essential leadership qualities as
they are mentioned by Fajardo (2007): Selfless dedication, purpose
and vision courage, enthusiasm, integrity tact, and handwork.
• Positive Thinker. Entrepreneurs are positive thinkers. They think of success and
bright sides. Such success consciousness leads entrepreneurs to success. Success
begets success. An American psychologist, Dr. Charles Flory, mentioned by
Fajardo (2007), said that wealth does not always come to the most intelligent or
to the most ambitious individuals, but to those individuals who think money.
• There is nothing wrong with thinking and acquiring money and more money if it
is used properly. Those who have plenty on money can satisfy their legitimate
human needs, and be able to help others, especially the poor. There are many rich
entrepreneurs who are actively engaged in civic and humanitarian projects.
• Individuals who always think of failures and other negative thoughts get exactly
what they think. Their failure consciousness or defeatist attitude gives them
failure after failure.
• Decision-Maker. Entrepreneurs make decisions. They cannot avoid this. Being
creative or innovative, they always make decisions on how to improve their
products, how to create new markets, how to increase consumers satisfaction, or
how to maximize profits. The success of their business depends on their ability to
make the right decisions.
ADVANTAGES OF BECOMING AN ENTREPRENEUR

• Individuals who had been hooked into idea of employmentship may

have failed to notice the advantages of being an entrepreneur,
underestimated their potentials or that they have been exploited by
their employers knowingly or unknowingly. Being an entrepreneur has
the following inherent advantages:
1. Opportunity to gain control over one’s own destiny.
2. Opportunity to reach one’s full potential
3. Opportunity to benefit financially.
4. Opportunity to contribute to society and be recognized for one’s efforts.
• Opportunity to gain control over one’s own destiny. Managing the business you own
provides independence and opportunity to achieve one’s personal goals. The business, as an
extension of the owner, is often a means by which one can accomplish what is most important.
• Opportunity to reach one’s full potential. Many individuals get bored after years of
reporting daily at 8:00 am to 5:00 Pm routine and complained about being exploited and still
not reaching his or her full potentials. In managing a business you own, all of one’s skills are
likely to be challenged as never before and the limits of creativity as well as physical
endurance are put on the block. Managing one’s own business strengthens character and
challenges one’s abilities.
• Opportunity to benefit financially. The entrepreneurial landscape has tens of thousand of
success stories in money terms (as failures as well). In many cases, rags-to-riches examples
reflect the founder’s creativity, ingenuity, hard work, and dedication to business. In most
cases, the financial rewards are a result of a lifetime of smart business practices and risk
taking.
• Opportunity to contribute to society and be recognized for one’s efforts. As with financial
rewards, recognition for honest dealing as well as service to customers and community is a
major encouragement and inspiration among entrepreneurs. Being part of the business system
and knowing that one’s work has a direct bearing on long-term success of the economy is yet
another reward for the entrepreneur.
Drawbacks of being an entrepreneur

While there are advantages of becoming an entrepreneur, there are

drawbacks that hound entrepreneurs and also scare up many. Some of
the drawbacks or disadvantages of entrepreneurs are:
• Uncertainty of income
• Risk of losing the entire invested capital
• Long hours and hard work
• Lower quality of life until the business gets established
• Complete responsibility
• Uncertainty of income. Putting up and running a business provides no guarantee that any
entrepreneur will earn enough money to survive. Some small business rarely earns enough at
early stages to provide the entrepreneur with an adequate income or even loss all the hard-earned
money.
• Risk of losing the entire invested capital. Putting a new business exposes the entrepreneur to
all forms of risk including losing all the amounts you have worker for in life. This sad reality
which many entrepreneurs have experienced may have scared prospective entrepreneurs.
• Long hours and hard work. Establish and managing a self owned business entails tremendous
investments in energy and time to get the business of the ground. In start up phase in particular,
the entrepreneur frequently does everything alone from raising the funds, producing the goods,
and marketing the finished product.
• Lower quality of life until the business gets established. The long hours and hard work
needed to launch a company can take the toll on one’s family and social life. Business owners
find that their role as spouse or parent takes a back seat to their role as entrepreneurs.
• Complete responsibility. It’s to be the big boss, but many entrepreneurs find that they must
make decisions in issues about which they are not really knowledgeable. Where there is no one
to ask, the pressure can build up quickly. Their decision can lead to success or failure of the
business and have devastating effect. Entrepreneurs quickly realize that they are the business
Why do you go to Business?

Here are the reasons why people go to business:

1. Personal Satisfaction.
2. Family involvement.
3. Independence and Power.
4. Social activities.
5. Profit expectation.
Here are the reasons why people go to business:
• Personal Satisfaction. They enjoy challenges and risk-taking ventures. Their business success
gives them a sense of fulfillment.
• Family involvement. They feel it is their responsibility to continue the business of their parents,
especially if it is profitable.
• Independence and Power. They want to be the boss. They love to make their own decisions
and implement Enumerate and explain at least six characteristics of an entrepreneur that are
mentioned by Fajardo (2008). If they are employees, they are obliged to follow policies, report
on time, and finish their work according to schedule. Some people are not happy with such kind
of life. They prefer independence, power, fame and fortune.
• Social activities. There are people who are really born socializes. They love social activities.
Such extroverted personalities are good for business. They take advantage of their social
contacts to promote their business interests.
• Profit expectation. Some individuals are greatly motivated by profit or the chance to amass
wealth. Thus, they go to business. This is the best way for them to become rich. In our country,
most employees remain poor throughout their lives. On the other hand, those who are engaged
even in small enterprise become prosperous. This is the reason why the government has been
encouraging the people to be entrepreneurs instead of job seekers.
End