Entrepreneurial Traits

Pankaj Bharti
Schumpeter’s Entrepreneur
 The instrument of change, the agent who introduces
innovations:
 new products,
 new ways of manufacturing,
 new sales techniques,
 new types of equipment

 Creative disruption involves technologies or

innovations that change the world...........
Personality Traits
Strong need for achievement (Nach) McCelland 1965
 high achievers
 spend time considering how to do a job better or how to
accomplish something important to them.
 They actively seek out opportunities to take responsibility and
 They welcome feedback on their actions

Risk taking propensity

 Medium, calculated risk takers
 Avoid high and low risk situations
 Ability to evaluate risk
Personality Traits
 Locus of control Rotter 1966
 desire to be in control of their own fate
 High internal LOC
 the achievement of a goal is dependent on their own
behaviour
 Tolerance of ambiguity Schere 1982
 have an open mind,
 respond quickly to change,
 need to know only the key facts
 have a flexible attitude
Personality Traits
 Desire for autonomy Birley and Westhead 1993
 high need for independence
 Smith 1967- fear of external control
 Determination
 Initiative
 Creativity
 Self confidence
 Trust
Personality Traits Chell, Haworth and Brearley
(1994) & Chell 2008

 Opportunity recognition
 Entrepreneurial self-efficacy (ESE)
 Social competence
 Intuitive
 Innovative
 Imaginative
 Proactive
 Agents of change
The Personality Approach
Observations are that:
 Some personality traits can be acquired by people
 Some traits e.g. high energy, emotional stability are
inborn
 Most entrepreneurs do not possess all of the ideal
personality traits
 The validity and reliability of personality scales are
questioned
The Personality Approach
 Entrepreneurs are not homogenous
 Gender, age, social class, nationality and education
make a difference
 Environment and cultural influences must also be
taken into account
 Entrepreneurial decision making is based on the
interaction of many factors (motivations, stage in life
cycle, personal economic context)
Desirable and Acquirable Attitudes
Timmons (2008)
Commitment and determination
 Stubbornness and determination

 Able to commit quickly

 Disciplined

 Persistent in solving problems

 Willing to undertake personal sacrifice

Leadership 
 Self starter

 Team builder and hero

 Share the wealth

 Integrity and reliability

 Superior learner and teacher

Desirable and Acquirable Attitudes
Timmons (2008)

 Opportunity obsession
 Have intimate knowledge of customers needs
 Market driven
 Obsessed with value creation and enhancement
 Tolerance of risk, ambiguity and uncertainty
 Calculated risk taker
 Risk minimiser/ sharer
 Tolerant of uncertainty
 Tolerant of stress
 Able to resolve problems and integrate solutions
Desirable and Acquirable Attitudes
Timmons (2008)
 Creativity, self-reliance & ability to adapt
 Creative and lateral thinker
 Ability to adapt and change; creative problem solver
 Ability to learn quickly
 Rely on own judgement & lack of fear of failure
 Motivation to excel
 Goal and results orientation
 Low need for status and power
 Aware of weaknesses and strengths
 Have perspective and a sense of humour
Entrepreneurs
 Experience success and failure
 Feel good about themselves, their work and the potential rewards
 Enjoy a challenge
 Take pride in their work
 Find their work invigorating/energising/ meaningful
 Think the unlikely, do the unreasonable
Cognitive abilities, Westhead, Wright & McElwee
2011

 Information acquisition and dissemination

 Intelligence, ability with information

 Sense making

 Unlearning

 Implementation and improvisation, autonomous

behaviour, experimentation, reflection and action
Conclusions
 The identification and exploitation of opportunities is a
complex and interactive process
 The entrepreneur is just one of many contributing
factors
 They can however be the critical catalyst that spots the
opportunity and begins the process of firm creation
Entrepreneurial skills
 Communication skills, especially persuasion;
 Creativity skills;
 Critical thinking and assessment skills;
 Leadership skills;
 Negotiation skills;
 Problem-solving skills;
 Social networking skills; and
 Time-management skills.