Attributes and Qualities of Successful Entrepreneurs

ATTRIBUTES, QUALITIES,
AND CHARACTERISTICS
OF AN ENTREPRENEUR
Attributes, Qualities, and Characteristics
of an Entrepreneur
 The Entrepreneur
 According to Schumpeter (1950), an
entrepreneur is a person who is willing and

able to convert a new idea or invention into a
successful innovation.
 Schumpeter is also famous for
the phrase “creative destruction”

of an Entrepreneur
 The Entrepreneur
 Webster’s – someone who runs a business at
his or her own financial risk

 An entrepreneur is a person who undertakes
the creation of an enterprise or business that

has the chance of profit (or success).
of an Entrepreneur
 Who is the Entrepreneur?
• Somebody who has IDEAS and makes these
ideas happen or come to life.
• Must have some BUSINESS SKILLS
(ideation, creativity & innovation)
• Somebody who ASSUMES RISKS
• Desires to MAKE PROFIT
of an Entrepreneur
 The Role of an Entrepreneur:
1. Entrepreneurs are innovators
 They observe an opportunity.
 They create new goods and services.
 They improve existing products.

of an Entrepreneur
2. Entrepreneurs provide choice
 They add goods and services to the marketplace.
 They offer variety.
 They design different approaches to familiar
problems.
of an Entrepreneur
3. Entrepreneurs provide jobs
 They hire workers for their businesses.
 They consume resources, thus providing jobs
in
the industries that supply those resources.
of an Entrepreneur
4. Entrepreneurs help the economy grow.
Why Become an Entrepreneur?
1-9
The 3 primary reasons that people become

entrepreneurs and start their own firms
Desire to be their own boss
Desire to pursue their

own ideas
Financial rewards
Characteristics of Successful Entrepreneurs
1 of 3
1-10
Four Primary Characteristics

2 of 3
1-11
 Passion for the Business

 The number one characteristic shared by successful
entrepreneurs is a passion for the business.
 This passion typically stems from the entrepreneur’s belief
that the business will positively influence people’s lives.
 Product/Customer Focus
 A second defining characteristic of successful entrepreneurs
is a product/customer focus.
 An entrepreneur’s keen focus on products and customers
typically stems from the fact that most entrepreneurs are, at
heart, craftspeople.
3 of 3
1-12
 Tenacity Despite Failure

 Because entrepreneurs are typically trying something new,
the failure rate is naturally high.
 A defining characteristic for successful entrepreneurs’ is
their ability to persevere through setbacks and failures.
 Execution Intelligence
 The ability to fashion a solid business idea into a viable
business is a key characteristic of successful entrepreneurs.
of an Entrepreneur
 The Qualities of an Entrepreneur:

1. Inner Drive to Succeed
 Entrepreneurs are driven to succeed and expand their
business.
 They see the bigger picture and are often very ambitious.
 Entrepreneurs set massive goals for themselves and stay

committed to achieving them regardless of the obstacles
that get in the way.
of an Entrepreneur
2. Strong Belief in themselves
 Successful entrepreneurs have a healthy opinion of themselves
and often have a strong and assertive personality.
 They are focused and determined to achieve their goals and
believe completely in their ability to achieve them.
 Their self optimism can often been seen by others as
flamboyance or arrogance but entrepreneurs are just too
focused to spend too much time thinking about un-constructive
criticism.
of an Entrepreneur
3. Search for New Ideas and Innovation
 All entrepreneurs have a passionate
desire to do things better and to
improve their products or service.
 They are constantly looking for ways to
improve. They're creative, innovative and
resourceful.
of an Entrepreneur
4. Openness to Change
If something is not working for them they simply
change. Entrepreneurs know the importance of
keeping on top of their industry and the only way
to being number one is to evolve and change with
the times. They're up to date with the latest
technology or service techniques and are always
ready to change if they see a new opportunity arise.
of an Entrepreneur
5. Competitive by Nature
Successful entrepreneurs thrive on
competition. The only way to reach their goals
and live up to their self imposed high
standards is to compete with other successful
businesses.
of an Entrepreneur
6. Highly Motivated and Energetic
Entrepreneurs are always on the move, full of
energy and highly motivated. They are driven
to succeed and have an abundance of self
motivation. The high standards and ambition of
many entrepreneurs demand that they have to
be motivated!
of an Entrepreneur
7. Accepting of Constructive Criticism and Rejection
 Innovative entrepreneurs are often at the forefront of their
industry so they hear the words "it can't be done" quite a bit.
 They readjust their path if the criticism is constructive and
useful to their overall plan, otherwise they will simply
disregard the comments as pessimism.
 Also, the best entrepreneurs know that rejection and obstacles
are a part of any leading business and they deal with them
appropriately.
Types of Entrepreneurs
20
 Novice Entrepreneur
 Has no prior business ownership experiences as
a business founder, inheritor, or purchaser
 Habitual Entrepreneur
 Has prior business ownership experience
 Nascent Entrepreneur
 In the process of starting a new business

 Can be either a novice or a habitual entrepreneur
Types of Entrepreneurs (cont’d)
21
 Serial Entrepreneur
 Has sold or closed an original business and establishes
another new business
 Continues the cycle of selling/closing and establishing
 Portfolio Entrepreneur
 Retains an original business and builds a portfolio of

additional businesses
 Through inheriting, establishing, and purchasing the
businesses
Common Myths About Entrepreneurs
1 of 5
1-22
 Myth 1: Entrepreneurs Are Born Not Made

 This myth is based on the mistaken belief that some
people are genetically predisposed to be entrepreneurs.
 The consensus of many studies is that no one is “born”
to be an entrepreneur; everyone has the potential to
become one.
 Whether someone does or doesn’t become an
entrepreneur, is a function of the environment, life
experiences, and personal choices.
2 of 5
1-23
Although no one is “born” to be an entrepreneur, there are

common traits and characteristics of successful entrepreneurs:
• Achievement motivated • Optimistic disposition
• Alert to opportunities • Persuasive
• Creative • Promoter
• Decisive • Resource assembler /
leverager
• Energetic
• Self-confident
• Has a strong work ethic
• Self-starter
• Is a moderate risk taker
• Tenacious
• Is a networker
• Tolerant of ambiguity
• Lengthy attention span
• Visionary
3 of 5
1-24
 Myth 2: Entrepreneurs Are Gamblers

 Most entrepreneurs are moderate risk takers.
 The idea that entrepreneurs are gamblers originates
from two sources:
 Entrepreneurs typically have jobs that are less structured,
and so they face a more uncertain set of possibilities than
people in traditional jobs.
 Many entrepreneurs have a strong need to achieve and set
challenging goals, a behavior that is often equated with
risk taking.
4 of 5
1-25
 Myth 3: Entrepreneurs Are Motivated

Primarily by Money.
 While it is naïve to think that entrepreneurs
don’t seek financial rewards, money is rarely
the reason entrepreneurs start new firms.
 In fact, some entrepreneurs warn that the
pursuit of money can be distracting.
5 of 5
1-26
 Myth 4: Entrepreneurs Should Be Young and

Energetic.
 The most active age for business ownership is 35 to 45 years
old.
 While it is important to be energetic, investors often cite the
strength of the entrepreneur as their most important criteria in
making investment decisions.
 What makes an entrepreneur “strong” in the eyes of an investor is
experience, maturity, a solid reputation, and a track record of
success.
 These criteria favor older rather than younger entrepreneurs.

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ATTRIBUTES, QUALITIES,

entrepreneur is a person who is willing and

the phrase “creative destruction”

his or her own financial risk

the creation of an enterprise or business that

 They create new goods and services.

 They improve existing products.

 They offer variety.

 They design different approaches to familiar

 They consume resources, thus providing jobs

The 3 primary reasons that people become

Desire to be their own boss

Desire to pursue their

Four Primary Characteristics

 Passion for the Business

 Tenacity Despite Failure

 The Qualities of an Entrepreneur:

 Entrepreneurs set massive goals for themselves and stay

 Has prior business ownership experience

 In the process of starting a new business

 Retains an original business and builds a portfolio of

 Myth 1: Entrepreneurs Are Born Not Made

Although no one is “born” to be an entrepreneur, there are

 Myth 2: Entrepreneurs Are Gamblers

 Myth 3: Entrepreneurs Are Motivated

 Myth 4: Entrepreneurs Should Be Young and

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