Ten essential characteristics of an entrepreneur: Enterpreneurs are individuals who establish new businesses, take the risks associated with the business and also enjoy the rewards or profits derived from such businesses. Entrepreneurs are innovative and resourceful. They generate productive ideas and create business ventures based on these ideas. Entrepreneurs take financial and other risks to create new business ventures which provide goods and services to customers.
Entrepreneurs play essential role in the development and sustenance of the global and national economies. Through their enterprises, they create employment and through the taxes paid, provide the funds necessary for the functioning of the government and the execution of the government’s eeconomic policies. Most importantly, entrepreneurs improve the standard of living of the population through income growth of their employees.
There are character traits or qualities which possess. These traits or qualities drive the entrepreneurial efforts of entrepreneurs. They propel entrepreneurs not only to take the risk of establishing their new business ventures but also help them to manage the business and ultimately, achieve success. Ten of these qualities will be discussed.
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Top 11 Qualities of An Entrepreneur
Below are the essential characteristics/qualities every entrepreneur should have:
1. Creativity: Creativity is a key quality of entrepreneurs. Entrepreneurs have the ability create new businesses out of the creative ideas which they have. The creative idea may be about how to provide a workable solution to a an emerging problem or need. Based on the creative ideas generated, the entrepreneur builds his or her business or product. The product or business will be targeted at the need or problem concerned. Through this process, the entrepreneur creates his or her own business and is able to attract patronage.
Creativity, in addition to enabling the entrepreneur to create his or her business, also helps the entrepreneur to run the business efficiently and profitably. Entrepreneurs face fierce competition in the business world. Through creativity, they are able to create innovative products and services which will beat those of the competitors. Creativity is a fundamental characteristic of entrepreneurs.
2. Risk-taking: A major hallmark of entrepreneurs is risk-taking. Entrepreneurs risk the loss of their funds and profit. In establishing a business venture, entrepreneurs are not guaranteed profits or rewards. In most cases, they are faced with the risk of losing their money and other resources.
Despite the existence of risk factors, entrepreneurs go ahead to start their businesses and to invest their time, energy and fiscal resources in the business. They are motivated by the expectation of profits or rewards to take the risks associated with their business ventures or ideas.
Even though entrepreneurs are risk-takers, they do not invest their time and material resources in every idea, service or product. They evaluate the risks associated with the idea, service or product. After the evaluation, they are able to determine whether the idea, product or service has a prospect of success. Having determined that it has a possibility of success, the entrepreneur then goes ahead to take the risk and invest in it.
3. Passion: Passion is the driving force in every entrepreneur. An entrepreneur is always passionate about his or her business ideas and ventures. Passion infuses the entrepreneur with the motivation to be actively engaged in the execution of his or her business ideas and to build the business.
Even when the business has been created, passion pushes the entrepreneur to work hard and efficiently in the development and sustenance of the business. Passion is an essential quality which every entrepreneur must possess.
4. Vision: Vision is an essential characteristic of an entrepreneur. An entrepreneur is able to create a mental picture of the future of his or her business and also that of the industry in which his or her business.
The vision helps the entrepreneur to formulate the long-term goals and strategies for the business. In addition, the vision helps the entrepreneur to stay focused and motivated.
5. Problem Solving: Problem Solving is a key characteristic of entrepreneurs. Entrepreneurs have the ability to identify a need or problem. Identification of the need or problem marks the beginning of the entrepreneurial venture.
After identifying the need or problem, the entrepreneur begins to generate ideas to meet the need or solve the problem which has been identified. Afterwards, the entrepreneur builds up the business based on the ideas generated. The ability to identify and solve problems is an indispensable trait of entrepreneurs.
6. Knowledge: Knowledge is an important marker of an entrepreneur. Entrepreneurs possess knowledge of several aspects of the business ventures they create and the business world as a whole.
First of all, an entrepreneur possesses knowledge of the business which he creates or manages. An entrepreneur must know the risks associated with the business he or she wishes to engage in. He or she must also know the prospect of profit or success of the business.
Moreover, an entrepreneur knows and understands the business space which he is part of. An entrepreneur knows the rules, practices and ethics of the business space which his or her business exists in. This helps the entrepreneur to carry out his business activities in line with the ethics and practices of the business space and also manage his or her business efficiently.
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7. Social Skills: An entrepreneur comes into contact with his or customers on regular basis. It is therefore necessary for the entrepreneur to relate with the customer in an acceptable and impressive manner. An entrepreneur therefore possesses social skills which facilitate and sustain the interaction between the entrepreneur and the customers. Social skills help the entrepreneur to build a strong and lasting relationship with the customers, which will in turn, lead to greater patronage and more profits.
Similarly, the social skills which an entrepreneur possesses aid him or her in building a working and productive relationship with business partners and employees. An entrepreneur needs the contributions and support of his or her business partners and employees to develop the business and to make it more profitable. This can only be possible if the entrepreneur builds a relationship with them, and this can only be achieved by the utilisation of social skills. Indeed, social skills are necessary for every entrepreneur.
8. Adaptability: The business space in which entrepreneurs operate is a dynamic one. It is subject to change. The change may be as result of the policies of the government, the practices of competitors or other factors. This is why an entrepreneur possesses the characteristic of adaptability. This deals with the ability of the entrepreneur to adapt to the new business, political or social space.
The entrepreneur also adjusts his or her business strategies to ensure that his or her business venture survives and thrives in the new space.
9. Decisiveness: An entrepreneur is, at all times, faced with the task of making critical decisions that concern his or her business venture. The decision may relate to human resources management, funds raising or other matters.
Decision making skill is therefore an essential characteristic of an entrepreneur. An entrepreneur must be able to evaluate the existing circumstances and make sound decisions which will suit the business and ensure its profitability.
10. Persuasiveness: An entrepreneur has the demanding task of negotiating with business partners, loan providers, employees and customers. It is therefore necessary for the entrepreneur to be able to negotiate effectively with them and ultimately be able to convince them.
An entrepreneur has persuasiveness as an essential quality. He or she must be able to make favourable deals with business partners and others through persuasive negotiations.
11. Management: An entrepreneur has the responsibility of managing the business including the employees and resources of the business. An entrepreneur must be able to to effectively and efficiently manage the human and material resources in order to maximise productivity and profitability.
An entrepreneur must possess the ability to direct and support employees to perform their functions effectively and to promote the goals of the business. He must also be able to ensure that the funds and other resources of the business are utilised judiciously to run the business profitably.
In conclusion, it is worthwhile to know that entrepreneurs plays a key role in the development and sustenance of the economy of every country. They create business ventures born out of their creative ideas. They take the risks associated with the business and also share in the rewards of the business.
An entrepreneur must possess certain characteristics, traits or qualities. These characteristics or traits must be possessed by the entrepreneur and they must also be effectively deployed in the creation and management of the business. Without these traits, an entrepreneur cannot successfully create a business and manage it efficiently.
Edeh Samuel Chukwuemeka ChMC, is a Law Student and a Certified Mediator/Conciliator in Nigeria. He is also a Developer with knowledge in HTML, CSS, JS, PHP and React Native. Samuel is bent on changing the legal profession by building Web and Mobile Apps that will make legal research a lot easier.