To become a successful entrepreneur scholars have identified different traits and skills which should be included within the person’s mindset. These skills are unique to entrepreneurs. Not all the corporate officers have these kinds of skills even though they engaged in the business world. Most of these skills and traits cannot be taught. Those should come from the people mind set and may be those might arise due to past experience or unexpected situations. Even the background of the person’s life would affect the mindset. This report will generate a clear understand regarding the skills and traits and the background and past experience would affect the mind set of an entrepreneur with real situations.
Becoming a successful entrepreneur is very inspiring. There are several skills and traits essential for being a successful entrepreneur. There is arguing in the society that entrepreneurs should have those skills and traits by birth but some says it can be taught. These can be treated as the skills and traits required by the entrepreneurs.
Locus of control is a feature to recognize the success of an entrepreneur. Locus of control means the degree of the control that a person has towards other situations or people. There are two sides of this concept which is external and internal locus of control. The works show that the people with internal locus of control are more successful as entrepreneurs than others (Ahmad, 2010). The people with internal locus believe that they have more power and preference to control others and situations with innovative ideas. They have a strong feeling about the future and their destiny. Manager also has control over the people and situation. When it comes to managers they have to work according to their company targets without following their personal targets.
Flexibility is another strong skill that should be practiced by entrepreneur. It helps to adapt to changes in the environments willingly. With the current uncertain environment it is very important to be flexible and fit to the situation. If the entrepreneur is not flexible it will be difficult for him to sustain in the market (Robinson, 2014). When it comes to the manager he can’t be much flexible like entrepreneur because he works under set of rules. If he breaks the defined structure or the procedures it will be negatively effect. He has less authority to practice his flexibility even though he wanted to.
All the entrepreneurs have a passion. The society believes that inspiration of an entrepreneur is to collect more money. But the real inspiration of the most of the entrepreneurs is the passion. They have to come up with an innovative idea and satisfy the needs of the customers. Entrepreneurs are passionate on what they do. They enjoy what they do. Hence they work on their own targets and rules it’s easy to come up with new ideas (Robinson, 2014). The managers do the work as the instruction. They have to implement the procedures as per the instructions given. Therefore they might not have a passion when it comes to work. The main motivation factor of the manager is the power. (Surbhi, 2016)
Entrepreneurs cannot be guarantee about the income or the profit. There is an uncertainty which have to bear by him. Fluctuations of the environment can be unsafe. Therefore the entrepreneurs should have the capability to tolerate the risk. They usually accept risks than managers (Surbhi, 2016). Managers always try to mitigate the risk. They are known as risk averse. This does not mean entrepreneurs do not compute the risk level of the business. They make sure that the risk can be managed and even if they failed to tolerate the risk they will try again from the beginning without giving up (Robinson, 2014)
The personality is identified as a valid indicator of a person’s performance. The big five traits is a theory which demonstrate the personality of a person. Major five traits are used to measure the personality. Extraversion, Agreeableness, Conscientiousness, Neuroticism, and Openness to Experience are the five dimensions (McCrae & John , 1991). The trait ‘openness to experience’ shows the innovative perception and exposure to the novelty of a personality. People with this trait have a strong imagination than others. They are creative thinkers with rich and innovative ideas. They love to try out new things and curious to find out adventures. The people with a high openness to experience are more sensitive and they are highly creative (Rentfrow & Gosling, 2003). It is clear that entrepreneurial personality usually score high in the openness to experience and their mind set is creative and curious.
Some of the entrepreneurs are more Conscientious. Conscientiousness is another method to measure the personality of a person. The people with high Conscientious are more organized. They work methodologically. This means that they plan before work. The decisions are taken after a proper logical analysis. They know the process of the situation and what step to be taken as the next stage. Self-control and self-discipline can be found in the conscientious personalities (Nin, 2016) Entrepreneurs usually have aim for achievement and this is also comes under the conscientious. Usually entrepreneurs have a high score of conscientious. Their mind set is set to work hard with methodological steps.
People with high extraversion personality are more social. They build relationships with people with close attachments. The value of love and affections is valued by them. Whenever a social situation arises they would immediately lead and dominate the situations and try to find answers (McCrae & John , 1991). These kind loves to work as a team and always avoid being alone. Personalities with high compliance, trust and honesty are categorized in the agreeableness trait. They are more straightforward with their work. The decision and opinions are genuine and very concerned about others problems (Nin, 2016).
One of the famous arguments related to entrepreneurial characteristics is the question of whether the entrepreneurs are born or whether they can be made. There are many indications and evidences for the both sides from the very start. Anyway very recently scholars have recognized that to become a successful entrepreneur person should have the traits and skills. The above mentioned skills are required to sustain as a success entrepreneur. He might have it by the birth or he might learn those skills through his experience. People with specific genetic characteristics are more likely to become an entrepreneur. It is doubtful that if an individual is surrounded with skills and traits which was discussed earlier and yet he need to get attend classes or to take a degree to meet the requirements as an entrepreneur. However scholars and processors have stated that learners are inspired through education. They get the knowledge about the entrepreneurship as a subject. Even though they were educated about entrepreneurship as a subject still they need the skills inside them to become a successful entrepreneur (Daley, 2013).
There are many real world examples to explain the skills and traits of the successful entrepreneurs.
One of a major characteristic of successful entrepreneur is the ability to handle the risk even though how tough the situation is. One of the suitable examples is the story of Shark Tanks. The entrepreneur Barbara Corcoran was able to turn $1,000 loan in to a real stated which was valued to $5 billion. The most interesting part was she sold back the real state to $66 million in 2001 (Smale, 2015). This story clearly explains the ability of the entrepreneurs to successfully tolerate the risk and turn it to a million worth business deal.
Kind Healthy Snacks is started by the entrepreneur Daniel Lubetzky. His aim was not only based on the profit and income. He started to sell gluten free snacks with an aim of philanthropic view. One of his unique characteristic is the ability of handling the work force. He tries to improve the personal growth of the workforce. He highly concerned on the staff engagement in the business operations. The company is now able to sell millions of products each year (Wang, 2013)
One of the most famous cases is the story of Milton Hershey. He was not a rich man at the time he first started his career in confectionery industry. He has started three of candy shops. Unfortunately all the three shops failed. But with the never ending determination and commitment he was able to start Hershey’s Company which is now a leader in the confectionary market (Demers, 2014). Successful entrepreneurs never give up. Even though he fails, he finds another way to start from the beginning.
People get knowledge and experiences through various situations which they have to face in their life. It is not need to be achievement or a cheerful experience (Demers, 2014). Most of the successful entrepreneurs have faced failures as past experience. However they managed to overcome the failures. A well-known example is the story of Joyce Hall. He worked as clerk in his brother’s bookstore. Then the brothers, started a postcard company. But few years later all the stock of post card got destroyed due to a fire. After that only he was influenced to make his own cards and now the company is known as the famed card producer Hallmark Company. Jane Wurwand never studied business in her life. She had only studied on beauty school. When she started her own company she had only the certificate of her beauty school. She started her own company, Dermalogica, which is operates in skin care business (Demers, 2014) and now it is a well-known company.
Personal background and experiences would change the way of the thinking pattern and the mental perception of a person. For an example let’s assume a business oriented family. A child from a business oriented family can be influenced more to start their own business. This is mostly interrelated to family businesses which gives the experience to the entrepreneurial intentions (Krueger, 1993). The childhood experience on the family owned business will give the attractiveness and the feasibility to carry on own business. However this is not true in all cases. The child might be attracted to start their own business because of the parents’ business but he might not feasible enough to sustain as a good entrepreneur.
There are many entrepreneurs without any family background who have become successful in the market. The early experiences influenced them to start their own company (Drennan, Kennedy and Renfrow, 2005). When they had to face a challenging experience would be motivated to start their own business and the skills and traits are very powerful. Entrepreneurs become more determined and focused when they faced a challenging experience. They would not give up and try to achieve their goal anyway. Personal motivation arises when they are determined to a certain goal. No matter how tough the situation is they will achieve the target (Warner, 2013).
The famous entrepreneur Ralph Lauren’s daughter is also an entrepreneur who started her own retail candy shop named as Candy Bar. She has shown the entrepreneurial skills at the small age. Even her two brothers are entrepreneurs as well (Warner, 2013). When the parents are highly motivated entrepreneurs children also can be attracted to start their own business (Krueger, 1993). Born in a business oriented family would be an advantage for them to success in the field.
Attitude in the society also influence the entrepreneurs. In Western countries and developing countries entrepreneurship has increasing emergently. When it comes to the Asian countries the people have a negative attitude of entrepreneurship because of the risk and uncertainty. However women entrepreneurship is highly emerging in the developing countries. With a huge economic crisis women had to start their own small business to earn extra income. (Tambunan, 2009).
Richard Brandson is a high school dropped out boy who became an owner of more 300 companies. He has net worth of $4.2million assets. This shows that the entrepreneurs are not always well educated people but they have the knowledge and capability more than other people. (Warner, 2013). When people face critical experiences those become as learning to the life and they motivated to achieve the certain target with determination.
Entrepreneur is a person who comes up with an innovative idea to cater the customers’ which is not satisfied until now. To become successful they should have skills and traits. Different skills can be identified throughout the history. Some argues that these skills can be taught but some argues that those skills come from the birth. Skills can be taught but it is questionable whether the person has the ability to practice those skills in real life situation. Past experiences and background also influence the entrepreneur to become success in the market. There can be strong experiences which made changes in the perceptions and mind sets.
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