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SIX CHARACTERISTICS OF AN ENTREPRENEUR

September 30, 2021by ServoNG0

SIX CHARACTERISTICS OF AN ENTREPRENEUR

In the world today, there are millions of people who are involved in one form of entrepreneurship or the other. The world evolves everyday and so does everyone it, and also the economy and the way things are being executed. Changes and Innovation have become an important part of the 21st century or rather, the technological era. Though the concept of Entrepreneurship dates back to long years ago, it has become a substantial part of our society.

 Entrepreneurship, simply put, is the act of creating a new business which results from individuals wanting to make their own choices, own their own businesses and bring their creative ideas into light. The term can also be referred to as a process of initiating a change. For instance, if an individual decides to start up a new business, (that is, a business birthed out of an innovative idea and something quite different and not available in the market) the individual is directly initiating a change in the market and giving people something else to use.

While the creation of a new business might fully be determined by the development of an innovative idea, it encompasses a series of characteristics which must be possessed by individuals who want to start up or create a new business. These individuals are called Entrepreneurs and they are people who bring up a creative idea for a business, either new or an existing one, set up a business structure, take risks and work hard to ensure profit is achieved.

From the above meaning of an Entrepreneur, two qualities can be determined; the ability to think out of the box and come up with an innovative business idea and the ability to take risks for the sake of the business. These qualities stand as fundamental characteristics for entrepreneurs as it determines the state and progress of a business. In the next paragraphs, I’ll be discussing the qualities that make up an entrepreneur.

SIX CHARACTERISTICS OF AN ENTREPRENEUR

1. CREATIVE ABILITY.

This is what makes an individual an entrepreneur; the ability to come up with creative ideas that ensures the start of a business and initiates a change. Businesses developed by entrepreneurs can be of two main forms; a new one or an existing one. Individuals can either work on a plan that introduces a new product to the market or work on another with an already established market. Either way, a new business is formed and it leads to the concept of Entrepreneurship. Entrepreneurs must possess innovative skills to be able to develop a business and come up with ideas, when needed, for the progress of the venture. This means that, even after a new business is formed, the creative process doesn’t stop as it will be needed to help for continuity. An entrepreneur who wants his/her business to stand out must always be creative.

2. RISK TAKING.

While every new venture strives to make profit, there are times when losses might arise and individuals will be in a position to make certain decisions and take some risks that might either prove to make or break a business venture. Decision making is an important aspect of starting up a new business and it is something that will go on for as long as the business stands. The ability of an entrepreneur to take risks is highly important. In a scenario where a business makes a huge loss or is on the brink of collapse, the entrepreneur has big decisions to make, hence risks. At such point, whatever is decided potentially decides the progress of the business depending on the outcome. However, some risks are too big and it is up to individuals to draw a limit to taking risks on certain occasions.

3. MONEY MANAGEMENT SKILLS.

Asides possessing the creative ability to create a new business and the capacity to take risks, an entrepreneur must be money cautious. Money management is very important especially in a business owned by just an individual. Entrepreneurs must know how to spend money wisely and how to use profits properly to ensure the progress of a business. Individuals can come up with a plan or strategy that helps manage the funds gained from the business. A little mismanagement of the money could result in a bad turn for the business venture.

4. PASSION.

This is probably one of the lessons taught in Business 101 or Entrepreneurship 101 classes. Never venture into what you don’t have passion for. One key thing to identify in many successful entrepreneurs in the world today is the fact that they are dealing in what they have always had passion for or something they have always had in mind since their childhood days. In recent times, people have involved themselves with different business ventures, mostly existing businesses, because of unemployment or fear of poverty but the real truth is passion is a fuel for a successful entrepreneurship venture. Something about passion gives you the motivation and drive to keep doing better and getting the best out of the venture. In some cases, individuals lose interest or get discouraged after a turn of events in the business that might lead to a collapse. In such times, the passion one has for what he/she is doing helps the person thrive and look for solutions. One of the main reasons for failing or unsuccessful businesses in entrepreneurship or for start-ups is lack of passion.

5. PROACTIVENESS.

In an entrepreneurship venture, you are solely the Chief Executive Officer, Managing Director, General Manager and in fact, the General Overseer of your business except of course in cases where individuals who create a new business, share or distribute the ownership of the business to one or several other individuals whose presence are critical to the business progression. In short, you are solely in charge of how things are run. Being proactive as an entrepreneur means preparing for the future and planning for events to happen long before they even start to manifest. Entrepreneurs like to think long term and put their focus and determination into achieving the set goals. “If there is a loss, what will I do?” “If the business runs out of money, what happens?” “If a competitor arrives and poses a threat to my business, what are the procedures in place to help stay in the market and stand out?” These are exactly how entrepreneurs think in the early stages of the business. The ability to answer such questions that may likely arise determines how well an entrepreneur can succeed in whatever he/she is doing. A single mistake in planning could affect the business seriously. “Someone who fails to plan, plans to fail”.  

6. ENDURANCE.

This is intentionally put as last on the list because after an individual creates a new idea, take risks, properly manage money, deals with his/her passion, and adequately plans for the future, the next thing is to ultimately wait for the proceeds and outcome from all the hard work put into the business, which in fact, is not easy. There goes no business existing without experiencing loss. Rome wasn’t built in a day. Sometimes, it takes a longer time for a business to establish properly in the market and others take a shorter time. As an entrepreneur, you should always expect the unexpected and when such happens, pick yourself up again and re-strategize. Enduring all that comes with setting up a business is one of the things that make an entrepreneur. Even successful entrepreneurs have faced hard times in the past, but their ability to endure and motivate themselves into getting up and doing better ultimately reaped benefits for them.

While these six characteristics can be considered as highly decisive in becoming an entrepreneur, it doesn’t stop there. Entrepreneurs should always pay attention to detail, make carefully developed decisions, take necessary actions when needed, always think outside the box and most importantly, stay dedicated and put in hard work. Nothing comes easy and so does entrepreneurship. It is all a process and it could take a long time but it will eventually lead to success. Following your own set principles and shaping yourself to the listed qualities will help you become a better entrepreneur which will ultimately lead to the success of your business.  

GROWTH AND FACTORS AFFECTING ENTREPRENURIAL GROWTH

In the world of entrepreneurship, success is not only measured by how much profit is derived from the business or how well you’re able to dominate the market, but also the ability to sustain the business, carry on and survive in the market. Progression is key especially for a start up entrepreneur. Making the profit is more like a short term goal and as an entrepreneur who is proactive, he/she must be able to think about the future and long term success of the business. That includes developing strategies or plans to help keep the business in the market after several years and how to also expand operations.

Growth for entrepreneurs, especially start ups, is like moving from one point in the business to yet another high point in the business. Most start ups create their businesses from the scratch and as always recommended, most of them start small. When an entrepreneur starts small, the goal is to expand operations and move big. Take for instance, an entrepreneur who starts up a fish farm on a small scale. Whatever this individual does is in small amounts. Location, labor, and capital is small. But as profits come in, the idea is to try to increase output and ultimately work to have a bigger location for operation and also expand operations beyond the areas they currently serve.

The concept of growth is almost inevitable for some businesses, however, it is not always easy. Some factors or several conditions play a role in how well this growth can be achieved at the quickest time possible. Most times these factors hinder the growth of an entrepreneurship venture and it all comes down to how the entrepreneur handles these problems and work with some of them to be able to attain the growth. Growth depicts a high level of success for entrepreneurs and as such, they are always looking forward to the future to try and get it.

In the next sub heads I’ll be discussing a number of important factors that affect entrepreneurial growth.

DIFFERENT FACTORS AFFECTING ENTREPRENEURIAL GROWTH

The factors that affect growth in any entrepreneurship venture is always divided into two. Economic and Non Economic factors. The Economic factors includes things like capital, labour, and resources while the Non Economic factors include things like personality, social and religious beliefs. I’ll go through these factors in the next subsequent paragraphs.

  • ECONOMIC FACTORS

1. CAPITAL

Right from the start, entrepreneurs have to worry about capital and even at the point of seeking growth, it is still determinant on how much money is available in the business. Capital is one of the most important factor of production and is considered highly important for the success of the business. Even before the success comes, the capital has to come in first and help with developing the business. The capital is so important that it determines the capacity the business can take. For example, with a small amount of capital, entrepreneurs will be able to only start up small while larger amounts of capital will help entrepreneurs start on a large scale..

Capital is always regarded as a “lubricant to the process of production”. Available capital is what is used to acquire the land or shop or whatever location is to be used by the business, to buy the equipments and machinery needed to operate, and also get supplies, resources or raw materials needed to achieve the finished product. Capital plays a role in all the processes involved in fully developing the business. As a quick fix to the capital problem, entrepreneurs mostly use personal savings, or loan from family members or friends or loan from banks.

2. LABOR

This is yet another factor of production that is highly important in the success of any entrepreneurship venture. Now, when it comes to labor, it’s not about how many workers you can get to do what you want but the number of workers who actually know what to do and will get things done. Simply put, quality is more important than quantity. You can put up 100 workers on a project and it still turns out to fail if the workers do not have the skills required to take up the roles they are given.

At times, problems of not getting the skilled ones arise. This can be difficult especially in countries with low population and also those with poor education systems. For a business that needs the use of labor, getting the ones with actual skills is what will help achieve success.

3. RESOURCES OR RAW MATERIALS

Raw materials are important to the production process. They typically kick start the business fully as every other thing must have been available at that time. The raw materials include things that are actually needed to start up. For a small scale juice business, it is the fruits and the sweeteners and every other thing needed to bring the juice to light. For a small scale fish farm, it is the fish, their feeds and other supplies that makes the fish available for sale after a period of time. When these things are not available, it is almost impossible to start up any business or even think of introducing anything to the market.

Unavailability of raw materials can be caused by inflation or in some cases, shortage. This happens in cases where the material needed are to be imported into the country and also cases where the materials are limited and are only available during a particular period of time.

4. MARKET

The first thing to do before starting a business is taking a proper look at the industry which also includes studying the market for the product you’re about to develop. Studying the market gives you the chance to know the requirements to set up in the market, know what to expect upon starting the business and coming up with strategies to help you survive in the market. It is also important to know the kind of marketing approaches currently in place and how it works and how you can implement your own strategies.

The market analysis is also important to get you an idea of the rewards in the business and also the risks involved. Level of competition is also one important thing. When you’re starting up a business, if there is a high level of competition, it could be determinant on the success of the business. Low level of competition or none at all could potentially boost the success of the business though it comes with its own risks considering you’re the only one with the product in the market.

  • NON ECONOMIC FACTORS

1. EDUCATION

In some cases, this might prove to be unimportant but the benefits of education are not to be underestimated. Education provides and equips individuals with certain skills that are able to help an entrepreneur properly run the business. These skills are skills that are vital and can only be learnt after years of study. Experience also, they say is the best teacher and the lessons learnt from previous experiences should be able to guide entrepreneurs into making right decisions and minimize the occurrence of past mistakes.

2. CULTURAL AND RELIGIOUS BACKGROUND

As funny as it may sound, some people actually have beliefs that prevent them from making huge amounts of profits or putting so much money into business. Several cultural and religious beliefs also play a role in the development of an entrepreneurship venture. In some cultures, people are not allowed to get involved into some particular kinds of business, so even though an individual has passion for it, they can’t set up because it doesn’t correspond with their beliefs. Also, some religions have it in their principles not to make huge profits or spend such money. In cases where an individual starts up a business and decides to sell the goods for a slightly high price in order to get profit,  it is not allowed.

Other factors which may also affect entrepreneurial growth includes personal reasons which includes when an individual doesn’t posses the skills required to be a successful entrepreneur and lastly, the society or community. Some societies have their preferences and if what they want doesn’t align with what you create, there will definitely be a problem. Entrepreneurs who are just about to venture into a business should be aware of these factors and seek ways to solve and find a way around them.


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