Commerce · Ch 23 — Elements of Entrepreneurship
Characteristics of an Entrepreneur
Characteristics of an Entrepreneur
Not every person who starts a business succeeds as an entrepreneur; success depends on a fairly consistent set of personal qualities that researchers and practitioners have observed across successful entrepreneurs in very different industries and countries. These characteristics explain why entrepreneurship is regarded as much a mindset as a set of business skills.
The table below summarises the qualities most commonly identified in Commerce textbooks and practice, followed by a short explanation of each.
| Characteristic | What it means in practice |
|---|---|
| Risk-bearing capacity | Willingness to commit money, time, and effort to a venture whose outcome is uncertain |
| Innovativeness | Constantly looking for new products, processes, or ways of doing things better |
| Vision and foresight | Ability to see where an opportunity or a market is heading before others do |
| Organising and managerial ability | Skill in bringing together land, labour, capital, and technology into a working unit |
| Sound decision-making | Ability to choose the best course of action quickly, often with incomplete information |
| Self-confidence | Belief in one's own judgement and ability to succeed despite setbacks |
| Perseverance | Staying committed to the venture through difficulties instead of giving up |
| High need for achievement | An inner drive to excel and to accomplish something significant, not just to earn money |
| Initiative | Acting on an opportunity without waiting to be told or pushed |
| Hard work | Willingness to put in the long hours a new venture typically demands |
| Flexibility and adaptability | Readiness to change plans, products, or methods when circumstances change |
A psychological drive, identified by David McClelland, to accomplish difficult and worthwhile goals for the satisfaction of achievement itself, rather than purely for money or recognition; a strong pre …
The entrepreneur's willingness and ability to commit resources to a venture despite the possibility of loss, and to absorb that loss if the …