Paper Sample for Free: Personal Traits of Successful Entrepreneurs

ABSTRACT

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Entrepreneurs play an essential role in the socio-economic growth of any country. However, not all entrepreneurs become successful in their ventures. There are several factors responsible for the success of entrepreneurs at every level. Different people how diverse views regarding the influence of personal characteristics on the attainment of entrepreneurial success. However, research indicates that personality traits play a crucial role in the realization of entrepreneurial success.

This paper, therefore, aims to establish the different characteristics of an entrepreneur and to find the correlation between those characteristics and how they evolve into successful entrepreneurship. A descriptive methodology has been used to summarize the findings of this research. A sample of data has been reviewed and studied.

The findings of the study revealed that entrepreneurs reveal different characteristics in their diverse entrepreneurial practices. The study also attempts to establish the correlation between the traits of entrepreneurs and how these traits assist them to evolve to become successful entrepreneurs in their various areas of business. These findings will enrich the existing body of information which exists on entrepreneurship which in effect will help in the development of an understanding of and how personality traits and they determine the success levels of entrepreneurial practices.

Keywords: entrepreneurs, entrepreneurships, entrepreneurial, need for achievement, locus of control, motivation, success

1.0 INTRODUCTION

Entrepreneurs are charged with the responsibility of organizing, managing as well as assuming the risk of the enterprise. The success of any, business largely depends on the human capital of the owner who also doubles up as the manager. The present data are based on the findings and data of past studies and interviews conducted. The success of the entrepreneur is always measured by the success that the firms achieve. For this study, entrepreneurs are said to be successful if they started their businesses and run it successfully for more than three years. Although personality traits are considered as a vital ingredient of entrepreneurship, motivational and situational factors are also crucial factors in the evolution process of becoming an outstanding entrepreneur. Under similar circumstances, the success levels of individuals vary from one person to another. As such, it has become essential for researchers to establish what factors significantly influence the success of entrepreneurs. Additionally, it is pertinent to understand whether there is any relationship between the characteristics of individuals and how they evolve to become successful entrepreneurs in business.

1.1 Background

Researchers and academicians have held diverse opinions concerning the effect which different elements have on the success of enterprises. The personal traits of entrepreneurs have been identified as the main factors which influence the success of any entrepreneur. It is expected that social entrepreneurs often possess certain distinct personality traits which are developed through education, innate nurturing, and socialization. Thus, traits may always influence the intentions and the way in which individuals act. As such, it is imperative to explore the different characteristics of these individuals and explain to what extent these elements influence the success or failure of their enterprises.

1.2 Objectives and aims

The objectives of this study are to determine:

i. The characteristics of entrepreneurs and how they compare to others

ii. The attitudes towards risk that entrepreneurs show

iii. The overall goals, aspirations, motivations that entrepreneurs bring to their success

iv. What traits entrepreneurs have that motivate them to open a startup vs. others.

1.3 Methodology

The methodology in this research is a descriptive one in nature.

I. Data collection

The primary data were collected directly from selected studies conducted in the past. Structured interviews were conducted to gain more data to support the thesis of study.

II. Sampling design

The multistage sampling in this study consisted of responses from different entrepreneurs. The diverse responses by diverse business persons were also sampled to ascertain the levels of confidence of the responses presented by these individuals.

III. Results

The findings of the study indicate that there is a positive relationship between characteristics of entrepreneurs and how that assisted them to evolve into successful entrepreneurs. The individuals who practiced positive attributes stood a better chance of transforming their businesses into thriving enterprises.

1.4 Thesis outline

The thesis of this research is to explore the different characteristics of an entrepreneur and to establish the correlation between these characteristics and how they evolve into successful entrepreneurship.

2.0 LITERATURE REVIEW

Traits mean distinguishing characteristics which an individual have. Successful entrepreneurs have similar characteristics, and one of the earliest traits identified include risk-taking. Fairlie and Holleran (2012) found evidence suggesting that individuals always willing to take risks or tolerant to risks were better equipped to be better entrepreneurs than those individuals who are less tolerant of risks. It is believed that risk-tolerant individuals are more likely to be successful since they are likely to engage in ventures which other entrepreneurs may not be willing to undertake.

Wincent and Westerberg (2005) found a direct relationship between personality traits like tolerance for ambiguity and self-efficacy and entrepreneurial behavior for organizations. The results of this study show that the personal characteristics of the entrepreneur are vital to study to understand the behavior as well as the performance of a firm. Based on the survey of Wincent and Westerberg (2005), the presence of a direct link between personality traits and successful entrepreneurship plays a vital role in determining how successful an enterprise can be. For instance, it is believed that self-efficacy enhances the chances of success of business CEOs. Additionally, tolerance for ambiguity greatly impacts the performance of businesses.

Meta-Analyses conducted by Brandstatter (2011) indicate five personality traits which bring out a difference among entrepreneurs. These traits include readiness for innovation, proactive personality, need for autonomy, self-efficacy, and locus of control. This study, however, found that risk propensity supports the startup of the business, but it does not always guarantee business success. As such, it is imperative to complement this trait with other traits that will enhance the chances of success. Achievement motivation is essential for starting a business as well as improving the chances of success. However, the effects are usually small or in some cases moderate. In that case, it is imperative to identify the characteristics of entrepreneurs and how they impact in the success levels of enterprises.

Papzan et al. (2008) found evidence which substantiates a positive relationship between the need for achievement, innovation, marketing, internal locus of control, and the absence of bureaucratic procedures and success of entrepreneurs. On the other hand, Simon et al. (2007) did not find evidence which suggested that entrepreneurs are more confident than other individuals. Rather, the success of any entrepreneur is solely determined by the smartness of the individual. Nandeam and Samsom (2007) established that the main factor which determines the success of an entrepreneur is largely dependent on their foresight and ability to spot opportunities, goal oriented, self-confidence, creativity, courage, perseverance, the locus of control, ambitious, and trustworthy.

Robbin and Judge (2009) explored entrepreneurs' traits which have the most significant impact on the performance of an enterprise. The study revealed that personality traits like ambiguity tolerance and internal locus of control had a significant effect on determining the success of the business and indirectly impacted business processes. Furthermore, it was established that there was a strong relationship between the competence levels of entrepreneurs and the level of success. Competence comes as a result of a combination of several factors which include personal traits. In that case, to evolve into a thriving entrepreneur means the consistent strategic application of these individual traits into ensuring that the business succeeds.

Abdullah et al. (2009) proved that there are eight factors which play a significant role in determining the success of entrepreneurs. Ranking these factors in order of importance, advancement orientation came first. The commitment came second while decision-making capability came third as one of the crucial factors. Managing risk was fourth while tenacity was the fifth important element. Networking and optimism came sixth and seventh respectively. Additionally, Di Zhang and Edward (2011) confirmed that there is a concrete relationship between personality traits like the need for achievement, internal locus of control, and need for recognition and the positive performance of a business. These findings support the hypothesis of the study because it indicates that there is a positive relationship between personality traits and the performance of their organizations. This is with the consideration of other significant elements which come into play.

2.1 Definitions

Entrepreneur- this is a person who identifies a need in the market and starts a business which seeks to fill that gap or provide solutions with the aim of making profits or achieving growth for their company (Andersson, Curley, and Formica, 2010). Ideally, an entrepreneur can be said as the individual who provides an insight into the specific character trait and attributes which should be put in place to start and succeed in conducting business (Fernandes, 2018).

Entrepreneurial- this term refers to having a relationship with the creation and development of economic ventures or relating to an entrepreneur.

Entrepreneurship- is termed as the persistent progression towards finding an innovative solution to a critical problem. Ideally, this is considered as the consistent hunger to make things change for the better and establishing better solutions for a specific problem being faced in a business environment.

2.2 Types of entrepreneurs

Entrepreneurs can be broadly classified depending on the various types of businesses that they engage in as well as the size of their organizations.

I. Business Entrepreneur

Business entrepreneurs are in...