The Characteristics of Entrepreneurs - Free Paper Sample

Chapter 3.0: ANALYSIS.

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As it has been mentioned above, several factors impact the performance of the entrepreneurs and how successful they can be in their endeavor to become successful entrepreneurs in their business. This section, therefore, provides an analysis of they enhance their transition to becoming successful entrepreneurs. The central question of the research was "what are the effects of an entrepreneur's personality traits on the performance of a new business venture." The question of how the characteristics of entrepreneurs differ from that of entrepreneurs can be used as the subsection of the research. In that case, the two hypothesis created for this thesis are:

H1: The characteristics of an entrepreneur impacts the performance of a business venture.

H2: The characteristics of entrepreneurs differ from those of non-entrepreneurs.

3.1 Analyzing the first (1) hypothesis

The first hypothesis relates to determining how the attributes of entrepreneurs influence the performance of business ventures. To be able to successfully complete the objective of the first hypothesis question, this section will look into different past cases articulated in various research papers.

One of the most recent studies which shade more light on how the need for achievement impact the performance of entrepreneurs and business persons, in general, was that conducted by (Uduji, 2013). The primary goal of this research was to determine the existence of a relationship between motivation and what drives motivation between the sales individuals and how this impacted in their performance. A sample of 350 sale persons and managers in different multinational firms in Nigeria were selected and determined using a mean. The hypothesis of the study was then tested through the use of Multiple Analysis of Variance (MANOVA).

The findings of the study revealed that the sales person's level of motivation was one of the leading factors which contributed to the high performance of organizations. It is thought that if the organization's goals and objectives match of the employees, then there is a high likelihood of high performance by the organization. This is because as employees struggle to make their goals come true, they are pushing the organization's goal as well. This consequently results in an enhanced performance by the organization (Uduji, 2013). The study also indicated that when more authority is retained at the top, entrepreneurs or sales individuals are more likely to depend on the decision-making abilities of their managers. As such, they may not always reach their optimal performance because the decision-making process of the organization suppresses their need for achievement. As such, these events gradually led to a reduction in the production process of the organization due to the low levels of need for achievement of the salespersons.

Table 1:

Theoretical Basis of salespeople Attitudes to work in Multinational Firms.

Source: Uduji 2013.

The table 1 above indicates that five respondents (1.4%) disagreed with the research questions in table 1 as asked during the research process. 2.9%of the participants disagreed, while 30 participants (8.6%) were somewhat agreeing about the research questions being asked. On the other hand, 165 individuals (47.1%) were agreeing about the research questions. 140 respondents (40%) were definitely agreeing about the research questions. These results translated to a mean response value of 4.21. As such, these findings support the view that the respondents were concerned about the effect that the level of their participation had on the ultimate performance of the organization. The same can be said of entrepreneurs who are continuously driven by the standards of need for achievement which then translate to better performance of the organization. On the other side, if an individual has low levels of motivation of personal attainment, then they are likely to perform dismally.

The study conducted by Uduji (2013) confirm the statement of the first (1) hypothesis.

A study conducted by Mahendra, Djatmika, and Hermawan (2017) also gives further revelation about the need for achievement on entrepreneurial attitude as well as the effect of need for achievement on entrepreneurial intention (Mahendra, Djatmika, & Hermawan, 2017). The method of this study was a questionnaire distribution, and the data collection was the use of samples. The population consisted of 540 people who were management students at the State University of Malang. To determine the sample, this study used a proportional random technique after which the results were computed using the Slovin formula. Basing on the findings of the study, it was established that the mean value in need for achievement amounted to 4.09 which then draws the conclusion that a huge number of the participants consider the need for achievement as an essential element for one to evolve into a successful entrepreneur. The first hypothesis of the study which was establishing the need for performance on entrepreneurial attitude was tested positive in the study. The coefficient between the need for achievement and entrepreneurial attitude was estimated to at 0.390 and a significance level of (P-Value of 0.00). As such, these results of this study support the first hypothesis of the study.

The second hypothesis of this particular study tested the need for achievement and its effects on entrepreneurial intention. The findings of the study showed a positive coefficient of approximately 0.210 and a significance level of (P-Value of 0.002) 0.05. The need for achievement impact on the influence it has on entrepreneurial intention was approximated to be 0.210. In that case, this value illustrates that the need for achievement is a crucial element in determining entrepreneurial intentions of an individual. As such, if an entrepreneur shows enhanced levels of need for achievement, then they are likely to stand to record higher performances because of their intentions to achieve some if not all of their set goals and objectives. The finding of Mahendra, Djatmika, & Hermawan (2017), therefore, support the first (1) hypothesis of the study.

In 2006, Poon, Ainuddin, and Junit (2006) conducted a study with the primary aim of establishing the relationships among three self-concepts, entrepreneurial orientation as well as the performance of firm based on data collected from 96 entrepreneurs. The study then used the path analysis technique to determine the direct and indirect effects of the various traits on the performance of the organization. Entrepreneurial orientation is an essential factor in reflecting innovativeness, propensity to risk, and proactiveness in entrepreneurs (Poon, Ainuddin, & Junit, 2006). These factors were used to determine the mediating variable as a way of explaining the relationship which exists between a firm's performance and self-concept traits. The findings of the study showed internal locus of control was closely linked to a firm's performance. On the contrary, the findings indicated the no existence of a no definite relationship between a firm's performance and the generalized self-efficacy. However, this element was found to relate positively to a firm's performance through its effect in entrepreneurial orientation. Additionally, the findings indicated that the self-attributed achievement motive was not closely related to neither the performance of a firm nor the entrepreneurial performance (Poon, Ainuddin, & Junit, 2006). A greater is emphasis is given to the theory locus of control and how this concept hugely impacts the performance as well as the success of an entrepreneurial venture. Essentially, from the findings of this study, it is evident that entrepreneurs who believe in their abilities have a better chance of making a success of their businesses. This is unlike individuals who blame external factors to be the leading cause of their failure or misfortune in their business ventures. The findings of this study highlight the concept that if an individual has an internal locus of control, then they stand a considerable chance of influencing the performance of their business ventures positively. In effect, this study shows that the entrepreneurial personality trait of the need for achievement has a massive influence on the performance of a business venture.

Therefore, the results of the study by Poon, Ainuddin, and Junit (2006) support the first (1) hypothesis of the study.

In 2011, Di Zhang and Bruning (2011) carried out a study to understand how entrepreneurs can make use of their abilities and experiences to improve or influence the performance of their business entities. One of the significant findings of this research is that entrepreneur's personal characteristics have the ability to change their strategic choices and how that can impact the performance of their organizations (Di Zhang & Bruning, 2011). To be able to efficiently explore this issue, the study adopts a resource-based view as the best way of observing the personal traits of the entrepreneur as a human capital resource and exploring them in the context of the business's strategy and performance. The three main personality traits under study in this research are needed for cognition, need for achievement, and locus of control. To reduce the bias which research work is usually exposed to, the researchers adopted a cross-sectional survey-based technique when collecting data systematically.

A small survey conducted through the mail was administered in a Canadian manufacturing environment with a sample of 2200 companies. The researchers then chose a highly populated and dynamic manufacturing industry as a way of making the results reliable and generalized for a bigger population while also trying to keep environmental factors at comparable levels. The survey obtained 161 responses which indicated an eight (8) percent response rate. The internal locus of control was determined using a seven-item. The need for achievement was measured on a five-item, seven-point Likert scale. The need for cognition was ranked on a 34-item long scale. The performance of the firms was determined on a three-item, seven-point measure of business performances (Di Zhang & Bruning, 2011).

The findings show that the need for achievement was found as one of the positive influence on the performance of a business. Additionally, the results of the study have it that internal locus of control also has a massive impact on the performance of the business entities. Similar to other reviews, the results of the research confirm the existence of a definite relationship between an entrepreneur's personal traits and the performance of a business. Despite the low response rate of this study, the findings show that human capital in a valuable resource and the entrepreneur has a significant role to play in determining the performance of their business ventures.

Based on the findings of this study, the study by Di Zhang and Bruning (2011) support the assumption of the first (1) hypothesis.

Fine, Meng, Feldmans, and Nevo (2012) carried out a study with the aim of establishing the psychological aspects and the effects of that these elements have on the performance of their organizations. The personality profile under review in this research includes tolerance for ambiguity, internal locus of control, risk-taking propensity, perseverance, interpersonal collaboration, and need for achievement. Much past research work has been conducted in Western countries, but not many have been done in China (Fine, Meng, Feldman, & Nevo, 2012). Their study therefore sought to provide an analysis...