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CHAPTER TWO. Identifying Entrepreneurial Characteristics. Chapter outline. Characteristics of Successful Entrepreneurs Entrepreneur Self Assessment The differences between Businessmen, Managers and Entrepreneurs. Villa College. Characteristics of an Entrepreneur a view point ………. - PowerPoint PPT Presentation
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CHAPTER TWO
Identifying Entrepreneurial Characteristics
2
Chapter outline Characteristics of Successful Entrepreneurs
Entrepreneur Self Assessment
The differences between Businessmen, Managers and Entrepreneurs
Villa College
3
Characteristics of an Entrepreneur a view point ………..
Ability to deal with a series of tough issues Ability to create solutions and work to perfect them Can handle many tasks simultaneously Resiliency in the face of set-backs Willingness to work hard and not expect easy solutions Possess well-developed problem solving skills Ability to learn and acquire the necessary skills for the
tasks at hand
Villa College
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Characteristics ………….
42 often attributed characteristics in the Encyclopedia of Entrepreneurs!!!!!!!!!!!!!!!!
Villa College
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Characteristics of an Entrepreneur… ..
Villa College
1. Hard work 8. Information seeking
2. Self Starting 9. Eager to learn
3. Setting personal goals 10. Attuned to opportunities
4. Resilience 11. Receptive to change
5. Confidence 12. Commitment to others
6. Receptiveness to new ideas 13. Comfort with skills
7. Assertiveness
Source: Philip A. Wickham, Strategic Entrepreneurship-3rd Ed. Prentice Hall, 2007
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Common characteristics associated with entrepreneurs by John Kao
Villa College
1. Total commitment, determination & perseverance
6. Realism & a sense of humor
2. Drive to achieve & grow 7. Seeking & using feedback
3. Opportunity & goal orientation
8. Internal locus of control
4. Taking initiatives & personal responsibility
9. Calculated risk taking & risk seeking
5. Persistent problem solver 10.Low need for status & power
11.Integrity & reliability
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According to Kuratko & Hodgetts ………
Villa College
1. Commitment, determination & perseverance
10.Integrity & reliability
2. Drive to achieve & grow 11.Tolerance for failure3. Opportunity orientation 12.High energy level4. Initiative & responsibility 13.Creativity & innovativeness
5. Persistent problem solving 14.Vision6. Seeking feedback 15.Self confidence & optimism7. Internal locus of control 16.Independence
8. Tolerance of ambiguity 17.Teem builder9. Calculated risk taker
Source: Kuratko & Hodgetts (2001)
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21st Century characteristics of entrepreneurs
Villa College
1. Recognize & take advantage of opportunities
6. Hardworking
2. Resourceful 7. Optimistic
3. Creative 8. Innovator
4. Visionary 9. Risk taker
5. Independent thinking 10.Leader
Source: Soo Ji Min, ‘Made not born’, ENTREPRENEUR OF THE YEAR magazine, (Fall 1999)
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A different classification
Villa College
Desirable attributes
Core attributes• Commitment & determination
• Leadership• Opportunity obsession
• Tolerance of risk• Ambiguity & uncertainty• Creativity, self-reliance
•Adaptability, motivation toexcel
Capacity to inspire
Values
Energy, health &
emotional stability
Creativity & innovation
Intelligence
The non-entrepreneurial attributes
Perfectionist
Counter / dependence
Knows it all
Being ‘macho’
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A Psychological approach Various branches of psychology have
attempted to find traits associated with successful entrepreneurs such as;
• Psychodynamic approaches – Freud• Biological approaches (Nature)• Evolutionary approaches• Behavioral approaches• Social cognitive approaches
HOWEVER, no straight relationship has been found in relations to entrepreneurial traits
Villa College
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A final set of Entrepreneurial Characteristics ???? Page # 12
Villa College
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Entrepreneurial Skills
What is a ‘skill’ ???????
- Knowledge which is demonstrated by action.
- It is an ability to perform in a certain way
Villa College
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Entrepreneurial Skills
Some General management Skills
Strategy Skills Planning Skills Marketing Skills Financial Skills Project Management Skills Time Management Skills
Villa College
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Entrepreneurial Skills
Some Human Relationship Skills
Leadership Skills Motivation Skills Delegation Skills Communication Skills Negotiation Skills
Villa College
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Entrepreneurial Skills
Villa College
Entrepreneurial Performances
General Management skills
Human Relationship skills
Individual Knowledge Personal Motivation
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Entrepreneurs, Businessman & Managers
Are these words synonyms???
Are they same or different in their traits?????
Are they doing the same thing?????
If not what are the differences?????
Villa College
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Types of Businesses
Owner Manager
Entrepreneur
Manager
Villa College
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Entrepreneurs Vs. Small Businessman
Villa College
Entrepreneur Small BusinessmanStarts the venture, assumes leadership & expands the venture to fulfill personal goals & attains self-accomplishment
Engages in business activities for the purpose of profit support his living & his family
Moderate risk taker Low risk takerTakes calculated risks Follows others & invests in tested &
proven markets
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Entrepreneurs Vs. Managers
Villa College
Entrepreneur Manager• Opportunistic • Need for independence
• Innovative • ‘Ability’ to live with uncertainty & take measured risks
• Self confident
• ‘Willingness’ to take greater risks & live with greater uncertainty
Differences in character traits………….
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Entrepreneurial focus Vs. Administrative focus
Villa College
Admin point of view Entrepreneurial point of view
What resources do I control? Where is the opportunity?
What structure determines our organization’s relationships?
How do I capitalize on opportunities?
How can I minimize the impact of others on my ability to perform?
What resources do I need?
What opportunity is appropriate? How do I gain control over these?
Source: Howard J. Stevenson & David E. Gumpert, 1995
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Entrepreneurial focus Vs. Administrative focus
Villa College
Admin point of view Entrepreneurial point of view
Strategic orientation
Driven by controlled resources
Driven by perception of opportunities
Commitment to Seize opportunities
Evolutionary, with long duration
Revolutionary, with short duration
Control of resources
Ownership or employment of resources
Episodic use or rent of required resources
Management structure
Hierarchy Flat with multiple informal network
Source: Howard J. Stevenson & David E. Gumpert, 1995
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Entrepreneurs Vs. Conventional Managers
Villa College
Entrepreneur Conventional ManagerViews rules as guidelines only Very conscious of rules & taboos
Concept of the future based on personal goals. Low threshold for frustration
Sensitive to the future & willing to postpone rewards
Ambivalent towards control, success, and responsibility. Can be manipulative & exploitative of others
Has a powerful need for acceptance
Impatient with discussions & theories. Is prone to action & seems impulsive
Able to identify problems in any course of action. Makes detailed plans
Source: Zimmer & Scarborough, Essentials of Entrepreneurship & small business management
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Characteristic differences between Entrepreneur & Manager
Villa College
Characteristic Entrepreneur Manager
Behavior Characterized by Desire for Control Delegation of Authority
Management Style One-Man Show Management Team
Driving Force Creativity - Innovation Establish and Preserve the Status Quo
Organizational Growth Rapid Reaction Strategic Planning
Organization Structure Informal, Flexible Organized
Decision-Making Intuitive Collect Information and Seek Advice
Definition of Aims In terms of "Vision" In Commercial Terms
Attitude to Money A By-Product Measure of Success
Attitude to Risk Calculated Risks Avoidance of Risks
Organizational Culture "Entrepreneurial Culture" "Management Culture"
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Types of Businesses
Owner Manager
Entrepreneur
Manager
Villa College
Often trade or craft based. May not grow to any larger size
Pursuit of growth & personal wealth through value addition
Manages a business belongs to someone else. Will build an organization putting in appropriate controls
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Life Cycle of Organizations
Villa College
Starting
Hi-growthDecline
Survival
Entrepreneurial Managerial
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Entrepreneur Self-assessment Key self-assessment instruments proposed by
Robinson, Stimpson, Huefner and Hunt (1991)
Key idea is to check how much Entrepreneurial spirit is available inside individuals…….
Villa College
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Entrepreneur Self-assessment Let’s take a self-assesment test!!!!!!!!!!!
Villa College