Characteristics of an Entrepreneur

Entrepreneur

Someone who takes risks and starts a venture to solve a problem or to take advantage of an opportunity

Someone who provides an innovative product or service to meet a consumer want or need

Characteristics of an Entrepreneur

Entrepreneurs have most of these characteristics:

Risk Taker Goal-settingPerceptive HardworkingCurious Self-confidentImaginative FlexiblePersistent Independent

Risk-Taker

Many entrepreneurs take on a high degree of risk

Higher risk = Greater reward To be successful, an entrepreneur

must minimize and manage risk Not possible to eliminate it completely

Perceptive

View problems as opportunities or challenges

Tackle problems head-on Do not avoid them

e.g. Cott Corporation Had to compete against soft-drink

giants Coca-Cola and Pepsi Developed a new distribution system

and private-label soft drinks that could be packaged under a retailer’s label, e.g. PC

Curious

Entrepreneurs like to know how things work

They are interested in many aspects of the business from production to marketing and sales

Imaginative

Entrepreneurs are creative They come up with new ideas, new

products and/or imagine solutions to problems

They have a vision They can see where they want to

get to

Persistent

There are many challenges with setting up a new business including: Red tape Finding enough money (especially

during start-up) Stress Misreading the market

Entrepreneurs will stick with their ideas and keep trying

Goal-setting

Many entrepreneurs are motivated by the excitement of starting up new ventures

Once a goal is achieved, they need a new one to work toward

Hardworking

Many entrepreneurs work long hours even after their business is open and successful

They are driven to succeed e.g. J.M. Schneider worked in a button

factory during the day and made sausages in the evening

Self-confident

Entrepreneurs believe in themselves They must be convinced that their

ideas are worth the effort May have doubts, but their

confidence will help them overcome their doubts

Flexible

The only constant is change Products change, consumer tastes change

An entrepreneur looks at change as an opportunity

Must be flexible to adapt to changing trends, technology, markets, rules and regulations, economic developments

Independent

Most entrepreneurs want independence They don’t like to be told what to do They want control

They like to make their own decisions and generally don’t thrive in a controlled environment

Entrepreneurial Skills

Skill The ability to do something specific or to

translate knowledge into action e.g. knowing how to cook, knit, woodworking skills

It is easier to learn a skill than a characteristic

Enables you to translate knowledge into action

To succeed, you must have a variety of skills including: research, management and relationship skills

Research Skills

Need to be able to complete marketing and accounting tasks, as well as selling activities

Must identify what you need to know, and then use research to find it

Must be able to learn or acquire the knowledge you need

First step in obtaining knowledge is to ask a good question

Gathering Information

There are many sources of information including: books, periodicals (magazines), indexes, databases, school, professionals (lawyers and accountants)

Federal government websites are also helpful for obtaining information on various industries and markets

Using Information

Not all information can be used Information gathered must be

sorted through to answer your initial question

The answer may lead to additional questions and answers will become more specific and focused as the business develops

Management Skills

Remember that management performs four functions: planning, organizing, directing and controlling

An entrepreneur achieves goals by applying management skills to their personal, financial and material resources

Must be careful not to overplan Must organize your time and

empower staff

Relationship Skills

Different relationships are necessary including those with staff, suppliers and customers

Employees need to feel that they are treated fairly and that they are rewarded for hard work

Communication is critical