Entrepreneurial Personality

Entrepreneurial Personality – the sum of habit patterns or conditioned responses to various stimuli required for a successful career in entrepreneurship.

Characteristics of Entrepreneurs

1.       Drive

Persons with drive are those identified as willing to accept responsibility, possess vigor, initiative, persistence and health.

2.       Sufficient thinking ability

Solutions to entrepreneurial problems and innovations in whatever form will require superior thinking ability. So, skills in abstract thinking and use creative means are very important traits of the entrepreneur.

3.       Human relations

Since the entrepreneur cannot avoid dealing with people either as customers or employees, he must have sufficient human relation skills to effectively motivate customers to buy or employees to work.

4.       Communication

There are times where the action solicited from either customers or employees could not be realized because neither of them could comprehend what is required by the entrepreneur. Oftentimes, the ability to communicate resolves the problem.

5.       Technical knowledge

This refers to the various skills needed to perform the job of the entrepreneur. Ex. simple office machine operation, bookkeeping, etc..

6.       Reasonable risk takers

Risk is something we cannot completely get off our backs. Entrepreneurs are expected to be reasonable risk takers, not conservative but also not gamblers. They accept the risks but only after they are convinced that they have the skills to overcome the difficulties inherent in a venture.

7.       Self confident

Confidence is one’s ability to achieve can do a lot of wonders to a person. Drive is what pushes entrepreneurs to action, just like the engine of a car. Self-confidence is the lubrication that makes drive (the engine) easier to move.

8.       Accountable

Accountability refers to the responsibility for results. An entrepreneur must be willing to take the blame or accept honor for whatever happens to his venture.

9.       Goal Setter

Goal setting provides direction. One who is a goal setter provides a glimpse of the orderliness of that person’s thinking process.

10.    Innovative 

When competition becomes tough and the market become too sluggish, innovation will save the entrepreneur.

Filipino Cultural Values Favorable to Entrepreneurship

1.       pakikipagkapwa – human relations

2.       hiya – loss of face

3.       pakikisama – togetherness

4.       pakikibagay – adjusting/adapting to others

5.       malasakit – concern

6.       utang na loob – gratitude

7.       amor propio – self-esteem

8.       bayanihan – cooperative spirit

9.       kasipagan – industriousness

10.     pagkamatipid – frugality

11.    mapagtimpi – self- control

12.    matapat - honest  

The Entrepreneur and The Manager

A major distinction between an entrepreneur and a manager is about orientation.  

-          The entrepreneur (also alternatively called promoter) feels confident of his ability to seize a business opportunity regardless of the resources under current control.

-          The manager(also alternatively called the trustee) emphasizes the efficient  utilization of resources.

Entrepreneurial Decision Process

A person decides to do something either because something in that activity lures him or he takes it as option in lieu of something else, ( he is forced to do it by people or circumstances.)

The factors which lure a person to become entrepreneur are called Pull factors and the factors that compel him are called Push factors.

Pull Factors

(a) Perception of Advantages – If a person feels that he can earn better or overall gains in terms of money. Status, security, future, etc as an entrepreneur are better than working as an employee, he tends to turn an entrepreneur.

(b) Spotting an Opportunity – Many employees spot a business opportunity in the course of their work and decide to exploit that opportunity rather than pass it on to their employer. Many employees buy unsuccessful businesses at throw away prices from their former employers and turn them around.

(c) Government Policies – Governments very often formulate policies to promote certain business activity or backward areas which offer tax concessions/holidays, cash subsidies, cheap land, etc, which improve success and profit prospects.

(d) Motivation from biographies or success stories.

(e) Influenced by Culture, Community, Family Background, Teachers, Peers,

Push Factors

(a) Job Dissatisfaction – Many people start their own venture because they feel dissatisfied with their existing jobs/boss/work environment.

(b) Relocation – Repeated or especially unhappy relocation sometimes prompts some people to entrepreneurship.

(c) Joblessness – This is the biggest source of micro level entrepreneurships. Many parents help their academically poor children, who fail to find a job, to start their own micro ventures. But success rate in such ventures is poor. The very traits responsible for their academic failure lead to business failure.

(d) Lay off – Layoffs often lower the market value of an employee to half. Thus, if a person is laid off and he is unable to find a suitable job for him, he might think of starting his own business.

(e) Retirement – Many retired, but physically and mentally fit, people start their own business either to supplement their pension/savings or just to keep themselves gainfully occupied.

(f) Boredom – This is applicable to many ladies from well to do families. With their army of servants to take care of home, they find an avenue to keep the boredom away and start ventures like boutiques, fashion designing, etc.

Factors Favoring Growth of Entrepreneurship

Following are the major factors which favor growth of entrepreneurship in a country

1. Developed Infrastructure Facilities – Availability of infrastructure reduces the cost

& efforts and improves viability of projects through higher profit margins.

2. Financial Assistance – Easy availability of cheap funds is vital for promoting entrepreneurship.

3. Protective and Promotional Government Policies – Most of the entrepreneurship projects start very small and have no resilience. They are extremely vulnerable to competitors, market, money markets, etc, for considerable time. Favorable government policies shelter them from such vagaries.

4. Growth of Education– Science, Technology & Management – Growth of education is believed to be promoting entrepreneurship. However, there are enough examples to suggest otherwise. A very large proportion of first generation entrepreneurs are low educated. Take the case of Microsoft Chairman Mr Bill Gates

5. Risk Taking Attitude – Risk taking attitude is one of the pillars of entrepreneurial spirits.

6. Hunger for Success (Capitalistic View) – Dreams of riches and fire in the belly is what drives most entrepreneurs on this risky path. Any person content with what he has would take the easier route of salaried job.

7. Environment/Culture Impact – Entrepreneurship is contagious. There are communities that are

are historically entrepreneurial. They are known for seeking and exploiting business opportunities in most remote areas. It is a culture that propels them.

8. Social Security – Social security acts as a safety net against failure of enterprise.

Entrepreneurial spirit of United States is born partly out of this security.

9. Technical/Industrial Training Facilities – Industrial Training facilities on one hand generate skilled manpower so vitally required for setting up enterprises while on the other hand they are also nursery for future entrepreneurs. Among the educated entrepreneurs, a majority is product of technical institutes.

10. Globalization – Globalization has provided another avenue for business. Many dare

devils have taken a head– along plunge into this uncharted water and have written

new success stories.

11. Economic Growth Rate of Country – A growing economy creates more demand

and improves prospects of success.

12. General Business Environment – External environmental factor i.e. political, socio

cultural, technology, legal, economic affect growth of entrepreneurship.