Characteristics of an Entrepreneur: Do you have what it takes?

In the modern age we hear the word entrepreneur used widely and frequently. However what does entrepreneurship really mean? Entrepreneurship is defined as the process by which a new venture is created when an individual (the entrepreneur) identifies a new opportunity in the market to create economic products and services. An entrepreneur is therefore someone who is willing and able to convert a new idea or invention into a successful innovation in the market through the establishment of a business venture. The innovation could be in the form of a product, a service, or a novel business concept or model.

The typical characteristics of an entrepreneur include:

1. An optimistic person with a vision
2. The ability to identify new opportunities
3. Calculated risk-taking
4. Responsible in decision-making
5. Overwhelming urge to succeed
6. Discipline and persistence
7. Confident and persuasive communicator
8. Driven by the sense of accomplishment
9. The ability to coordinate and manage scarce resources (time, money and people)

Studies according to Arthur Cole (1959) have identified four types of entrepreneurs:

1. The innovator
2. The calculating inventor
3. The over optimistic promoter
4. The organisation builder

Entrepreneurship is a very difficult undertaking, where many new businesses fail. Only a very small percentage (approximately 1%) of people who go into business succeed. Entrepreneurial activities range from solo businesses, many now being created online, to establishing large businesses employing large numbers of people. Entrepreneurs can also exist within established organisations; employees who identify new opportunities contributing to the growth of the existing organisation, or alternatively employees who eventually spin out new businesses. These entrepreneurs are referred to as intrapreneurs. An innovative high performing organisation should nurture and support the development of intrapreneurs as this activity can create significant growth for the organisation, either through the internal development and commercialisation of new ideas, or through the creation of subsidiary businesses. If organisations do not identify, nurture and support intrapreneurs then many will leave the organisation and create their own businesses.

Entrepreneurship has been identified by many economists, including Joseph Shumpeter (Austrian political economist of the 1930s), as a driving factor that creates value in the economy through the following benefits:

• Creating new jobs
• Expanding new markets
• Developing new products and services
• Satisfying domestic consumption
• Developing new and existing industries
• Income generation and economic growth
• Healthy competition creating higher quality products
• Supporting the existence of government and their budgets