Entrepreneurship
Entrepreneurship
Kirzner (1979) thinks of entrepreneurship as the result of superior alertness exhibited by selected individuals in the population. Stevenson and Entrepreneurship is the process of value creation by combining resources to take advantage of an opportunity. Churchill and Muzyka (1994) characterizes entrepreneurship as a process that takes place in different environments and settings that causes changes in the economic system through innovations brought about by individuals who generate or respond to economic opportunities that create value for these individuals and society.
The Entrepreneur
There are different definitions of what an entrepreneur is. Joseph Schumpeter (1966) one of the pioneers in the study of entrepreneurship believed that an entrepreneur acts as a motivating force that facilitates changes in technology and a driving force behind economic development. According to Schumpeter (1966), the main task of an entrepreneur is to transform or modernize the mode of production. An entrepreneur accomplishes this by developing an invention or an innovative technology in the production of new goods or producing new ones in a revolutionary way, by discovering a new source of supply of materials, or a new outlet for products or by reorganizing an industry (p. 132). An entrepreneur is innovative. Entrepreneurs seek to make money by pioneering innovations. Entrepreneurs assume risk. They manage the people around them, discover new ways of doing things and find new products and markets.
McClelland (1961) also ties the entrepreneur to the elements of economic change and growth. However, he views entrepreneurs in the light of psychology and defines their characteristics and traits that will likely make them business innovators. McClelland sees the entrepreneur as the one who translates his individual need for achievement into economic development. According to McClelland, an entrepreneur is responsible for organizing the firm and increasing its production (p. 105). McClelland believes that an entrepreneur posses a high level of individual need for achievement. This need causes them to act in certain ways when faced with different business situations. One of the most crucial elements in most business situations is decision making, especially in the face of uncertainty. When faced with uncertainty, an organization is forced to take risks. The entrepreneur, driven by his or her need for achievement, undertakes actions that have moderate risk characteristics, rather than those at either end of the risk scale. The reason for acting thus lies in the satisfaction of his need to achieve because of the predetermined nature of the result. An entrepreneur according to McClelland succeeds on situations in which he can get a sense of personal achievement through taking responsibility for success and failure (cited in Roberts 1991, p. 48).
Another characteristic of an entrepreneur is he or she is hard working. However, an entrepreneur seeks to do things in an innovative rather than a traditional manner. They work harder when challenged and when the work to be done calls for creativity rather than standard procedures. They constantly monitor their achievements either in the form of feedbacks or production and profit measures. Entrepreneurs are future oriented in that they think ahead more in their decision-making. Lastly, McClelland (1961) defines an entrepreneur as someone who coordinates the efforts and activities of other people. Entrepreneurs are effective leaders. They are able to lead the people around them in order to fulfill their entrepreneurial desires.
Characteristics and Personality Traits of Entrepreneurs
Traits and Characteristics that I Posses
1. Innovative
According to Carland et al (1984) an entrepreneur is characterized principally by innovative behaviour and will employ strategic management practices in the business (cited in Furnham 1999, p. 168).
I believe that I posses an innovative behavior. In dealing with different situations, I always think of new ways of accomplishing my goals. I am not afraid to get out of my comfort zone and take challenging tasks. I always make it a point that I learn new things continuously. For me being open to new things and having a desire to learn will develop my innovativeness.
2. Have a High Need for Achievement
According to McClelland (1962), entrepreneurs have a high need for achievement. Need for achievement is the desire to perform in terms of a standard of excellence, to be successful in competitive situations or, according to Atkinson (1968) a capacity for taking pride in accomplishment when success at one or another activity is achieved.
I can say that I have a high need for achievement. I constantly challenge myself by taking on different roles and responsibilities. I always engage in new activities. I am not afraid to try new things. I always try to explore and discover. I think of ways to make my tasks and project easier to accomplish. I take responsibility for the outcome of my performance. I welcome feedbacks and suggestions in order to have a clear idea of my strengths and weaknesses. I always want to excel. For example at school, I always make it a point that I participate in classroom discussions. I want to do well in the exams so I review ahead of time. I show my high need for achievement by joining competitions and participating in extra-curricular activities. By joining competitions and extra curricular activities I discover my strengths and weaknesses.
3. Risk Taker
According to Miner et al (1989) an entrepreneur has a desire to take risks that can be handled through his or her own efforts. According to Mill (1984), risk bearing is the key factor in distinguishing entrepreneurs.
I always find myself in situations where I need to choose. I am a risk-taker. Risks present challenges and challenges are opportunities for learning. As an entrepreneur, one must study and analyze the situation first before taking action. I can say that I am not afraid to take risks but I also analyze the situation first. For example, in doing school projects I always try to come up with unique things. I try different methods and techniques. An entrepreneur must be a risk taker. According to Schumpeter (1966), an entrepreneur is someone who introduces innovations and new ways of doing things. In order to be an effective entrepreneur, one must be willing to take risks. Innovations are often risky.
4. Self Confident
According to McClelland (1987) an entrepreneur is able to express his confidence in his own ability to complete a task or meet a challenge. I know my strengths and weaknesses. I am not afraid to fail and make mistakes. One instance that I think I showed confidence was when I participated in a competition back in high school. I did not get intimidated by the other participants. Although, I know that some of them are smarter than me, I did not back out. I was confident of my self.
5. Determined
The successful entrepreneur is described as having strong drives for independence and success. He exudes determination to the point of single mindedness (Roscoe 1973). As an individual, I can say that I exude determination. I always want to finish the tasks that I started. I show my determination when I have a task in hand. Before there was a group project that we did in school. Unlike my other group mates, I finished my tasks first before I rested.
Traits and Characteristics that I Need to Work On
1. Effective Leader
According to Meredith et al (1982), entrepreneurs are people who have the ability to see and evaluate business opportunities. They are able to gather the necessary resources and are able to take advantage of them. In order to ensure success, entrepreneurs initiates appropriate action (cited in Furnham 1999, p. 168). An entrepreneur is able to plan systematically. He breaks down a large task into subtasks, or sub-goals. He anticipates obstacles and evaluates alternatives. According to Kao (1989) an entrepreneur is often a leader who relies on people to accomplish purposes and objectives. A successful entrepreneur must also be a people manager or an effective leader and mentor who motivates, directs, and leads people.
I think one of the areas that I need to further develop is my leadership ability. I am used to doing things alone. I think I am able to accomplish more when I work independently. An entrepreneur needs people that will share his or her vision and will work towards its achievement. In order to become a successful entrepreneur, I know that I have to become an effective leader.
2. Relationship Builder
Entrepreneurs play different roles such as manager, leader, follower and so on. In order to act out appropriate roles, the entrepreneur needs to engage in various activities. The entrepreneur needs to be able to communicate and deal with other people effectively in order to be successful (Chell 1985). An entrepreneur initiates in the building of rapport and friendly relationships. He sees interpersonal relationships as a fundamental business resource (McClelland 1987).
I know that in order to become a successful entrepreneur, I need to deal with people effectively. I still need to develop and improve my interpersonal skills. Being independent, I spend more time working alone. Building harmonious relationships with the people I work with is important.
3. Intuitive
According to Olson and Bosserman (1984), an entrepreneur must be intuitive. Intuitive thinking applies to the initial step of the process where new ideas are produced as a function of the imagination, not the senses. The entrepreneur must become aware of the environment, view it in different ways and find new connections between previously unrelated subjects. Solutions should be found intuitively by divergent thinking patterns (cited in Furnham 1999, p. 183).
Sometimes I lack imagination. This happens when I am pressured. I sometimes fail to analyze a situation properly. Sometimes I fail to grab an opportunity because I am so focused on accomplishing the task.
4. Rational and Realistic
According to Olsom and Bosserman (1984) an entrepreneur must be rational. Being rational entails being logical, sequential and analytical. The entrepreneur must be rational in his understanding of the environment. Being rational is important when the entrepreneur must determine success potential, analyze ideas, projects and plans, and communicate them, and do planning and implementation. Another important characteristic is being realistic, that is, being able to deal with things and situations effectively.
Sometimes I let my emotions affect my decision. I must be able to think and act rationally. Sometimes when I find myself in stressful situations I cannot think straight. Sometimes I got confuse when there are things that I cannot understand or when I think that I cannot accomplish a task or responsibility.
5. Inspirational
Entrepreneurs see things in different light. These individuals are able to present ideas, concepts, and beliefs that are interesting, intriguing, or stimulating (Garfiled 1986).
Being inspirational needs interpersonal skills. I need to be able to communicate my ideas and thoughts. I need to make other people comfortable with me. I also need to make them feel that I understand and that I am willing to listen to them.
Summary
An entrepreneur is described as someone who is innovative and creative. An entrepreneur facilitates change. An entrepreneur transforms production and the way of doing things. An entrepreneur is hard working and has a high need for achievement. He is also a good leader and he is able to inspire the people around him. Considering all the traits and characteristics that has been discussed I would say that I can be an entrepreneur. I can be an entrepreneur because I have a clear idea of my strengths and weaknesses. I think being able to identify my strengths and weaknesses is the first step to becoming a successful entrepreneur.
References
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