CHARACTERISTICS OF AN ENTREPRENEUR – An entrepreneur should possess all such characteristics with the help of which he can perform his function in a successful manner. Some common characteristics of the entrepreneur can be commitment, leadership, risk bearing, performer, motivator, confident, etc. Some important features are being described here:
Characteristics of an Entrepreneur
(1) Calculated Risk Taker – Risk is as old as civilisation. It is generally stated that, no risk no profit. This means that no business can grow or earn profit without taking risk. Risk can te be defined as the probability that a particular outcome will result from a given decision. Thus risk is a probability of suffering loss. Every business situation involves the possibility of profit or loss. An entrepreneur always goes for a calculated risk taker. He does not work like a gambler rather he enjoys the risk. He accepts the risk as a challenge. He avoids the low risk situation due to absence of challenge but at the same time he does not involve himself in highly risky situation as he knows the chances of failure. He maintains a balance between two situations and goes for achievable/affordable challenges. He prefers to take realistic risk because he wants to succeed. So, an entrepreneurs are not risk taker rather they are risk eliminators. They work in such a way that obstacles that come in the way of their project can be removed.
(2) Desire for Responsibility – An entrepreneur attempts to change the factor combinations and thus increase productivity and profits. This is a fundamental characteristic of an entrepreneur who feels deep sense of personal responsibility for the results of the project he starts. He prefers to control over the resource, which he uses for achieving self determined goals.
(3) High level of Energy – Entrepreneur is more energetic than the ordinary man. Hard work and long working hours are common feature of an entrepreneur. They are inspired by inner urge and by the motivational stories of great achievers. The young intelligent and creative entrepreneur like to work 12 hours or more a day just to avoid having to work 8 hours a day for some one else.
(4) Innovator – An innovative entrepreneur sees the opportunity for introducing a new technique or a new product or a new market. He explores new market and he organises the enterprises. They are generally aggressive in experimentation and put the ideas into practice. Entrepreneur exploits the inventions commercially and thus produces news and better goods which give him profit and satisfaction.
(5) Creative – Creativity means that how a person reaches to such solutions which are novel as well as useful. Creativity is a special ability to find new ideas implementing such changes in an acceptable way. Further successful innovation depends upon the creativity. It is one of the most important requirements of an entrepreneur to be creative.
(6) Commitment and Determination – Entrepreneurs generally have high level of energy due to which they are committed to the successful execution of their plan. They are devoted to their business with a deep sense of determination for success. Both commitment and determination is generally seen in their action. They work hard day and night and set a benchmark for their employees also. As a founder, they often immerse themselves completely in their companies.
(7) Future orientation (Vision) – An entrepreneurs has a definite sense of probing for opportunities. He looks beyond the present and concerns himself with considering what can be done in the future rather than brooding on what was done in the past. They do not like to sit back. They stay focused on the future. Entrepreneurs are visionaries like J.R.D. Tata, Dhirubhai Ambani, Narayan Murthy, Aziz Prem ji etc. They work with a vision for growth, committed to constructive change.
(8) Self Confidence and Optimistic – Entrepreneurs direct their abilities towards the accomplishment of goals with ups and down in the strength. They have to face many ups and down in the business. But they believe in themselves and handle the situation confidently. They work with a positive approach and optimistic attitude. Entrepreneurs not only maintain their confidence and optimism, but they also raise the level of their team members also.
(9) Organiser – An entrepreneur knows now to bring together the right people for accomplishing a task. He effectively and efficiently combines jobs and people and transforms his vision into reality. In order to expand the business, he willingly delegates authority and trust upon his subordinates and manager.
(10) Integrity and Reliability – Entrepreneurs do not like to be controlled by others. They prefer to work independently specially for themselves. They like to take initiative for solving the problem. They always own the responsibility for the outcome of the project with which they are associated.
(11) Socially Responsible – Entrepreneur remains fully aware abut his responsibility towards society. He understands that fact the society also expects from him. He tries to do so by creating employment opportunities, by creating new product, innovative products, quality products, fair price and quality assurance etc. He does things in an effective and efficient way. Proper Utilisation of resources made by him, i.e also considered as a contribution to society. So, the old concept of making profit for only himself is no more followed or accepted these days.
(12) Flexibility – Entrepreneur keeps himself updated regarding changes in the environment. He is capable of adapting himself to the varying demands of business and customers. He clearly understands that rigidity may lead to failure in today fast changing global economy.
(13) Technically Competent – Technological change is the prime mover in the process of economic growth. Inventions and innovation have led the process of development in the world. The success of an enterprise largely depends upon the adoption of the present prevailing technology. Entrepreneurs are technically competent these days. They generally have a reasonable level of technical knowledge. They keep themselves updated in the changing pattern of production, suited to their requirement.
(14) Communication Ability – Communication plays an important role in the success of an enterprises. Entrepreneurs these days possess the quality of good communication. They are well equipped with the importance of communication and the use of latest technology in the process of communication.
(15) Tolerance for Ambiguity – Entrepreneur tend to have a high tolerance for ambiguity, especially in the face of uncertainty and unknown outcomes. They exhibit “a willingness to jump in to things when it’s hard to even imagine what the possible set of outcomes will be”. They handle the uncertainty with their will and skill by making bold decisions. They face the adversity badly and bravely.