CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS
What kinds of people become successful entrepreneurs? Clearly, no well-defined entrepreneurial profile exists; individual entrepreneurs differ greatly from each other. Knowing this should encourage you if you wish to start your own business: You do not have to fit some prescribed stereotype.
Some qualities, however, are common among entrepreneurs and probably contribute to their success. One of these characteristics is a strong commitment to or passion for the business. It is an attitude that results in tenacity in the face of difficulty and a willingness to work hard. Entrepreneurs do not give up easily. In fact, on most days they are confident of their ability to meet the challenges confronting them. They believe that success depends on their own efforts, as opposed to luck or fate determining their success. That is not to say that they do not have down days when they cannot clearly see how they will survive.
Entrepreneurs are also portrayed as risk takers. Certainly, they do assume risk. By investing their own money, they assume financial risk. If they leave secure jobs, they risk their careers. Starting and running a business can place stress on the entrepreneur’s family. After all, when someone with a family starts and runs a business, the whole family is affected, and this must be considered. Even though entrepreneurs assume risk, they are usually what we might term moderate risk takers—accepting risks over which they have some control. Some entrepreneurs are so focused on the opportunity that they do not even think they are taking a risk.
Doug Hall, founder and CEO of Eureka! Ranch, believes that entrepreneurs must first and foremost have the courage and inspiration to embark on any new business venture. He calls it a “Maverick Mindset,” which for him is the willingness to take the “riskier, rockier, less-traveled path because you know it’s right. It takes this courage to turn a dream into reality. An entrepreneur’s dream can’t begin to happen until he/she finds the courage to take the first step, even if it is a small step.” His advice: “Stop saving yourself for tomorrow. Start living now. Get up, get out, get going!”42
Timmons and Spinelli have summarized research on entrepreneurial characteristics. The entrepreneurs they describe as having and exhibiting “desirable and acquirable attitudes and behaviors” fall under the following six descriptors: 43
1. Commitment and determination—tenacious, decisive, and persistent in problem solving
2. Leadership—self-starters and team builders who focus on honesty in their busi¬ness relationships
3. Opportunity obsession—aware of market and customer needs
4. Tolerance of risk, ambiguity, and uncertainty—risk takers, risk minimizers, and uncertainty tolerators
5. Creativity, self-reliance, and adaptability—open-minded, flexible, uncomfortable with the status quo, and quick learners
6. Motivation to excel—goal-oriented and aware of personal strengths and weaknesses
On the other side of the coin, there are some attitudes and behaviors that should be avoided at all cost. An almost certain way to fail as an entrepreneur, and there are many who have done just that, is to do the following:
1. Overestimate what you can do.
2. Lack an understanding of the market.
3. Hire mediocre people.
4. Fail to be a team player, which is usually the result of taking oneself too seriously.
5. Be a domineering manager.
6. Not share ownership in the business in an equitable way