What it takes to be a Successful Enterpreneur - Essay Example

What it takes to be a Successful Entrepreneur Contemporary organizations have spurred the growth and development of communities and influenced the productive financial returns in various sectors of global economies. If one takes a closer evaluation of the most successful endeavors, there are great possibilities that these organizations were built and run by entrepreneurs. According to authors Stevenson and Amabile, the origin of the term entrepreneur, literarily defined as “’undertaker’—has been around for over two centuries, having been introduced in the early eighteenth century by the Parisian banker Richard Cantillon” (Stevenson and Amabile par. 1). In this regard, the essay aims to proffer crucial information that would describe entrepreneurial behavior and what it takes to be a successful entrepreneur. The discourse would be presented through an initial discussion of diverse definitions of the term entrepreneurship from secondary sources, prior to delving into one’s personal contention and point of view. In addition, the common traits or characteristics of successful entrepreneurs would likewise be determined and expounded. Finally, the remarkable experiences of some of the most successful entrepreneurs would be perused. A concluding portion would highlight the relevant points discussed through the paper. Definition of Entrepreneur According to Endres and Woods, an entrepreneurial behavior exemplifies manifestation of “the motives and acts enabling entrepreneurs to reach decisions in their roles as creators of profitable opportunities and as exploiters of those opportunities” (Endres and Woods 2-3). New Combinations, a website devoted to social studies of entrepreneurship has complied definitions of the term from The Handbook of Economic Sociology by Smelser and Swedberg, where Howard E. Aldrich has been cited to provide an effective and concise summary of various definitions of entrepreneurship, to wit: (1) the setting up of high-growth and high-capitalisation firms (as opposed to low-growth and low-capitalisation ‘lifestyle’ businesses); (2) innovation and innovativeness leading to new products and new markets (the Schumpeterian tradition); (3) opportunity recognition (the Kirznerian tradition); and (4) the creation of new organisations (New Combinations par. 1). From among these definitions, one observed that for an activity to be categorized as entrepreneurial, the endeavor must be innovative, leading to a discovery of something new (products, services, markets or organizations), and entails the use of vast resources to achieve high returns. Characteristics of Successful Entrepreneurs In a study conducted by Acharyaa, Rajanb, and Schoarc, they identified that the characteristics of successful entrepreneurs are actually categorized according to: (1) psychological traits (achievement motivation, locus of control, meta-cognitive activity, need for dominance, passion for work, and self efficacy); and (2) cognitive reflection (IQ), risk aversion and time preference (Acharyaa, Rajanb and Schoarc). These authors’ findings indicate that successful entrepreneurs exhibit achievement-motivated behaviors where achievable goals are clearly set and strategies effectively designed to attain them. They are manifest internal locus of controls, described as “they personally are in control of their destiny and that luck and fate have only a modest influence on the outcome of events. For internals, personal destiny comes from within and therefore they tend to be self-reliant and independent” (Acharyaa, Rajanb and Schoarc 5). In addition, successful entrepreneurs were deemed to be good meta-cognitive skills learners, defined as “taking conscious control of learning, planning and selecting strategies, monitoring the progress of learning, correcting errors, analyzing the effectiveness of learning strategies and changing learning behaviors and strategies when necessary” (Ridley et al. 1992; cited in Acharyaa, Rajanb and Schoarc 6). They also exude extraordinary passion for their work and manifest “self-efficacy beliefs (that) determine how people feel, think, motivate themselves and behave. Entrepreneurs are perceived as having a high level of assurance in their capabilities and who approach difficult tasks as challenges to be mastered rather than as threats to be avoided” (Acharyaa, Rajanb and Schoarc 7). In terms of expounding on the cognitive reflection, entrepreneurs were revealed to have high cognitive abilities; are risk-takers; endure considerable patience and due diligence in decision making (Acharyaa, Rajanb and Schoarc). The study was compared with Glick-Smith’s research that provided the following common traits in a successful entrepreneur (where success was measured in terms of being in business not less than five years and generating a revenue of not lesser than $1 million) (Glick-Smith): “possessing good health, need to control and direct, exudes self-confidence, manifests a sense of urgency, exemplifies awareness in a more comprehensive manner, maintains a realistic outlook and perspective, possessing a conceptual ability, low regard or need for status, has manifested emotional stability, possessing strong attraction to challenges, and describes with numbers. The common features of these studies are in terms of disclosing parallel traits in the need to direct or control, having high achievement-motivation drives, exemplary cognitive abilities and risk takers that enable them to capture exemplary opportunities in the external environment. Famous Entrepreneurs From among the most famous successful contemporary entrepreneurs, the following are highly commendable in terms of the magnanimity of their achievement and the remarkable contribution they have given to society: Bill Gates, Oprah Winfrey, Steve Jobs, Donald Trump, Sam Walton, Steve Wozniak, to name a few. These entrepreneurs embody the characteristics and traits above mentioned; and in addition, they have repeatedly informed the public that they are not afraid of failure. The passion for their work could never be overemphasized and their respective contributions to society continue to influence positive growths and developments which would continue to pervade future generations. Conclusion The essay has achieved its objective of proffering crucial information that would describe entrepreneurial behavior and what it takes to be a successful entrepreneur. Through the review of related literature on the subject, the definition of the term ‘entrepreneur’ was expounded to contain elements such as being innovative, leading to a discovery of something new (products, services, markets or organizations), and entailing the use of vast resources to achieve high returns. The common characteristics and traits of successful entrepreneurs converge to exhibiting an internal locus of control; manifesting high achievement-motivation drives; possessing exemplary cognitive abilities and being risk takers. Through the inspiration and example of famous contemporary entrepreneurs, people continue to benefit from their knowledge, talent, skills and abilities, as they aspire to make this world a better place to live in. Works Cited Acharyaa, Viral, Abhilasha Rajanb and Antoinette Schoarc. WHAT DETERMINES ENTREPRENEURIAL SUCCESS?—A PSYCHOMETRIC STUDY OF RURALENTREPRENEURS IN INDIA. London: Institute for Financial Management and Research, n.d. Endres, Anthony M and Christine R Woods. Schumpeter’s ‘Conduct Model of the Dynamic Entrepreneur’: Nature, Scope and Distinctiveness. 12 September 2009. 11 December 2011 . Glick-Smith, Judith L. Successful Entrepreneurs. 12 August 2010. 12 December 2011 . New Combinations. Definitions of Entrepreneurship. 25 May 2011. 12 December 2011 . Stevenson, Howard H and Teresa M Amabile. The Intellectual Underpinnings of Entrepreneurial Management. 12 October 1999. 12 December 2011 . Read More