Traits of Successful Entrepreneurship - Coursework Example

Introduction Entrepreneurs possess a number of traits that are said to be inherent and essential to success in their career path. Several of these traits are intelligence and being well educated (though not necessarily formal education), resourcefulness, creativity, tenacity, enthusiasm and optimism, independence or need for autonomy, innovativeness and openness to innovation, and leadership quality. Entrepreneurs also demonstrate tight control over financial management and good communication skills (Hines 2004). Traits of Successful Entrepreneurship Entrepreneurs should demonstrate intelligence and be well educated. The European Commission (2006) believes that high quality entrepreneurship can be achieved by increasing the level of entrepreneurship education. They believe that this can be achieved by promoting and implementing it in their curriculum and programs. Moreover, intelligence is not solely based on exams and aptitude tests. This is reflected in a study by Nunez (1994) on Brazilian street children. The children demonstrated efficient mathematical skills when it came to computing change, discount and purchases of their products, but when they are placed in a classroom setting, the children where unable to solve mathematical problems. This kind of intelligence is what they call practical intelligence, which cannot be simply measured by academic tests (Sternberg 2004). These two types of knowledge which allow entrepreneurs to be analytical, creative and practical are vital, and without which, successful entrepreneurship is not possible. It provides an entrepreneur with the necessary skills to create solutions and strategies during tight situations. Having proper education and adequate knowledge will allow an entrepreneur to efficiently allocate available resources like technology and globalization to improve. Proper use of knowledge and resources can serve as an advantage over competitors. It has been said that creativity is what differentiates entrepreneurs from managers (Bird 1988). Their ability to be innovative in finding solutions to road blocks and problems is the factor that keeps them afloat in a competitive and dynamic environment. Without these traits, they can be easily taken-over by other companies. Creativity is compelled by the dynamism of the environment. Studies show that entrepreneurs demonstrate higher level of creativity in a dynamic setting in contrast to stable environments (Baron and Tang 2009). In fact many companies, such as 3M, maintains as working environment where creativity of their employees can be fostered and developed (Ko and Butler 2007). Likewise, China, Hong Kong and other developing countries are already trying to move past imitating popular products but developing their own. It can be defined as adding a new feature to a product that would make it unusual yet attractive (Sternberg 2004). Entrepreneurs should not be satisfied by being part of the crowd, but think ahead of the flock. For example, french fries are common food offered in fast foods but McDonalds introduced the twister fries. Its still fries but being twisted caught the attention of consumers especially children. This approach allowed them to be noticed by the consumers even though there are other tight competitors in the market. This trait is also shown in enterprises like big global brands such as Revlon, Polaroid and Hyatt hotels. These companies despite differences in industry type, according to reports, share the characteristic of creativity and they applied such creativity even to the simplest of details like the packaging of their products. Creativity need not be something big, but something that others do not possess. Another example of creativity is Avon when they addressed the needs of people who enjoy outside activities like camping. Instead of buying a moisturizer, UV cream and mosquito repellant individually, they combined a moisturizer, UV blocking cream and bug repellant all in one. By developing a 3-in-1 product, they easily convinced consumers to buy their products and be relieved of the hassles of buying three different products. Tenacity is one inherent characteristic to entrepreneurs. They have a tough inside that allows them to stay afloat even during down and difficult times. Hanging in there and staying committed to achieving the goal despite repeated failure is very crucial, especially to new ventures. Majority of successful entrepreneurs have been shown to fail in the beginning, learned from it, and transcended their failures. Experiencing failures can be used as first-hand information for entrepreneurs, on things that should be improved, changed, or maintained. Failing once should not hinder an individual from trying again, and this is where an entrepreneurs tenacity is needed. In Walt Disneys Steamboat Willie, they lost partners and money, but were able to transcend the failure (Eliot 2003). Moreover, Tide, a soap product, initially experienced a variety of problems that almost made Proctor and Gamble close the product (Dyer, Dalzell and Olegario 2004); however, they decided to pursue it amidst difficulties and that entrepreneurial tenacity paid off. A study also showed that 70% of entrepreneurs find taking risks appealing (Brandstätter 1996). Entrepreneurs are highly risk takers and they find enjoyment in the process (Cox and Jennings 1995). Entrepreneurs also demonstrate optimism or thinking what is good and best in everything. This is also defined as the bias towards all that is positive in nature. This characteristic can be attributed to entrepreneurs motivation for success. It also allows entrepreneurs to cope and emotionally adapt to roadblocks in their goals. Positivism is also vital when accepting criticisms. A study by Liang and Dunn (2008) tried to establish whether entrepreneurs are really optimistic or realistic. Furthermore, it measured the level of optimism among entrepreneurs. The results show that 14.1% of the respondents are optimistic and 33.1% are both optimistic and realistic. The study also indicated that male entrepreneurs (75%) are more optimistic than female, and that female entrepreneurs (41.5%) tend to be more realistic than optimistic. Moreover, it was established that entrepreneurs in rural areas (60%) are more optimistic, while entrepreneurs in urban areas (64.1%) are more realistic. In terms of experience, entrepreneurs with no prior experience (35%) are more optimistic. It was likewise shown that those entrepreneurs who have managerial experience of six years and above (53.8%) are more optimistic than those who have managerial experience of five years and below (52.2%). Lastly, it was established that married entrepreneurs (85%) are more optimistic in contrast to single entrepreneurs (Liang and Dunn 2008). In addition, independence or need for autonomy is inherent to entrepreneurs. It was even reported that this trait is subconscious in nature and is commonly the reason behind why younger people engage in entrepreneurship. Majority of entrepreneurs know what they want and how they want to achieve it. A study compared the level of independence between entrepreneurs who built their own businesses and those who have inherited it from parents or relatives. The study showed that those who built their own businesses are more self-assertive, stable and independent in contrast to those whose business were inherited (Brandstätter 1996). An interview with Ben Levitsky, an entrepreneur who founded Chemco Group, which manufactures petrochemical products used in rental garages, has mentioned that majority of his workload is focused on managing financial matters, especially minute details. Ben personally takes care of financial matters like expenditures, returned checks, and bank statements. His control in the area of financial matters contributed to his autonomy in his ventures (Kisfalvi 2002). Entrepreneurs also possess leadership qualities that allow them to lead their employees, relate to them, empathize and encourage them to perform actively towards their individual success as well as the company. A study by de Jong & Hartog (2007) determined specific leadership behaviors of entrepreneurs and its effects in their employees. The study established thirteen leadership behaviors, namely: innovative role-modeling; intellectual stimulation; stimulating knowledge diffusion; providing vision; consulting; delegating; support for innovation; organizing feedback; recognition; rewards; providing resources; monitoring; and task assignment (de Jong and Hartog 2007). In terms of innovation role-modeling, Shalley and Perry-Smith (2001) emphasized those entrepreneur leaders who demonstrate creativity allows employees to determine what ideas are accepted as creative. Leaders can also stimulate the intellectual potential of their employees. A respondent on the survey mentioned that he encourage his employees to think outside of the box, something not illegal but can act as a solution to obstacles and problem. Respondents also agree that dissemination of information about organizational problems aids in the employees’ generation of possible solutions. It is also important that employees are provided clear and precise goals and objectives. In terms of consulting and delegating, leaders should be aware of the importance of employees’ contribution to the decision-making process, especially when introducing new products. Organizing feedback has also been demonstrated as a factor that can enhance new or existing products since feedbacks can used in areas of development. Entrepreneurs should always be able to recognize innovative ideas from employees. This aspect includes providing compliments, acknowledgments, benefits, and rewards to employees who actively participate in the innovation and creative processes of the company. They should also allocate adequate time in monitoring the progress of the new product or venture, as well as the performance of their employees (de Jong and Hartog 2007). Innovativeness or openness to innovation in an entrepreneurship context is the constant need for opportunities, pursue them with creativity and strict discipline on its execution, and encourage others to support the goal. In industries that are fluid and dynamic in nature, such as the food industry, this trait is very important. Fads come and go, so an entrepreneur must keep an eye open, and have an open-mind in accepting changes and new innovations. Innovations have always been stated as a vital ingredient for the success of new business. To be successful in entrepreneurship, one must have exemplary communication skills. They must be able to relate to the customer the features and benefits of their product. About 52% of entrepreneurs do not experience difficulties in conversing with people (Brandstätter 1996). The study used a questionnaire to evaluate the relationship and found out that communication skills are one key factor that can be attributed to its success. The study also demonstrates that an entrepreneur who is highly competent and motivated can still fail for lack of communication skills (Baron and Markman 2003). A study by Baron & Tang (2009) investigated the relationship between innovation, positivism and creativity in a fluid and dynamic setting. The study was conducted on entrepreneurs who actively participated in the starting process of their ventures. A five-point Likert scale survey questionnaire was mailed to respondents. Results from the survey and data from entrepreneurs’ archives were used to answer the objectives. The study was able to establish that first, positivism affects and increases creativity (Baron and Tang 2009). Baas, de Dreu and Nijstad (2008) said that a positive attitude enhances creativity. It was also said that innovation came from a series of creative ideas (Amabile 1996). Second, an increase in creativity increases innovative ideas as well. Creativity leads to the invention of new and commercially valuable products (Baron and Tang 2009). Conclusion The essay justified by trait approach to leadership by enumerating several traits or characteristics which I believe are necessary for the success of an entrepreneur. The first trait analyzed is intelligence, whether acquired formally or not. Having adequate knowledge allows an entrepreneur to critically asses a problem and be creative in finding solutions. I believe it is vital for success because lack of intelligence may result in inefficiency in allocating resources and wasting human and financial resources. Nowadays, we are armed with technology, globalization, and a vast resource for information, and we just need to know how to use it and convert it as an leverage for the organization. Second is creativity and resourcefulness. This trait is very important because adapting trends and fads won’t attract consumers. The product has to have something unique to it so they would have to different yet useful and beneficial to them. Today’s industry requires constant and continuous production of new products and this is impossible without creativity and resourcefulness. Third is tenacity. This trait is important especially to new ventures which are more prone to failures and difficulties. Not all ventures re bound to succeed, but failure can be used as a lesson so we will know the second time around. Fourth is optimism and being positive, a trait which allows an entrepreneur to look at criticism constructively. Criticism and complaints when viewed positively can be turned into a reliable source of a company’s strengths and weaknesses. However, too much positivism can be destructive since it hinders an entrepreneur from facing reality. Independence is a characteristic demonstrated by majority of entrepreneurs and has been shown to be the primary reason for entrepreneurship. This trait allows an entrepreneur to be in control and enhances self-assertiveness. Being independent will also increase self-confidence in making decisions which is very important in an organization. Leadership is also vital for success, especially in large firms where you need to employ people and employees needs to be guided so they could perform accordingly. It also allows objective measurement of performance and equips an entrepreneur with appropriate plans to how to improve levels of performance. Somehow related to leadership are communication skills. A leader should be able to effectively convey the company’s goals and objectives. Inability to do so can cause misunderstanding between the actual performance and the expected outcomes. Lastly, and the most important trait is innovation. Innovation is what sets an organization apart from other competitors. It is vital because there is constant demand and it allows organizations to cope and adapt with new and emerging technologies and use it for their advantage. It also increases the probability of surviving of an organization, growing and leading However, successful entrepreneurship does not only consist of having just one of the mentioned traits. Being innovative or tenacious alone does not guarantee success. It has to be a balanced combination of all the traits and it has to be used at the right time for the right reasons. References Amabile, T 1988. A model of creativity and innovation in organization (Shaw, B and Cummings, L ed.). Research in Organizational Behavior, vol. 10, pp. 123-67 Baas, M, De Dreu, C and Nijstad, B 2008. A meta-analysis of 25 years of mood-creativity research: Hedonic tone, activation, or regulatory focus? Psychological Bulletin, 134, pp. 779-806. Baron, R, and Markman, G 2003. 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