Personality Traits among Entrepreneurs - Literature review Example

Reflective Essay Name Course Lecturer Institution Date Entrepreneurship refers to a process involving the creation of something that is different but valuable, through the development of the necessary effort and time, assuming several factors such as physical, social and financial risks. The rewards for engaging in entrepreneurship are personal and monetary satisfaction (Ahmad 2010, p.203). Olakitan and Ayobami (2011, p.96) defines an entrepreneur as a person who generates and develops a new venture and shows characteristics of innovation and risk taking. Hornaday and Aboud (1971) maintains that, there are five main characteristics and personality traits that are associated with successful entrepreneurs, including the need for achievement, risk taking tendency, locus of control, Type-A personality and ambiguity tolerance. In this essay, I will compare and contrast my own personality and characteristics to those associated with successful entrepreneurs. I will also provide an answer on whether I believe I can be an entrepreneur based on the results from the General Enterprise Tendency (GET) Test. Ahmad (2010, p.204) maintains that, entrepreneurial CEOs usually have a high achievement need and their inner-self guide them, inspiring their actions towards accomplishment. They are a type of people who require doing things in their own way. McClelland (1965) defines achievement motivation as conduct towards rivalry with an excellence standard. The trait of achievement motivation is common among entrepreneurs. Individuals with high achievement motivation’s levels are future oriented and undertake tasks seriously if the tasks are considered to influence future objectives. Comparing the entrepreneurial trait of a need for achievement with my personality, the trait is part of my personality to a certain extent. In whatever I do, I always prefer doing it in my own way without much influence from third parties or imitating what others have done. On the contrary, that does not mean I do not consult other people before I begin my tasks. After making my plans on how to undertake a given task, I usually ask for opinions from other people on the task at hand. However, though I put into consideration those opinions, I do not allow them to guide my way of doing the task, rather I tend to stick to my plan. In addition, I normally set excellence as my yard stick for whatever activity that I decide to do. In contrast, despite my achievement motivation, I hate and I am afraid of competition. I prefer a free environment whereby I do not feel pressured to do something in order to outweigh those of other people. Drawing from Ahmad (2010), locus of control shift to the apparent control on the happenings that take place in an individual’s life. Individuals having outer locus of control tend to believe that a bigger percentage of the happenings in their lives stem from being lucky, the actions of powerful people, and being always at the appropriate place at the appropriate time. This trait differs a little with my personality. Though I believe on the influence of being at the appropriate place at the appropriate time, I do not believe in luck and the power of other people. I hardly consider any happening in my life to be as a result of bad or good luck, or the influence of powerful individuals. I usually hold myself responsible for most happenings except the natural things that I do not have control over. Moreover, I consider my actions and decisions to be the main determinants of my destiny or the things that happen to me. Brockhaus (1980, p.510) defines risk taking propensity as the professed probability of getting a reward associated with a situation’s success that is crucial by the person before subjecting himself or herself to the costs linked with failure. The alternative situation offers a less reward and severe consequences compared to the suggested situation (Brockhaus 1980). Reflecting on my personality, I am naturally a risk taker. I like trying new things even when their success is not guaranteed. However, before I undertake something, I always sit back and weigh its likely pros and cons, in order to be able to project the expected benefits and costs from that particular undertaking. According to Budner (1962), people identify ambiguity when they do not have an abundant signal to handle a situation. Ambiguity might emerge from complexity, insolubility, or uniqueness. Tolerance of ambiguity refers to the tendency of considering ambiguous situations as desirable. Due to the uncertainty present in the entrepreneurial style of leadership setting, it is viewed as the role of the owner, that is, an ambiguity-bearing position. In this regard, I view ambiguous situations as normal in most tasks. I consider every ambiguous situation as a learning ground instead of as a serious threat. Consequently, I am always determined to find a solution to any ambiguous situation I come across. Drawing from Friedman and Rosenman (1974), Type-A personality is an action-emotion trait that is evident in any individual who is insistently involved in an incessant, chronic struggle to attain more in lesser time, and where necessary, against other people’s or other things’ opposing efforts. In comparison, I strive to achieve the maximum outcomes within the least amount of time I have at my disposal regardless of any existing opposing forces. Based on the GET Tests, I believe I can be an entrepreneur. My scores for need for achievement, need for independence, creative tendency, moderated risk taking, and drive and determination are 10 out of 12, 4 out of 6, 9 out of 12, 8 out of 12, and 11 out of 12 respectively. In conclusion, my potential for being an entrepreneur is very high. Comparing my personality with the traits of successful entrepreneurs that are documented in existing literature, such as the need for achievement, risk taking tendency, locus of control, Type-A personality and ambiguity tolerance; I have most of these traits. I like doing things in my own way without much influence from third parties, I set excellence as my yard stick, and I am a risk taker. Moreover, I strive to solve ambiguous situations rather than avoiding them, and want to achieve more within a short time. Reference List Ahmad, HM 2010, Personality Traits among Entrepreneurial and Professional CEOs in SMEs, International Journal of Business and Management, 5 (9), 203-213. Brockhaus, RH 1980, Risk taking propensity of entrepreneurs, Academy of Management Journal, 23 (1), 509-20. Budner, S 1962, Intolerance of Ambiguity as a Personality Variable, Journal of Personality, 30 (1), 29-50. Friedman, M & Rosenman, R 1974, Type A Behavior and Your Heart, Greenwich, Conn., Fawcett. Hornaday, JA & Aboud, J 1971, Characteristics of Successful Entrepreneurs, Personal Psychology, 24 (1), 141-153. McClelland, DC 1965, Achievement and Entrepreneurship, Journal of Personality and Social Psychology, 1 (1), 389–392. Olakitan, OO & Ayobami, AP 2011, An Investigation of Personality on Entrepreneurial Success, Journal of Emerging Trends in Economics and Management Sciences, 2 (2), 95-103. Read More