Characteristics of a successful entrepreneur....easy to know, difficult to master

I came across a new magazine the other day called Ambition, which after reading I presume is focused on entrepreneurs but is relevant for all small business owners, entrepreneurs and freelancers. Let me first start by saying that it was a great magazine to read with a good mix of relevant, interesting and informative articles in a market already crowded with entrepreneur focused material.

Anyhow, back to the reason for this blog. One of the articles was titled "What makes a true entrepreneur"? Now there's been a few of these articles recently with the main focus of the conversation focusing on whether entrepreneurs are born or whether the required competencies can be learnt. I don't agree fully with the author when she says that entrepreneurship cannot be learnt because to be honest the word entrepreneur has morphed from what it once was and thus the competencies required have also changed. An entrepreneur no longer has to be an inventor or innovator in the pure sense of the word so what was required to be labeled an entrepreneur 20 years ago is different in today's business environment. I could go into more detail on this now but will leave for another time. Rather let me focus on some of the characteristics of the entrepreneur that came out of a MIT study, albeit 25 years ago (you would think that there is something a little more recent and thus relevant?). However some of these were;

- drive and energy
- internal locus of control
- low fear of failure
- clear goal setting
- self confidence
- moderate risk taker

These are some of the examples but the point I want to make is this. If you are an entrepreneur how do you go about identifying, developing, measuring and learning these characteristics. Whilst easy to read and talk about it is not so easy to assess and increase your own abilities in these areas. Even if you do, the article fails to mention 'how much' drive and energy, self confidence and internal locus of control you need. What is meant by 'moderate' in respect to risk taking? With so many ambiguities this list of characteristics tells you a lot and nothing at all. However it is important to note that the list did not mention that most successful entrepreneurs were the ones with the best business plans. Whilst implementing an effective business strategy is important the message that entrepreneurial success is people characteristic centric appears time and time again.

So what does this tell you? If you're an entrepreneur who wants to be successful focus on your personal and professional development; seek advice from those who can assist you in these areas such as business psychologists because in reality no other professional has the experience, training or education to effectively provide you with the tools, frameworks and support needed.

And for all those freelancers out there, take note. The characteristics listed are some of those you'll need to transition to a 21st century freelancer.

What are the key things entrepreneurs need assistance in?

Entrepreneurs are a strange bunch.....I say this tongue in cheek as I have a lot of respect for this group of people who often risk everything in the belief that their service or product will be a success. I am not talking about business owners here per se but those who start a venture from nothing, create the possibility to bring something new or improved to our society. The best entrepreneurs have loads of confidence and self belief, have a great vision, focused and lots of determination and perseverance. Ideas may be sensible, slightly crazy or completely off the wall but in all cases they often have a reason for pursuing their particular venture. The vast majority of us would not be successful as entrepreneurs - even though some of the competencies of an entrepreneur can be taught a lot has to do with personality traits. This is not something that can be taught.

However taking into account all of this I have seen many entrepreneurs fail and some of my clients are entrepreneurs - thus I have seen the same patterns over and over again. Entrepreneurs are great at kick-starting a project but they do run the risk of expending lots of energy with little return even though they may have a high degree of focus. Entrepreneurs are often not able to operate as a business, rather they often operate in the 'new product development' or R&D sphere, which is great to begin with but is not sustainable. What entrepreneurs need to be aware they need assistance in is business strategy, financial management and funding and most important, self health and well-being.

So why have I selected these particular areas? Entrepreneurs are all for pushing a product or service to market, but often they have no concept of how to move past the creation and innovation stage. Do they have experience in market entry, competitor analysis, market analysis? Maybe, maybe not but I am a believer that you cannot do everything well. Even if you think you can do everything your performance will suffer at some point due to your inherent limitations (due to genetics, your experiences and knowledge). Many entrepreneurs are not experts in finance or fund raising and this is one reason that many entrepreneurs go to venture capitalists for assistance and guidance. Lastly, and perhaps most importantly, entrepreneurs are not experts in mental strength and well-being. No entrepreneur will experience success if they are continually stressed, distracted and mentally fatigued. Entrepreneurs, more then most, will face problems that need to be addressed and these cannot always be solved by one's self. There is a need for external guidance and support.

So my advice for entrepreneurs is two things. Firstly recognise what competencies it will take to be a success - not just in the creation of whatever you are involved in but getting it to market. Secondly, assess your own competency gaps and don't be too proud to ask for assistance. Know your strengths and recognize it is a strength to know when to do it yourself and when to delegate.

Do you have the qualities of an entrepreneur?

I came across an interesting article in the Institute of Directors 'Director' magazine the other day. Interesting to me at least because it is an area in which I work in quite a lot. The article was debating whether you can teach people to become entrepreneurs or whether it takes a certain type.

Now before summarizing the debate itself I wanted to address a few points on this matter. Being an entrepreneur is not the same as being the owner of a business. The concept of entrepreneurship revolves around creating and building a business from nothing. It is about bringing a new idea or the new execution of an idea to market. This debate will become more mainstream for a number of reasons. Firstly the nature of the workplace is not only encouraging but requiring people to become more innovative and to consider working for themselves rather than being employed by organisations. Secondly, many universities are teaching entrepreneurial programs with the view that this information can be used and applied, either as an entrepreneur or an advisor I'm not sure, but from what I understand these classes are in high demand. Thirdly, our culture now regards entrepreneurs as more mainstream rather than unique.

Back to the debate....

YES you can teach people to be entrepreneurs

- common knowledge can be taught around key entrepreneurial components; opportunity identification,resource acquisition and new venture startup.

- marketing and selling skills can be taught and have been successfully for many years

- the innate entrepreneurial spirit and ability has developed within our society making this more of an inherent ability due to culture norms.

NO you cannot teach people to be entrepreneurs

- sure you can teach the theory but entrepreneurs are usually a certain 'type' with the energy and passion to start a business. This cannot be taught.

- it is not possible for everyone to create wealth...and this is the basis of being an entrepreneur

- No one actually knows what makes an entrepreneur successful. Whilst the components are quite easy to understand it's the survival instinct and drive that is the unknown element and contributor


So before heading off to become an entrepreneur consider in detail the pros and cons. Know yourself and be clear as to what your goals are in life. Though personality assessments are guidelines only they are useful in that they provide a reference point from which you can start to know and develop yourself. As I say, "how do you know the path to your destination if you do not know where you are starting from?"