The personal qualities of successful entrepreneurs have been studied extensively in order to determine a set of characteristics which can be characterized as valuable for successful business ownership. Venture capitalists sometimes use psychological tests to determine if the prospective business owner they are considering to lend money to has the qualities which will improve their chances of success.
The problem with this is that every type of personality has been successful in business, whether it be a simple Mom and Pop or a multi-national conglomeration. With that said there are some personality types which seem to be drawn to entrepreneurship more than others and as a result people with these characteristics are more likely to be found in entrepreneurial activities.
Common Personal Characteristics Of Successful Entrepreneurs
It is difficult to give a description of what success is because it is very subjective. Some think success is determined by financial resources like cash on hand, assets owned, luxury goods or monthly/yearly income. Although these are indicators of success in a very limited view and are not shared with entrepreneurs themselves.
Since others will have a different definition of entrepreneurial success we will define what it means in the context of this article.
Entrepreneurial success is being able to adequately provide for one’s self and associates through the development of business entities while maintaining good relationships with loved ones and society as much as possible.
Honest
Honesty is the most important characteristic of successful entrepreneurs. Honesty is not just telling the truth when it is beneficial to one’s business career but it must become a part of the regular life. It includes ensuring proper reporting of business activities, paying staff according to the current laws and ensuring obligations are met.
Honesty includes:
- correcting mistakes and owning the repercussions of such mistakes.
- Only making promises with the intention to follow through
- Providing all vital information required and updating when changes occur
To put it simply, if today’s actions will require an explanation from a moral standpoint later it is not honest.
Risk Tolerant
Starting a new business is a risky proposition. Most businesses fail within the first year of operation. To be a successful entrepreneur one must be willing to risk time and money, reputation and social status without having all the needed information available to make a fully informed decision.
Creative
Entrepreneurship is the act of creating financial entities which produce new and innovative products and services. This takes creativity and curiosity. An entrepreneur has to be interested in a variety of subjects and be able to connect the various fields together to produce something different. Then they must be able to market it, sell it and develop a production system for it.
All of these take creativity. Without the ability to connect different ideas with each other in unique and valuable ways an entrepreneur cannot be successful. It takes creativity to solve problems, especially ones which have not been solved before. When developing something new these types of problems are abundant with very few examples to be used as a guide.
Goal oriented
To be successful as an entrepreneur you have to be self motivated. You have to be able to work towards something which you believe will improve your chances of success. Without something to shoot for you decrease your ability to maintain a high energy level.
It has been shown that it is easier to work hard when the goal post can be seen. Physiological and psychological effects prepare the body and mind for effort, lowers stress levels and reduces the amount of energy required to reach a goal.
Without a goal focus is scattered and energy is wasted chasing after a variety of unfruitful activities.
Outgoing
To be a successful entrepreneur you will need the help of others. This will require the ability to communicate your ideas to others in an upbeat and interesting manner. Having an outgoing personality helps to successfully create and develop a team and its members.
When starting a new venture there is little evidence to indicate that the idea will work, be popular or is even saleable. It is the ability of the entrepreneur to communicate their vision to others to help secure funds, maintain motivation and attract valuable people to the project before there are any results.
Leadership
Leadership is influence. Without influence an entrepreneur will not be able to maintain any level of success. Leadership is more than being able to build a team, rather it is the ability to attract people who have a high degree of competence in a wide variety of genres. Provide a strong vision for others to see.
Without the ability to build competent teams and the appropriate vision for the team to work towards a new venture will fail. Every new business will go through hard times, will require extra effort by team members and suffer losses. Leadership is the ability to encourage others to not give up.