Entrepreneurial Characteristics,
Optimism, Pessimism, and Realism – Correlation or Collision?
For
many years, researchers have identified unique characteristics of entrepreneurs
– confidence, independence, being in control, risk taking, creativity, just to
name a few. Literature has also discussed optimism and its relationship to
other entrepreneurial characteristics, how optimism impacts on venture
performance (success and failure) and decision making, and different levels of
unrealistic optimism leading to various consequences in venture development
(Schneider, 2005; Liang & Dunn, 2008(1); Liang & Dunn, 2008(2)).
Looking at economic issues today, most people do not have a strong and positive
outlook for the future. However, individual decision in creating a new venture
when everything seems to be downbeat, like many other entrepreneurs, could
eventually become the uplifting force to stimulate our economy. Some research
evidence shows that optimistic entrepreneurs seem to perform better and more
competitively in certain environments and organizations (Manove, 2000). If
results from previous literature are robust, it would be reasonable to assume a
strong positive correlation between entrepreneurs’ decisions, their unique
characteristics, and optimism which form the foundation to stimulate savings
and investment to boost economic activities (Manove, 2000). This assumed
relationship between entrepreneurial characteristics and optimism is the
underpinning theory for this paper. View the link for more information,
Entrepreneurial Success: An Exploratory
Study among Entrepreneurs
‘Entrepreneur’,
derived from the French word ‘entreprendre’, has at its root a concept of
‘between-taker or go-between’. Kuratko and Hodgetts (2004) describe an
entrepreneur as a creator of new venture who faces uncertainty in many ways.
They are individuals who have the capability to foresee opportunities, gather
the needed resources – time, energy, and money – and take actions necessary to
ensure success (Geoffrey, Robert and Philip, 1982; Moorman and Halloran, 1993;
Meredith, Nelson and Neck, 1982).
Schumpeter
(1934) defines an entrepreneurship as a company that undertakes a new
arrangement to produce new products and services. Brockhaus (1976) defines the
term as activities related to a firm’s ownership and management, while Hisrich
(2004) relates it to a dynamic process of wealth creation that requires individuals
to sacrifice their time, show their commitment, and bear the financial,
physiological and social risks in order to gain benefits in terms of monetary
and personal satisfaction. Entrepreneurship has recently viewed as a process of
innovation and creation with four dimensional elements - individual,
organisation, environmental factors, and process, with support from the
government, education, and constitution (Kuratko and Hodgetts, 2004). For more
information http://www.ccsenet.org/journal/index.php/ijbm/article/viewFile/7046/6531
Motivational and success factors of
entrepreneurs: the evidence from a developing country
Motivation
of entrepreneurs contained 11 reasons for deciding to own a business.
The
first factor is called “Position in society”. It explains 11.73 percent of
variance and contains success variables: 3, 4, 8 and 16. Position in society
can contribute to business success via linkages with a vast number of
decision-maker in profit and non-profit organizations, government agencies and
institutions. This kind of social network can enable involving key
decision-maker who can provide help in variety of business situations.
“Interpersonal
skills” is the second factor. It includes variables: 5, 14, 15, 16 and 17.
This
factor accounts for 11.18 percent of variance. Interpersonal skills include a variety
of social abilities, such as: ability to understand others, ability to motivate
and direct people, ability to empower, empathy, etc. These abilities are
equally important with people inside organization, as with the people outside
of it.
Factor
three can be referred to as “Approval and support”, and includes variables: 7,
8 11
and 14. It accounts for 10.49 percent of cumulative variance. In order to
manage a successful business, entrepreneurs need be approved by the people they
care, but also by the environment in which they operate. They also need to gain
support for their actions, because entrepreneurship means that they are walking
on unsecured terrain instead of working for a stable income as employee. file:///C:/Users/hp/Downloads/03_stefanovic_2010_2.pdf
Characteristics of a Successful
Entrepreneurial Management Team
Drive
and energy level: A successful entrepreneur must have the ability to work long
hours for sustained periods with less than the normal amount of sleep.
Self-confidence:
A belief in yourself and your ability to achieve your goals and a sense that
events in your life are self-determined is essential.
Setting
challenging but realistic goals: The ability to set clear goals and objectives
that are challenging, yet realistic and attainable.
Long-term
involvement: A commitment to projects that will reach completion in five to
seven years and to work towards distant goals. This means total dedication to
the business and to attaining these goals.
Using
money as a performance measure: Money, in the form of salary, profits, or capital
gains, should be viewed more as a measure of how the company is doing rather than
as an end in itself. file:///C:/Users/hp/Pictures/Character%20of%20Successful%20Entrepreneurial%20Team.pdf
