Characteristics and Skills of an Entrepreneur

Entrepreneurial Characteristics

Not everyone wants to be an entrepreneur and run their own business. Being an entrepreneur requires specific characteristics and skills that are often achieved through education, hard work, and planning.
Risk Taker
Businesses face risk. Entrepreneurs minimize risk through research, planning, and skill development.
Perceptive
Entrepreneurs view problems as opportunities and challenges.
Curious
Entrepreneurs like to know how things work. They take the time and initiative to pursue the unknown.
Imaginative
Entrepreneurs are creative. They imagine solutions to problems that encourage them to create new products and generate ideas.
Persistent
True entrepreneurs face bureaucracy, make mistakes, receive criticism, and deal with money, family, or stress problems. But they still stick to their dreams of seeing the venture succeed.
Goal-setting
Entrepreneurs are motivated by the excitement of staring a new business. Once achieved, they seek out new goals or ventures to try.
Hardworking

busines plan (Photo credit: Wikipedia)

Entrepreneurs need a great deal of energy to see a venture start and succeed. Yet they are not deterred by the long hours to achieve their goal.
Self-confident
Entrepreneurs believe in themselves. Their self-confidence takes care of any doubts they may have.
Flexible
Entrepreneurs must be flexible in order to adapt to changing trends, markets, technologies, rules, and economic environments.
Independent
An entrepreneur’s desire for control and the ability to make decisions often makes it difficult for them to work in a controlled environment.

Entrepreneurial Skills

A skill is the ability to do something specific or to translate knowledge into action.
Research Skills
Entrepreneurs need to identify what they need to know and use research techniques to obtain it.
Gathering Information
Reliable and relevant sources of information may include
Using Information
After information is acquired, it needs to be sorted into relevant data that answers the entrepreneur’s initial questions. These questions may lead the entrepreneur to look at new ventures.
Management Skills
Management skills for entrepreneurs involve planning, organizing, directing, and controlling. These are then applied towards their personal, financial, and material goals.
Planning
Entrepreneurs develop financial, production, and marketing plans that comprise the overall business plan.
Organizing
Organizing the venture is vital. The key to this is time-management.
Directing
Entrepreneurs learn how to motivate their staff by encouraging initiative and self-direction. This inspires a sense of shared responsibilities to grow the business.
Controlling
Entrepreneurs need to develop budgets and keep accurate bookkeeping and accounting records.
Relationship Skills
Running a business means building good relationships with staff, suppliers, and customers.
Staff Relationships
Employees need to feel that they are treated fairly, are rewarded for their efforts, and have their needs met.
Supplier Relationships
Communication is the most important relationship skill required to deal with suppliers. They act as sources of information for the new business. Suppliers also require feedback to know how to improve their service.
Customer Relationships
In an entrepreneurial business, the customer is the “boss” and the key to the business’ success. Therefore, the entrepreneur and his or her staff must develop a positive relationship with the customer.

Venture Evaluation Criteria

An entrepreneur must develop a good business plan that is feasible, marketable, and profitable. Key points are below.
Feasibility
• Finances ― list the amount required in a budget including the source of capital (bank, credit union, and so on)
• Location ― explain the location outlining the details (address, rent, taxes, and so on)
• Licenses and permits ― list the licenses or permits and state how to obtain them
• Suppliers ― make a list of everything required including the name of the suppliers and their prices and terms
• Staff ― describe staffing needs and ways to meet them
Marketability
Entrepreneurs need to ask themselves the following questions about their product, service, or charity:
• Does your target market want this product? Prove it.
• What is you competition? How much of the market do they own already? How will you take it away from them?
• Are you competitively priced?
• Is this a short-term venture? How long will it last?
• What do you offer that no other product, service, or charity offers? Why would a customer pay money for what you provide?
Profitability
To expect a profit, an entrepreneur must ensure that revenue exceeds all costs. Listing expected revenue and expenses can help to achieve this.