Disclaimer: This is an example of a student written essay.
Click here for sample essays written by our professional writers.

Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com.

Personality Features of the Entrepreneur

Paper Type: Free Essay Subject: Business
Wordcount: 2888 words Published: 6th Dec 2017

Reference this

  1. Ability to set high personal but obtainable aims
  2. The concern of personal accomplishment, rather than reward of success

Knowledge and experience-According to Schultz (1975) states that entrepreneur talent is not only innate, but may also improve by experience and education. Entrepreneur knowledge is the important element for any company performance. Brüderl et al (1992) states that the higher level of Entrepreneur education bring positivity in the productivity, which automatically leads to increase the company profit. Hence higher productivity helps to increase efficiency and processing of management and on otherwise tends to attract the customers and participating profitably with suppliers and Investors. Hambrick and Mason(1984) also concludes that company success is totally dependent on the entrepreneur Knowledge. Knowledge mainly depends on the education and the past experience (Barker III and Mueller 2002; Hadjimanolis 2000).By attaining good knowledge, entrepreneur develops new innovative ideas and try to make them real. On the other hand Hisrich & Peter (1995); Mcgrath & MacMillan (2000) argues that there is perception that education experience do make contribution to the function of Entrepreneurship, however these experiences may not always exclusively transpire through formal education

The environment of the different culture can produce difference in attitude (Baskerville 2003) as well as differences in the behaviour of entrepreneurial (North 1990; Shane 1994) culture knowledge is another aspect which can be understood by entrepreneur. According to Zhao (2010), the cultural awareness could be defined as the understanding “of a people’s historical and cultural backgrounds as well as their approach to life and their ways of living and thinking. Therefore, as Rogers and Steinfatt (1999) argue, culture has very powerful effects on individual behaviour including entrepreneurial behaviour. Vernon et aI (1997) explained that culture is an significant in any discussion of Entrepreneurship because it determines the attitude of individuals towards the commencement of Entrepreneurship.

Get Help With Your Essay

If you need assistance with writing your essay, our professional essay writing service is here to help!

Essay Writing Service

Prior hand experience is considered to be beneficial for any entrepreneur and can be expected to have a greater ability to resist unfavourable shocks and to perform corrective actions in a new venture. According to Davidsson and Honig (2003) & Starr and Bygrave (1992) explains that the previous experience helps to lead to an implement skills that critically influences subsequent efforts to establish and build up new ventures. Also Shane(2000) & Ucbasaran et al. (2003) concludes that the individuals who engage in the multiple starts-up called habitual entrepreneur, who develops a entrepreneurial approach and problem solving ability which automatically helps to increase their skill to recognize and utilize further opportunity.

Propensity to take Risk-Risk attitude influence the entire life cycle of Entrepreneur. According to Cramer et al (2002) & caliendo et al (2009), there is positive linkage between Risk attitude and the decision to become an Entrepreneur. Entrepreneurs tend to be more independently-minded, ready to take risks and accept the penalty if things go wrong.Casson (1982) concludes that risk taking ability and innovativeness are the personal characteristics and more over they have all the knowledge of handling business. Thus, people with more experience, higher abilities or greater knowledge in the field of potential self-employment tend to perceive the risks connected with certain decisions as lower ( Gifford 2003).Caird(1988) also agreed with Casson and concludes that successful entrepreneurs have abilities and knowledge to sense business risks and profitability and try to accurate errors to improve business performance and prospects. On the other hand Grable and Lytton (1998) also claim that the educational level of entrepreneurs is the most important variable in distinguishing risk-taking intensity in businesses.

Psychological theory has pointed out that the individual’s risk attitude is only one of numerous personal variables possibly influencing the decision to become an entrepreneur ( Rauch and Frese 2000). Person risk attitude is one of the key variable In the choice between a salaried job and entrepreneurship. According to Chell et al. (1991), there should be an inverse U-shaped relation between risk attitudes and entrepreneurial survival, where low risk attitudes characterize more risk averse and high risk attitudes indicate less risk averse persons. Recent research by Baron (2004) and K¨ollinger et al (2007) provides further explanations for why particularly risk-seeking entrepreneurs might decide to start a business venture, even if low or even negative outcomes may arise with relatively high probability.


According to Graen and Scandura(1987) Leadership is broadly viewed as an interactive process, dependent upon both leaders and followers . and an entrepreneur is often described as a leader who must define a vision of what is possible and attract people to rally around that vision and transform it into reality (Kao, 1989). Hence, it is argued that there is interconnection between entrepreneurship and leadership (Jensen and Luthans, 2006) and to be successful entrepreneurs must possess leadership skills (Colbert, 2003).A leader has to be Entrepreneur aswell.It has been written that Entrepreneurial leadership deals with concepts and ideas,which are related to problems that are not of an organisational nature ( EL-Namaki 1992). Hinterhuber and Krauthammer (1998) assert that in today’s turbulent environment, which demands not only continual innovation but radical improvements in all stakeholders’ satisfaction, leadership is more critical than ever for entrepreneurs. Author agin states that leadership stands onthree pillars:

(1) Envisioning

(2) Being an example and

(3) Increasing the value of the firm

Avolio et al (2004) provided a theory driven Framework for Studying Entrepreneur as a leader, with the focus on experience, self regulatory process, and leader behaviour

The above theory explores that how a entrepreneur leadership can positively linked to the organisation commitment, satisfaction of the job, happiness to his/her employees. Rhoades et al(2001) add on that when employees are treated in a fair and caring manner, they become more committed towards the organisation ,and more likely to have positive attitude.

Confidence- Confidence is the key to success for any individual. Very few Entrepreneur need to have important skills, out of which confidence is very vital. Confidence helps entrepreneur to convert an idea into Business success. According to Wilson et al., (2007) self confidence is based on the abilities and perception of the skills rather than objective ability. But Global Entrepreneurship Monitor(GEM) found that there is difference between the level of self confidence & ability to believe in an entrepreneurs & non-entrepreneurs. Minniti et al., 2004) also supports the idea of GEM that there is difference between the level of confidence in an Entrepreneur. Boyd and Vozikis’s theory of intentionality helps us understand the role of confidence here too. They argue that self-efficacy not only positively influences intention, but that it also influences the transformation of intention into action (Boyd and Vozikis, 1994).While many entrepreneurs may have a clear intention to start a business, not all do, and one of the things which predicts entrepreneurial action (i.e. launch) is self-efficacy. High confidence promotes a go-ahead spirit that can lead to success amid such uncertainty (Bazerman,1998)

On the other hand Forbes (2005) states that the Entrepreneur who found their own business are more over confident than those who dint. According to Griffin and Varey, (1996) ,over confident is treated as situation specific. He means that the individual who is overconfident in one task might not be in second one. Gist and Mitchell (1992) Social cognitive theory tells us that self-efficacy, an assessment of one’s confidence, is situation specific and implemented to the particular tasks rather than a general state of being.

The real power to attract money comes from our own self-reliance, determination, and will; not from any dependence on another’s help and support. The power to attract money comes from the psychological viewpoint that I am the ultimate determinant of my fate. One of the reason’s for America’s founding and continuous success was that her people were dedicated to self-reliance.

Casson, M. (1982). The Entrepreneur: And Economic Theory. Oxford: Martin Robertson.

Caird, S. (1988). A Review of Methods of Measuring Enterprising Attributes. Durham: Durham University Business School.

Davidsson, P. (1989). Continued Entrepreneurship and Small Firm Business. Stockholm: Stockholm School of Economics

Bellu, R.R. (1988). Entrepreneurs and managers: are they different? In Reynolds, P.D., Birley, S., Butler, J.E., Bygrave, W.D.,

Bird, B. (1992). The operation of intentions intime : the emergence of new venture. Entrepreneurship Theory and Practice, 17 (1), 11-20

Brockhaus, R H. (1982). The psychology of the entrepreneur, hi Kent, C. A., Sexton, D. and Vesper. K. (Eds.), Encyclopedia of Entrepreneurship (pp. 39-56). Englewood Cliffs, NJ: Prentice-Hall.

McClelland, D.C. (1961), The Achieving Society. Princeton, NJ: Van Norstrand Co

Opportunity-According to Shane et al (2000) The major task of entrepreneur is to find out and utilize oppurtunities

Risk taking Capability- according to


Baskerville, R.F. 2003. “Hofstede Never Studied Culture.” Accounting, Organizations and Society


North, D.C. 1990. Institutions, Institutional Change, and Economic Performance. New York: Norton.

Shane, S. 1994. “The Effect of National Culture on the Choice between Licensing and Direct Foreign

Investment.” Strategic Management Journal 15:627-642.

Brüderl, J., Preisendorfer, P., Ziegler., R., (1992), Survival Chances of Newly Founded Organizations,American Sociological Review, Vol: 57, 227-242

Hambrick, D. C., Mason, P. A., (1984), Upper echelons: the organization as a reflection of its top managers,Academy of Management Review, Vol. 9, no. 2, 193-206

Barker, V. L., III, Mueller, G.C., (2002), CEO characteristics and firm R&D spending, Management Science, Vol. 48, no. 6, 782-801

Hadjimanolis, A., (2000), A resource based view of innovativeness in small firms. Technology Analysis & Strategic Management, Vol. 12, no. 2, 263-28

Shane, S. and Venkataraman, S. (2000). ‘The promise of entrepreneurship as a field of research’. Academy of Management Review, 25, 217-26

Shane, S. (2000), “Prior knowledge and the discovery of entrepreneurial opportunities”, Organization Science, Vol. 11, pp. 217-26.

Ucbasaran, D., Westhead, P., Wright, M. and Binks, M. (2003), “Does entrepreneurial experience influence opportunity identification?”, The Journal of Private Equity, Vol. 7, pp. 7-14.

Davidsson, P. and Honig, B. (2003), “The role of social and human capital among nascent entrepreneurs”, Journal of Business Venturing, Vol. 18, pp. 301-31.

Starr, J.A. and Bygrave, W.D. (1992), “The second time around: the outcomes, assets, and liabilities of prior start-up experience”, in Birley, S. and MacMillan, I.C. (Eds), International Perspectives on Entrepreneurship Research 1991: Proceedings of the First Annual Global Conference on Entrepreneurship Research, Elsevier, Amsterdam, pp. 340-63.

Vernon -wortzel, H. & Wortzel, L. (1997) strategic management in Global economy, John wiley, New York, NY

Schultz, T.(1975) The value of the ability to deal with disequlibria. Journal of economic literature, 13,827-846

Mcgrath&MacMillan(2000) The Entrepreneurial Mindset. Boston: Harvard Business School Press.

Caliendo et al., 2009 M. Caliendo, F. Fossen and A. Kritikos, Risk attitudes of nascent entrepreneurs: new evidence from an experimentally-validated survey, Small Business Economics 32 (2) (2009), pp. 153-167

Cramer et al., 2002 J. Cramer, J. Hartog, N. Jonker and C. Van Praag, Low risk aversion encourages the choice for entrepreneurship: an empirical test of a truism, Journal of Economic Behavior and Organization 48 (2002), pp. 29-3

Grable, J., & Lytton, R. H. (998). Investor risk tolerance: Testing the efficacy of demographics as differentiating and classifying factors. Financial Counseling and Planning, 9(1),61-73

Caird, S. (1988). A Review of Methods of Measuring Enterprising Attributes. Durham: Durham University Business School.

Chell, E., J. Harworth, and S. Brearley (1991). The search for entrepreneurialtraits. In E. Chell, J. Harworth, and S. Brearley (Eds.), The EntrepreneurialPersonality: Concepts, Cases and Categories, Routledge Small Business Series,pp. 29-53. London: Thomson Learning

Baron, R. (2004). The cognitive perspective: A valuable tool for answering entrepreneurship’s basic “why” questions. Journal of Business Venturing 19, 221-240.

K¨ollinger, P., M. Minniti, and C. Schade (2007). “I think I can, I think I can”: Overconfidence and entrepreneurial behavior. Journal of Economic Psychology 28 (4),502-527.

Gifford, S. (2003). Risk and uncertainty. In Z. Acs & D. Audretsch (Eds.), Handbook of entrepreneurship research:An interdisciplinary survey and introduction (pp. 37-52).Kluwer Academic Publishers.

Rauch, A., & Frese, M. (2000). Psychological approaches to entrepreneurial success: A general model and an overview of findings. In C. Cooper & I. Robertson (Eds.), International review of industrial and organizational psychology (pp. 101-142). Wiley.

Kauer, D., Waldeck, T.C. and Schaffer, U. (2007), “Effects of top managerial team characteristics on strategic decision making”, Management Decision, Vol. 45 No. 6, pp. 942-67.

Miller, D.Dorge, C.and Toulouse, J.M. (1988), “Strategeic process and content as mediators between organization”, Acadamy of Managemt journal, Vol. 31 No. 3, pp. 544-569.

McClelland, 1990. D.C. McClelland, Human motivation. , Cambridge University Press, Cambridge (1990)

Gartner, W.B., Bird, B.J. and Starr, J.A. (1992), “Acting as if: differentiating entrepreneurial from organizational behavior”, Entrepreneurship Theory and Practice, Spring, pp. 13-31.

Kao, R.W.Y. (1989), Entrepreneurship and Enterprise Development, Holt, Rinehart & Winston of Canada, Toronto

Jensen, S.M. and Luthans, F. (2006), “Entrepreneurs as authentic leaders: impact on employees’

attitudes”, Leadership & Organization Development Journal, Vol. 27 No. 8, pp. 646-66.

Colbert, F. (2003), “Entrepreneurship and leadership in marketing the arts”, International Journal

of Arts Management, Vol. 6 No. 1, pp. 30-9.

Avolio, B.J. and Luthans, F. (2006), The High Impact Leader: Moments Matter in Accelerating Authentic Leadership Development, McGraw-Hill, New York, NY.

Rhoades, L., Eisenberger, R. and Armeli, S. (2001), “Affective commitment to the organization:the contribution of perceived organizational support”, Journal of Applied Psychology,Vol. 86, pp. 825-6

Hinterhuber, H.H. and Krauthammer, E. (1998), “The leadership wheel: the tasks entrepreneurs and senior executives cannot delegate”, Strategic Change, Vol. 7, pp. 149-62

Wilson, F., Kickul, J. and Marlino, D. (2007), “Gender, entrepreneurial self-efficacy, and entrepreneurial career intentions: implications for entrepreneurship education”, Entrepreneurship Theory & Practice, Vol. 31 No. 3, pp. 387-406

Minniti, M., Arenius, P. and Langowitz, N. (2004), Global Entrepreneurship Monitor: 2004 Report on Women and Entrepreneurship, The Center for Women’s Leadership at Babson College,Babson Park, MA

Forbes, D.P. (2005), “Are some entrepreneurs more overconfident than others?”, Journalof Business Venturing, Vol. 20 No. 5, pp. 623-40.

Gist, M.E. and Mitchell, T.R. (1992), “Self-efficacy: a theoretical analysis of its determinants and malleability”, Academy of Management Review, Vol. 17 No. 2, pp. 183-211.

Griffin, D.W. and Varey, C.A. (1996), “Towards a consensus on overconfidence”, Organizational Behavior and Human Decision Processes, Vol. 65 No. 3, p. 227

Bazerman, M.H. (1998), Judgement in Managerial Decision-making, John Wiley & Sons, NewYork, NY

Boyd, N.G. and Vozikis, G.S. (1994), “The influence of self-efficacy on the development ofentrepreneurial intentions and actions”, Entrepreneurship Theory and Practice, Vol. 18 No. 4, pp. 63-77


Cite This Work

To export a reference to this article please select a referencing stye below:

Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.

Related Services

View all

DMCA / Removal Request

If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: