Essential Characteristics of Successful Entrepreneurs

Are you an entrepreneur? Comes with an Entrepreneurs mindset? Then check out the 9 Essential Characteristics of Successful Entrepreneurs, that will change your mindset instantly.

To run a business or firm profitably, it needs to possess certain factors of production. These factors are devised into two major divisions. Active factors and passive factors.

The active factors are said to be labor and entrepreneur. While the passive ones are capital and land.

Now, the matter of fact is everyone knows about what land labor capital is. But the concept of an entrepreneur is somewhat a little confusing to people.

So, before we jump into the characteristics of successful entrepreneurs, let’s know a little about entrepreneurs.

Who is an entrepreneur?

In a firm, an entrepreneur is the one who bears the risks that lie ahead of the business. He/she also employs and coordinates the working and functioning of the other three factors of production.

They earn residual income. The income of the entrepreneur is the profit left to him after making payments to the factors of production.

The income of an entrepreneur can be anything starting from zero to negative or positive.

Why And how is an Entrepreneur different from an organizer in a business organization?

An organizer is however only involved in the activities relating to the organizing and coordinating the functions and activities of the factors of production in a business.

On the contrary, the functions of an Entrepreneur are not limited to only this. An Entrepreneur performs a wide range of functions.  Apart from the aforementioned function, an Entrepreneur needs to carry the risks lying in the market, bear all the uncertainties, and also introduce innovative ideas.

Therefore, it can be concluded that all entrepreneurs are organizers in a business, but all organizers are not entrepreneurs!

In certain cases, the organizational functions are delegated to salaries to officers. However, it is not possible to delegate the risk-taking capacity to any such salaried manager. An organizer thus can be a salaried manager, but an Entrepreneur isn’t.

The organizer when hired gets a fixed income. However, in the case of an Entrepreneur, the income depends on the profit left after payment to the factors of production (labor, the cost for land, etc.)

The organizer earns a certain income which is of course a positive value, even if the business incurs a loss. Whereas the income of the entrepreneur can be zero or even negative, in case of loss.

Primary functions of an Entrepreneur

Though the functions and working of an Entrepreneur vary from business to business depending upon their purpose working aim etc. The entrepreneur plays a vital part in any business. Some of the major primary functions of an entrepreneur include :

• Proper Planning

Before undertaking any operation, an Entrepreneur makes proper, full-fledged planning about how the operation would be carried out, which factors are to be employed, how are they going to be employed, what technology is to be used, etc.

• Innovative ideas

An entrepreneur is always required to make new inventions in the world of innovations. Diversification and new invention in the world of products are only possible through the innovative ideas of the entrepreneur. The innovative capacity of an entrepreneur is a great determinant of the development of a country.

• Organizational activities

Proper coordination among all the factors in the production is necessary for the smooth functioning of a production process. It is the function of an entrepreneur to employ these factors in perfect proportion and maintain coordination among them. So, the activities are carried out efficiently.

• Timely decision-making

The growth of any organization largely depends on the entrepreneur. It is a function as well as a characteristic of a successful entrepreneur to make timely and proper decisions relating to what factors to be employed, in how much proportion, what technology is to be used, what is to be the price of the commodity, etc. are to be made by him.

• Undertaking risks and uncertainties

Risk-taking is probably the most important function of an entrepreneur that makes him/her a different person from others. No one can accurately predict what the future changes would be. Therefore, it lies in the hands of the entrepreneur to undertake the risks, challenges, and uncertainties.

Essential Characteristics of Successful Entrepreneurs

Who is a successful and ideal Entrepreneur? How do you determine if the Entrepreneur is capable of being considered as a successful and ideal Entrepreneur?

An ideal successful entrepreneur is a person who carries out all the organizational as well as risk-taking matters effectively and efficiently.  The qualities or characteristics one should look for in a successful entrepreneur are as follows :

1. The attitude of risk-taking

As we already know, any risks involved in the business are borne by the Entrepreneur. Since one of the major functions of an entrepreneur is to take risks, a successful and ideal entrepreneur should likely love to take new risks every day.

A person who is averse to taking risks cannot even be a successful entrepreneur. Wondering why?

The reason is that if you don’t take risks and opt for innovation you would never be able to stand out from the rest and make a difference to attract more consumers. So, you will have to undertake some or the other kind of uncertainty to be successful.

2. Optimism

 Not only taking risks, but the ability to handle failures is also a very essential characteristic of a successful ideal entrepreneur. A successful entrepreneur cannot be turned down merely by failures. He/she should consider failures as the stepping stones to success.

It is not unknown to anyone that even the most successful entrepreneurs have at least once in their lives faced failures and that is the main reason they are where they are today. Thus it can be said that optimism is the key to the success of an entrepreneur

3. Capacity to accept criticism

Criticism is always considered to be a negative aspect of everything. However, it is essential to consider that criticism is highly essential for growth.

Every person gets criticized for anything he or she does. But only a successful person can be sporting take the criticism, turn it into one’s strength and keep going.

And that constitutes the next characteristic of a successful entrepreneur. They need to be high of sporting mentality and should take everything sportingly. They should accept the criticism as a source to look into their shortcomings and keep on moving ahead with greater efforts.

4. Innovative ability

A successful entrepreneur needs to be a pioneer of innovation, that is, he or she must make new inventions and open new doors of creativity in the world of inventions.

New products must be developed in the market, new technologies can be adopted, or the old goods can be redevelopment giving a new effect, etc. However, all these things are only possible if the Entrepreneur has innovative skills.

5. Effective Communication skills

An entrepreneur needs to communicate with everyone involved in the process of production. Starting from the stakeholders to contractors to clients and every other person.

If the entrepreneur is not efficient with communication with the members of his team, the operations will not be complete. Because the understanding would not be complete.

Therefore, good communicative skill is a very crucial characteristic of a good entrepreneur because they determine the success of the firm.

6. Prudent decision making

It is however important to note that irresponsibly taking risks cannot be of any good to any kind of business. Rather it might have a disastrous effect on the business.

The risk that the person takes must be reasonable and not impulsive.

A successful entrepreneur is one who critically analyzes the risks and takes prudent decisions. The person should be able to make smart decisions and turn them into an advantage when time.

7. Absolute negotiating skills

An ideal and successful entrepreneur must have great negotiating skills. To run a business organization successfully, an entrepreneur needs to possess certain negotiating skills on various topics with various parties.

8. Vision

The vision is not merely the aim or goal of the entrepreneur. It’s his far-fetched idea that he/she is desperately working hard to achieve. If an entrepreneur doesn’t have any such visionary aim, it is not very much possible for him to be a successful entrepreneur in near future.

They have to keep their eyes in a high-level view and do what is needed to achieve that. Having a vision is highly required for any business.

9. Prominent organizational capacity

A successful entrepreneur must be a good organizer. Organizational works include allocating proper resources, administering the factors of production efficiently, making sure that all the factors are working adequately and properly, managing, etc.

From our everyday experience, we can say that there are people who are good at their work but are not so good as organizers. Such people no matter how hard they try cannot be good entrepreneurs at all.

Conclusion Of Characteristics of Successful Entrepreneurs

The working of an entrepreneur is not only physical but also mental. Therefore, the aforementioned qualities are very essential in a successful entrepreneur to make the business (irrespective of the scale – large or small) grow.

An entrepreneur is greatly responsible for the economic growth of a country.

For instance, infusing dynamism, satisfying the social needs of the people, using the natural resources efficiently, etc. Therefore make sure you possess all the necessary qualifications of a successful entrepreneur!!

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