COURSE TITLE:

COURSE GENERAL OBJECTIVES: This course aims to teach the approach entrepreneur use in identifying
opportunity and creating new ventures, analytic skills that are needed to practice the approach and the
background knowledge and managerial skills that are necessary for dealing with the recurring issues
involved starting, growing and harnessing the value of new ventures.

COURSE SPECIFIC OBJECTIVES: At the end of the course, the students should be able to:

1. Apply and explain entrepreneurial management principles and practices

2. Display appreciation on the significant contribution of small businesses in the economic growth
and development.
3. Develop a business plan appropriate to learners and demonstrate presentation skills for the
business plan.

COURSE STRUCTURE: The course Entrepreneurial Management consists of three (3) structural units
divided into 26 modules

MODULE NO.8: DETERMINANTS OF SUCCESFUL ENTREPRENEURS

MODULE OBJECTIVES

After this module, learners should be able to:

 Define entrepreneur and Entrepreneurship

 Understand why people become entrepreneurs
 Identify the characteristics of successful entrepreneurs
 Know the qualities of successful entrepreneurs
 Describe the skills needed to have as entrepreneurs
 Discuss the benefits of becoming successful entrepreneurs
 Risks of entrepreneurship

INTRODUCTION

Success people inspire other people to become successful. Those hopefuls believe that
becoming an entrepreneur will allow them to network other people who have already built their great
businesses. They think that they have enough potential to find the next profitable idea and change the
life of millions.

With respect to determining the factors contributing to the success of entrepreneurs, many
studies have concentrated on the psychological and behavioral traits of entrepreneurs, the managerial
skills and training of entrepreneurs, and the external environment. However, no consensus has been
reached as to the level of importance of those factors in entrepreneurs’ success

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 Factors that may contribute to their success of entrepreneurs are not unanimously agreed upon
by researchers. Most entrepreneurial studies have concentrated on few factors like the managerial
skills, trainings the external environment and psychological and behavior traits of entrepreneurs.

Other studies in order to determine the role and importance of factors contributing to the
success of entrepreneurs, an order legit model is applied to a sample of 130 entrepreneurs. The level of
family support, good customer service, charisma and friendliness to customers, business stress, ability to
manage personnel, previous business experience, hard work, appropriate training, satisfactory
government support, political involvement, being married are found significant determining factors in
entrepreneurs’ success.

CONTENT

ENTREPRENEUR - is a person who organizes a venture to benefit from an opportunity, rather than
working as an employee. Entrepreneurs play a key role in an economy. These are the people who have
the skills and initiative necessary to anticipate current and future needs and bring good new ideas to
market. He is the person who creates a new enterprise and embraces every challenge to its
development and operation.

ENTREPRENEURSHIP - is defined as an act of starting and running your own business or a tendency to
be creative and wish to work for yourself in your own venture. It is a process of creating a new
enterprise and bearing any of its risk, with the view of making the profit.

Reasons Why People Become Entrepreneurs

To many, becoming an entrepreneur might seem like a scary and high risk- taking journey but to
some, this unpredictable adventure seems like the perfect path that their life should take and just
because:

1. They admire other Entrepreneurs – These hopefuls believe that becoming an entrepreneur will allow
them to network with people who have already built great businesses. They think they have enough
potential to find the next profitable idea and change the lives of millions.

2. They don’t want to have a boss – Some people struggle with some respecting authority. They don’t
like the reality of having people in superior positions managing their work and looking over their
shoulder. Even though they don’t like authority figures they believe that becoming their own boss is the
only way that they can do work effectively and happily.

3. Can’t handle 9 to 5 Job – The repetitive and routine nature of working 9 to 5 doesn’t feed their
burning passion for creativity and passion, They feel like they are simply doing what society expects of
them instead of making a difference in the world. It’s through starting their own business that they get
to freely express their creative ideas and fulfill their dreams.

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4. They like risks – Building a successful business take a lot of risk, and entrepreneurs love risks. They
live for excitement and adventure, brainstorming new ideas and gambling their chance of succeeding in
their target market gives them goose bumps. They look to manage projects with high stakes because
they have enough confidence to execute them.

5. They just have no other choice – Some people become entrepreneur because they see it as a
mandatory journey to take. Their prior experience in the job market or achievements in education
makes them realize that working to others is no longer a life suited for them’

Characteristics of Successful Entrepreneurs

To be a successful entrepreneur he must have the following characteristics:

1. Risk –Taker
2. Flexibility .
3. Self – Confidence
4. Tenacity
5. Passion
6. Professionalism
7. Integrity
8. Self - motivation

Qualities of Successful Entrepreneurs

Successful business people have many traits in common with one another. They are:

1. Disciplined – These individuals are focused on making their business work, and eliminate any
hindrances or distractions to their goals. They are disciplined enough to take steps every day
toward the achievement of their objectives.
2. Confidence – Entrepreneurs do not ask questions about whether they can succeed or whether
they are worthy of success. They are confident that their business will succeed. They exude
confidence on everything they do.
3. Open Minded – Entrepreneurs realize that every event and situation is a business opportunity.
Ideas are constantly being generated about workflows and efficiency, people skills and potential
new businesses.
4. Self- starter –Entrepreneurs know that something needs to be done, they should start it
themselves. They set the parameters and make sure that projects follow that path. They are
proactive, not waiting for someone to give them permission.
5. Competitive – Many companies are formed because an entrepreneur knows that they can do a
job better than the other. They need to win at the sports they play and need to win at the
businesses that they create.
6. Creativity – Being able to make connections between seemingly unrelated events or situations
that often come with solutions which are the synthesis of other items. They will repurpose the
product to market them to new industries.

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 7. Determination – They are not thwarted by defeats. They look defeat as an opportunity to
success. They are determined to make all of their endeavors succeed, so will try and try again
until it does.
8. Strong work ethic – Will often be the first person to arrive at the office and the last one to leave.
Their mind is constantly on their work, whether they are in or out of workplace.

Skills Entrepreneurs Must Have

1. Management skills
2. Network skills
3. Financial Management skills
4. Social Skills

Benefits of Becoming Successful Entrepreneurs

Entrepreneurs are the only people who will work 80 hours a week to avoid working 40 hours a
week. While this maybe tongue - in –cheek, it is true that entrepreneurs have built a reputation for
breaking out of the mold and hardworking hard to live a certain kind of life.

That is because, for many ambitious professionals, the benefits of entrepreneurs are incredibly
rewarding.

1. A flexible schedule – So many people begrudge the office routine that is called the 9 to 5 grind.
As an entrepreneur, you have the opportunity to break out of the cycle and create your own
schedule. This scheduling power isn’t just feeling, it also may be healthier as well.
2. Autonomy – Reports on the multiple studies that have demonstrated the link between
autonomy and job satisfaction. It turns out that employees who have more control over the
work tend to be more engaged and less emotionally exhausted.
3. Creating a career that aligns with your values – It is intensely gratifying experience. Someone
who believes in respecting the environment, for instance would probably find a career in
renewable energy incredibly fulfilling.
4. Meeting like – minded people - By becoming an entrepreneur, you will join a group of ambitious
and helpful people who believe in bettering themselves and the world. There are plenty of
opportunities to connect with mentors, brainstorm with fellow professionals, and reach out for
help during tough times. No one succeeds alone, but with a supportive network of like-minded
people entrepreneurs don’t need to.
5. Constant growth and development - Starting a company forces you to constantly improve your
skillset, from marketing to closing deals for creating excel reports. There is always more to learn
and apply to your business, which can prevent complacency and encourage constant
professional growth.
6. Unexpected and thrilling experience – Not knowing exactly how the day is going to play out
when you wake up is exciting especially when compared to the predictable and monotonous
schedule of a traditional office job.

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 7. Choosing who to work with – Entrepreneurs can choose which clients to work with, employees
to hire and partnership to pursue. If having to control over business relationships appeals to
you, the entrepreneurs life maybe perfect to you.
8. Greater self – confidence – Nothing boosts your confidence more than batting self- doubt and
coming out on top. Many entrepreneurs become more confident in their self- sufficiency as
time goes on and they see what they are truly capable of.
9. Leadership experience – Self-discipline, communication skill, passion, optimism, patience and
unrelenting work ethic. Building a company from the ground up hones these leadership traits
which mean that you can transform into an inspiring leader both professionally and personally.
10. The best “Offices” – Digital nomads are becoming increasingly common. These types of
entrepreneurship often combine fun travel with online business, and work from cafes, hotels,
and co-working spaces in the coolest cities around the globe which can make for some neat
offices.

RISK OF AN ENTREPRENEURSHIP:

1. Financial Risk - An entrepreneur will need funds to launch a business either in the form of loans
from investors, their own savings or funds from family. Any new business should have a financial
plan within the overall business plan showing income projections, how much cash will be
required to break – even and the expected return to investors in the first five – year timeframe.
2. Strategic Risk – An impressive business plan will appeal to investors. However, we live in the
dynamic and fast –faced world where strategies can become outdated quickly. Changes in the
market or the business environment can mean that a chosen strategy is the wrong one and the
company might struggle to reach its benchmark.
3. Technology Risk – New technologies are constantly emerging, particularly in the era of the
fourth industrial revolution. Some of these changes are “paradigm shifts” or “disruptive”
technologies. To be competitive, a new company may have to invest heavily in new systems and
processes, which could affect drastically the bottom line.
4. Market Risk – Many factors can affect the market for a product or service. The ups and downs
of the economy and the new market trends pose a risk to new businesses, and a certain product
might be popular one year but not the next.
5. Competitive Risks – An entrepreneurial must always be aware of its competitors. If there are no
competitors at all, this could indicate that there is no demand for a product. If there are a few
large competitors, the market might be saturated or the company might struggle to compete.
6. Environmental, Political and Economic Risk – Some things cannot be controlled by a good
business plan or the right insurance. Earthquakes, tornados, hurricanes, wars and recession are
all risks that a companies and new entrepreneurs may face. A market for under develop
country, can be unstable and unsafe, or logistic rates or tariffs might make trade difficult
depending on the political climate in time.

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ACTIVITY # 1

Answer the following questions.

1. What are the characteristics of a successful entrepreneur and explain.

2. Skills that an entrepreneur should have to become a successful entrepreneur.

AVTIVITY# 2

Survey ten (10) customers from your two (2) frequently visited restaurant/s. The survey content should
align with the needs of customers, the goods and the services expected from the food business. This
activity will provide a wealth of information about customers’ perception. The result of the survey can
be used to fine tune and know how to market the restaurant better for the entrepreneurs’ advantage in
order for the business to be successful.

ASSESSMENT:

SAQ # 1 Directions: Write T if the statement is correct and write F if the statement is wrong, give the
correct answer on the blank.

_____________1. The quality of being disciplined means focusing on making the business work, and
eliminating any hindrances or distractions to their goals. They are determined enough to take steps
every day toward the achievement of their objectives.

_____________2. Entrepreneur is a person who organizes a venture to benefit from an opportunity,

rather than working as an employee.

_____________3. One of the traits of successful entrepreneurs is being Open-minded wherein you know
that something needs to be done, and they should start it themselves.

_____________4. Entrepreneur is a process of creating a new enterprise and bearing any of its risk, with
view of making the profit.

_____________5. An entrepreneur don’t want to have boss, they don’t want reality of having people in
superior position, managing their work and looking over their schedule.

_____________6. Technology risk is the ups and downs of the economy and the new market trends
pose a risk to new businesses, and a certain product might be popular one year but not the next.

_____________7. Autonomy as one of the benefits of being an entrepreneur means you have the
opportunity to break out of the cycle and create your own schedule.

_____________8. Environmental, Political and Economic Risk are some of the things that cannot be
controlled by a good business plan or the right insurance.

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_____________9. Leadership experience credits self-discipline, communication skill, passion, optimism,
patience and unrelenting work ethic.

_____________10. Strategic risk is when an entrepreneur will need funds to launch a business either in
the form of loans from investors, their own savings or funds from family.

Answers to SAQ #1

1. T
2. T
3. F – Self-starter
4. F - Entrepreneurship
5. T
6. F - Market Risk
7. F - Flexible schedule
8. T
9. T
10. F - Financial risk

ASQ # 2 Directions. Enumerate four (4) skills that entrepreneurs must have and at least six (6)
characteristics of successful entrepreneurs.

Answers to ASQ # 2

Skills Entrepreneurs must have:

1.
2.
3.
4.

Characteristics of Successful Entrepreneurs:

1.
2.
3.
4.
5.
6.

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Answers to ASQ # 2

Skills Entrepreneurs must have:

1. Management skills
2. Network skills
3. Financial Management skills
4. Social Skills

Characteristics of Successful Entrepreneurs:

1. Risk –Taker
2. Flexibility .
3. Self – Confidence
4. Tenacity
5. Passion
6. Professionalism
7. Integrity
8. Self - motivation

REFERENCES:

https://www.questia.com/library/journal/1P3-2184071411/determinants-of-entrepreneur-s-success-in-a-
developing

https://purplecowagency.com/5-reasons-why-people-become-entrepreneurs/

https://www.under30ceo.com/10-qualities-of-a-successful-entrepreneur/

https://cfmanitoba.ca/blog/10-awesome-benefits-of-becoming-an-entrepreneur

https://www.investopedia.com/ask/answers/040615/what-risks-does-entrepreneur-face.asp

MODULE WRITER:

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