Entrepreneurship Behaviour // Module Content// Week 13 // Lesson 13: Module 13

Course Name: ENTREP 1: ENTREPRENEUR BEHAVIOR

TOPIC TITLE: Promotion of Entrepreneurial Behaviour
TIME ALLOTMENT: 1.5 hours /
MODULE #: Module 4 Lesson 10
Period/Term: Final

Module Learning Objective

At the end of the module, learners should be able to:
 deeply understand the Entrepreneurial traits in term of need for achievement, focus of control,
risk taking and tolerance.
 To Discuss the Principles of Entrepreneurship Promotion.

Greetings everyone!
Welcome to Module 4 Lesson 10 of your course ENTREP 1: Entrepreneurial
Behaviour.

Let’s activate your prior knowledge!

If you have internet access, you may copy the link and browse the motivational video here. If you do not
have, it’s okay.
Entitled: Number # 1 8 Traits of Successful Entrepreneur
Link: https://www.youtube.com/watch?v=CXceSF6u33I
Credit to: James Sinclair Time Duration: 5:08 minutes

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Entrepreneurship Behaviour // Module Content// Week 13 // Lesson 13: Module 13

Let’s acquire new knowledge

Entrepreneurial Qualities
It is now widely accepted that, apart from the start-up phase, smallest firms in Europe
are more concerned about survival rather than growth and relatively few are especially
entrepreneurial (Gray 1998). Consequently, a lot of research in this field has focused on
finding the characteristics that set entrepreneurs and their firms apart from others.
Elizabeth Chell (1985, 1999), a social psychologist, has examined numerous psychological
trait-based approaches and concluded that, whilst psychological aspects such as
‘entrepreneurial intention’ and the ‘ability to recognize opportunities’ are strongly linked to
entrepreneurial behavior, the context in which the entrepreneur operates is also very
important. Entrepreneurship reflects complex interactions between the individual and the
situation, which has to be dynamic because business situations are always changing.
Additionally, Mark Casson (1982) identified ‘judgement’ as one of the qualities that
distinguishes the successful entrepreneur from the much larger group of non-
entrepreneurial SME owners. As mentioned before, business judgement can reflect an
innate ability but most frequently it directly derives from experience (or, more
accurately, learning from experience). However, past experience can also filter out our
ability to spot new opportunities or threats. Cultural effects related to family, locality and
friends can help us interpret the world but they can also color what we see. The same
may be true of the influences from various networks that business owners often belong to
(ranging from business associations such as Chambers of Commerce, business clubs and
so on, to more social links related to, say, sport or leisure activities). And, of course, our
own expectations and motivations of what we hope for in life, at work and in terms of a
career will affect both judgement and business behavior. On the other hand, the Open
University Business Schools (OUBS) has conducted research in this area over the
years. The findings from many different entrepreneurial firms, which reveal various
influences and feedback loops on the owner-manager's decision-making, are summarized
in Figure 1. as shown below:

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Entrepreneurship Behaviour // Module Content// Week 13 // Lesson 13: Module 13

Figure No. 2
Model of Entrepreneurial Decision Making

The influences and processes depicted in the model are complex but so too is the reality
of entrepreneurial business. To date, researchers have not been able to identify a core
and necessary bundle of attributes, characteristics or qualities that mark out successful
entrepreneurs unerringly from the large crowd of business owners. However, a commonly
quoted empirical and desk research study of new venture start-ups, that has stood the
test of time over the past quarter-century, was conducted through the Massachusetts
Institute of Technology by Jeffrey Timmons and colleagues (Timmons et al. 1977). They
identified 14 important entrepreneurial characteristics of successful enterprise owners (see
Box 2) which still frequently crop up in entrepreneurship research.

Behavioural Characteristic Entrepreneur

1. Drive and Energy
2. Self-confidence
3. High Initiative and Personal Responsibility
4. Internal Locus of Control
5. Tolerance of Ambiguity
6. Low Fear of Failure
7. Moderate Risk Taking
8. Long-Term Involvement
9. Money as a measure not merely an end

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Entrepreneurship Behaviour // Module Content// Week 13 // Lesson 13: Module 13

10. Use Feedback

11. Continuous Pragmatic Solving Problem
12. Use of Resources
13. Self-imposed Standards
14. Clear Goal Setting

Aside from the effects of the various influences that can affect business judgements, the main points to note
are:
1. Business situations consist of real challenges, constraints and opportunities that directly impact on
the business performance of a firm.
2. However, it is how entrepreneurs perceive these that guide their judgments and actions (which is
why accurate market information, the ability to learn and experience are so important).
3. Business perceptions are also influenced by personal and business motivations, peer pressures and
cultural influences (it could be argued that entrepreneur's perceptions are more closely aligned with
reality).
4. Entrepreneurial behavior is guided by the entrepreneur's expectations rather than a rigid set of
strategic objectives (again, it may be that the entrepreneur's expectations are more realistic and,
maybe, more ambitious than those of other business managers).
The process is not static but very dynamic with feedback and signals from the market
Business situations consist of real challenges, constraints and opportunities that directly impact on the
business performance of a firm.
5. However, it is how entrepreneurs perceive these that guide their judgments and actions (which is
why accurate market information, the ability to learn and experience are so important).
6. Business perceptions are also influenced by personal and business motivations, peer pressures and
cultural influences (it could be argued that entrepreneur's perceptions are more closely aligned with
reality).
7. Entrepreneurial behavior is guided by the entrepreneur's expectations rather than a rigid set of
strategic objectives (again, it may be that the entrepreneur's expectations are more realistic and,
maybe, more ambitious than those of other business managers).
8. The process is not static but very dynamic with feedback and signals from the market consciously
and indirectly affecting later decisions and actions.

9. Business situations consist of real challenges, constraints and opportunities that directly impact on
the business performance of a firm.
10. However, it is how entrepreneurs perceive these that guide their judgments and actions (which is
why accurate market information, the ability to learn and experience are so important).
11. Business perceptions are also influenced by personal and business motivations, peer pressures and
cultural influences (it could be argued that entrepreneur's perceptions are more closely aligned with
reality).
12. Entrepreneurial behavior is guided by the entrepreneur's expectations rather than a rigid set of
strategic objectives (again, it may be that the entrepreneur's expectations are more realistic and,
maybe, more ambitious than those of other business managers).

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Entrepreneurship Behaviour // Module Content// Week 13 // Lesson 13: Module 13

13. The process is not static but very dynamic with feedback and signals from the market consciously
and indirectly affecting later decisions and actions.
14. Business situations consist of real challenges, constraints and opportunities that directly impact on
the business performance of a firm.
15. However, it is how entrepreneurs perceive these that guide their judgments and actions (which is
why accurate market information, the ability to learn and experience are so important).
16. Business perceptions are also influenced by personal and business motivations, peer pressures and
cultural influences (it could be argued that entrepreneur's perceptions are more closely aligned with
reality).
17. Entrepreneurial behavior is guided by the entrepreneur's expectations rather than a rigid set of
strategic objectives (again, it may be that the entrepreneur's expectations are more realistic and,
maybe, more ambitious than those of other business managers).
18. The process is not static but very dynamic with feedback and signals from the market consciously
and indirectly affecting later decisions and actions.

As each context and set of market signals reflect industry, regional and life-cycle influences, it is
difficult to believe that each entrepreneur needs the same set of skills in order to achieve success. The
model in Figure 2 as shown below reflects the uniqueness of the business situation facing each
entrepreneur and the key areas where superior judgement will make a difference.

In addition, Timmons admitted that few entrepreneurs would possess all traits but felt that strengths in one
might compensate for weaknesses in others. Many of these characteristics are self-explanatory (such as
high personal drive and energy, self-confidence and setting clear goals) and some appear to be
linked. Others may be less obvious or well-known, such as money and profits being used as a measure of
success compared with others but less as an end in itself. Helping you to develop the last quality in the list,
the ability to set clear goals, is the ultimate objective of this module.

Assessment of new knowledge

Quiz #1 Enumeration/ Identification

Instruction: Write the correct answer on a sheet of paper.

Test- I Enumeration

Give at least five (5) behavioural characteristics of entrepreneur.

1.
2.
3.
4.
5.

6. Give at least one (1) main point to note when it comes to various influences that can affect business
judgements.

Test- II Identification
7.______________He/she is the one who identified ‘judgement’ as one of the qualities that
distinguishes the successful entrepreneur from the much larger group of non-entrepreneurial SME
owners.

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 Entrepreneurship Behaviour // Module Content// Week 13 // Lesson 13: Module 13

Test- III Fill in the blank

8. Most small firms in ________ are more concerned about survival rather than growth and
relatively few are especially entrepreneurial (Gray 1998)

9. ___________Reflects the uniqueness of the business situation facing each entrepreneur

and the key areas where superior judgement will make a difference.

10 _____________ They identified 14 important entrepreneurial characteristics of successful

enterprise owners.

References and Supplementary Materials

Books and Journals
https://www.open.edu/openlearn/money-business/business-strategy-studies/entrepreneurial-
behaviour/content-section---learningoutcomes

Disclaimer: I do not own any of the pictures/ clip arts included in this module. Credits to the rightful owner.

Activity #1

Instruction:

In a piece of paper, write your 3-5 sentences answers for the following questions and task.

1.What is your primary reason in building your own business in the near future?
2. What do you think your edge to your competitor?
3.Make you own SWOT analyzes base on your business type

Rubric for Subjective Assessment

Criteria Pts Grading scale

Subject 50 50 40 30 20
knowledge Excellent Good Fair Poor

Student demonstrates Student answers to all Student is able to Student does not
full knowledge by questions, without answer only have grasp of
answering questions with elaboration rudimentary information; student
explanations and questions. cannot answer
elaboration. questions about
subject.

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 Entrepreneurship Behaviour // Module Content// Week 13 // Lesson 13: Module 13

Organization 50 50 40 30 20
Excellent Good Fair Poor

Student presents Student presents Readers has Readers cannot

information in logical, information in logical difficulty following understand
interesting sequence sequence which presentation presentation because
which readers can follow. audience can follow. because student there is no sequence
jumps around. of information.

Congratulations for finishing the content.

Now, give yourself two big thumbs up for your effort!!!

Timeline!

Let’s be mindful to your deadline.

Activity Name of Activity Date of submission Remarks

Number

Quiz

Activity

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Entrepreneurship Behaviour // Module Content// Week 13 // Lesson 13: Module 13

CARD -MRI Development Institute, Inc. Module Learning

Entrepreneurship Behaviour // Module Content// Week 13 // Lesson 13: Module 13

CARD -MRI Development Institute, Inc. Module Learning

Entrepreneurship Behaviour // Module Content// Week 13 // Lesson 13: Module 13

Test- II Identification
1. ______________He/she is the one
who identified ‘judgement’ as one of the
Assessment of new qualities that distinguishes the successful
entrepreneur from the much larger group
knowledge of non-entrepreneurial SME owners.

Quiz #1 Enumeration/ Identification Test- III Fill in the blank

Instruction: Write the correct answer on a sheet 2. Most small firms in ________ are more
of paper. concerned about survival rather than
growth and relatively few are especially
Test- I Enumeration entrepreneurial (Gray 1998)

Give at least five (5) behavioural characteristics 8. ___________Reflects the uniqueness of

of entrepreneur. the business situation facing each entrepreneur
1. and the key areas where superior judgement will
2. make a difference.
3.
4.
5.

Give at least one (1) main point to note when it

comes to various influences that can affect 9. _____________ They identified 14
business judgements. important entrepreneurial characteristics of
successful enterprise owners.

10. ______________

References and Supplementary Materials

Books and Journals
https://www.open.edu/openlearn/money-business/business-strategy-studies/entrepreneurial-
behaviour/content-section---learningoutcomes

Disclaimer: I do not own any of the pictures/ clip arts included in this module. Credits to the rightful owner.

Activity #1

Instruction:

In a piece of paper, write your 3-5 sentences answers for the following questions and task.

1.What is your primary reason in building your own business in the near future?
2. What do you think your edge to your competitor?
CARD -MRI Development Institute, Inc. Module Learning
 Entrepreneurship Behaviour // Module Content// Week 13 // Lesson 13: Module 13

3.Make you own SWOT analyzes base on your business type

Rubric for Subjective Assessment

Criteria Pts Grading scale

Subject 50 50 40 30 20
knowledge Excellent Good Fair Poor

Student demonstrates Student answers to all Student is able to Student does not
full knowledge by questions, without answer only have grasp of
answering questions with elaboration rudimentary information; student
explanations and questions. cannot answer
elaboration. questions about
subject.

Organization 50 50 40 30 20
Excellent Good Fair Poor

Student presents Student presents Readers has Readers cannot

information in logical, information in logical difficulty following understand
interesting sequence sequence which presentation presentation because
which readers can follow. audience can follow. because student there is no sequence
jumps around. of information.

Congratulations for finishing the content.

Now, give yourself two big thumbs up for your effort!!!

Timeline!

Let’s be mindful to your deadline.

Activity Name of Activity Date of submission Remarks

Number

Quiz

Activity

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Entrepreneurship Behaviour // Module Content// Week 13 // Lesson 13: Module 13

CARD -MRI Development Institute, Inc. Module Learning