Chapter 1 - Characteristics of Entrepreneurs 6.
The American Heritage Dictionary defines an entrepreneur as a
Entrepreneurs are certainly not supermen. Neither do they
perform miracles. They are just human beings. But they are
different from many of us. They possess several positive
characteristics which are responsible for their business success. For
instances, they have self-confidence, leadership, and creativity. Not
many of us have these qualities. Most of us shy away from business.
We prefer to be employees doing jobs which do not require great
risks like bankruptcy. The optimism and positive thinking of
entrepreneurs make a great difference between success and failure.
Positive thinking produces favorable results. We get what we deeply
think and believe. Being hardworking and opportunity seeker. An
entrepreneur acquires more profit.
Entrepreneur
There are several definitions or meanings of entrepreneur.
Here are some of them:
1. Cantillion defines an entrepreneur as one who bears uncertainty,
buys labor and materials, and sells products at uncertain prices. He
is one who takes risks and makes innovations on the factors of
production.
2. In French concept, an entrepreneur is an adventurer, undertaker,
and projector. His function is to supply and accumulate capital.
3. To Schumpeter, an entrepreneur is an innovator. He does new
things or does things in a new way. He supplies new products;
makes new techniques of production; discovers new markets; and
develops new sources of raw materials.
4. Peter Drucker says that an entrepreneur always searches for
change, responds to it and exploits it as an opportunity.
5. Say, an economist, explains that an entrepreneur is one who shifts
economic resources from an area of lower productivity to an area of
higher productivity and greater yield.
person who organizes, operates, and assumes the risk for business
ventures.
7. The pure entrepreneurs are those who launch their own ventures
from scratch. They develop scarce resources into successful
business by their instinct for opportunity, sense of timing, hard
work, and idea-producing activity. They accelerate the development
of our economy.
8. According to Geoffrey Meredeth, author of The Practice of
Entrepreneurship, entrepreneurs are people who have the ability to
see and evaluate business opportunities, to gather the necessary
resources and to take advantage of them, and to initiate
appropriate action to ensure success.
Characteristics of Entrepreneurs
Characteristics are distinguishing traits or qualities, like
honesty, courage, integrity or punctuality. Entrepreneurs have many
favorable interdependent characteristics which make them
successful and extra-ordinary persons. However, their business
success depends on realistic goals and hard work. Usually, goals are
achievable if these are based on the abilities, interests and
resources of individuals. Here are the most important
characteristics of entrepreneurs:
Reasonable risk-takers
Entrepreneurs enjoy challenges. But they are careful and
calculating. So, they shy away from high-risk situations, because
these may not be attainable. However, entrepreneurs also avoid
low-risk situations because it is profit or loss.
As a matter of fact, life has many risks. Whether we like it or
not, we make decisions the result of which are not certain. We are
lucky if we make the right decisions. But entrepreneurs are
different. They gather complete data about the situation, analyze
the data, and make their decisions. Since they are confident in their
abilities and optimistic in the results of their decisions, they are not
afraid to make difficult decisions. In view of the risk-taking abilities
of entrepreneurs, they make things happen rather than let them
happen.
Self-confident
Entrepreneurs have strong faith in their abilities. They
believe they can be the best in their field. They do not accept things
as they are, because they believe they can do things better.
Belief, affirmative thinking or positive thinking, enhances
self-confidence. It has been said that we succeed when we think
success. Faith moves mountains. Entrepreneurs are optimistic
individuals or positive thinkers. They always think of success. Such
deep faith drives them to work with more enthusiasm and
perseverance to reach their goals. The Bible states: “If ye have faith
as a grain of mustard seed… nothing shall be impossible unto you.”
Hardworking
Successful people always attribute their success to hard
work. Thomas A. Edison said that success is 99 percent perspiration
and 1 percent inspiration. We can easily confirm this by observing
top executives in governmental and non-governmental
organizations. They work far beyond the 8-hour schedule.
They started with practically nothing – except hard work
and determination – and now they are rich. Entrepreneurs,
although they are hardworking, enjoy challenges and difficult tasks,
and they love their work. Thus, their being hardworking is not really
a sacrifice. When people love their work, it is no longer work. It
becomes a joy. In fact, people who are always busy forget their
worries or problems.
Innovative
Entrepreneurs are creative. They do things in new and
different ways. For example, they create new products or services,
new methods of production, new markets, and new sources of raw
materials. They love to explore the unknown, and to blaze new
paths of progress.
Innovations are introduced to benefit both the economy
and society. Changes are made in response to the needs of people.
For instance, the high costs of production serve as an opportunity
for entrepreneurs to introduce a technology that can reduce costs
of production. Much better, they should introduce an innovation
which creates jobs for the jobless masses. According to the
legendary production, but on the production of the masses.
Leadership
Entrepreneurs are leaders by the very nature of their
functions. They are people who are task-oriented. They are effective
planners, organizers and implementors. And they are achievers.
Here are the essential leadership qualities:
- Selfless dedication
- Purpose and vision
- Courage
- Conviction
- Enthusiasm
- Integrity
- Tact
- Hard work
Leaders treat their fellowmen like human beings. They
respect human dignity, and are aware of other human needs like
belongingness, security, fulfillment and love. Entrepreneurs do not
exploit their workers or employees. Instead, entrepreneurs promote
the welfare of their employees.
Positive thinkers
 Entrepreneurs are positive thinkers. They think success and
bright sides. Such success consciousness leads entrepreneurs to
success. Success begets success. Dr. Charles Flory, a noted American
psychologist, said that wealth does not always come to the most
intelligent or to the most ambitious individuals, but to those
individuals who think money.
Decision-makers
Entrepreneurs make decisions. They cannot avoid this.
Being creative or innovative, they always make decisions on how to
improve their products, how to create new markets, how to
increase consumers satisfaction, or how to maximize profits. The
success of their business depends on their ability to make the rights
decisions.
Decision-making has five distinct phases:
1. Identifying the problem.
2. Gathering the data about the problem.
3. Formulating alternative solutions.
4. Selecting the best solution.
5. Implementing the solution/decision.
Choosing the Best Solution
The problem has to be identified and defined. Then gather
the data relevant to the problem. Organize and analyze the data to
be able to come up with alternative solutions. The next step is to
determine the best solution. Naturally, the best solution is
measured in terms of profitability. But is the solution
implementable?
In the final analyses, it is the implementation of the solution
that counts. A best solution which cannot be put into practice is not
a solution. Peter Drucker, a renowned economist and management
consultant, mentions four criteria of choosing the best solution:
1. Presence of risk
2. Economy of effort
3. Time factor
4. Availability of resources
Implementing Decisions
Entrepreneurs are generally careful. They implement their
decisions on a trial basis or limited scale. This is to test the feasibility
or profitability of their decisions. If they happen to be right in their
decisions, they implement their business projects, their losses have
been minimized.
However, the problems of implementing a decision can be
eliminated or minimized if the decision has been the product of
group action. As a democratic process, the beneficiaries, the
affected ones and those concerned in the implementation should be
involved in decision-making process. In community development,
the implementors and beneficiaries of the project must be involved
from planning to the implementation of the project.
Japan has many successful entrepreneurs, because it
considers employees the most important resource of business.
Employees are involved in planning, decision-making, and
implementation. Top management allows them to participate
actively – within their areas of competence – in the vital aspects of
the business. Through this approach, it is much easier to implement
programs or projects. This is planning from below or participative
management. A former president of a poor country said, “Planning
from the top is planning for the top.” – Obviously, such kind of
planning is not only undemocratic, but also ignores the rights and
capabilities of people.
Concept of the Filipino Entrepreneur
The Development Bank of the Philippines defines the qualities of an
entrepreneur:
1. Self-reliant
 An entrepreneur counts mainly on his own efforts and
succeeds mainly by doing a good job. He relies principally on his
own merit and work. His self-reliance is founded on hard work.
2. Risk-taker
He rises to a challenge and transfer problems into
opportunities. His daring is built on his competence which is marked
by openness to new ideas, new skills and new developments.
Despite his setbacks and mistakes, he is willing to start all over
again.
3. Industrious
He has a strong sense of pride in the workmanship of his
product. He is quality conscious in all the components of his
business. He is also precise in counting costs and in ensuring the
value of money for his product or service.
4. Humble
The true entrepreneur has the humility and single-
mindedness of purpose. Where there is a chance to earn, no matter
how lowly the task, he is at work patiently, unmindful of his social
status. To him rolling up his sleeves, getting his hands dirty is noting
to be ashamed of. Patience is his badge of security. Humility is the
quality that enables him to build a business from resources or
opportunities, simple needs and humble beginnings.
5. Helpful
He learns how to work with others from different fields,
conscious that with their help, effectiveness can be multiplied. He
thinks of others, especially those working for him, and of the
opportunities for advancement he can provide for them. Through
appropriate words and works, he shows that he truly cares for their
personal welfare and development.
6. Creative
He has a sense of perseverance and a spirit of initiative.
Never satisfied with things as they are, he continues to improve,
trying new and better ways of doing things. And when difficulties,
frustrations and failures come, he is never discouraged. Often, out
of these, create something new – another success, another problem
solved, another opportunity opened, another “first.”
7. Happy
The joy of this entrepreneur lies in the satisfaction of a
customer, whom he puts first over everybody else. He therefore
attends to the real needs of his customers with dispatch, efficiency,
and graciousness. A service-oriented person, he is a happy man for
he has discovered that the joy of giving is its own reward.
Determinants of Successful Entrepreneurship
Business enterprise failed due to poor management. Being
industrious is not enough. It is efficient management that counts
most in business success. The entrepreneur must possess the
following managerial skills
1. Ability to conceptualize and plan. The entrepreneur must view all
the aspects of the business, such as product, price, cost, inventory,
etc., in a related and coordinated manner. He must be able to plan
for the total operation of the business. His ability to foresee future
problems of his business is an excellent asset.
2. Ability to manage others. Management is getting things done by
others. As the business grows, more people are needed. The
entrepreneur must be able to organize work properly so that his
employees can perform their jobs efficiently and effectively. Good
human relations and communications are very important for the
entrepreneur. By letting others achieve the objectives of the
enterprise, the entrepreneur has more time for conceptualizing and
planning.
3. Ability to manage time and to learn. The entrepreneur is a
generalist. Especially when the business is still small, the owner
does everything: clerk, salesman and manager. In view of the
various functions of the entrepreneur, he should be an expert on
time management. He should also acquire basic training in small
business management and specialized courses in accounting,
finance, marketing and personnel relations. A real entrepreneur
does not actually stop learning. He can do this by reading, attending
seminars, or enrolling in college.
4. Ability to adapt to change. Not a few individuals resist change. They
stick to traditional or established practices. This is the culture of
many Filipinos, particularly the unschooled. A business who refuses
to adapt his operations to changing needs and tastes of consumers
is most likely to fail. Entrepreneurs, being innovative or creative,
quickly respond to changes for comparative advantage.

ACTIVITY 1
Direction: Write your answer in a piece of paper and send a photo
of it in CLEAR and READABLE format. Explain and elaborate your
answers.
1. Tell me something about yourself. (explain it further)
2. What is entrepreneurship?
3. Choose your top three characteristic of entrepreneurship.
Explain each and reason why you chose it.
4. Explain the four concept of determinant of successful
entrepreneurship.
5. If you were an entrepreneur how do you think our lesson
can help you in running your business.