Based on the psychological characteristics that set entrepreneurs apart from non-entrepreneurs, the study of the entrepreneur has arisen. In the past 40 years, a wide range of attributes, like the need for success, risk-taking, inventiveness, or autonomy, have been highlighted as characteristics of entrepreneurs. Researchers have discovered a wide range of characteristics in both entrepreneurs and non-entrepreneurs. The trait approach is restricted to explaining how entrepreneurial behavior starts and develops through time since the entrepreneur's single and consistent "psychological profile" has not been established.
Entrepreneurship has long been a primary driver of economic growth and employment creation, and this might explain why entrepreneurial activity has received so much attention. Entrepreneurial conduct is defined as discovering and exploiting a new business opportunity for profit and expansion.
It entails three separate activities−
Identifying a new business opportunity,
Establishing a new company to capitalize on that opportunity, and
Managing the new enterprise to ensure its long-term success.
Launching a new enterprise is undoubtedly the most visible aspect of entrepreneurial behavior and the one that has prompted most research in the scientific community. There are several advantages to starting a new business for people, groups, and organizations. Several studies have shown that people who find and decide to create a new business opportunity are more self-confident and content with their jobs and lives since they feel high levels of autonomy, flexibility, and interest in their work. Employees who work on new initiatives are also happier with their jobs since these firms are more inventive and dynamic than older organizations and utilize more competitive human resource techniques.
In general, two broad categories can be used to describe "entrepreneurial research"−
The entrepreneur's personal qualities or characteristics.
The impact of surrounding cultural, political, social, and economic variables.
However, compared to other types of studies in the field, empirical investigations into the traits of entrepreneurs are nearly always more prevalent. The definition of entrepreneurs in terms of their features and qualities, such as creativity, has been the subject of numerous studies.
The following are the characteristics of entrepreneurial behavior−
The ability to deal with uncertainty is one of the characteristics associated with successful entrepreneurs. described as having the "tendency to see ambiguous situations as desirable" and the "tendency to view ambiguous situations as a source of threat." The ability to tolerate ambiguity has been linked to entrepreneurial ambition and individual innovation. Managers with a high ambiguity tolerance are more entrepreneurial. It has been discovered that entrepreneurs enthusiastically take on and deal with the unknown and endeavor to manage uncertainty. People with a high tolerance for ambiguity find ambiguous conditions tough and attempt to succeed in dealing with unstable and unexpected situations to perform well.
The degree to which people think they can influence events that impact them is known as their locus of control. Therefore, how closely people tie events to their actions differentiates them. According to Rotter, internal locus of control is the belief that one's experience of events depends on one's traits or deeds. On the other hand, external locus of control is the belief that one's actions have no influence whatsoever on how things turn out, i.e., that things turn out because of luck, chance, fate, or strong people. According to studies, internal locus of control and entrepreneurial entry have a favorable association, and the locus of control is connected to entrepreneurial intention.
Entrepreneurs are excellent achievers. Achievement-seekers can solve the issues with their particular obligations in the same circumstances. They like to accomplish objectives that are difficult for them right now. They can see the value of their efforts and great achievements because of their self-assurance. According to studies, having a high n-Ach is an important entrepreneurial trait and a leadership quality common among business owners. It also has an unquestionable connection to entrepreneurial leadership and behavior. In some earlier studies, n-Ach was used to gauge students' entrepreneurial traits.
Open-mindedness should be among the traits of entrepreneurs. Small business managers make important decisions by keeping an open mind. Open-mindedness is important because it allows managers to listen to novel ideas and take risks. Open-mindedness is seen as a fundamental quality of entrepreneurs.
Taking risks is crucial to becoming an entrepreneur and is linked to entrepreneurial intent. For a very long time, taking risks and entrepreneurship have been linked. Compared to non-entrepreneurs, entrepreneurs assume moderate-to-higher risks. According to McClelland, people with a "strong" desire to succeed tend to take on difficult and doable projects with their skills. According to certain studies, risk-takers among students would succeed as entrepreneurs more than risk-averse ones.
One of the primary psychological qualities and attributes associated with successful entrepreneurs has always been pragmatism. The "how to implement" question is addressed with pragmatism. The two entrepreneurial techniques most directly connected to pragmatism are decision-making and experimentation. Real effects or practical implications are what pragmatics are most concerned with. They focus on the outcomes rather than the fundamental nature of an event because they believe that change is the only constant.
One of the main obstacles to starting a business is fear of failure. On the other hand, general self-efficacy has consistently been identified as a crucial antecedent of entrepreneurship. According to several studies, taking on challenges is encouraged by a general attitude toward learning and the notion that one can develop. It is argued that entrepreneurs are risk-takers dissatisfied with their current situation.
Most business owners have an idea of where they want to go, and this vision serves as their compass as they pursue their business goals. This vision may be for the short, middle, or long term, but the ultimate goal of all visions is to be successful in growing one's business. Entrepreneurs with a clear vision can visualize every aspect of their firm, including the outcome they hope to achieve. There currently is enough information in the literature to focus on the entrepreneurial trait of vision.
Every entrepreneur is different but researchers have found the 8 most common characteristics. these characteristics are divided into broadly two types depending on personal and environmental factors. these characteristics are RIsk taking, Internal locus of control, Visionary, Risk-taking, challenge-taking, Achievement needs, Open Mindedness, Tolerance for Ambiguity, and Pragmatism. In order to be a successful entrepreneur one needs to have all these qualities which will help him to succeed further in life.
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