entrepreneurial background and characteristics 4
TRANSCRIPT
04/15/2023 Entrepreneurial Leadership-HIMS
Entrepreneurial background and characteristics
Small Business Owners
• Small business owners are people who own a major equity stake in a company with fewer than 500 employees.
• In 1997 there were 22.56 million small business in the United States.
• 47% of people are employed by a small business.
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Employee Satisfaction
• In companies with less than 50 employees, 44% were satisfied.
• In companies with 50-999 employees, 31% are satisfied.
• Business with more than 1000, only 28% are satisfied.
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Employee Satisfaction
Employee Satisfaction
2831
44
0
10
20
30
40
50
less than 50 50-999 1000+
Number of Employees
Sat
isfa
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n P
erce
nta
ge
less than50
50-999
1000+
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Advantages of a Small Business
• Greater Opportunity to get rich
• Feel more important
• Feel more secure
• Comfort Level
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Entrepreneurial Leadership-HIMS
Disadvantages of a Small Business
• Lower guaranteed pay• Fewer benefits• Expected to have many skills• Too much cohesion• Hard to move to a big company• Large fluctuations in income possible
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Why NOT to be an Entrepreneur
• Uncertainty of income• Risk of losing entire invested capital• Lower quality of life until business gets
established• High levels of stress• Complete responsibility• Constant depression during initial phase (do or
die)
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Who are entrepreneurs?
• Common traits
– Original thinkers
– Risk takers
– Take responsibility for own actions
– Feel competent and capable
– Set high goals and enjoy working toward them
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• Common traits
– Self employed parents
– Firstborns
– Between 30-50 years old
– Well educated – 80% have college degree and
1/3 have a graduate level degree
Why should you be interested?
• Many young people have succeeded:– Michael Dell - Dell Computers– Frank Carney - Pizza Hut– Paul Orfalea - Kinko’s – Fred DeLuca - Subway.– Kristy Taylor - SkinCareRx.com
• Opportunity to reap large profits
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Successful and Unsuccessful Entrepreneurs
• Successful– Creative and Innovative– Position themselves in
shifting or new markets– Create new products– Create new processes– Create new delivery
• Unsuccessful– Poor Managers– Low work ethic– Inefficient– Failure to plan and
prepare– Poor money managers
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Characteristics of Entrepreneurs
Successful Entrepreneurs
Key Personal Attributes
Good Technical Skills
Strong Managerial Competencies
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Key Personal Attributes
• Entrepreneurs are Made, Not Born!
– Many of these key attributes are developed early in life, with the family
environment playing an important role
– Entrepreneurs tend to have had self employed parents who tend to
support and encourage independence, achievement, and responsibility
– Firstborns tend to have more entrepreneurial attributes because they
receive more attention, have to forge their own way, thus creating
higher self-confidence
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Key Personal Attributes (cont.)
• Entrepreneurial Careers– The idea that entrepreneurial success leads to more
entrepreneurial activity may explain why many entrepreneurs start multiple companies over the course of their career
– Corridor Principle- Using one business to start or acquire others and then repeating the process
– Serial Entrepreneurs- A person who founds and operates multiple companies during one career
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Key Personal Attributes (cont.)
• Need for Achievement– A person’s desire either for excellence or to succeed in
competitive situations– High achievers take responsibility for attaining their goals,
set moderately difficult goals, and want immediate feedback on their performance
– Success is measured in terms of what those efforts have accomplished
(McClelland’s research)
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Key Personal Attributes (cont.)
• Desire for Independence
– Entrepreneurs often seek independence from others
– As a result, they generally aren’t motivated to perform well in large, bureaucratic organizations
– Entrepreneurs have internal drive, are confident in their own abilities, and possess a great deal of self-respect
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Key Personal Attributes (cont.)
• Self-Confidence– Because of the high risks involved in running an
entrepreneurial organization, having an “upbeat” and self-confident attitude is essential
– A successful track record leads to improved self-confidence and self-esteem
– Self-confidence enables that person to be optimistic in representing the firm to employees and customers alike
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Key Personal Attributes (cont.)
• Self-Sacrifice– Essential– Nothing worth having is free (no pain no gain)– Success has a high price, and entrepreneurs have to be
willing to sacrifice certain things
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ENTREPR E NEURIAL FEELINGS
There is no "true entrepreneurial profile"- entrepreneurs come from many educational backgrounds, family situations, and work experiences.
A potential entrepreneur may presently be a nurse, secretary, assembly line worker, sales person, mechanic, home maker, manager or engineer.
A potential entrepreneur can be male or female and of any race or nationality.
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ENTREPR E NEURIAL BACKGROUND
Only a few background characteristics have differentiated the entrepreneur from the general populace or managers.
Childhood Family Environment The impact of birth order and social status has had conflicting research results. There is strong evidence that entrepreneurs, both male and female, tend to have self-employed or entrepreneurial fathers. Having a father who is self-employed provides a strong inspiration in the example of independence and flexibility of self-employment. This feeling of independence is often further enforced by an entrepreneurial mother.
04/15/2023 Entrepreneurial Leadership-HIMS
Education
Education appears important in the upbringing of the entrepreneur, in the level of education obtained and in playing a major role in coping with problems.
Although formal education is not necessary for starting a new business, it does provide a good background.
In education, entrepreneurs experienced some disadvantage, with few having degrees in engineering, science, or math.
The ability to deal with people and communicate clearly in written and spoken work is also important.
Academic qualification is a barrier or facilitator in the way of entrepreneurship?Article …………..
04/15/2023 Entrepreneurial Leadership-HIMS
Age
Entrepreneurial age is the age of the entrepreneur reflected in the experience.
Entrepreneurial experience is one of the best predictors of success.
In chronological age, most entrepreneurs start their careers between ages 22 and 55.
Earlier starts in an entrepreneurial career seem to be better than later ones.
Generally, male entrepreneurs start their first venture in their early 30s, while women tend to do so in their middle 30s.
Between 30-50 years old
04/15/2023 Entrepreneurial Leadership-HIMS
Work History
Dissatisfaction with one’s job often motivates the launching of a new venture.(Gift within trouble)
Previous technical and industry experience is also important once the decision to start a business is made.
Experience in the following areas is particularly important: financing; product or service development; manufacturing; development of distribution channels; and preparation of a marketing plan.
As the venture becomes established, managerial experience and skills become more important.
Entrepreneurial experience becomes increasingly important as the complexity of the venture increases.
04/15/2023 Entrepreneurial Leadership- HIMS
MOTIVATION
While motivations may vary, the reason cited most often for becoming an entrepreneur independence-not wants to work for anyone else.
Other motivating factors differ between male and female entrepreneurs.
Money is the second reason for men’s starting a venture.
Job satisfaction, achievement, opportunity, and money are the second order reasons for women
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