Transcript Zion’s Stewards

CHAPTER TWO
Identifying Entrepreneurial
Characteristics
Chapter outline

Characteristics of Successful Entrepreneurs

Entrepreneur Self Assessment

The differences between Businessmen,
Managers and Entrepreneurs
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Characteristics of an Entrepreneur
a view point ………..
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Ability to deal with a series of tough issues
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Ability to create solutions and work to perfect them
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Can handle many tasks simultaneously
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Resiliency in the face of set-backs
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Willingness to work hard and not expect easy solutions
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Possess well-developed problem solving skills
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Ability to learn and acquire the necessary skills for the
tasks at hand
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Characteristics ………….

42
often
attributed
characteristics
in
the
Encyclopedia of Entrepreneurs!!!!!!!!!!!!!!!!
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Characteristics of an Entrepreneur… ..
1. Hard work
8. Information seeking
2. Self Starting
9. Eager to learn
3. Setting personal goals
10. Attuned to opportunities
4. Resilience
11. Receptive to change
5. Confidence
12. Commitment to others
6. Receptiveness to new ideas
13. Comfort with skills
7. Assertiveness
Source: Philip A. Wickham, Strategic Entrepreneurship-3rd Ed. Prentice Hall, 2007
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Common characteristics associated
with entrepreneurs by John Kao
1. Total commitment,
6. Realism & a sense of humor
determination & perseverance
2. Drive to achieve & grow
7. Seeking & using feedback
3. Opportunity & goal
8. Internal locus of control
orientation
4. Taking initiatives & personal
responsibility
5. Persistent problem solver
9. Calculated risk taking & risk
seeking
10.Low need for status & power
11.Integrity & reliability
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According to Kuratko & Hodgetts ………
1. Commitment, determination
& perseverance
10.Integrity & reliability
2. Drive to achieve & grow
11.Tolerance for failure
3. Opportunity orientation
12.High energy level
4. Initiative & responsibility
13.Creativity & innovativeness
5. Persistent problem solving
14.Vision
6. Seeking feedback
15.Self confidence & optimism
7. Internal locus of control
16.Independence
8. Tolerance of ambiguity
17.Teem builder
9. Calculated risk taker
Source: Kuratko & Hodgetts (2001)
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21st Century characteristics of
entrepreneurs
1. Recognize & take advantage
6. Hardworking
of opportunities
2. Resourceful
7. Optimistic
3. Creative
8. Innovator
4. Visionary
9. Risk taker
5. Independent thinking
10.Leader
Source: Soo Ji Min, ‘Made not born’, ENTREPRENEUR OF THE YEAR magazine, (Fall 1999)
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A different classification
The non-entrepreneurial
attributes
Desirable attributes
Perfectionist
Being ‘macho’
Core attributes
Capacity to
inspire
Intelligence
Knows it all
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• Commitment & determination
• Leadership
• Opportunity obsession
• Tolerance of risk
Values
• Ambiguity & uncertainty
• Creativity, self-reliance
•Adaptability, motivation to
excel
Energy,
health &
Creativity &
emotional
innovation
stability
Counter /
dependence
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A Psychological approach

Various branches of psychology have
attempted to find traits associated with
successful entrepreneurs such as;
• Psychodynamic approaches – Freud
• Biological approaches (Nature)
• Evolutionary approaches
• Behavioral approaches
• Social cognitive approaches
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HOWEVER, no straight relationship has been
found in relations to entrepreneurial traits
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A final set of
Entrepreneurial Characteristics ????
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Page # 12
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Entrepreneurial Skills
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What is a ‘skill’ ???????
- Knowledge which is demonstrated by action.
- It is an ability to perform in a certain way
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Entrepreneurial Skills
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Some General management Skills
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Strategy Skills
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Planning Skills
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Marketing Skills
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Financial Skills
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Project Management Skills

Time Management Skills
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Entrepreneurial Skills
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Some Human Relationship Skills
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Leadership Skills
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Motivation Skills
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Delegation Skills
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Communication Skills
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Negotiation Skills
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Entrepreneurial Skills
General Management skills
Individual Knowledge
Entrepreneurial
Performances
Personal Motivation
Human Relationship skills
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Entrepreneurs, Businessman & Managers
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Are these words synonyms???
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Are they same or different in their traits?????
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Are they doing the same thing?????
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If not what are the differences?????
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Types of Businesses
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Owner Manager
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Entrepreneur
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Manager
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Entrepreneurs Vs. Small Businessman
Entrepreneur
Small Businessman
Starts the venture, assumes
leadership & expands the venture
to fulfill personal goals & attains
self-accomplishment
Engages in business activities for
the purpose of profit support his
living & his family
Moderate risk taker
Low risk taker
Takes calculated risks
Follows others & invests in tested &
proven markets
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Entrepreneurs Vs. Managers
Differences in character traits………….
Entrepreneur
Manager
• Opportunistic
• Need for independence
• Innovative
• ‘Ability’ to live with uncertainty &
take measured risks
• Self confident
• ‘Willingness’ to take greater risks
& live with greater uncertainty
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Entrepreneurial focus Vs.
Administrative focus
Admin point of view
Entrepreneurial point of view
What resources do I control?
Where is the opportunity?
What structure determines our
organization’s relationships?
How do I capitalize on
opportunities?
How can I minimize the impact of
others on my ability to perform?
What resources do I need?
What opportunity is appropriate?
How do I gain control over these?
Source: Howard J. Stevenson & David E. Gumpert, 1995
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Entrepreneurial focus Vs.
Administrative focus
Admin point of view
Entrepreneurial point
of view
Strategic
orientation
Driven by controlled
resources
Driven by perception of
opportunities
Commitment to
Seize opportunities
Evolutionary, with long
duration
Revolutionary, with
short duration
Control of
resources
Ownership or
employment of
resources
Episodic use or rent of
required resources
Management
structure
Hierarchy
Flat with multiple
informal network
Source: Howard J. Stevenson & David E. Gumpert, 1995
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Entrepreneurs Vs. Conventional Managers
Entrepreneur
Conventional Manager
Views rules as guidelines only
Very conscious of rules & taboos
Concept of the future based on
personal goals. Low threshold for
frustration
Sensitive to the future & willing to
postpone rewards
Ambivalent towards control,
success, and responsibility. Can be
manipulative & exploitative of
others
Has a powerful need for acceptance
Impatient with discussions &
theories. Is prone to action &
seems impulsive
Able to identify problems in any
course of action. Makes detailed
plans
Source: Zimmer & Scarborough, Essentials of Entrepreneurship & small business
management
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Characteristic differences between
Entrepreneur & Manager
Characteristic
Entrepreneur
Manager
Behavior Characterized by Desire for Control
Delegation of Authority
Management Style
One-Man Show
Management Team
Driving Force
Creativity - Innovation
Establish and Preserve the
Status Quo
Organizational Growth
Rapid Reaction
Strategic Planning
Organization Structure
Informal, Flexible
Organized
Decision-Making
Intuitive
Collect Information and Seek
Advice
Definition of Aims
In terms of "Vision"
In Commercial Terms
Attitude to Money
A By-Product
Measure of Success
Attitude to Risk
Calculated Risks
Avoidance of Risks
Organizational Culture
"Entrepreneurial Culture"
"Management Culture"
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Types of Businesses
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Owner Manager
Often trade or craft based.
May not grow to any larger
size
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Entrepreneur
Pursuit of growth &
personal wealth through
value addition
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Manager
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Manages a business belongs to
someone else. Will build an
organization putting in
appropriate controls
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Life Cycle of Organizations
Hi-growth
Starting
Entrepreneurial
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Decline
Survival
Managerial
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Entrepreneur Self-assessment
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Key self-assessment instruments proposed by
Robinson, Stimpson, Huefner and Hunt
(1991)
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Key idea is to check how much Entrepreneurial
spirit is available inside individuals…….
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Entrepreneur Self-assessment
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Let’s take a self-assesment test!!!!!!!!!!!
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