Entrepreneurship

OUM: MPU 2222/MPU3223_V2

Topic 2

Identifying Entrepreneurial Characteristics

Dr. Azahari Jamaludin

Email: bjazahari@oum.edu.my
 Identifying Entrepreneurial
Characteristics

• Learning Outcomes
1. Identify 16 characteristics of successful
entrepreneurs; and
2. Describe at least three differences between
businessmen, managers and entrepreneurs.
Identifying Entrepreneurial Characteristics
Characteristics of Successful Entrepreneurs
 Initiative and Responsibility: actively seeking and taking the initiative
as well as being responsible for success or failure of the business
operations.
 High Commitment on the Ventures: To overcome business challenges.
 Opportunity Orientation: Able to seizing the extraordinary ones.
 Moderate Risk-taker: By doing business analysis; avoiding taking high
risk without good reasons.
 Confident (ability to succeed) and Optimistic (chances for success
based on reality)
 Creative and Innovative: help produce unique products thus, gaining
competitive advantages in their ventures.
 Seeking Feedback: learn from mistakes & to improve.
 Internal Locus of Control: the success or failure depends on
themselves.
Identifying Entrepreneurial Characteristics
Characteristics of Successful Entrepreneurs (Con’t)
 Tolerance of Failure: do not easily become disappointed, discouraged, or depressed
by failure.
 High Level of Energy: to cope with extraordinary workload and stress
 Team Building: Most successful entrepreneurs have highly qualified and well-
motivated teams that help handle the venture’s growth and development.
 Independent: They like to accomplish tasks in their own way. They want to have
authority to make important decisions.
 Flexibility: Entrepreneurs are not rigid in their ventures. They are flexible and have the
ability to adapt to the changing demands of their customers and businesses. Rigidity
may leads to failure.
 Drive to Achieve: Achievement seems to be the primary motivating force behind
entrepreneurs. Entrepreneurs are self-starters who internally have a strong desire to
compete, excel, pursue and attain challenging goals.
 Ability to Set Vision: Entrepreneurs know what they want to achieve. They have a
vision. This vision develops over time as the entrepreneur begins to realise what the
firm is and what it can become.
 Skilled at Organising: Entrepreneurs know how to put the right people together to
accomplish a task. Entrepreneurs are able to organise their resources in an effective
way so as to transform their visions into reality.
Identifying Entrepreneurial Characteristics

• Entrepreneurs are not the same with businessmen,

especially the small businessman.
• Not all businessmen are entrepreneurs. But, all
entrepreneurs are businessmen.
• Businessmen do have the characteristics of most
entrepreneurs but those characteristics are at a lower
stage compared to entrepreneurs.
• Several characteristics can be used to differentiate the
small businessman and the entrepreneur in the next
slide.
 Identifying Entrepreneurial Characteristics
Differences between Small Businessmen and Entrepreneurs
Small Businessman Entrepreneur

Doing business for profit to support Starts the venture, become a

his living expenses or his family leader, and expands the venture
expenses. for personal goals and
accomplishment

Low risk-taker Moderate risk-taker

Follow others and invests only in Takes calculated risks.

tested and proven
markets/business
 Identifying Entrepreneurial Characteristics
The Differences between a Conventional Manager and an
Entrepreneur
Conventional Manager Entrepreneur

Follow rules and procedures Rules as guidelines only

Sensitive to the future and The future based on personal

willing to postpone rewards goals. Low threshold (level) for
frustration
Able to identify problems in Impatient with discussions
any course of action. and theories. Prone to action
and seem impulsive (reckless).
 Q&A

Thank You