ENTREPRENEURIAL PERSONALITY - Entrep Mind

ENTREPRENEURIAL PERSONALITY - Entrep Mind

1. UNIVERSITY OF SAINT ANTHONY
COLLEGE OF ENGINEERING & ARCHITECTURE
INSTRUCTOR: AR. ALVIRIE CLAIRE A. BERMEJO-UVERO, UAP, RMP, LPT
ENTREPRENEURIAL
PERSONALITY
GE ELEC 3: THE ENTREPRENEURIAL MIND

2. 1. THE ENVIRONMENT AS A FACTOR TOPIC OUTLINE 5. WHAT MOTIVATES PEOPLE TO
BECOME ENTREPRENEURS? 6. THE ENTREPRENEUR AND THE
MANAGER DISTINGUISHED 2. THE ENTREPRENEUR’S PERSONALITY 3. WHAT IS PERSONALITY? 4. CHARACTERISTICS OF ENTREPRENEURS

3. Operating a business enterprise is a very challenging
occupation. The rate of failure among those who dared to
make attempts is high. Only a small number of them
become successful and the levels of their success differ.
Some of them became highly successful and the rest are
either moderately or slightly successful. Those who fail
also differ in terms of degree of failure.
Clearly, entrepreneurship is not for everyone. But how do
we know, beforehand, that a person is a good prospect?
What determines success or failure? It is important for
those interested in entrepreneurship to know the answers
to those questions. Some guides provide clues and one of
them indicates that there are two complementary
factors that determine success or failure in an
entrepreneurship.
a. environment;
b. personality of the entrepreneur

4. THE
ENVIRONMENT
AS A FACTOR

5. THE ENVIRONMENT AS A FACTOR
An entrepreneurship will survive and grow in an
environment that is friendly and akin to it.
Nature provides us with examples of what
happens to entities living in certain environments.
For instance, giant clams thrive in the ocean, but
not in the river. The coconut palm will grow in the
Philippines but not in Sweden. These are so
because giant clams were designed by nature to
survive in saltwater, and freshwater rivers will be
hostile to it because it is not its natural habitat.
Coconut trees grow naturally in the tropics and
because Sweden has a cool, temperate climate,
they will not survive there.
In the same light, entrepreneurships will survive
and grow only in economic environments of free
enterprise.

6. THE ENVIRONMENT AS A FACTOR
In terms of support to entrepreneurships,
economic environments differ from place
to place. Economic environments may be
classified as follows:
fully supportive of entrepreneurships;
moderately supportive of
entrepreneurships and
not supportive of entrepreneurships
Economies that fully support
entrepreneurships makes it easy for
entrepreneurs to succeed. The exact
opposite may be expected in economies
that are not supportive of
entrepreneurship.

7. THE
ENTREPRENEUR’S
PERSONALITY

8. THE ENTREPRENEUR’S
PERSONALITY
Every person has a personality that
is unique and different from others.
Each personality type has a
corresponding type of job that fits it.
A certain personality, however, may
fit in more than one type of job,
although the level of fitness will be
different with each job.
A given personality, for instance, may
perfectly fit the entrepreneur’s job,
moderately fits the teacher’s job, but
is not fitted for the engineer’s job.

9. WHAT IS
PERSONALITY?

10. WHAT IS PERSONALITY?
Personality refers to the pattern of characteristics
that distinguishes one person from another.
It includes the person's traits, values, motives,
genetic blueprints, attitudes, emotional reactivity,
abilities, self-image, intelligence, and visible behavior
patterns.
Psychologists have made great advances in research
about personality. An interesting study is that one
made by Holland (quoted in Patton and McMahen,
2006 29-31). His proposal indicates six personality
types. They are as follows:
1. Realistic type 2. Investigative type 3. Artistic type
4. Social type 5. Enterprising type 6. Conventional type

11. 1. REALISTIC
This individual prefers
activities involving aggressive
behavior and physical
exertion requiring skill,
strength, and coordination.
Examples: farming and mining.
2. INVESTIGATIVE
This individual prefers to be
analytical, curious, methodical,
and precise.
Examples: crime investigator and
arson investigator.
SIX PERSONALITY TYPES
3. ARTISTIC
This person is expressive,
nonconforming, original, and
introspective.
Examples: songwriter and novelist.
4. SOCIAL
This person enjoys working
with and helping others and
purposefully avoids systematic
activities involving tools and
machinery.
Example: social worker.
5. ENTERPRISING
This person enjoys verbal
activities to influence others and
to attain power and status.
Examples: manager and
entrepreneur
6. CONVENTIONAL
This person enjoys the systematic
manipulation of data, filing of
records, or reproducing materials.
Examples: accounting, finance.

12. CHARACTERISTICS
OF
ENTREPRENEURS

13. CHARACTERISTICS
OF ENTREPRENEURS
1. Drive
2. Thinking ability
3. Human relations ability
4. Ability to communicate
5. Technical knowledge
6. Reasonable risk taker
7. Self-confident
8. Goal setter
9. Accountable
10. Innovative.
Successful entrepreneurs possess
certain characteristics that are unique
and different from those having other
occupations. Based on research by
experts, the following traits are
considered vital to a successful
career in entrepreneurship:

14. Success in entrepreneurship becomes possible
when the entrepreneur is self-motivated
enough to pursue his chosen course without
relenting even in the face of adversity.
Reaching a goal, however, is often achieved
through a series of moves. It is rare for
entrepreneurs to succeed with just a single
stroke. If he fails in his first attempt, he makes
another attempt. He repeats the attempts,
maybe with some improvements, until he
succeeds. This will happen if the person has
drive. The tension that occurs when a need is
not met is called drive.
DRIVE
CHARACTERISTICS OF ENTREPRENEURS
1

15. THINKING ABILITY
CHARACTERISTICS OF ENTREPRENEURS
2
The entrepreneur's job involves solving
problems and making decisions. When he
finds the correct solutions to problems that
confront him and then makes decisions that
are implemented, he comes closer to realizing
his goals.
A man with superior thinking ability can see
through the maze of information (or
disinformation) brought before him. That
ability is an ingredient of successful
entrepreneurship.
Reading the biographies of successful
entrepreneurs provides insight on how these
people used their intelligence to succeed in
their business endeavors.

16. Three types of persons will determine the survival and growth of
business firms: (1) the customer (2) the employee, and (3) the third
party with interest in the firm.
The customer makes the decision whether to patronize the firm or
not. His decision, however, will depend on what he thinks of the firm.
Perception on customer relation will definitely be a factor.
The employee can be productive and loyal to the firm. He can help
avoid production delays and shortages, wasteful consumption of
company resources, dissatisfied customers, and the like. He can be
an asset depending on what his superiors do to him.
Third parties with various interests regarding the firm can also be
made to be more cooperative and accommodating. This will
depend, however, on how the company relates to them. The internal
revenue service personnel and the police, for instance can be less
accommodating to the firm and they can make business operations
difficult.
All of the interests cited above can be useful partners of the firm,
but this will depend to a large extent on the ability of the
entrepreneur to relate with them.
HUMAN RELATIONS ABILITY
CHARACTERISTICS OF ENTREPRENEURS
3

17. Communication skill is a very important
characteristic an entrepreneur must have if
success is expected. The ability to
understand and be understood makes it
easier for the entrepreneur to transact
business with customers, bankers, and
government officials.
When the entrepreneur gives orders that are
easily understood, wastages in time and
materials are minimized. An entrepreneur who
has little ability to communicate tends to
demoralize and alienate his staff. What usually
happens next is low productivity and high
employee turnover.
ABILITY TO COMMUNICATE
CHARACTERISTICS OF ENTREPRENEURS
4

18. TECHNICAL KNOWLEDGE
CHARACTERISTICS OF ENTREPRENEURS
5
Operating an entrepreneurship requires the
performance of major and minor tasks.
In running a restaurant, for instance, important
tasks may include the following: recruitment of
personnel, purchasing of materials,
bookkeeping, sanitation, cashier-ing, cooking,
and others. The restaurant entrepreneur must
at least be familiar with and possess some
technical knowledge about how the various
tasks are performed.
It will be easier for him to devise a strategy on
how he will manage his firm to effectively
compete with others.

19. When a person starts a new venture, he has already begun
to assume the risk of business failure. Entrepreneurs,
however, normally do not assume unreasonable risks.
Theoretically, ventures with zero risks yield zero benefits.
Those who aspire for benefits like profits must reckon with
possible losses. There are instances, however, when the
possibility of benefits far outweighs the risk involved.
It is the function of the entrepreneur to determine when
this is so. The entrepreneur must calculate a reasonable
trade-off between risks and benefits.
Entrepreneurs are expected to be reasonable risk-takers,
not conservative but also not gamblers. They assume
risks but only after they are convinced that they have the
skills and resources to overcome the difficulties inherent
in a new venture. Table shown indicates how the
entrepreneur as a risk taker is compared with other types
of risk-takers.
REASONABLE RISK-TAKER
CHARACTERISTICS OF ENTREPRENEURS
6

20. A person cannot achieve much unless he
has sufficient confidence in himself. In
any undertaking, including
entrepreneurship, a person's belief in his
ability leads him to actual performance
and eventual success.
When a person has self-confidence, he
does his job without inhibition.
SELF-CONFIDENT
CHARACTERISTICS OF ENTREPRENEURS
7

21. Goals are very useful motivational tools,
especially those related to accomplishing the
objectives of entrepreneurs. A goal performs the
following functions:
a. it directs one's attention to a-specific
target;
b. it encourages one to exert effort toward
achieving something specific;
c. it encourages persistence; and
d. It fosters the creation of strategies and
action plans.
It is easy to understand that persons who are
goal setters would make entrepreneurs of high
success potentials.
GOAL SETTER
CHARACTERISTICS OF ENTREPRENEURS
8

22. ACCOUNTABLE
CHARACTERISTICS OF ENTREPRENEURS
9
The success of an enterprise will depend
much on the willingness of subordinates
to comply with the wishes of the
entrepreneur.
Compliance can be expected if the
entrepreneur is accountable enough to
take responsibility for whatever happens
to the firm.

23. Buyers will have to be persuaded to buy from the
entrepreneur's firm rather than from competitors.
The innovative entrepreneur, however, will be able to
handle this problem.
Innovation may be the only way the entrepreneur
achieve the following:
a. penetrate the market;
b. improve employee turnover;
c. reduce manufacturing cost
d. improve collection rate
Walter Disney is an example of a highly innovative
entrepreneur. He developed and incorporated new
technology and new ideas to draw customers. Some
of his accomplishments in entrepreneurship consist
of Mickey Mouse, Disneyland, and Walt Disney
movies (Ros Jay, 2001).
INNOVATIVE
CHARACTERISTICS OF ENTREPRENEURS
10

24. WHAT MOTIVATES
PEOPLE TO
BECOME
ENTREPRENEURS?

25. WHAT MOTIVATES PEOPLE TO
BECOME ENTREPRENEURS
Not everyone desires to be an
entrepreneur. Those who do, however,
are motivated by any or all of the
following:
1. desire to be one's own boss;
2. desire for financial rewards;
3. desire to create one's own job
security; and
4. desire to improve one's quality of life.

26. There are times when an employee sees
some good opportunities for his employer's
business. When he recommends action to be
undertaken and is ignored, the employee may
just proceed to take the opportunity and
organize his own business.
For instance, a professor in a university
thought that it's time for his employer to
open branches in several locations. His
recommendation to the president was
ignored. He could not convince his boss
about the importance of expansion. He
decided to be his own boss by establishing a
school for elementary students in the nearby
town.
DESIRE TO BE ONE'S OWN BOSS
WHAT MOTIVATES PEOPLE TO BECOME ENTREPRENEURS
1

27. Getting employed is the desire of most people.
This is understandable because many people
want sure monthly income. Some people,
however, do not get satisfaction from a fixed
monthly income which, most often, is
inadequate. Some think that they deserve to be
properly rewarded for their skills. The means
open to the mis entre-preneurship.
Although entrepreneurship is a very serious
proposition, some people are still attracted to
it. This is so because of the prospect of high
financial rewards. The financial rewards reaped
by successful entrepreneurs are enough to
motivate the would-be entrepreneur.
DESIRE FOR FINANCIAL REWARDS
WHAT MOTIVATES PEOPLE TO BECOME ENTREPRENEURS
2

28. Some employees feel that their jobs are not
secure. They think they could be fired for a
variety of reasons. For instance, when a
company decides on downsizing its
operations, employees are the first to be
affected. When management makes serious
errors and it affects the company's viability,
the jobs of the employees are
compromised.
Persons who cannot bear to worry about
job security may just decide to become
entrepreneurs. Even if the venture fails, the
entrepreneur knows that it is the result of
his poor performance.
DESIRE TO CREATE ONE'S
OWN JOB SECURITY
WHAT MOTIVATES PEOPLE TO BECOME ENTREPRENEURS
3

29. Oftentimes, employees do not have control over
their work schedules. As a result, they could not
fulfill some important family responsibilities.
Persons who travel daily to work also sacrifice
valuable time that could be spent with their
families.
To some people, engagement in entrepreneurship
provides them with some control over their work
schedules. An entrepreneur can choose a type of
business that will be compatible with the quality
of their life desires. Specifically, the business
location and the type of products sold can be
chosen to jibe with the personal and family needs
of the entrepreneur.
DESIRE TO IMPROVE ONE'S
QUALITY OF LIFE
WHAT MOTIVATES PEOPLE TO BECOME ENTREPRENEURS
4

30. THE
ENTREPRENEUR
AND THE
MANAGER
DISTINGUISHED

31. The terms "entrepreneur" and "manager" are
sometimes used interchangeably. Although
both jobs are useful to the economy, each
performs distinct functions.
An entrepreneur is a person with the skills,
ideas and courage to take risks to pursue a
business idea. A manager is a person who
manages the functions and operations of an
organization. The significant difference
between an entrepreneur and a manager is
their role in an organization.
THE ENTREPRENEUR AND
THE MANAGER DISTINGUISHED

32. Activity Emphasis of New Ventures:
For the firm to get along
in the first three stages,
the entrepreneur’s skill
is required.
The last two stages
require the skills of the
manager.
The entrepreneur’s task
vs. the manager’s task.
MANAGER
ENTREPRENEUR

33. A major distinction between the entrepreneur and
the manager is about orientation.
The entrepreneur (also alternatively called
promoter) feels confident of his ability to seize a
business opportunity regardless of the resources
under his current control.
The manager (also alternatively called the trustee)
emphasizes the efficient utilization of resources.
Note: At the pre start-up stage, the only activity of
the entrepreneur is identifying a good business
idea. When he decides on a business idea, he
starts operating with limited human resource and
capital. He does not consider new business ideas
from start-up to stable enterprise. As the business
grows, so does human resource and capital. New
business ideas may only be considered when the
venture fails.

35. The environment and the entrepreneur's personality are
the complementary factors that determine whether or not
the new business venture will succeed.
The entrepreneur's task will be easier in a friendly
environment and very hard, if not impossible in a hostile
environment.
Among the six personality types, the enterprising type is
the most appropriate for entrepreneurial ventures.
The personality traits considered vital to entrepreneurial
success consist of drive, thinking ability, human relations
ability, ability to communicate, technical knowledge,
reasonable risk-taker, self-confident, goal setter, accountable,
and innovative.
Persons are motivated to become entrepreneurs by the
following: desire to be one's own boss, desire for financial
rewards, desire to create one's own job security, and desire
to improve one's quality of life.
Entrepreneurs are different from managers because they
perform functions that are distinct from each other.

36. REFERENCE:
Entrepreneurial Mindset: Understanding Key Theories and Practices. https://www.studocu.com/ph/document/sti-
college/entrepreneurship/entrepreneurial-mind/65170716
THANK YOU
END.