Personality Traits Of Entrepreneurs

The word entrepreneur refer to the person who is willfull to start his/ her own company or business and ready to bear/take risk. It is said that profit is the reward for bearing risk. Entrepreneural personality refers to those traits, attributes or characteristics, abilities, motives, attitude or value that moulds the activity and action of a person. Entrepreneur’s personality is set by no one but itself. Suppose if a person wins lottery, now the way he spend that money earned from lottery will depict his/her personality trait.

These traits cannot be changed but aspects can be. Five Macro traits: Openness: Capability to appreciate new ideas, feelings or art. Concientiousness: Tendency to be organized, carefull and discipline. Extreversion: It implies social, cultural and emotional stability. Agreebleness: It includes trust and modesty. Neuroticism: It implies the feeling of anxiety, nervousness sad or tense.

Relationship Between Personality and Entrepreneur

Prevalence of personality traits in entrepreneurs v/s other population: Researchers compare the traits of every general population to entrepreneur to finally define entrepreneur in a group.

This is foolish to compare steve jobs with average/normal person. Big 5 model, Self efficacy & innovativeness, Locus of control ,Need of achievement. Correlation of personality traits with venture phases:

• Probability of entry.
• Growth and success of entrepreneur.
• Probability of exiting of entrepreneurship .

Moderating traits and environmental factors: It explains how environmental factors affect and impact personality characteristics of an entrepreneurs .Complex process model of entrepreneurship: From this model we can conclude that entrepreneurship does not occure in a vacuum.

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Risk attitudes: For those who seeks high growth opportunities ,business is incredibly risky. Risk attitude describe as risk preference , risk tolerance, risk aversion and risk propensity. It also covers A. Methods of measuring risk attitude. B. Risk attitude of entrepreneurs vs. other population. C. Effect of risk attitude in startup process for entry exit and growth and success. Entrepreneurial self-efficacy, risk attitude and optimism: under this entrepreneurs enter into market competition a least chance or probability of success of venture only because of overestimation of capabilities as they are enjoying competitive environment. As approach use by camerer & Lavolla and Holm et. al. in which they are using skills and quiz to increase competitiveness among people. In simple words they clear with the help of hypotheses that at which time an entrepreneur should be optimistic and overconfident. If we talk about research regarding this part its more developed and cohesive as compared to other field of entrepreneurial characteristics research.

Goal and aspirations: Every entrepreneur hold various goals and aspirations when they start and operate their business and all this differ from each other due to different experiences. This research is quite narrow as compared to others and conclude with the fact that every entrepreneur have different characteristics due to different goals and aspirations. Firstly reasons for deciding to start a business: main question n arises under this research that whether the entrepreneur earn less then paid workers as thy expectations. As we know desire for autonomy and self fulfillment is going to be crucial and important part of new venture. Second one is entrepreneurial goals: Hurst and pugsley argued that who get huge non pecuniary benefits naturally magneted towards industries where production scale is low. Bhide explains the fast growing companies that had link with actions and behaviors of originators and creator of firm growth.

There are lots of research looking for particular industries where motivation of non pecuniary deriving goals of entrepreneurs. This is more explained by bergevoet who find the goals and behavior of entrepreneurs and determines the aim and policies in dutch diary farming industry. Some researchers found other basic for different entrepreneur goals ie, role of gender. Spanish researcher surveyed over comparison of gender as well as parental status. Intrinsic measures of bei g successful always valued more by women as compared to men but independency measures of success is valued equally between men and women. Inshort mostly every entrepreneurs have non pecuniary goals and strategies to know and support the crucial and significant part of economy and hopefully these motivations and research yield fruitful results.

Conclusion

This topic of personality trait of entrepreneurs have significance for study of entrepreneurship including determinants of choice of occupation either paid employment or entrepreneurship, anticipator of success of venture, policy evaluation of entrepreneurship, different approaches to educate entrepreneur and many more. The literature is still confused after several researches that a person with required set of personality traits should be selected into entrepreneurship or whether to select the one who develop such traits after coming into entrepreneurship experience. Moreover formore specialized setting it is also possible that they made time varying measure of personality traits. It is hard to forecast setting but substantial progress can be determined with predetermined traits.