ENTREPRENEURSHIP

DEEPAK BAJAJ

SESSION II
Chapter I - Entrepreneur & Entrepreneurship Management

Characteristics & Traits of an Entrepreneur

CHARACTERISTICS & TRAITS OF AN ENTREPRENEUR

Entrepreneurial Characteristics & Traits

Entrepreneurial Motivation Personal Effectiveness

Personality Combinations

ENTREPRENEURIAL CHARACTERISTICS & TRAITS

Entrepreneurial traits & motivation are indispensable functions of mgt. Entrepreneur is the person who preserves his dignity, self respect, values, sentiments, aspirations, dreams apart from economic status. Indeed, economic betterment & social upliftment motivates a person to distinguish from others. The entrepreneurs have some basic values & responsibilities.

Entrepreneur is the one who by virtue of his qualities & characteristics distinguishes himself as a visionary carrying dreams & desire to achieve & lead his enterprise & men to success.

The intention of creating a dream gives an entrepreneur the energy & desire to become involved in its implementation & willingness to change. During the formulation of a dream, everyone in the organization participates & this allows people to start seeing each other in a different light. Characteristics of an entrepreneur that contribute to success are the result of his achievement motivation. McClelland in his book Future of Entrepreneurship in India has identified an entrepreneur as a person with high degree of technical competence, initiative, good judgment, intelligence, energy, leadership qualities, self confidence, positive attitude, honesty, creativeness, fairness, tactfulness, emotional stability. An entrepreneur with higher level of following traits stands better chances of success as compared to others: Mental Ability intelligence & creative thinking. Clear Objective clarity about his objective Business Secrecy - must be able to guard business secrets

Characteristics of an Entrepreneur

Human Relation Ability emotional stability, personal relations, considerations & tactfulness, good relations with customers as well as with employees Communication Ability effectively communicate with customers, employees, suppliers & creditors Robert D Hisrich identified a few more personal characteristics that an entrepreneur should possess.

Commitment commitment to achieve the goal, be an example of commitment to his employees. Motivator team builder, keep it motivated & provide an environment for individual growth & career development. Self Confidence strong belief in himself, his capabilities & his capacity to deal with unanticipated situations. Long Term Involvement commitment to the project or business functions for sufficiently long duration.

High Energy Level ability to work long hours for sustained period of time.
Persistent Problem Solver intense desire to complete a task by solving all intermediate problems, creativity as problem solving. Goal Setter set challenging yet realistic goals. Moderate Risk Taker capacity to take moderate risks & he should learn from each small or big failure.

CHARACTERISTICS
ADMINISTRATIVE ABILITY ORGANISATIONAL SKILLS

E N T R E P R E N E U R

INTELLIGENCE

CREATIVITY
INNOVATION CLARITY IN OBJECTIVE

BUSINESS SECRECY
SOUND KNOWLEDGE EMOTIONAL STABILITY PUBLIC RELATIONS EFFECTIVE COMMUNICATION TECHNICAL KNOWLEDGE

Qualities of an Entrepreneur
A true entrepreneur besides possessing functional qualities must also possess broad personality which helps in developing initiative & drive to accomplish great tasks & face challenges squarely. James J Berne has stressed the following qualities of a good entrepreneur: - An enterprising individual :

he is energetic, hard working, resourceful, aware of new opportunities, able to adjust himself to changing conditions with ease & willing to assume tasks involved in change. interested in advancing technologically & in improving the quality of his product or service. interested in expanding the scales of his operations by reinvesting his earnings. visualizes changes & adapts to changes. a firm believer in planning & systematic work.

works for society at large & the good of his fellow beings.

ENTREPRENEURIAL MOTIVATION

Motivation is an indispensable function of management encompassing complex aspect of human behaviour. Contributions have been made by many sociologists, social anthropologists, psychologists & business executives. According to Dalton E McFarland Motivation refers to the way in which urges, desires, drives, striving, aspirations or needs direct, control or explain the behaviour of human being. Basic elements of process of motivation are Motive

Behaviour Goal. Two theories prominently discussed are: Maslows Need Hierarchy Theory McClellands Acquired Needs Theory

Maslows Need Hierarchy Theory This theory is based on human needs. Needs are classified into sequential priority from lower to higher. As per Maslow, all human needs can be classified in five need-clusters.

Physiological Needs

Safety & Security Needs

Social Needs Esteem & Status Needs

Self Actualization Needs

McClellands Acquired Needs Theory According to him a person acquires three kinds of needs as result of his life experience.

Need for Affiliation Need for Power Need for Achievement

MASLOWS NEED HIERARCHY

Morality, Creativity, Spontaneity, Problem solving, Lack of prejudice, Acceptance of facts

Self actualization needs Esteem & Status need Social needs

Self Esteem, Confidence Achievement, Respect of others Respect by others

Family, Friendship, Sexual intimacy

Security of body, of Employment, of Resources, of Morality, of Family, of Health, of Property

Safety & Security needs

Physiological needs

Breathing, Food, Water, Sex, Sleep, Shelter

PERSONAL EFFECTIVENESS
It is important for an entrepreneur to explore his personal effectiveness. Personal effectiveness is usually seen in context of communication & refers to good communication skills based on following criteria

Fidelity Economy

Influence
Congruence Relationship building

If you are high in fidelity, economical & influential in communication, do not use conflicting cues & contribute to trusting relationship, you are high on personal effectiveness. You must judge yourself as honestly as you can & decide whether you are low or high on the personal effectiveness criteria.

JOHARI WINDOW

PERSONALITY COMBINATIONS
Self Disclosure

A Arena (Blue) This area of window refers to that part of behaviour which is known both to you as well as the people with whom one interacts.
B Blind (Red) This blind area refers to those aspects of behaviour which others know but you are not aware of. C Closed (Green) The closed area contains those aspects of yourself which are known to you but not known to others. D Dark (Brown) This area is inaccessible to you as well as others.

Combine areas of self-knowledge & personal effectiveness together Combining high or low personal effectiveness with a large
or small area in arena, you can make twelve possible personality combinations as follows:

Self confidence If you have large blind area & high effectiveness, you are most likely to be highly self confident. You rely more on your strengths & are blind to weaknesses. Impercipient (lacking in perception) If you have large blind area & low effectiveness, you are impercipient to the non verbal cues that people may give about your behaviour. Perceptive If you have a small blind area & high effectiveness, you are perceptive of both verbal & nonverbal cues. This will help you to quickly sense such cues & use them to change your strategy & style of interaction. Overcautious If your blind area is small with low effectiveness, you are likely to be excessively concerned with your weaknesses rather than concentrating on your strengths. If this pattern exists, it will be difficult for you to take risks & initiatives.

Good listener If you have a large closed area with high effectiveness, you are likely to be a good listener. Instead of giving your own opinion, you listen to the opinion of others but take decisions based on your own judgment. Secretive If your closed area is large & effectiveness is low, you are the secretive type; other persona may wonder how to judge you or what you expect from them. Frank If you have a small closed area with high effectiveness, you are likely to be frank. You give your feedback & express your opinion & points of view without hesitation. Egocentric If you have a small closed area but low effectiveness, you are likely to talk excessively about yourself, your achievements, your talents, your experiences & even your personal life. You are likely not to pay attention to others & their needs. Task-oriented If your arena is small & effectiveness is high, you are likely to be an effective administrator with high taskorientation. You do not maintain relationship with others on personal or social levels.