Qualities that Make a Successful Entrepreneur

I am happy to note that today more and more of the youth are thinking of going into business. This may be the result of being educated to be an entrepreneur. Schools, colleges and universities now offer entrepreneurship courses.

 Or this may be borne out of the influence of parents who are themselves entrepreneurs; who have grown their businesses and their children have to follow in their footsteps to join the family business.

Or may be out of necessity for the youth because there are no longer enough jobs in the market to absorb the growing number of new graduates yearly. On last count new graduates from college could be about 400 thousand yearly and only about 10 percent land in good jobs.

Nevertheless, the good thing is, finally, despite the slow process, more young people are changing their paradigm on how to move forward in life. Many of the young are considering becoming entrepreneurs. As entrepreneurs, instead of being job seekers, they now aim to be job providers running their own businesses.

The Young Entrepreneurs

For bankers,young entrepreneurs are a risky lot to lend to. Indeed, even discounting age, new entrepreneurs are risky borrowers.

Studies in the U.S.A. show that only one in 25 new businesses continue to operate for 10 years or longer.  Or still some studies say that 80 percent of new businesses fail.  Not a good prospect for the aspiring entrepreneur.

However, being a successful entrepreneur has great rewards --- ask Bill Gates of Microsoft or Yahoo founders David Filo and Jerry Yang. They are all Billionaires providing jobs, products and services to millions of people worldwide.  In short, it is not easy to be an entrepreneur, but the rewards are great if you become successful.

Now I pose to you the question: Do you have the right attitude and capability to startup your own business? Have you been asking yourself that big question--- To be or not to be an entrepreneur?

Then let's find out if you've got what it takes to be a successful entrepreneur.

Note: There is a debate about whether people are born with these entrepreneur characteristics and traits or are they learned through training and practice? Do these characteristics come from "nature" or "nurturing?"

First, let's define what an entrepreneur is and then we'll discuss the common characteristics and traits that most successful entrepreneurs possess. A quick look in the dictionary tells us: "An entrepreneur is a person who organizes, operates, and assumes the risk for a business venture."

Not a bad definition, however not all entrepreneurs actually do all three parts all the time. There are some entrepreneurs who just start up businesses and then sell them right away. Thus, they don't operate their small business for a very long time. Once they sell it for a tidy little profit, they move on to the next project.

So, what is the essence of an entrepreneur? I believe the definition of an entrepreneur in it's most basic form is: someone who sees an opportunity and takes advantage of it.

Traditionally, most successful entrepreneurs were thought to possess the following four characteristics:

1. Risk Taking- entrepreneurs are risk takers. They are able to calculate the risks of starting up a new business and weighing them against the benefits that may be produced for themselves as well as society. With their time, money, and reputation at stake they leave little to chance or luck. Yes, entrepreneurs take risks, but they are usually calculated risks.

2. Decisiveness- entrepreneurs must be able to make decisions on a strategic level. They are able to see where they are now, where they want to be in the future and decide on how to reach their goals. It's the ability to see the forest through the trees, and decide how to navigate through it.

3. Action takers- After conceiving an idea, calculating the risks versus the benefits, and making strategic decisions, the entrepreneur takes the initiative to make those decisions a reality. They do not allow the bigness of the endeavor to grip them with fear. Anything they can't do themselves they find others who can.

4. Innovative- Entrepreneurs see a need and are able to fulfill the demand. Whether it is a new technology or a new way of solving an old problem, entrepreneurs have been considered the people who were on the cutting edge of many industries.

These four entrepreneur characteristics and traits are still very important today. However, not every entrepreneur can invent the next great contraption and with the technology available to us today and the way it continues to make our world a smaller place, it is becoming harder and harder to even have an original idea.

So, there must be other entrepreneur characteristics and traits that contribute to an entrepreneur's success. Here are some that I think are important.

Passion- That's right, LOVE! Most successful entrepreneurs love and enjoy their work. If you are doing something you love, then it won't feel like work.

Hard working- Don't waste your time or that of other people who are willing and able to help you if you are not willing to do some good old fashioned hard WORK! Many entrepreneurs got started in business when they were young as paper boys, cigarette vendors, janitors, messengers, car wash boys etc. A strong work ethic will be the engine that powers your business' success.

Competitiveness- Most successful entrepreneurs don't like to lose and when they do fail, they aren't afraid to get back out there and TRY AGAIN. They are willing to test their abilities against those of others and even thrive on the competition.

Perseverance- The ability to keep your goals in sight and not to give up as you run into the myriad of problems and obstacles that are sure to arise as you startup your new business.

Adaptability- Entrepreneurs have the ability to find creative solutions for a variety of situations and problems. This ability to step outside the box or think outside the box is not easy and may require some unorthodox approaches.

Organized- I personally believe this is one of the more important entrepreneur characteristics that can be mastered.

You will need to make the time and a place to work.

Present, past, and future records (seven years!) and files of: sales, taxes, employee records, balance sheets, business contacts, and contracts will be necessary. Phones, faxes, computers, a desk, chair, lamp and a window view if you must.

Next, MONEY. Entrepreneurs must manage their own personal finances as well as their company's. You may need to hire an accountant at some point, but that is no reason not to know your own bottom line and Do the Math!

And finally, TIME. Another four letter word. Entrepreneurs must make calls and appointments and keep to schedules. They know they must use their time wisely and efficiently. It's the one thing you can't get back. The ability to organize your time, money and effort is critical.

Discipline- Successful entrepreneurs have the mental fortitude and discipline to stick to their plans and schedules. Long hours, no vacations, and a lack of funds are just some of the obstacles and challenges new entrepreneurs must face.

Persuasive- Entrepreneurs must deal with many types of people when doing business. They have to talk to lawyers, accountants, bankers, employees, and customers. They must be able to get people interested in their business ideas and persuade them to help attain their goals.

Optimists- Entrepreneurs see obstacles and challenges as opportunities. Their outlook on life is positive. The glass is always half full.

Loners- Finally, being an entrepreneur can be a lonely job. You may be forced to work alone without any help until you get your business up and running.

Yes, you will talk and interact with many types of people, but at the end of the day, you alone will need to make the difficult decisions and have to live with the consequences.

Also, if you do become successful, you will need to maintain a certain amount of emotional distance between yourself and your customers and your employees if you are to remain objective and fair. You may have an employee who is not doing their job and it may become necessary to fire them.

Remember this... Business is war. And as they say in the military, "The more you sweat in peace time, the less you bleed in war." Practice, train, and drill these into your brain and you'll be on your way.