Becoming an entrepreneur does not come easy to many, but having the right skills and qualities makes it entirely possible to hone oneself to become a successful business owner. The key is knowing the attributes of a winning entrepreneur and striving to develop these characteristics.
Understanding Entrepreneurial Success
To find out what characteristics aspiring entrepreneurs need to develop, it is important to look into what makes a business successful. One might think that it is solely composed of economic factors such as profits. Entrepreneurs and others within the startup know that economic indicators are reliable data that shows whether the organization is thriving or not.
However, external stakeholders such as customers, competitors, financial institutions, and suppliers view entrepreneurial success as more than economic attainments.
A study by Wiktor Razmus and Mariola Laguna (2018) published in the Frontiers of Psychology journal revealed that external stakeholders consider many things as indicators of entrepreneurial success. This group of people sees entrepreneurs’ satisfaction, fulfillment, passion, and work-life balance as measures of the startup’s success.
They also believe that successful entrepreneurs build companies that are charitable, socially involved, environment-friendly, trustworthy, experienced, and credible. They should also have employees who recommend the company to others, identify with the company, and are satisfied.
Lastly, customers and the local community should be satisfied with the company’s offerings enough to recommend them and regard the startup positively.
These indicators offer insights on what can help companies become successful, which in turn translates to the entrepreneur’s triumph. Given these, there are ten qualities and skills that aspiring business owners should have to see such success.
Essential Characteristics of a Successful Startup Entrepreneur
1 – Financial Acumen
It is important to start with something that is generally regarded as indicator of success: finances. Entrepreneurs should be able to give level-headed and well-considered finance-related assessments and decisions.
They should be able to evaluate how a financial decision will affect different aspects of the business, and execute decisions in a manner that can minimize negative impacts.
This is essential because while external stakeholders may not prioritize financial aspects to see success in an organization, the business involves finances every step of the way, from planning to operations.
2 – Passion
After financial acumen, another important quality that any aspirant should have is passion. Launching a startup can be a long-term commitment, so they should have enough enthusiasm and an appetite for the business world.
Even the process of planning a business can be a grueling one, from coming up with a unique idea and finding partners to writing a comprehensive business plan and looking for capital to bring the plan to life. Passion is a requirement to make sure that they stay committed to the business even during rough and trying times.
3 – Creativity
Anyone can come up with an idea, but this does not mean that it can be turned into a successful business. Aspirants will be faced with the challenge of conceiving a unique and sellable idea that they can develop into a product or a service that their target market will love. Doing so requires creativity.
On a related note, having an extraordinary idea is not enough. Entrepreneurs should be able to package it in a way that can be feasible to execute and viable to last. This is where curiosity comes in. They should have a penchant for research, while also being willing to explore and experiment.
5 – Risk-Taking
Everyone knows that launching a business is a risk. Aspirants are staking their time, effort, money, and expertise into something that is yet to exist materially. It is up to them to bring their ideas to life, which means that they need to take the risk and make the investment.
The thing is, this capital cannot be earned back should the business fail. So, while leaping into the business world is a risk, entrepreneurs continue to run a risk even after the startup launches.
6 – Planning and Decision-Making
Establishing a startup is a long process involving planning and decision-making. Aspiring individuals should develop these skills, especially as they are needed in every stage of the business.
They are also essential even after the startup has been successfully launched. Periodic plans, such as weekly, monthly, quarterly, and annual strategies need to be made throughout the existence of the company. Moreover, they are expected to make difficult decisions that would have an impact on internal and external stakeholders.
7 – Adaptability and Improvisation
Every business face difficulties at some point in its existence, and it is up to the leaders to address them. Many of these challenges would be unexpected, especially as there are lots of external factors that can modify the course of the organization.
Being able to adapt and improvise as they see fit are great characteristics of entrepreneurs. With these skills, they can quickly create short-term plans to tackle the situation, which they can later correct or transform into long-term ones.
8 – Communication and Persuasion
Communication is key when it comes to entrepreneurial success. To effectively launch an organization, they should be able to convince other people that their idea is feasible. Then, they need to use their interpersonal skills to find funders and create a network of people and companies.
9 – Persistence and Resilience
Because running a business is risky and difficulties are bound to come up at some point, entrepreneurs should be able to withstand such blows. They are expected to bounce back and make moves to course correct. Plus, this experience should make them stronger.
10 – Relationship with Stakeholders
Lastly, entrepreneurs should be able to establish a relationship with stakeholders. As a leader, they are expected to form professional bonds with internal stakeholders such as their employees and investors. They should also create a bond with customers, communities, and other external stakeholders.
Having the right skills and qualities can help an individual reach entrepreneurial success. Knowing these essential characteristics can help aspirants to become the best person they can be to achieve their dreams.
- Laguna, M. & Razmuz, W. (2018). Dimensions of entrepreneurial success: A multilevel study on stakeholders of micro-enterprises. Frontiers in psychology, 9(791). https://doi.org/10.3389/fpsyg.2018.00791