What it takes to be a Successful Enterpreneur Essay

What it takes to be a Successful Enterpreneur - Essay Example According to authors Stevenson and Amabile, the origin of the term entrepreneur, literarily defined as â€Å"’undertaker’—has been around for over two centuries, having been introduced in the early eighteenth century by the Parisian banker Richard Cantillon† (Stevenson and Amabile par. 1). In this regard, the essay aims to proffer crucial information that would describe entrepreneurial behavior and what it takes to be a successful entrepreneur. The discourse would be presented through an initial discussion of diverse definitions of the term entrepreneurship from secondary sources, prior to delving into one’s personal contention and point of view. In addition, the common traits or characteristics of successful entrepreneurs would likewise be determined and expounded. Finally, the remarkable experiences of some of the most successful entrepreneurs would be perused. A concluding portion would highlight the relevant points discussed through the paper. D efinition of Entrepreneur According to Endres and Woods, an entrepreneurial behavior exemplifies manifestation of â€Å"the motives and acts enabling entrepreneurs to reach decisions in their roles as creators of profitable opportunities and as exploiters of those opportunities† (Endres and Woods 2-3). New Combinations, a website devoted to social studies of entrepreneurship has complied definitions of the term from The Handbook of Economic Sociology by Smelser and Swedberg, where Howard E. Aldrich has been cited to provide an effective and concise summary of various definitions of entrepreneurship, to wit: (1) the setting up of high-growth and high-capitalisation firms (as opposed to low-growth and low-capitalisation ‘lifestyle’ businesses); (2) innovation and innovativeness leading to new products and new markets (the Schumpeterian tradition); (3) opportunity recognition (the Kirznerian tradition); and (4) the creation of new organisations (New Combinations par . 1). From among these definitions, one observed that for an activity to be categorized as entrepreneurial, the endeavor must be innovative, leading to a discovery of something new (products, services, markets or organizations), and entails the use of vast resources to achieve high returns. Characteristics of Successful Entrepreneurs In a study conducted by Acharyaa, Rajanb, and Schoarc, they identified that the characteristics of successful entrepreneurs are actually categorized according to: (1) psychological traits (achievement motivation, locus of control, meta-cognitive activity, need for dominance, passion for work, and self efficacy); and (2) cognitive reflection (IQ), risk aversion and time preference (Acharyaa, Rajanb and Schoarc). These authors’ findings indicate that successful entrepreneurs exhibit achievement-motivated behaviors where achievable goals are clearly set and strategies effectively designed to attain them. They are manifest internal locus of controls, described as â€Å"they personally are in control of their destiny and that luck and fate have only a modest influence on the outcome of events. For internals, personal destiny comes from within and therefore they tend to be self-reliant and independent† (Acharyaa, Rajanb and Schoarc 5). In addition, successful entrepreneurs were deemed to be good meta-cognitive skills learners, defined as â€Å"taking conscious control of learning, planning and selecting strategies, monitoring the progress of learning, correcting errors, analyzing the effectiveness of learning strategies and changing learning behaviors and strategies when necessary† (Ridley et al. 1992; cited in Acharyaa, Rajanb a