Entrepreneurial Characteristics

Personal Entrepreneurial Characteristics (PECs)

• Ten PECs lead to success in entrepreneurship.
• These characteristics are grouped into three clusters: Achievement, Planning, and Power.

Achievement Cluster

• The Achievement Cluster contains traits directly linked to an entrepreneur's desire to achieve success.
• Entrepreneurs in this cluster set goals and persistently find ways to reach them.
• An opportunity-seeker is someone who aims to be a successful entrepreneur and is always looking for business opportunities.
• High commitment is demonstrated by an entrepreneur's dedication to their work.
• Persistence involves entrepreneurs overcoming trials, sacrifices, and failures.
• "QUIT" and "SURRENDER" should not be in a successful entrepreneur's vocabulary.
• Risk-taking is inevitable in entrepreneurship due to uncertainty.
• An aggressive risk-taker isn't afraid to take any risks in business.
• A moderate risk-taker calculates risks before taking them.
• A conservative risk-taker isn't eager to take risks, preferring to manage a small business and clientele.
• Efficiency in entrepreneurship means producing more output with less input, indicating productivity.

Planning Cluster

• The Planning Cluster is a set of character traits that support those in the Achievement Cluster.
• Planning is inherent for entrepreneurs as both owners and managers.
• A goal-setter is an entrepreneur that sets clear, specific, and well-defined short- and long-term goals.
• Goals are long term, while objectives are short term.
• Goals and Objectives should be:
• Specific
• Measurable
• Achievable
• Realistic
• Time Bound
• Successful entrepreneurs make decisions using available information.
• Systematic planning and monitoring involves following a structured pattern in the planning process.
• Systematic means employing a rational and logical approach.
• Planning refers to setting goals and objectives.
• Monitoring involves evaluating activities and actions against the plan.
• Planning & monitoring are inseparable entrepreneurial activities.
• Planning is preventive, while monitoring is corrective.

Power Cluster

• The Power Cluster includes character traits related to interpersonal relationships in the community.
• Power refers to an entrepreneur's ability to maintain relationships in the business community and influence others.
• This cluster reflects the entrepreneur's image and relationships within the community.
• Persuasive and positive networkers can influence stakeholders, like customers and creditors.
• Self-confidence allows business owners to take risks, make decisions, and persist through challenges, it enhances leadership and fosters trust, driving business success.

Social and Ethical Responsibilities of the Entrepreneur

• Business ethics involves the study of moral obligations in business.
• Ethical behavior is influenced by:
• Situation
• Reward System
• Individual Differences
• Other Factors
• Entrepreneurs wanting ethical behavior will encourage their people to adapt healthy ethical behavior.
• Adaptation of code of ethics
• Indicates the entrepreneurship's adopted principles of appropriate behavior
• Institution of rewards and punishments concerning ethical behavior
• Adaptation of internal programs for resolving conflicts
• Creation of ethics review committees
• Provision of training in ethics for employees
• Top management support
• The code of ethics is a formal document indicating the entrepreneurship's adapted principles of appropriate behavior
• The code of ethics to be effective must include
• Specific unethical practices like gifts and warranty claims
• Support provided by the top management
• Rewards and punishments concerning ethical behavior
• Rewards for ethical act may be cash gifts or promotions
• Punishments for unethical act may be dismissal or suspension
• Internal Programs For Resolving Conflicts
• For example, a subordinate may think his superior is acting unethically regarding promotions
• Ethics Review Committee
• A committee to provide advice to the entrepreneur and his staff concerning sensitive ethical issues

Business Ethics

• Training in ethics should prepare them for ethical issues.
• Ethics training is appropriate for people in purchasing, waste disposal, personnel, research, sales, and manufacturing.
• For programs to succeed, they need support from management.
• Ethical Issues Entrepreneurs Face:
• Entrepreneurs face ethical questions daily from different relationships
• Company and customers
• Company, personnel, and employees
• Company and business associates
• Company, investors, and financial community.

Relations With Customers

• Customers are most exposed for abuse due to high transaction frequency.
• Sending unsolicited messages is an example
• Support Consumer Rights:
• The Right to Be Safe.
• Expect products and services to do no harm.
• Laws protect consumers (ex: FDA for drugs).
• The Right to Be Informed: Advertisements and labels inform consumers. Require manufacture & expiry dates on labels.
• The Right to Choose: Should choose products and services uninhibited. An example is a trader controlling the supply of a certain cigarette causing increased profits.
• The Right to Be Heard. Provide feedback, complaints, and concerns. Install complaint systems with contact info.

Relations With Personnel and Employees

• Ethical problems can occur in hiring, promotion, and compensation.
• Important Ethical Responsibilities:
• Workplace Safety
• Adequate measures should be provided to prevent workplace accidents
• Proper trained personnel
• Quality of Life Issues
• Help improve the balance between work and family
• Avoiding Discrimination
• Opportunities not influenced be age, sex, religion
• Preventing Sexual Harassment
• Avoiding unwelcome sexual advances
• Issue a specific policy statement prohibiting sexual harassment
• Develop a complaint procedure for employees to follow
• Create a work environment that encourages sexually harassed employees to report their experiences
• Establish a committee to investigate sexual harassment claims
• Take disciplinary actions against harassers

Relations With Business Associates

• Businesses interact with suppliers and agents.
• Ethical Issues:
• Bribery and favoritism
• Suppers badly needs a contract
• Actions and conduct should be ethical

Relations with Investors and The Financial Community

• Trust is maintained if business ethics are practiced.
• Ethical firms protect investors and encourage investment.
• Investment scams are unethical, so misrepresenation, embezzlement should be avoided