Entrepreneurial Traits Quiz

Introduction to Entrepreneurship

• Interest in entrepreneurship is significant both in the U.S. and globally.
• A 2019/2020 GEM study indicated that 17.4% of Americans are actively involved in starting a business or managing one less than three years old.

Defining Entrepreneurship

• Academic definition: Entrepreneurship is the pursuit of opportunities without regard to resources currently controlled.
• Alternative view: Entrepreneurship involves turning an idea into a business.
• Entrepreneurs assemble and integrate resources like money, people, the business model, and strategy to transform an idea into a viable business.

Corporate Entrepreneurship

• Conceptualization of entrepreneurship at the firm-level.
• Firms exist on a conceptual continuum from highly conservative to highly entrepreneurial.
• A firm's position on this continuum indicates its entrepreneurial intensity.

Entrepreneurial Firms

• Proactive
• Innovative
• Risk-taking

Conservative Firms

• Take a "wait and see" posture
• Less innovative
• Risk averse

Reasons to Become an Entrepreneur

• Three primary motivations include the desire to be one's own boss, to pursue personal ideas, and to achieve financial rewards.

Characteristics of Successful Entrepreneurs

• Passion for the business is the number one trait shared by successful entrepreneurs.
• Passion often stems from the belief that the business will positively influence people's lives.
• Product/Customer Focus: Successful entrepreneurs display a defining focus on products and customers.
• They are often craftspeople at heart.
• Tenacity Despite Failure: Successful entrepreneurs persevere through setbacks and failures, since failure rates are naturally high.
• Execution Intelligence: The ability to turn a solid business idea into a viable business is key.

Common Myths About Entrepreneurs

• Myth 1: Entrepreneurs Are Born, Not Made: Studies suggest entrepreneurship is a function of environment, life experiences, and personal choices, not genetics.

Common Traits of Successful Entrepreneurs

• A moderate risk taker
• Persuasive
• Promoter
• Resource assembler/leverager
• Creative
• Self-starter
• Tenacious
• Tolerant of ambiguity
• Visionary
• Optimistic disposition
• A networker
• Achievement motivated
• Alert to opportunities
• Self-confident
• Decisive
• Energetic
• A strong work ethic
• Lengthy attention span

Common Myths About Entrepreneurs

• Myth 2: Entrepreneurs Are Gamblers: Most entrepreneurs are moderate risk takers. The myth stems from the unstructured nature of entrepreneurial jobs and the drive to achieve challenging goals.
• Myth 3: Entrepreneurs Are Motivated Primarily by Money: Money is rarely the primary reason entrepreneurs start new firms and the pursuit of money can be distracting.
• Myth 4: Entrepreneurs Should Be Young and Energetic: Entrepreneurial activity is evenly spread across age ranges. Experience and maturity are more important.

Age Distribution of Business Owners

• 20-34: 24.7%
• 35-44: 22.9%
• 45-54: 26.6% 44-54: 25.8%
• Myth 5: Entrepreneurs Love the Spotlight: Most entrepreneurs do not attract public attention, unlike widely known figures such as Jeff Bezos.

Types of Start-Up Firms

• Salary-Substitute Firms: Provide owners a similar income level to what they could earn in a conventional job.
• Lifestyle Firms: Allow owners to pursue a particular lifestyle and earn a living.
• Entrepreneurial Firms: Bring new products and services to market by seizing opportunities, regardless of current resources.

Changing Demographics of Entrepreneurs

• Women Entrepreneurs: An increasing number of businesses are women-owned, with 4,399 female-founded startups in 2019, worldwide.
• Women's entrepreneurial activity is higher in developed economies.
• Women from less developed economies are "necessity-driven" entrepreneurs.
• Minority Entrepreneurs: There has been a rapid rise in minority entrepreneurs around the world.
• As of 2020, there were over 4 million minority-owned companies in the United States.
• The number of ethnic minority businesses in the United Kingdom is growing and contributing nearly $33 billion to its economy.
• Senior Entrepreneurs: Many people in the 60 and older age range have substantial business experience, financial resources, and excellent vigor and health.
• This makes them excellent candidates to start businesses in many industries.
• Millennial Entrepreneurs: A desire to pursue an entrepreneurial career is high among millennials.
• A 2016 Global Entrepreneur Survey found that 62% of millennials worldwide intended to start a business before 2026.
• Young entrepreneurs are more innovative, create more job opportunities, export more, and use social media.
• Colleges and universities are increasingly offering courses, diplomas, and degrees in entrepreneurship.
• Organizations like the Prince's Trust Enterprise Program and the Mohammed bin Rashid Awards encourage college students to consider entrepreneurship.

Economic Impact of Entrepreneurial Firms

• Innovation is creating something new, which is central to the entrepreneurial process.
• Small innovative firms are 16 times more productive than larger innovative firms in terms of patents per employee.
• Small businesses create a substantial number of net new jobs in the United States.
• Firms with 500 or fewer employees created two million of the roughly three million private sector jobs in 2014.

Entrepreneurial Firms' Impact on Society

• Innovations from entrepreneurial firms have a dramatic impact on society.
• Many entrepreneurial firms have built their entire business models around producing products that help larger firms become more efficient.

The Entrepreneurial Process

• Step 1: Deciding to become an entrepreneur.
• Step 2: Developing successful business ideas.
• Step 3: Moving from an idea to an entrepreneurial firm.
• Step 4: Managing and growing the entrepreneurial firm.

Test your knowledge of entrepreneurial traits. This quiz covers characteristics like passion, execution intelligence, resilience, and resourcefulness. See if you have what it takes to succeed in the world of entrepreneurship.