Entrepreneurship Introduction to New Venture Creation AUC CSCE 491 - PowerPoint PPT Presentation

“Entrepreneurship” Introduction to New Venture Creation AUC CSCE 491 Dr. Nagwa Ibrahim

Week (1) March 8, 2009 Entrepreneurial Characteristics Dr. Nagwa Ibrahim

The Entrepreneurial Personality(1) � No standard definition of “the entrepreneur” but: � it is generally held that they display • certain similar characteristics • similar patterns of behaviour. � no agreement on what these are • Hornaday - 40 + • Gibb - 12 • Timmons - 19 Dr. Nagwa Ibrahim

The Entrepreneurial Personality(2) � According to Timmons, these attributes – vary according to the situation – can be learned/acquired � But are the attributes – culturally determined? – possessed or acquired? Dr. Nagwa Ibrahim

Timmons 19 definitions of “the entrepreneur” 1. Commitment 2. Drive to achieve and grow 3. Orientation to goals 4. Taking initiative and personal responsibility 5. Persistence in problem-solving 6. Sense of humor 7. Seeking and using feedback 8. Internal locus of control 9. Tolerance of ambiguity 10. Calculated risk-taking 11. Low need for status and power 12. Integrity and reliability 13. Decisiveness, urgency and patience 14. Dealing with failure 15. Team builder 16. High energy, health and emotional stability 17. Creativity and innovativeness 18. High intelligence and conceptual ability 19. Vision and capacity to inspire Dr. Nagwa Ibrahim

The Individual Characteristics of Entrepreneurs � The types of entrepreneur result from how the various personality traits combine. � The key personality traits are:- � Risk-taking ability � Need for achievement � Desire for Autonomy (self sufficient) � Creativity and Opportunism � intuition Dr. Nagwa Ibrahim

Risk-Taking Ability • Economic theory suggests entrepreneurs are risk-takers • Generally agreed that entrepreneurs – take calculated risks – are confident, therefore distort their perception of risk – can cope with ambiguity/uncertainty Dr. Nagwa Ibrahim

Need for Achievement (nAch ) • McClelland suggests that entrepreneurs are motivated by the need for achievement • Research findings inconclusive • Generally held that nAch is not the only explanation for entrepreneurial motivation • However, research has tended to measure people by job-title rather than behaviour Dr. Nagwa Ibrahim

Desire for Autonomy � Entrepreneurs: � want to be in control � value individualism & freedom � dislike rules, procedures, norms � have difficulty functioning in constraining environments. � The desire to “take ownership” of own destiny important but difficult to explain. Dr. Nagwa Ibrahim

Creativity & Opportunism � Entrepreneurs believed to be: � creative � opportunistic � Very complex � relationship between the two unclear � research inconclusive & conflicting � Generally held that innovativeness is linked to nAch Dr. Nagwa Ibrahim

Intuition � Cartland suggests entrepreneurs are: � intuitive rather than rational thinkers. � prefer synthesis to analysis & imaginative thinking to logical reasoning Dr. Nagwa Ibrahim