THE TOP CHARACTERISTICS, SKILLS AND ABILITIES OF ENTREPRENEURS

By Jamieson Lee Hill, LMB Content Writing Manager

Introductory Task: Before You Read

In this second section, you will read about the characteristics needed to be an entrepreneur.  Here are two tasks before you begin reading:

1)Before you start reading, write down 5 qualities and characteristics that you think you have. 

2)Also, write down 5 other characteristics which you think are important to be an entrepreneur.

The Characteristics of Successful Entrepreneurs

There is no set formula for success and each person has their own attributes, but research has shown that entrepreneurs have certain similar attributes. Entrepreneurs can fall into some of the following categories:

 Examples of Entrepreneurs

• Online business owners - e.g. online businesses, bloggers, e-commerce, or 
• Home-based business owners - running a business online from home which has become more common during the pandemic
• Investors - they create their ideas and then pitch them to the market and they also may invest money in other startups and ventures. 
• Small business owners - this is the backbone of any economy and provides a source of employment for people in many countries as well as providing goods and services. 

1.Creativity

It goes without saying that creativity is a core characteristic. Creative ideas leads to innovation and at the heart of any successful business is innovation. Coming with solutions for problems with products and processes is what will keep your business going strong. Creatives consider the global overview of things and are able to see new ways of doing things. It is about noticing the links between things and realising innovative solutions and pushing the boundaries. Sometimes called lateral thinking, thinking out of the box or blue sky thinking entrepreneurship is about thinking of better ways to do things to improve productivity and optimise the company. 

The concept of having ‘no time’ where you reflect on the existing processes in your business is something that many of history’s great thinkers have subscribed to e.g. Einstein, Steve Jobs, Mark Zuckerberg etc. Having a few hours each week where you effectively just reflect and think can help you find new inspiration for the way you run your business. That ability to go with the flow and get in the zone of creativity. In today’s competitive world, the entrepreneurs who are able to create new and better ways of doing things are the ones who reign supreme. 

TASK

How Creative are you and what kind of new ideas do you have? Do you allocate a few hours each week to think and reflect i.e. to schedule no time?

2.Work Ethics

Being reliable and following basic work ethics is core to the entrepreneur. The work ethic is all important so that you apply yourself to working consistently each day. Without discipline a business is doomed to fail. Being reliable to clients and keeping to deadlines is essential to build trust and long term relationships with your customer base. Self-discipline is about controlling your emotions and mind to get the work done and meet your deadlines and stay on task. Wasting time on social media chatting to friends and family is one of the bug bears of the entrepreneur. You must be able to structure your working day and set yourself a schedule using tech tools such as Google Calendar. 

Success is the product of hard work and it cannot be reached overnight. Behind every successful entrepreneur is hard work over a long period of time. Drawing on your passion and drive will keep you focused.  Entrepreneurs are often the first to arrive at work and the last to leave. They will even work weekends, evenings (or even all night) and when on holiday to complete tasks. They tend to be thinking of work even on vacation. However, this can obviously be a detrimental thing and perhaps the ability to switch off from work is better for your mindset and your family. 

To run a small business, you need to have the focus to complete the important tasks each day. At the same time, delegating is important too. A business owner needs to master themselves and self-control and take responsibility for all aspects of their venture. But also know when to delegate tasks to others. Successful entrepreneurs form positive habits because routine actions are at the route of success. It is all important to remove distractions and develop/follow strategies and plans to realise your targets. 

The entrepreneur is a strange beast, a natural leader who inspires others to action. It is about being fit and strong to be able to deal with the workload and to work for long periods of time to get things done. The entrepreneur needs to focus on speed and not perfection because if you take too much time on tasks you are not going to become wealthy and successful. That doesn't mean you cut corners but you are time efficient and work within set parameters. 

Key takeaway: Speed not perfection!

3.Risk Taker

Pushing the limits and taking a chance is what embodies the spirit of entrepreneurialism. Greatness and unique discoveries were not invented by people staying within their comfort zones! Entrepreneurs take risks and invest their money into ventures but they always have a plan B in case things go pear shaped. In that sense, it is not reckless risk taking. 

Risk Taking allows their business to grow and develop. At the heart of victory is risk taking; you have to grab life by ‘the you know what’ to reap the rewards of opportunities that come your way. Nevertheless, risk taking is not done without forethought; it is important to evaluate all of your risk taking. Knowing the consequences of your actions and planning in advance are key attributes of the entrepreneur; all the time staying focused on the target you have in your head for success. If you do fail, you must take it as part of the learning curve because behind most successful entrepreneurs are failures as well as successes. 

4.Persistent and Motivated

Motivation and passion are what drive the entrepreneur to victory; their love and passion for the cause is what keeps them going when others may quit in the face of adversity. Hard work and motivation go hand in hand with passion; let enthusiasm light the fire of your inner goals to succeed. Each day, step by step, develop a positive mindset to all that you do. Positivity is infectious and it will rub off on others and inspire customers and colleagues alike. 

Part of the process of motivation is to set small achievable goals which work towards larger more expansive goals. Entrepreneurs adore their work and put in long hours to reach their targets. As Elon Musk says, the passion to succeed must go way beyond money. It is love that drives the entrepreneurial spirit, not just focusing on how much wealth you can acquire. 

Passion and a strong work ethic go hand in hand; those with a work ethic are focused on running their company properly and professionally and the passion is the power that drives the engine of their success. Entrepreneurs thrive on their victories but then move onto their next project because the passion endures and drives them on to more victories. 

Perseverance and persistence are natural byproducts of passion because it inspires the entrepreneur to hit their targets. This helps the entrepreneur develop a steely mentality where they never give up despite the setbacks and disappointments.

5. Ability to Plan and Strategise

Success is not a pot luck in most cases. It is the result of careful planning and strategies to make the business thrive. Therefore, the entrepreneur needs to have the foresight to formulate strategies for success in every aspect of the business. 

6. Knowledge of your Sector and Yourself

Knowing the industry you are working in is a no brainer because you are unlikely to be able to solve problems that SMES endure without that knowledge. This means staying updated with the latest trends and news. So read, consume and learn! You also need to ‘Know Thyself’ as was written in temple of Socrates in Ancient Greece. Understanding your strengths and weaknesses will help you to operate at your most efficient. 

7.Global Foresight and Overview

Effective entrepreneurs need to understand the global marketplace as well the domestic markets in their own country. Using methods such as PESTLE analysis and SWOT analysis an entrepreneur can plan and prepare when trading in the global economy. Different countries can bring up different opportunities and varied problems. 

PESTLE is a Business Management theory which analyses and predicts factors within a country you are trading in:

• Political factors
• Economic factors
• Social factors
• Technological factors
• Legal factors
• Environmental factors

SWOT analysis is about looking at the global and domestic markets for:

• Strengths and weaknesses
• Opportunities and threats

An entrepreneur needs to grasp the fact that different countries mean cultural differences which require different ways of doing business. 

8. Open-mindedness

Entrepreneurs should know which events are useful to them. Failures should be faced with a positive attitude, they are experienced and should be used to be better. It also helps in knowing and learning from competitors. Learning with an open mind lets you look at your faults humbly.

9. Empathy and Emotional Intelligence (EQ - Emotional Quotient)

Empathy is understanding what’s going on in people’s minds. The strengths and weaknesses of every employee should be known by the entrepreneur because they are the asset of the business. It is also essential to look after their well-being and keep them motivated.

10. It is all about the Customer

Yes, of course it is your business and your hard work, sweat and tears. But without the customers the business does not exist. This means you need to understand and research the target audiences, engage their focus and be on point when catering for their needs. Provide products and services which there is an existing demand for and not products and services that you would enjoy selling. Customer Centric business is the key to success. Be agile in your marketing and react to changes in customer preferences to stay ahead of the competition. 

11. Money Management 

The crux of a business is money and wealth creation. Therefore, you need to be able to translate your plans into actions which generate income. An entrepreneur should be consistently focused on ways of making revenues and profits. Furthermore, you need to be practical and well organised with the business plan, budget and planning ahead to anticipate costs. A successful entrepreneur can motivate his/her team and himself/herself to optimise everyone’s efforts to make the venture successful. It is important to know when to invest money and when you should hold back funds to meet expected risks and costs. 

12. Having a Vision

A successful entrepreneur will have a vision and consider where the business is going and what they plan to achieve. It is important to look at the long-term and short-term picture. With a careful and well-thought out strategy and measurable goals you can and will achieve your targets. It is about setting yourself daily, weekly, monthly and yearly targets for your success. Also be prepared to fail sometimes and not meet all your targets and other times it will go brilliantly. The most important thing is not to make excuses, instead the reason you failed to reach your vision for some aspect of your company. 

13. Flexible and Adaptable

It is important to be flexible and adapt to changes and also know your limitations. You may need to hire others to take on tasks you’re not competent with. Responding to change is essential in today’s competitive marketplace. Flexibility is needed to solve unexpected problems and also to be responsive to the needs of others’ opinions and ideas. By listening to your customers and staff you need to be adaptable and versatile to keep your business healthy and afloat. 

Flexibility also applies to product and services development to adapt to ever changing marketplace. People who are fixed in their ways will find the entrepreneurial journey difficult. Being adaptable is vital for a successful venture. That same flexibility applies to time scheduling as you won’t always be able to work 9 to 5. It is about choosing the optimum times to reach success. Versatility is part of creativity in the way you plan the strategies for your business. An openness to embracing new trends in the market and pushing yourself to adapt to those changes. 

14. Resilient and Determined

Failure is no stranger to the entrepreneur, but it is about learning from your failures and doing things differently the next time. This means the ability to bounce back from defeat and show resilience. Determination and the drive to bounce back from setbacks is all important. Coupled with a self-belief that you will achieve and see failure as an opportunity to switch tracks to something successful. 

It is resilience and tenacity that keeps the entrepreneur moving forward with motivation and inspiration. Studying entrepreneurs from the past who have overcome adversity is a very positive approach. 

15. Decisive Part one - Action Oriented

Entrepreneurs have to be competent at taking action; the bucks stop with you. All the decisions you make will have an effect on your business growth and therefore it is important to make the right decisions. Victory involves taking a decision when there is an element of risk and pushing the boundaries to achieve. Being decisive is part of the makeup of successful entrepreneurs who go beyond the limits of ordinary people afraid to take risks. Taking action at the right time and having a priority order for tasks is also vital. 

16. Integrity and Honesty

Having a reputation for integrity is important to build trust with your customers, staff and other stakeholders. It is important to be honest in all your business dealings. By building a reputation for being trustworthy and a person of integrity will lead to positive, long term relationships which will make the business thrive. Successful business relies on trust and it is a key factor for customers because trust leads to sales. Hiring staff and holding onto staff is also a major factor that is influenced by the integrity that you are perceived to have. Treat staff and customers well and you will see your business grow and grow. 

17. Team Player

Entrepreneurs are fantastic team players that work well with others. Being a decent team player and listening to the ideas of others will serve the business well. Innovation flows from all levels in a business which is why you should strive to get on with everyone and be open to new ideas. 

18. Strong Interpersonal and Communication skills

Effective communication is important for customer service and with staff to motivate them. Communicating well with staff will motivate them to work hard and achieve results as they feel valued. This will help the business revenue grow. Use your communication skills to train and develop any staff you hire. Interpersonal skills or people skills are crucial for a business owner. People need to feel valued and trusted to get the best from them. Listening is a key part of communication and interpersonal skills. Speak clearly and openly with staff to show your honesty and caring side. Hand in hand with communication skills goes effective critical thinking to use rational planning to workout the obstacles that the business will face in the short and long term. 

19. Confident

Entrepreneurs don’t doubt their ability to succeed or be worthy winners, but at the same time they must accept their shortcomings. It is confidence which drives an entrepreneur to take a risk and set up new businesses. It is self-belief and confidence that motivates them to reach their goals and full potential. They want to invest their money because they are confident of their business plan and idea. 

Visualisation can be an effective way to develop your confidence. Imagine yourself achieving your goals each day and this will gradually help you improve and grow your self-confidence and self-esteem. 

The self-confidence of the entrepreneur is infectious and it will rub off on others including staff and customers. This usually equates to having a motivated team and increased sales because customers believe in your authority and expertise. 

20.Self-Starters

The entrepreneur is the one with the proactive attitude to go ahead and set up a business that fills a gap in the market. They don’t wait around for the crowd or listen to the naysayers. They research their market, set a business plan and go for it. This is the difference between an entrepreneur and a non-entrepreneur. They just do it and don’t spout hot air. 

21.Sense Of Direction

Whilst focusing on the short-term is important in terms of achieving your daily, weekly and monthly goals, an entrepreneur is looking for long-term success with a vision, mission and idea of where they want to be in 5 year’s time. Their sense of direction helps them hold steady against sudden changes and challenges. 

22.Product or Service Knowledge

Intricate knowledge of their product and services is essential for the entrepreneur. They know about their target market and the trends and when to release new products and services based on market patterns. An entrepreneur constantly updates their knowledge by  studying their target audiences and increasing their technical knowledge of what they offer. They also study and analyse the competition to get the edge by emulating what the competition does well and they tap into customer feedback to constantly improve their products and services. This is the essence of an agile marketing approach. 

23.Networking

Your Network is your net worth! Connecting with others helps you create opportunities and access new markets. It is important to network with integrity and honesty to build real and authentic relationships that last a long time. It is no good be very salesy and direct when you first connect with new people. Build trust and respect first because this is the key to long lasting relationships. It is also important to provide opportunities for people in your network and introduce them to people that will help them grow their business. In turn they should reciprocate and provide you with opportunities too. Build up favours is a brilliant way to expand your network and your leads and sales.

24.Persuasiveness

Being able to persuade others is vital for negotiation, motivating staff and enthusing customers. Entrepreneurs believe in their products and services and persuade others that they are offering the best service possible. It is possible to improve your powers of persuasion by developing your skills as a listener because listening makes others feel valued. Also you gain knowledge of other people and ways of doing business. Being emotionally sensitive is an important skill in persuasion. You can bond with people by showing a caring attitude with empathy.

Persuasion as a negotiator is essential to close deals, get customers to buy from you (without being too salesy) and to get your staff onboard with your plans. Every successful enterprise has a CEO or MD with strong powers of persuasion. The power of persuasion in leaders makes them valuable assets for any venture and gives them power to achieve their ambitions. A combination of persuasion, interpersonal skills, solid communication and financial management skills will give an entrepreneur  a massive advantage over their competitors.

 26.Positive Mindset

A positive mindset and optimism is the catalyst for creativity and innovation of products and processes. Also, a positive attitude helps an entrepreneur ride the waves of failure and adversity. The positive entrepreneur sees opportunities in difficult times such as recessions e.g. Amazon massively increased their income during the pandemic lockdowns with online deliveries meeting the high demand. 

27. Goal Focused

We have mentioned this before but let’s go into more detail. It is about having clear objectives and setting action points to achieve them. With a clear vision of the intended future the entrepreneur knows which resources to draw on to make it happen. Entrepreneurs use schedules and timelines to stay on target and set themselves notifications using digital tools such as Google Calendar. Measuring their progress with KPIs and using analytics for social media and other platforms is how an entrepreneur tracks the success of their campaigns. 

28.Lifelong Learner

You don’t start your entrepreneurial journey knowing everything. It is a question of constantly learning and acquiring new skills by a process of lifelong learning. Reading online, magazines, news sites, training courses and anything related to your sector. In the beginning you may have limited resources and finances and therefore you can make use of the wealth of free learning materials online. As an entrepreneur you need to master a number of fields relating to your business. The true master of business is always open to learning new things. 

29.Relaxed and Composed 

There is no point pretending life as an entrepreneur is easy; at times you will face stress and doubt. Having a relaxed and composed manner enables you to survive and develop coping mechanisms during pressure whether it be financial, technological or any other aspect. Going with the flow and spotting new opportunities is the master skill of the entrepreneur. As we saw before, it is about turning adversity into an opening for success. 

30.Decisive Part Two - Calculated action

Being indecisive is the enemy of progress. An entrepreneur needs to be able to make quick decisions at times to stay ahead of the game. Problem solving under pressure with decisive action can be crucial in the world of business, but an entrepreneur makes each decision with careful, calculated actions. 

31.Obsessed

Positive obsession with your brand, products and services are what is required to have a thriving venture. ‘Work hard like a maniac’ (Grant Stain, CEO Blam Websites) will help you to build your empire. Obsession with your business and your long-term vision and goals is the key to winning rather than wasting time watching movies, TV series and looking at social media. 

32.Competitive

Competition can be a positive and healthy thing. It is not about being a cut throat and uncaring capitalist. You can still be caring and competitive. Analyse what the competition is doing and emulate their best marketing and sales strategies. The entrepreneur takes on challenges in the spirit of competition and accepts losses as well as victories. Business is like a sport and the winning and losing are part of the game. 

33.Common Sense

Common sense is still needed in business to make pragmatic and practical decisions e.g. you shouldn’t spend £2000 on a new company laptop if funds are low. Instead buy a laptop for half the price and when you are in a better position and sales are flying, you can purchase the high spec machine and trade your other machine in. Common sense extends to every aspect of managing a business e.g. managing finances, staff, marketing, PR etc. 

34. Devotion

Your brand and business is your baby. You need to love and cherish your brand and that love will shine through to your customer base and staff. Internal marketing starts with the love of the brand by the staff at a company and that love then has a positive impact on customers through customer service. Love it, nurture it and shout it from the rooftops! Loving your brand is what it takes because if you don’t love it, who else will?

35. Problem Solver

Creativity and problem solving are bedmates. In times of pressure you will need to dig deep and realise creative solutions to issues. Sometimes revenues may be lower or costs higher and a problem solving solution could save you thousands of pounds, dollars etc. Generating new ideas and solutions is what the entrepreneur does best. Over the course of time your creative and critical thinking will develop and sharpen so that you become the best version of yourself! 

CONCLUSION

Every individual is different and you will possess some of the above skills and characteristics, but others you will need to develop. Remember to play to your strengths and where you lack, you can always consider hiring others who are adept in these areas. An entrepreneur must learn to delegate to those that can to achieve lasting success. It is not about doing everything yourself and many processes can be automated with technology!

SECTION TWO TASKS: REFLECTIVE, BUSINESS PLANNING AND GROUP TASKS

REFLECTIVE TASK ON THE CHARACTERISTICS, SKILLS AND ABILITIES OF ENTREPRENEURS

Having examined the 35 factors, which of them do you feel you have and which do you lack and why?

Which are the most important for the type of business which you have chosen or are thinking of choosing?

Write a list of those you have and those that you lack. This will be a useful reference on your entrepreneurial journey. 

8-STEP ACTION PLAN

Using your notes from reading the article, write an Action Plan of your steps you need to take to develop the entrepreneur abilities, skills and characteristics which you need.

Have look at the businesses on offer at LMB: 

https://www.lovemybusinesses.com/ and consider if any those businesses fit your abilities.

Then to develop characteristics, skills and abilities consider actions such as:

• Read an inspiring entrepreneur's book each month e.g. Tycoon by Peter Jones
• Practise Hal Elrod's Miracle Morning each day. Google it.
• Listen to motivational audios on Audible by entrepreneurs in your field of interest.
• Consider taking online or face-to-face courses to help develop your areas of weakness.

ACTION PLAN

1.

2.

3.

4.

5.

6.

7.

8.

GROUP DISCUSSION TASKS

In groups discuss which of the characteristics:

1. You think are the most important and why
2. Which of the characteristics you already have 
3. Which of the characteristics you need to develop
4. Which of the characteristics you feel are less important
5. Which of the characteristics do you recognise in famous modern day entrepreneurs. Consider the following people:

Elon Musk, Jeff Bezos, Richard Branson, Mark Zuckerberg. 

Notes to the teacher, lecturer or business trainer:

Set this up as group work followed by whole class plenary. Or better still buzz groups where you move two from each group each 202 minutes to stimulate and cross fertilise ideas. 

THAT IS THE END OF SECTION TWO!