Enterpreneurship Traits Puzzle: How Enterpreneur Thinks

Published: 23rd February 2010
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It has been a long journey to find out why some distinct people want risks in starting new business and giving up security. The answer of course very interesting.





Is it really true that some individual characteristics have the necessary potentials in thriving more in their specific business than some other people? So many researchers on that topic has been made busy, conducting researches in the ever-growing enterpreneurship studies. How is it like or how do you feel if you can predict and test the people who is most likely succeed in launching the next business empire based solely on a very straight personality examination. It would create a whole new side of business.





Researchers were satisfied with the idea that if certain individual was first-born, very straight-forward, and his family owned a good business, among other characteristics, that person was a very potential in starting his own business successfully. But that was something researchers think in the late 1970s and early 1980s. Tests were offered in so many books to conclude whether you are an entrepreneur spirit.





As the story went on, and studies were continuously conducted, thinkers and researchers have been puzzled with the idea that small-venture success can be predicted by examining the traits of the founders. Thinkers were ever puzzled by the reality that entrepreneurs are so diverse group of individuals. They met difficulties in concluding on what to be innovative and entrepreneurial means. Psychologists studies many times measure personality that could not be linked to activity of entrepreneurship.





Maybe the real problem was that many examinations often contradict with each other. Some researchers offer the idea of positive correlation between distinct traits and success of entrepreneurial activities while some others proved no correlations. Nowadays, many researchers have left the whole area.





A german researcher, by the name of Andreas Rauch from the Giessen University, recently proved the idea that distinct types of traits are more likely in entrepreneurial success than other personality traits. He create his prove based on a research review on the subject conducted previously - that more than 150 examinations which examine the personality traits of business owners, "and either comparing business owners with other populations or dealing with indices of performance." He show his findings at the Babson Kauffman Entrepreneurship Research Conference in Wellesley, MA,in June, 2003.





"I coded 39 different personality characteristics," he says. "The personality characteristics were further coded depending on whether they were specifically related to entrepreneurship (e.g. need for achievement, risk-taking propensity, tolerance for ambiguity) or not related to entrepreneurship (e.g. extraversion, rule conformity)." These traits were examined against many factors such as business performance and personal satisfaction of the entrepreneurs.





And his conclusion was that "personality characteristics do have a significant and positive effect on entrepreneurship and business success."





He successfully makes a crucial distinction in his findings, about the role of traits in starting new venture and end up succeeding in that venture. The role of traits is the most significant in determining the people behind starting a venture. He claims that "business owners differ from other people in personality characteristics, such as need for achievement, internal locus of control, and risk-taking propensity." Meaning, entrepreneurs-to-be tend to have strong egos.





It has been said "relationships between personality characteristics and business success were less precise," but those were very crucial, however. Those were the same traits that motivated entrepreneurs to go into the act of creating business beyond the risks-desire to achieve, create something new, the need to be in control, and aggressiveness.





So what is the conclusion? What have we got? Most important, we have confirmation about the very interesting area, about what most entrepreneurs have sensed all along: they have distinct and important psychological personality aspects different from those people who must live in the security of a job and cannot go on their own feet. But we still lacks the deep insights that should complete us with personality traits or psychological characteristics that empower some entrepreneurs to move on to invent the "color" of economy, the fast-expanding ventures that become the Toyota or the Facebook of the future. But hopefully Rauch's research will trigger a series of studies that more deeply examine the personality traits characteristics of the most successful venture makers and starters, the entrepreneurs.





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Anna Connor is a personal development enthusiast with many works published. Some special collection of books for personal development which provide not only entertainment but also activity can be found at http://elviratigress.yolasite.com.

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