Entrepreneurial Challenge & New Venture Creation

Entrepreneurial Challenge & New Venture Creation

Part 1

Introduction

The views in the past on the entrepreneur's characteristics were formed upon a general agreement with regard to its economic importance society. The term entrepreneurship has received solid attention from economists, scientists and policy making body. Though entrepreneurship has several aspects, these aspects can be discovered in the literature and theories when trying to explore the views of the classical researchers to entrepreneurship aspects and also discussion upon the relevant formal and informal attributes that are mandatory for an individual to succeed as an entrepreneur in the real world.

The intended goal of stimulating entrepreneurship in people is to figure whether what type of formal and informal attributes needs to be existent in a person to gauge whether he would likely to succeed after starting a businesses venture.

Accomplished entrepreneurs are not restricted to one personality profile but rather arrive in varied ages, differing incomes, any gender, and particular race. They might even have different educational background and experience. However according to our classical researchers majority of the entrepreneurs who succeed in life tend to have similar personal attributes. These attributes may consist of innovation, creativity, determination, versatile, initiators and leadership traits.

Discussion Theoretical Review on an Entrepreneur's traits and attributes

The opportunity to become independent and being you own boss along with making wealth and has motivated many young or middle aged individuals to try to become an entrepreneur. Evidence shows that this has been majorly reflected the research on the emergence of small and medium enterprises (SME) and more significantly, the direct and indirect attributes that are linked with the entrepreneurs who have successfully been able to make their company grow and prosper led. The overall study aspects discussed in the literature are likely to revolve around' leadership skills of an entrepreneur, their orientation process, the level of management skills, personality indicators or traits and their circle or the network they belong to. (McClelland 1961) Emphasized that attributes which contributes the most towards becoming a successful entrepreneur is the need for achievement.

Where on the other hand (Begley and Boyd 1987) discovered that entrepreneurs or initiators may score relatively higher than managers of a small business who are non-initiators in need for achievement, taking risk, and have a low tolerance regarding ambiguity. Another researcher (Brockhaus 1982) analysed a large number of characteristics related to psychology and concluded that the main indicators of entrepreneurship attributes are linked to the high achievement needs, high centre of control and a high risk taking.

While on the other hand, Brockhaus and Horwitz's (1986) theories presented that entrepreneurs who inherit high centre of control strive for high achievements as well. It has also been suggested that the essential factor in differentiation between entrepreneurs from a manager is risk taking factor (Mill 1984). It could also be established that entrepreneurs may execute higher tolerance to risk especially in departments or areas where they have full control or even realization of the potential of ...