Understanding Traits and Skills in Entrepreneurship

This report explores the difference between traits and skills in entrepreneurship and their role in establishing successful ventures. It discusses the fundamental traits and skills of entrepreneurs and examines the theories of entrepreneurship. The report also focuses on Simon Cowell, a successful entrepreneur, and his journey in the field of entrepreneurship.

Entrepreneurship
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Table of Contents
INTRODUCTION.......................................................................................................................................3
Understanding of the difference between traits and skills and their role in establishing a successful
entrepreneurial ventures..........................................................................................................................3
Fundamental traits and skills of entrepreneur..........................................................................................4
Entrepreneurship Theories.......................................................................................................................5
CONCLUSION...........................................................................................................................................6
REFERENCES............................................................................................................................................8
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INTRODUCTION
Entrepreneurship is defined as the procedure of designing or launching a new business
venture by using new or innovative ideas through which a plan can be developed. An
entrepreneur is a person who undertakes risk of initiating a new venture for the major purpose of
making profit and proving ease to people (Burns, 2016)
. Entrepreneurship is associated with risk and rewards, the entrepreneurs are having various traits
in their personality which makes them differentiated form others and provide them a reason to
grow. This report is prepared in order to understand various concepts of entrepreneurship on the
background of Simon Cowell. He is an English TV celebrity and a successful entrepreneur as
well.
Understanding of the difference between traits and skills and their role in establishing a
successful entrepreneurial ventures
Traits
Creativity: Entrepreneurs are having traits of creativeness through which they propound
varied ideas which are emerging and capable to attract people as well. This trait of entrepreneurs
provides them a reason to get success and enhance their career opportunities as well. For Simon
Cowell his creativity made him judge over British television due to which he was able to succeed
in his career.
Vision: Entrepreneurs always keeps long term vision due to which they have sense to
identify challenges in very prompt manner. This trait of entrepreneurs provides them more
options to deal with challenges that may create barriers in their succession. For Simon Cowell,
he already had long term vision to become successful by which he dealt with that entire barrier
which came into his life as hurdles in optimal manner (Mitra, 2019).
Risk taker: The major personality trait of an entrepreneur is that they are risk taker, as
entrepreneur is associated with some new and emerging concept which is having high degree of
risk. So a successful entrepreneur is laced with the power to bear risk in appropriate manner. In
earlier life Simon Cowell faced huge risk which later on converted into his success steps.
Skills
Communication: Communication is the primal skill which is held by an entrepreneur.
Communication is the major aspect by which idea can be explained by entrepreneur to their
stakeholder in order to get investments and understand their employees as well. With the help of
effective communication skills they can establish communication with their peers and related
parties through that they may get high assistance in their success.
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Ability to learn: Entrepreneurs are having skill to learn new things which can be used by
them to develop their business skills and creativity as well. For example Simon Cowell has
experienced various aspects though he leant so May new things which made him successful in
his career. Entrepreneurs are having opportunity that they learn from every up and down or
failure which gives them understanding and insight to gain knowledge (Murnieks and et. al.,
2016).
Leadership skills: Entrepreneurs are having leadership quality due to which they can
lead mass people and supervise their work in order to achieve decided objectives. Entrepreneurs
create an aura by which their subordinates support them without keeping any doubt. This skill of
entrepreneurs gives them power to acknowledge their efforts in such a manner that they inhale
success in lieu of those efforts.
Role in successful entrepreneurial venture
Successful entrepreneurial venture are results of hard work and dedication of
entrepreneurs. For attaining success entrepreneurs are facing prominent challenges and ways to
deal with the same so that resilience can be created to manage those barriers. Skills and traits of
entrepreneur’s plays significant role in developing successful entrepreneurial venture as these
skills and qualities lead entrepreneur to deal with all those challenges that may create barrier in
their path. With the help of creativity an entrepreneur can initiate their own distinct business by
their innovative idea. By keeping long term vision entrepreneurs can deal with challenges and
maintain clarity in gaol attainment (Adomako and et. al., 2018). Risk taking is one of the most
essential qualities of entrepreneurs which enable them to tackle complexities in appropriate
manner. On the other hand communication skills are assisting entrepreneur to establish effective
interaction with various stakeholders so as to simplify procedures and to learn new things as
well. So this can be said that skills and personality trait of entrepreneurs are playing vital role in
setting up successful entrepreneurial venture.
Fundamental traits and skills of entrepreneur
Entrepreneurs are one who have different personality type and ability to do something
different of their own in order to stand out from other people (Smith, Bell and Watts, 2014). In
context of Simon Cowell the fundamental traits which he has are describe below-
 Motivation- Simon Cowell is one of the hard working individual who has able to gain
success in very young age. The motivation factor has helped him in gaining success in
life as he has mindset to do something of his own which he has able to attain as he is self
motivated. Hence motivation play important role in the life of people which helps in
achieving the target objective and goals in life.
 Creativity- The person who is able to think out of box and develop idea which is new and
innovative then able to attract its potential customers and able to accomplish its set goals
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and objective in life. In context of business and entrepreneurs it is one of the crucial
factor which helps in improving their company’s or business workflow and productivity.
 Vision- It is one of the essential factor which helps in developing the long term planning
and strategies which helps in achieving the desire results. In context of Simon Cowell he
has vision to build his career in the field of music which he has able to attain.
 Risk Tolerance- In order to become successful in the business the entrepreneur need to
take risk in its business operation in order to get success. In context of Simon Cowell he
has resigned from his well settled job in order to focus on his life goals and able to
accomplish them.
 Confidence- Without confidence or belief on self one is not able to get success in life as it
act as support in the life of entrepreneurs. In context of Simon Cowell he is so confident
in his life regarding the steps with is he taking and able to attain his desire goals and
objectives.
 Decision making- Having the option to settle on choices rapidly is a significant trademark
for business visionaries since it tends to be the distinction among progress and
disappointment. Business visionaries not just need to have great dynamic aptitudes, yet in
addition must have the ability to settle on those choices rapidly to try not to pass up on
chances. This requires rapidly thinking about current realities and afterward choosing. In
context of Simon Cowell he has the capability to take decision on his own in his business
operations and activities.
In context of Simon Cowell he is one of the most successful face in music industry as he strong
and effective communication skills (Chell, 2013). He know how to establish the effective
communication with other people in order to develop their interest. Moreover one of the most
amazing skills of Simon is that he is able to understand people and on the bases of his
understanding he take future steps as he is able to connect with them in terms of emotions and
mindset.
Entrepreneurship Theories
There are various theories of entrepreneurship which helps the individuals in
understanding and learning the various factors which they may face in their professional journey.
Some theories are explained below-
Schumpeter’s theory of creative destruction- This theory was discover by Joseph Schumpeter in
year 1942 which describes the various steps and knowledge in the process of development of
innovation (Tülüce and Yurtkur, 2015). It is a long term process which helps in the
manufacturing process in order to enhance and increase the level of productivity in the business
operations. Moreover this theory focus on long standing arrangements and assumptions which
are consider in order to fully use all the resources and energy in order to develop the innovation.
It helps in reducing the level of competition in the marketplace as with innovative products and
strategies company or business can attract the large number of potential customers. Furthermore
this theory considers the economics as an organic and dynamic concept which can bring changes
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in the business and its activity at any time so entrepreneurs need to be well prepared in advance
in order to deal with them. Proper adoption of this theory provide effective results that is success
in the business. This theory helps in determining the internal process and functioning of the
business in order to identify various business opportunities with the motive to earn profit. The
only disadvantage of this theory is that main focus is made on development of innovation due to
which other areas of business didn’t get due attention which may lead to certain difficulties. In
context of Simon Cowell, he has taken big risk in his life by resigning his job and starting its
own business. He has opened record label named as Fanfare Records with his fellow mate Lain
Burton. Later on he focus on expanding his business by adopting innovation in its work. He has
come up with various number of television reality shows such as X factor and many more. Hence
with help of innovation he has able to come up with something new in order to expand his
business.
Kirzner’s Theory of Alertness- This theory has been develop by British-American economist
named as Israel Kirzner where he has put a point that in order to balance the demand and supply
in the marketplace the entrepreneurs identify the various market imperfections and exploit them
for their benefit (Storr and John, 2015). Market imperfections take place due to various factors
that is asymmetry information and bounded rationally. Asymmetry information alludes to
situations where various partners have differing data about an undertaking. On the off chance
that one partner utilizes the data preferred position to benefit from the another, it is participating
in pioneering haggling. Bounded rationality alludes to the possibility that people are not
completely balanced. Neo-old style and Classical financial matters model the suspicions of
monetary man, and will in general disregard limited objectivity. According to this theory the
successful entrepreneurs are one who have the ability to face the ups and down in the
marketplace and able to tolerant the uncertainties in the business. The market conditions are not
same all the time its essential for entrepreneur to be prepare in advance with various strategies
and plans in order to deal with the undesirable and uncertain conditions. With the help of proper
and effective market research in which the customer needs, desires and competitors strategies are
been identified in order to formulate better strategies and to identify the certain types of
opportunities. In context of Simon Cowell, he has spend his time on analyzing the market trends
and the needs, preferences and desires of the customers. As every business has one motive to
provide quality products and services to its potential customers in order to satisfy them. He
identify the growth opportunity in coming up with television shows with the motive to entertain
its customers and to attract them in order to increase its profits and to enhance its brand value.
CONCLUSION
From the above study it has been concluded that entrepreneurship is not easy and simple
way in order to attain success. There are various factors which need to be considered by the
entrepreneur in order to achieve its desire objectives in life. The most important factors is to have
the mindset to do something big and different in order to establish its name as brand. The
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individual with long term objective and self motivated able to achieve its desire results.
Moreover the innovative and creative skills helps in bring something new in the marketplace
which attract the customers and helps the individual to make its idea successful.
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REFERENCES
Books & Journals
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Mitra, J., 2019. Entrepreneurship, innovation and regional development: an introduction. Routledge.
Adomako and et. al., 2018. Entrepreneurial alertness and new venture performance: Facilitating roles of
networking capability. International Small Business Journal. 36(5). pp.453-472.
Murnieks and et. al., 2016. Drawn to the fire: The role of passion, tenacity and inspirational leadership in
angel investing. Journal of Business Venturing. 31(4). pp.468-484.
Smith, R., Bell, R. and Watts, H., 2014. Personality trait differences between traditional and
social entrepreneurs. Social Enterprise Journal.
Chell, E., 2013. Review of skill and the entrepreneurial process. International Journal of
Entrepreneurial Behavior & Research.
Tülüce, N.S. and Yurtkur, A.K., 2015. Term of strategic entrepreneurship and Schumpeter's
creative destruction theory. Procedia-Social and Behavioral Sciences, 207, pp.720-728.
Storr, V.H. and John, A., 2015. The determinants of entrepreneurial alertness and the
characteristics of successful entrepreneurs. In Culture and Economic Action. Edward
Elgar Publishing.
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