Entrepreneurial Mindset, Traits, and Background Analysis

This report provides a comprehensive overview of the entrepreneurial mindset, exploring the key characteristics, traits, and skills that distinguish successful entrepreneurs. It delves into the differences between entrepreneurs and managers, highlighting their contrasting motivations and approaches. The report analyzes the motivational drivers that fuel entrepreneurs, including physiological, safety, love and belongingness, self-esteem, and self-actualization needs. Furthermore, it examines how aspects of the entrepreneurial personality, as defined by the OCEAN model (Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism), reflect entrepreneurial motivation and mindset. The report also discusses the nature versus nurture debate, considering how background and experience, including local, international, and social contexts, influence the development of entrepreneurs. Through case studies of individuals like Ren Zhengfei and Liz Wilson, the report provides practical examples and insights into the multifaceted nature of entrepreneurship.

ENTREPRENERUSHIP
AND SMALL BUSINESS
MANAGEMENT
1

INTRODUCTION...........................................................................................................................3
What is Entrepreneur Mind-set?..................................................................................................4
The characteristic traits, skills of successful entrepreneurs.........................................................4
Difference between characteristics of successful Entrepreneurs and Managers........................6
The motivational drivers of successful entrepreneurs.................................................................6
How aspects of the entrepreneurial personality reflect entrepreneurial motivation and mind-set
.....................................................................................................................................................7
Nature or Nurture : Are Entrepreneurs Born or Made?..............................................................9
How background and experience influences entrepreneurs: Local Entrepreneur.......................9
How background and experience influences entrepreneurs: International Entrepreneur..........10
How background and experience influences entrepreneurs: Social Entrepreneur....................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Entrepreneurship is defined as a process that include steps related to initiate, design, run and
launching of new and unique business idea with innovations in marketplace. This process is
mainly termed as willingness as well as capacity of an individual to evolve, organize and manage
risk elements and generate value from them (Ács, Autio and Szerb, 2014). In context with this,
entrepreneur are define as those individual who take use of new ideas with risk factors and
developed innovative and unique business ventures with the motive of long-term sustainability.
Entrepreneurship is most important and crucial aspect of any country as it is the main source of
revenue generation that also lead towards higher GDP. It not only contributes in employment
sector but also increases living standard of individual by increasing per capita income. Present
report will discuss the aspects on characteristics skills and traits of successful entrepreneur along
with characteristics of successful managers and entrepreneurs. In addition to this report include
entrepreneur personality that reflects entrepreneurial mind set and motivation. Lastly report
includes experience and background that influence local, social and international entrepreneur.
What is Entrepreneur Mind-set?
Entrepreneur mindset is defined as a state of mind that familiarizes individual conduct
towards entrepreneurial conduct towards outcomes as well as activities. It has been identified
that individuals who are having entrepreneurial mindsets are mainly drawn towards innovation,
opportunities as well as new value creation. In simple word, entrepreneurial mind set concept
defines certain way of thinking in which an individual, approach mistakes and challenges.
Further it has been evaluated that successful entrepreneurs have five characteristics that are
decisiveness, confidence, accountability, resilience and humility. All these characters acts as
proven formula through which an individual can develop entrepreneurial mind set and can
strengthen their skills and capabilities in a well effective manner.
The characteristic traits, skills of successful entrepreneurs
Entrepreneur is termed as those individual who start new business ventures with having
innovation and uniqueness. They considered different element of risk and significantly lead
towards creating value from them by ensuring high profit and maximum satisfaction from
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customers in best effective manner (Drucker, 2014). Entrepreneur undertakes decisions related to
the product and service quality that they produce. They are known as sole proprietor who are
having majority of shares. Further it has been evaluated that in order to accomplish their goals
and achieve success entrepreneur is having a set standard that motivates them towards
accomplishment of their entrepreneurial objectives. It has been identified that entrepreneur as
having a unique set of skill, characteristics and trait that differentiate them from others.
Mentioned below motivational drivers, characteristics and skill of different entrepreneurs is been
defined below:
Ren Zhengfei:
Ren Zhengfei is a Chinese entrepreneur and CEO of Huawei. This venture marked its place
among one of the largest producer of telecom equipments globally. By being a successful
entrepreneur, Ren work hard with an aim to make Huawei one of the biggest producers of
Smartphone. Mentioned below skills as well as characteristics of defines that makes him a
successful entrepreneur is defined below:
Characteristic
Keen Learner: Ren Zhengfei mainly believes in learning before act philosophy. He mainly
emphasize upon Huawei employees in order to make them adaptive towards new things. On the
other hand company manager undertake use of inflexible management style that make them to
restrict to word new to change to execute a task.
Skill
Directive Leadership: This is one of the most important skills that have been possessed by
Ren Zhengfei. In this directive form of leadership is adopted by him in order to set target and
goals for Huawei employees. In this form of leadership, leaders offer formative form of direction
to workers as to accomplish entity goals and objectives. In opposite to this, manager of company
use rigid style that restricts them to make rapid changes.
Trait
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Purpose driven ambitious: This trait of Ren Zhengfei define his aspiring nature to make
Huawei to accomplish consumer demands as well as needs in a well defined manner. He always
aspire employees with his success story that also acts as a motivating agent towards
organizational goals. In contrast to this manager of company seen to be ineffective and face
difficulties to fulfill actual needs of consumers.
Liz Wilson
Liz Wilson is an owner of Ma Baker. She is a passionate baker, home cook and teacher.
With her passion and innovative idea Liz operate a successful and award winning micro bakery
that serve needs and demands of consumers in a well effective manner.
Characteristic
Passion: This is one of the most essential characteristics that have been hold by Liz Wilson.
With having a passion she effectively stimulate growth of the business venture while ensuring its
long-term sustainability. This characteristic allows her to accomplish corporate goals overcome
complex and tensed situations in a well effective manner.
Skill
Innovative thinking: This skill is most essential and crucial skill which Liz is having, as it
innovative thinking direct her towards fulfilling changing needs and demands of customers and
fulfill organizational targets in effective manner. In context with managers of company, it has
been identified that they did not have innovative thinking skill as their nature is to restrict any
change in organizational structure
Trait
Confident: This trait is been successfully possessed by Liz Wilson that allows her to
effectively conducts organizational activities with high confidence. Business venture in which
she operates business is dynamic and in this needs of consumers dynamically changes. With the
help of effective confidence Liz undertake new ideas that develops new opportunities to ensure
maximum business growth.
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Difference between characteristics of successful Entrepreneurs and Managers
Entrepreneurs Managers
Entrepreneurs does not work for profit motive
as their main vision is to innovative something
new and unique to serve community in a well
defined manner.
Managers mainly perform their work for
salary and have main motive to increase
profitability.
They are keen to learn new things and are
mainly tend towards innovation as to consider
new opportunities.
Managers mainly consider change and
innovation as a problem and their nature is
to restrict new change
The motivational drivers of successful entrepreneurs
There is different type of motivational drivers of a successful entrepreneur. All the drivers is
further define below in descriptive manner:
Physiological needs: This is one of the basic drivers that an individual seeks for. It includes
clothing, food and shelter (Kirzner, 2015). Without all these it is hard for a person to survive,
these needs provide internal satisfaction through which accomplishment of goals can be done in
well effective manner. These factors acts as successful driver that can lead to satisfaction among
individual.
Safety needs: It is most important need that successfully drives motivation among
entrepreneur. In this it is essential to provide proper stability, security, freedom and more. In
addition to this it further include economic safety. With the fulfillment of this need psychological
motivation can be offered to entrepreneur.
Love and Belongingness needs: This is also involved under most important driver of
motivation as feeling of belongingness and love provide internal satisfaction. Along with is it
also involved acceptance, trust, friendship and more and helps in developing social networking
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which is most important trait of entrepreneur in order to encourage other individuals in best
effective manner.
Self-esteem needs: This involves self reputation and self esteem in individuals. Having self-
esteem can effectively motivate individual to perform task and objectives in a well effective
manner. With having respect in society motivates an individual to perform hard work and make
significant increase in standard of living.
Self–actualisation needs: This is high level of need that an individual seeks. This is most
important driver of success as with the help of this individual can analyze about his inner
capabilities and strength at successfully motivate them to utilize their full potential.
How aspects of the entrepreneurial personality reflect entrepreneurial motivation and mind-set
Every entrepreneur has their own traits that simply differentiate themselves from the other
entrepreneurs working at marketplace (George and Bock, 2011). In addition to this, it can be
said that these traits simply supports entrepreneurs in defeating their competitors and gaining
competitive edge in rightful manner. OCEAN model is basically used for exploring personality
of the entrepreneur that specifies their characteristics and also supports them allot in developing
their personality in such a manner that motivates them and help them out in attaining success in
quicker manner. OCEAN model is explained as below in detailed manner:
Openness: This type of personality trait simply specify the behaviour of the individual
that is always open and active to learn new things as per the requirement their business. With
reference to current chosen entrepreneurs that is Liz Wilson, Bill Drayton and Ren Zhengfei, it
can be said that all of these entrepreneurs’ are highly open to learn new things as they believes
that by doing so it would be easier for them to look after new opportunities and grab them
effectively with the advance and enhanced skill in appropriate manner.
Conscientiousness: This personality aspect simply shows disciplinary behaviour and
ambitiousness of individual towards the work they are performing. With reference to Liz Wilson,
Bill Drayton and Ren Zhengfei, it has been analysed all of these entrepreneurs were highly
disciplined that supports them out in succeeding in their respective field and attain success
quickly in the entrepreneurial venture in right manner.
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Extraversion: This form of personality characteristic simply shows the extrovert
behaviour of entrepreneur that shows that they are outspoken and can easily express the way of
performing work in adequate manner. Inclusion of this personality aspect helps entrepreneur in
making use of available skills in lucrative that ultimately enhances their capability of attaining
success in quicker manner. In context of Liz Wilson, Bill Drayton and Ren Zhengfei inclusion of
this personality aspect helps entrepreneur in determining solutions for the problems that is being
faced by them in their respective businesses.
Agreeableness: Here, agreeableness in the individual simply depicts that how effectively
they are co operating with the team members or other people with whom they are performing
their work for attaining success. In context of chosen entrepreneurs such as Liz Wilson, Bill
Drayton and Ren Zhengfei, it has been analysed all three of these entrepreneurs are highly
cooperating individuals who shares strong relationship with the all business associated people
that ultimately helps them out in attaining success in rapid manner. Here, it has also been
analysed that all of them effectively makes use of several modes of social networking techniques
that ultimately supports in attaining success towards their venture.
Neuroticism: These types of personality aspect include several characteristics like
sadness, anger, depression, frustration of the entrepreneur or individual which are highly related
to the emotional phase. In context of chosen entrepreneurs that is Liz Wilson, Bill Drayton and
Ren Zhengfei, it can be said that it is highly important for these entrepreneurs to ensure that they
must increase the level of emotional influences in their work as it might affect their performance
in negative manner. By having strong command over their emotions it would be easier for the
entrepreneur to succeed as they are more confident and have higher leadership skills.
Nature or Nurture
: Are Entrepreneurs Born or Made?
Entrepreneur is determined as the person who analyses external problems at marketplace or
in their life and then develop particular product or service which could rectify those problems in
appropriate manner. These products or services are further sold at marketplace in exchange of
the money that ultimately provides them monetary gains. The overall knowledge developed on
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the entrepreneurship it has been analysed that entrepreneurs are not born but they simply
develops skills and knowledge with their own experience that is gained by them with their own
lifestyle (Blackburn, Hart and Wainwright, 2013). In addition to this, it can be said that
entrepreneurs are nurture developed as they learns many special qualities with the help training
sessions as well as own experiences from the past life. Along with this, it has also been analysed
that there are many example such as Liz Wilson who became a popular entrepreneur of London.
The respective lady was not born as the entrepreneur but rather the lady has learned a lot and
followed her passion towards baking and became successful across the London and moving
towards the same success across the world too.
How background and experience influences entrepreneurs: Local Entrepreneur
Entrepreneurship is the willingness to undergo risks with a view to resolve the issues faced
by society at large. In this relation it is widely known that the educational background and
experience of an individual largely places impact over entrepreneurship. With respect to this, it is
identified that Liz Wilson is one of the most prominent and successful local entrepreneurs who
has been running a micro bakery under the name Ma Baker within the confines of London,
United Kingdom. The background and experience of this entrepreneur is discussed as follows:-
Background: Liz Wilson has been a teacher, baker and passionate home cook. She
completed the course of Bread Angel’s Micro Bakery during July of the year 2013 whereby she
developed likelihood towards dealing with bread. This facilitated her to setup her own micro
bakery and situate it in London in the year 2015 with the name Ma Baker. Her Bread School
received 5 star reviews constantly for all the bakery classes given by her over the internet.
Experience: Liz volunteered in a number of bakery and cooking school. In the year 2014,
she became runners up in the category of Home Baker within the World Bread Awards. Thus it
can be seen that before the setup of her own micro bakery in the year 2015, Liz Wilson had a
number of experiences which shaped her as an entrepreneur.
How background and experience influences entrepreneurs: International Entrepreneur
Ren Zhengfei is a renowned international entrepreneur who is acknowledged as being the
founder as well as CEO of Huawei, the greatest telecommunications equipment manufacturer
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worldwide. In accordance with the reports of February 2019, his company held a net worth of
approx. US $1.7 billion.
Experience: As soon as the secondary schooling got completed, Ren joined college during
the 1960s. Post that, the entrepreneur was found to be a member of People’s Liberation Army
research institute whereby he acted as a military technologist. While he worked at this job role,
he was known among his associates owing to the various technological progressions that
emerged because of him and were acknowledged at several levels. As a direct consequence of
the same, Ren Zhenfei was selected for attending the National Science Conference held in the
year 1978. This reflects that the background and experiences driven by Ren supported him in
pursuing entrepreneurship.
Background: The respective entrepreneur’s grandfather was acknowledged as the master
chef within Zhejiang Province. Further, Ren’s father could not complete his college tenure
because of his grandfather’s death an year prior to the completion of his degree. Then, his father
functioned as Accounts Clerk within Govt. Arms Factory. After the elapse of the year 1949,
Ren’s father became the President of No. 1 Middle School of Duyun. Hereby, he met Ren’s
mother who worked as a senior teacher thereby. Thus, it can be seen that strong professional
background of his parents and grandfather assisted Ren in becoming a successful international
entrepreneur.
How background and experience influences entrepreneurs: Social Entrepreneur
Bill Drayton is an excellent example of social entrepreneur who actually laid down the
foundation of defining social entrepreneur. He is the founder as well as the present Chairman of
Ashoka: Innovators for the Public which is an entity dedicated towards discovery of social
entrepreneur and providing them with proper assistance.
Background: The background of Drayton was quite helpful in shaping him as a
successful entrepreneur. During the administration of President Jimmy Carter, Drayton served as
an Assistant Administrator of EPA whereby he was involved in launching of emissions trading
amidst the other types of reform. He functioned in the form of a Visiting Profession at Harvard
as well as Stanford University.
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Experience: The experiences of an entrepreneur have a significant impact over the process
of entrepreneurship. Drayton chaired 2 companies named Youth Venture and Get America
Working. He served as a management consultant as well as manager for McKinsey & Company
for around 10 years. This experience fostered him to open up his own firm whereby he can
provide help to social entrepreneurs like him so that they can grow and develop in market place
for a longer period of time.
CONCLUSION
As per the above mentioned report it has been concluded that entrepreneurship is a process
in which individual engage the process of undertaking risk and use different and unique ideas in
order to start a new business venture. There are number of skill, trait and characteristics that are
required by an entrepreneur as to effectively fulfill their roles and responsibility. In addition to
this, it has been identified that entrepreneurs are made with their skill traits and personality.
However, there are different types of experience and background that influence entrepreneur that
further act as retraining and facilitating factors that help them to develop as a successful
entrepreneur.
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REFERENCES
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Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
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Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
business. Palgrave Macmillan.
Choi, N. and Majumdar, S., 2014. Social entrepreneurship as an essentially contested concept:
Opening a new avenue for systematic future research. Journal of business venturing.
29(3). pp.363-376.
Chrisman, J. J. and et. al., 2012. Family involvement, family influence, and family‐centered non‐
economic goals in small firms. Entrepreneurship theory and practice. 36(2). pp.267-293.
Decker, R. and et. al., 2014. The role of entrepreneurship in US job creation and economic
dynamism. Journal of Economic Perspectives. 28(3). pp.3-24.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’
perceptions of business ethics and CSR-related concepts. Journal of Business ethics.
98(3). pp.425-453.
George, G. and Bock, A. J., 2011. The business model in practice and its implications for
entrepreneurship research. Entrepreneurship theory and practice. 35(1). pp.83-111.
Islam and et. al., 2011. Effect of entrepreneur and firm characteristics on the business success of
small and medium enterprises (SMEs) in Bangladesh. International Journal of Business
and Management. 6(3). p.289.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
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Kiss, A. N., Danis, W. M. and Cavusgil, S. T., 2012. International entrepreneurship research in
emerging economies: A critical review and research agenda. Journal of Business
Venturing. 27(2). pp.266-290.
Kuratko, D. F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
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