Starting a successful business takes many steps, including a strong idea and startup capital. But perhaps the most important factor is entrepreneurship. These people need to change their thinking about all the management agencies.
If you are thinking of starting your own business, you may be wondering if you have what it takes to be an entrepreneur. But first, what is entrepreneurship?
Characteristics and competencies that made most successful entrepreneurs
1. Curiosity
Successful entrepreneurs have a distinct personality trait that sets them apart from other organizational leaders: a sense of curiosity. An entrepreneur’s ability to remain curious allows them to continuously seek new opportunities. Rather than settling for what they think they know, entrepreneurs ask challenging questions and explore different avenues.
This is validated in the online course Entrepreneurship Essentials, where entrepreneurship is described as a “process of discovery.” Without curiosity, entrepreneurs can’t achieve their main objective: discovering new opportunities.
The drive they have to continuously ask questions and challenge the status quo can lead them to valuable discoveries easily overlooked by other business professionals.
2. Willingness to Experiment
Along with curiosity, entrepreneurs require an understanding of structured experimentation, such as design thinking. With each new opportunity, an entrepreneur must run tests to determine if it’s worthwhile to pursue.
For example, if you have an idea for a new product or service that fulfills an underserved demand, you’ll have to ensure customers are willing to pay for it and it meets their needs. To do so, you’ll need to conduct thorough market research and run meaningful tests to validate your idea and determine its potential.
3. Adaptability
Entrepreneurship is an iterative process, and new challenges and opportunities present themselves at every turn. It’s nearly impossible to be prepared for every scenario, but successful business leaders must be adaptable.
This is especially true for entrepreneurs who need to evaluate situations and remain flexible to ensure their business keeps moving forward, no matter what unexpected changes occur.
4. Decisiveness
To be successful, an entrepreneur has to make difficult decisions and stand by them. As a leader, they’re responsible for guiding the trajectory of their business, including every aspect from funding and strategy to resource allocation.
Being decisive doesn’t always mean being correct. Entrepreneurs need the confidence to make challenging decisions and see them through to the end. If the outcome turns out to be less than favorable, the decision to take corrective action is just as important.
5. Self-Awareness
A great entrepreneur is aware of their strengths and weaknesses. Rather than letting shortcomings hold them back, they build well-rounded teams that complement their abilities.
In many cases, it’s the entrepreneurial team, rather than an individual, that drives a business venture toward success. When starting your own business, it’s critical to surround yourself with teammates who have complementary talents and contribute to a common goal.
6. Risk Tolerance
Entrepreneurship is often associated with risk. While it’s true that launching a venture requires an entrepreneur to take risks, they also need to take steps to minimize it.
While many things can go wrong when launching a new venture, many things can go right. According to Entrepreneurship Essentials, entrepreneurs who actively manage the relationship between risk and reward position their companies to “benefit from the upside.”
Successful entrepreneurs are comfortable with encountering some level of risk to reap the rewards of their efforts; however, their risk tolerance is tightly related to their efforts to mitigate it.
7. Comfort with Failure
In addition to risk-management and calculated decision-making, entrepreneurship requires a certain level of comfort with failure.
“Of startups that have more than one employee, 70 percent survive at least two years, half last at least five years, and a quarter last 15 years,” says Harvard Business School Professor William Sahlman in Entrepreneurship Essentials. “Even then, only a small fraction of the survivors get to be significant employers.”
The reasons for failure are vast and encompass everything from a lack of business scalability to low product-market fit. While many of these risks can be avoided, some are inevitable.
Despite this, entrepreneurs must prepare themselves for, and be comfortable with, failure. Rather than let fear hold them back, they maintain a positive attitude to allow the possibility of success to propel them forward.
8. Persistence
While many successful entrepreneurs are comfortable with the possibility of failing, it doesn’t mean they give up easily. Rather, they see failure as an opportunity to learn and grow.
Throughout the entrepreneurial process, many hypotheses turn out to be wrong, and some ventures fail altogether. Part of what makes an entrepreneur successful is their willingness to learn from mistakes, ask questions, and persist until they reach their goal.
9. Innovative Thinking
Innovation often goes hand-in-hand with entrepreneurship. While innovation in business can be defined as an idea that’s both novel and useful, it doesn’t always involve creating an entirely new product or service. Some of the most successful startups have taken existing products or services and drastically improved them to meet the changing needs of the market.
Although innovation doesn’t come naturally to every entrepreneur, it’s a type of strategic mindset that can be cultivated. By developing your problem-solving skills, you’ll be well-equipped to spot innovative opportunities and position your venture for success.
10. Long-Term Focus
Most people associate entrepreneurship with starting a business. While the early stages of launching a venture, such as securing funding, are critical to its success, the process doesn’t end once the business is operational.
According to Entrepreneurship Essentials, “it’s easy to start a business, but hard to grow a sustainable and substantial one. Some of the greatest opportunities in history were discovered well after a venture launched.”
Entrepreneurship is a long-term endeavor, and entrepreneurs must focus on the process from beginning to end to ensure long-term success.