How Entrepreneurial Skills and Traits Drive Business Success

Introduction

How Entrepreneurial Skills and Traits Drive Business Success – Entrepreneurship is the ability and readiness to organise, develop, and run a business operation, despite any uncertainties, to make a profit. It involves the process of launching, developing, and managing a new enterprise, along with the capacity to take risks. The individuals who create or manage these types of firms are known as entrepreneurs (Ferreira, Fernandes, and Kraus, 2019). These individuals have the capability to identify and act on opportunities, transforming technologies and inventions into products and services.

A venture is defined as a new business project or activity that involves risk. It is also referred to as a form of adventure undertaken by individuals with the ability to take risks, with the primary aim of earning a profit. Ventures are often established by small business owners through the invention of new products and services, aiming to fulfil the needs and desires of customers, as well as contributing to social welfare.

Entrepreneurial Traits

Due to COVID-19, many entrepreneurs have found themselves in a more competitive environment against large business enterprises with significant financial and resource advantages. To thrive and remain resilient in the post-COVID-19 era, several skills and traits are essential for a successful venture. During this crisis, the demand for online grocery and food delivery has rapidly increased in all cities as people faced critical situations due to lockdowns. This is a time when entrepreneurs must make the right decisions to emerge as successful leaders. Therefore, they need to possess certain skills and traits to thrive in the post-pandemic situation.

A skill is defined as the ability to perform an action to achieve specific results with a given amount of energy and time. It often requires certain situations and environmental stimuli to attain a level of success (Morozova, Popkova, and Litvinova, 2019). There are many skills performed by individuals, such as technical, life, and labour skills.

Self-regulation is a vital skill that involves managing emotions to respond rationally rather than emotionally. This means individuals must think before they act. Optimism is another crucial skill needed in the post-pandemic era for becoming a successful entrepreneur. Optimistic individuals do not let failures deter them and always strive to succeed. Although maintaining optimism is challenging, it is critical for success (Ahsan, 2020).

Creativity is essential for effective communication, which can be advantageous in this situation. These skills and traits are often inherent in risk-taking individuals, giving them the ability to respond to questions posed by others. Drive is another important trait. For many entrepreneurs, starting a new enterprise is not just about making a profit but also about having the passion to find solutions to fill a gap where there is a need. They must remain strong even during the pandemic. To achieve their goals, entrepreneurs must be determined and passionate about their work.

Bravery is an incredible quality inherent in entrepreneurs. They have the strength to handle challenging situations and the courage to make the right decisions. Entrepreneurs must have the skills and traits to take risks when entering new markets or establishing their businesses, showing bravery in all situations. Courage is also essential for leaders to try new things, trust their employees, and have confidence in others, which helps solve difficult problems (Boudreaux, Nikolaev, and Klein, 2019).

Respect is crucial for managers and leaders. When managers and leaders are respected by their employees, it leads to increased motivation among employees, resulting in higher productivity. Managers who create a positive identity in the eyes of their employees can enhance their image within the company.

Entrepreneurial traits are defined as the abilities, characteristics, and thought patterns that help entrepreneurs become successful. While many individuals are born with these traits, others must develop them over time. Some traits associated with entrepreneurs include:

• Discipline: Entrepreneurs who are disciplined set an example for their employees, ensuring that tasks are completed on time. Leaders and managers with strong work ethics inspire determination and hard work to achieve business goals.
• Tenacity: Entrepreneurs possess the ability to remain tough in difficult situations. They do not give up easily when faced with challenges. They can accept rejections and are willing to learn from their mistakes. They can adapt and modify their plans to succeed in the future.

Jeff Bezos is an American internet industrialist, entrepreneur, investor, and the well-known founder and CEO of the multinational technology company Amazon. He started in his garage and transformed it into a recognised online shopping portal. His knowledge and skills have led him to great success, earning him the title of “King of the Internet” (Brush et al., 2019). Bezos is known for his risk-taking abilities and being a demanding boss who does not tolerate complacency.

Several skills and traits have helped Jeff Bezos thrive, especially during the pandemic:

• Hardcore Realism: Bezos embodies crucial entrepreneurial traits and skills that should inspire other entrepreneurs. He realistically considers all possibilities and probabilities. During the pandemic, Amazon supported society by offering proper facilities, including sanitising their products and services.
• Flexibility: Bezos has worked in a flexible environment to protect his employees through regular check-ups, ensuring their safety and helping the economy recover. Amazon staff members have supported people by delivering supplies directly to their doorsteps.
• High Competitiveness: Bezos is highly competitive. He does not seek competition but eliminates it. During the pandemic, Amazon reduced prices to meet customers’ needs and desires.
• Persuasion and Influence: Bezos is a transformational leader with a strong set of values, principles, and beliefs for his company. He motivates his employees to follow these rules (Chowdhury, Audretsch, and Belitski, 2019). Additionally, he influences his employees by strengthening and developing their skills to improve their performance.

It is clear from the above that Jeff Bezos has created sustained growth for his organisation through his innovative and visionary leadership style. In reflection of this, several entrepreneurship theories are relevant, as discussed below:

Schumpeter’s Theory of Creative Destruction

Creative destruction refers to the dismantling of long-standing practices to make way for innovation. This theory, developed by Joseph Schumpeter in 1942, defines creative destruction as a transformation in the manufacturing process that leads to increased productivity. It is a dynamic and organic process that results in economic development and creates opportunities for profit. Schumpeter argued that socialism, capitalism, and democracy lead to the entry of new markets and products through new innovations. This theory describes the process where innovation replaces existing products, making them obsolete over time (Guzman and Stern, 2020).

Jeff Bezos exemplifies this theory through his ability to create new products and services that can capture significant market segments. The theory emphasises the importance of dynamism in the economic system. According to Schumpeter, long-standing assumptions and arrangements must be dismantled to free resources and energy for new innovations. This process of industrial alteration continuously revolutionises the structure of the economy by destroying the old and creating the new.

The concept of creative destruction assumes that existing resources and arrangements must be eliminated to deploy innovation. The process results in winners and losers, with entrepreneurs and employees working on new technologies designing disequilibrium and creating new opportunities. Leaders or managers who cling to old technologies will be left behind. Thus, economic development is seen as a natural outcome of market factors that create opportunities for profitability.

Jeff Bezos has utilised this theory by leveraging new technology, such as lowering product prices to satisfy all types of customers, especially during the pandemic. The internet is a prime example of creative destruction, providing numerous opportunities for companies to enjoy productivity and profitability. The main point of this theory is that it is an evolutionary process that rewards improvements and innovations, leading to efficient resource organisation (Henrekson and Sanandaji, 2020).

Furthermore, the theory describes changes in the economy through the creation of new methods, the destruction of old machinery or services, and the introduction of new ones. By creating new products, this theory fosters capitalist economic development. It highlights the flexible nature of the modern economic system, leading to a positive evolutionary process. However, there is criticism of this theory, as the implementation of new units can lead to the engagement of new technologies and financial systems, which may disrupt existing structures.

Kirzner’s Theory of Alertness

Kirzner’s theory of alertness was developed by British-American economist and professor at New York University, Israel Kirzner. According to Kirzner, entrepreneurs balance demand and supply by identifying and exploiting market inefficiencies. He argues that the profits earned by entrepreneurs are a reward for their tolerance of uncertainties, as they capitalize on opportunities created by the incompetence and ignorance of established firms.

Jeff Bezos exemplifies this theory by being alert to economic opportunities that competitors have not yet identified. Opportunities often arise when other managers overlook them (Martin-Rojas et al., 2019). This alertness increases Amazon’s productivity and profitability.

Entrepreneurs who embrace this theory believe in seizing opportunities for their businesses. Market research and customer engagement can help identify these opportunities. As CEO of Amazon, Bezos demonstrates the skill of acquiring resources and innovating new products and services to take economic action. Kirzner’s theory argues that the entrepreneurial innovation process is linked to a manager’s knowledge and experience. Alertness enables individuals to make valuable discoveries that satisfy human needs.

Entrepreneurs must cultivate alertness to exploit situations where they can buy low and sell high. This theory highlights the importance of exploitation, opportunity, and exploration. Kirzner examines entrepreneurial alertness at an individual level (Horst and Murschetz, 2019). Alertness to opportunity often involves subconscious learning, which, once realized, becomes a positive force for entrepreneurs to exploit profits. By being alert, entrepreneurs can explore opportunities using all available resources, including human and financial aspects.

One obstacle in this theory is that decision-makers might miss unnoticed profit opportunities, leading to ignorance of existing prices. However, the logic of entrepreneurial discovery is compatible with strategies of intentional search and the creation of new opportunities, despite the uncertainty involved.

Entrepreneurial Conclusion

From the above analysis, it is concluded that an entrepreneur is a person who undertakes a small business venture with the motive of earning profit and contributing to the welfare of society. Entrepreneurs are individuals with skills and traits that enhance the profitability and productivity of business operations.

Key skills that contribute to the success of ventures include the ability to manage and raise money, maintain productivity, and identify strengths and weaknesses when hiring people. Additionally, entrepreneurs possess traits that boost the productivity of their ventures, such as effective leadership, learning from experience, and developing approaches that enhance the goodwill of the firm.

References

Books and Journals

Ahsan, M., 2020. Entrepreneurship and ethics in the sharing economy: A critical perspective. Journal of Business Ethics, 161(1), pp.19-33.

Boudreaux, C.J., Nikolaev, B.N. and Klein, P., 2019. Socio-cognitive traits and entrepreneurship: The moderating role of economic institutions. Journal of Business Venturing, 34(1), pp.178-196.

Brush, C. and et. al., 2019. A gendered look at entrepreneurship ecosystems. Small Business Economics, 53(2), pp.393-408.

Chowdhury, F., Audretsch, D.B. and Belitski, M., 2019. Institutions and entrepreneurship quality. Entrepreneurship Theory and Practice, 43(1), pp.51-81.

Ferreira, J.J., Fernandes, C.I. and Kraus, S., 2019. Entrepreneurship research: Mapping intellectual structures and research trends. Review of Managerial Science, 13(1), pp.181-205.

Guzman, J. and Stern, S., 2020. The State of American Entrepreneurship: New Estimates of the Quantity and Quality of Entrepreneurship for 32 US States, 1988–2014. American Economic Journal: Economic Policy, 12(4), pp.212-243.

Henrekson, M. and Sanandaji, T., 2020. Measuring entrepreneurship: Do established metrics capture Schumpeterian entrepreneurship? Entrepreneurship Theory and Practice, 44(4), pp.733-760.

Horst, S.O. and Murschetz, P.C., 2019. Strategic media entrepreneurship: Theory development and problematization. Journal of Media Management and Entrepreneurship (JMME), 1(1), pp.1-26.

Martin-Rojas, R. and et. al., 2019. Technological antecedents of entrepreneurship and its consequences for organizational performance. Technological Forecasting and Social Change, 147, pp.22-35.

Morozova, I.A., Popkova, E.G. and Litvinova, T.N., 2019. Sustainable development of global entrepreneurship: Infrastructure and perspectives. International Entrepreneurship and Management Journal, 15(2), pp.589-597.

Relevant Entrepreneurial Blog Posts

Enterprise Dissertation Topics

Are Entrepreneurs Born Or Made?

Entrepreneur Characteristics

Did you find any useful knowledge relating to entrepreneurial skills and traits in this post? What are the key facts that grabbed your attention? Let us know in the comments. Thank you.