Study: Qualities of Entrepreneur to Succeed a Business

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Success of an organization highly depends on the entrepreneur’s qualities and traits. Some entrepreneurs own success items and they turn things into success while others could not meet such big success if not, in worst cases, fail. So, what makes such successful entrepreneurs different from those that still turn around in their vicious circles and couldn’t meet any success?

Starting a business requires a lot of hard and smart work, and this is not at the hands of everyone. Even with a lot of plans and firm strategies, things won’t always work as expected. Some things that were supposed to work will just turn to fail, and unexpected problems will occur. At that moment comes the role of the entrepreneur that has the qualities of leading the business with passion and patience to come over such obstacles and reach success.

Small businesses are vulnerable and the presence of a good entrepreneur is more crucial. Small businesses are the locomotives of any economy and they have a considerable impact on the market.

A new study published recently has investigated qualities of entrepreneurship and “the common reasons that motivate people to become and work as entrepreneurs along with the constraints they face when starting and developing their business activity.” For that purpose researchers asked 250 people “engaging in the manufacturing trading and services sectors in Small and Medium Industries”.

To succeed as a leader of an organization, the entrepreneur needs a number of traits. The mentioned study stated what researchers called the five leadership qualities. The leader is required to be “honest, forward looking, competent, inspiring and intelligent”.

Besides, innovation and creativity is another factor that needs to be considered. A lot of studies have stressed the importance of innovation in business success, but implementing innovation requires an entrepreneur that believes in it and ready to adopt it into business.

Among the other factors researchers said contribute to the entrepreneur success including risk taking, innovation, communication, and connect with others.

  • Taking risk in taking appropriate decisions for their business activities;
    •    Innovation and creativity are the perception to accept new ideas;
    •    Confidence to be independent in taking decision and conduction their own business;
    •    Relationship with other to establish and maintain good relationship with people involved in business.

Being a successful leader doesn’t mean to be the source of every ideas, but to be intelligent enough to interact with others and get what necessary to push the business forward. As stated in the study, as entrepreneur you could learn a lot from “people you lead by asking intelligent questions and opinions.” Thus, you “will capable to increase credibility.”

The entrepreneur must be very intelligent by gently leading people toward understanding even when he knows the answer

  • Display emotions exactly in line with feelings
  • Make decision based on my core values
  • Demonstrate beliefs that are consistent with actions.

Researchers mentioned other entrepreneurial qualities that considered the significant characteristics for entrepreneur including to “believe in actions 59 % from respondents, analyze before actions 63% and listening the others 52 %”.

According to the results researchers acquired by their survey “Quality attributes of entrepreneurs that make big contribution to the high of entrepreneurial quality of business people are:

innovation and creativity 58,8%,

self confidence 63,2% ,

connection with others 55,6 %

and communication  51,6%

Researchers have summed up some of the factors needed to lead an organization to success into 4 main elements:

•    Planning – making decisions with regards to the future and making those plans happen.
•    Do – utilizing the fullest potential of resources people, capital and assets to ensure the success of the plans.
•    Activity – inspiring others to do their part effectively in carrying out the organization’s plans.
•   Controlling – step by step monitoring of the implementation process to see if changes are necessary to be made on the plans.

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Why You Need Innovation In Your Business?

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Many reasons would push you as an entrepreneur to adopt new ideas into your business to achieve success which is the ultimate goal of every business. It’s true that businesses differ one from another, so do their priorities and particularities of each sector, but a business that isn’t innovating risks of losing the battle for competitors or just functioning ineffectively. Innovation is a key to businesses in general and for small and medium business in particular.

Scientific studies have always highlighted the importance of innovation on business by investigating various dimensions of innovation including product, process, and market innovation. A recently study has investigated impact of these dimensions of innovation on the performance of SMEs.

The study which is conducted by a group of scientists from Malaysia has tried to answer the question: How Can Innovation Impact Enterprises? The research finds that both product innovation and process innovation are crucial for businesses and has a great impact on the performance of a business. “The findings confirmed the hypotheses that product innovation and process innovation influenced firm performance significantly, where the impact of the former was stronger than the latter” the study stated.

Innovation opens the door wide to find the existing opportunities in the present and potential ones for the future. Innovation gives answers not only to today’s needs, but expect trends of the future and come out with new ideas including a new service or a new product that allows the organization to operate effectively. Innovation is what helps businesses survive the fierce competition in the market, if not leading it.

Another study which is published in a Journal of Innovation Management in Small & Medium Enterprise has inspected the innovative behavior of small businesses. This research stressed out “that innovation is recognized as the strategic mean of survival even for the small businesses.” Researchers noticed in their study that “entrepreneurs have at least adopted the administrative innovations that involve improvements and newness in daily administrative processes.”

Besides, the study has made a number of valuable notices about how likely small businesses are adopting innovation. Scientists observed that “small firms are frequently exposed to severe resource constraint, thus limit their innovation performance compared to larger organizations…Radical innovation and invention have not been carried out by most of the subjects as it requires strong internal resources and established business network.”

Based on the paper’s findings, researchers advised that “entrepreneurs who are in critical situations or without choices need to take creative and bold actions in order to grow.” Also, they added that “small firms must also be encouraged to expand their innovation scopes to product, process and technical innovation…. (As) process and technical innovation are able to generate higher future revenues and profits.”

Challenges that entrepreneurs face include lack of support considering financial and knowledge. The research provided evidence that “small entrepreneurs need more support in terms of resource funding, knowledge and access to information on opportunities and alternatives, and skilled human resources.”

In spite of high costs that might be needed to implement an innovative idea, but if arriving to innovate, the benefits are really high and would participate in the prosperity of the organization in the future. An organization that does not innovate is leading the way down, and sooner or later everything within the business would become obsolete to the changing trends around in the market.