Chapter 4

ENTREPRENEURIAL
PERSONALITY

THERE ARE TWO COMPLEMENTARY

FACTORS THAT DETERMINE
SUCCESS OF FAILURE IN AN
ENTREPRENEURSHIP
1. the environment, and
2. The personality of the entrepreneur.

ECONOMIC ENVIRONMENTS MAY BE

CLASSIFIED AS FOLLOWS:
1. Those fully supportive of
entrepreneurships;
2. Those moderately supportive of
entrepreneurships; and
3. Those not supportive of
entrepreneurships.

Types of
Economics
Those fully
Environment
supportive of

The
Entrepreneur
s
Task
easy

entrepreneurships

Those moderately
supportive of
entrepreneurships

Less
easy

Those not
supportive of
entrepreneurships

hard

Figure 9. economic environment and the entrepreneur

THE ENTREPRENEURS PERSONALITY

Every person has a personality that is unique and
different from others. Each personality type has a
corresponding type of job that fits it. A certain
personality, however, may fit in more than one type
of job, although the level of fitness will be different
with each job.

WHAT IS PERSONALITY
Personality refers to the pattern of characteristics
that distinguishes one person from another. It
includes the persons traits, values, motives, genetic
blueprints, attitudes , emotional reactivity, abilities,
self-image, intelligence, and visible behavior
patterns.

TABLE 2
A BRIEF DESCRIPTION OF HOLLANDS PERSONALITY TYPES
REALISTIC

THIS INDIVIDUAL PREFERS ACTIVITIES INVOLVING

AGGRESSIVE BEHAVIOR AND PHYSICAL EXERTION
REQUIRING SKILL, STRENGTH AND COORDINATION.
EXAMPLES:FARMING & MINING.

INVESTIGATIVE

THIS INDIVIDUAL PREFERS TO BE ANALYTICAL, CURIOUS,

METHDODICAL, AND PRECISE
EXAMPLES:CRIME INVESTIGATOR & ARSON
INVESTIGATOR.

ARTISTIC

THIS PERSON IS EXPRESSIVE,

NONCONFORMING,ORIGINAL, AND INTROPERSPECTIVE.
EXAMPLES:SONGWRITER & NOVELIST.

SOCIAL

THIS PERSON ENJOYS WORKING WITH AND HELPING

OTHERS AND PURPOSEFULLY AVOIDS SYSTEMATIC
ACTIVITIES INVOLVING TOOLS AND MACHINERY.
EXAMPLES:SOCIAL WORKER.

ENTERPRISING

THIS PERSON ENJOYS VERBAL ACTIVITIES TO INFLUENCE

OTHERS AND TO ATTAIN POWER AND STATUS.
EXAMPLES:MANAGER & ENTREPRENEUR.

CONVENTIONAL

THIS PERSON ENJOYS THE SYSTEMATIC MANIPULATION

OF DATA, FILING OF RECORDS, OR REPRODUCING
MATERIALS.
EXAMPLES:ACCOUNTING & FINANCE

CHARTERISTICS OF ENTREPRENEURS
1.Drive
2.Thinking ability;
3.Human relations ability;
4.Ability to communicate;
5.Technical knowledge;
6.Reasonable risk taker;
7.self-confident;
8.Goal setter;
9.accountable; and
10.innovative.

TABLE 3
THE ENTREPRENEUR COMPARED WUTH OTHER RISK
TAKER

TYPES OF RISK
TAKER

LEVEL OF RISK
TAKEN

EXPECTED
LEVEL OF
BENEFITS

SALARIED
EMPLOYEE

LOW

LOW

ENTREPRENEUR

MODERATE

MODERATE

GAMBLER

HIGH

HIGH

WHAT MOTIVATES PEOPLE TO

BECAME ENTREPRENEURS.
1. The desire to be ones own boss
- there are times when an employee

sees some good opportunities for his

employers business. When he
recommends action to be undertaken
and is ignored, the employee may just
proceed to take the opportunity and
organize his own business.

2. The desire for financial rewards

-getting employed is the desire of most

people. This is understandable because many
people want surely monthly income. Some people,
however , dont get satisfaction from a fixed
monthly income which, most often, is inadequate.
Some think that they deserve to be properly
rewarded for their skills. The means open to
them is entrepreneur.

3.The desire to create ones own job

security; and
-some employees feel that their jobs are not

secure. They think they could be fired for a

variety of reasons. For instance, when a
company decides on downsizing its operations,
employees are the first to be affected. When
management makes serious errors and it affects
the companys viability, the jobs of the
employees are compromised. Persons who cannot
bear to worry about job security may just
decide to become entrepreneurs.

4.The desire to improve ones quality of life

-to some people, engagement in entrepreneurship
provides them with some control over their work
schedules. An entrepreneur can choose a type of
business that will be compatible with the quality of
life he desires. Specifically, the business location
and the type of products sold can be chosen to jibe
with the personal and family needs of entrepreneur.

THE ENTREPRENEUR AND THE

MANAGER DISTINGUISHED
The terms entrepreneur and manager are
sometimes used interchangeably. Although both
jobs are useful to the economy, each performs
distinct functions,

FIGURE 10. ACTIVITY EMPHASIS OF NEW

VENTURES
ENTERPRISE
STAGE
FACTOR
EMPHASIS
I. PRESTART-UP

BUSINESS IDEA
HUMAN RESOURCES
CAPITAL

FULL
NONE
NONE

II. START-UP

BUSINESS IDEA
HUMAN RESOURCES
CAPITAL

NONE
LIMITED
LIMITED

III. EARLY GROWTH

BUSINESS IDEA
HUMAN RESOURCES
CAPITAL

NONE
ESCALATING
ESCALATING

IV. LATER GROWTH

BUSINESS IDEA
HUMAN RESOURCES
CAPITAL

NONE
FULL
FULL

V. STABLE
ENTERPRISE

BUSINESS IDEA
HUMAN RESOURCES
CAPITAL

NONE
FULL
FULL

ENTERPRISE STAGE

ACTIVITY

ENTREPRENEURS
INVOLVEMENT

MANAGERS
INVOLVEMENT

I. PRESTART-UP

FEASIBILITY OF AN IDEA,
PRODUCT OR SERVICES,
AMONG OTHERS, IS
SCRUTINIZED.

FULL

NONE

II. START-UP

BUSINESS IS FORMED,
NECESSARY CAPITAL IS
GENERATED, FACILITIES
AND EQUIPMENT ARE
PURCHASED,PROTOTYPE
OF PRODUCTS ARE BUILT,
MARKET IS TESTED

FULL

NONE

III. EARLY
GROWTH

WITH LIMITED RESOURCES,

SELLING IS UNDERTAKEN
IN LIMITED MARKETS.

FULL

NONE

IV. LATER GROWTH

STRUCTURED
MANAGEMENT.
LONG-TERM FINANCING,
AND FACILITIES PLANNING
ARE ESTABLISHED.

DECLINING

PARTIAL

V. STABLE
ENTERPRISE

WITH BIGGER RESOURCES,

RECURRING SALES AND
PROFITS, SELLING IS
UNDERTAKEN IN BIGGER
MARKETS.

NONE

FULL

IDENTIFY AND SEIZE

OPPORTUNITY

COMPETITOR IS
UNAWARE

STEP2

ASSEMBLY RESOURCES

COMPETITOR SLOWLY
BECOMES AWARE

STEP
3

START OPERATION

COMPETITOR BECOME
FULLY AWARE

EXPAND OPERATION

COMPETITOR MAKES
DECISION TO
OPERATE

MAXIMIZE PROFITS

COMPETITOR STARTS
OPERATION

MEET COMPETITION

COMPETITOR SHARES
IN INDUSTRY PROFITS

STEP1

STEP4

STEP5

STEP6