Personality traits of an entrepreneur depend on number of factors. There have been various researches and studies in order to understand these factors and the relationship between these factors and entrepreneur personality traits and characteristics. Personality and behavioral factors, environmental factors, action factors, social and cultural factors and political and legal factors impact the personality and characteristics of entrepreneur (Bolton & Thompson; 2000, Hayton, J C, Salvato, C and Zahra S A; 2004, Lumpkin, G. T. & Dess, G. G. ; 1996, Sandberg, William R. 1992). According to Robinson and Sexton (1994 as cited by Crant, 1996) from a sample of over 181,000 people culled from the 1980 U. S. Census indicated that education is positively related to entrepreneurship and self-employment. In another study conducted by Crant (1996) the research established relationship between the demographic factors like age, sex and family background and entrepreneurship.
According to the results of these studies young people are more likely to get into entrepreneurship than people of old age, numbers of males aspiring for entrepreneurship was more than females and people with business family background are more likely to get into entrepreneurship than others. The family support in financial and psychological matters strengthens the efforts towards achieving his goals. Entrepreneur while using family finances for his business becomes more vigilant and careful to the risks and returns.
Social and cultural set up is very important in entrepreneurship. According to Barney, Clark, & Alvarez (2003 as cited in Hayton, Salvato and Zahra, 2004) “Furthermore, the kinship-ties that are unique to family firms are believed to have a positive effect upon entrepreneurial opportunity recognition. ” In the same work of Hayton, Salvato and Zahra (2004) it is quoted that “Owner managers also understand that their family firms’ survival depends on their ability to enter new markets and revitalize existing operations in order to create new businesses (Ward, 1987).
In the work of Covin and Miles, (1999) they mentioned the observations of Burgelman, Kosnik, and van den Pol (1988) which refers to the introduction of a new product, process, technology, system, technique, resource, or capability to the firm or its markets. According to Covin and Miles (1999) entrepreneurs can be characterized by their bypass strategies and product market pioneering strategies. While the level of aspirations is partly determined by the level of skills, it is also affected by the values and personality traits of the entrepreneur (Hollenbeck & Whitener, 1988; March & Simon, 1958).
March & Simon (1958) also postulated that environment (context) affects aspirations. (Harron and Sapienza, 1992) Harron and Sapienza, (1992) suggested a model which determines interaction between personal values and context and personality traits and context. Numbers of studies have been conducted to understand entrepreneur process and develop a conceptual frame work around it. Krueger and Brazeal (1994 as cited by Crant, 1996) studied entrepreneurial potential whereas Naffziger, Hornsby, and Kuratko (1994 as cited by Crant, 1996) studied entrepreneurial motivation.
These studies have provided base to other studies conducted to develop conceptual framework and models of entrepreneurial personality traits and characteristics. As cited by Moon (1999) “Risk-taking here is a strict managerial term discussing the propensity for organizational change and innovative decision-making. ” The interview revealed that Paul defines entrepreneurs with their risk taking opportunity exploiting abilities. This is one of the characteristics of personality of an entrepreneur.
Paul’s statement support Moon (1999) view regarding risk taking and decision making behavior. Paul appears to be aggressive in his tone and enthusiastic about his work. His risk taking ability is backed by the calculative measures and market studies as he says “I see the risks that I take being very calculated and not designed to lose money”. Paul utilizes marketing tools for promotion and increase the visibility of his products. In his statement he says “we’re probably the biggest and we see ourselves as market leaders rather than followers”.
He converted his hobby into his business. This was an area where he has knowledge as well as interest. He is a well educated person. He has gained experience prior to starting his own business. He gives importance to the support he receives from his social system; family and friends. He is persistence with his work, has good planning skills and organized in his work. He is quick in his responses and provides immediate feedback to any kind of change in market place or within their organization.
His energy levels and enthusiasm are high. He is very independent and goal oriented. He has a vision and goal and he works in order to achieve his goals. He is very committed to his work. He takes personal initiatives to achieve his objectives. He is very competitive. This can be inferred from his statement that “we are probably the biggest and we see ourselves as market leaders rather than followers. ” He constantly looks for market opportunities and goals.