ENTREPRENEURSHIP II

ENTREPRENEURIAL CHARACTER TRAITS

Definition

• Character trait refers to attributes that differentiate entrepreneurs from ordinary small business owners.

• There is no exhaustive list that guarantees entrepreneurial success; however, character traits and competencies are crucial to success.

Key Factors in Entrepreneurial Success

• Ten characteristics grouped into three major clusters:

  1. Achievement cluster

  2. Planning cluster

  3. Power cluster

Achievement Cluster

• Traits related to the entrepreneur’s aspiration for excellence.

• Entrepreneurs do not accept mediocrity; they strive for high-quality outcomes.

• Traits include:

  1. Opportunity-seeker:

     • Ability to identify and evaluate business opportunities.

     • Quickly seize viable opportunities.

     • Acts on new opportunities related to financing and resources.

  2. Committed:

     • Displays full commitment to projects and responsibilities.

     • Accepts responsibility for promises to customers and prioritizes satisfaction.

     • Goes beyond basic requirements, ensuring quality outputs.

  3. Persistent:

     • Overcomes challenges and learns from failures.

     • Takes repeated actions to achieve goals.

     • Resists quitting and maintains focus on objectives.

  4. Risk-taker:

     • Embraces uncertainty and takes calculated risks.

     • Different levels of risk-taking:

       • Aggressive risk-takers: Fearless in business situations.

       • Moderate risk-takers: Analyze before acting.

       • Conservative risk-takers: Prefer stability over risk.

  5. Efficient and Quality-oriented:

     • Values efficiency in production while maintaining high quality.

     • Aims for minimal costs without sacrificing product standards.

     • Strives for zero defects in goods and services.

Planning Cluster

• Characteristics that align with success traits in the achievement cluster.

• Entrepreneurs start their day with a plan and review it periodically.

• Traits include:

  1. Goal-setter:

     • Sets clear, specific short- and long-term goals based on the SMART principle (Specific, Measurable, Achievable, Realistic, Time-bound).

  2. Information-seeker:

     • Seeks data to inform decisions, often overcoming limitations in information availability.

     • Validates information from diverse sources, including expert opinions.

  3. Systematic in Planning and Monitoring:

     • Adopts a logical approach to planning and monitoring activities.

     • Utilizes a step-by-step process for planning and evaluation; planning is preventive while monitoring is corrective.

Power Cluster

• Traits that reflect interpersonal relations in the business community.

• Importance of maintaining relationships with stakeholders:

  • Suppliers, customers, financial institutions, government bodies, competitors, employees.

• Traits include:

  1. Persuasive and Positive Networker:

     • Establishes and maintains strong networks through good communication skills.

     • Uses positive influence rather than bribery to build relationships.

  2. Self-confident:

     • Possesses high self-esteem and trust in abilities.

     • Projected self-confidence is built over time through experience.

BUSINESS PLAN PREPARATION

Importance of a Business Plan

• Assembles ideas and information to guide starting a business.

• Aids in decision-making:

  1. Determines if starting a business is wise.

  2. Organizes thoughts for running the business effectively.

  3. Serves as a tool to attract investors or secure loans.

Feasibility Study vs. Business Plan

• Feasibility Study:

  • Analyzes potential success factors of a project.

  • Evaluates all relevant factors pre-business plan.

• Business Plan:

  • Details how to achieve business goals post-decision.

Need for a Business Plan

• Serves as a roadmap, integrating multiple perspectives (entrepreneur, customers, creditors, employees).

• Must include key information like objectives, funding sources, and organizational structure.

MAJOR PARTS OF THE BUSINESS PLAN

1. Introduction:

• General perspective of the business (name, description, owners, location, funding).

2. Executive Summary:

• Concise overview of the entire business plan.

3. Environmental Analysis:

• Assessment of external factors affecting the business.

4. Business Description:

• Overview of products/services and business mission.

5. Organizational Plan:

• Structure of the business and team roles.

6. Production Plan:

• Detail regarding manufacturing and operational processes.

7. Operation Plan:

• Daily business operations and management strategies.

8. Marketing Plan:

• Strategies for reaching target customers and promoting products.

9. Financial Plan:

• Breakdown of financial projections and funding requirements.

10. Appendix:

• Supplementary materials and documents supporting the plan.

Introduction (7) following sections:

Proposed Name of the Business

• Business name should reflect identity and attract target consumers.

Description of the Business

• Should include product/service type and business goals.

Potential Worth to the People and Community

• Benefits of the business outlined clearly to attract investment.

Location of the Business

• Strategic location decision based on competitive advantage.

Name of the Owner

• Clearly states ownership structure and responsibilities.

Funding Requirement and Source

• Details about startup costs and potential funding sources must be included.