Charecteristics of Successful Entrepreneurs

Charecteristics of Successful Entrepreneurs

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Key Terms


  • Term applied to a personality who is willing to do a new venture/enterprise + takes responsibility for the outcome.


  • Capacity to lead, guide and show direction

Calculated risks:

  • Risk decisions based on a careful comparison of risks against rewards expected from a decision..


  • New ideas bought to the market

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Key Terms


  • An experienced advisor, to be there when needed.

Social entrepreneur:

  • Those who use their business skills to try and make the world a better place.
  • E.g. FareShare


  • Rules or standards governing the conduct of a business
  • Moral code. What is right and wrong.

Amoral firm:

  • Sets to win at all costs, has no morals

Responsive firm:

  • Accepts that being ethical can pay off.
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Ethically engaged:

  • Wants to be ethical, but isn't fully integrated into their business culture.

Ethical firm:

  • Ethics are core value and permeate the organisation
  • Creates tensions between stakeholders, as they want different things. E.g. Shareholders want as much profit as possible so will want to be unethical, employees want a secure job, local community does not want pollution etc.
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  • Leadership=Show what to do
  • Management=Tell what to do

6 key qualities of leadership

  • Integrity- always behaving in a way that is consistent with your core values
  • Dedication-hard working and committed to achieving your goals.
  • Magnanimity-gracious in defeat, but happy to acknowledge the success of others.
  • Openness- ensuring that no secrets are kept between different cliques, and being open to new ideas.
  • Humility-not getting carried away with success and not showing arrogance.
  • Creativity-finding new ways around old problems
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Leadership Styles


  • Strict discipline
  • Giving orders
  • Old fashioned e.g. Army
  • Tall structure (Many layer of management)


  • Controlled
  • Done how you want
  • Higher productivity and efficiency


  • Fear
  • High absenteeism and high staff turnover= Increased costs
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Leadership Styles


  • Still autocratic
  • Employees are seen as an asset to the company.
  • Employer supports their employees
  • "Father figure"


  • Higher morale
  • Higher productivity
  • Still has good control


  • May be too relaxed
  • Perhaps low morale due to no consultation
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Leadership Styles


  • Employees are involved in decision making
  • Consult employees, but decision is still at the top.
  • Could scapegoat employees if things go wrong.


  • Motivation increases
  • Less absenteeism


  • Can cause tension
  • Decision making takes longer
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Leadership Styles

Laissez Faire:

  • Where employees are left to their own devices
  • Does depend on the type of business. E.g. Creative individuals
  • Might not work in TNCs.


  • Employees are almost in charge
  • Independent
  • Lower costs


  • Distraction
  • No shaped vision
  • No control
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Charecteristics of Entrepreneurs


  • Need to be able to bounce back from a bad decision
  • Otherwise you may not be able to profit


  • Without it you may fall behind a competitor
  • Looking for market niches
  • Take control of bad situations
  • Getting the product into the market


  • Need to create a unique product with a USP
  • Need a diffentiated product
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Charecteristics of Entrepreneurs

Self Confident

  • Believe in your own abilities
  • Respect
  • Must have self confidence, otherwise they won't be able to expand

Take calculated risks:

  • Research it
  • Respect it
  • It will help the business grow
  • Have a sense of danger
  • Need to calculate it properly, otherwise it may be stupid

Hard Working:

  • Dedication and meeting deadlines
  • Long hours and employ less people
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FareShare: A Social Enterprise

  • Buys or takes food from industries that would otherwise send it to landfill
  • 12 depots
  • Relies on donations and volunteers
  • Combats food wastage in the process
  • Gives the food to disadvantaged people.
  • Is a registered charity and makes no profit
  • In 2009/2010 FareShare distributed 6.7 million meals
  • Every day 29,000 people benefit
  • Redistribution of food also helped reduce CO2 emissions
  • Redistributes 20,000 tonnes of food
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Maslow's Hierarchy of Needs

Most desired:

  • Self actualization: Realising your full potential
  • Esteem: Others respecting you, being part of a successful company, confidence, achievement.
  • Love/belonging: To feel accepted, trusted and supported/ a sense of belonging.
  • Safety: To be protected against events that could damage the individual. Safe from dismissal.
  • Physiological needs: Food, water, shelter, good working conditions. Basic needs.

Basic Needs

  • Motivating factors: Sense of achievement, chance of promotion, responsibility, nature of the job itself, recognition, training.
  • Demotivating factors: Pay, working conditions, company policy, fear of redundancy, feelings of inadequacy.
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McGregor's X&Y Theory

Theory X manager believes that the average worker:

  • dislikes work
  • seeks to avoid work
  • must be forced to work.
  • must be controlled and threatened
  • seeks to avoid responsibility
  • isn't ambitious

Theory Y manager believes that the average worker:

  • will seek and accept responsibility
  • set themselves targets
  • don't dislike work
  • can be creative
  • seek their potential
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McGregor's X&Y Theory

Theory Y Response:

  • more democratic leadership
  • share responsibility
  • delegation
  • use of quality circles
  • development of communication skills

Theory X Response:

  • Autocracy
  • No consultation
  • Piece rates
  • No training
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