TWO COMPLEMENTARY FACTORS THAT DETERMINE SUCCESS OR
FAILURE IN AN ENTREPRENEURSHIP
1. ENVIRONMENT 2. PERSONALITY OF
1.THE ENVIRONMENT AS A FACTOR
An entrepreneurship will survive and grow in an
environment that is friendly. Nature provides us with
examples of what happen to entities living in certain
For instance, giant clams thrive in the ocean, but not
in the river.
THE ENVIRONMENT AS A FACTOR
The coconut palm will grow in the Philippines but not in
Sweden. These are so because giant clams were designed by
nature to survive in salt water, and fresh water river will be
hostile to it because it is not its natural habitat. Coconut
trees grow naturally in the tropics and because Sweden has
a cool, temperate climate, they will not survive there.
THE ENVIRONMENT AS A FACTOR
In the same light, entrepreneurship will survive and grow in
economic environments of free enterprise. Full blooming
entrepreneurships cannot be expected to flourish in
economics that are not fully supportive of free enterprise.
THE ENVIRONMENT AS A FACTOR
In terms of support to entrepreneurships, economic environments differ
from place to place. To facilitate discussion, economic environments may
be classified as follow:
1. Fully supportive of entrepreneurships;
2. Moderately supportive of entrepreneurships; and
3. Not supportive of entrepreneurships.
Economies that fully support entrepreneurships make it easy for
entrepreneurs to succeed. The exact opposite may be expected in
economies that are not supportive of entrepreneurships.
2.THE ENTREPRENEUR’S PERSONALITY
Every person has a personality that is unique and different
from others. Each personality types has a corresponding
type of job that fits it. A certain personality, however they fit
in more than one type of job, although the level of fitness
will be different with each job.
A given personality, for instance, may perfectly fit the
entrepreneur’s job, moderately fits the teacher’s job, but not
fitted for the engineer’s job.
Refers to the pattern of characteristics that
distinguishes one person from another. It includes
the person’s trait, values, motives, genetic
blueprints, attitude, abilities self-image, intelligence,
and visible behavior.
CHARACTERISTICS OF ENTREPRENEURSHIPS
Successful entrepreneurs possess certain characteristics that are
unique and different from those having other occupations.
1. Drive 6. Reasonable Risk Taker
2. Thinking Ability 7. Self-confident
3. Human Relations Ability 8. Goal Setter
4. Ability to Communicate 9. Accountable
5. Technical Knowledge 10. Innovative
Success in entrepreneurship become possible when the
entrepreneur is self-motivated enough to pursue his chosen
course without relenting even in the face of adversity.
Reaching a goal, however, is often achieved through a
series of moves. It is rate for entrepreneurs to succeed with
just a single stroke. If he fails in his first attempt, he make
another attempt. He repeats the attempts, maybe with
some improvements, until he succeed. This will happen if
the person has drive. The tension that occurs when a need
is not met is called drive.
2. THINKING ABILITY
The entrepreneur’s job involves solving problems and making
decisions. When he finds the correct solution to problems that
confront him and then make decisions that are implemented,
he comes closer to realizing his goal.
For example, the entrepreneur is asked to make the final
decision in the promotion of vice president of one of three
qualified managers, he need to use his thinking ability and
that ability must be sufficient to guide him to make the best
3.HUMAN RELATIONS ABILITY
Three types of person will determine the survival and growth of
business firms (1) the customer (2) the employee (3) the third party
with interest in the firm.
The customer makes the decision whether to patronize the firm or
The employee can be productive and loyal to the firm.
The third party with various interests regarding the firm can also
be made to be more cooperative and accommodating.
4. ABILITY TO COMMUNICATE
Communication skill is a very important characteristics an
entrepreneur must have if success is expected. The ability
to understand and be understood to makes. It easier for
the entrepreneur to transact business with customers,
bankers, and government officials.
5. TECHNICAL KNOWLEDGE
Operating an entrepreneurship requires the performance
of major and minor tasks. In running a restaurant, for
instance, important tasks may include the following:
recruitment of personnel, purchasing of materials,
bookkeeping, sanitation, cashiering, cooking and others.
The restaurant entrepreneur must at least be familiar with
and possess some technical knowledge about how the
various tasks are performed.
6. REASONABLE RISK TAKER
When a person starts a new venture, he has already begun
to assume the risk of business failure. Entrepreneurs,
however, normally do not assume unreasonable risks.
Entrepreneurs are expected to be reasonable risk-takers, not
conservative but also not gamblers. They assume risks but
only after they are convinced that they have the skills and
resources to overcome the difficulties inherent in a new
A person cannot achieve much unless he has sufficient
confidence in himself. In any undertaking, including
entrepreneurship, a person’s belief in his ability leads him
to actual performance and eventual success. When a
person has self-confidence, he does his job without
8. GOAL SETTER
Goals are very useful motivational tool, especially those related to
accomplishing the objectives of entrepreneurs. A goal performs
the following functions:
1. It directs one’s attention to a specific target
2. It encourage one to exert effort toward achieving something
3. It encourage persistence
4. It fosters the creation of strategies and action plans.
The success of an enterprise will depend much on the
willingness of subordinates to comply with the wishes of
entrepreneur. Compliance can be expected to the
entrepreneur is accountable enough to take responsibility
for whatever happen to the firm.
Innovation is important in entrepreneurship.
Innovation doesn't always mean to create something new:
innovators often take something that already exists,
improve it, change it, make it better and make it the best
for their customers.
Innovative ideas are what will make a startup competitive.
WHAT MOTIVATES PEOPLE TO BECOME ENTREPRENEURS?
1. Desire to be One's Own Boss
2. Desire for Financial Rewards
3. Desire to Create One's Own Job Security
4. Desire to Improve One's Quality of Life
ENTREPRENEUR AND MANAGER DISTINGUISHED
The terms "entrepreneur" and "manager" are sometimes
used interchanged. Although both jobs are useful to the
economy, each performs distinct functions.
A major distinction between the two is about orientation.
The entrepreneur (promoter) feels confident of his ability to
seize a business opportunity. The manager (trustee)
emphasizes the efficient utilization of resources.
Factors- is something help or produce or influence a result.