The document discusses the entrepreneurial personality and what traits are needed to be a successful entrepreneur. It defines personality and the entrepreneurial personality. Some key traits of entrepreneurs mentioned include drive, thinking ability, risk-taking, and innovativeness. The document also explores how environment and culture can influence the development of an entrepreneurial personality.

1. ‘-
1
THE
ENTREPRENEURIAL
PERSONALITY

2. ‘-
2
Individual persons possesses their own distinct
personalities. There may be as many type of
personalities as there are needs for them. Edouard
Spranger, a noted German psychologist, classifies
people according to what values they believe are
most important to them:
1. theoretical
2. economic
3. political
4. aesthetic
5. social, and
6. religious

3. ‘-
3
Spranger insinuates that the person with
values classified as “economic” most fits
job meant for those with business
inclinations. The description, however ,
provides only general guidelines to
students of entrepreneurship.

4. ‘-
4
PERSONALITY DEFINED
Personality , according to Mitchell is the “individual’s internal organization
of psychological processes and behavioral tendencies.”
Hersey and Blanchard define personality as the “the sum of habit patterns
or conditional responses to various stimuli an individual develops as he
matures and as perceived by others.”
Personality, as defined by Bootzin and others, refers to “the differences
among people plus the stability of any individual’s behavior over long
periods.”
According to Schultz, personality is “the unique and relatively enduring
internal and external aspects of an individual’s character that influence
behavior in different situations.”

5. ‘-
5
The definitions insinuate that personality cannot
be changed overnight to fit a certain situation. This
is because of the requirement of “stability of
behavior over long periods.” This conclusion is
important because it guides us in making the
necessary adjustments in training future
entrepreneurs.

6. ‘-
6
THE ENTREPRENEURIAL PERSONALITY:
A DEFINITION
The personality of the entrepreneur is unique and is different from the personality requirements of
other occupations.
The entrepreneurial personality may be defined as the sum of habit patterns or conditioned
responses to various stimuli required for a successful career in entrepreneurship.
Internal Aspects Character of Individual External Aspects
Behavior in Influencing
Different Situations
Over long periods Exhibited
PERSONALITY Equals

7. ‘-
7
CHARACTERISTICS OF ENTREPRENEURS
Aware of economic and social wastages arising from the wrong choice of careers, experts
have attempted to identify characteristics common to successful entrepreneurs. They have
concluded that the following traits must be considered: they must..
1. have the drive;
2. posses sufficient thinking ability;
3. have human relations ability;
4. have the ability to communicate;
5. have technical knowledge;
6. be reasonable risk takers;
7. be self-confident;
8. be goal setters;
9. be accountable; and
10. be innovative

8. ‘-
8
DRIVE
Persons with drive are those identified as willing to accept responsibility, possess vigor,
initiative, persistence, and health. Drive is very important entrepreneurial trait because of
the possibility of failure in every attempt to achieve certain goals . If a chosen way to
reach a goal is not successful, the entrepreneur must find another way to reach it, even if
it precedes a succession of failed attempts. This will require a lot of drive from the
entrepreneur.
THINKING ABILITY
Solutions to entrepreneurial problems are oftentimes arrived at with the use of the
intellect. Innovations in whatever form will require superior thinking ability.
Problems in entrepreneurship are not often apparent. So, skills in abstract thinking and
the use of creative means to handle difficulties are very important traits of the
entrepreneur.

9. ‘-
9
HUMAN RELATIONS ABILITY
The objective of any business, big or small, is to drive some profit by satisfying some
needs of the customers. To achieve this, the entrepreneur oftentimes needs the
assistance of employees. Since the entrepreneur cannot avoid dealing with people either
as customers or employees , he must have sufficient human relations skills to effectively
motivate customers to buy and employees to work.
Customer require some attention and kind words whenever they transact business with
the entrepreneur.
COMMUNICATIONS ABILITY
There are many instances where the action solicited from either customers or employees
could not be realized because neither of them could comprehend what is required by the
entrepreneur. Oftentimes, the ability to communicate resolves the problem.
The entrepreneur will need all his skills in communication to get through many of his
difficulties.
.

10. ‘-
10
TECHNICAL KNOWLEDGE
Refers to the various skills needed to perform the job of the entrepreneur. He is expected
to know, for instance, the equipment and facilities required before the actual
commencement of operations.
Those assisting the entrepreneur will need some assurance and directions in the day-to-
day operations. The lack of technical knowledge on the part of the entrepreneur will
seriously hamper the fluidity of movements and decision-making.
The following are only some of the skills he is expected to possess;
1. Preparation of a sales invoice;
2. Nuances of encashing a check;
3. Determination of pay rates applicable to employees;
4. Finding suitable sources of supply;
5. Negotiating a loan with a bank, and;
6. Determination of the most qualified applicant for a job

11. ‘-
11
REASONABLE RISK-TAKERS
Risk is something we cannot completely get off our back. Risks can be managed, however.
There are those that can be met head-on, while there are those that can be ignored. Taking
a risk, however, does not mean one will surely lose. In the first place, it must be determined
whether or not the risk is well worth it.
The possible outcome of any venture may either be success or failure, profit or loss. A
scientific way of determining the chance of winning or losing makes the difference.
Theoretically, ventures with zero risks oftentimes yield zero benefits. Those who will prefer
to have benefits will have to reckon with the risk of losing. There is a need , therefore, to
calculate a reasonable trade-off between risk and benefits.
Entrepreneurs are expected to be reasonable risk-takers , not conservative but also not
gamblers. They accept risks but only after they are convinced that they have the skills to
overcome the difficulties inherent in a venture.

12. ‘-
12
Risk Taker Level of Expected Level
Risk Taken of Benefits
1. Salaried employee low low
2. Entrepreneur moderate moderate
3. Gambler high high
Personality and Risk-Taking
SELF-CONFIDENT
Confidence in one’s ability to achieve can do a lot of wonders to a person. This
condition is highly important in any economic undertaking, especially
entrepreneurship.

13. ‘-
13
GOAL SETTER
Goal setting is one of the activities necessary for successful entrepreneurship. Before a
goal is achieved, it must be set first. Goal setting provides direction to the entrepreneur
One who is a goal setter provides a glimpse of the orderliness of that person’s thinking
process.
ACCOUNTABLE
Accountability refers to the responsibility for results. An entrepreneur must be willing to take
the blame or accept honor fro whatever happens to his venture. In this manner, be can
expect compliance from his subordinates.
INNOVATIVE
When competition becomes too tough, innovation will save the entrepreneur. When the
market becomes too sluggish, innovation will stir it up to the benefit of the entrepreneur.
Being innovative may be the only wat the entrepreneur can achieve the following:
1. penetrate the target market;
2. reduce manufacturing cost;
3. increase productivity;
4. shorten delivery routes, and
5. synchronize production output with demand.

14. ‘-
14
Before an enterprise becomes stable, it has to pass through several stages: from
prestart-up to stable enterprise. The first three stages will require entrepreneurial skills
for the firm to get along. The last two stages requires the skills of the manager.
A major distinctions between an entrepreneur and a manager is about orientation. The
entrepreneur (also alternatively called promoter) feels confident of his or her ability to
seize a business opportunity regardless of the resources under current control. The
manager (also alternatively called the trustee) emphasizes the efficient utilization of
resources.
THE ENTREPRENEUR AND THE MANAGER
DISTINGUISHED

15. ‘-
15
Eminent psychologist indicate that apart from heredity, environment plays a very significant
influence in the personality of an individual. He is affected by his family, his neighborhood,
school, community, and nation.
It is not uncommon for a family engaged in business to produce children who will later
become entrepreneurs. As education begins at home, the business-oriented family a
definite advantage in educating their children to become entrepreneurs. A farming family
does not have such advantage.
The farming family, however, can make remedies to achieve the same end as the business-
oriented family. The chance of success, however, gets smaller as the individual grows older.
ENVIRONMENT AND HOW IT AFFECTS THE
FUTURE ENTREPRENEUR

16. ‘-
16
A requisite for personality is that certain traits or reactions to events must be conditioned by
long periods pf exposure. It is, therefore, very difficult for a person lacking the personality
requirements fro entrepreneurship to have it at short notice.
If a future entrepreneur develops the required personality traits before adulthood, so much
the better. Otherwise, he will have to be exposed to a rigorous behavior modification
scheme to catch up with lost time.
Different cultures heavily affect the personality traits of individuals. Among these cultures,
there must be one that will fit the right background for developing entrepreneurial
personalities.
HOW FILIPINO CULTURE AND
ENTREPRENEURSHIP FIT

17. ‘-
17
Studies indicate that the overseas Chinese, in general, provide a family orientation
conducive to developing entrepreneurship traits among children. This is bolstered by
the presence of many successful Chinese entrepreneurs in the commercial centers
throughout the country.
There are reports that people of varied nationalities when pressured to leave their
homelands, succeed in various entrepreneurial undertakings. An example are the
Cubans who were forced to flee their country when Fidel Castro came to power.
Many of them settled in Florida and quite a number became successful
entrepreneurs.

18. ‘-
18
STAGE ACTIVITY ENTREP- MANAGER’S
RENEUR’S INVOLVE- INVOLVEMENT
MEMT
1. Prestart- Questions the feasibility of an
up idea, product, or services, etc. full none
2. Start-up Forming the business, generating
necessary capital, purchasing
facilities and equipment, building
prototype products, testing market full none
3. Early growth Selling to limited markets with
limited resources full none
4. Later growth Establishing structured management,
long-term financing, facilities planning declining partial to full
5. Stable enterprise Selling to bigger markets with bigger
resources, recurring sales and profits none full
The Entrepreneur Task vs. The Manager’s Task

19. ‘-
19
COMPLEMENTARY ROLES OF THE
ENTREPRENEUR AND THE MANAGER
ENTREPRENEUR’S TURF MANAGER’S TURF
STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6
BUSINESS Identify and Assemble Start Expand Maximize Meet
ACTIVITY seize opportunity resources Operation Operation Profits Competition
COMPETITOR’S Competitor Competitor Competitor Competitor Competitor Competitor
unaware slowly becomes becomes decides starts shares in
aware fully whether to operation industry profit
aware replicate
ACTIVITY or not

20. ‘-
20
The Ways to Entrepreneurial Personality
THE
INDIVIDUAL
RIGHT
FAMILY
ORIENTATION
TECHNICAL
TRAINING
ENTREPRENEURIAL
PERSONALITY
WRONG
FAMILY
ORIENTATION
RIGOROUS
BEHAVIOR
MODIFICATION
SCHEME
TECHNICAL
TRAINING

21. ‘-
21
Some of the desirable characteristics of entrepreneurs that re known refer to: drive,
thinking ability, human relations ability, communication ability, technical knowledge,
risk-taking, self-confidence, goal setting, accountability, and innovativeness.
The entrepreneur and the manager differ in many ways. Most important is the
belief of the entrepreneur in his ability to seize business opportunities regardless of
the resources under his current control. The manager, in contrast, emphasizes the
efficient utilization of resources.
A very important factor in the development of the personality of an individual is
environment. One who did not experience the required influence must be provided
with one, if that individual wants to successfully engage in a particular undertaking.
Although people varied cultures exhibit entrepreneurial tendencies, Filipinos
possess certain character traits favorable to entrepreneurship.

22. ‘-
22
An article attributed to the University of the Philippines Institute for
Small Scale Industries says that there are certain cultural values of
the Filipinos favorable to entrepreneurship. These are the following:
1. pakikipagkapwa (human relations)
2. hiya (loss of face)
3. pakikisama (togetherness)
4. pakikibagay (adjusting or adapting to other people)
5. malasakit (concern)
6. utang na loob (gratitude)
7. amor propio (self-esteem)
8. bayanihan (cooperative spirit)
9. kasipagan (industriousness)
10. pagkamatipid (frugality)
11. mapagtimpi (has self-control)
12. matapat (honest)

23. ‘-
23
SUMMARY
An entrepreneur, to be successful, must possess the right personality
required for successful entrepreneurship.
Personality refers to the expectation that an individual will respond
to a situation not much different from what he has done for a long
period.
Entrepreneurial personality refers to that type of personality
necessary for a successful career in entrepreneurship.