Successful entrepreneurs possess several key characteristics and competencies. Some of the most important include a strong work ethic and achievement motivation to overcome challenges. They also demonstrate optimism, independence, foresight, and innovative thinking. Entrepreneurs must have strong organizational abilities to coordinate resources and make strategic decisions. Mental abilities like intelligence, creativity, and effective communication are also crucial traits of successful entrepreneurs.

1. Characteristics of an entrepreneur
• An analytical study on the successful entrepreneurs like Tata, Birla,
Kirloskar, Dalmia and others reveals that they all had a humble
beginning leading them up to great heights.
• The success or failure of a small enterprise mainly depends on
personal abilities of the entrepreneur.
• A successful entrepreneur must possess certain important qualities.
• The most important characteristic of an entrepreneur is his
achievement motivation. All other characteristics emanate from this
achievement motivation. Some of the important characteristics of an
entrepreneur are:

2. • Hard work: The success or failure of an entrepreneur mainly depends
on his willingness to work hard. It is the most distinguishing
characteristic of a successful entrepreneur. An entrepreneur’s tireless,
tedious and laborious work will enable him to lead his business to
success even at unfavorable situations.
• Desire for high achievement: Achievement motivation is the single
most factor that determines the success of an entrepreneur. Strong
desire to achieve high goals in business will help the entrepreneur to
develop his business empire. The achievement motive enables him to
overcome the obstacles and anxieties, to encounter misfortunes, to
devise remedial actions and to run the business successfully.

3. • Optimism: Successful entrepreneurs are not anxious or worried about
problems faced by them in the present. They are optimistic and think that
the situations will become favorable to business in the future. This
optimistic approach will result in the effective management of the
enterprise.
• Independence: A successful entrepreneur does not like to be guided by
others. He should have his own ways and means of performing things. He
should be independent in matters related to business.
• Foresight: An entrepreneur must have the ability to foresee the future
changes in the business environment. He must be vigilant with regard to
the changes that are taking place in the market such as consumer
attitudes, technological changes, demand and supply gaps.

4. • Organizing ability: An entrepreneur should possess organizing
capacity. He should have the ability to mobilize the factors of
production – land, labor and capital – required for starting an
enterprise and then to produce the goods. The fortune of an
enterprise mainly depends on the organizing abilities of the
entrepreneur.
• Innovative skill: Every business firm is set up to cater to the needs of
consumers: so the production will be consumer oriented. For this, the
entrepreneur has to evaluate the changes in the tastes and
preferences of the consumers from time to time. He must conduct
research and innovative activities with a view to producing goods to
satisfy the consumer’s changing demands for the products.

5. • Mental ability: An entrepreneur should possess intelligence and
analytical mind to evaluate the business situation for making
innovations
• Ability to guard business secrets: Business secrecy is one of the
fundamental aspects of a successful business. Disclosure of business
secrets will favor the rival firms.
• Decision making: For running a business, a number of decisions are to
be taken. In order to take decisions, the entrepreneur should have the
capacity to analyze the various aspects of business.

6. • Ability to maintain human relations: An entrepreneur has to deal with
a number of persons like customers, suppliers, govt. officials,
employees etc. He should be tactful in dealing with them or else it
will affect the reputation of the business.
• Initiative and risk bearing: He should have the initiative and drive to
venture into new areas and to accept responsibility. Entrepreneurs
should also possess the caliber to take the risks associated with his
business. Profit is his reward for taking the risk.

7. Entrepreneurial competencies
• For the successful completion of any job, the organizer should
possess certain special qualities. These qualities area known as
competencies or traits.
• The major competencies are,
• Knowledge: It means the collection and retention of information in one’s
mind. Knowledge is necessary for performing a task, but is not sufficient. A
person with knowledge can describe things to others, but mere description
will not enable the listener to perform a job. For example, one can acquire
knowledge in football by reading books regarding the rules of football or by
any other means, but it does not mean that he can he a good football player.
Knowledge is only one aspect of performing things. In order to be successful
one needs to have the skill to translate the knowledge into practice.

8. • Skill : Skill means the ability to practice knowledge. As in the above
example, knowledge regarding football can be acquired by reading,
talking etc. But the skill to play football can be acquired only through
practice. i.e., playing the game a number of times. Both knowledge
and skill are required to perform the task.
• Motive: Motive is an urge to achieve the goals. This achievement
motivation directs a person to perform his duties in a better manner.

9. Entrepreneurial traits
• Mental ability
• Consist of intelligence and creative thinking. Entrepreneur should possess the
ability to analyze problems to find out solutions.
• Clear objectives
• Without objectives, an entrepreneur cannot succeed.
• Guarding business secrets
• Leakage of business secrets is a serious matter. So entrepreneur should be
vigilant while selecting his employees.
• Effective communication
• Ability to mobilize resources

10. • Technical knowledge
• Risk-bearing capacity
• Looking for opportunities
• Persistence
• Self confidence
• Hard working mentality
• Leadership
• Effective strategist
• Willingness to change