Introduction
The prevailing literature asserts that the entrepreneurial character of a person or society is influenced by a myriad of demographic, environmental and personal factors (Hisrich, Peters and Shepherd, 2013, p. 24). The demographic factors impacting on the enterprising behaviour include gender, personal and family background, and the person’s early experiences. Scholars have identified several personality traits that affect people’s aspirations to pursue self-employment (Harris and Gibson, 2008, p. 49). Such characteristics include locus of control, risk-taking propensity and the desire for achievement.
Demographic Background
The family, particularly, the parents, play the most prominent role in making entrepreneurship desirable and credible. Research shows that offspring whose parents own and run small businesses have a high preference for self-employment (Hisrich, Peters and Shepherd, 2013, p. 29). Conversely, persons raised in an environment where parents have careers in organizational employment have a low preference for entrepreneurial ventures. Scholars also report the existence of a statistical relationship between past work experience in entrepreneurial firms and the desire to start a business enterprise (Harris and Gibson, 2008, p. 12). Past entrepreneurial experience has been found influential in cultivating interest in self-employment. Some scholars also ascribe innovative attitude to gender. There exists a substantial difference between females and males in their desire for self employment. Males have a higher inclination to entrepreneurial ventures than females. Nevertheless, a study conducted in Russia found family background and sex not to have an impetus on the desire to venture into self employment (Hisrich, Peters and Shepherd, 2013, p. 98).
Education and Entrepreneurship
Business and entrepreneurship scholars argue that education aids entrepreneurship. It nourishes individuals with competencies that are imperative for success (Harris and Gibson, 2008, p. 49). Competencies provided by education include the ability to identify and acquire resources, planning, technical skills and innovativeness. Many successful entrepreneurial ventures owe their success to the entrepreneur’s level of education. For instance, in technical industries a certain level of education is a prerequisite for success. The nature of the business determines the level of education need for success to be achieved (Hisrich, Peters and Shepherd, 2013, p. 139).
Personal Characteristics of an Entrepreneur
The need for achievement is among the powerful psychological determinants of entrepreneurial behavior. Persons with a strong desire for achievement exhibit passion for success, and are, therefore, likely to prefer entrepreneurial ventures. In addition, a strong need for success elicits innovation, the desire to set and pursue personal targets and solve problems by oneself (Harris and Gibson, 2008, p. 61). A person’s risk-taking attitude is exemplified in pursuing uncertain decision-making scenarios. Indeed, risk taking is the main factor that differentiates employees from entrepreneurs (Harris and Gibson, 2008, p. 71). Entrepreneurs assume moderate risks in scenarios where they possess control and stand the chance of realizing profit. Entrepreneurs exhibit internal locus of control. Entrepreneurs control events in their lives, as opposed to resigning to external forces such as luck, fate or chance. Empirical evidence attests that entrepreneurs possess a greater level of internal locus of control than the rest of people (Harris and Gibson, 2008, p. 52). Other personality traits of entrepreneurs include communication skills, strategic planning, perseverance and innovativeness.
Conclusion
Literature on entrepreneurship is marred with definition variability and complexity. Nevertheless, some of the common denominators on entrepreneurship include need to achieve, planning and moderate risk taking (Harris and Gibson, 2008, p. 61). Entrepreneurs derive satisfaction from personal achievements. The need for success calls for careful analysis of the available opportunities and threats, and rational decision making. Entrepreneurs focus on the future and are powered by prospects of success in the future. Successful entrepreneurs plan for future prospects. The business environment, just like the future is characterized by uncertainty and risks. Entrepreneurs should, therefore, possess the capacity to assume moderate risks in order to realize a profit (Harris and Gibson, 2008, p. 61).
References
Harris, M., and Gibson, S. G. (2008). Examining the entrepreneurial attitudes of US business students. Education and Training, 50 (7), 568-581.
Hisrich, R. D., Peters, M. P. and Shepherd, D. A. (2013). Entrepreneurship (9th ed.). Boston. MA: McGraw-Hill Irwin.