Risk-taking is one of the chief dimensions of entrepreneurship. Entrepreneurs are found to be more risk takers than the managers and salaried employees, such that, they are willing to put their homes on mortgage, jobless and can work for years without any earning (Burns, 2011; Masters & Meier, 1988). According to (Moore & Gergen, 1985), entrepreneurs always take calculate risk and always analyse the situation. Cognitive Psychology supports that the risk taking ability is just limited to their area of expertise (Sjöberg, 1978, Heath & Tversky, 1991). According to (Heath & Tversky, 1991), entrepreneurs take more risk in the area of their interest and expertise and not in those area, they have little knowledge about. But even then also, they take more risk than general population. Studies have found that there is a deep link between Entrepreneurship and Need of Achievement. According to Begley and Boyd (1987), those who have founded their own companies had a higher need for achievement than non-founders or owner managers. Also, (Stewart et al., 1998) responded that need for achievement is higher in entrepreneurs than the corporate manager and owner managers. Need for Achievement is usually high in entrepreneurs than the general population. It provides them with motivation to go ahead and achieve their next target easily. Entrepreneurs showing this tendency usually are good planners, sets their goals, always look for information and learning (Miner, 2000). They accept success and failure of their work and this need of achievement help them to overcome failure, obstacles and setbacks. Another important characteristic it measures is the locus of control. It is an ability by which an individual makes a perception about the underlying main causes of events in his life. If individual believes that he/she has control over the outcomes though their own abilities such as attributes, hard work and decision making then it is known as internal locus of control whereas, In case of external locus of control, individual believes that they don’t have any influence on the outcomes and believes in external forces such as fate and luck (Rotter 1966). According to (Rotter 1966), individual who has higher achievement motivation show more characteristics of internal rather than external locus of control. Creativity is a key part in the entrepreneurial process. It is the ability to invent something new or change something (Webster, 1976). According to (Cromie, 2000), Creative people show some particular characteristics. They find problems very interesting and are not afraid of obstacles; rather, they try to find out the solution of those problems.
Internal locus of control is how you as a person dictates how their work or personal life is going to go. Meaning the results of something is based on ones behaviors and actions. For example, getting the new job promotion and you knowing that you got the job for your hard work and not because you think, it is out of pure luck.
At first glance, creativity doesn’t seem like a difficult concept. Creative people are either geniuses who pump out innovative ideas day and night, or they are ordinary individuals who experience a sudden flash of genius, only to fade back into normality. This definition of creativity, along with many of the other versions an average person might come up with, is fundamentally flawed: it implies that people don’t have a choice in whether or not they could generate innovative ideas. This interpretation is extremely discouraging for anyone hoping to be successful in the age of technology, where ingenuity has replaced intelligence as the most important quality a person can possess. Luckily, creativity is not just an entity that some people possess and others don’t; it is a skill that people should strive to advance. Creativity and its development are common topics for psychologists and academics, and a plethora of research has been conducted on this subject.
Locus of control refers to the extent to which individuals believe that they can control events that affect them. Individuals with a high internal locus of control believe that events result primarily from their own behavior. Those with a high external locus of control believe that powerful others, fate, or chance primarily determine events that affect their lives. People with a high locus of control try to engage more in political behavior.
Entrepreneurship has taken diverse views since its discovery in commerce. People had varied notions as to what it entails and the characteristics an individual needs to have to be called an entrepreneur. The concept of entrepreneurship is seen as the process of uncovering and developing an opportunity to create value through innovation and seizing that opportunity without regard to either resources (human and capital) or the location of the entrepreneur – in a new or existing company (Churchill, 2003). Entrepreneurship is the willingness
In the past few years, there has a lot of attention paid to the concept of entrepreneurship; however, many still struggle to find the exact meaning of what an entrepreneur is and how he is different from other regular business-owners. This query has gotten people to come up with different definitions and studies in the search of a final answer and, even though there is still a debate for a complete designation accepted by all, now there are certain traits that are recognized by everyone as basics for being an entrepreneur.
If I had an a high external locus control, I could felt like prisoner of luck, fate, my genetic make-up, or socioeconomic status, rather than feeling that I have control over what happens in my life. However, the test results proved me wrong. Due that I have a high internal locus of control, I often take responsibility for my actions as well as credit for my behaviours. “This makes me more proactive in everything I do and seem to have struck a balance between the two ends of the spectrum, (Locus Of Control & Attribution Style Test - Sample Report, n.d.). Therefore, I constantly tell myself that it is vital for me to try my best, accept and understand my own limits but I should also not give up that easily without a fight. If I perceived myself as someone who lacked control, I may find myself inhibiting motivation, initiative and willingness to take risks. Thus, under such circumstances, chances of success can be diminished. The results of the locus control are a clear indication that I lean towards furthest towards the internal side, which is healthier end of the spectrum to be
Entrepreneurship is a powerful combination of imagination, enthusiasm, vigour, passion, excitement, insight, assertiveness, and hard work which enables great ideas to become more than just a dream but a reality (Bessant and Tidd 2011, p. 10). Bessant and Tidd (2011, p. 11) suggests entrepreneurship is a human characteristic which combines structure with passion, planning with vision, tools with the wisdom to use them, strategy with the energy to execute it and judgement with the propensity to take risks, and the new start up venture in which the lone entrepreneur takes a calculated risk to bring something new into the world.
A number of techniques exist to help generate new ideas and, in general, entrepreneurs identify more ideas than opportunities. The notion that creativity can be learned or enhanced holds important implications for entrepreneurs who need to be creative in thinking for decision making, problem solving and idea generation.
In the psychological approach to entrepreneurship an entrepreneur is viewed as a set of personality traits and characteristics. Although a lot of research was done on entrepreneurial characteristics, there is still no definitive list. Jeffrey Timmons and colleagues (Timmons et al. 1990) in their review on personal characteristics and role requirements for entrepreneurs identified
Have you ever wondered about the challenges that new entrepreneurs face in today’s ultra-competitive business world? Entrepreneurship is accompanied by a host of issues, and for new and young entrepreneurs, there are some harsh challenges that are exceptionally tough to conquer. Some of these challenges may include: abandoning another career; lack of finances; facing criticism; team building; business idea issues; inability to market the business; not knowing how to plan a business; loneliness; rule-making; decision-making; and understanding the legal themes. Finding a stable place in the business world depends on the entrepreneurs’ ability to overcome obstacles that may arise throughout the journey. They should prepare themselves for the following challenges they might face as young, new entrepreneurs.
•Creativity- When an entrepreneur has an idea they will do anything to sell it the market. They see something that inspires them and put in the tireless effort to produce it. But we, as the consumer ask ourselves, “ Who thought of this product?”
To understand the role of entrepreneurship in the development of our economy one has to simply define what it means to be an entrepreneur. ‘’An entrepreneur is defined as someone who is creative and identifies an opportunity or gap in the market and evaluates the risk related to the establishment of the business and is prepared to take the associated risk to start the business in the quest for making a profit”( Business Management, a contemporary compilation 2nd edition)
Many people dream of becoming entrepreneurs someday. But it made me realize that there other factors that needs to be taken into consideration. We need to ask ourselves are we ready to take the challenge to the outside world. Not everyone have the vision, innovation and creativity to become an entrepreneur. The individual must have a positive attitude and accept the responsibility, have discipline to meet their goals, and take action when the opportunity presents itself. Many prefer a job security and rely on a weekly paycheck, while entrepreneurs will take risks and doesn 't have that luxury to know the amount of their income.
What is it that makes some small businesses fail while others go on to resounding success? It is an unfortunate fact that a lot of businesses do not make it in the long run. What separates those that thrive from those that don’t? The difference is that certain habits and traits are what allow some small business owners to make their own luck and run successful companies. Let’s look at the ten most important:
entrepreneurs have the ability to come up with new ideas in various situations of which one might have never imagined. Entrepreneurs have a curiosity that identifies overlooked niches and they are constantly trying to innovate (Robinson, 2014). They imagine another world and have the ability to communicate that vision effectively to investors, customers and staff.