Setting up your own business is an exciting project that many employees are enthusiastic about. It’s an excellent option for becoming independent and improving your quality of life. However, beyond the skills needed to run a core business, entrepreneurial success is strongly linked to personal qualities. That’s why it’s important to examine the profile of a good entrepreneur.
What is an entrepreneur?
An entrepreneur is a business owner who is held responsible for their own actions. They are not legally under anyone else, setting them apart from employees. An entrepreneur is, therefore, free to make their own decisions when it comes to strategic planning, choosing clients and suppliers, pricing and so on.
An entrepreneur is not necessarily in charge of the company. They can delegate this role to a manager. The main objective of an entrepreneur is to make a profit and ensure the long-term viability of the business.
Is entrepreneurship for everyone?
Entrepreneurship is not for everyone, as it entails specific challenges and skills that are not suitable for many people.
Is becoming an entrepreneur risky?
Yes, becoming an entrepreneur is risky; that’s why you need risk management skills.
Financial Risk
An entrepreneurial project can affect our personal finances. There may be uncertainty about income, the profitability of investments, future expenses, and so on.
Unstable Economic Environment
The entrepreneurial environment is often characterized by great uncertainty. Markets, consumer trends and technologies evolve rapidly, making it difficult to forecast the future of a company.
Competition and Market Saturation
In many business sectors, competition is fierce. Market saturation can make it difficult for companies to differentiate themselves and win market share.
High Workload
Entrepreneurs are often responsible for multiple tasks and can work long hours, sacrifice their personal lives and suffer high levels of stress. Some people might drop their projects as a result.
How do you decide if becoming an entrepreneur is right for you?
To find out whether starting your own business is the right choice for you, it’s important to analyze your goals, your lifestyle and your personal qualities. Taking an online test is an excellent idea for evaluating important aspects of entrepreneurship, such as:
- Conditions for success;
- The intention to become an entrepreneur;
- Motivation and determination;
- The ability to take risks;
- Problem-solving skills;
- The personal qualities needed to develop a business;
The HRid entrepreneurship test lets you know what kind of entrepreneur you are:
Builder Type
Builder-type entrepreneurs are known for their determination to achieve their goals. They are seen as energetic and strongly focused on results. They are confident and willing to take risks. They can manage stress and build an extensive network of contacts. However, these people do not see conventional entrepreneurship as the only way to achieve their goals. They include people who work independently and individuals who wish to participate in projects, without being the company’s creators.
Developer Type
Developer-type entrepreneurs demonstrate both the motivation and traits required to build a business from the ground up. They are proactive and oriented on results. To them, entrepreneurship is more than just a career, it’s a way of life. They’re optimistic about creating new solutions to meet customer needs. This category includes founders of small, medium and large companies, as well as those looking to grow an existing business.
Employee Type
This type of person displays certain characteristics associated with entrepreneurs but is not equipped to start their own business. However, they may contribute significantly to starting up a business, rather than taking on the risks inherent in a new venture.
Explorer Type
This type of entrepreneur is driven by exploring new markets and opportunities. Explorer-type entrepreneurs are often on the lookout for emerging trends. They are ready to take risks and experiment with new approaches to expand their entrepreneurial ventures.
Entrepreneurial qualities and commonalities
Motivation
Motivation is an essential driving force for all entrepreneurs who want to create and develop a business:
- Commitment and determination: motivation keeps entrepreneurs committed to their goals and gives them the determination they need to achieve them;
- Perseverance and resilience: motivation provides the energy needed to overcome obstacles and meet challenges. A motivated person is more likely to learn from their mistakes and continue on the entrepreneurial path;
- Inspiration for the team: motivation is contagious and can inspire team members. When an entrepreneur is passionate and motivated, they impart this positive energy to the team, strengthening cohesion and productivity.
Creativity
A competent entrepreneur needs to be creative in order to stand out in their field and must implement strategies for innovation and continuous improvement.
Adaptability and Flexibility
The ability to adapt to market changes and new circumstances is crucial to success as an entrepreneur. The entrepreneur must be able to adjust strategy, revise business plans and seize new opportunities.
Entrepreneurial Skills
A quality entrepreneur must acquire specific skills to manage their business, such as:
- Strategic planning: an entrepreneur must be able to lay out a strategic plan to achieve their objectives. Strategic planning involves setting objectives, identifying actions to be taken, allocating resources and evaluating results;
- Project management: an entrepreneur needs basic management skills, including human resources management, operations management, financial management and time management. Effective management helps optimize the allocation of available resources;
- Communication skills: an entrepreneur must be a good communicator, able to clearly express their vision, negotiate, persuade and create solid relationships with customers, partners and team members;
- Leadership: an entrepreneur must be a good leader and be able to engage their team, align their efforts with the company’s objectives and strengthen the bonds between employees.
Is leadership innate or acquired?
What are the advantages of becoming an entrepreneur?
Independence
Entrepreneurship means being your own boss. Entrepreneurs value the freedom and autonomy offered by entrepreneurship, in which they can shape their business according to their own values, visions, and goals. This enables them to define their own schedules and create a balance between their professional and personal lives.
Income Potential
Entrepreneurship offers the possibility of significant financial gain. Entrepreneurs have the opportunity to create value, increase sales and build their own wealth, rather than depend on a fixed salary.
Economic and Social Contribution
A business project is a good idea for contributing to economic growth and job creation.
Developing Professional and Personal Skills
Entrepreneurship provides a fertile ground for continuous learning. As an entrepreneur, you will constantly be confronted with new challenges and situations, enabling you to acquire new skills and broaden your areas of qualification.
What if I had other choices? What are my career interests?
6 Steps to Becoming an Entrepreneur
1.Business Idea
It’s about examining your skills, talents, and preferences to choose a business concept that is tailored to you.
2. Administrative Procedures
- Answer the questionnaire;
- Take the administrative steps required by the law of the place where you want to set up your business.
3.Complementary Training
Identify the technical and managerial skills needed to launch and run your business.
4.Business Model
A business plan defines the vision, objectives, strategies and actions to be implemented to create and develop a company:
- Market study: competitor analysis, market trends, potential client profile, etc.;
- Marketing strategy: product, price, placement and promotion;
- Operational plan: procurement, production processes, technologies used, marketing, etc.
- Financial plan: projected financial statements, cash flow, profit margins, etc.
- Growth strategy: expansion plan, strategic partnerships, etc.
5.Fundraising
There are several ways to raise the funds you need to create and develop your business:
- Use your savings;
- Obtaining a loan or microcredit;
- Ask your family and friends to participate in the project to create your company;
- Access a crowdfunding platform;
- Contacting angel investors;
- Applying for a small business grant;
- Etc.
Take an entrepreneurship test
If you have a business project in mind, HRid offers you the ID-Entrepreneurship test to assess your interests and skills as an entrepreneur. Our model enables you to determine your entrepreneurial style and provides you with the key aspects of a potential entrepreneur.