10 CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS

1. Curiosity

Successful entrepreneurs have a distinct personality trait that sets them apart from
other organizational leaders: a sense of curiosity. An entrepreneur's ability to remain
curious allows them to continuously seek new opportunities. Rather than settling for
what they think they know, entrepreneurs ask challenging questions and explore
different avenues.

2. Structured Experimentation

Along with curiosity, entrepreneurs require an understanding of structured

experimentation. With each new opportunity, an entrepreneur must run tests to
determine if it’s worthwhile to pursue.

3. Adaptability

The nature of business is ever-changing. Entrepreneurship is an iterative process, and

new challenges and opportunities present themselves at every turn. It’s nearly
impossible to be prepared for every scenario, but successful business leaders must be
adaptable. This is especially true for entrepreneurs who need to evaluate situations and
remain flexible to ensure their business keeps moving forward, no matter what
unexpected changes occur.

4. Decisiveness

To be successful, an entrepreneur has to make difficult decisions and stand by them. As

a leader, they’re responsible for guiding the trajectory of their business, including every
aspect from funding and strategy to resource allocation.

Being decisive doesn’t always mean being correct. If you want to be an entrepreneur, it
means having the confidence to make challenging decisions and see them through to
the end. If the outcome turns out to be less than favorable, the decision to take
corrective action is just as important.

5. Team Building

A great entrepreneur is aware of their strengths and weaknesses. Rather than letting
shortcomings hold them back, they build well-rounded teams that complement their
abilities.

In many cases, it’s the entrepreneurial team, rather than an individual, that drives a
venture toward success. When starting your own business, it’s critical to surround
yourself with teammates who have complementary talents and contribute to a common
goal.

6. Risk Tolerance

Entrepreneurship is often associated with risk. While it’s true that launching a venture
requires an entrepreneur to take risks, they also need to take steps to minimize it.
While many things can go wrong when launching a new venture, many things can go
right. According to Entrepreneurship Essentials, entrepreneurs who actively manage the
relationship between risk and reward position their companies to “benefit from the
upside.”

Successful entrepreneurs are comfortable with encountering some level of risk to reap
the rewards of their efforts; however, their risk tolerance is tightly related to their efforts
to mitigate it.

7. Comfortable with Failure

In addition to managing risk and making calculated decisions, entrepreneurship requires

a certain level of comfort with failure.

It’s estimated that nearly 75 percent of new startups fail. The reasons for failure are vast
and encompass everything from a flawed business model to a lack of focus or
motivation. While many of these risks can be avoided, some are inevitable.

Despite this, successful entrepreneurs must prepare themselves for, and be

comfortable with, failure. Rather than let fear hold them back, they allow the possibility
of success to propel them forward.

8. Persistence

While many successful entrepreneurs are comfortable with the possibility of failing, it
doesn’t mean they give up easily. Rather, they see failure as an opportunity to learn and
grow.

9. Innovation

Many ascribe to the idea that innovation goes hand-in-hand with entrepreneurship. This
notion is often true. Some of the most successful startups have taken existing products
or services and drastically improved them to meet the changing needs of the market.

Innovation is a characteristic some, but not all, entrepreneurs possess. Fortunately, it’s
a type of strategic mindset that can be cultivated. By developing your strategic thinking
skills, you can be well-equipped to spot innovative opportunities and position your
venture for success.

10. Long-Term Focus

Finally, most people think of entrepreneurship as the process of starting a business.

While the early stages of launching a venture are critical to its success, the process
doesn’t end once the business is operational.

14 characteristics of an entrepreneur
1. Motivation
Motivation is the will and drive to succeed in your entrepreneurship venture.
Entrepreneurs may need to push themselves to overcome various challenges on their
journey. To increase your motivation as an entrepreneur, it's best to start with small
goals or break down big goals into milestones. As you surpass the small goals or
milestones, you reach large ones in the process. You also feel encouraged to aim
higher or set larger goals.

2. Creativity
Entrepreneurship starts with an idea. Ideas present opportunities for entrepreneurship.
Creativity helps to turn your ideas into a real business. A creative entrepreneur creates
innovative ways to carry out operations and solve challenges. It would be best if you
had habits that encourage a creative system, so find activities and projects that make
you feel creative. Examples include listening to music, reading, meeting people, and
exercising. It's important to have a specific time in your day to look for inspiration.
During this time, do what inspires you and let your mind wander. Make a list of ideas
and choose the ones to pursue.
3. Passion
Passion motivates entrepreneurs to fulfil their goals. It's important to love what you do.
Entrepreneurs with passion will invest the appropriate resources, such as time, in their
ventures. To gain and maintain a passion for your venture, concentrate on the purpose
of your work. Focus on the benefit you're offering to other people. If you understand the
impact of your business, you can focus on the objectives more clearly.

4. Networking skills
Networking is a crucial aspect of entrepreneurship. Connecting with people exposes
you to partnership and collaboration opportunities. It also facilitates access to useful
business knowledge or resources. Networking also lets you meet new and potential
customers. You may need to network often to improve your skills. Acknowledge the
business goal in your mind and make it your mission to create a human connection.
5. Self-confidence
Self-confidence is the belief that you can succeed and that it's possible to achieve your
dreams. As an entrepreneur, you will face many challenges. Self-confidence helps you
to persevere and be persistent. Confidence makes you ready to invest the resources
because you believe in your goals.

6. Industry knowledge
Entrepreneurs need to know about the products or services they offer and the industry
in which they operate. However, it's crucial to know the model customer or client for
your business. Entrepreneurs need to understand their customers' needs and show
them how the product or service provides value. They also need to understand that
customer preferences change over time and prepare to stay up-to-date with the latest
trends. Finally, entrepreneurs need to monitor and compare what their products or
services offer to changing customer needs.

7. Vision
A vision is the big picture of what you want to accomplish as an entrepreneur. It fuels
your efforts and motivates you to achieve more. A vision defines the purpose and
culture of your business and gives it an identity. Entrepreneurs rely on their vision to
motivate their employees and other stakeholders to work towards a shared goal.

8. Optimism
Optimism helps entrepreneurs stay positive and focus on progress. An entrepreneur's
optimism supports their dreams and plans. It also fuels creativity as an optimistic
entrepreneur focuses on finding new ideas to improve their products, services, and
operations. If you want to develop optimism, view challenges as growth opportunities
rather than as problematic situations. It's always important to keep your goals at the
forefront of your mind. Learning from experience is a great way to maintain an optimistic
outlook and continue developing your skills.

9. Risk-taking
One common characteristic shared by all entrepreneurs is that they are risk-takers.
They make calculated decisions and plan for the unknown to launch and succeed in
their business ventures. An entrepreneur with sound risk-taking abilities considers the
journey as a learning process. You also need to acknowledge the possibility of failure
and learn to use it as motivation to keep going. Therefore, it's important to persevere
through various challenges and focus on your goals. Some risks give your business a
competitive advantage and increase your chances of success.
10. Goal mindset
Entrepreneurs have a goal mindset. They understand what they want, set goals, and
work to achieve them. It's important to have determination because it inspires your
colleagues' trust and helps you overcome potential challenges. To achieve a goal-
oriented mindset, you must identify what you want to achieve and clarify your vision.
Next, set goals with a timeline to help guide your operations. The goals help you
monitor your progress and stay committed to your goals.
11. Persuasiveness
Entrepreneurs have full knowledge about their businesses. Moreover, they know how to
explain their respective business to the audience. Therefore, they need persuasion
skills to convince the audience to believe in their business. Entrepreneurs improve their
persuasion skills by learning about their customers and adapting to their needs and
personality. For example, showing and trying to interact with your audience on an
emotional level. People become loyal to your brand if they can connect or relate to it.
Also, use facts to outline your accomplishments, support your arguments and persuade
people to engage with your business.

12. Decision-making
Entrepreneurs are responsible for making decisions and taking actions that help the
business to achieve its objectives. Sometimes you need to make quick decisions or
decide under pressure. Entrepreneurs improve their decision-making skills by relying on
actionable and reliable information. You need to have a better understanding of the
problems you want to solve. Analyze the impact of potential decisions and ensure you
take enough time to decide. Also, you can narrow your options to make the decision-
making process easier.
13. Money management
Especially when starting, entrepreneurs need an honest opinion of the financial situation
of their business. Established organizations typically have a financial specialist, like an
accountant, who manages the company's finances. Entrepreneurs and startups operate
with a smaller team, so you likely need to manage the books yourself first. One of the
best ways to improve your money management skills is to prepare a budget and respect
it. Learn to invest any spare funds or profit back into your business to help it grow. You
can take classes or training programs to gain more financial knowledge.

14. Adaptability
Entrepreneurs need to multitask, especially as they start a business. It's important to
have a flexible mindset and schedule to prepare for any obstacles you face.
Entrepreneurs increase adaptability if they have an open mindset. Be ready to change
your ways and try new ones to see what works best. It's also crucial to be aware of and
welcome new trends to keep your business thriving in the ever-changing market.

Elements of Entrepreneurship
The 5 Elements of Entrepreneurship are-
 Innovation
 Organization
 Decision Making
 Risk Bearer
 Vision
What is an business organization?
business organization, an entity formed for the purpose of carrying on commercial
enterprise.

Forms of Business Organization

Sole Proprietorship

The vast majority of small businesses start out as sole proprietorships. These firms are
owned by one person, usually the individual who has day-to-day responsibility for
running the business. Sole proprietorships own all the assets of the business and the
profits generated by it. They also assume complete responsibility for any of its liabilities
or debts. In the eyes of the law and the public, you are one in the same with the
business.

Advantages of a Sole Proprietorship

 Easiest and least expensive form of ownership to organize.

 Sole proprietors are in complete control, and within the parameters of the law,
may make decisions as they see fit.
 Profits from the business flow-through directly to the owner’s personal tax return.
 The business is easy to dissolve, if desired.
Disadvantages of a Sole Proprietorship

 Sole proprietors have unlimited liability and are legally responsible for all debts
against the business. Their business and personal assets are at risk.
 May be at a disadvantage in raising funds and are often limited to using funds
from personal savings or consumer loans.
 May have a hard time attracting high-caliber employees, or those that are
motivated by the opportunity to own a part of the business.
 Some employee benefits such as owner’s medical insurance premiums are not
directly deductible from business income (only partially as an adjustment to
income).
Partnerships

In a Partnership, two or more people share ownership of a single business. Like

proprietorships, the law does not distinguish between the business and its owners. The
Partners should have a legal agreement that sets forth how decisions will be made,
profits will be shared, disputes will be resolved, how future partners will be admitted to
the partnership, how partners can be bought out, or what steps will be taken to dissolve
the partnership when needed.

Yes, it’s hard to think about a “break-up” when the business is just getting started, but
many partnerships split up at crisis times and unless there is a defined process, there
will be even greater problems. They also must decide up front how much time and
capital each will contribute, etc.

Advantages of a Partnership

 Partnerships are relatively easy to establish; however time should be invested in

developing the partnership agreement.
 With more than one owner, the ability to raise funds may be increased.
 The profits from the business flow directly through to the partners’ personal tax
return.
 Prospective employees may be attracted to the business if given the incentive to
become a partner.
  The business usually will benefit from partners who have complementary skills.
Disadvantages of a Partnership

 Partners are jointly and individually liable for the actions of the other partners.
 Profits must be shared with others.
 Since decisions are shared, disagreements can occur.
 Some employee benefits are not deductible from business income on tax returns.
 The partnership may have a limited life; it may end upon the withdrawal or death
of a partner.

Types of Partnerships that Should Be Considered:

1. General partnership
Partners divide responsibility for management and liability, as well as the shares of
profit or loss according to their internal agreement. Equal shares are assumed unless
there is a written agreement that states differently.

2. Limited partnership and partnership with limited liability

“Limited” means that most of the partners have limited liability (to the extent of their
investment) as well as limited input regarding management decisions, which generally
encourages investors for short term projects, or for investing in capital assets. This
form of ownership is not often used for operating retail or service businesses. Forming
a limited partnership is more complex and formal than that of a general partnership.

3. Joint venture
Acts like a general partnership, but is clearly for a limited period of time or a single
project. If the partners in a joint venture repeat the activity, they will be recognized as
an ongoing partnership and will have to file as such, and distribute accumulated
partnership assets upon dissolution of the entity.

Corporations

A Corporation, chartered by the state in which it is headquartered, is considered by law

to be a unique entity, separate and apart from those who own it. A Corporation can be
taxed; it can be sued; it can enter into contractual agreements. The owners of a
corporation are its shareholders. The shareholders elect a board of directors to oversee
the major policies and decisions. The corporation has a life of its own and does not
dissolve when ownership changes.

Advantages of a Corporation

 Shareholders have limited liability for the corporation’s debts or judgments

against the corporation.
 Generally, shareholders can only be held accountable for their investment in
stock of the company. (Note however, that officers can be held personally liable
for their actions, such as the failure to withhold and pay employment taxes.
 Corporations can raise additional funds through the sale of stock.
 A Corporation may deduct the cost of benefits it provides to officers and
employees.
 Can elect S Corporation status if certain requirements are met. This election
enables company to be taxed similar to a partnership.
Disadvantages of a Corporation

 The process of incorporation requires more time and money than other forms of
organization.
  Corporations are monitored by federal, state and some local agencies, and as a
result may have more paperwork to comply with regulations.
 Incorporating may result in higher overall taxes. Dividends paid to shareholders
are not deductible from business income; thus this income can be taxed twice.

Subchapter S Corporation

A tax election only; this election enables the shareholder to treat the earnings and
profits as distributions, and have them pass through directly to their personal tax return.
The catch here is that the shareholder, if working for the company, and if there is a
profit, must pay his/herself wages, and it must meet standards of “reasonable
compensation”. This can vary by geographical region as well as occupation, but the
basic rule is to pay yourself what you would have to pay someone to do your job, as
long as there is enough profit. If you do not do this, the IRS can reclassify all of the
earnings and profit as wages, and you will be liable for all of the payroll taxes on the
total amount.

Limited Liability Company (LLC)

The LLC is a relatively new type of hybrid business structure that is now permissible in
most states. It is designed to provide limited liability features of a corporation and the
tax efficiencies and operational flexibility of a partnership. Formation is more complex
and formal than that of a general partnership.

The owners are members, and the duration of the LLC is usually determined when the
organization papers are filed. The time limit can be continued if desired by a vote of the
members at the time of expiration. LLC’s must not have more than two of the four
characteristics that define corporations: Limited liability to the extent of assets;
continuity of life; centralization of management; and free transferability of ownership
interests.

Federal Tax Forms for LLC

Taxed as a partnership in most cases; corporation forms must be used if there are more
than 2 of the 4 corporate characteristics, as described above.