The very great challenges of entrepreneurship typically demand certain characteristics from those who start a business. It is believed that these psychological traits make success as an entrepreneur much more likely. Of course, the personalities of many of the great entrepreneurs have been very singular and unique. Nevertheless, there are certain traits in common that seem to be pathways to success in the business world. Understanding these traits helps to understand the business process.
There is typically a great amount of risk involved in starting a business. The fact of this risk often then requires a similar willingness to undergo risks in entrepreneurs. Depending on the industry, any new business may even be more likely to fail than succeed. The psychology that allows one to take great risks is a special one and not shared by all players. The ability to withstand the stresses of risk is very important.
The most successful entrepreneurs have been those who gained a key insight into the area of the business world that they were entering. They are able to identify a key advantage that they have over their competitors if they start a new business. Either from a new technique, a new technology or from a simple discovery of something like a new book keeping method. The entrepreneurs who changed business offered new important insights.
To withstand the stresses associated with starting a new business and overseeing its day to day management, an entrepreneur must have a great amount of confidence in her own abilities. As well, she must trust her own special knowledge and take advantage of her unique insights; entrepreneurs must have a particular confidence in their own thoughts. People are more likely to invest both effort and money in an entrepreneur with confidence.
For any entrepreneur to get past even the first initial steps in starting a business there must be funding available. Successful entrepreneurs have both the personalities to attract funding and to operate in societies where such funding for new businesses is available. If a society wishes to encourage entrepreneurship it must supply a network of investment sources that will allow entrepreneurs with new ideas to even begin their efforts.
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