What It Takes to Succeed as an Entrepreneur: The Self-Assessment (Passion, Self-Discipline, Confidence and Strong Backbone) Abstract

The debate concerning nature versus nurture remains unresolved, but a growing body of scholarship confirms that like organizational leaders, entrepreneurs tend to share certain qualities that set them apart from others. Indeed, some people seem to be perfect candidates for becoming successful entrepreneurs while others prefer less risky employment opportunities – and risk is the name of the game. By definition, entrepreneurs risk their own time and resources to create new businesses and contribute to the economic growth of their local communities as well as their nations. In fact, entrepreneurs are the engines that drive global economic development. Some of the characteristics which are believed to define aspiring entrepreneurs include passion and an inclination towards entrepreneurship, self-discipline and confidence, and the strong backbone that is required to survive the rigors of the business world and succeed. The purpose of this study is to provide a review of the secondary literature and the results of primary research concerning these issues to confirm or refute several guiding hypotheses. The specific objectives of this study was to confirm or refute a series of guiding hypotheses concerning the various qualities of entrepreneurs and their relationship, if any, to academic level, age, and gender. The findings that emerged from the study, their implications, and future directions for research are presented in the conclusion.

Keywords: Entrepreneur, entrepreneurship, risk

Abbreviations: GDP: Gross domestic product

1.0 Introduction

1.1 Background and overview

While every successful entrepreneur is unique, they tend to share some common qualities that set them apart from others (Taghizadeh and Khadijeh, 2016). For instance, Adams (2018) reports that successful entrepreneurs tend to be highly disciplined self-starters who possess a strong sense of self-efficacy that translates into a high level of confidence. In addition, successful entrepreneurs tend to be highly competitive, creative and committed with an innate passion for what they are doing (Adams, 2018). Other authorities likewise cite these qualities and include others such as curiosity and openness to new experiences but also emphasize that a growing body of scholarship concerning entrepreneurship indicates that some of these qualities can either be taught or otherwise acquired by aspiring business practitioners (Bement and Dutta, 2014).

1.2 Objectives

The objectives of this study were to confirm or refute a series of guiding hypotheses outlined below concerning the various qualities of entrepreneurs and their relationship, if any, to academic level, age, and gender.

1.3 Significance of Study

Successful entrepreneurs have an enormous effect on economic development. The small- to medium-sized enterprises created by entrepreneurs account for the majority of new jobs available in a given region and these contributions tend to become even greater when the multiplier effect is taken into account (Thurik, 2013). Indeed, according to Henderson (2009), “Entrepreneurs create economic growth in their communities by forming new firms. In the 1990s, during the longest economic expansion in the United States economy, the majority of new jobs were created by small and medium-sized entrepreneurs operating high-growth businesses.”

Although the economic impact of entrepreneurs is most readily visible at the local level, the cumulative economic effect of small business start-ups is truly staggering. For instance, Henderson (2009, p. 46) adds that, “The value of entrepreneurs is evident at both the national and local levels. At the national level, nations with more entrepreneurial activity have stronger GDP growth. Entrepreneurship accounts for one-third of the difference in the economic growth rates between countries.” In sum, to the extent that entrepreneurs are successful will likely be the extent to which the communities in which they compete benefit from these businesses.

2.0 Theoretical Background and Hypotheses Development

2.1 Theoretical Background

The research to date confirms that entrepreneurs come in all sizes, shapes, ages and genders, but most successful entrepreneurs in the past have tended to be younger males (Taghizadeh and Khadijeh, 2016). Things are changing today, though, and growing numbers of females and older business practitioners are launching their own businesses and taking the same types of risks that have traditionally been the exclusive domain of younger males (Singh, 2009). The common qualities described above that are typically shared by successful entrepreneurs can be regarded as being the result of their individual personalities. In this regard, Taghizadeh and Khadijeh (2016, p. 192) report that, “From the theoretical perspective, the innovativeness of entrepreneurs can be related to the individual's personality.” The research concerning successful entrepreneurs indicates that their personalities represent accurate indicators of the long-term success of their business enterprises (Taghizadeh and Khadijeh,...

The new businesses that take hold and manage to overcome the significant challenges that are arrayed against any new enterprise are clearly the exception rather than the rule, so gaining a better understanding of what qualities are most responsible for helping aspiring entrepreneurs succeed represents a timely and valuable endeavor.
2.2 Hypotheses Development

Based on the foregoing findings concerning the common types of qualities that are shared by successful entrepreneurs, the following hypotheses and corresponding null hypothesis were used to guide this study: Successful entrepreneurs possess a:

2.3 H1: Passion and inclination towards entrepreneurship.

2.4 H2: Self-discipline and confidence and an inclination towards entrepreneurship.

2.5 H3: Strong backbone and inclination towards entrepreneurship.

2.6 N1: There are no differences between the averages of the sample answers depending on the academic level, age and gender

2.7 H4.1: Age, gender, academic level, self-discipline and confidence;

H4.2: Age, gender, academic level and passion; and,

H4.3: Age, gender, academic level and strong backbone.

2.3 The Research Model

The research model used for this study can be conceptually graphically as illustrated in Figure 1 below.

Figure 1. Research model

The variables in Figure 1 above were operationalized in the survey instrument by grouping questions into these domains, with passion, for example, being evaluated using Likert-scaled questions ranged from totally agree to totally disagree such as, “I have a enthusiastic drive to succeed and passion for the tasks required” and “I can succeed in an environment with many questions and few answers.” Likewise, the self-discipline and confidence domains were evaluated using Likert-scaled questions such as, “I can do the tasks necessary to succeed, whether agreeable or disagreeable” and “I value the management and control systems necessary to run a business.”

3.0 Data Collection and Method

The data collection for this study proceeded in a step-wise fashion, beginning with a review of the relevant scholarly and peer-reviewed literature which was used to develop the content for the survey of business practitioners. The survey instrument was administered in both on-line and hard-copy formats depending on the preferences of the respondents. A proforma copy of the survey instrument is provided at Appendix A.

3.1 Sample

A total of 600 respondents who lived in Middle Eastern countries were surveyed in time to have their results included in the data analysis. The sample was recruited using email invitations and telephonic requests. The ages of the respondents ranged from 18 years to 31 years and older, with equal number of respondents from the 18-22 and 23-30 year group but just 6.7% from the 31 and older cohort. Two-thirds of the respondents reported having worked for themselves in the past.

3.2 Data Collection

The qualitative data collected for this study from the secondary literature was synthesized using the reciprocal translation approach developed by Noblit and Hare (1998) and the quantitative data collected for the study were analyzed as described below.

3.3 Data Analysis Method

Several different methods were used to analyze the primary data collected for this study, including the Chronbach alpha and after-factor analysis to test for the reliability of the variables used (Rutihinda, 2008). In addition, a series of descriptive statistics were used to present the results of the quantitative data analysis in percentile groupings with these results being presented in both tabular and graphic formats. Finally, a one-way ANOVA and an independent samples test (i.e., Levene's Test for Equality of Variances) were used to analyze the variables in the various domains that were operationalized in the survey instrument which were the focus of this study.

4.0 Data Analysis and Results

4.1 Cronbach’s Alpha - Reliability test for all variables – after factor analysis

According to the Institute for Digital Research and Education, Cronbach's alpha is used to measure the internal consistency of a set of closely related items as a group and is regarded as a dependable measure of scale reliability (Cronbach’s alpha, 2018). The variables tested, their respective item numbers and their corresponding Chronbach’s alpha value are set forth in Tables 1 and 2 below.

Table 1: The Reliability test for all variables – after factor analysis

Variable

Item

Cronbach’s alpha value

Passion

6

0.524

Self-discipline & Confidence

6

0.777

Strong Backbone

5

0.613

Reasons to be an Entrepreneur

5

0.678

Obstacles to be an Entrepreneur

4

0.662

…