Personal Behavioural Trait of an Entrepreneur

Published: 08th May 2008
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Personal behavioural trait of an entrepreneur can be traced to certain socio-economic characteristics, such as:

(1) Family background
(2) Occupational background
(3) Educational background
(4) Work experience
(5) Motives

These characteristics are often associated with entrepreneurship. In Nigeria, some of these characteristics have been investigated.
It is generally agreed that Nigerian entrepreneurs are socially active, alert to profitable opportunities seek material rewards, and that entrepreneurship is socially honoured. Their occupational background varies. They have had considerably working experience in business, government and other professions. Contrary to popular expectations, however, Akeredolu-Ale found that previous business employment has no significant effect on later performance as an entrepreneur.

The educational attainment of Nigerian entrepreneurs is generally above the educational level of the average Nigerian education is significant for several reasons. It is expected that education will provide entrepreneurs the means by which new ideas could be acquired and the skills to manage a sizeable business organization. However, higher formal education has not been formed to be significantly related to successful performance as an entrepreneur. This is probably due to the type of education generally provided in Nigeria secondary schools and universities, which is not vocationally oriented.

In other words, the characteristic of an entrepreneur encompasses various activities which are carried out to ensure the survival and growth of the business. Adequate provisions must be made for decision making and control of the activities of the business.

The entrepreneur may involve such innovation of creating a new product, modification of an existing one in other to serve a need better and adoption of a new technology or production process.
However, the behavioural trait of the entrepreneur has to do with the businessman's personal attributes, knowledge and experience, to establish and operate a business.
Evidently therefore, entrepreneur entails the acquisition of resources for productive activities, risk bearing, decision making, innovation, provision of capital for continuing the operation of the business establishment.

ACQUISITION OF RESOURCES FOR PRODUCTIVE ACTIVITES: This has to do with the entrepreneur's private life or concern in a bid to create a good market. However, the acquisition of productive activities is a personal decision that is, taken by the entrepreneur for the purpose of its business to achieve its primary motive.
The productive activities could be referred to as machines bought for the purpose of production of goods/product in order to satisfy the needs of the market.

RISK BEARING: Risk is the uncertainty in business. However, business is full of risk such as employers risk. Risk is the probability that a desire result or event may not occur, when it occurs, the result will be different from the expectation.
The entrepreneur bears all the risk that is involved in the operation at the end result of the business activities.

DECISION MAKING: Entrepreneur is like a manager, in that he decides how the business activities should be carried out which comprises of the strategies to be adopted for the operation of the business. The entrepreneur decision making can either be favourable or unfavourable to the business. The entrepreneur is said to be supreme in decision making in this context because he has the final say on the operation of the business. The entrepreneur must be innovative as to enhance good operation and decision making.

INNOVATION: Innovation can simply be described as creativity or the introduction of new idea and methods etc. the entrepreneur must be innovative in order to know how to modify its product and the creation of a new product into the market to satisfy their needs. Innovation is one of the major qualities of an entrepreneur because it enhances the entrepreneur on how to modify the existing products and the best method or strategy to be used in order to create a good market.

PROVISION OF CAPITAL: Based on accounting field of study, capital could be defined as any money used for establishing or starting up a business. Therefore, we can see that capital is very essential to the entrepreneurs' personal behavioral trait. This is the entrepreneur's means of sourcing for funds in order to start up the business and for continuing the operation of the business establishment.

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