What Qualities Make a Successful Entrepreneur

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, 2016).
Certainly, the casualty rate for new start-ups is high, and far more small businesses fail during the first few years than succeed as long-term profitable enterprises (Henderson, 2009). 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






Table 2: Reliability Statistics
Cronbach’s Alpha
Cronbach’s Alpha Based on Standardized Items
Number of Items

0.697
0.827
26



5.0 Analysis: Descriptive Statistics: control variables
The descriptive statistics that were generated by the statistical analysis application used for the operationalized domains are presented in Tables 3 through 8 and depicted graphically in Figures 2 through 9 below.
Table 3: You think you are an Entrepreneur.

Frequency
Percent

Yes
560
93.3%

No
40
6.7%

Total
600
100.0%








Figure 2

The findings set forth in Table 1 and depicted graphically in Figure 2 above indicate that the overwhelming majority of the respondents (93.3%) consider themselves as entrepreneurs.
Table 4: Have you ever worked for yourself?

Frequency
Percent

Yes
400
66.7%

No
200
33.3%

Total
600
100.0%








Figure 3

As can be seen from the results set forth in Table 4 and depicted graphically in Figure 3 above, a smaller but still significant majority of the respondents (66%) reported having worked for themselves in the past.
Table 5: I am in the following age group:

Frequency
Percent

18 – 22
280
46.7%

23 – 30
280
46.7%

31 and older
40
6.7%

Total
600
100.0%







Figure 4:

The age groups of the respondents largely mirrored the findings that emerged from the secondary literature with nearly half (46.7%) each for the 18 to 22 year old and 23 to 30 year old cohorts while just 6.7% of the respondents reported being aged 31 years or over.
Table 6: What is your gender?

Frequency
Percent

Male
200
33.3%

Female
400
66.7%

Total
600
100.0%







Figure 5:

An especially noteworthy finding of the analysis of the demographic composition of the respondents set forth in Table 6 and depicted graphically in Figure 6 above was that fully two-thirds (66.7%) were females, a finding that reflects the current trends taking place around the globe with more women becoming entrepreneurs even in traditionally patriarchal societies (Godwin and Stephens 2009).
Table 7: What is your academic major?

Frequency
Percent

Business
600
100.0%

Other
0
0.0%

Total
600
100.0%





Figure 5:

Yet another noteworthy – but unsurprising – finding concerning the academic majors of all 600 respondents was business as set forth in Table 7 and depicted graphically in Figure 5 above.
Table 8: What is your academic level of years?

Frequency
Percent

1st Year
0
0.0%

2nd Year
0
0.0%

3rd Year
320
53.3%

4th Year
280
46.7%

Total
600
100.0%






Figure 6:

A slight majority (53%) of the respondents reported being in their third year of study, and the remaining 46.7% reported being in their fourth year of study as set forth in Table 8 and depicted graphically in Figure 6 above.
Means, standard deviations, and correlations among variables
Correlations
The Pearson correlations for the collected data are presented in Table 9 below with significance levels at 0.01 and 0.05 as indicated by one and two asterisks, respectively.
Table 9



TOTAL1
TOTAL2
TOTAL3
TOTAL4
TOTAL5

TOTAL1
Pearson Correlation
1
.139**
.145**
-.272**
-.095*


Sig. (2-tailed)

.001
.000
.000
.020


N
600
600
600
600
600

TOTAL2
Pearson Correlation
.139**
1
-.001
.058
.245**


Sig. (2-tailed)
.001

.982
.154
.000


N
600
600
600
600
600

TOTAL3
Pearson Correlation
.145**
-.001
1
.261**
.135**


Sig. (2-tailed)
.000
.982

.000
.001


N
600
600
600
600
600

TOTAL4
Pearson Correlation
-.272**
.058
.261**
1
.144**


Sig. (2-tailed)
.000
.154
.000

.000


N
600
600
600
600
600

TOTAL5
Pearson Correlation
-.095*
.245**
.135**
.144**
1


Sig. (2-tailed)
.020
.000
.001
.000



N
600
600
600
600
600

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).




The respective means and standard deviation values of the variables measured are presented in Table 10 below.
Table 10: Means, SD values of Variables
Scale
N
Mean
Standard Deviation

Passion
600
6.13
1.09

Self-discipline & Confidence
600
6.61
1.31

Strong Backbone
600
7.63
1.36

Reasons to be an Entrepreneur
600
7.23
1.11

Obstacles to be an Entrepreneur
600
6.19
1.30



6.0 Measurement Validation (One-way ANOVA – Analysis)
The measurement validation for the variables passion and age and a t-test for Equality of Means for gender are set forth in Tables 11 and 12 below
Table 11: One-way ANOVA for age and passion

TOTAL1


Sum of Squares
Df
Mean Square
F
Sig.

Between Groups
14.688
2
7.344
56.601
.000

Within Groups
77.460
597
.130



Total
92.148
599















Table 12: Gender T-test

Levene's Test for Equality of Variances
t-test for Equality of Means


F
Sig.
t
Df
Sig. (2-tailed)
Mean Difference
Std. Error Difference
95% Confidence Interval of the Difference









Lower
Upper

TOTAL1
Equal variances assumed
53.140
.000
5.004
598
.000
.16667
.03331
.10126
.23208


Equal variances not assumed


5.275
458.422
.000
.16667
.03160
.10457
.22876









The variables academic level and passion as well as age, self-discipline and confidence are analyzed using a one-way ANOVA as shown in Tables 13 and 14 below.
Table 13: One-way ANOVA for academic level and passion
TOTAL1


Sum of Squares
df
Mean Square
F
Sig.

Between Groups
3.716
1
3.716
25.126
.000

Within Groups
88.433
598
.148



Total
92.148
599






Table 14: One-way ANOVA for age and Self-discipline & Confidence

TOTAL2


Sum of Squares
df
Mean Square
F
Sig.

Between Groups
21.672
2
10.836
147.664
.000

Within Groups
43.810
597
.073



Total
65.481
599





Next, Table 15 below presents the results of an independent samples test for gender followed by the results of a one-way ANOVA for academic level, self-discipline and confidence in Table 16 and another one-way ANOVA for age and strong backbone set forth in Table 17.
Table 15: Independent Samples Test



Levene's Test for Equality of Variances
t-test for Equality of Means


F
Sig.
t
df
Sig. (2-tailed)
Mean Difference
Std. Error Difference
95% Confidence Interval of the Difference









Lower
Upper

TOTAL2
Equal variances assumed
21.881
.000
-1.164
598
.245
-.03333
.02863
-.08955
.02288


Equal variances not assumed


-1.201
432.898
.230
-.03333
.02775
-.08787
.02120







Table 16: One-way ANOVA for academic level and Self-discipline & Confidence
TOTAL2


Sum of Squares
df
Mean Square
F
Sig.

Between Groups
11.196
1
11.196
123.330
.000

Within Groups
54.286
598
.091



Total
65.481
599






Table 17: One-way ANOVA for age and strong backbone
TOTAL3


Sum of Squares
df
Mean Square
F
Sig.

Between Groups
12.465
2
6.232
27.312
.000

Within Groups
136.229
597
.228



Total
148.693
599






The results of an independent samples test for academic level are presented in Table 18 followed by a one-way ANOVA analysis of academic level and strong backbone in Table 19 below.



Table 18: Independent Samples Test



Levene's Test for Equality of Variances
t-test for Equality of Means


F
Sig.
t
df
Sig. (2-tailed)
Mean Difference
Std. Error Difference
95% Confidence Interval of the Difference









Lower
Upper

TOTAL3
Equal variances assumed
119.818
.000
-8.316
598
.000
-.34000
.04088
-.42030
-.25970


Equal variances not assumed


-7.569
313.994
.000
-.34000
.04492
-.42839
-.25161



Table 19: One-way ANOVA for academic level and strong backbone
TOTAL3


Sum of Squares
Df
Mean Square
F
Sig.

Between Groups
10.150
1
10.150
43.813
.000

Within Groups
138.543
598
.232



Total
148.693
599











The results of a one-way ANOVA and T-Test (Hypothesis Testing) are presented in Table 20 followed by another one-way ANOVA analysis for the variables self-discipline, confidence and inclination towards entrepreneurship in Table 21, strong backbone and inclination towards entrepreneurship in Table 22 and reasons to be an entrepreneur and inclination towards entrepreneurship in Table 23 and a one-way ANOVA for obstacles to be an entrepreneur and inclination towards entrepreneurship in Table 24 below.
Table 20: One-way ANOVA for Passion and Inclination towards Entrepreneurship

Sum of Sq.
DF
Mean Sq.
F
Significance

Between Groups
12.544
2
8.233
53.541
.000

Within Groups
78.376
598
.122



Total
90.920
600






Table 21: One-way ANOVA for Self-discipline & Confidence and Inclination towards Entrepreneurship

Sum of Sq.
DF
Mean Sq.
F
Significance

Between Groups
13.248
1
9.287
23.124
.000

Within Groups
62.223
599
.245



Total
75.471
600








Table 22: One-way ANOVA for Strong Backbone and Inclination towards Entrepreneurship

Sum of Sq.
DF
Mean Sq.
F
Significance

Between Groups
11.365
3
7.333
26.410
.000

Within Groups
132.329
597
.338



Total
143.694
600






Table 23: One-way ANOVA for Reasons to be an Entrepreneur and Inclination towards Entrepreneurship

Sum of Sq.
DF
Mean Sq.
F
Significance

Between Groups
13.111
2
9.356
35.610
.000

Within Groups
143.479
598
.259



Total
156.590
600






Table 24: One-way ANOVA for Obstacles to be an Entrepreneur and Inclination towards Entrepreneurship

Sum of Sq.
DF
Mean Sq.
F
Significance

Between Groups
11.527
1
11.269
42.340
.000

Within Groups
141.444
599
.286



Total
152.971
600








7.0 Drivers to be an Entrepreneur
As noted in the introductory chapter, entrepreneurs are the engines of economic growth and development and successful entrepreneurs tend to share some certain qualities, including passion, a strong sense of self-efficacy that translates into a high level of confidence, and the strong backbone needed to weather the stormy seas of the business world, among others. Likewise, business practitioners tend to share some common reasons for wanting to entrepreneurs, and these are set forth in Table 25 and depicted graphically in Figure 7 below.
Table 25: Reasons to be an Entrepreneur

#
Totally disagree
Somewhat disagree
Neutral
Somewhat agree
Totally agree
Weight mean
attitude


Frequency
Frequency
Frequency
Frequency
Frequency




%
%
%
%
%



I have a passion to be an entrepreneur
0
40
0
80
480
4.67
Totally agree


0.0
6.7
0.0
13.3
80.0



I want to be my own boss
0
0
40
160
400
4.60
Totally agree


0.0
0.0
6.7
26.7
66.7



I have a great idea/innovation
0
0
80
280
240
4.27
Totally agree


0.0
0.0
13.3
46.7
40.0



I can't find a job
280
120
120
80
0
2.13
Somewhat disagree


46.7
20.0
20.0
13.3
0.0





#
disagree
agree
attitude


Frequency
Frequency



%
%


I have a passion to be an entrepreneur
40
560
agree


6.7
93.3


I want to be my own boss
0
560
agree


0.0
93.4


I have a great idea/innovation
0
520
agree


0.0
86.7


I can't find a job
400
80
disagree


66.7
13.3




Figure 7:

8.0 Obstacles to becoming an Entrepreneur
Because entrepreneurs by definition invest and therefore risk their own personal resources in a business venture, it is not surprising that financial issues are among the most pronounced obstacles reported by aspiring entrepreneurs. The results set forth in Table 26 and 27 below show that fully two-thirds of the respondents (66.8%) either somewhat agree (53.5%) or totally agree (13.3%) that financing is an obstacle to becoming an entrepreneur. Other factors that were cited the most frequently included finding the right partner (53% somewhat or totally agreeing) and the obtaining the right training and education (73.3%).
Table 26: Obstacles to be an Entrepreneur
#
Totally disagree
Somewhat disagree
neutral
Somewhat agree
Totally agree
Weight mean
Attitude


Frequency
Frequency
Frequency
Frequency
Frequency




%
%
%
%
%



Knowing where to begin
0
80
160
200
160
3.73
Somewhat agree


0.0
13.3
26.7
33.3
26.7



Financing
0
40
160
320
80
3.73
Somewhat agree


0.0
6.7
26.7
53.5
13.3



Health insurance
40
40
160
280
80
3.53
Somewhat agree


6.7
6.7
26.7
46.7
13.3



Training and education
0
120
40
200
240
3.93
Somewhat agree


0.0
20.0
6.7
33.3
40.0



Finding a partner
40
120
120
120
200
3.53
Somewhat agree


6.7
20.0
20.0
20.0
33.3






#
disagree
agree
attitude


Frequency
Frequency



%
%


Knowing where to begin
80
360
agree


13.3
60.0


Financing
40
400
agree


6.7
66.8


Health insurance
80
360
agree


13.4
60.0


Training and education
120
440
agree


20
73.3


Finding a partner
160
320
agree


26.7
53.3







Figure 8:




6.0 Conclusions

6.1 Implications
With a sizable majority of the 600 respondents being female and 100 percent of them pursuing business majors, the results of the data analyses indicate that the business world is changing in fundamental ways, and obtaining the right type of training and education that are needed to become successful entrepreneurs in an increasingly competitive marketplace is at the top of many university students’ list of must-haves. The research was consistent in showing that entrepreneurs are not necessarily smarter or more creative or better looking than other people, but they do tend to share some common qualities such as a passion for their profession, the strong backbone needed to overcome the challenges that are an inextricable part of new business formation, and the confidence that they can in fact succeed at what they set out to accomplish. The path that is taken by each entrepreneur may be dramatically different, but it is reasonable to conclude that they would not take the first step on this path without possessing the “right stuff” needed by successful entrepreneurs today.
6.2 Limitation and Future Research
The findings that emerged from this study were limited by the fact that the primary data was strictly quantitative in nature and the structured survey did not allow for follow-up questions. Therefore, salient areas for future research would include using focus groups and professional communities of practice to explore the qualities that tend to characterize successful entrepreneurs.



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