Entrepreneurs Behave and Think Differently to Conventional Managers
‘Entrepreneurs behave and think differently to conventional managers in larger businesses’. Critically evaluate the statement using relevant models/ theories and case examples to support your argument.
Introduction
There are a vast amount of theorists that try and define an ‘Entrepreneur’; however there is still no clear definition today of what an Entrepreneur possesses that others do not. There is a predisposition to attribute successful entrepreneurs to a person’s characteristics rather than environmental factors. Entrepreneurs are perceived to have ‘special traits’ that allow them to have particular insights not possessed by others. However, the core traits that are proposed to be the key competencies of successful entrepreneurs can also be applied to most successful managers, so what is the difference between the two? Due to the complexity of personalities it is very difficult to separate out specific characteristics.
The socio-behavioural approach recognizes the importance of some of these factors but also involves the effect of culture. The role of social capital and the ability to learn are suggested to be major influences upon potential entrepreneurs. This essay will firstly review what makes an entrepreneur; looking at the influences of personality and socio-behavioural approaches. An insight into the identity and approaches held by managers in larger businesses also needs to be discussed, as well as the development of entrepreneurship in SME’s and its effect on the economy, and finally a brief description of how entrepreneurship affects the economy.
The Entrepreneurial Personality
An individual’s personality will ultimately define how they behave and conduct themselves. Personality is defined as ‘regularities in action, feelings and thoughts that are characteristics of the individual’ (Snyder & Cantor, 1998). If this were true then there would be a set of characteristics that defined somebody as an entrepreneur. There are many traits listed by
Introduction
There are a vast amount of theorists that try and define an ‘Entrepreneur’; however there is still no clear definition today of what an Entrepreneur possesses that others do not. There is a predisposition to attribute successful entrepreneurs to a person’s characteristics rather than environmental factors. Entrepreneurs are perceived to have ‘special traits’ that allow them to have particular insights not possessed by others. However, the core traits that are proposed to be the key competencies of successful entrepreneurs can also be applied to most successful managers, so what is the difference between the two? Due to the complexity of personalities it is very difficult to separate out specific characteristics.
The socio-behavioural approach recognizes the importance of some of these factors but also involves the effect of culture. The role of social capital and the ability to learn are suggested to be major influences upon potential entrepreneurs. This essay will firstly review what makes an entrepreneur; looking at the influences of personality and socio-behavioural approaches. An insight into the identity and approaches held by managers in larger businesses also needs to be discussed, as well as the development of entrepreneurship in SME’s and its effect on the economy, and finally a brief description of how entrepreneurship affects the economy.
The Entrepreneurial Personality
An individual’s personality will ultimately define how they behave and conduct themselves. Personality is defined as ‘regularities in action, feelings and thoughts that are characteristics of the individual’ (Snyder & Cantor, 1998). If this were true then there would be a set of characteristics that defined somebody as an entrepreneur. There are many traits listed by
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