Every year the number of new companies being formed increases as does a desire to work from home and to be one’s own boss. This trend is, in no small way, aided by ever advancing technology giving the ability to work remotely no matter what the type of business. However making this venture a success is not easy, the ability to be truly successful may be down to being a good entrepreneur.

The Collins Dictionary offers one definition of an entrepreneur “the owner or manager of a business enterprise who, by risk and initiative, attempts to make profits”. The key words here are risk and initiative. Do we have it and in the right balance?

Over the years I have been in a position to study these types of people from more than one viewpoint. On two occasions I have started my own company, been a business coach to a number of budding entrepreneurs, worked closely with franchisors in finding franchisees and studied the research behind a psychometric assessment called Entrepreneurial Quotient (EQ). It is this last area that I get most validated proof which has been backed up by my other experiences.

Dr Edward Falska, of the University of Southern California and the author of EQ believes there are three types of successful entrepreneur. Firstly there is the start up entrepreneur. This person is intuitive, logical and open-minded about trying new things. There is certainly a high risk element which applies to all three types but it is most prevalent here. They have a good degree of people skills as they realise that in order to get a business running quickly they need help and the right sort of help. Most interestingly of all, after three years the challenge is no longer interesting; they often need to start up somewhere else.

The second type is the turnaround or growth entrepreneur. They will take over a business that is failing or is just ticking over without success and make it successful. These people are more introverted and certainly more goal driven. They will do whatever it takes to turn the business around; they are not usually interested in the failures of the past just decisive in achieving their goal. Even when influences outside of their control effect them (for example a credit crunch), they simply refocus and concentrate on what is important. Like the start-up entrepreneur, the challenge is important but their attention span is more lightly to last five years.

Finally there is the corporate or operations entrepreneur. They will work happily in a corporate environment however it will be important that they are allowed to get on with their job without being interfered with or dictated to. They are more extroverted and need to motivate others to achieve goals but unlike the other two are more detailed and pragmatic in their approach. In a corporate world there have to be “rules”, they accept these but they should not be too limiting. They are still decisive and driven by the need to move forward on issues without unnecessary delay.

Other factors in these studies across all three indicate a high risk tolerance, good time management when it comes to deciding what is urgent and important, creativity, strategic thinking and a logical and objective viewpoint. Using these characteristics EQ had been (with 96% accuracy as quoted by a franchisor) able to predict whether a potential franchisee will fail or not and what his or her boredom threshold will be.

It is a huge subject discussing issues of personality type, motivation and success. However, it is clear that if anyone is considering going into business for themselves, whatever the economic situation, knowing whether they are an entrepreneur will aid their decision as to whether business ownership is for them.

Peter Kleyn©

Business Coach