Do Entrepreneurs have Taits or Cognitive Biases that make them Essay

Do Entrepreneurs have Taits or Cognitive Biases that make them different from other Individuals - Essay Example It is hard to specify a personality pattern for the entrepreneurs. Probably, the varieties of personality among the entrepreneurs are just as many as the number of entrepreneurs. However, there are certain characteristics that are common in most of the entrepreneurs. â€Å"[E]ntrepreneurs are business creators that are characterized by the following cognitive aspects: they have a creative and knowing cognitive style, use intuition to make decisions, develop expert scripts, are self-ef?cient in the perception and development of opportunities, create an innovative environment, cope with unexpected challenges, develop investor relations, de?ne business goals, develop human resources, and are prone to innovation and risk taking† (Sanchez, Carballo, and Gutierrez, 2011, p. 436). Research conducted by David McClelland revealed a distinct cluster of personality traits typical of the founders of companies that exhibited rapid growth. McClelland found a high need for achievement among these entrepreneurs. The growth-oriented entrepreneurs have a strong need to succeed and accomplish tough tasks. These entrepreneurs derive the desire for independence from the very desire for achievement. Their need for achievement makes the growth-oriented entrepreneurs to keeping moving from one firm to another. They need constant recognition. Growth-oriented entrepreneurs are very articulate in their manner. They have a low need to conform. This means that although they listen to others, yet they are able to do as they wish. They may go out of the way to do a thing if they consider it right. These entrepreneurs normally work for anywhere between a sixty to eighty hours per week in order to achieve their goals irrespective of the amount of stamina it requires. Growth-oriented entrepreneurs accept risks. The risk involved in the work is too little as compared to the courage and confidence, and the need for achievement of these entrepreneurs. These five personality traits i.e. high need for achievement, low need to comply, persistence, high level of energy and immense tendency to take risk can be condensed into four basic attitudes that are typical of the successful entrepreneurs. These four basic attitudes are optimism, commitment, focus, and drive. Entrepreneurs are generally very optimistic in their approach of thinking and are opportunists (Keh, Foo, and Lim, 2002). The very optimism helps them deal with failures in the rational way. They are confident about the rightness of their cause. Entrepreneurs generally have an external locus of control. â€Å"The concept of locus of control refers to a generalized belief that a person can or cannot control his or her own destiny and individuals are classified along a continuum from very internal to very external† (Oben et al., 2011. p. 112). Pessimists consider failure a consequence of their personal mistakes and think that it would last long whereas optimistic entrepreneurs consider that failure occurs fr om a cause that is beyond their control and that it is short-lived. One of the most fundamental personality traits that entrepreneurs require to succeed is commitment. A business is not made successful overnight. It might take years for a business to reach a level wherein the entrepreneur can become successful. In the time that is spent in between, the entrepreneur