Some Comments on the "Entrepreneurial Type"

According to Kaplan (2003), entrepreneurial types share a number of characteristics; they actively seek out opportunities, always on the look-out for the chance to revolutionize a business model in order to more effectively profit from a given market segment; they are disciplined in their pursuit of opportunities; they have an aptitude for pursuing the best opportunities; they execute rather than leading to “paralysis by analysis”; and, they develop and draw on a network of contacts in order to achieve their goals (p. 13). Stevenson and Gumpert (1991) delineate the character of the entrepreneur along two dimensions ; on the one hand, entrepreneurs have “self-perceived power and [the] ability to realize goals,” while on the other hand they are determined to reach a “desired future state characterized by growth or change” (p. 11).

In an extremely interesting paper, two scholars with completely unpronounceable names…Beugelsdijk and Noorderhaven…set out to show, empirically, that there is a significant difference in the psychological profile of the entrepreneur vs. that of a typical member of the population at large (2005). They find that “…entrepreneurs can be characterized by an incentive structure based on individual responsibility and effort, and a strong work ethic” (p. 160).

Kaplan provides a useful framework within which the degree to which the characteristics of the entrepreneur influence managerial action can be assessed (p. 13). An entrepreneurial manager’s strategic orientation is driven by the perception of opportunity; his commitment to such opportunities is revolutionary rather than evolutionary, and can frequently be of short duration; his commitment of resources utilizes a multi-stage approach which provides for minimal exposure at each stage of the process; resources required for the completion of tasks are more typically rented or leased than owned to allow for flexibility in future action; and such a manager will maintain a flat managerial structure, intertwined with multiple informal networks which extend beyond the manager’s immediate organization.

References

Beugelsdijk, S., and Noorderhaven, N. (2005). Personality Characteristics of Self-Employed; an Empirical Study. Small Business Economics, 24, pp. 159-167.

Kaplan, J. M. (2003). Patterns of entrepreneurship. New York: John Wiley & Sons.

Stevenson, H. H., and Gumpert, D. E. (1991). The Heart of Entrepreneurship, in The Entrepreneurial Venture, Boston, MA: Harvard Business School Publications.