The aim of this report is to discuss on the view that entrepreneurs are made. Three issues, which are previous work experiences, education, role models, are raised in order to demonstrate how entrepreneurs are made. First of all, previous work experiences enable potential entrepreneurs to have certain skills, which are important to entrepreneurship. As well as pushing people into entrepreneurship in case of job dissatisfaction. Secondly, education teaches prospective entrepreneurs characteristics of successful entrepreneurs. Finally, role models encourage future entrepreneur by having effects on values and attitudes.
Introduction
In recent days, the word ‘Entrepreneur’ is increasing in everyday use. Originally, entrepreneur comes from the French word ‘Entreprendre’ which means undertaker, projector or adventurer. (Kanungo 1998 p. 20) In a business context, it means to start a business. These days many people tend to use the terms ‘Entrepreneur’ and ‘Small business owner’ synonymously. Although, they have a lot in common, there are obvious differences between the entrepreneur and the small business owner. Carland (1984) developed the following definitions:
Entrepreneur: An entrepreneur is an individual who establishes and manages a business for the principal purpose of profit and growth. The entrepreneur is characterized principally by innovative behavior and will employ strategic management practices in the business.
Small Business Owner: A small business owner is an individual who establishes and manages a business for the principal purpose of furthering personal goals. The business must be the primary source of income and will consume the majority of one’s time and resources. The owner perceives the business as an extension of his or her personality, intricately bound with family needs and desires.
A number of studies suggest that most entrepreneurs seem to have similar characteristics, which contribute to their successes. According to Klandt (1993), successful entrepreneurs have the following characteristics:
Locus of Control: It has been generally believed that entrepreneurs have exceptionally strong feeling of being masters of their own destiny (Internal locus of control).
Need for Achievement: Need for Achievement is the striving force behind entrepreneurs. It has been thought that entrepreneurs differ from other groups in this sense. Entrepreneurs are high in Need for Achievement.
Attitude to Risk: Entrepreneurs have often been regarded as apt risk-takers.
Need for autonomy and Need for Power: It is important for the entrepreneurs to be one’s own boss. They have also been characterized to be difficult and rebellion personalities, who cannot adapt into a normal working environment. Therefore they have to tailor a suitable job for themselves.
General attitudes and values Attitudes: General attitudes and values Attitudes are not direct causes for entrepreneurship by themselves, but they affect perception and different reasoning processes.
However, although entrepreneurs can be identified by their characteristics, it has been a controversial issue whether entrepreneurs are made or born. Many researchers believe that entrepreneurs can be made, while some argue that entrepreneurs are born and that people cannot be trained to be entrepreneurs. In this report, it will take the view that entrepreneurs are made through three factors, which are previous work experiences, education and role models.
Previous work experiences
Obviously, people can be trained and affected to become entrepreneurs by their previous work experiences. Generally speaking, many important lessons and skills about business come from experiences rather than from schools, books, friends, and colleagues. Certain experiences seem to be useful for potential entrepreneurs once they have decided to go into entrepreneurship. In fact, people can learn by doing things and from their mistakes in previous experiences. These help them to cope with potential obstacles and become successful entrepreneurs. Bird (1989) stated that previous work experiences provide entrepreneurs with certain key competencies and inside information needed to recognize opportunities and evaluate and manage risk. Such experiences lead to key technical skills, which help people to become successful entrepreneurs. The following skills are a model of work experience, which was developed by Collins and Moore (1964):
1. There is a period of drifting in which the future entrepreneur is driven by a diffuse restlessness and in which he picks up critical technical know-how from different jobs.
2. Basic dealing or deal making is learned. The basic problem is “bringing a variety of resources together into a combination that makes possible establishing an ongoing enterprise”.
3. Protégéship involves finding a sponsor and working for and with that sponsor. The experience is either one of emotional highs and lows with generally positive learning or one of fear, distrust, and aggression on the part of the entrepreneur.
Apart from acquiring the important skills to become entrepreneurs, dissatisfaction with previous work experiences push people into entrepreneurship. There is some solid evidence that entrepreneurs were not satisfied with their jobs before starting their businesses. On the basis of previous research, by Brockhaus (1980), entrepreneurs are generally most dissatisfied with previous work, supervision, opportunity for promotion, and coworkers than the general population of workers. These dissatisfactions lead them to put extra efforts in order to avoid returning to the workplace as an employee. It is interesting to note that previous work experiences contribute to important factors affecting entrepreneurship.
Education
Formal education plays a tremendous role in training people to become entrepreneurs. Education enables future entrepreneurs to gain knowledge in areas of businesses that they want to go into. Also the fact is that education sometimes gives good ideas which potential entrepreneurs can turn the ideas into businesses and take advantage of. There is strong evidence that an entrepreneur is affected by formal education. As Donckels & Miettinen stated that education widen an entrepreneurial individual’s perception of opportunities as well as increasing his network of contacts and improve his ability to gather and manage resources. The following statement, which was developed by Robinett (1985), supports the view that the education is important to entrepreneurs.
Recent graduates of programs who became entrepreneurs owe something critical to their education: either practical skills-how to approach financiers, develop training programs, or develop the business-or a role model who encouraged their incipient interest in entrepreneurship and spurred them to turn their ideas in to businesses.
Similarly, Sexton & Bowman (1984) found that students who take entrepreneurship programs are different from students who take other programs. They tend to be less conforming, more impersonal, more risk-taking, more welcoming of change, and have a higher energy level, greater social adroitness, greater need for autonomy, and less need for reassurance than other students. These kinds of characteristics are similar to the characteristics of successful entrepreneurs. From findings of many studies, it is certainly very understandable that education is considered to be an important factor, which trains people to become entrepreneurs.
Role models
There are a number of studies supporting the idea that the existence of a successful role model encourages entrepreneurship. In other words, potential entrepreneurs can be encouraged to become entrepreneurs by seeing someone else succeed. It is should be noted that people who are surrounded by entrepreneurs are more likely to become entrepreneurs than anyone else. Bird (1989) stated that a role model teaches values and attitudes toward independence, tolerance of risk and achievement. Role models can be friends, family, or successful entrepreneurs who potential entrepreneurs used to work with. As Bird (1989) noted that prior experience with entrepreneurship is a crucial factor in looking at current or future performance of specific entrepreneurs. This experience is coming from working for or with an entrepreneur who becomes a role model. Family, too, has a great impact on entrepreneurs. Several studies reveal that having self-employed fathers plays a crucial role in encouraging prospective entrepreneurs to become entrepreneurs. According to previous research, by Roberts and Wainer (1966), high-technology entrepreneurs were more likely to have entrepreneurial fathers than the general population. It can be said that role models contribute to a significant factor making potential entrepreneur become entrepreneurs.
Conclusion
In conclusion, there is no doubt that an entrepreneur can be made through many factors. This report has raised three issues, which are previous work experiences, education, and role models. In terms of previous work experience, it gives future entrepreneurs technical skills and certain key competencies, which help them to become successful entrepreneurs. Also, job dissatisfaction pushes potential entrepreneurs into entrepreneurship. In the area of education, some programs such as entrepreneurship courses trains people to be less conforming, more impersonal, more risk-taking, more welcoming of change, and have a higher energy level, greater social adroitness, greater need for autonomy, and less need for reassurance. These characteristics are important to entrepreneurship. In the issue of role model, role models for instance friends, family, or successful entrepreneurs play a key role in encouraging prospective entrepreneurs to become entrepreneurs by affecting values and attitudes toward independence, tolerance of risk and achievement. From these three issues raised, they have proven that entrepreneurs are made rather than born.
References
Bird, B.J. 1989, Entrepreneurial Behaviour, Scott, Foresman and Company,
Brockhaus, R.H. 1980, Risk taking propensity of entrepreneurs, Academy of Management Joural 23:509-20.
Carland, J.W., J. Hoy, W.R. Boulton, and J.C. Carland. 1984. Differentiating entrepreneurs from small business owners.
Collins, O.F. & Moore, D.G. 1964, The enterprising man,
Donckels, R. & Miettinen, A. 1990, New findings and perspectives in entrepreneurship,
Kanungo, R.N. 1998, Entrepreneurship and Innovation, Sage Publications,
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Robinett, S. 1985, What schools can teach entrepreneurs. Inc., February:50,54,58.
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Sexton, D.L. & Bowman, N.B. 1984, The effects of preexisting psychological characteristics on new venture initiations, Paper presented to the
