5 Signs You are Meant to be an Entrepreneur

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5 Signs You Are Meant to Be an Entrepreneur | SEJ

Are you meant to be an entrepreneur? According to Operation Hope, 43% of children and teens say they want to start their own business one day but less than 15% of adults in the United States are involved in entrepreneurship.

Are some people born to be entrepreneurs while others struggle with the decision or never achieve entrepreneurial success because they were never meant to be an entrepreneur in the first place?

5 Signs You Are Meant to Be an Entrepreneur | SEJ

Here are characteristics that show you are meant to be an entrepreneur, according to science.

1. You are a Self-Starter

People who take the initiative and start something like a club in college, for instance, or a weekly get-together for like-minded colleagues typically consider themselves self-starters. Then there are people who think that they are self-starters but they are in fact just play around with ideas without ever taking action.

It turns out, what you believe might matter more than whether you are in fact are a self-starter or not. In a 2015 study, people with self-control who believe they were self-starters turned out to be 1.5 times more likely to become entrepreneurs than others who didn’t think they were self-starters.

Being a self-starter also helps people better cope with failure. Getting back up after a financial or emotional hit without help is important for long-term success. As a result of consistently getting back on their feet, self-starters are persistent. This is not to be confused with patience. Patience implies that one is at ease throughout the “trial period” until something works. Persistence in relation to being a self-starter, on the other hand, implies perseverance, will power, and self-discipline.

2. You Have a Parent who is an Entrepreneur

According to the Young Entrepreneurs Study, also referred to as “The YES Study”, having a parent who is an entrepreneur is one of the main indicators you have chances of being a successful entrepreneur yourself.

Nearly 50% of start-uppers in the study have a parent who runs a business compared to merely 30% of other students. In addition to being surrounded with an entrepreneurial mindset throughout childhood, children of entrepreneurs grow up with the idea that starting a business is a perfectly feasible career path.

To the contrary, children from families with a long history of 9-5 employment may hear frequently to get a job and work hard to make it in life. They may, therefore, grow up with the idea that a job is not only a necessity to gain recognition from society but that starting a business is risky, out of the box and not a real job. The entrance barrier into entrepreneurship is therefore much higher.

3. You are Charismatic

Charisma can be learned, and if you are habitually charismatic or have improved your charisma over time, you are likely to have one important characteristic of successful entrepreneurs. Charisma is a key skill when it comes to winning negotiations and getting people on board with your ideas. Steve Jobs is known to have come across awkwardly at his first presentations and had worked tirelessly on being more charismatic during public appearances.

Charismatic people frequently mimic other people’s body language, also known as emotional contagion. It makes people feel like you are connecting and they can better identify with you. This is the basis for trust, which helps not only in negotiations but many other life and business situations.

4. You are Actively Developing Your Business Skills

According to The Wall Street Journal, people who are actively working on improving their business skills are more likely to become entrepreneurs. Students who are majoring in business or take finance and business classes frequently develop an instinct for investment opportunities and are more financially aware. Both of these skills are an important factor of entrepreneurship.

The difference between flirting with the idea of entrepreneurship and having a feeling you will definitely open your own business one day makes the difference between passively and actively considering the decision to become an entrepreneur. The closer you are to the latter, the more likely you are to translate ideas into reality.

5. You are Improving Existing Concepts

According to Business Insider, creativity plays an important role in entrepreneurship. Three-quarters of aspiring entrepreneurs, compared to 47% of other professions, demonstrated innovative thinking by creatively improving an existing product.

The key learning here is that innovation does not necessarily mean a new product or service has to be invented from scratch but that innovation more often than not is the ability to see flaws and opportunities in existing products or concepts. Innovative people are frequently solution oriented and resourceful when it comes to problem-solving tasks.

Thoughts on Scientific Entrepreneurship Studies

I believe most studies that are trying to decipher a true entrepreneurial personality type ignore the fact that there are several types of entrepreneurs. Science looks at the person who runs a business as the entrepreneur. While most small businesses are run by who Michael Gerber refers to as “technicians” in his bestselling book “The E-Myth Revisited”.

He categorizes business owners in three categories:

  1. Technicians – The expert, the specialist, the craftsman. A typical technician statement is “If you want it done right, you do it yourself”.
  2. Managers – The planner, the pragmatic supervisor. Managers spend the vast majority of their time learning from experience and creating predictability.
  3. Entrepreneurs – The business strategist, the catalyst for change. Entrepreneurs do not operate their business, they make strategic choices to get closer to the bigger picture they have in mind.

To better explain the difference between technician, manager, and entrepreneur, let’s use marketing agencies as an example.

There are people who own marketing agencies but are actually not very good marketers. These are mostly entrepreneurs. As a matter of fact, if several employees got food poisoning and couldn’t come in for a day or two, most entrepreneurs wouldn’t know how to complete their own employees’ tasks. Their skill is to work on a business – not in it – and find people who compensate for their lack of expert knowledge in the field.

Then, there are marketing agencies that are owned by marketers that know every little detail there is to know about their specific expertise such as PPC, SEO, AdWords, Facebook Ads, Social Media Management, and so on. These are the technicians.

They have expert knowledge and focus the vast majority of their day on providing the actual service because that’s what they do best. In an ideal scenario, they hire an office manager or surround themselves with freelancers and virtual assistants to compensate for the managerial side. While it may be beneficial to hire a CEO, most companies never grow to a size where both a manager and a CEO makes sense.

Last but not least, the manager. While the manager frequently also has expert knowledge, the true talent lies in organizing other people’s time and tasks to maximize profitability for the company. This is frequently a COO position.

Does that mean that technicians and managers aren’t entrepreneurs?

Not at all.

It just means there are usually tendencies where people’s talents are best allocated. By following their talents, they can usually make the biggest positive impact by giving in to those tendencies.

Science seems to think that entrepreneurs and managers are the same thing and largely forgets about technicians in many of the studies I have seen. More so, they suggest that technicians cannot be entrepreneurs in the first place. I believe this is due to the fact that technicians frequently acquire their specialist knowledge in employment and not as entrepreneurs. Therefore, they are employed at the point in time most studies are conducted because studies usually focus students and people in their twenties.

Michael Gerber touches upon the highly controversial topic of what makes small businesses successful. According to Forbes, 90% of startups fail so understanding what it takes to be part of the remaining 10% is highly valuable information.

Considering that there is a bit of technician, manager, and entrepreneur in all of us and that we most likely have a tendency to be best at one of the three, Gerber is implying is the following.

  1. You can be a bad manager and still have a successful business
  2. You don’t need to know your craft to have a successful business
  3. As long as you know what your strengths are, you can profitably compensate what you don’t want to focus your time on

In Conclusion

I am convinced that entrepreneurial skills can be learned. At the same time, I have received the impression over the last few years that people who enjoy entrepreneurship have always wanted to open a business one day. So if you ask me whether there are people who are meant to be an entrepreneur or not, my answer would be yes.

The path to get there might not always be the same, but if it is meant to happen, an entrepreneur will make it happen.

Additionally, I think a significant percentage of businesses are owned by people who might not fit all the entrepreneurial characteristics science thinks are indicators of entrepreneurship. The question whether science has simply found characteristics that likely result in entrepreneurship or whether results actually show increased chances of being successful in entrepreneurship has not been answered. Considering how many businesses fail, it would be interesting to see studies that reveal characteristics of successful versus unsuccessful entrepreneurs.

Over to you! What do you feel identifies people who are meant to be an entrepreneur?

 

Image Credits

Featured Image: Image by Christina Baldassarre
In-post Photo: Monkey Business Images/Shutterstock.com

Christina Baldassarre

Christina Baldassarre

Founder & Managing Partner at Zebra Advertisement
Christina Baldassarre is an entrepreneur. She is best known for co-founding the award winning digital marketing agency Zebra Advertisement and speaking about entrepreneurism at international conferences such as the SMX and Pubcon. She also co-founded a number of other successful businesses including 1DollarAd and International PPC. In her free time, she is a passionate equestrian rider and trains together with her horse to compete in dressage. She also enjoys working on new business ideas, spending time with her husband and their dog as well as meeting like-minded people who want to get the most out of life. Christina was featured by The Huffington Post and The Richest among other publications.
Christina Baldassarre
Christina Baldassarre
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  • LaMesa Cole

    Hi Christina,
    Thank you for this well-thought out article. As a person who has an M.A. in Psychology and completed a graduate certification in Management, I had been struggling for decades finding out what to do with my life. At 41, I still have not had the opportunity to take my entrepreneurial pursuit higher. In addition to that, being a single mother with constant unemployment and legal problems had been a huge obstacle to me. I love to speak and talk with people and that is the greatest asset besides writing and research abilities. My last graduate course was Marketing Management and I know my career path leads me into some Communication-related position and that is alright with me! I have been trying to find what single parents and/or their children need and want but other demographic markets are open on the table for me (teenagers, seniors, disabled, veterans) to look at too. As an entrepreneur, I wanted to know, how you decided to open your businesses or what inspired you?

    • Hi there,

      First of all, you are a great example for others who are searching for the right career path, you seem to be really persistent and resilient considering what you had to go through! Thank you for sharing your experience!

      I had a feeling that I wanted to be an entrepreneur during high school and college but the final decision to become one was a result of the realization that what I wanted in life was a lifestyle, not a career. Entrepreneurship had always temped me and once I started, I was hooked!

      My husband and I started a number of different service businesses to see what would work best and closed everything except the most profitable one shortly after college. Service businesses cost next to nothing to start and are easy to grow, so that was our best option. Once that got to a point where we needed to decide whether to specialize or offer broader services, we decided to specialize (in PPC with Zebra Advertisement) and opened two more companies related to online marketing to not miss out on the demand we knew was there (1DollarAd and International PPC). We also have other companies now which have nothing to do with online marketing but they are built on the same concept that already worked for us and are also service businesses.

      If you were to ask me how to pick just one business idea to start with: pick the one you would most regret never trying.

      Hope this helps!

      Have a great day and thanks again for sharing your story,
      Christina

  • Your article was a wonderful read for me Christina! My husband and I are recent entrepreneurs mid-life, and want to encourage everyone reading this to take note of #4 & #5 for proper expectations, then know you will be bad before you are good and good before you are great in your business. The key is to keep pushing ahead to discover where the holes are in other products or services and not give up. Also, as a homeschool mom, I am raising a creator who loves computers and encouraging him to have his own business and have control vs. working for someone else. As I am embarking on coaching online marketing to increase business, my son is learning through me what entrepreneurship looks like as I am making mistakes, learning and teaching what I learn. Funny thing is that a few months ago, I would not have thought I would be using the internet and understanding why my son loves it so much. Again, thanks for the article as it inspires me on my journey to know I am in the right place! P.S. I study classical horsemanship too and have a horse farm. Isn’t it interesting how horsemanship can have lots of parallels to leadership and business!

    • Hi Pamela,

      That definitely sounds like you are in the right place! What a blessing for your son to be able to learn from you and grow up with an entrepreneurial mindset! Why work on climbing the ladder if you can own it, right?

      P.S. I love classical horsemanship, too. Horses reflect how you present yourself to a degree no other animal can. My friesian mare teaches me new things about myself and leadership every day.

      Thank you for your thoughtful comment and have a great day,
      Christina

  • Love number 2! I completely agree. By following your own entrepreneurial aspirations, you are planting a seed in the younger generations – especially your kids. Even if they don’t follow the same path, that at least understand that there are non-traditional options out there. You are exposing to them a whole new world. Entrepreneurship in today’s world is much more accessible than any previous generation. Now it’s just a matter of getting the word out.

  • This article gave me a boost and made my mind clear on the skills that I need to focus on to start my business. I finally came to know the difference between a strategist and a tactician. In order to start a successful business, it is necessary to be more of a strategist and a little bit of a tactician.

    Thanks for the great article!

  • Great article, completely agree with all the points. Especially number 2, my father owned his own business and my uncle has a software company. They were big inspirations to me in getting my own company off the ground. I also know several business owners who fall under the category of all 3 Technician, Managers and Entrepreneurs.