Are Entrepreneurs Born That Way?

By Jeff Agnor



"Entrepreneur" is a positive term. It suggests independence, achievement and prosperity. The United States may be the most entrepreneurial country in the world, due in part to our fervent devotion to individualism. Some believe it is, more than anything, our unique culture of entrepreneurship that keeps us competitive in the global economy.

What makes one an entrepreneur? Can entrepreneurship be taught, or are certain individuals just wired that way? There is an ongoing debate whether entrepreneurs are a product of nature or nurture.

The "nature" camp believes that entrepreneurial qualities are innate, that entrepreneurship cannot be taught. They contend that viewing entrepreneurship as an academic discipline is misguided. After all, entrepreneurs are not always the best students. The classroom experience involves uniform curriculum, standardized grading and pre-set academic goals, all of which conflict with the entrepreneurial persona.

The "nurture" camp believes that most of us possess at least some entrepreneurial qualities which can be developed with proper instruction. Entrepreneurship is a relatively new area of academic study. Nevertheless, most colleges and universities now offer entrepreneur courses. These institutions are investing enormous resources on the bet that entrepreneurship can be taught.

As with most honest debates, the truth probably lies some where in the middle. It is evident that all entrepreneurs possess a combination of personality traits, skills and values. Undeniably, most of us have at least some entrepreneurial qualities, although they may be unrecognized or undeveloped. We are, for example, naturally creative beings who have an innate desire to achieve and be rewarded for our successes.

This is not to suggest that everyone can be an entrepreneur. It is unlikely, for example, that someone who is naturally risk-averse will ever "learn" to be an entrepreneur.

The qualities that define an entrepreneur fall within three categories: personality traits, skills and values. Personality is largely innate, but is also molded by environmental influences. Skills generally can be taught. Values are the product of both innate qualities and learned behaviors. This is not a perfect breakdown; some traits may fall within more than one category (e.g., creativity may be both innate and learned). Nevertheless, this is a good starting point for discussion.



Personality Traits

1. Need to Be in Control: Entrepreneurs believe they can and should control their own destinies. Entrepreneurs tend to have a problem with authority.

2. Need to Achieve: Entrepreneurs crave success, although money may not always be the primary motivator.

3. Opportunity-Oriented: Entrepreneurs are opportunity hounds; they recognize opportunities where others do not.

4. Risk-Tolerant: Every entrepreneur is willing to assume some risk. Failure is an option.

5. Persistent and Adaptable: Most entrepreneurs are doggedly persistent. They are able to regroup after repeated failures and setbacks.

6. Decisive: Entrepreneurs are decision-makers. They see inherent value in ending deliberations and reaching finality, even at the risk of making the wrong decision.

7. Creative and Innovative: Entrepreneurs need to build new stuff. They also find innovative ways to access financial resourses.

8. Action-Oriented: Entrepreneurs tend to be impatient; they want to act "now."

Not every entrepreneur possesses all of these qualities. An entrepreneur with lower risk-tolerance may pursue a "safe" business model in a crowded and competitive market, but may ultimately succeed through persistence and adaptability. Some may possess qualities they never knew they had. They may discover these hidden talents through formal instruction or, by necessity, in response to a layoff or industry upheaval.

On the other hand, even if one possesses all of the above qualities, this would by no means guarantee success as an entrepreneur. For example, an otherwise natural-born entrepreneur may, nevertheless, fail to raise capital if unable to clearly and confidently communicate ideas to potential investors.



Skills

1. Communication: Public speaking is not an inherent talent. Business students should be taught to communicate ideas verbally in a nurturing, non-threatening environment.

2. Negotiating: Few are natural-born negotiators, but negotiating skills can be taught.

3. Team Building: Entrepreneurs do not always play well with others, but problem solving in a group setting is a learnable skill.

4. Risk Management: Many entrepreneurs fail, not because they are risk-averse, but because they assume too much risk. Entrepreneurs can learn to assess and minimize risks.

5. Graciousness: Etiquette may be a lost art, but it remains critically important in business relationships.

In addition to the traditional business management curricula (business planning, marketing, accounting and finance), emphasis should be placed on the art of negotiation, public speaking and team building. These skills are critical to success in business, but they are not generally innate.



Values

1. Belief: Entrepreneurs have faith in their ideas and believe they will succeed. Such confidence does not come naturally to everyone, but it can be cultivated in the right environment.

2. Empathy, Tolerance and Emotional Intelligence (EQ): The ability to understand and manage emotions is a strong indicator of success in business and other relationships. Much has been written on this subject. Suffice it to say, entrepreneurs do not always come by these qualities naturally.

3. Ethics: Sadly, business ethics is not among the list of inherent entrepreneurial qualities. There is, however, a growing recognition that ethics are critical to the long-term success of any endeavor.

In addition to teaching skills, there has been an increasing emphasis on these values in business and entrepreneurial curricula. Where these values have not been imparted by family or secondary schools, perhaps they can be nurtured in the college environment.

Whether the qualities that define an entrepreneur are inherent or learned may be the wrong question. What matters is the recognition that these are qualities worth cultivating in every student, whether or not the ultimate goal is to start a business. Aspiring to think and act like an entrepreneur can challenge us and bring out the best of our talents and values. For that reason alone, entrepreneurship should be an integral part of everyone's educational experience.



Jeff Agnor practices general business and transactional law at Davis, Agnor, Rapaport & Skalny in Columbia, Maryland. He can be reached by phone at 410-995-5800 and by e-mail at jagnor@darslaw.com.