Question

Explain the essential traits for entrepreneurs in the innovation and triggering event stages:

1- Tolerance for ambiguity

2- increased need for achievement

3- willingness to accept risk.

Answer 1

Entrepreneurs have to deal with with a variety of situations and challenges during the course of establishment of their venture. They must possess certain essential traits in order to face the challenges and emerge successful :

1) Tolerance for ambiguity : During startup phase there is lot of uncertainty and ambiguity regarding the future. There are no certain sources of finance, no certain revenue streams and no captive market to sell the products. Entrepreneurs have to deal with all this with firm conviction and belief. A high tolerance for ambiguity is an essential trait of an entrepreneur in order to emerge victorious.

2) Increased need for achievement : Entrepreneurs have to capture the market from established companies or create niche markets for themselves. For this there is a constant need of innovation. A high need for achievement is an essential trait of an entrepreneur in order to keep himself motivated and achieve his goals.

3) Willingness to accept risk : There is a very high risk of a startup failing inspite of most of the things going well. An entrepreneur must accept this fact and work tirelessly to achieve his goals. A willingness to accept risk is an essential trait of an entrepreneur which he must embrace before beginning his journey.