The Psychology of Entrepreneurs
Posted By Rob Millard - 3 Comments -
MBA Depot has a link today to an article in Inc Magazine's Inc.com on the psychology of entrepreneurs. It makes fascinating reading. The article reports on a solid research study undertaken recently on 250 current and former leaders of Inc. 500 companies that debunks many of the myths about what makes a good entrepreneur, and highlights a few unexpected characteristics. The debunked myths are:
Myth : Entrepreneurs Thrive on Risk
Not so. The study found a range of risk aversion levels right across the spectrum in the sample of entrepreneurs it studied. What is did find is the entrepreneurs thrive on stress; akin in this way to military special forces and top athletes.
Myth : Entrepreneurs are Control Freaks
Yes, but no more so than typical chief executives. But they are able to maintain focus over time and are prepared to sacrifice a lot more to meet their goals.
Myth : Entrepreneurs are Lousy at Strategy
The stereotypical entrepreneur is a "ready fire aim" type who is quick on her feet and great at making decisions under pressure, but not good at long term strategy. This stereotype, according to this research, is wrong! Entrepreneurs score higher than other CEOs on awareness (the ability to read a situation) and analysis (the ability to solve problems and think strategically.) They also score highly on action (getting things done) but to a lesser degree than the other two.
Myth : Entrepreneurs are Bullies
Not at all. They excel at getting things done through other people, through having exceptionally good abilities to express support and encouragement. Higher scores here, in fact, than any other group except high-performing salespeople.
The article provides a link to an Inc.com site with a short quizz to assess your own entrepreneurial ability. There is also an opportunity to take the full assessment online (click here) for $125 and get a 25 page report on your profile. I just did - it took me less than 30 minutes. Pretty straightforward. Just got an email saying that I'll get the assessment report in due course.
Comments, as always, are most welcome and may be posted below.
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Nice coverage. I'm an entrepenuer myself and certainly agree with the first. I'm as risk-averse as they come. Thankfully in today's world its possible to start a business without a store front or much overhead, especially early on. I think this is most useful for those like myself.
Uk's leading entrepreneur Paul Manning reveals X7.com at Birminghams biggest business start up show
Just got the test results back. Good, comprehensive report. Most of the findings pretty much confirmation of what I already know, but a couple of surprises that, upon reflection, I can't help but agree with. Well worth the asking price, for me at any rate. Rob.