Discuss and Critically Evaluate the Most Commonly Cited Characteristics Found in Successful Entrepreneur?

Best Essays
Discuss and critically evaluate the most commonly cited characteristics found in successful entrepreneur?

There has been extensive research conducted on the characteristics that successful entrepreneurs possess. These attributes vary widely across literature, however there are common key traits that are required to achieve any form of success. Frederick et al (2013) suggest entrepreneurs are risk takers, optimistic, have sound judgement and an ability to manage. While a review of literature relating to the psychology of an entrepreneur reveals a large variety of characteristics in a successful entrepreneur, these can be consolidated to a a few into only a few traits that are essential for a successful entrepreneur. Whilst taking into
…show more content…
However, it is his overconfidence in the coal mining has become his downfall in 2012. While it was Tinkler's optimism and overconfidence on new venture activity resulted in his wealth, the research has detailed that excess optimism and overconfidence can be a drawback. Whyte et al (1997) found that overconfidence predicts an escalation of commitment to losing course of action and similarly in a simulation study conducted by Audia et al (2000) found that entrepreneurs that experience success were more likely to be overconfident and stuck to their original course of action (Audia et al, 2000). This is research is shown most prevalent in Tinkler's actions immediately after his initial success to the point that his blindness and lack of any ability to review alternative decisions with his wealth resulted in is wealth halving. A further instance of this was when Tinkler invested heavily back in the coal mining sector with his wealth as this was the original course of action that made his wealth. Consequently, with a dip in the global coal price, Tinklers wealth halved from $1.18 billion to $630 million with many of his coal business's put into receivership (Low 2013).

His over confidence lead to an over evaluation of his business (Hayward and Hambrick 1997) and resulted in him investing in now unprofitable ventures (Zacharakis and Shepard
Get Access