Characteristics of Successful Entrepreneurs

This study attempts to identify an objective test to understand the psychological nature of the successful entrepreneur. Successful entrepreneurs are defined as those who started a business, where none before existed, established for at least five years with at least eight employees. Previous research into the personal characteristics that predict entrepreneurial success is claimed to be unsatisfactory because the projective tests have laborious procedures, require technical training to interpret, and focus on the individual's need for achievement. The present study is based on the assumptions that (1) an objective system of evaluation structured so non-psychologists could administer it was needed, and (2) many other factors than need for achievement could be measured. Five tests were identified that appeared to fit the need for an objective, valid test in a simple format with ease of administration and interpretation. The assessment program utilized these established tests and structured interviews. These were administered to sixty individuals, equally divided by race into blacks and whites, of which all but four were men. Five hypotheses are investigated. Found that racial differences for entrepreneurs were not evident, and that (compared to men in general) entrepreneurs score higher on need for achievement, independence, and effectiveness of leadership, and are low on scales reflecting need for support. Concludes that the Kuder Occupational Interest Survey, the Gordon Survey of Interpersonal Values and the Edwards Personal Preference Schedule successfully differentiated entrepreneurs from others, could therefore serve as objective indicators of entrepreneurship, and should be tested in further research studies. (TNM)