10 Important Qualities of an Entrepreneur

According to the United States Census Bureau, monthly business applications sharply increased after 2020. In November 2023 alone, 464,838 business applications were submitted in the US [1]. 

There are numerous reasons to want to become an entrepreneur. Whether you enjoy being your boss, desire greater financial security, or have a passion that you dream of turning into a business, specific characteristics may help you succeed. Learn about the qualities of an entrepreneur and how you can hone those qualities to achieve your business goals.

What is an entrepreneur?   

An entrepreneur is someone who starts a new business. You might do this for many reasons, such as a desire for more career autonomy, an interest in creating a product or service that serves your community's needs, or to work in a role that allows you to express your creativity.  In this role, you're fully responsible for creating a successful business. 

Entrepreneurs can fall into multiple categories. The majority are small business entrepreneurs. You might open a bakery or start a daycare without plans to grow beyond that business. If you're a social entrepreneur, you might see a need in your community and create a solution, such as a nonprofit. Buyer entrepreneurs look for businesses with growth potential to acquire and help them fulfill their potential.  

But no matter the type of entrepreneur you want to become, you must possess certain qualities to remain successful in a growingly competitive world.  

10 important qualities of an entrepreneur 

All entrepreneurs are different, but they usually share a few qualities. Some key characteristics of successful entrepreneurs include a passion for their business, determination to succeed, and the ability to take risks without fear of failure. Let's take a closer look at the 10 essential qualities of an entrepreneur.

1. Determination    

Determination is an important characteristic of successful entrepreneurs. You must be willing to face whatever you encounter without giving up. That might look like having a solid work ethic that drives you to do whatever is necessary to succeed and working long days, nights, and weekends to meet your long-term goals. It could look like reaching out and connecting with people who need to make themselves readily available. It may also include selling yourself and your brand at every opportunity, even when it gets you out of your comfort zone. 

2. Self-discipline

According to a report from Salesforce, 38 percent of entrepreneurs say that self-discipline is the most important characteristic for running a successful business [2]. Being a business owner often means getting up early, staying up late, or going to work on the weekends, which requires dedication and discipline. Business leaders who practice self-discipline also lead their teams by example, which can motivate employees to work hard. Self-discipline is a skill you can continue to master by writing down your goals, avoiding your weaknesses and distractions, and learning the art of prioritizing. 

3. Self-awareness 

Learning and practicing self-discipline comes from self-awareness. Greater Good in Education describes self-awareness as "the ability to be aware of one’s inner life—one’s emotions, thoughts, behaviors, values, preferences, goals, strengths, challenges, attitudes, mindsets, and so forth—and how these elements impact behavior and choices across contexts" [3]. That can mean knowing how your mind works and why you do what you do. It’s important to understand your strengths and weaknesses and use that understanding to build your business. Focus on your strengths, and surround yourself with people who counter your weaknesses. 

4. Curiosity 

Many successful business leaders want to know more about the world's workings, which drives them. They are comfortable asking questions and getting advice from experts. You can develop this skill by keeping your mind open to new possibilities, listening to what others say, paying attention to the world around you, seeking knowledge, and considering different points of view. 

5. Optimism 

To inspire others to believe in your vision, you must believe in it yourself. Starting a new business often comes with risks, and remaining positive can help you overcome them. For example, you may overcome your challenges by seeing them as new opportunities to grow your business and develop innovative and creative solutions. Optimists tend to be more decisive, which is important for managing a business because you'll have to make important daily decisions. 

6. Passion 

You must have a passion for your business. That means that no matter what it takes, you're willing to put in the effort and hard work required to nurture a business based on your interest because you love the idea and want to make it your purpose. Once you've turned an interest into a passion through skill and knowledge development, you can then work to turn it into a business idea. Another way to turn an interest into a passion is to think about how your product or service will impact others. Creating the best solution for a consumer's needs may help drive you to continue.

7. Decision-making 

A big part of your day-to-day activities as an entrepreneur and business leader will involve making decisions, some of which will be difficult. Once you make a decision, it’s important to stick by it and see it through until you reach an outcome. Committing to your choices allows you to adapt and change courses quickly.  Making a plan, narrowing down your options, and setting deadlines for yourself can help you improve your decision-making skills. 

8. Flexibility and adaptability 

As an entrepreneur, flexibility and adaptability can allow you to change courses and make new decisions quickly and effectively. You'll encounter many new opportunities throughout starting and running your business, requiring you to make changes that provide the best outcome for your business. Market and consumer needs change frequently, making it important that you are willing to adapt your products and services to meet them. Remaining open-minded to new ideas and embracing change are two ways to stay flexible and adaptable. 

9. Willingness to take risks 

Entrepreneurs tend to be risk-takers. A business's future is uncertain. Outside factors may impact your business at any given time. But by taking calculated risks, you may mitigate the impacts outside factors have on your business. This means you measure the relationship between the risk and potential reward before deciding. Confidence in yourself and your brand can make you more willing to take risks. 

10. Unafraid of failure

Failure can't be something you back away from as an entrepreneur. You must learn from challenges and allow them to make you stronger. It’s essential to become comfortable with failure. If you do fear failure, start working on a growth mindset. Reflect on your experiences and ask yourself what you learned from them. Reassess your goals, think positively, and remain focused on the future of your business. 

Tips for improving your entrepreneurial skills  

Having strong entrepreneurial skills can help make you a stronger business leader. Luckily, you can do some things to build your skills: 

• Gain as much knowledge about your industry as possible.  

• Seek mentors who encourage you. 

• View your failures as an opportunity to learn. 

• Attend events, workshops, and conferences to network and learn more about your industry.

• Find ways to grow your leadership skills.

• Increase your knowledge of business finance.   

• Embrace your creativity. 

• Remain open to change. 

Get started with Coursera.

On Coursera, you'll find many online courses offered by some of the top educational institutions in the world. Many of these can help you build your entrepreneurial skills and knowledge. Some options include Social Entrepreneurship and Entrepreneurship 1: Developing the Opportunity, both offered by the University of Pennsylvania, and Renewable Energy and Green Building Entrepreneurship, provided by Duke University.