There’s an entrepreneurial spirit that runs through anyone who’s ever dreamed of starting their own business. But launching is only the first step—founders also need a certain set of skills and personality traits to run a thriving business.
With roughly only half of new businesses surviving past their fifth year, what separates successful entrepreneurs from those who fail? It comes down to specific characteristics that can be developed over time. This so-called entrepreneurial mindset is an attitude toward calculated risk-taking, critical thinking, and long-term strategic planning.
Ahead, learn the characteristics of entrepreneurship, including how to tap into the right mindset and acquire the necessary skills for success.
What is entrepreneurship?
Entrepreneurship is the process of starting, managing, and scaling a business. Entrepreneurs use innovation, skills, and vision to develop new products or services that meet market demand and create value for a target audience. Those who choose this path often take on financial risks and require resilience and problem-solving skills.
Entrepreneurship is a mindset rather than a vocation. It is defined by characteristics like passion, grit, creativity, and the drive to solve problems.
Types of entrepreneurs
There are four main types of entrepreneurs, each with distinct motivations.
Small business entrepreneurs
A small business entrepreneur launches and manages a local or niche company. Examples include retail shop owners, dropshippers, and service providers.
Small business entrepreneurs prioritize independence. Most avoid external funding and often start their business on the side of a full-time job. As a result, growth tends to be slower and more sustainable.
Entrepreneur April Mall, for example, never set out to start a plant business—it was an after-work escape from her full-time nursing job. But when plants began to overtake her apartment, April started selling propagated plants to cover the cost of maintaining her own. Unsolicited Plant Talks became so successful that April and her husband, Daryk, quit their jobs to run the business full time.
Scalable startup entrepreneurs
Startup entrepreneurs aim for rapid growth, often through outside investment. They typically have an innovative idea (usually technology related), are willing to experiment, and are very open to taking risks.
Scalable startup entrepreneurs judge success by the speed at which they gain traction—even if that means investing thousands of dollars before turning a profit.
Take Evan Quinn, for instance, who secured more than $1 million in funding for his consumer packaged goods (CPG) startup Hiyo before perfecting the product. He found a gap in the market for non-alcoholic beverages and knew investment would accelerate his entry into the market.
“The traditional route is to bootstrap it; you know, maybe you’re whipping something up in your kitchen and you’re fulfilling orders out of your garage. That kind of story,” Evan explains in a Shopify Masters interview. “[We wanted to] go big out of the gate, because there is a speed component to trying to get ahead of the adoption curve and getting yourself ingratiated in the category and in the space at the right time.”
Social entrepreneurs
Social entrepreneurs don’t start their business solely to turn a profit. They prioritize social or environmental impact instead.
For example, Brenda Palms Barber founded Sweet Beginnings to help formerly incarcerated Chicago residents. The social enterprise offers training and employment opportunities that benefit the local community and drive environmental change with its beekeeping initiatives and honey-infused products.
“They realized that there was such an interesting parallel between bees and people who were turning to society from being incarcerated,” says chief growth officer Daphne Williams on a Shopify Masters episode. “People have a fear of bees. They’re afraid of getting stung.
“People also have this perception about people who have been incarcerated, that they’re not good people or have done horrible things. And so having a business that merged bees and formerly incarcerated people was a way to kind of take a sting out of the stigma of both.”
Corporate entrepreneurs
Corporate entrepreneurs drive innovation within existing companies. Instead of launching their own businesses, these entrepreneurs use a company’s resources to help larger businesses reach their goals—whether that’s expanding market share or entering new product categories.
While corporate entrepreneurs have greater access to resources, they face internal constraints. Leadership gets the final say on project approval.
Steven Bartlett, for example, founded FlightStory and The Diary of a CEO. He purposely built a failure and experimentation team. These corporate entrepreneurs influence other employees to run their own tests and get comfortable with the idea of failure.
13 essential characteristics of entrepreneurship
- Vision
- Risk tolerance
- Innovation
- Discipline
- Self-reliance
- Adaptability
- Leadership
- Creativity
- Attention to detail
- Curiosity
- Passion
- Motivation
- Comfort with failure
You already might possess the skills it takes to become an entrepreneur. If you don’t, you can develop them over time. Let’s walk through key traits shared by successful entrepreneurial success stories.
1. Vision
Every business venture starts with a vision: a clear idea of the desired direction of the company. Stakeholders, including your employees and investors, look to you—and your vision—for guidance, motivation, and decisive leadership, especially when the going gets tough.
While your mission statement defines your organization’s business objectives and how it intends to reach them, you can also create a vision statement to articulate your aspirational goals.
“By far my favorite thing about entrepreneurship is the feeling of limitless potential,” says Becca Millstein, co-founder and CEO of Fishwife. “I have the ability, autonomy, and power to bring any of my dreams to life—and now that’s a core value at my company too.”
How to develop this trait:
- Block time on your calendar to think about your long-term goals.
- Set a “why”—the reason for starting your business—to align your decisions with.
- Consider a business mentor with experience in the industry to help foresee obstacles or macro shifts that could impact your business’ future.
2. Risk tolerance
You’ve likely heard the adage “No risk, no reward.” That can be true when launching your own venture. The primary reward of starting a successful business may be profit or independence, but the inherent risk is failure.
Businesses fail for various reasons: cash flow problems, supply chain issues, high employee turnover, and even unforeseen events like a global pandemic. Successful entrepreneurs have a healthy degree of risk tolerance, enabling them to make calculated decisions.
Many entrepreneurs take steps to actively manage their risks and protect their business. For example, Edwin Broni-Mensah launched his social impact company, GiveMeTap, as a side hustle before jumping in full-time.
How to develop this trait:
- Reframe risk-taking not as a potential failure, but as an opportunity to learn.
- Start with small experiments such as pilot programs, product testing, or soft launches.
- Build a cash buffer to provide stability if things don’t go as planned.
3. Innovation
With big companies dominating crowded markets, new founders must find innovative opportunities to stand out. They might make an existing product better or develop something totally new. Bold ideas propel successful startups into household names.
Hannah Mendoza broke into the beverage market with a fresh idea and innovative product. She built Clevr Blends by adding beneficial nutrients to the daily ritual of drinking coffee and tea.
“It took a year in my kitchen, surrounded by hundreds of different ingredients, trying to nail that barista quality and texture, while also having these incredible functional ingredients,” Hannah says on a Shopify Masters episode.
How to develop this trait:
- Talk regularly with your customers to identify their pain points.
- Schedule regular brainstorming sessions to encourage creativity. Don’t dismiss “bad” ideas—use them as a launchpad.
- Don’t wait for the perfect scenario. Start with what you have. You’ll find creative ways to overcome resource constraints.
4. Discipline
Entrepreneurs often get tired or run low on self-motivation. But business owners need the discipline to keep going and do the work—even when they don’t feel like it.
Sarah Paiji Yoo required discipline to find the right partner for her new business, Blueland. “We kept this master spreadsheet of hundreds of chemists and their backgrounds,” Sarah says in a Shopify Masters interview. “And then we just started cold [messaging] them on LinkedIn.”
To develop discipline, establish healthy routines like writing down your goals, creating a schedule, or exercising regularly. When new challenges arise, stay persistent until you achieve your goal. Part of what makes a leader successful is the ability to see failures as opportunities to learn and grow.
How to develop this trait:
- Create systems so you can avoid relying solely on willpower. For example, you could time block your calendar or use templates to help you work through repetitive (or boring) tasks.
- Use a habit tracker or accountability partner to create a visual progress streak you won’t want to break.
- Set boundaries and say “no” to things that don’t help you grow.
5. Self-reliance
When you’re building a new venture, you’re often working alone, wearing many hats to keep everything running smoothly. Strong self-belief means you’re adept at problem-solving to get things done.
Two Wheel Gear founder Reid Hemsing, for example, found himself building his business alone after his co-founder backed out. He continued as a solopreneur, recovering from the setback. Only then was he able to grow, eventually building his team by finding complementary talents in others.
Remember that self reliance can sometimes run out, and a good entrepreneur has the self-awareness to know when it’s time to bring in others for advice or backup. “I try to do everything on my own,” says Reid. “But I realize that you need to ask for help sometimes.”
How to develop this trait:
- Learn the fundamentals of each business department: finance, marketing, product development, and so on.
- Refer back to your “why” when motivation flags.
- Don’t be afraid to ask for help when you need it.
📚Learn more: The Pros and Cons of Being an Entrepreneur
6. Adaptability
Adaptability is an essential trait in a world of evolving business practices and changing consumer trends. Versatile leaders are comfortable with failure and have the resilience to overcome challenges quickly.
That’s not to say you have to be prepared for every scenario. The most successful entrepreneurs adjust to change with a positive attitude.
When entrepreneur Mike Salguero realized one of his businesses wasn’t succeeding, he noticed a different opportunity in the marketplace—shipping high-quality meat products through a subscription model—and launched ButcherBox. “Try to deconstruct things and don’t just use the playbook everyone else has, but really come up with your own,” he says.
How to develop this trait:
- Schedule time to review what’s working (and what isn’t), so you can adapt before you get too set in your ways.
- Remain flexible and pivot if something doesn’t work as expected.
- Prioritize personal growth and self care over always needing to be “right.”
7. Leadership
Good leaders share their vision, develop teams with complementary abilities, and have confidence in themselves and what they sell—entrepreneurial skills that apply to every business.
LA stylist and founder of The Period Company Karla Welch exhibits leadership by using her platform to change perceptions about period products and their impact on the environment, while addressing customer needs through inclusivity. “If we can shift the ideas people have had for the last several hundred years regarding our periods, that’s way more important than a pair of underwear,” she says on a Shopify Masters episode.
How to develop this trait:
- Find your leadership style and embrace it.
- If you’re growing a team, set the tone and lead by example.
- Practice decision-making and take decisive action.
8. Creativity
Creative entrepreneurs use imagination and resourcefulness to solve problems—often working within constraints.
Business coach and #CultureFix founder Nora Rahimian describes creative entrepreneurs as those who start a business on their own terms. “We often think of creativity as the outcome or the product,” she says on a Shopify Masters episode. “But you can get creative with what entrepreneurship looks like for you.”
How to develop this trait:
- Read the best entrepreneur books.
- Form habits that support creativity, like sharing ideas, experimenting, and helping others.
- Schedule downtime to give your brain space to think creatively.
9. Attention to detail
How can your idea solve a problem? What unique details and features help you stand out from the competition? How do you anticipate customer needs? The best solutions to these questions require attention to detail.
Little Chonk founder Bryan Reisberg, for example, conducted market research and was obsessed over every detail of his prototype during product development. His goal was to address what was missing from traditional dog carriers.
“We tested with people in the wild,” Bryan says on a Shopify Masters episode. “We did product testing overseas to make sure that it was safe and it was comfortable. We asked people’s opinions. It was just resounding: ‘This is incredible, people need this.’”
The hard work paid off—Little Chonk’s inaugural product sold out in four minutes.
How to develop this trait:
- Have family and friends review your work for feedback and perspective.
- Create checklists for repetitive tasks, such as reporting or creating marketing strategies.
- Stop multitasking—do one thing at a time.
10. Curiosity
Rather than settling for the status quo, curious entrepreneurs ask challenging questions and explore ways to better serve their customers.
Founder Ross Mackay noticed many plant-based meats contained too many processed ingredients and wondered if it was possible to offer a healthier replacement for chicken. This curiosity and drive helped him launch Daring, a food business selling chicken alternatives made with just six ingredients and plenty of nutrients.
How to develop this trait:
- Train your brain to ask “Why?”
- Explore topics outside your industry through books, podcasts, or YouTube videos.
- Talk to people—including customers, fellow entrepreneurs, and mentors—who hold different perspectives.
11. Passion
Many successful entrepreneurs build businesses driven by passion. Whether it stems from a profitable hobby, a unique idea, or the drive to make change, caring deeply about what you do means you’ll be better equipped to handle the highs and lows of starting a business.
Serial entrepreneur Wil Yeung’s passion for good food, photography, and travel helped him build his successful YouTube channel—even after a slow start. “At the time, I was making maybe 200 bucks a month from the YouTube channel,” he says on a Shopify Masters episode. “It didn’t even pay for the ingredients that I had to purchase.”
Today, almost 1.5 million subscribers tune in to watch Wil cook. He also sells books, ebooks, and online courses to engage his community and support his business.
How to develop this trait:
- Pay attention to what energizes you. Notice recurring themes or interests.
- Experiment with different classes, workshops, or projects to discover your passions.
- Surround yourself with people who share your passions.
12. Motivation
Motivation drives you forward through the ups and downs of your business. It’s especially important for leaders—keeping your team motivated to bring your dream to life can be even more challenging.
“There has to be a level of authenticity and transparency from the leader,” says Michael Perry, founder of Maple. “It’s important to own that and really solidify trust.”
How to develop this trait:
- Understand what motivates you and connect it with your business goals.
- Break big projects down into smaller, more manageable tasks.
- Track progress visually, using a whiteboard or habit-tracking app.
🎧Listen: The 11 Best Motivational Podcasts for Entrepreneurs
13. Comfort with failure
Not every business idea will be a roaring success from the outset. Whether you’re struggling to secure funding for your new venture or spend time developing a product that doesn’t sell as well as you expected, entrepreneurs who stand the test of time are comfortable with the idea of failing. Instead, they view it as an opportunity to learn and grow.
David Gaylord, CEO of Bushbalm, experienced this first-hand. He discovered that 10,000 units of new product packaging failed after shipping customer orders. Quick thinking led him to order 10,000 extra inserts to prevent spillage for the leaking bottles they’d already invested in.
“Anytime you do something that doesn’t work, it might be a failure per se, as whatever you define a failure,” David explains on a Shopify Masters episode. “But I look at it as just an opportunity to learn something new and do something different. I don’t see it as something that brings me down. I see it as something that I want to change and try something new with.”
How to develop this trait:
- Reframe destructive language: you’re not a failure, you just haven’t found the right solution yet.
- Don’t dwell on your mistakes—pick yourself back up, even if it feels difficult in the moment.
- Put yourself in small stakes situations to fail deliberately and get comfortable with the feeling.
How to develop entrepreneurial characteristics
Successful entrepreneurs don’t develop the characteristics they need to run thriving companies overnight. Skills are learned—the only way to develop them is to practice.
To develop your entrepreneurial characteristics:
- Never stop learning. Continually seek out information from other entrepreneurs, including books, podcasts, YouTube videos, and online courses. Learning from their experiences allows you to skip their mistakes and replicate what helped them grow. Knowledge is power.
- Find a business mentor. Get personalized advice from someone who’s already walked the walk. Look into your professional network, ask on LinkedIn, and participate in forums created for founders to find a potential mentor.
- Document your progress. Instead of succumbing to low motivation when things get hard, keep a progress journal of your achievements. Add things you’re proud of, accolades you’ve received, and positive feedback to keep you going when motivation dwindles.
- Reframe your mindset. It’s rare for any business to become an overnight success. Approach your entrepreneurial journey with realistic expectations and a practical business plan—including projected timelines and profitability goals.
- Take small risks. It’s a scary feeling to be outside your comfort zone, but that’s how growth happens. Take small risks to get comfortable with innovation and experimentation. Failing is a natural part of the process and feels less overwhelming if you only took a small bet.
5 tips for being a successful entrepreneur
- Understand your target market
- Develop a strong brand
- Build relationships with customers and clients
- Make a budget and stick to it
- Set goals
Having the characteristics of entrepreneurship is only the first step. If you’re looking to start a business, take these concrete actions to increase your chances of becoming a successful entrepreneur.
1. Understand your target market
A target market is the group of customers most likely to buy your goods or services. Once you define this core audience, market research can help you understand what they need, want, like, and dislike. These insights will help you identify business opportunities.
2. Develop a strong brand
Your branding goes beyond visual identity. It establishes your reputation as the go-to business in your industry. To develop a strong brand, understand your competition, determine your primary audience, develop a compelling story, and build a brand strategy. Investing in branding can help your company grow and succeed at scale.
3. Build relationships with customers and clients
Regardless of the type of business you build, your reputation with clients and customers is important. Building solid customer relationships is rewarding in itself, but it also leads to repeat customers, valuable word-of-mouth referrals, and increased sales.
4. Make a budget and stick to it
A detailed and realistic budget reduces financial risks associated with launching a small business. The basics of a solid budget include estimates of your available capital, regular expenditures, anticipated revenue, and areas where you can cut costs. Being a disciplined entrepreneur and sticking to your budget puts you in a better position to make your money work for you.
5. Set goals
Goals can give you a clear focus and help motivate your team. Some leaders use the SMART method—specific, measurable, achievable, relevant, and time-based—for goal setting. This framework can help you clarify your ideas and focus your efforts. As an entrepreneur, numerous goal-setting tools are available to help you stay on track while tending to day-to-day operations.
Do you have the traits of a successful entrepreneur?
While each entrepreneur brings unique talents and skills to their business, the most successful entrepreneurs often share several common characteristics.
Adopt an entrepreneurial mindset and lean into your strongest traits. Important characteristics such as social skills and innovation will help you stay focused through tough times and achieve your goals.
Characteristics of entrepreneurship FAQ
What makes an entrepreneur successful?
Business owners share many of the same entrepreneurial characteristics: leadership, vision, discipline, curiosity, creativity, adaptability, and the ability to take measured risks. Developing these traits can help you launch and grow a successful business. Define success as an entrepreneur. For some, that may mean profit, while for others, it’s about achieving freedom and independence.
What’s an example of entrepreneur characteristics?
Steve Jobs is an example of a great entrepreneur, due to the important characteristics he possessed to help him succeed. He found innovative opportunities in technology to bring Apple to life. His strategic thinking, self-confidence, and creativity were central to his success. Business leaders often look to his journey for inspiration.
Why is risk-taking important for entrepreneurship?
Entrepreneurship always involves some level of risk, whether personal or financial. No business is guaranteed to succeed, so entrepreneurs need to feel comfortable taking risks to achieve growth. Successful entrepreneurs understand that risk-taking is a calculated process of identifying potential solutions, testing hypotheses, and using methods to mitigate risk.
Can entrepreneurial skills be learned?
Not everyone is born with natural entrepreneurial skills. Most skills—including empathy, emotional resilience, leadership, and attention to detail—can be learned.
What personality type makes the best entrepreneur?
16 Personalities suggests most entrepreneurs have the ESTP personality type. They’re practical, thrive in fast-paced environments, and enjoy social interactions.
What are the characteristics of successful entrepreneurship?
Successful entrepreneurs share skills and personality traits that make them great in business. These include resilience, risk tolerance, discipline, self-reliance, adaptability, and decisiveness.
