10 Characteristics of an Entrepreneur

1. Adaptable

Entrepreneurs may sometimes need to alter the way they do things—i.e., their mindset, business model, growth plan, etc.—to overcome an obstacle or adjust to new circumstances. What if a competitor releases a “game-changing” product that threatens to make yours obsolete? What if one opens up a competing business a block away from your brick-and-mortar store? What if a shortage of a key component in your product makes it harder for you to fulfil orders? Or what if your sales are skyrocketing and you have to quickly scale up production to meet the increased demand? To address challenges both good and bad requires an ability to adapt to new and (sometimes) negative circumstances—which is why being flexible and adaptable has earned its spot on this list as one of the key traits of an entrepreneur.

2. Motivated to Succeed

Maybe you’ve heard of something called the “entrepreneurial spirit.” While various characteristics of an entrepreneur may be associated with it, being ambitious and staying motivated to succeed is a defining characteristic of an entrepreneurial spirit. Why? Because trying to turn an idea into a successful business will involve both highs and lows. Staying determined and keeping an “eye on the prize” is an important entrepreneurial quality to have when the going gets tough and it seems easier to give up than to keep moving forward.

3. Willing to Take Risks

Trying to start a new business can be a risky endeavor. As of January 2025, the most recent BLS data show the following:¹

• The one-year survival rate for new businesses is 78.5% (based on businesses that opened in year ending March 2023)
• The five-year survival rate for new businesses is 51.6% (based on businesses that opened in year ending March 2019)
• The ten year survival rate for new businesses is 34.9% (based on businesses that opened in year ending March 2014)

So, right off the bat, all entrepreneurs must accept the risk that a new business may not succeed. But even after that initial step/risk is taken, learning to identify potential opportunities for growth and then take appropriate risks continues to be an important entrepreneurial skill because without it, growth and other opportunities could be missed.

4. Strong Communication Skills

Another characteristic of successful entrepreneurs is that they are strong communicators. Learning to communicate well is a valuable skill that can be applied in writing emails, putting on presentations or speaking with someone one-on-one. Think about it—potential customers could be lost if they don’t fully understand your product or service or why it’s superior to whatever they’re using now, and potential investors could pass on an opportunity to help fund your business if you can’t stay on topic during a pitch. And if employees are involved, lacking this entrepreneurial skill could result in miscommunications that not only hurt the business but also morale.

5. Proactive/Good at Planning

The ability to identify potential problems in advance and plan for them is another one of the important characteristics of an entrepreneur. Reacting to problems as they arise instead of anticipating them could be a recipe for failure—whereas being proactive and developing a contingency plan, i.e., an alternate plan of action that can be followed if the original plan goes off course, could lead to better outcomes.

6. Knowledgeable

Entrepreneurs should be knowledgeable about the industry they operate in, their competitors, their customers, applicable laws and regulations, general business skills and practices, and other factors related to their business and its success. Business knowledge can be acquired through professional experience, conducting research or pursuing an academic degree program, such as, for instance, a Bachelor of Business Administration (BBA)—Entrepreneurship degree program. But helping to ensure that business knowledge remains current may involve additional effort, such as taking continuing education classes, pursuing certification(s) and staying on top of recent developments by subscribing to industry publications.

7. Always Professional

Regardless of an individual entrepreneur’s personality, another important characteristic of an entrepreneur is the ability to remain professional at all times. Imagine putting on a presentation, but it isn’t going as well as planned—in fact, an audience member is questioning a feature of the new product under discussion. An entrepreneur who becomes defensive or aggressive rather than openly discussing the advantages of the product feature could be hurting their reputation. And yet, remaining calm and respectful is only one facet of acting professionally; being reliable, organized and hard-working are entrepreneurial qualities that also fall under the professionalism umbrella.

8. Open-Minded

Rigid thinking can make it harder to come up with new ideas or creative solutions to problems, which is why an open mindset appears among the important characteristics of successful entrepreneurs. If customer needs and preferences change so that a product is no longer a good fit, it may become necessary to update or completely rethink the product or its marketing in order to stay in business. Sometimes being able to evaluate a situation objectively, accept hard truths and rethink the way you do business could be the only way to ensure long-term success.

9. Good Problem-Solvers

To solve a problem, it’s necessary to identify the problem, analyze its underlying causes, devise possible solutions, evaluate and choose the best solution and then put the solution into practice. An entrepreneur’s ability to carry out these steps quickly and efficiently can help minimize harm (e.g., from manufacturing delays and order cancellations) and maximize opportunities (e.g., from increased market demand for a specific product or service). Good problem-solving abilities can result from a combination of some of the other characteristics of an entrepreneur featured in this list—specifically, being adaptable, knowledgeable and open-minded.

10. Strong Leaders

It’s not always enough for an entrepreneur to be motivated to succeed. An entrepreneur must also be able to motivate employees to succeed through strong leadership. Possessing strong communication, active listening and conflict-resolution skills as well as an adaptable management style are just a few traits that can help an entrepreneur become an effective leader—and fortunately, these characteristics can be nurtured and developed with practice.