What a good entrepreneur should have

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The initiative to create a company has gained strength in Latin America, so here we present what a good entrepreneur should do

A current issue in the Latin American and global economy in general, is entrepreneurship. It is fashionable, no doubt, to bet on this. But why should we do it? What are the risks? What does it take to be a good entrepreneur? We all want to manage our time and be our own boss, but not everything is rosy. Entrepreneurship also means risking and maybe losing. This is what it takes to be a good entrepreneur.

Leer en español: Lo que debe tener un buen emprendedor

According to Alison Coleman for Forbes, there are six skills that every entrepreneur must have to be successful. These go beyond being mere abilities of the common entrepreneur, they are rather qualities and ideas that should compose the mindset of the good entrepreneur.

In the first place, she affirms that the successful entrepreneur has a good capacity for resilience, that is, to know how to emotionally handle the ups and downs that a business will generate. The good entrepreneur will also have the agility to react quickly to various situations, to adapt to the market and to anticipate the competition.

Negotiation is the third fundamental skill according to Forbes. But this is not about winning in business but about building relationships and knowing how to dialogue with people who have different opinions.

The fourth fundamental for Coleman, is the ability to solve problems. The good entrepreneur is able to let go of an idea if he sees that it does not work. You also have to be good at building relationships, which does not mean attending networking events, but rather establishing lasting relationships with clients and partners.

Finally, mindfulness is fundamental, because, in the words of Coleman, the entrepreneur must deal with nights of not sleeping, stress for money, dealing with employees, with external collaborators, etc.

Also read: The crisis of commodities: a blessing in disguise

Although the benefits of being an entrepreneur are well known (being your own boss, managing your own time, generating employment and making your idea something productive), little is said about the risks that are incurred when starting a business. The discourse of entrepreneurship encourages us all to be one, but the truth is that certain skills are required to achieve it. In that sense, the ones listed by Coleman are fundamental and realistic.

Economist Andrés Mejía Vergnaud says that the discourse of entrepreneurship must be responsible in the sense that it must take into account the issue of failure:

"The Small Business Administration says that, of all the new businesses that are created, only half manage to survive beyond 5 years, and only a third are still alive 10 years later. For the so-called "startups", the companies that are being created by lots in what seems like a great fever, there are estimates that point to a 90% failure rate. And there is one fact in particular that draws attention: according to a survey made to "entrepreneurs" about the causes of the failure of their startups, the majority (42%) cite lack of need in the market: they created something that did not interest them to the market, which had no demand".

In this way, anotherthing fundamental, is not only to know how to deal with failure, but also to not take it for granted. The good entrepreneur must be a student of the market and create a product that has demand.

For Mejía, it can not be encouraged that everyone can start, because this would be a fallacy. While it is clear that the entrepreneur is a key tab within the market, it cannot be denied that when undertaking, risks are taken and certain specific skills are needed.

In the case of Latin America in particular, something else must be taken into account: the visibility of the employment relationship. According to La Siniestra, this would be another point to review for entrepreneurs:

"As there is no employer or worker, there is no legal obligation, only a minimum of decency and a lot of good energy and goodwill. Thus, it is not necessary for the employer to run with the fixed and variable costs involved in the creation of their company and the possibility of profiting from it, but it is enough to "generate" jobs, regardless of the type of employment that this may be".

This would be a problem for the enterprises in Colombia and Latin America, where the phenomenon of emerging companies is relatively new and the legislation on this type of contracting is still unclear.

The benefits of being an entrepreneur are very clear, and in Latin America there is still a large market to open a business. People must bet on entrepreneurship since the company is an important pillar for our economy and generates employment and innovation. However, these abilities must be taken into account and be realistic when undertaking.

It is important to be aware of the possibility of failure, the skills to be successful and the type of employment that is being generated. Undoubtedly, part of being a good entrepreneur, is being responsible and fair with your workers, as well as being creative, patient and innovative.

LatinAmerican Post | Editorial Team

Translated from "Lo que debe tener un buen emprendedor"