President Cyril Ramaphosa, in his opening address to the nation, emphasized that his government is“determined to build a country that is driven by enterprise and innovation”.  At the same time, the World Bank has urged South Africa to harness its “largely untapped potential for innovation.”

One of most important factors to consider, in driving enterprise and innovation forward, is the choice of top-performing entrepreneurs to head projects in agriculture, mining and finance. And yet, how does one choose great entrepreneurs to invest in? The investor/CEO relationship can be a five- to ten-year commitment, often involving high stakes, so one needs to enter the relationship with conviction, and gather all the facts you can, before taking the leap.

How do you recognize a great entrepreneur?

What I look for in the early stages of a venture fund, is a person who has a track record of success – at C-suite or CEO level. Theodore Roosevelt said, “The credit belongs to the man who is actually in the arena; whose face is marred with dust and sweat; who strives valiantly, who errs and may fall again and again, because there is no effort without error or shortcoming.” What this comes down to is that, if one is approached by someone who wants you to invest in their agricultural venture, you want to see proof of successful crops. Some optimistic entrepreneurs might bite off a little more than they can chew, but if there is evidence of learning having taken place and success having been achieved, these entrepreneurs should be a good bet.

It’s not uncommon to pair a talented, inexperienced CEO with an experienced executive, and this has proven to be quite successful, in many cases. Consider the pairing of Mark Zuckerberg and Cheryl Sandberg, for instance. That said, there is the risk of a pairing not working, as was the case with Steve Jobs and John Sculley.

Another important aspect to consider, when choosing an entrepreneur, is their knowledge of the industry.  Their knowledge must be in line with the strategy for your business. After all, to be able to disrupt or fix the industry you need to understand it. Therefore, one must consider what sources of knowledge are available to the entrepreneur and how one can best harness and exploit their strengths and information resources, as well as their customer relationships, designs, and ideas.

Personality traits of entrepreneurs

As researchers strive to determine which personality traits are predictive of future success, our understanding of the entrepreneurial personality continues to evolve, but the Big-5 model is the baseline that many use. This includes personality traits such as self-efficacy and innovativeness, locus of control, and the need for achievement. In addition to these, we look at key skills and personal characteristics.

Successful entrepreneurs tend to have these traits:

• Passion   
• Strong work ethic
• Strong people skills
• Determination
• Creativity
• Competitiveness
• Self-Starter
• Open Mindedness
• Confidence
• Discipline

My top 3

The three characteristics I find to be most valuable are: curiosity, risk-taking and communication skills.

Curiosity

According to Cameron Herold, a leader in the world of business growth and leadership, “The smartest CEOs are vulnerable, open to hearing what they don’t know, and are always trying to learn.” Those who are open to learning are able to grow, and their focus is on learning, not on instructing others.  Opportunity comes when you knock, and curiosity is very often the motivation behind new inventions, groundbreaking insights and findings. Good entrepreneurs live at their growth edge and one of their greatest skills is being willing to accept what they don’t know.

Risk-taking

Entrepreneurs need to take risks. This requires the ability to calculate the level of risk as well as its consequences, while at the same time having the courage to take the steps needed to grow the business. The ability to embrace risk in this way is what differentiates them from other members of their leadership team. Successful entrepreneurs tend to have a daring streak in them and are more comfortable with embracing risk.

Communication and Networking

When an influential leader enters a room they bring with them a certain feeling and energy. Passionate people inspire others to passion. To move another, you need to be moved. Influencers persuade others through their authentic drive and unique energy. The potential of entrepreneurs who embody the level of energy they want others to carry forward is therefore profound.

Stepping into the role of entrepreneurial leadership often challenges you to rethink networking – the extent of your circle of influence, and the role you play in building these associations. Successful entrepreneurs understand that networking is about creating a web of personal contacts that will provide support, feedback, insight, resources, and information. Sadly, this is often one of the most neglected developmental challenges and one that all aspiring leaders must address.  

Where there is no vision, companies perish

 And last, but by no means least, one must consider the vision of the entrepreneur because it is this that shapes the future of the company. The greatest leaders nurture their vision and explore ways of testing their vision in the real world without putting their company at risk.

That said, vision alone is not enough. According to Sally Blount, in her article for Forbes Magazine, leaders also need to enable their teams and organizations to embrace and enact that vision. They need to remain open to feedback from the rest of their leadership team, and use it to help them refine and develop their vision for the company.

James Clear, founder of Passive Panda and award-winning writer on entrepreneurship in his article ‘Entrepreneurs Vs. Managers: Which Are You?’, says that entrepreneurs start companies because they want to change things:

What we need is marathon entrepreneurs who want to see change in South Africa, who are in it for the long term and who believe that together we can build a powerful country, alleviate poverty and create change. It’s in my blood.

“Fast running isn’t forced. You have to relax and let the run come out of you.” —Desiree Linden. Olympic long distance runner.