The Effects of The Characteristics of Entrepreneurs on the Creation Process of SMEs

Abstract

The theme of this review is to elucidate how entrepreneurial traits affect the start-up process of small and medium-sized enterprises (SMEs), which aims to learn more about the relationship between entrepreneurial characteristics and the early stages of SMEs. While most of the previous literature has focused on the mode of operation of the company, there is very little literature on the early stages of entrepreneurship in SMEs which play a vital role in the world economy. It is hoped that this review will help to provide deep insights to those who wish to start their own business. By identifying gaps in existing research and focusing on how entrepreneurial characteristics affect the start-up stage of SMEs creation, the review provides direction for future research and ideas for entrepreneurs and venture capitalists. The review finds that different types of entrepreneurs influence the future direction of an enterprise, and that entrepreneurial personality qualities and business development are positively linked. The extroversion of entrepreneurs in the Big Five personality theory makes entrepreneurs more willing to interact and collaborate with others, thus influencing the performance and growth of the start-up.