Study Identifies Personal Qualities Needed to Start a Business

The journey to entrepreneurship is filled with uncertainty, opportunity and personal growth. While many people dream of starting their own business, success often depends less on funding or flashy branding and more on personal qualities that influence how founders lead, adapt and persevere.

A recent study highlights the core traits shared by successful entrepreneurs, particularly among those launching businesses later in life or transitioning from gig work. Understanding these qualities not only helps aspiring business owners assess their readiness but also allows legal and financial professionals to better guide clients through the early stages of formation and planning.

Why Personal Traits Matter in Business Formation

While legal structure, capital and market strategy are essential, personal character often determines long-term viability. Business founders must make quick decisions, handle pressure effectively and maintain motivation despite setbacks.

This is especially true in the early years of a venture, when resources are limited and routines are still being built. Emotional and cognitive flexibility—the ability to pivot when plans falter—helps entrepreneurs keep moving forward without becoming discouraged.

Business planning attorneys often observe that clients with realistic expectations and a strong sense of personal accountability are more likely to follow through with necessary steps, such as filing paperwork, drafting agreements and establishing financial safeguards.

Traits Identified in Successful Founders

The study published by The Wall Street Journal points to several qualities commonly found in new entrepreneurs across various industries and age groups:

• Resilience: Founders must bounce back from rejection, customer complaints and market shifts.
• Risk tolerance: Entrepreneurs must accept financial uncertainty, especially during early growth stages.
• Self-motivation: Running a business often means working without supervision, rewards, or a set schedule.
• Decision-making ability: Founders make dozens of choices daily—about pricing, marketing, hiring and more.
• Financial discipline: Controlling expenses and tracking income is critical to survival and profitability.

These traits are not reserved for the young. Many successful entrepreneurs launch their businesses later in life, bringing wisdom and stability to their ventures.

The Role of Business Legal Planning

Even with the right mindset, business owners need a strong legal infrastructure. For starters, you’ll need help choosing the business entity with the liability, taxation and governance rules that best fit your needs.

A business attorney can also help with:

• Drafting operating agreements or bylaws
• Creating employment and contractor agreements
• Registering trademarks or intellectual property
• Planning succession or business transition strategies

When legal tools align with personal strengths and business goals, entrepreneurs become more confident and capable.

Planning for Long-Term Success

A solid business plan and legal foundation allow entrepreneurs to focus on what they do best: serving customers, solving problems and growing their enterprise. However, flexibility remains key.

Successful founders know that plans may change—and that adapting without abandoning their mission is part of the process.

For those considering entrepreneurship, the best first step is not just writing a business plan but honestly reflecting on personal readiness, strengths and areas where professional support is needed.

Key Takeaways

• Personal traits influence business success: Qualities like resilience, risk tolerance and motivation are essential for founders.
• Decision-making and financial discipline matter: Entrepreneurs must lead confidently and manage resources carefully.
• Older adults bring valuable experience: Many new businesses are started later in life with great success.
• Legal structure shapes business outcomes: Choosing the right entity and agreements protects long-term growth.
• Planning and flexibility go hand in hand: A well-supported business can adapt and thrive in changing conditions.

Legacy One Law Firm, APLC is an estate planning and probate administration law firm in Los Angeles, California, serving families throughout the State. Schedule a quick and easy consultation with our estate planning attorney, Sedric E. Collins, Esq., or call 323-900-5450.