This paper explores the characteristics and personal traits of young entrepreneurs and their effects on the performance of a business venture. The article also aims to explain how the personality characteristics of an entrepreneur differ from those of a non- entrepreneur. This paper is mostly based on secondary data and some observations; for the identification of these characteristics, the author has reviewed different research articles and reports concentrating on entrepreneurship, entrepreneurs and entrepreneurial personality. In this article the author has attempted to examine, discuss and summarize on 7 characteristics that are constantly and most researched about among the generation Y entrepreneurs. The discussed entrepreneurial characteristics are optimism, creativity and innovative, attitude towards self-confidence, attitude towards risk-taking, proactive personality, need for achievement and internal locus of control. The findings of this research reveal that the performance of a new business venture is positively affected by the personality traits and characteristics of the entrepreneur.