Post on 23-Oct-2014
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ENTREPRENEURIAL COMPETENCIES
The term entrepreneurial competencies refers to the key characteristics that should be possessed by successful entrepreneurs in order to perform entrepreneurial functions effectively
KNOWLEDGE
SKILL
MOTIVE
ENTREPRENEURAL COMPETENCIES
Initiative
Sees and acts on opportunities
Persistence
Information seeking
Concern for high quality of work
Commitment to work contract
Efficiency orientation
Systematic planning
Problem solving
Self-confidence
Assertiveness
Persuasion
Use of influence strategies
INITIATIVE The entrepreneur should be able to take
actions that go beyond his job requirements and to act faster. He is always ahead of others and able to lead the business or industry.
Examples: Does things before being asked or compelled
by the situation Acts to extend the business into newareas, products or se
Sees and acts on opportunities
An entrepreneur always search for and takes action on opportunities
Examples:Sees and acts on new
businessopportunitiesSeizes unusual opportunities toobtain financing, equipment, land,workspace or assistance
PERSISTENCE
An entrepreneur is able to make repeated efforts or to take different actions to overcome an obstacle that gets in the way of reaching his/her goals.
Examples:Takes repeated or different course of action to
overcome a problem or obstacle Never give-up easily
INFORMATION SEEKING An entrepreneur is able to take action on how to get
information in order to help the business to achieve its objectives or to solve business problems
Examples: Conduct personal research on a product or
serviceConsults experts or relevant authorities to get relevant informationPersonally undertakes market research, analysis or investigationUses contacts or information networks to obtainuseful information
CONCERN FOR HIGH QUALITY OF WORK An entrepreneur acts to do things that meet a
certain standard of excellence which gives him greater satisfaction
Examples:States a desire to produce or sell a top or better
quality product or serviceCompares own work or own company’s work favorably to that of competitorsHigh quality would ensure repeated purchasefrom existing customers and also anopportunity to get new customers
COMMITMENT TO WORK CONTRACT An entrepreneur places the highest priority
on getting a job completed according to the deadline.
Examples:Makes personal sacrifices or expends
extraordinary effort to complete a jobAccepts full responsibility for problems incompleting a job for customersExpresses a concern for satisfying thecustomer
EFFICIENCY ORIENTATION A successful entrepreneur always finds ways
to do things faster, using fewer resources, and keep cost low.
Examples: Looks for or finds ways to do things faster or
at lesser cost Uses information or business management tools to improve efficiency Expresses concern about costs vs. benefits derives from any improvement, change or course of action
SYSTEMATIC PLANNING An entrepreneur develops and uses logical ,
step-by-step plans to reach his/her business goals
Examples: Plans by breaking a large task down into
smaller tasksDevelops alternative plans which anticipateobstaclesEvaluate among available alternativesTakes a logical and systematic approach in the planning activities
PROBLEM SOLVING A successful entrepreneur identifies new and
potentially unique solution to solve business problems which could affect the business objectives.
Examples: Switches to an alternative strategy
toovercome problems Always generates new ideas or innovative solutions
SELF CONFIDENCE A successful entrepreneur has a strong belief
in oneself and own abilities.
Examples:Expresses confidence in own ability to
complete a task or meet a challengeSticks with own judgment in the face
of opposition or lack of success
ASSERTIVENESS An entrepreneur confronts problems and
issues with others directly.
Examples: Confronts problems with others directly Tells subordinates what is expected of themReprimands or disciplines those who failed
to perform as expected
PERSUASION An entrepreneur should be able to persuade or
influence others for mobilizing resources, obtaining inputs, organizing productions and selling of his products or services.
Examples: Convince someone to buy a product Convince
someone to provide financing Asserts own competence, reliability or other personal or company qualities (testimony) Asserts strong confidence in own company’s products or service
USE OF INFLUENTIAL STRATEGIESAn entrepreneur is able to make use of influential
people to reach his business goals.
Examples: Acts to develop business contactsUses influential people as agents to accomplish own
objectives (getting contracts)Selectively limits the information given to others Uses permissible strategy to influence or persuade
others
MAJOR CONTRIBUTORS IN ENTREPRENEURAL COMPETENCIESHOOD & YOUNG(1993)
They focused on 4 primary areas which are as follows-
Content Skills and behaviour Mentality Personality
CHANDLER &JANSEN(1992)
According to them , the founder must assume the following three roles----
Entrepreneurial role Managerial role Technical-Functional role
FIVE COMPETENCY AREAS-------Human and conceptual competenciesAbility to recognise oppurtunitiesDrive to see venture through
accomplishmentsTechnical-functional competenciesPolitical competencies
Firm performa
nce
Entrepreneural
competencies
Competitive scope
Organisational
capabilities
SME model with respect to entrepreneural competencies
CONCLUSIONA pertinent starting point in conceptualizing
entrepreneurial competencies is to first define competence. A competence is simply the ability, which an individual requires to do assigned job. In the words of Woodruffe (1990) competence is “A work related concept which refers to areas of work at which the person is competent”. Therefore, competent employees or individuals are those who meet their performance expectations