What Entrepreneurship is: Competencies and Development
We most have to understand What Entrepreneurship is because all new ventures do not succeed. Some entrepreneurs are successful while others are failures. Entrepreneurship competencies play a leading role in making entrepreneurs successful.
Competence is an underlying personal characteristic which leads to superior performance. It is a combination of knowledge, skills, attitudes, and motives. The competencies possessed by an entrepreneur which lead to superior performance are known as entrepreneurial competencies. They are required for setting-up and operating new business ventures.
Entrepreneurial competencies equip a person for an entrepreneurial career. Entrepreneurs need to build competencies that differentiate them from their competitors.
Components of Entrepreneurial Competencies
In earlier days, it was believed that entrepreneurs were born not made. However, in modern times, it is believed that entrepreneurs are made, not born. Entrepreneurial competencies can be acquired through education, training, and experience.
The components of entrepreneurial competencies are as following:
It is the collection and retention of information in one’s mind. It is what an entrepreneur needs to know. Knowledge can be acquired by reading, listening, talking and observing. It can be technical, professional and commercial. However, knowledge alone is not sufficient for entrepreneurial success. It should be translated into practice through skills.
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They are the ability to do jobs for achieving results. They are acquired by practice. They can be manual, intellectual, mental, perceptual and social. Skills translate knowledge into practice.
They are learned predisposition of entrepreneurs to respond towards objects, people or events. They can be either favorable or unfavorable. They tend to persist but can be changed. Attitudes motivate entrepreneurs to translate knowledge into practice through skills. Entrepreneurs must have positive attitudes toward pursing excellence. They should have a commitment to goal achievement.
They are internal drives in an entrepreneur. They are urged to achieve goals. Entrepreneurial behavior is the result of motivates. Entrepreneurs are stimulated by motives to engage in goal-seeking behavior by performing better and better to achieve results.
Types of Entrepreneurial Competencies
Competencies are essential for entrepreneurial excellence. Entrepreneurial competencies can be of three types:
- Analytical Competency: It is the ability to identify, analyze, and solve problems under conditions of risks and uncertainty. Entrepreneurs are risk-takers.
- Interpersonal Competency: It is the ability to lead, influence, communicate, supervise, negotiate, and control people at all levels. It is the ability to get along with people and motivate people to perform jobs. Entrepreneurs must effectively manage people.
- Emotional Competency: It is the capacity to get stimulated by emotional and interpersonal crises. It involves bearing a high level of responsibility. Entrepreneurs should have the persistence to succeed in their purpose. Entrepreneurship competencies are interrelated. A single competency may not produce the desired effect. It is the combined effect of knowledge, skills, attitudes, and motives that result in superior entrepreneurial performance.
Ten Competencies of Successful Entrepreneurs
- Initiative: Does things before being asked; enterprising risk taker.
- Assertiveness: Confirms problems directly with persistence.
- Achievement: Sees and acts on opportunities: high need to achieve.
- Efficiency: Does things faster and low cost.
- High Quality: Concern for high-quality work.
- Systematic Planning: Sets goals and ways of achieving them.
- Monitoring: Ensures that standards are met.
- Commitment: Marketing extraordinary efforts to achieve goals.
- Relationships: Builds long-term relationships.
- Creativity: Creative thinkers with self-confidences.
Need for Entrepreneurship Competency Development (ECD)
What Entrepreneurship is? It is believed that entrepreneurs are made. Entrepreneurs possess competencies in terms of knowledge, skills, attitudes, and motives. Such competencies can be developed through education, training, and experience. Competencies produce superior entrepreneurial performance.
The need for ECD is clear from the following points:
Develop Entrepreneurs: ECD programs are essential for developing and improving competencies of entrepreneurs. ECD is the key to entrepreneurs development. It strengthens the entrepreneur’s self-confidence to start a new venture.
Develop Achievement Motivation: ECD is needed to develop motivation in potential entrepreneurs. Suitable education and training programs provide motivation to achieve superior performance. The right attitude is promoted.
Change Infusion: ECD develops entrepreneurs as agents of change. They infuse change through innovation, new materials, new products, and new technologies.
Provide Management Know-how: Entrepreneurs need managerial knowledge and skills to get the jobs done. ECD programs are needed to develop managerial skills in entrepreneurs to make decisions and solve problems.
Information: ECD programs are the storehouse of information about various matters related to entrepreneurship. Entrepreneurs get information related to sources of finance, market opportunities, incentives, facilities, and risks. Legal information related to entrepreneurial activities is also obtained.
– ECD is needed to promote entrepreneurship climate and culture in the country. It provides competencies to potential entrepreneurs. It sharpens the competencies of current entrepreneurs.