Entrepreneurship is an independent activity carried out at one’s own risk, aimed at gaining regular profit from the use of property, sale of goods, performing works or services by persons registered in the manner prescribed by law. (LI, Xiang, 2009). In recent years, a significant relationship between entrepreneurial competencies and firm performance has been reported in empirical studies. So, it very crucial that entrepreneurs possess certain competencies to sustain their business and stand out in a competitive ad challenging market. In light of the topic, in this essay, I have mentioned some of the skills and competencies that need to be inherent to become a successful entrepreneur.
Creativity and innovation
Innovation and creativity are the most important core values of entrepreneurs while creativity guide and entrepreneur to dream about inventive plans to improve a current item or support or comprehend a problem, innovation gets them to put their ideas into practical use. An entrepreneur exhibits innovation by being unique and original in their solution contributing critical inputs for a new idea develop or improve the existing products or services, evaluating the new ideas, focusing on the solutions even when failure occurs, go for a continuous search for problems in the society so that they can solve them.
Enterprise launching and management
Entrepreneurs should possess this competency to identify the opportunities and make best use of the resources at their disposal by launching an enterprise. This trait is what stands them apart from the crowd. Managing an enterprise is also another significant competency that an entrepreneur should possess. The success of the enterprise depends on the level of and entrepreneur’s expertise in enterprise management. They should be well acquainted with various functions in the management like planning, organizing, staffing directing, leadership, communication and motivation.
The amount of information and organization has at its disposal plays a crucial role in the success of the organization. The entrepreneur should gather the information about changing trends in consumer behavior, market demand, new technology being introduced, competitor analysis etc (Aldrich, H. and Zwirner, C. 1986.). This helps them in decision making process thus driving the organization towards its goal.
This is one of the basic competencies that every entrepreneur should possess. Taking initiative is the starting point in an entrepreneurial process. The entrepreneur should be vigilant of the consumer behavior, market dynamics, launch of new products to spot an opportunity (Mitchelmore, n.d.). Once the opportunity is spotted, they should take the initiative to start the entrepreneurial process. Once the entrepreneurial process is started, they should increase the movement to set up.
A significant number of the entrepreneurial ventures are unique and also new. From the beginning of the undertaking to the phase where the item or product is brought into the market, there is a ton of vulnerability related with debt and price. They have to go through many hurdles and roadblocks during this, so it is essential to guide and motivate the team towards the goal to achieve. Thus, the entrepreneurs should have successful leadership and administration characteristics to keep the group zeroed in on the objective of the undertaking. As a pioneer, the entrepreneur should show solid determination powerful business acumen and communication skills to drive the enterprise towards the goal during difficult times.
Many of the entrepreneurial ventures are unique and new so they need a very close watch. Once the product or service is in place it should be marketed. If the market for the new product does not exist, the entrepreneur should find new ways to create the market for selling their products or services. During this process they encounter many hurdles. The entrepreneur should be highly persistent in their efforts and should not give up. This persistence is a vital entrepreneurial competency that an entrepreneur should possess.
Persuasion and influencing others
While performing various entrepreneurial functions the entrepreneur has to deal with various individuals and institutions. Thus, they should be able to persuade their ideas and influence others so that other people are ready to accept their products or services. To do so they have to be well acquainted with the annuity features of their products or services and how their products are much better than those prevailing in the market.
The entrepreneurs start their enterprise to commercialize a new product or service. As the product or service is new and the enterprise is just started there will be lot of obstacles, they would come across in the path of their goal they should be capable of coming up with a number of different solutions to the problems at hand. They should seek alternative strategies and solutions. They should process strong problem-solving skills to achieve this.
They should have a tendency to maintain quality standards in their products or services. They can achieve this by establishing their own standards or adopt the standards set by others. Maintaining high quality standards will help them to win the consumer loyalty.
Risk taking and risk management
As the area into which the entrepreneur is venturing is new there will be lot of uncertainty associated at various levels. This poses risk at various stages of entrepreneurial process. The entrepreneur should be risk-taking to move ahead, at the same time after they have started the enterprise and the risk surfaces, they should be capable of managing the risk.
Every enterprise requires the all ability of resources like time, funds and labor. The entrepreneurs assemble reserves significantly from their own investment funds they put every one of their endeavors and time to establish the end price. Any deviation in the planning of the enterprise activities will be lamentable and bring about the breakdown of the fantasy. So as to put every one of these assets to the ideal use and to spend them the correct way they should prepare detailed systematic planning. They should strictly implement this systematic planning to drag all of their resources towards the goal.
Entrepreneurial competence also includes factors related to entrepreneurs’ motivation, such as the need for achievement, independence, and personal growth, among others, combined with personal characteristics such as innovation, creativity, risk propensity, and proactivity (Jain, 2011). For (sanchez,2012), entrepreneurship competencies make individuals more alert to environmental conditions and enhance their ability to adapt internal resources to gain competitive advantage.
Aldrich, H. and Zimrner, C. 1986. Entrepreneurship through social networks, in D.L. Sexton and R.W. Smilor (Eds.). The Art and Science of Entrepreneurship. 2-23. Cambridge, MA: Ballinger PublishingCo
LI, Xiang. Entrepreneurial Competencies as an Entrepreneurial Distinctive: An Examination of the Competency Approach in Defining Entrepreneurs. (2009).
Mitchelmore, Swan & Rowley, Jennifer. (2010). Entrepreneurial Competencies: A Literature Review and Development Agenda. International Journal of Entrepreneurial Behaviors & Research. 16. 92-111. 10.1108/13552551011026995.
Jain, R. K. Entrepreneurial competencies: a meta-analysis and comprehensive conceptualization for future research. Vision, v. 15, n. 2, p. 127-152, 2011
SÁNCHEZ, J. The influence of entrepreneurial competencies on small firm performance. Revista Latinoamericana de Psicología, v. 44, n. 2, p. 165-177, 2012
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