Entrepreneurship: characteristics such as generic and specific knowledge, motives, traits, self-

An Overview
images, social roles and the skills which result in venture with, survival
and/or growth (Bird, 1995).

2.3 MAJOR ENTREPRENEURIAL

COMPETENCIES - AN OVERVIEW
The knowledge of entrepreneurial competencies has been sharpened over the
last three decades. Earlier, there used to be a firm belief that people with
business family background could become successful entrepreneurs.
Subsequently, there was a belief that individuals need technical knowhow, as
a major requirement for being successful in launching all industrial ventures.
In order to understand clearly what it takes to be a successful entrepreneur,
The Entrepreneurship Development Institute of India took up a research
project based on major studies done in this area; following is a list of major
competencies that contributes towards top performance:

i) Initiative: All entrepreneurs take action

• That go beyond job requirements or the demand of the situation;
• Does things before being asked or forced by the events;
• Acts to extend the business into new areas, products; or services.
ii) Sees and Acts on Opportunities
• Looks for and takes action on opportunities;
• Feels and acts on opportunities (business, educational or personal
growth);
• Seizes unusual opportunities to obtain financing, equipment, land,
work space or assistance.
iii) Persistence
• Takes repeated actions to overcome obstacles that get in the way of
reaching goals;
• Takes action persistently till the problem is solved;
• Takes repeated or different actions to overcome obstacles.
iv) Problem Solving
• Identifies new and potentially unique ideas to reach goals;
• Switches to an alternative strategy to reach a goal;
• Generates new ideas or innovative solutions.
v) Self-Confidence
• Has a strong belief in self and own abilities;
• Expresses confidence in his/her own abilities to complete a task or
meet a challenge;
• Sticks with own judgement in the face of opposition or early lack of
success;
• Does something that s/he says is risky.
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vi) Information Seeking Entrepreneurial
Competencies
• Takes action on his/her own to get information to help reach
objectives or solve problems;
• Does personal research on how to provide a product or service;
• Consults experts for business or technical advice;
• Seeks information or asks questions to clarify what is wanted or
needed;
• Personally undertakes research, analysis, or investigation;
• Uses contacts or information networks to obtain useful information;
• Uses internet to get information.
vii) Concern for High Quality of Work
• Acts to do things that meet or beat existing standards of excellence;
• States a desire to produce work of high quality;
• Compares his/her own work or company’s work with that of others;
• Never compromise on quality of work.
viii) Commitment to Work Contract
• Places the highest priority on getting a job completed;
• Makes a personal sacrifice or expends extraordinary effort to
complete a job;
• Accepts full responsibility for problems in completing a job for
others;
• Pitches in with workers or works in their place to get the job done;
• Expresses a concern for satisfying the customer.
ix) Efficiency Orientation
• Finds ways to do things faster or with fewer resources or at a lower
cost;
• Looks for or finds ways to do things faster or at less cost;
• Uses information or business tools to improve efficiency;
• Expresses concern about costs vs benefits of some improvement,
change, or course of action.
x) Systematic Planning
• Develops and uses logical, step-by-step plans to reach goals;
• Plans by breaking a large task down into sub-tasks;
• Develops plans that anticipate obstacles;
• Evaluates alternatives;
• Takes a logical and systematic approach to activities.
xi) Assertiveness
• Confronts problems and issues with others directly;
• Confronts problems with others directly; 33
Entrepreneurship: • Tells others what they have to do;
An Overview
• Reprimands or disciplines those failing to perform as expected.
xii) Persuasion
• Successfully persuades others;
• Convinces someone to buy a product or service;
• Convinces someone to provide financing;
• Convinces someone to do something else that s/he would like that
person to do;
• Asserts own competence, reliability, or other personal or company
qualities;
• Asserts strong confidence in his/her own company’s or
organization’s products or services.
xiii) Use of Influence Strategies
• Uses variety of strategies to affect others;
• Acts to develop business contacts;
• Uses influential people as agents to accomplish own objectives;
• Selectively limits the information given to others.
xiv) Monitoring
• Develops or uses procedures to ensure that work is completed or that
work meets standards or quality;
• Personally supervises all aspects of a project.
xv) Concern for Employee Welfare
• Takes action to improve the welfare of employees;
• Takes positive action in response to employees’ personal concerns;
• Expresses concern about the welfare of employees.
xvi) Economical
• Tries to complete the work according to planned expenditure;
• Tries to save money;
• Tries not to be extravagant.
xvii) Ethical
• Tries to produce without destroying environment;
• Not to cheat anyone else’s work.

Are these Competencies Independent?

All the competencies described above are instrumental in making a person a
successful entrepreneur. Through these competencies, we can discriminate
between successful entrepreneurs and average ones. All these competencies
are interrelated. Depending on the nature and content of these competencies,
they could be clubbed into various clusters. These competencies could be
developed through systematic training.
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Activity 2 Entrepreneurial
Competencies
Some people believe that it is the traits of a person that help them in
succeeding as an entrepreneur. Look at the below mentioned list of
characteristics that you think are most important for a person to have in order
to succeed as an entrepreneur. Also list 6 traits, which you think, are the least
important in this regard.
Most Important Least Important

1) High academic qualification ………………….. …………………..

2) Physical fitness ………………….. …………………..
3) Need to achieve ………………….. …………………..

4) Creativity ………………….. …………………..

5) Competitiveness ………………….. …………………..
6) Persistence ………………….. …………………..

7) Patience ………………….. …………………..

8) Leadership ………………….. …………………..
9) Organizing ability ………………….. …………………..

10) Need to have power over others ………………….. …………………..

11) Desire for money ………………….. …………………..

12) Independence ………………….. …………………..

13) Coverage ………………….. …………………..

14) Positive outlook ………………….. …………………..

2.4 DEVELOPING ENTREPRENEURIAL

COMPETENCIES
In earlier discussions we have seen that competencies do result in a superior
performance. Many studies have proved that entrepreneurial competency can
be inculcated through proper education and training. To inculcate
entrepreneurial competency in an individual following five steps can be taken
into consideration. These steps are discussed in brief as follows:

Stage 1: Understanding and Recognizing

The first step towards acquiring a new behavior is to understand what a
particular competence means. With such an understanding one would then be
able to recognize the competence when someone exhibits.

Step 2: Self Assessment

Having understood a given competence and having been able to recognize the
same when someone else exhibits a given competence, the next step is to find
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