Entrepreneurs and Entrepreneurial Competencies Flashcards
“What is emerging today is a class of professional entrepreneurs who rely more upon their brains than their guts and who have been trained to use both methods and technology to analyze the business environment.”
Dollinger
it is someone who brings resources, labor, materials, and other assets into combinations that make their value greater than before
economist’s point of view
entrepreneur
typically driven by certain forces such as the need to obtain or attain something, to experiment, accomplish, or perhaps to escape the authority of others
someonewho identifies opportunities, plans, mobilizes resources, manages, and assumes the risks or a business to have a positive impact on society”
management perspective
entrepreneurial era
21st century
GEM stands for…
Global Entrepreneurship Monitor
Entrepreneurs are “doing everything possible to get the odds in their favor, and they often avoid taking unnecessary risks.” (Examples of this includ, creditors giving discounted interest rates, and suppliers offering special terms of payment for the raw materials. These could all help to lessen the risks entrepreneurs have to face in managing the business.)
Calculated Risk Taker/Calculated risk-taking
is the unwavering dedication to work for the common good of the society through one’s business. (Examples of this include a willingness to use one’s own savings, sacrificing family time, and working long hours, and traveling to different places to acquire needed resources.)
Commitment
is the taking of steps to know how well they doing and how they might improve their performance. (One example is by constantly asking for comments, reactions, and suggestions from their employees and customers, then using this feedback to improve their product or services.)
Feedback-seeker
is the determination to succeed by overcoming obstacles and setbacks. Often, entrepreneurs will not easily give up when problems come their way. They will try to see opportunities even in times of crisis and look for options for the business to succeed.
(Examples of this include borrowing money from other sources to augment capital; looking for and training employees when there is an exodus of people to work abroad; and asking for the help of the government to give more support to small businesses.)
Perseverance
Drive to achieve is the internal desire to pursue and attain challenging goals. Entrepreneurs examine the situation, plan how to achieve their goal given the conditions, and then push ahead.
(Examples of this include assessing their business performance regularly based on set standards; analyzing how one’s competitors are doing in the market; and planning strategically to sustain the business)
Achievement Oriented
is the belief that together with other people, things can be done in the business. Entrepreneurs seldom waver in their convictions.
(An example of this is having a positive belief and allowing those around them to help during a crisis or nonprofitable period for the business.)
Self-confidence
is a constant awareness of opportunities that exist in everyday life. Entrepreneurs begin with the opportunities they see and utilize these opportunities. (Examples of this include studying the change in consumer preferences to improve an existing product/service or introduce a new one importing more of the needed raw materials when the government provides more tax incentives to import raw materials; and availing of additional capital when interest rates for loans from banks are low and there are no other sources accessible.)
Opportunity Oriented
is the ability to come up with something different or unique every time. This can be in terms of a new product, service, process, market, or technology. This trait is often related to creativity or thinking- out-of-the-box in any given situation to look for an opportunity for business. “(Examples include the development of new models of iPod/mobile, Phones, home delivery of products from supermarkets/drugstores, online buying of many products (books, clothes, jewelry, food); introduction of online services (class enrolment, payment of bills, deposit/withdrawal of accounts); and ethnic cuisines prepared in attractive ways by restaurants.)
Innovativeness
is their willingness to put themselves in situations where they are personally responsible for the success or failure of the business operation. This is the essence of being accountable for whatever is done by subordinates. (Examples of this include taking on the blame for mistakes of the employees; admitting to customers that there is an error that was done and that this will be corrected; and standing up for what is right for ethical issues that will put the company in a dilemma.)
Responsibility
Tolerance for failure is using it as a learning experience. Serious setbacks and disappointment become an integral part of the learning process. Entrepreneurs are realistic enough to expect such difficulties, so they do not become disappointed, discouraged, or depressed by a setback or failure. (Examples of this include confronting the source of their problems like employees or suppliers; not repeating the same mistake in the production of a product; and admitting to the customer that there is a need to improve their services so that the same or similar complaints are avoided in the future)
Resilient
At the start, the entrepreneur determines what they have, like knowledge, skills, resources, and people they know. Then, chooses from possible outcomes.
For example, an entrepreneur would like to open an “ethnic boutique shop” Instead of assuming there is an existing market and invest one’s own money, the entrepreneur would convince a financier to invest the needed money to start the business. Another course of action is to invite friends and relatives and show what unique ethnic boutique items you intend to sell. If there is a good response, the entrepreneur can just go direct or online selling instead of having a store to minimize the overhead cost of the rent. A third option is to convince
boutique shops in different locations to carry and sell ethnic items. This initial thinking process enables the entrepreneur to realize several possible outcomes to even change the original goal.
Actuate Self-Assessment and Choose Course of Action
This thinking process enables the entrepreneur to reject, comprehend, and control one’s learning and intellectual ability. It means that based on what the entrepreneur observes, feels, and interprets about what is happening in the environment, he or she will come up with a number of decision models centered on reasonable solutions and acting on the situation.
For example, an entrepreneur has several businesses in mind, like going into farming of vegetables and poultry, snack bar, bookshop, and dress shop.
Generate Multiple Decision Models
Business failure is very common among entrepreneurial firms. There are many causes of failure, such as lack of experience in doing business, inability to attract new funding, lack of new product development effort, entry into a new market without a plan, alliance with a former competitor, lack of supply of needed raw materials, family conflict over the management of the business, resignation of skilled workers, and many more. But among these reasons, the most common is insufficient experience.
Learn from Failure
They facilitate opportunity recognition, help
adapt rapidly to changes, enhance business performance, strengthen the firm’s competitive composition, and, ultimately, stir the achievement of organizational success. This implies that if enterprises are led by competent entrepreneurs, their performance will inevitably be higher.
______ are the sum total of the personality, skills, and knowledge that the entrepreneur possesses, which are necessary to effectively perform their functions and responsibilities. As reported by Lau, Man, and Chan (1999),
________ are considered a higher-level characteristic encompassing personality traits, skills, and knowledge, and, therefore, can be seen as the ability of the entrepreneur to perform a job role successfully.
Entrepreneurial competencies
Competencies related to recognizing and developing market opportunities through various means.
- Opportunity competencies
Competencies related to person-to-person or individual-to-group-based interactions, e.g., building a context of cooperation and trust, using contacts and connections, persuasive ability, communication, and interpersonal skills.
- Relationship competencies
Competencies related to different conceptual abilities, which are reflected in the behaviors of the entrepreneur, e.g., decision skills, absorbing and understanding complex information, and risk-taking, and innovativeness.
- Conceptual Competencies
Competencies related to setting, evaluating, and implementing to strategies of the firm
- Strategic competencies
