Q1: Lesson 1 | Personal Entrepreneurial Competencies Flashcards
It refers to the totality of the personality, knowledge, and other skills that a person must possess to effectively perform his/her function and responsibilities as an entrepreneur.
Personal Entrepreneurial Competencies
Refers to the entirety of a man’s inherent and acquired character traits, temperament, disposition, and attitude toward self and others, and toward social, economic, political, and environment-related issues.
Personality
Are distinguishing traits or qualities that make an entrepreneur a successful and extraordinary person.
Entrepreneurial Characteristics
These characteristics have been widely researched since the 1960s and have continued in the 1970s and 1980s. There were about 250 different personal characteristics identified during that time.
Entrepreneurial Characteristics
With continued research, observations, and tests, this number has been reduced to ten basic PECs and is classified into three major clusters which are _______, ________, and _________.
Achievement, planning, and power cluster
It is the ability of the entrepreneur to seize a business opportunity even in situations where other people see nothing but problems
Achievement Cluster: Opportunity Seeking
It is the ability to accept responsibility to complete a job for a customer, thus creating a strong impact on customer loyalty.
Achievement Cluster: Commitment
It is the determination to finish a job at any cost, even in terms of personal sacrifice. This is part of achieving his/her set goals.
Achievement Cluster: Persistence
The entrepreneur is ready to “expect the unexpected” because he/she is aware of the risks that go with the business. However, he/she is also prepared to assess and manage risks and expect earnings based on the risks taken. In business, the higher the risks, the higher the profit or loss.
Achievement Cluster: Risk-taking
Entrepreneurs have a clear vision of the future, and from this vision, they set clear, realistic, and attainable goals and objectives.
Planning Cluster: Goal Setting
Is about using information to make informed decisions and improve their knowledge of the business.
Planning Cluster: Information Seeking
The entrepreneur makes a careful and orderly plan if his/her business activities and continuously monitors the actual performance of the business against the desired standards and goals and then makes the needed decisions to achieve these.
Planning Cluster: Systematic Planning and Monitoring
Entrepreneurs have the ability to establish linkages with significant people and convince and influence others, especially customers. Customer relationship is very important because it is a sure way to build customer loyalty that can translate into good business, good profit, and good sustainability of the business.
Power Cluster: Persuasion and Networking
This means having a strong belief in oneself to complete a task or meet the challenges of the business. It involves knowing one’s strength and weaknesses. It is also about having the ability to turn weaknesses into strengths and opportunities to become better and to do better.
Power Cluster: Self-confidence
Is the ability to use one’s knowledge in doing something effectively. Is it being able to execute well what one knows.
Skills
Are the basic set of skills required to be an entrepreneur. These skills are needed to run a business successfully. They are related to the personal and interpersonal competencies of the entrepreneur and are manifested in their behavior.
Personal Entrepreneurial Skills
The ability of the entrepreneur in building harmonious relations with his staff, customers, suppliers, shareholders, investors, and other concerned parties.
Interpersonal Skills
The skill in leading others, in delegating responsibilities, in teamwork, and in encouraging and inspiring workers to follow and be committed to the vision, mission, and goals of the enterprise.
Interpersonal Skills: Leadership and Motivation
The proficiency in communicating one’s thoughts, emotions, and ideas to those concerned.
Interpersonal Skills: Communication
The ability to listen to both sides of an issue and know how to listen diligently and show empathy when listening.
Interpersonal Skills: Listening
The skill to carry out transactions and establish linkages with investors, customers, employees, and prospective clients.
Interpersonal Skills: Negotiation and Networking
The correct practice of dealing with stakeholders with respect, integrity, fairness, and truth.
Interpersonal Skills: Ethics
These are skills in which an entrepreneur can easily come up with new and creative ideas through constant practice and nurturing.
Critical and Innovative Thinking Skills (CITS)
It is seeing situations at different perspectives and coming up with an innovative idea.
CITS: Creative Thinking
It is a skill in coming up with sound solutions to problems on hand. Such ability can be acquired through knowledge, training, and experience.
CITS: Problem-solving and System Thinking
The entrepreneur sees opportunity in every situation he/she can easily spot trends, fads, and resources that are related to consumption, profitability, production, marketing, and the like.
CITS: Recognizing Opportunities
Knowledge and skills related to the efficient and effective management of the business.
Functional skills
List all the aspects under functional skills.
- The use of information technology
- Finance
- Procurement processes
- Accounting
- Production and processes
- Total quality management
- Project management
- Human resource management
- Organization and control
- Business law
- Marketing and sales
This is about being hands-on in the management of the business. This means that the entrepreneur can perform tasks such as using the computer and other technologies, setting goals for the company, planning, organizing, and decision-making.
Practical Skills
It refers to the inherited and acquired character of a person. These are components of a person’s behavior that describe his/her enduring personal characteristics. Some of these are already inherent in the person, and some are obtained through formal and informal training.
Traits
An American scholar who has done work on entrepreneurship who provides 10 entrepreneurial traits.
William Bygrave
This is knowing yourself - your strengths and weaknesses, what you know, what you can do, and what you would like to do in the future.
Self-awareness
Do you have within you the drive to make things happen? What gets you interested? What keeps you going? Having the drive to expand your knowledge, sharpen your skills, and improve yourself depends on how intense your urge and interest are.
Self-motivation
This is a trait inherent to successful entrepreneurs. It means being brave or fearless. A successful entrepreneur dares to take the risk in business. Without courage, starting a business will not happen. As they say, “No guts, go glory!”
Courage
This is a trait that makes a good impression on other people - employees, customers, investors, and other stakeholders. An entrepreneur who exudes confidence gives the impression that he/she is certain of his/her actions and be trusted and relied on.
Confidence
This is a trait that tests an entrepreneur’s tolerance in handling persistent problems involving personnel, production, and inconvenience is part of the challenges an entrepreneur may face.
Patience
This is similar to being patient and tenacious, which means an entrepreneur can hold fast and strong to his/her position, especially amid the many problems besetting the business. He/She does not give up easily, even when others are down and feeling hopeless.
Perseverance
A hardworking entrepreneur is an industrious person who does not not count the number of hours of work. He/She works with patience and intensity until the work sees its completion. As they say, the key to success is “hard work and more hard work.”
Hard Work
Decisions in business are made now and then. An entrepreneur must be knowledgeable and experienced to make the right decisions at the right time with the right people. At times when immediate decisions are to be made, he/she can follow his/her intuition and trust himself/herself on this.
Decisiveness
A successful entrepreneur is honest not only to himself/herself but to everyone related to the business. He/She does what is right, even when others are doing what is wrong.
Integrity
He/She looks at the bright side of things or situations, even in the midst of the business being down. He/She always looks forward and believes that the best is still to come. An optimistic person is a happy person.
Optimism
Is his/her way of life.
Lifestyle
