Entrepreneurial competency is the skills or traits of the entrepreneurs to compete in the business environment. These competencies support to upgrade of the range of businesses. For success in business ventures, entrepreneurs optimize such attributes. The importance of entrepreneurial competency can be described as follows.
Importance of Entrepreneurial Competency
It can be expressed in this way.
Entrepreneurs Development
Entrepreneurial competencies include skills, knowledge, attitudes, and motives. By using these attributes people can commence the business venture. Entrepreneur development is a risk-bearing activity. If one cannot utilize proper management of resources and entrepreneurial competencies business person may not be successful. These are essentials for developing, modifying, and improving the competencies of business people. It supports initiating new venture businesses and gives confidence to start a business.
Competencies are initiative traits for new business people. Condition of the market scenario business person changes the direction of the business and meets the gap in the market. It would be possible by such competencies.
Creativity and Innovation
The market changes gradually as the customer desires and nature. Business people must accept such changes to survive in the competitive business environment. They use the challenges considering their capacity and ability. As their nature and motives, they focus their business and outside of their business to install new ideas. Creating and innovating novel ideas supports competition in the market and helps to resolve challenges.
Creativity and Innovation help to install new market products and services, by this, it establishes new market status and also attracts new customers. Day by day new desires of customers and market competition are increasing. To address such gaps skilled business people use entrepreneurial competencies.
Adaptability
Every day new challenges and issues are arrived in the business market. As the market nature business people accept the new market aspects and perceptions. The business sector is constantly evolving, with technological advancement, new challenges and issues, changing rules and regulations, and the desires and behaviors of customers. As such a market nature, successful entrepreneurs must be flexible to accept the market environment.
Leadership
Leadership is the role model for others. It inspires and motivates others to follow and join their business activities. It takes initiation to perform a particular task. The knowledgeable and skilled business person who observes the customers and market landscape. Markets are driven by an intuitive person who has entrepreneurial competencies. Strong leadership skills entrepreneurs attract investors and make a loyal customer base to compete in the competitive market. It is the driving force to run the business venture.
Leaders always do first and then teach others. Accepting leaders steps other people to make business commencement. It is not easy to follow steps for beginners, hence new entrepreneurs develop their competencies as the market nature.
Financial Management
Business person manages financial capital addressing financial rules and policies. To commence the business venture financing is prominent. The importance of financial management helps to make a realistic budget and make assurance to optimal use them. One by one every step is crucial to starting a business at an economic cost. A competent business person monitors the cash flow of the business.
By analyzing such cash flow, income statement, and so on. They change the direction of utilizing resources and make proper strategic plans to use financial capital. Income and expenses are changed as the market status of the business.
Risk Management
Businesses are risk-bearing activities. In the business sector risks and opportunities are constantly arrived. The competent business person grabs the opportunities of their business nature and resolves the risks by their competencies. Risks may be manmade or natural, successful entrepreneurs analyze and evaluate such risks and mitigate them to maximize their productivity.
Successful business persons are skilled in assessing and managing risk effectively. Competencies are the ability to balance risk and make success in business. Such capacity supports compete in the market for the long term.
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