What is entrepreneurial competency?
Entrepreneurial competency considers knowledge, skills, behaviors, and motives. By using these essential components entrepreneurs start their businesses, manage them, and exploit them for the value of the businesses. It is the ability to make venture ideas into reality. Using entrepreneurial competency in a dynamic world, a business person challenges the race of the unpredictable world of business.
It plays a leading role in the success of the business. It is the best characteristics or qualities of successful business persons. In the business sector, some aspects have come naturally to certain persons, and many can be cultivated through training, education, and experiences. In earlier times, many people believed that entrepreneurs are born not made, but nowadays people believe that entrepreneurs are made not born. To accept business challenges business person properly refine their competencies.
The essential competencies of entrepreneurs are looking for opportunities, being quality conscious, committed to work, adequate planner, solution seeker, having self-confidence, etc.
Components of Entrepreneurial Competencies
There are different types of components which can be described as follows.
Knowledge
Knowledge is the collection of concepts, ideas, meaning, understanding, etc. It is a valuable aspect of performing the job. Absent of knowledge normal people could not properly commence the business. Knowledge is the best remedy for starting a venture and resolving the problems. It can be acquired by reading, training, observing, experiences, and so on. Business people pursue business-related knowledge like technical, operational, management, and commercial. With this knowledge, business people can run their ventures smoothly.
Skills
Skills are the ability to perform the task. Business people grab their abilities through training and practice. It is the best aspect to do the job about as the business nature. Skills provide guidelines to do tasks as demanded by business. Without skills, knowledge could not complete the task. Hence, skills translate knowledge into practice. Skills may be intellectual, mental, and perceptual. Using the best skills business person completes the job to achieve target results.
Opportunity Recognition
The business person possesses a keen ability to grab the venture-related opportunity. They identify potential opportunities in the market as the market condition. Such opportunities are beneficiary for the business person. The opportunity provides the best resolution to fulfill the market gap as the demand of the customers. It is acquired by research, trend analysis, issues analysis, and so on.
Motives
It is the business people’s reason for choosing the best behaviors. By using their inner capability, sense, skills, and knowledge they select suitable behaviors to commence the venture. Motives support to drive the business in the market. It is the internal competency of the business person.
Types of Entrepreneurial Competencies
There are different types of entrepreneurial competencies. It can be described as follows.
Technical Competency
Technical competencies refer to the specialized knowledge and skills about a particular task. Business people use the best technicians to perform particular jobs to reduce the cost and increase productivity. In the modern generation technologies are innovated continuously and technicians are developed as the market of technology uses.
Managerial Competency
It involves the ability to manage various aspects of business operations. Entrepreneurs organize, coordinate, cooperate, and manage the business task. All the functions of the businesses, they managed effectively and fruitfully. Managerial competency includes skills in planning, organizing, resource allocation, decision-making, problem-solving, and other managerial sectors. It supports to smooth drive of the business to achieve the aimed results.
Financial Competency
Financial Competency is related to managing monetary aspects. A business person selects, analyzes, and understands the financial capital to make budgetary planning. They make a suitable budget for the business nature to compete in the competitive market. It consists of skills in pricing, budgeting, investment, cash flow management, financial analysis, etc. Such competency supports to invest in the revenue generation sector.
Interpersonal Competency
Interpersonal competency is the capacity to understand and deal with people. It helps to coordinate, cooperate, negotiate, and supervise the people for the issues management. Understanding the behaviors of the people it supports to deal with their nature. Entrepreneurs must have such competency for success in the venture.
Importance of Entrepreneurial Competency
For success in business ventures, entrepreneurs can compete and survive in the market. There are some importance of entrepreneurial competency as follows.
Entrepreneurs Development
Entrepreneurial competencies include skills, knowledge, attitudes, and motives. 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.
Creativity and Innovation
Entrepreneurs accept 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.
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 inspires and motivates others to follow and join their business activities. It takes initiation to perform a particular task. 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.
Read more: Concept of entrepreneurs
Read more: Concept of entrepreneurship