Understanding Entrepreneurial Competencies and their Impact

 
CHAPTER 2
CHAPTER 2
COMPETENCIES OF
COMPETENCIES OF
ENTREPRENEURSHIP
ENTREPRENEURSHIP
 
ENTREPRENEURIAL
ENTREPRENEURIAL
COMPETENCIES
COMPETENCIES
 
The term “Entrepreneurial Competencies”
refers to the abilities or skills that should
be possessed by successful entrepreneurs
in order to perform entrepreneurial
functions effectively.
 
PERSONAL ENTREPRENEURIAL
PERSONAL ENTREPRENEURIAL
COMPETENCIES (PECs)_
COMPETENCIES (PECs)_
 
Entrepreneurial Competencies
Entrepreneurial Competencies
 
McClelland and McBer (1985
McClelland and McBer (1985
)
)
 
01
 
06
 
05
 
02
 
03
 
04
 
Efficiency orientation
 
Information seeking
 
Systematic planning
 
Sees and acts on opportunities
 
Persistence
 
Initiative
 
Entrepreneurial Competencies
Entrepreneurial Competencies
 
McClelland and McBer (1985
McClelland and McBer (1985
)
)
 
07
 
12
 
11
 
08
 
09
 
10
 
Use of influence strategies
 
Persuasion
 
Self-confidence
 
Assertiveness
 
Problem solving
 
IMPORTANCE OF
IMPORTANCE OF
ENTREPRENEURSHIP
ENTREPRENEURSHIP
 
MINDMAP DIAGRAM
 
WRITE YOUR SUBTITLE HERE
 
Provide
avenues
 
Healthy
entrepreneurial
culture
 
Enterprising
Country
 
Allocate resources
productively
and efficiently
 
Create
wealth
 
Importance
 
 
1.
P
r
o
v
i
d
i
n
g
 
l
e
a
d
e
r
s
h
i
p
 
i
n
 
t
h
e
 
i
n
d
u
s
t
r
i
a
l
d
e
v
e
l
o
p
m
e
n
t
 
An entrepreneur is the combination of two
skills – an ideal person and a manager
 
There must be persons who have vision,
initiative and drive to utilize the resources.
 
These qualities and abilities are combined
only in entrepreneurs.
 
How Entrepreneurship Impacts a Nation?
How Entrepreneurship Impacts a Nation?
 
2.
I
n
t
r
o
d
u
c
i
n
g
 
i
n
n
o
v
a
t
i
o
n
s
 
a
n
d
 
c
h
a
n
g
e
s
 
Entrepreneur always looks for changes
 
Entrepreneur not only combines the
factors of production but also introduces
new combinations of factors.
 
Responds to changes and exploits it as an
opportunity.
 
3.
I
n
c
r
e
a
s
i
n
g
 
p
r
o
d
u
c
t
i
v
i
t
y
 
The entrepreneur allocates scarce
resources & co-ordinates the various
factors of production.
 
An entrepreneur employs each factor in
the right proportion by using the best
technical devices, division of labour, etc.
 
An entrepreneur tries to eliminate waste in
production.
 
4.
P
r
o
v
i
d
i
n
g
 
e
m
p
l
o
y
m
e
n
t
 
Entrepreneurship generates employment
and income.
 
It also helps to reduce unemployment
which is the root of all socio-economic
problems.
 
5.
I
n
c
r
e
a
s
i
n
g
 
t
h
e
 
s
t
a
n
d
a
r
d
 
o
f
 
l
i
v
i
n
g
 
o
f
 
t
h
e
p
e
o
p
l
e
 
Entrepreneurs can contribute much to the
growth of national income of a country by
exploiting natural resources, creating
wealth and generating employment and
income.
 
A country is said to have achieved
economic development only when its
people enjoy a higher standard of living.
 
FACTORS AFFECTING
FACTORS AFFECTING
ENTREPRENEURSHIP
ENTREPRENEURSHIP
 
FACTORS AFFECTING
ENTREPRENEURIAL GROWTH
 
1.
E
c
o
n
o
m
i
c
 
f
a
c
t
o
r
s
 
 
From a strictly economic viewpoint, it can be said that the
same factors which promote economic development
account for the emergence of entrepreneurship also.
 
Capital:
Capital is one of the most important prerequisites
to establish an enterprise.
Availability of capital facilitates the entrepreneur
to bring together the land of one, machine of
another and raw material of yet another to
combine them to produce goods.
Capital is therefore, regarded as lubricant to the
process of production/render services.
 
 
Labour:
The quality rather quantity of labour in another
factor which influences the emergence of
entrepreneurship.
 
Raw Materials:
The necessity of raw material hardly needs any
emphasis for establishing any industrial activity
and therefore it influences the emergence of
entrepreneurship.
In the absence of raw materials, neither any
enterprise can be established nor an entrepreneur
can emerged.
 
Market:
The fact remains that the potential of the market
constitutes the major determinant of probable
rewards from entrepreneurial function.
The size and composition of market both influence
entrepreneurship in their own ways.
 
2.
N
o
n
-
e
c
o
n
o
m
i
c
 
f
a
c
t
o
r
s
 
Social Conditions
 
Legitimacy of Entrepreneurship: 
The proponents of non-
economic factors give emphasis to the relevance of a system
of norms and values within a socio-cultural setting for the
emergence of entrepreneurship.
 
Social Mobility: 
Social mobility involves the degree of
mobility, both social and geographical, and the nature of
mobility channels within a system.
 
Security: 
Security is a significant factor for entrepreneurial
development. If individuals are fearful of losing their
economic assets or of being subjected to various negative
sanctions, they will not be inclined to increase their insecurity
by behaving entrepreneurially.
 
Psychological Factor
 
Need Achievement:
If the average level of need achievement in a
society is relatively high, one would expect a
relatively high amount of entrepreneurship
development in the society.
 
3.
G
o
v
e
r
n
m
e
n
t
 
a
c
t
i
o
n
The government by its actions or failure to act also does
influence both the economic and non-economic factors
for entrepreneurship development.
 
 Any interested government in economic can help,
through its clear expressed industrial policy, promote
entrepreneurship in one way or other, by creating basic
facilities, utilities and services and by providing incentives
and concessions.
 
The government can provide the prospective
entrepreneurs a facilitative socio-economic setting. Such
conductive setting minimizes the risks which the
entrepreneurs are to encounter.
 
The supportive actions of the government appears as the
most conductive to the entrepreneurial growth.
 
Thanks!
Any questions?
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Entrepreneurial competencies are crucial skills possessed by successful entrepreneurs for effective performance. McClelland and McBer identified key competencies like initiative, systematic planning, problem-solving, and more. Entrepreneurship impacts a nation by providing leadership in industrial development, introducing innovations, and improving productivity.


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  1. CHAPTER 2 COMPETENCIES OF ENTREPRENEURSHIP

  2. ENTREPRENEURIAL COMPETENCIES

  3. PERSONAL ENTREPRENEURIAL COMPETENCIES (PECs)_ The term Entrepreneurial Competencies refers to the abilities or skills that should be possessed by successful entrepreneurs in order to perform functions effectively. entrepreneurial

  4. Entrepreneurial Competencies McClelland and McBer (1985) Initiative Systematic planning 01 06 02 03 04 Sees and acts on opportunities Efficiency orientation 05 Persistence Information seeking

  5. Entrepreneurial Competencies McClelland and McBer (1985) Problem solving 07 12 08 09 10 Self-confidence Use of influence strategies 11 Assertiveness Persuasion

  6. IMPORTANCE OF ENTREPRENEURSHIP

  7. MINDMAP DIAGRAM WRITE YOUR SUBTITLE HERE Enterprising Country Allocate resources productively and efficiently Importance Create wealth Healthy entrepreneurial culture Provide avenues

  8. How Entrepreneurship Impacts a Nation? 1. Providing leadership in the industrial development An entrepreneur is the combination of two skills an ideal person and a manager There must be persons who have vision, initiative and drive to utilize the resources. These qualities and abilities are combined only in entrepreneurs.

  9. 2. Introducing innovations and changes Entrepreneur always looks for changes Entrepreneur not only combines the factors of production but also introduces new combinations of factors. Responds to changes and exploits it as an opportunity.

  10. 3. Increasing productivity The resources & co-ordinates the various factors of production. entrepreneur allocates scarce An entrepreneur employs each factor in the right proportion by using the best technical devices, division of labour, etc. An entrepreneur tries to eliminate waste in production.

  11. 4. Providing employment Entrepreneurship generates employment and income. It also helps to reduce unemployment which is the root of all socio-economic problems.

  12. 5. Increasing the standard of living of the people Entrepreneurs can contribute much to the growth of national income of a country by exploiting natural resources, creating wealth and generating employment and income. A country is said to have achieved economic development only when its people enjoy a higher standard of living.

  13. FACTORS AFFECTING ENTREPRENEURSHIP

  14. FACTORS AFFECTING ENTREPRENEURIAL GROWTH Economic Factors Entrepreneurial Growth Non-Economic Factors Government Action Social Condition Psychological Factors

  15. 1. Economic factors From a strictly economic viewpoint, it can be said that the same factors which promote economic development account for the emergence of entrepreneurship also. Capital Labour Economic Factors Raw Materials Market

  16. Capital: Capital is one of the most important prerequisites to establish an enterprise. Availability of capital facilitates the entrepreneur to bring together the land of one, machine of another and raw material of yet another to combine them to produce goods. Capital is therefore, regarded as lubricant to the process of production/render services. Labour: The quality rather quantity of labour in another factor which influences the emergence of entrepreneurship.

  17. Raw Materials: The necessity of raw material hardly needs any emphasis for establishing any industrial activity and therefore it influences the emergence of entrepreneurship. In the absence of raw materials, neither any enterprise can be established nor an entrepreneur can emerged. Market: The fact remains that the potential of the market constitutes the major determinant of probable rewards from entrepreneurial function. The size and composition of market both influence entrepreneurship in their own ways.

  18. 2. Non-economic factors Non-Economic factors Social Conditions Psychological Factors Legitimacy of Entrepreneurship Social Mobility Security Need Achievement

  19. Social Conditions Legitimacy of Entrepreneurship: The proponents of non- economic factors give emphasis to the relevance of a system of norms and values within a socio-cultural setting for the emergence of entrepreneurship. Social Mobility: Social mobility involves the degree of mobility, both social and geographical, and the nature of mobility channels within a system. Security: Security is a significant factor for entrepreneurial development. If individuals are fearful of losing their economic assets or of being subjected to various negative sanctions, they will not be inclined to increase their insecurity by behaving entrepreneurially.

  20. Psychological Factor Need Achievement: If the average level of need achievement in a society is relatively high, one would expect a relatively high amount development in the society. of entrepreneurship

  21. 3. Government action The government by its actions or failure to act also does influence both the economic and non-economic factors for entrepreneurship development. Any interested government in economic can help, through its clear expressed industrial policy, promote entrepreneurship in one way or other, by creating basic facilities, utilities and services and by providing incentives and concessions. The entrepreneurs a facilitative socio-economic setting. Such conductive setting minimizes the risks which the entrepreneurs are to encounter. government can provide the prospective The supportive actions of the government appears as the most conductive to the entrepreneurial growth.

  22. Thanks! Any questions?

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