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Entrepreneurial Competencies

Mohamed Dahlan Ibrahim,


Ph.D
Associate Professor
Session Objective
 At the end of the session, students
should be able to:
Identify the key competencies and
characteristics of successful
entrepreneurs

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Definition of Entrepreneurial
Competencies
 The term entrepreneurial
competencies refers to the key
characteristics that should be
possessed by successful
entrepreneurs in order to perform
entrepreneurial functions
effectively

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Research Background
 A scientific research conducted by a research team
(McBer & Co.) headed by Chief Psychologist, David C.
McLelland from Harvard University.
 A cross cultural study in three countries, India (Asia),
Malawi (Africa) and Ecuador (Latin America)
 Respondents were successful entrepreneurs
 The outcome was a set of 13 competencies which are
common to all successful entrepreneurs

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Entrepreneurial Competencies
 01. Initiative  07. Efficiency orientation
 02. Sees and acts on  08. Systematic planning

opportunities  09. Problem solving


 10. Self-confidence
 03. Persistence
 11. Assertiveness
 04. Information
 12. Persuasion
seeking  13. Use of influence
 05. Concern for high strategies
quality of work
 06.Commitment to
work contract

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1. Initiative
 The entrepreneur should be able to
take actions that go beyond his job
requirements and to act faster. He is
always ahead of others and able to
lead the business or industry.
 Examples:
Does things before being asked or
compelled by the situation
Acts to extend the business into new
areas, products or services

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2. Sees and acts on opportunities
 An entrepreneur always search for
and takes action on opportunities
 Examples:
Sees and acts on new business
opportunities
Seizes unusual opportunities to
obtain financing, equipment, land,
workspace or assistance

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3. Persistence
 An entrepreneur is able to make repeated
efforts or to take different actions to
overcome an obstacle that gets in the way
of reaching his/her goals.
 Examples:
Takes repeated or different course of action to
overcome a problem or obstacle
Never give-up easily

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4. Information seeking
 An entrepreneur is able to take action on how
to get information in order to help the
business to achieve its objectives or to solve
business problems
 Examples:
Conduct personal research on a product or service
Consults experts or relevant authorities to get
relevant information
Personally undertakes market research, analysis or
investigation
Uses contacts or information networks to obtain
useful information

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5. Concern for high quality of
work
 An entrepreneur acts to do things that
meet a certain standard of excellence
which gives him greater satisfaction
 Examples:
States a desire to produce or sell a top or
better quality product or service
Compares own work or own company’s work
favorably to that of competitors
High quality would ensure repeated purchase
from existing customers and also an
opportunity to get new customers

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6. Commitment to work contract
 An entrepreneur places the highest
priority on getting a job completed
according to the deadline.
 Examples:
Makes personal sacrifices or expends extra
ordinary effort to complete a job
Accepts full responsibility for problems in
completing a job for customers
Expresses a concern for satisfying the
customer

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7. Efficiency orientation
 A successful entrepreneur always finds ways
to do things faster, using fewer resources, and
keep cost low.
 Examples:
Looks for or finds ways to do things faster or at
lesser cost
Uses information or business management tools to
improve efficiency
Expresses concern about costs vs. benefits derives
from any improvement, change or course of action

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8. Systematic planning
 An entrepreneur develops and uses logical,
step-by-step plans to reach his/her business
goals
 Examples:
Plans by breaking a large task down into smaller
tasks
Develops alternative plans which anticipate
obstacles
Evaluate among available alternatives
Takes a logical and systematic approach in the
planning activities

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9. Problem solving
A successful entrepreneur identifies
new and potentially unique solution to
solve business problems which could
affect the business objectives.
 Examples:
Switches to an alternative strategy to
overcome problems
Always generates new ideas or innovative
solutions

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10. Self-confidence
A successful entrepreneur has a
strong belief in oneself and own
abilities.
 Examples:
Expresses confidence in own ability to
complete a task or meet a challenge
Sticks with own judgment in the face of
opposition or lack of success

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11. Assertiveness
 An entrepreneur confronts problems and
issues with others directly.
 Examples:
Confronts problems with others directly
Tells subordinates what is expected of them
Reprimands or disciplines those who failed to
perform as expected

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12. Persuasion
 An entrepreneur should be able to persuade or
influence others for mobilizing resources,
obtaining inputs, organizing productions and
selling of his products or services.
 Examples:
Convince someone to buy a product
Convince someone to provide financing
Asserts own competence, reliability or other
personal or company qualities (testimony)
Asserts strong confidence in own company’s
products or services

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13. Use of influence strategies
 An entrepreneur is able to make use of influential
people to reach his business goals.
 Examples:
Acts to develop business contacts
Uses influential people as agents to accomplish own
objectives (getting contracts)
Selectively limits the information given to others
Uses permissible strategy to influence or persuade
others

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