Lesson 1.

1: Definition, Skill, Competencies

RELEVANCE OF THE COURSE

1. Develops skills in starting up a business.

2. Demonstrates skills in maintaining business in long term basis.

3. Enhances knowledge of business operations and expansion.

4. Finds next level of training or access other resources and services.

5. Demonstrates business management.

6. Uses components of business plan.

7. Considers to become employer rather than employee.

8. Changes attitude toward entrepreneurship as a means of making a living.

9. Changes in personal and career attitude.

Other Definitions of Entrepreneurship

- Process of creating or seizing an opportunity, and pursuing it regardless of resources controlled.

(Howard H. Stevenson)
- Science of converting processed ideas into a remarkable business venture. (Marife Agustin-
Acierto)
- A capacity for innovation investment, and expansion into new markets and techniques.
(Fajardo)

Key Concepts, Skills, and Competencies

Competency - The capability, capacity, and ability of the learner in handling situations in various areas in
business operations.

Entrepreneurial Competencies

Locus of Control - Knowledge in determining the state to which a person agreed that their
actions can directly affect a situation, or that they can control a result. (Internal – can influence
events and outcomes; External – blames outside forces)
Specific Goal Setting - Motivation to set goals, specifically business growth objectives.
Self-Efficacy - Belief in own ability. Self-confidence.
Layers of Competency - Entrepreneurs understand that some skills and competencies are
applicable to all entrepreneurs while some skills and competencies are only applicable to some.
Need for Achievement - Entrepreneurs should feel the need to succeed and take responsibility
for the outcomes of their actions
Ambition - Entrepreneurs stay motivated, Persistent, and Persevere even in the face of a
difficult challenge.
Willingness to Learn - Entrepreneurs pursue opportunities to acquire new skills and
competencies.
Strong Initiative - Entrepreneurs are always driven to work hard. They can work independently
to achieve the task
Adaptability & Flexibility - Entrepreneurs are able to develop novel solutions to complicated
problems.
Willingness to Take Risks - Entrepreneurs can accept consequences but they can also identify,
calculate, and manage risk and can take into account legal actions.
Integrity - Entrepreneurs should have a positive sense of values and personal beliefs.
Key Concepts, Skills, and Competencies

Competency - The capability, capacity, and ability of the learner in handling situations in various areas in
business operations.

Entrepreneurial Competencies

Locus of Control - Knowledge in determining the state to which a person agreed that their
actions can directly affect a situation, or that they can control a result. (Internal – can influence
events and outcomes; External – blames outside forces)
Specific Goal Setting - Motivation to set goals, specifically business growth objectives.
Self-Efficacy - Belief in own ability. Self-confidence.
Layers of Competency - Entrepreneurs understand that some skills and competencies are
applicable to all entrepreneurs while some skills and competencies are only applicable to some.
Need for Achievement - Entrepreneurs should feel the need to succeed and take responsibility
for the outcomes of their actions
Ambition - Entrepreneurs stay motivated, Persistent, and Persevere even in the face of a
difficult challenge.
Willingness to Learn - Entrepreneurs pursue opportunities to acquire new skills and
competencies.
Strong Initiative - Entrepreneurs are always driven to work hard. They can work independently
to achieve the task
Adaptability & Flexibility - Entrepreneurs are able to develop novel solutions to complicated
problems.
Willingness to Take Risks - Entrepreneurs can accept consequences but they can also identify,
calculate, and manage risk and can take into account legal actions.
Integrity - Entrepreneurs should have a positive sense of values and personal beliefs.
Conceptual Thinking - Entrepreneurs are willing to use new approaches and ideas that may
enhance work.
Networking/Collaboration - Entrepreneurs understand the ability of networks. They can
negotiate with other people.
Strategic Thinking Entrepreneurs know that thinking using strategies can help achieve goals in
the organization.
Commercial Aptitude - Entrepreneurs keep themselves updated with their surroundings.
Decisiveness - Entrepreneurs are able to resolve issues as they arise in an unavoidable situation
and are able to respond flexibility to changes.
Optimism - Entrepreneurs perform in the hope of success, rather than the fear of failure.
Customer Relation Service - Entrepreneurs are able to develop and build trust and long term
relationship with their customers.
People Centered - Entrepreneurs can create commonality among stakeholders and are able to
be inclusive in decision making.
Creative/Critical Thinking - Learners who engage in creative thinking are able to both
generate innovative solutions and use relevant information to understand the greater picture.
Organizing - Entrepreneurs can plan and prioritize work to ensure that time is managed
effectively.
Planning - Entrepreneurs must be specific about the direction of their venture and their strategy.
Business Principles - Entrepreneurs must be well versed in market knowledge, economic
principles, and ethical practices.
Computer Competency - Entrepreneurs must be competent in the use of basic computer
hardware and software.
Workplace Competencies - Entrepreneurs are able to apply their skills, knowledge, and values
to job tasks and work-related experiences
High-Growth High-Value Entrepreneurship - Entrepreneurs typically offer incentive
compensation, manage business operations, build a strong entrepreneurial culture around
determination and high work ethic, and from effective board of directors and advisors.
Marketing - Entrepreneurs are competent in both executing strategies that promote their
products and establish client/customer relationships
 Interpersonal Skills - Entrepreneurs can work well with people regardless of their
backgrounds. They are also insightful on the behavior of people

REASONS PEOPLE PURSUE ENTREPRENEURSHIP

Eureka – you have a brilliant idea and want to give it a try!

You’re not the boss of me
Ka-ching, I want to be rich
I hate my job – you’re no longer inspired, you’re at a dead end
It’s glamorous and exciting
Satisfaction, professional growth, and increased responsibility
Flexibility and freedom

CAREER OPPORTUNITIES IN ENTREPRENEURSHIP

There are four skills necessary to a successful business. They apply equally to any business.

Engineering - the skill to invent and develop new products (or services).
Manufacturing - the skill to deliver them, consistently and reliably, with quality, service, and
price.
Selling - the skill to sell them.
Business - the skill to make a profit doing the other three.

Risks and Disadvantages:

Losing stable income - Lack of family support

Long hours - No health benefits

All expenses are yours - It’s ALL your fault!

You don’t work, you - Didn’t research don’t eat

Start-up costs - Thinking, I’m my own boss

No Regular Salary: when you start a business, you should be prepared to leave behind the
security of having a paycheck each month. Even successful entrepreneurs experience lean
months when all financial resources are being taken up by the new business.

Work Schedule: although they have the luxury of a flexible schedule, entrepreneurs also make
sacrifices especially during situations that require them to work longer hours. Unlike regular
employees who are not worried too much about the status of the business, entrepreneurs must
make sure that everything is going well.

Administration: because they own the business, all major decisions are made by entrepreneurs.
This is quite a burden and handling such responsibility is quite difficult. Every decision directly
affects the future of their businesses and avoiding costly mistakes is imperative.

REASONS FOR FAILURE

High debt ratio – you’re heavy in debt or others owe you

High levels of mismanagement – lack of professionalism
Unexpected staff resignation
Inadequate inventory
Selling products below cost
Dwindling working capital, consistent negative cash flow, & inability to secure operational
capital
Declining profit
Loss of market share

MIND-SET & SKILLS NEEDED FOR ENTREPRENEURIAL SUCCESS

 Are you a self-starter?
Are you a positive thinker?
Are you disciplined?
Can you be objective?

Traits:

Gain respect of their peers Explore their exceptional skills

Believe and trust in themselves Envision their success

Follow a plan NEVER GIVE UP!!!

Think creatively

Trends

Internet Businesses
Service Businesses
Home-Based Businesses
Socially Responsible Nonprofit Businesses
Focus on Technology
Outsourcing – contracting with other companies for service
Strategic Alliances – forming a partnership with another company
Corporate Ventures – new venture started inside a large corporation
Convenience Products/services

PROFESSIONAL DEVELOPMENT OPPORTUNITIES

There are many! Opportunities will depend on Asian Women in Business

your industry/business choice. Universities SBA
Conferences
Some examples: LinkedIn
Meetup Workshops
Minority Business Network Conventions
Facebook