WEEK 2: ENTREPRENEURIAL COMPETENCIES

Who is an entrepreneur?
An entrepreneur is a person who tries to meet needs of a customer through new
ideas or ways of doing business and makes profit in return.

What is business enterprise?

It is an activity to provide good and services to customer and consumers in
exchange of money. The aim of all business enterprise is to earn reasonable
profits so that they can sustain themselves and expand the area and scope of
their activities.

TYPES OF BUSINESS ENTERPRISE:

Manufacturing Business- A manufacturing business involves the transformation of raw
material into finished products to meet the demands of the customer. In this form of
business, the finished product can be directly sold to the customer.
For example: Companies of automobiles, paper, etc.

Merchandising Business- in merchandising business one buy product at a lower

wholesale price and sells the same at somewhat higher retail price. These are also
known as “buy and sell” business. Merchandising business makes a profit by selling
products at higher prices than the purchase costs.
For example: Groceries stores, chemist shops

Service Business- A service business is a type of venture that provides intangible

products called services. These type of businesses offer services like professional skills,
expertise, advice, etc.
For example: Banks, school, clinics, etc.

Hybrid Business- Hybrid businesses are companies that may be classified in more
than one type of business. In fact, any business that makes use of two or more modes
to accomplish the same end, can be categorized as hybrid business.
For example: Reliance fresh is a chain of grocery stores that also sells grocery online.
PERSONAL ENTREPRENEURIAL COMPETENCIES

Achievement Cluster
A. Opportunity Seeker C. Committed
B. Risk Takers D. Persistent

Planning Cluster
A. Good Planners
B. Good Decision Makers

Six Steps in MAKING GOOD DECISIONS

1. Identify the problem 4. Formulate alternative solution
2. Gather the necessary data 5. Select the best solution
3. Analyze the data 6. Implement the solution

C. Goal - Oriented
Goals should be SMART:
Specific, Measurable, Attainable, Relevant, Time-Based

A. Leadership
B. Achiever
C. Hardworking
D. Courageous
E. Optimistic
F. Compassionate
G. Sociable
H. Knowledgeable
I. Managerial Ability