Republic of the Philippines

Laguna State Polytechnic University

Province of Laguna
LSPU Self-Paced Learning Module (SLM)

The Entrepreneur and Skills Required

ENTREPRENEURIAL CHARACTER TRAITS

The term character trait in this lesson refers to the mark or attribute that distinguishes
an entrepreneur from the owner of an ordinary small business. There are ten entrepreneurial
characteristics grouped into three major clusters.
1. Achievement Cluster
The achievement cluster consists of entrepreneurial character traits that are directly
related to the entrepreneur’s desire to be an achiever in the field of entrepreneurship.
Successful entrepreneurs constantly set things to be achieved and repeatedly find ways
to achieve them. The entrepreneur who belongs to the achievement cluster is:

a. An opportunity seeker
b. Committed
c. Persistent
d. A risk-taker and
e. Efficient and quality-oriented

2. Planning Cluster
The planning cluster is a set of characteristics of successful entrepreneurs that
basically supports the character traits in the achievement cluster. The concept of
planning is inherent in the entrepreneur, being both the owner and manager of the
business. The entrepreneur who belongs to the planning cluster is:
a. A goal settler
b. An information seeker and n
c. Systematic in planning and monitoring

3. Power Cluster
Includes a set of character traits that reflect the degree of the interpersonal relations
maintained by successful entrepreneurs in the community. The power cluster also
defines how the entrepreneurs project themselves in the business community. In simple
terms, the power cluster refers to the relationship and image of the entrepreneur in the
community. An entrepreneur in the power cluster is
a. A persuasive and positive networker
b. Self-confident

SKILLS AND CORE COMPETENCIES IN ENTREPRENEURSHIP

ENTREPRENEURIAL SKILLS
Without the required skills, a person can hardly succeed in a particular business
endeavor, perform the assigned specialized tasks, or even truly become a successful
entrepreneur. Hence, skills play a significant role in the practice of entrepreneurship.
Skills are considered as the personal abilities to do things well. They come from the
totality of the knowledge, practice or experience and aptitude of a person.
 Cognitive Skills
 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
LSPU Self-Paced Learning Module (SLM)

Cognitive skills refer to the mental ability of the entrepreneur to learn new things,
generate new ideas, and express knowledge in both oral and written forms. The human
brain is responsible for the development of cognitive skills, which are essential in
making systematic and effecitve plans and monitoring them.
The cognitive skills of an entrepreneur include the following
1. Ability to understand written materials
2. Ability to learn and apply new information
3. Ability to solve problems systematically
4. Ability to create new ideas
5. Ability to innovate new products and procedures or methods
Not all types of cognitive skills of an entrepreneur, except for that of problem solving skills are
discussed in this lesson. These problem solving-skills can help the entrepreneur in making
decisions quickly, which is essential in the competitive world of business.

 Problem-solving Skill
Whatever the nature, type or size of the business problem , the entrepreneur must face
it, solve it, and make a decision. In making a business decision, the entrepreneur adopts
the scientific approach instead of making an intuitive decision.

The scientific approach in solving business problem involves:

A. Defining the real problem
B. Gathering information about the problem
C. Formulating alternative solutions
D. Evaluating alternative solutions
E. Selecting and implementing the optimal solution, and
F. Evaluating the decision

 Technical Skills
In this age of advanced computer and information technology, entrepreneurs must be
fully equipped with the right technical skills. The result or final output of cognitive skills
may not be very effective unless put into reality through the application of technical
skills. For entrepreneurs, these skills relate to their knowledge and proficiency in a
specialized field.

The technical skills of an entrepreneur include proficiency and ability, among others, in
the following areas:
G. Information technology
H. Feasibility study and business plan preparation
I. Technical writing skills
J. Marketing
K. Management and finance

 Interpersonal skills
Interpersonal skills are basically about the relationship and interaction of the
entrepreneur with the workers, suppliers, creditors, prospective customers and other
members of the business community.
The interpersonal skills of an entrepreneur may include, among other, the following:
L. Skills in verbal communication
M. Skills in non-verbal communication
N. Skills in listening
O. Skills in leading
 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
LSPU Self-Paced Learning Module (SLM)

P. Skills in negotiating
They must be developed and enhanced to equip thee entrepreneur in:
Q. Saying what he/she wants and how she’he says it
R. Working with his or her workers and employees
S. Relating, negotiating and dealing with his or her customers, suppliers and creditors and;
T. Communicating his or her ideas, beliefs, values and opinions to the people he or she
works with.

 Core Competencies
A person who aspires to become a successful entrepreneur must fully understand and
apply the concepts and principles of entrepreneurship. He/she must possess and
internalize the character traits that are common among successful entrepreneurs.

The entrepreneurial competency is defined as the combination of entrepreneurial

concepts and principles, entrepreneurial character traits and entrepreneurial skills that
provide and become the ultimate source of competitive advantage of the entrepreneur.

The competitive advantage generally establishes the solid foundation of sustainability

of the entrepreneurial venture in the heart of the competition.

Engaging Activity

Write True if the statement is correct. Otherwise, write False and state your reason
briefly.
1. A person is assured of becoming a successful entrepreneur once he/she possesses
all the character traits common to successful entrepreneurs.
2. All business opportunities are exploited by an opportunity-seeking entrepreneur.
3. A persistent entrepreneur immediately quits the business venture after
experiencing failure.
4. A risk-taking entrepreneur engages in all types of risky business enterprises.
5. A person who is efficient produces more products using more production input
6. Skills are personal abilities of a person to do something well.
7. Skills are solely acquired from one’s own knowledge
8. Entrepreneurs must fully concentrate on the development and enhancement of
cognitive skill only.
9. The cognitive skills of a person are related to his/her expertise to perform
mechanical work.
10. The ability to create new ideas from changes in he business community to a
manifestation of developed technical skills.