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Procedia Computer Science 192 (2021) 5122–5129

25th International Conference on Knowledge-Based and Intelligent Information & Engineering


25th International Conference on Knowledge-Based
Systems and Intelligent Information & Engineering
Systems
Entrepreneurial competencies of women ICT start-up
Entrepreneurial competencies of women ICT start-up
A. Łopatkaa*
A. Łopatkaa*
Institute of Economics and Finance, Faculty of Economics, Finance and Management University of Szczecin, Mickiewicza 64, Szczecin 71-101,
Institute of Economics and Finance, Faculty of Economics, Finance Poland
and Management University of Szczecin, Mickiewicza 64, Szczecin 71-101,
Poland

Abstract
Abstract
Entrepreneurial competencies of business owners are one of the main factors determining the development
and competitiveness
Entrepreneurial of economic entities.
competencies However,
of business in theare
owners scientific
one of literature and research
the main factors on women,
determining there is not
the development
much space devoted of
and competitiveness to economic
the recognition of However,
entities. their competencies that determine
in the scientific literaturethe
andcreation
researchandon running
women,of start-ups.
there is not
There
much is no doubt
space thatto
devoted a modern woman-owner
the recognition of theirofcompetencies
a start-up should thatnot only be characterized
determine the creation andby entrepreneurial traits,
running of start-ups.
such
Thereas creativity,
is no doubt that innovation, motivation to act,
a modern woman-owner or ability
of a start-up to overcome
should not only beuncertainty, but by
characterized also possess and traits,
entrepreneurial apply
knowledge and business
such as creativity, experience,
innovation, have strong
motivation to act,social skills and
or ability the abilityuncertainty,
to overcome to efficientlybut
manage a team, and
also possess as well as
apply
the ability toand
knowledge fulfil the social
business role of ahave
experience, woman in professional
strong social skillsandandprivate environment.
the ability to efficiently manage a team, as well as
the abilityBearing
to fulfilinthemind therole
social above
of acharacteristics, as well asand
woman in professional having
privateidentified a research gap concerning the poor
environment.
identification
Bearingof incompetencies
mind the above of women start-up-owners,
characteristics, as well as it is reasonable
having identified atoresearch
attempt gap
to concerning
diagnose their key
the poor
competencies.
identification of In this regard, the below
competencies analysis
of women will focus on ICT
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reasonable attempt totomany reports,
diagnose suchkey
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of the literature of women
on the subject who run
which provides
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for presenting selectedpandemic
results of in
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own research governmentthe imposing restrictions
competences of womenon business
who run
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ICT start-ups.The limit the mobility of citizens
pandemic in Polandand thus limitinthethespread
resulted of the virus.
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imposing of the on
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to COVID-19 was sufficient
following article andthe
will present whether
results itof served its
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research aimed at answering whether the state aid related to COVID-19 was sufficient and whether it served its
purpose.
© 2021 The Authors. Published by Elsevier B.V.
© 2021
This The
is an Authors.
open accessPublished by ELSEVIER
article under B.V. license (https://creativecommons.org/licenses/by-nc-nd/4.0)
the CC BY-NC-ND
© 2021 The Authors.
Peer-review Published byofELSEVIER
under responsibility B.V.
the scientific committee of KES International.

* Corresponding author email address: agnieszka.lopatka@usz.edu.pl


*Corresponding author email address: agnieszka.lopatka@usz.edu.pl
1877-0509 © 2021 The Authors. Published by ELSEVIER B.V.
This is an open
1877-0509 access
© 2021 Thearticle under
Authors. the CC BY-NC-ND
Published by ELSEVIER license
B.V.(https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review under
This is an open responsibility
access of the
article under the scientific
CC BY-NC-NDcommittee of KES
license International
(https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review under responsibility of the scientific committee of KES International

1877-0509 © 2021 The Authors. Published by Elsevier B.V.


This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review under responsibility of the scientific committee of KES International.
10.1016/j.procs.2021.09.290
2 Author name / Procedia Computer Science 00 (2021) 000–000

This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)


Peer-review under responsibility of the scientific
A. Łopatkacommittee of KES
et al. / Procedia International
Computer Science 192 (2021) 5122–5129 5123

Keywords: entrepreneurial competencies, ICT, startups

1. Introduction

When analyzing entrepreneurial competencies in the light of individual theories of entrepreneurship, it should be
noted that they are inseparably associated with the entrepreneur, who is equated with the owner or the manager of a
given enterprise. Thus, the entrepreneur becomes the creator of internal and external changes in the organization that
affect the development capacity of a given business. [1].
In the classical economic theory, entrepreneurial competence is identified with the entrepreneur who, thanks
to their knowledge and skills, reallocates resources from an area of lower efficiency to that of higher one [2]. The neo-
classicists also characterized entrepreneurial competence through the prism of the innovative solutions implemented
in a given organization by the entrepreneur, as well as through overcoming the uncertainty and risk associated with
business operation thanks to the possessed knowledge and business experience [3]. It is worth noting that also the
representatives of the Austrian school identified entrepreneurial competence with the entrepreneur's use of their
sensory perception, the "alertness" of the individual to opportunities [4]. This alertness was not an element of the
decision-making process, but an individual’s quality that was unique and unexplainable.
Nowadays, entrepreneurial competence is regarded as individual skills and qualities. Entrepreneurial competence
determines creativity, motivation to act, confidence, responsibility for the consequences of their ventures, and
awareness of success and failure. In this view, these competencies interact with the level of entrepreneurial heuristics.
There are three types of heuristics i.e. the representativeness heuristics, availability heuristics and anchoring heuristics
[5]. The former refers to the entrepreneurial individual's observation of a given situation and formulation of opinions
without the use of external information. The second one focuses on the evaluation of the well-publicised events. The
third is based on the influence of received information in the initial phase of an entrepreneurial individual's action. The
fact of possessing these skills distinguishes entrepreneurs from the rest of society, as they become more responsible
for the choices they make. Moreover, they learn from their own experience, gaining information and knowledge about
the probability of succeeding in a given task. This assures them, under conditions of risk, to achieve success and task
satisfaction. In a similar vein, Leibenstein identifies entrepreneurial competence with traits or skills that an
entrepreneur possesses, including in particular: 1) seeking and discovering opportunities and possibilities in the
environment; 2) the ability to organize and manage a company; 3) raising capital funds for the company operations;
4) the ability to act in conditions of risk and uncertainty; 5) responsibility for motivating employees to creative actions,
6) ability to access market information, resources, technology and to apply them [6]. Slightly different entrepreneurial
qualities in the context of entrepreneurial competence have been distinguished by J.A. Timmons. He defines the
following entrepreneurial traits: dynamism of action, ability to lead, ability to recognise opportunities, ability to act in
conditions of risk and uncertainty, creativity, independence and adaptability of the individual to conditions, as well as
intrinsic motivation [7]. The first trait characterizes the entrepreneur as an active individual, showing initiative, looking
for new solutions in ways to improve methods or processes. Apart from that, it is very important for an entrepreneur
to be able to lead and cooperate with other people. Another attribute distinguished by Timmons is the ability to
recognize opportunities. It is reflected in the individual’s constant pursuit of new opportunities in the environment in
order to change the existing situation for the better. Moreover, according to Timmons, what is also important is a
person's ability to act, and in particular to overcome risk and uncertainty, which are associated with every individual
activity. Adaptation to changing environment and surroundings is also vital. The last of the analysed traits – the
intrinsic motivation, is crucial for an entrepreneur to act continuously and effectively in order to achieve benefits.
Other entrepreneurial traits are distinguished by T. Costa, who analyses the entrepreneurial competence of a given
entrepreneur through the prism of the following attributes: extroversion, neuroticism, conformity, meticulousness and
openness to experience [8]. The first trait characterizes individuals who are optimistic and outgoing. The second one
is typical of individuals who exhibit fairly high volatility of moods. The next one describes people who easily fit in
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with the rest of society. Meticulousness refers to the ability to conform to existing laws and regulations. And the last
attribute means the individual’s openness to learning from experience and then using it to solve problems. Each of the
presented personality traits influences the diversity of entrepreneurial intentions, especially the ability to bear risks,
develop motivation and locate an internal sense of control [2].
Given the above definitions and the deliberations in the contemporary literature, it must be firmly stated that there
is no explicit definition of entrepreneurial competence. Some scientists describe entrepreneurial competence from the
perspective of the entrepreneur's personal attributes, cognitive mechanisms, motives, sense of self-efficacy and
entrepreneurial knowledge that lead to the establishment, survival and development of a small business. Other authors
define competencies by describing them as entrepreneurial traits that the entrepreneur employs to achieve desired
outcomes [10]. These traits include knowledge skills, social behaviour, thought patterns, and mindset. Others
characterise entrepreneurial competencies as the entrepreneur's knowledge, motivation to act, and innate skills, thanks
to which the organization exists. Other researchers define competencies as the traits and properties of an entrepreneur
that determine his/her job satisfaction [11]. There also others who describe competencies as an entrepreneur’s qualities
which serve to achieve individual goals of internal stakeholders of a given company.
Based on contemporary research on entrepreneurial competence, it can be clearly stated that the entrepreneur’s
behavioural, demographic and psychological determinants as well as technical skills determine his/her entrepreneurial
competence, which is a real and sustainable source of competitive advantage of the company. In this regard, it may be
interesting to consider the entrepreneurial competencies of women running their own start-ups [12]. This topic may
be important because cultural changes occurring in the modern world lead to transformation in the perception of the
role of women in society. Women are increasingly striving for personal fulfilment, achieving a new, higher status,
which encourages their entrepreneurship. At the same time, the need for shaping entrepreneurial competencies by
women is being activated. This awakens the archetype of femininity that exists in the collective unconscious, which
prepares the next generations of women, situated between the traditional and the modern model of femininity, to speak
out against patriarchal culture and to decide to create and run their own businesses [13]. Running their own company
is a chance for women to achieve professional success without having to overcome the difficulties that are associated
with gender discrimination in business. Through the development of entrepreneurial competence, a change is taking
place at the level of values, in particular in the perception of the role of a woman as a professionally active person who
can also provide financial resources and contribute to the family budget [14]. Women are increasingly expressing the
need for gainful employment, the desire to be active and, consequently, to participate in improving the income situation
of the family. They fight against stereotypes by proving their entrepreneurial competence while managing their own
businesses under their own responsibility and at their own risk. By running their own business ventures, women have
the opportunity to realise their own ideas and fulfil their own aspirations [15]. While listing the benefits that the
development of female entrepreneurship brings, it should be noted that through self-employment all women gain a
kind of autonomy, and their rights and needs are manifested through the work they do.
As regards, on the one hand, the essence of entrepreneurial competence and, on the other hand, the changing
social position of women running their own business, it is reasonable to look at how these women entrepreneurs’
competences are forming. In this respect, entrepreneurial competence will be equated with an entrepreneur's
willingness to implement internal and external changes in a given organization in order to achieve desired goals. It
should be noted that the entrepreneur will be identified with a woman running and managing her own start-up. The
presented definition allows for a broad approach to entrepreneurial competence which will be examined through the
prism of the entrepreneur's education, experience, teamwork skills, ability to manage change, their pursuit of potential
market opportunities in their business environment, their capacity to create business strategy, as well as their will to
continuously optimise the manufacturing processes, their business knowledge, motivation and communication,
leadership and self-assessment skills. It is also worth noting that due to the multitude of definitions of a start-up, the
article adopts the one by Blank. Thus, a start-up will be identified as an organization engaged in the search for a
scalable, repeatable, and profitable business model that operates under conditions of extreme uncertainty and offers
innovative products and services [6].
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4 Author name / Procedia Computer Science 00 (2021) 000–000

2. Research methods

In order to achieve the primary research objective, it was decided to conduct quantitative research using a structured
questionnaire containing questions about the entrepreneurial competencies of female start-up owners in Poland. The
survey was conducted in 2020 and covered 63 women start-up owners in the West Pomeranian Voivodship (Province).
The choice of the research area was dictated by the fact that the region boasts a high rate of enterprises per 1000
inhabitants. According to the 2019 data of the Central Statistical Office, there are 59.9 enterprises per 1,000 inhabitants
in the West Pomeranian Voivodship. This rate positions the Western Pomeranian Voivodship fourth in the national
ranking, just behind the Mazowieckie, Wielkopolskie and Pomorskie Voivodships [5]. The basic research method was
the CAWI method, while the tool was a questionnaire consisting of 34 questions. The questionnaire contained
diagnostic questions referring to the adopted subject and object of the study. The questions allowed the author to find
out which enterprises under survey could be categorised as start-ups. Only the answers of respondents who met all the
eligibility criteria were taken into consideration in the subsequent analysis of the survey results. The questionnaire
used disjunctive closed cafeterias and conjunctive closed cafeterias allowing the respondent to select several answers
from a list, and semi-open cafeterias, allowing the respondent to provide answers other than those available on the list.
It should also be pointed out that some of the questions were conditional, i.e. the questions were asked only if certain
former questions received an affirmative answer. The purpose of using this mechanism was to minimize the number
of questions that did not relate to the situation of a particular respondent. What is important, before the actual research
a pilot study was conducted (covering five companies), on the basis of which changes were introduced to the survey
questionnaire.
In the course of the survey results analysis it was established that the study group consisted of enterprises with the
average staff of 3 employees. As regards the size of businesses under study, all the start-ups were microenterprises.
Their average survival time on the local market was two years. The company's operating on the market the longest
was three years old while the youngest one had been operating for one month. The majority of the companies (92%)
offered their products on the domestic market, while less than 8% on the international market. It is also interesting to
note that the youngest woman running a start-up was 26 years old and the oldest was 42 years old, while the average
age was 37 years old. It is worth mentioning that 83% of the surveyed women had university education, 12% had
secondary education and 5% had vocational or lower education.
Having known the general characteristics of the surveyed population, at the next stage of the research process,
women start-up owners were asked to assess the entrepreneurial competences which, in their opinion, had the greatest
impact on the operation of the company. The largest number of survey respondents pointed to the ability to exploit
potential opportunities emerging in their environment (29%) and the capacity to manage change (21%). This was
followed by business knowledge (14%), creating a business strategy (11%), education (8%) as well as communication
(8%), leadership (4%), self-esteem (3%) and teamwork skills (2%).
When analysing the structure of answers to the survey that emerged after particular criteria had been applied
in order to divide the study group, one may notice significant differences in terms of the length of the company's
operation on the market and the company size. The owners of businesses younger than 6 months most frequently
indicated the ability to seize opportunities present in the environment (43%) and to create a business strategy (19%)
as the key competences, while women who had been running their start-ups for longer than one year pointed to change
management (51%), communication skills (36%) and teamwork skills (17%). The above diversification of answers
may be conditioned by the goals which entrepreneurs set at particular stages of their enterprise's development.
According to the respondents, in the initial phase the most important thing is to constantly pursue market opportunities,
as in the long run this not only enables the organisation to survive, but also determines its investment capacity.
Moreover, the use of market opportunities should be accompanied by a continuous process of creating a business
strategy that will be oriented, inter alia, at cost minimisation and the efficient use of production factors.
When examining the structure of responses distinguished according to the type of market on which they are
offering their product, significant differences can be seen. According to the women entrepreneurs operating on the
domestic market, the most relevant entrepreneurial competences are: experience, the ability to seize opportunities
present in the environment, as well as business knowledge. The owners of start-ups operating on the international
market chose leadership skills, ability to manage change and teamwork skills. This differences in how entrepreneurial
competence is perceived can be conditioned by the nature of the market in question. Thus, a start up offering products
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on a foreign market, as opposed to the one operating on a domestic market, should employ people. This means that
the entrepreneur needs the ability to manage a team, to motivate employees, resolve conflicts, organise and coordinate
proper personnel relations around tasks, as well as has to be able to track changes and respond to them. Moreover, the
foreign market is definitely more prone to turbulences than the domestic one, which results in a necessity to develop
one more competence, i.e. the ability to manage change.
In the subsequent part of the study, respondents were asked to rate the importance of the entrepreneurial
competences they possessed. For this purpose, a mean rank analysis was employed. In order to effectively illustrate
the disparity between the current state and the expected state in terms of the competences held by women start-up
owners, an entrepreneurial competence profile was created.

Table 1. Entrepreneurial competence profile


Competence Co* C1* Cg
education 3.0 2.4 +0.6
change management 3.9 4.7 -0.8
seizing market opportunities 4.3 4.9 -1.1
business knowledge 4.1 4.5 -0.4
communication 3.7 3.9 -0.2
leadership 2.8 4.2 -1.4
self-assessment 2.1 1.7 +0.4

*1 – very weak relevance 5 – very strong relevance


Co - competencies possessed
C1 - competencies expected
Cg - competence gap (C1-C2)
Source: own study

The obtained results show that there are differences between the competences possessed by entrepreneurs and those
expected. Most of the respondents indicated the ability to seize market opportunities as a vital competence
conditioning the successful management of their businesses. However, when looking at the rank of this competence
as possessed by entrepreneurs, it should be noted that the respondents indicated a gap between its expected and
possessed level (competence gap - 1.1). A similar trend can be seen when examining such competences as: the skill
to manage change (competence gap - 0.8), business knowledge (competence gap at 0.4), leadership skills (competence
gap at 1.4) and communication skills (competence gap at +0.2)
The study findings clearly show that entrepreneurs feel that they lack sufficient skills to seize market
opportunities. This does not seem surprising, as the majority of companies had been operating on the market for two
years. According to the surveyed population, such a survival time is insufficient to acquire the ability to recognise
market opportunities. This is mainly due to the volatility and unpredictability of the environment as well as to the
coronavirus pandemic, which hindered the creation of business opportunities. The entrepreneurs also indicated a lack
of sufficient leadership skills and business knowledge. We should bear in mind here that leadership skills and business
knowledge are necessary to e.g. create a vision and goals for the company, as well as influence the ability to identify
ways of using strategic resources while acknowledging market opportunities and threats resulting from the strengths
and weaknesses of a given company. Moreover, the competence gap in terms of communication skills may mean that
the company is facing problems with effective channels of information flow, thanks to which the business owners can
learn from their staff members about how to improve their company performance as well as to elevate the staff morale.
As far as other discrepancies between the profile of competences possessed and those expected are concerned,
the positive tendencies are noticeable. Entrepreneurs have a higher than expected level of self-esteem and education,
which, in the longer perspective, may reduce uncertainty and investment risk that is associated with running a business.
When examining the structure of responses through the prism of individual criteria for the classification of
the surveyed population, the differences can be seen with regard to the respondents' age. As regards communication
A. Łopatka et al. / Procedia Computer Science 192 (2021) 5122–5129 5127
6 Author name / Procedia Computer Science 00 (2021) 000–000

skills, business knowledge and the ability to seize market opportunities, it was the women younger than 30 who much
more often pointed out smaller gap between the level of competences currently held and the expected level. Moreover,
in contrast to other age groups the women under 30 regarded such entrepreneurial competences as the ability to manage
change, leadership skills and self-esteem to be the best developed ones.
In the final stage of the study, women start-up owners were asked to identify the factors having the greatest
influence on the formation of entrepreneurial competencies. In order to determine the impact of a given determinant,
a stochastic analysis was conducted by developing contingency tables for successive sets of determinants and business
model characteristics. Then, statistically significant correlations of individual variables were identified on the basis of
independence tests. The estimation results are shown in Table 2.

Table 2. Determinants of women entrepreneurs - stochastic dependencies


Determinants Responses in % p Cramer’s V coefficient
environment volatility 73.43 0.00002 0.87363
start-up’s survival time 29.11 0.00713 0.43992
training schemes, post-diploma studies 43.72 0.00049 0.37475
external stakeholders’ attitude 64.32 0.03216 0.62854
domestic economic situation 14.29 0.05890 0.22439
family, friends 9.52 0.03991 0.11211

Source: own empirical study

The data show that the strongest influence on the formation of entrepreneurial competencies of women start-
up owners is the volatility of the environment (V- Cramer = 0.87363) and the attitude of external stakeholders (V-
Cramer = 0.62854). The least influence comes from friends and family (V- Cramer = 0.11211) and the economic
situation in the country (V- Cramer = 0.22439). It is worth stating in this regard that other determinants such as the
length of the start-up's life or the completed training courses or post-graduate studies are, according to the respondents,
of moderate importance in the process of competence formation. This result may be conditioned by the Covid-19
pandemic, which has had a quite significant impact on the turbulence, unpredictability of the environment and also on
the changing preferences of customers, suppliers and business partners. As a consequence, women running a start-up
and wanting their company to survive on the market were forced to adapt their business to the new market conditions.
According to the respondents, this process would not be possible without such entrepreneurial competencies as the
ability to manage change or to seize market opportunities.

3. Discussion and conclusion

Developing entrepreneurial competences in women owners of ICT start-ups is an essential element in the
performance of young companies on the market. The quality of key competencies of women start-up owners
determines the effectiveness of such important tasks as developing an efficient concept for the start-up growth,
anticipating long-term effects of the start-up operation in the business environment, creating valuable resources for
the start-up, ensuring operational efficiency, making risky decisions, motivating interpersonal effectiveness, assuming
responsibility, or effectively managing employees. In this regard, it should also be borne in mind that the possession
and development of unique competencies also contributes to building a start-up's competitive advantage (Wiklund
and D. Shepherd). Furthermore, entrepreneurial competencies allow for the effective management of a start-up, which
is reflected in the owners' ability to meet the current and future organisational needs of their company.
Taking into account the results of the survey, it should be firmly stated that the competencies that are of key
importance to women running ICT start-ups are: the ability to seize business opportunities; the ability to manage
change; business knowledge; leadership skills; and communication skills. These competencies not only form the basis
for the efficient market operation of the company, but also enable the company to offer unique values to its
stakeholders. Thus, these competencies are important for start-ups, whose growth is not organic, but conditioned by
the owner's attitudes and entrepreneurial behaviour. In this respect, it should also be noted that the respondents were
aware of the gap between their actual entrepreneurial competences and the expected ones. Hence, there is a need for
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Author name / Procedia Computer Science 00 (2021) 000–000 7

shaping entrepreneurial attitudes and skills concerning in particular experience, communication, leadership and the
ability to seize market opportunities.
When attempting to assess the contribution of this study to the management sciences, it can be stated that in its
theoretical layer it contains a review and systematisation of knowledge regarding entrepreneurial competencies of
start-up owners. In the empirical layer, the study provides an exhaustive survey of start-ups, thanks to which it was
possible to learn more about key competencies that are relevant to women start-up owners. It is worth mentioning that
the above analysis met certain challenges, such as a relatively small research group, which is due to the absence of
public registers of start-ups, or difficulty in contacting the start-up founders. Another limitation regarded the research
tool - its structure, the way of recording responses, as well as misunderstanding of questions by the respondents.
Another limitation was the unavailability of all relevant scientific studies.
Due to the complexity of the subject matter, as well as the dynamic nature of changes on the start-up market, this
research focuses only on a fraction of the available research space. Among the directions of further research one may
point to a comparative analysis of the key entrepreneurial competencies of women running start-ups across the
European countries, taking into account the consecutive development phases of young companies' growth.

Acknowledgements

The project is financed within the framework of the program of the Minister of Science and Higher Education under
the name “Regional Excellence Initiative” in the years 2019 – 2022; project number 001/RID/2018/19; the amount of
financing PLN 10,684,000.00

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