ENTREPRENEURIAL

CHARACTERISTICS AND
COMPETENCIES
Chapter 1 – lesson 2
Students must be able to:
▪ Identify who are the entrepreneurs
▪ Identify Entrepreneurial competencies
▪ Differentiate generation of entrepreneurs
▪ Demonstrate understanding why youth
entrepreneurship matters
WHO IS AN ENTREPRENEUR
a) Solo self-employed individual
➢ Repairmen, brokers, highly paid professional
e.g. physicians

b) Deal-to-dealers
➢ businessmen engaged in various forms of trade
c) Team builders
➢ E.g. a skilled machinist who opens his own small shop
and then gradually expands his work force

d) Pattern multiplier
E.g. franchise of Mc Donald’s Drive Thru
e) Economy-of-scale exploiters

f) Capital Aggregators
➢ Use their expertise in pooling a group of financiers to
put together a business endeavor
g) Acquirers
➢ Acquire a business with on going concern
➢ Regarded as turn-around artist

h) Independent innovators
➢ Pure inventors who really developed their own product
and take care of marketing them
ENTREPRENEURSHIP COMPETENCIES
Entrepreneurship competencies
➢ refer to the skills, knowledge, and attributes that
enable individuals to create and manage
entrepreneurial opportunities.
➢ Here are some key entrepreneurship competencies:
1. Opportunity Recognition:
➢ An entrepreneur is always searching for opportunity and is
ready to exploit it in the best interests of his enterprise.
➢ Ability to identify business opportunities which includes
understanding customer needs and trends.
2. Creativity and Innovation:
➢ Entrepreneurs are driven to introduce new products and
services
➢ Capacity to generate new ideas and innovate
3. Risk Management
➢ Skill in identifying potential problems before they occur to
mitigate adverse impacts on achieving objectives
4. Decision-Making:
➢ an entrepreneur takes a calculated decision in the
light of the facts and circumstances available at his
disposal.
➢ Ability to make informed and timely decisions,
considering various factors and potential outcomes.
5. Adaptability
➢ Entrepreneurs are ready to adapt to changing
circumstances, markets, and technologies.
➢ Adaptability is crucial in the dynamic business environment.
6. Networking:
➢ Capacity to build and maintain a network of contacts,
including mentors, peers, customers, and industry
professionals.
➢ it can indirectly affect the success of the business.
7.Leadership:
➢ An entrepreneur is a leader
➢ Leadership skills to inspire and guide a team
8. Financial Literacy:
➢ Understanding of financial principles, budgeting,
financial forecasting, and the ability to manage financial
resources effectively.
9. Communication Skills:
➢ An entrepreneur needs to sell business idea to potential
investors, product or service to customers, and
themselves to employees.
➢ Entrepreneurs need to be able to talk in a way that
inspires trust and understanding.
➢ If they can’t communicate well, their ideas may not be
understood, and their business may fail.
9. Sales and Marketing Skills:
➢ Knowledge and skills in promoting products or services,
understanding customer behavior, and developing
effective marketing strategies.
11) Persistence
➢ failures or roadblocks to success and achievement should
not deter the entrepreneur.
➢ Ability to persevere through challenges and setbacks
12) Negotiation Skills:
➢ ability to find mutually beneficial solutions.
13. Resourcefulness:
➢ An entrepreneur is resourceful
➢ Ability to find creative solutions and make the most of
available resources, even in resource-constrained
environments.
GENERATION OF ENTREPRENEURS
➢ Each generation has its own unique characteristics and
that shape their approach to entrepreneurship.
➢ It's important to note that these generalizations may not
apply to every individual within a generation, as people's
attitudes and behaviors can vary widely.
➢ Here's a brief overview of how each generation is often
characterized in terms of entrepreneurship:
Baby Boomers
➢ Born 1946-1964
➢ started in corporate environment
➢ loyal to employers
➢ focus on stability
➢ are either pushed or pulled into business ownership
➢ motivated by push factors such as insufficient pensions
➢ extrinsic pull factors are the desire to exploit an identified
market opportunity
➢ intrinsic pull factors are the desire to stay active
2. Generation X
➢ Born 1965-1980
➢ Adaptable
grew up during a time of rapid change, from the advent
of personal computers to the rise of the internet.
as a result, they tend to be adaptable with new
technologies
➢ Resilient
came of age during a time of economic uncertainty, from
the oil shocks of the 1970s to the dot-com bust of the
early 2000s.
As a result, they tend to be resilient able to weather
the ups and downs of the business world.
3. Generation Y (Millennials)
▪ Characteristics:
➢ Born 1981-1996
➢ Born into the age of information
➢ Digitally savvy
use social media and the internet to build businesses
the top 20 most influential millennial entrepreneurs all
created an internet-based service.
➢ purpose driven
believe that the success of a business should be
measured by its impact
It is about "balance," finding a gap in the market that is
also fulfilling to the individual
Mark Zuckerberg claimed that Facebook was created
to accomplish a social mission "To make the world
more open and connected."
4. Generation Z
➢ Born 1997-2012
➢ Tech-savvy
grow up entirely in the digital age
possess a strong understanding of social media marketing
and online branding to reach a wider audience.
➢ Drive for independence
They see entrepreneurship as a pathway to financial
independence and wealth creation
5. Generation Alpha
➢ Born 2013 and later
➢ Generation Alpha is still very young
➢ characteristics are not fully defined yet
➢ expected to be the most technologically immersed
➢ potentially leads to innovative and tech-driven
entrepreneurial ventures.
❖It's essential to recognize that these are broad
generalizations, and individuals within each generation
can vary significantly in their attitudes toward
entrepreneurship.
❖Additionally, external factors such as economic
conditions, societal changes, and global events can
influence entrepreneurial trends within each generation.
WHY YOUTH ENTREPRENEURSHIP MATTERS
➢ Youth entrepreneurship matters for several reasons, as it
can have profound positive effects on individuals,
communities, and economies.
➢ Here are some key reasons why youth entrepreneurship is
important:
Innovation and Creativity:
➢ Young entrepreneurs often bring fresh perspectives,
innovative ideas, and creative solutions to existing
problems.
➢ Their ability to think outside the box can lead to the
development of new products, services, and business
models.
Job Creation:
➢ As young entrepreneurs establish and grow their
businesses, they create employment opportunities
not only for themselves but also for others in their
communities.
➢ This contributes to reducing youth unemployment
and fostering economic growth.
Economic Development:
➢ When young people start businesses, they contribute to
the overall economic output of a region or country.
➢ They generate income, pay taxes, and stimulate economic
activity, helping to build a robust and diversified economy.
Skills Development:
➢ Starting and running a business requires a range of skills,
including leadership, problem-solving, decision-making,
communication, and financial literacy.
➢ Youth entrepreneurship provides a practical platform for
young individuals to develop these skills, which are
valuable not only in business but also in various aspects
of their lives.
Empowerment:
➢ By creating and managing their own businesses, young
entrepreneurs gain a sense of autonomy, independence,
and self-reliance.
➢ This empowerment can lead to increased confidence and
a positive impact on their personal and professional lives.
Addressing Social Issues:
➢ Youth entrepreneurship can be a tool for addressing social
challenges.
➢ Entrepreneurs often develop solutions to problems within
their communities, such as access to education,
healthcare, or sustainable resources.
➢ Social entrepreneurship focuses on creating positive social
impact alongside financial success.
Long-term Sustainability:
➢ Cultivating a new generation of entrepreneurs ensures
the sustainability of economic development.
➢ As established businesses evolve or decline, new
enterprises led by young entrepreneurs provide a
continuous source of innovation and economic vitality.
In summary, youth entrepreneurship matters
because it not only drives economic growth but
also fosters innovation, empowers individuals,
and addresses social challenges, contributing
to the overall well-being and sustainability of
societies.