COURSE CODE: ENT 202

COURSE TITLE: BASIC PRINCIPLES OF ENTREPRENEURSHIP

LESSON NOTE 4

LECTURE 4: TOPIC: ENTREPRENEURSHIP QUALITIES AND SKILLS

(INNOVATION)

OUTLINE
Introduction
Entrepreneurs Skills
Skills Every Successful Entrepreneur has in Common
Skills Required to succeed as an Entrepreneur
Qualities of Entrepreneurs
Innovation
Conclusion

The aim of this lesson note one is to explain the above outline.
Objectives
On the completion of this lesson note four, students will understand the successful entrepreneur
skills, qualities and entrepreneurial innovativeness among others. This will help the students in the
following ways:
 To understand what entrepreneur skills are
 To know the skills every successful entrepreneur has in common
 To examine the qualities of entrepreneurs
 To understand entrepreneurial innovativeness.
INTRODUCTION

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Entrepreneurs are driven by the desire to be their own bosses, do what they want to do, and turn
passions into profit-making businesses. An Entrepreneur is one who initiates a new business in the
face of risks and uncertainty for the purpose of satisfying human needs and making a profit. An
Entrepreneur carves out a niche for himself by scanning the environment, identifying opportunities
and threats and combining and utilizing the necessary resources to capitalize on opportunities
identified.

There are so many factors as reasons why people go into business for themselves. However,
entrepreneurial spirit is often cited as the desire to create a new business. Other factors may include
independence, the desire to determine one’s own destiny, and the willingness to find and accept a
challenge that, certainly play a part even though family background may also exert an influence as
well. However, there must be some motivation to start a business such as leaving a paid
employment where opportunities were not available to think and earn your own living, lost of jobs,
having an idea for a new product or a new way to sell an existing product or the opportunity to
invest into business may arise suddenly. In some people, the motivation to start a business whether
small or medium develops slowly as they gain the knowledge and ability required for success as a
business owner. Nigeria is naturally endowed with entrepreneurial opportunities; however the
realization of the full potential of these opportunities has been dampened by the adoption of
inappropriate industrialization policies at different times (Ebiringa, 2012).

Entrepreneurship involves taking chances, but new businesses do not emerge by accident (Egelhoff,
2005). They are usually founded as a result of motivated entrepreneur gaining access to resources
and finding niches in opportunity structures. Hence, entrepreneurship could be seen as the process
of identifying and exploiting unique business opportunities that stretch the creative capacities of
both private and public organizations. Since economic environment could support or suppress
entrepreneurship, governments world over undertake to develop macroeconomic policies that focus
mainly on providing access to resources and support services to individuals and organizations that
display flair for expanding their business horizons.

ENTREPRENEURS SKILLS

Every business requires unique technical skills and knowledge on part of the owner. You have to be
good at what you do for your business to succeed. This often means getting additional education
and training on an ongoing basis, sometimes for the purpose of obtaining specific credentials (e.g.,
certifications, licenses).

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In order to succeed, an entrepreneur needs some skills in his interpersonal relationships with people
during his business activities such as; time management, negotiation, opportunity seeking, goal
setting, information gathering, persuasion and networking, personal values, family and experienced
partner, in addition to technical, human and conceptual skills. However, in addition to these skills
other necessary skills are discussed for both highly developed successful entrepreneurs to budding
entrepreneur and those who are contemplating becoming self-employed in the future. If you have
entrepreneurial skills then you will recognize a genuine opportunity when you come across one.
What does it take to be successful starting your own small business?

12 RECOGNIZED SKILLS EVERY SUCCESSFUL ENTREPRENEUR HAS IN COMMON

1). Resiliency. The ability to whether the ups and downs of any business since it never goes
exactly the way the business plan described it. This skill enables the entrepreneur to keep
going when the outlook is bleak.

2). Focus. After setting a long term vision, you must be focused and never distracted in order to
achieve your goals.

3). Invest for the long-term. Most entrepreneurs are not patient and focus only on what comes
next, rather than where the company needs to go. Overnight success may take 7 to 10 years.
Entrepreneurs need to stop, pause and plan on a quarterly basis.

4). Find and manage people. Only by learning to leverage employees, vendors and other
resources will an entrepreneur build a scalable company. They need to learn to network to
meet the right people. Entrepreneurs strive to guarantee they will get honest and timely
feedback from all these sources.

5). Sell. Every entrepreneur is a sales person whether they want to be or not. They are either
selling their ideas, products or services to customers, investors or employees. They work to
be there when customers are ready to buy. Alternately, they know how to let go and move
on when they are not.

6). Learn. Successful entrepreneurs realize they don’t know everything and the market is
constantly changing. They stay up to date on new systems, technology, and industry trends.

7). Self-reflection. Allow downtime to reflect on the past and plan for the future. Always
working only leads to burnout physically and emotionally.

8). Self-reliance: While there is a lot of help for the entrepreneur, in the end, they need to be
resourceful enough to depend on themselves.

9). Creative Thinking: Entrepreneurs are known for thinking outside of the box. Creative
thinking can take a smart, capable business owner to another level of success.

10). Leadership: Entrepreneurs often have an evangelistic quality. They have great ideas, and
are skilled at getting buy-in from investors and employees.

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11). Risk Taking: Entrepreneurs often seem more comfortable with risk than other business
leaders. This can lead to tremendous failures, but also stunning successes. Entrepreneurs are
willing to live without a steady paycheck and make short-term sacrifices for a long-term
payoff. That said, the risks that entrepreneurs take are calculated, and aren't simply done for
the thrill.

12). Strong Work Ethic: Being an entrepreneur may seem flashy and exciting. But a lot of
hard work and long hours are required to launch something new. To be successful,
entrepreneurs must execute. Entrepreneurs are relentless when it comes to completing
projects and following through on the work required to turn ideas and plans into sellable
products.

Individuals possess different traits, behaviour and attitude in handling situations and ability to cope
with stress involved in business nurturing. Since, entrepreneurship can be learned even though
some possess the inborn traits inherited from their family background, here are some tips on skills
you require for a successful entrepreneur:

THE 15 SKILLS REQUIRED TO SUCCEED AS AN ENTREPRENEUR

1. The ability to manage money: Very simply, if you can’t manage money, you can’t manage a
business.

2. The ability to raise money: Once you can manage money, can you get more? In order to get
investment, you need to not only understand where to get money, but how to convincingly make a
case that your business is a good risk as well.

3: The ability to relieve stress: Stress is no laughing matter. If you allow yourself to get frustrated
and upset by setbacks, you’ll struggle as an entrepreneur. Learning how to use stress to your benefit
is essential.

4. The ability to be productive: Learn about your peak energy times, your routines, and the
productivity tools that work for you in order to create your own plan for success.

5. The ability to make entrepreneur friends: Improve your odds of success by finding
entrepreneur friends who will be able to understand your struggles and give you much needed
insight.

6. The ability to identify strengths and weaknesses: As a business owner, you don’t need to be
perfect at everything. You do, however, have to understand where you’re strong and where you’re
weak.

7. The ability to hire effective people: Having great people on your team will give you access to
new strengths, while also building a company culture that people want to be a part of. Hiring the
right people is essential to get where you want to go.

8. The ability to train new staff: When you bring on someone new, a robust on boarding process
will ensure that they know what to do and not do. Not only will this help keep your company
moving the correct direction, it will increase the commitment level of good employees and give you
grounds to follow up on misconduct.

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9. The ability to manage staff: Once you have the right people, you need to manage them well. If
you don’t already know how to manage, take the time to learn how to motivate, encourage, and
develop your staff.

10. The ability to connect via social networking: Social networks represent a key part of any
business’s marketing strategy. Not only will you need to understand each platform, you’ll want to
arm yourself with the best strategies for getting your startup and personal brand noticed on each
one.

11. The ability to focus on your customers: To be clear, without customers, you have no
business. Make sure all of your pitches, products, and services are focused on actual customer
needs. If you don’t know what these are, research and ask questions so that you’re able to give
great customer service.

12. The ability to close a sale: Letting customers know you understand their pain is important, but
asking for the sale is where many entrepreneurs get stuck. If you’re nervous about this step, try
enrolling in a sales workshop to learn these much-needed skills.

13. The ability to spot new trends: Business moves fast, so you’ve got to have the ability to see
changes coming in your industry. Make it a point to keep up to date on new startups and the
advances in technology that could be poised to disrupt your field.

14. The ability to deal with failure: No business venture is a straight line to success; knowing
how to deal with ups and downs is essential. Remember that every successful person out there
failed dozens of times before getting a win. Failure isn’t the end - it’s just a data point on the way to
success.

15. The desire to improve your world: In the end, the best and most enduring motivation is to
make a positive change in the world. When you focus your business and your success on that top
priority, you’ll find yourself ready to weather any storm to meet the goal.

Being an entrepreneur is a big task, but all of these skills can be learned. If you notice one you’re
lacking in, go get it! Your eventual success depends on it.

List of A-Z Entrepreneurial Skills by Alison Doyle (2016)

A–G H–M N–S T–Z

 Analytical  Goal Oriented  Negotiation  Team Building

 Belief  Goal Setting  Nonverbal  Technology
 Bravery  Initiative Communication  Think Outside the Box
 Business Storytelling  Innovation  Optimism  Time Management
 Collaboration  Interpersonal  Organization  Transformation
 Confidence  Leadership  Passion  Trend Setting
 Communication  Logical Thinking  Perseverance  Vision
 Competitive  Management  Persuasion  Vision into Action
 Compulsion to Succeed  Motivation  Planning  Work Independently
 Computer  Positive Attitude
 Creative Thinking  Positive Image
 Critical Thinking  Positivity
 Decision Making  Presentation
 Drive  Prioritization
 Enthusiasm  Problem Solving
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 Flexibility  Relationship Building
 Focus  Results Oriented
 Risk Taking
 Sales
 Social Media
 Stamina
 Strategic Planning
 Strategic Vision
 Strategy
 Strong Work Ethic

 Success Driven

INNOVATION

Entrepreneurship is a key driver of any economy; wealth and a high majority of jobs are created by
small businesses started by entrepreneurially minded individuals, many of whom go on to create
big businesses. There is more creative freedom for people who are exposed to entrepreneurship.
There is higher self-esteem, and an overall greater sense of control over the people’s own lives. The
importance of entrepreneurship to any economy is like that of entrepreneurship in any community:
entrepreneurship activity and the resultant financial gain are always of benefit to a country.

The process of translating an idea or invention into a good or service that creates value or for which
customers will pay. To be called an innovation, an idea must be replicable at an economical cost
and must satisfy a specific need.

Innovation involves deliberate application of information, imagination and initiative in deriving

greater or different values from resources, and includes all processes by which new ideas are
generated and converted into useful products. In business, innovation often results when ideas are
applied by the company in order to further satisfy the needs and expectations of the customers. The
entrepreneur finds an opportunity and uses innovation to raise the productivity level.

This means an entrepreneur is one who shifts economic resources from lower productivity to higher
productivity. As an entrepreneurial network, we need to respect original ideas, business processes,
market concepts and so on. In the opinion of Chris Ducker, “If we don’t, we leave ourselves wide
open to being spanked ourselves – probably when we’re doing well, and it’s really going to sting!”

If you’re running an online business, creating mobile apps or selling informational products via
your blog, being seen as an innovative person will help you immensely to develop satisfaction and
joy within yourself that you have fulfilled an accomplishment in your business.

If you own a fashion designing shop, then you might not have to be SEEN as an innovative person,
but if you can inject a certain amount of innovation into the way you market and promote your
business in the local community, not only will you get more business, but you’ll also be respected
as a local entrepreneur. It is truism that there will be people who will imitate and duplicate your
original works but that should not stop you from being innovative as you will later gain the reward
of hard work and the imitators will be the losers. Continue to do the right thing, promote your
market, sell and look after your customers in the right direction. In a social context, innovation
helps create new methods for alliance creation, joint venturing, flexible work hours, and creation of
buyers' purchasing power. Innovations are divided into two broad categories.

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Evolutionary innovations (continuous or dynamic evolutionary innovation) that are brought about
by many incremental advances in technology or processes and revolutionary innovations (also
called discontinuous innovations) which are often disruptive and new. Innovation is synonymous
with risk-taking and organizations that create revolutionary products or technologies take on the
greatest risk because they create new markets. Imitators take less risk because they will start with
an innovator's product and take a more effective approach. Examples are IBM with its PC against
Apple Computer, Compaq with its cheaper PC's against IBM, and Dell with its still-cheaper clones
against Compaq.

Business Innovation: This is the creation of new value and wealth for stakeholders to increase
economic prospects (Lorente et al., 1999; Miller, 1995). Business innovation is the creation of
substantial new value for customers and the company by creatively changing one or more
dimensions of the business system (Sawhney et al., 2006). In other words, business innovation is
the creation and adoption of something new that generates business value. This includes new
products, services, or processes, such as integrated supply chain solutions (Sawhney et al., 2006).

QUALITIES OF ENTREPRENEURS

Entrepreneurs are people who start their own business. They're known for embracing risk, having
big ideas, and making major innovations that change how others do business. While anyone who
starts a business has a bit of the entrepreneurial spirit, true entrepreneurs are distinguished by a
certain visionary quality. Entrepreneurship is the basic key for business growth, most business
today grew out of the effort of one man with passion, the effort of one man who wants to make
profit and who wants to innovate or create a new product. The quality of performance of the
entrepreneur determines whether capital would grow rapidly or slowly and whether the growth
involves innovation where new products and production techniques are developed. The difference
in economic growth rates of countries of the world is largely due to the quality of entrepreneurs in
those countries. Production factors of land, labour and capital are said to be dormant or indolent
without the entrepreneur who organizes them for productive ventures (Ebiringa, 2012).

Gallup studied more than 1,000 entrepreneurs to arrive at a short list of the 10 qualities of highly
successful entrepreneurs.

1. Business Focus: They base decisions on the potential to turn a profit.

2. Confidence: They know themselves well and can read others.

3. Creative Thinker: They know how to turn an existing product or idea into something even
better.

4. Delegator: They don't try to do it all.

5. Determination: They battle their way through difficult obstacles.

6. Independent: They will do whatever it takes to succeed in the business.

7. Knowledge-Seeker: They constantly hunt down information that will help them keep the
business growing.

8. Promoter: They do the best job as spokesperson for the business.

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9. Relationship-Builder: They have high social intelligence and an ability to build relationships
that aid their firm's growth.

10. Risk-Taker: They have good instincts when it comes to managing high-risk situations.

Gallup's conclusion is that entrepreneurs with a natural gift for things like opportunity spotting will
find it easiest to succeed but that others can compensate somewhat for a lack of inborn talent
through efforts like working with coaches and getting technical assistance. And, of course, factors
like skills and experience also play a role in entrepreneurial success.

10 Characteristics of a Highly Successful Entrepreneur (Tyrone Holmes, 2016)

1. A Positive Mental Attitude

You will never be a successful entrepreneur without a positive attitude because you are certain to
experience difficult times. Your success or failure will be determined at these times.

2. Enjoy Being Around People

Being a successful entrepreneur means you will continuously interact with a diverse array of people
such as customers, potential customers, colleagues, competitors, suppliers, lawyers, accountants
and coaches. It really helps if you enjoy being around these people.

3. Excellent Communication Skills

Exemplary communication is important because you must accurately exchange information in a

fast-moving world using a variety of methods (e.g., interpersonal, electronic). Of particular
importance is the ability to listen and truly understand where another person is coming from,
especially if you want to be a successful athletic coach.

4. A Strong Desire to Achieve

Successful entrepreneurs are achievement-oriented. They value accomplishment and the intrinsic
rewards that go along with achieving difficult goals. It is a strong motivator for most business
owners.

5. Resourcefulness

Most athletic coaching businesses have limited resources such as money, information and time.
Successful entrepreneurs figure out how to get the most out of these resources. They are masters at
stretching a dollar and making a few resources go a long way.

6. Objective

It is not easy to be objective about your business because you are passionate about making it
successful. However, you do need to be impartial and dispassionate when it comes to making
business decisions because emotion, bias and sentiment can result in poor choices.

7. Committed

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Building a successful athletic coaching business requires absolute commitment. It takes a lot of
work and there will be times when you become discouraged. It is during these times that you must
be steadfast, faithful and committed to your vision.

8. Dependable

There is a strong positive relationship between your perceived level of reliability and the success of
your athletic coaching business. Your clients expect you to be dependable and will evaluate you on
the extent to which you do what you say you will do.

9. Proactive and Not Reactive

Successful entrepreneurs anticipate problems in advance and deal with them before they occur. If
you simply react to problems and issues as they arise, you may get overwhelmed.

10. Possess Technical Skills and Knowledge

These 10 characteristics are the foundation of a successful entrepreneur. Take the time to
understand how these characteristics build on each other, and where your strengths and weaknesses
lie

CONCLUSION

Entrepreneurship is “at the heart of national advantage” (Porter, 1990). Concerning the role of
entrepreneurship in stimulating economic growth, many links have been discussed. It is of the
utmost importance in carrying out innovations and enhancing rivalry.

In Nigeria, like some other economies, the government helps to encourage entrepreneurship
development (Ebiringa, 2012). The entrepreneur is therefore an important agent of innovation
growth and technical progress. The development and utilization of their technical and commercial
skills create growth potential in micro, small and medium business enterprises. The present day
global economy is knowledge-driven operating on the pragmatic and innovative thoughts of the
entrepreneur. Business set ups have become informal and oriented towards survival and self
employment. Entrepreneurship contributes in an immeasurable ways toward creating new job,
wealth creation, poverty reduction, and income generating for both government and individuals.
Constant technological break-through compels companies to become more entrepreneurial in
identifying and exploring new ideas.

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References

Abubakar, S. G. (2010). Refocusing Education System towards Entrepreneurship Development in

Nigeria: a Tool for Poverty Eradication. European Journal of Social Sciences. 15 (1): 140-
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Adejumo, G. (2001). Indigenous Entrepreneurship Development in Nigeria: Characteristics,

Problems and Prospects. Advances in Management: Journal of Department of Business
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Agbonifoh B.A, Ehiametalor E.T, Inegbenebor A.U and Iyayi F.I (1999). The Business Enterprise
in Nigeria. Lagos: Longman Nigeria Plc.

Ebiringa, T. (2012). Perspectives: Entrepreneurship Development and Growth of Enterprises in

Nigeria. Entrepreneurial Practice Review. 2(2):31-35

Egelhoff, T. (2005). Entrepreneurs: Have you got what it takes?

www.smalltownmarketing.com/enterprenuership.html

Hisrich, R.D and Peters, M.P (2002). Entrepreneurship. New York. Mcgraw-Hill Companies. Inc.

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and Small Business Management. Lagos. Molofin Nominees.

Porter, M. E. 1990. The Competitive Advantage of Nations. New York: Free Press.

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INTERNET SEARCH

What is Business Innovation: www.zapmeta.ng/what+Is+Business+Innovation. 7/6/2017

Gallup: The 10 Qualities of Highly Successful Entrepreneurs – Forbes.

http://www.forbes.com/sites/elainepofelelt/2014/05/31/gallup-the-10-qualities. 7/6/2014

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10 Characteristics of a Highly Successful Entrepreneur. https://www:training peaks.com/10-
characteristics-of-a-highly-success. 7/6/2017

The 17 skills required so succeed as an Entrepreneur.

https://www.entrepreneur.com/article/242327. Feb. 2015. 7/6/2017

The Top Skills Every Entrepreneurs Needs - Forbes.

http://www.forbes.com/sites/aileron/2013/11/26/the-top-skills-every-entrepre 7/6/2017

List of Skills Entrepreneurs Need – The Balance. https://www.thebalance.com/list-of-skills-

entrepreneurs-need-2062391. Alison Doyle . 7/6/2017

The Importance of Innovation in Business and Why You Need to Get Busy – NOW!
ChrisDucker.com 7/6//2017

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