LECTURE 2

PERSONAL
ENTREPRENEURIAL
COMPETENCE

PERSONAL
ENTREPRENEURIAL 1
COMPETENCE
 Introduction
1.9 Personal Entrepreneurial
Competence
Are entrepreneurs made or born?
Traits - 48 %

Knowledge Successful
Entrepreneurs

Skills

PERSONAL 2
ENTREPRENEURIAL
 2.1 Introduction
Are entrepreneurs made or born?
Contrary to the myth that entrepreneurs are
born not made, there is a strong belief
that:
• they could be inherited and developed.
• the entrepreneurial potential is widely
spread among the general population.
• Entrepreneurship is 48 % heredity
( heritable): Prof. Malachi Mixon. It is a
manifestation of the phenotype of an
individual.
PERSONAL
ENTREPRENEURIAL 3
COMPETENCE
 2.1 Introduction

• An entrepreneur needs knowledge,

skills and certain traits.
• Knowledge and skills can be learnt or
acquire or hired.
• Traits however are hereditary
( congenital ) but need to be
developed

PERSONAL 4
ENTREPRENEURIAL
2.2 Types of Skills Required in
Entrepreneurship
Technical Skills
• Writing
• Oral communication
• Monitoring environment
• Technical business management
• Technology

PERSONAL 5
ENTREPRENEURIAL
2.2 Types of Skills Required in
Entrepreneurship
Technical Skills (cont.)
• Listening
• Ability to organize
• Network building
• Management style
• Coaching
• Being a team player

PERSONAL 6
ENTREPRENEURIAL
2.2Types of Skills Required in
Entrepreneurship
Business Management Skills
• Planning and goal setting
• Decision making
• Human relations
• Marketing
• Finance
• Accounting

PERSONAL 7
ENTREPRENEURIAL
2.2Types of Skills Required in
Entrepreneurship
Business Management Skills (cont)
• Management
• Control
• Negotiation
• Venture launch
• Managing growth

PERSONAL 8
ENTREPRENEURIAL
2.2 Types of Skills Required in
Entrepreneurship
Personal Entrepreneurial Skills
(Traits)
• Inner control/disciplined
• Risk taker
• Innovative
• Change oriented
• Persistency
• Visionary leader
• Ability to manage change
PERSONAL 9
ENTREPRENEURIAL
 2.3 Entrepreneurial Traits

• Traits are characteristics, the dev’t of

which makes entry into and mgt of bus
easy and smooth.
• Research indicates that
entrepreneurial competencies/ traits
are clustered into 3
1. The Achievement motivation
2. The Planning motivation
3. The Power motivation
PERSONAL 10
ENTREPRENEURIAL
 2.3 Entrepreneurial Traits

Motivation
• Motivation is that which causes
individuals to behave in a certain
manner. To motivate means to “
stimulate the drive to exert effort”
• The need to achieve account for
the emergence of entrepreneurs in
society.
PERSONAL 11
ENTREPRENEURIAL
 2.4 The Achievement
Cluster
• Entrepreneurs dream of success and
achievement.
• Entrepreneurs have a strong desire to
achieve higher goals and to achieve their
dreams.
• The xtics examine under the
achievement cluster are: Opportunity
seeking, Risk taking
Demand for efficiency, Persistence and
Commitment to work contract
PERSONAL 12
ENTREPRENEURIAL
 2.4 The Achievement
Cluster
1. OPPORTNUTIY SEEKING AND
INITIATIVES

• They are quick to see and seize

opportunities.
• They show an innovative turn of the mind
and convert difficulties into opportunities
• They are realistic. They plan and
anticipate carefully how to achieve their
goals in realizing an opportunity.
PERSONAL 13
ENTREPRENEURIAL
 2.4 The Achievement
Cluster
1. OPPORTNUTIY SEEKING AND
INITIATIVES.

• Entrepreneurs do things before being

asked or forced by events.
• They act to extend their business into
new areas, products or services.
• They seize unusual opportunities to start
a new business, financing, equipment,
land, workspace, assistance, etc
14
PERSONAL ENTREPRENEURIAL
COMPETENCE
 2.4 The Achievement
Cluster
2.RISK TAKING

• Entrepreneurs are not high risk takers,

they are not gamblers.
• They chose a moderate risk situation
rather than play wild speculative game.
• They deliberately calculate risks and
evaluate alternatives
• And they take action to reduce risks or
control outcome
PERSONAL 15
ENTREPRENEURIAL
 2.4 The Achievement
Cluster
3. DEMAND FOR EFFICIENCY AND
QUALITY
• Entrepreneurs find ways to do things
better cheaper and faster.
• They pursue actions which get things
done to exceed standards or excellence,
• They develop procedures to ensure that
work is completed on time or work met
agreed standard of qualities

PERSONAL 16
ENTREPRENEURIAL
 2.4 The Achievement
Cluster

4. PERSISTENCE
• Once committed to a goal and a
course of action , entrepreneurs
become absorbed in it.
• Difficulties and problems that beset
projects do not deter them.
• They work hard until their project is
accomplished.
PERSONAL 17
ENTREPRENEURIAL
 2.4 The Achievement
Cluster
4. PERSISTENCE (cont)
• Entrepreneurs take repeated actions or
switch to alternative strategy to meet a
challenge overcome obstacle.
• Entrepreneurs take personal
responsibilities for the performance
necessary to achieve goals and objectives

PERSONAL 18
ENTREPRENEURIAL
 2.4 The Achievement
Cluster
5. COMMITMENT TO WORK CONTRACT
• Entrepreneurs should always
be committed to work contract.

• They make personal sacrifices or expend

extraordinary efforts to complete a job--
Entrepreneurs normally pitch in with
workers to get their job done.

PERSONAL 19
ENTREPRENEURIAL
 2.4 The Achievement
Cluster
5. COMMITMENT TO WORK CONTRACT
(cont)
• They strive hard to keep their
customers satisfied by placing long-
term goodwill over short term gain.
• Customers may lose confidence in
your business if you do not stick to
the terms of the contract you sign.

PERSONAL 20
ENTREPRENEURIAL
 2.5 Planning Cluster
Planning entails problem and opportunity
identification, goal/objective setting,
consideration of alternative courses of
action, and formulating policies and
strategies to achieve the set goals.

• Planning creates a vision of the future

and develops the objectives and
determine the resources and the
procedures to achieve that vision.

PERSONAL 21
ENTREPRENEURIAL
 2.5 Planning Cluster
• It is process associated with venture
initiation, acquisition or growth
• Planning and development of a
business plan are risk reduction
techniques

PERSONAL 22
ENTREPRENEURIAL
 2.5 Planning Cluster

Reasons for failing to plan:

• Too busy
• Lack of the expertise to plan
• How to start
• Resource unavailability

PERSONAL 23
ENTREPRENEURIAL
 2.5 Planning Cluster
Planning is very essential to:
• Secure funding or attract investors
• Clarify vision and/or direction
• Identify resource needs growth problems
• Identify entry strategies--- how to break
into the establish pattern of commercial
activities
• Anticipate competitors reactions

PERSONAL 24
ENTREPRENEURIAL
 2.5 Planning Cluster
Some benefits of planning are:
• Lower production costs
• Lower price for market shares
• Superior product
• Guaranteed growth

PERSONAL 25
ENTREPRENEURIAL
 2.5 Planning Cluster
• The characteristics examined under
the planning cluster are:
– Information seeking
– Goal setting
– Systematic planning and monitoring

PERSONAL 26
ENTREPRENEURIAL
 2.5 Planning Cluster
1. INFORMATION SEEKING
• Entrepreneurs seek information from and
on clients, suppliers and competitors.
• They do research on how to provide a
product or service and they consult
experts for business or technical advise.
• Entrepreneurs like to have immediate
feedback on their performance.

PERSONAL
ENTREPRENEURIAL 27
COMPETENCE
 2.5 Planning Cluster
2. GOAL SETTING
• Entrepreneurs know where they are
going are able to state or spell it out
clearly.
• They get inspired by goals and use it
to inspire.
• Entrepreneurs set out goals and
objectives that are personally
meaningful and challenging .
• They articulate clear & specific long-
term goals.
PERSONAL 28
ENTREPRENEURIAL
 2.5 Planning Cluster
2. GOAL SETTING
Objective must be:
• Specific
• Measurable--- it should be able to
monitor progress ; it must be
quantifiable
• Attainable/Achievable
• Realistic-
• Time bound
PERSONAL 29
ENTREPRENEURIAL
 2.5 Planning Cluster
3. SYSTEMATIC PLANNING AND
MONITORING
• Entrepreneurs plan by breaking large
tasks down into time-constrained sub-
tasks.
• They also revise plans in the light of
feedback on performance and
changing circumstances
• They keep financial records to make
business decisions
PERSONAL 30
ENTREPRENEURIAL