ENTREPRENEURIAL

COMPETENCE AND
ENVIRONMENT
LEARNING OUTCOMES
After studying this lesson, you will be able to:
• Identify qualities of entrepreneur
• Analyze the Personal Entrepreneurial Competencies (PECs)
• Identify important entrepreneurial competencies which you have to develop or
strengthens
 Abstraction
Entrepreneurial Mindset
Who Becomes an Entrepreneur?

Anyone with the following characteristics can be an entrepreneur.

1) The Young Professional: Most often of young and highly educated people who have
entrepreneurial qualifications are decided not to experience working for an established
organization and instead try to established or venture their own business.
Who Becomes an Entrepreneur?
2) The Inventor: The inventor is someone who has developed and enhanced an
innovation and who has decided to make an opportunity of presenting that
innovation to the market. It may be a new product or it may be an idea for a new
service. It may be a high-tech or it may be based on a traditional technology.
Who Becomes an Entrepreneur?
3) The Excluded: There were people shift to an entrepreneurial profession because
no possible opportunity offered to them. Displaced communities and ethnic and
religious minorities have not been invited to join the wider economic community
due to a variety of social, cultural and political and historical reasons. As a result,
they may form their own internal networks, trading among themselves and,
perhaps, with their ancestral countries.
Qualities of an Entrepreneur
In order to be successful, an entrepreneur should have the following qualities:
✓ Opportunity-seeking
✓ Persevering
✓ Risk Taking
✓ Demanding for efficiency and quality
✓ Information-seeking
✓ Goal Setting
Qualities of an Entrepreneur
In order to be successful, an entrepreneur should have the following qualities:
✓ Planning
✓ Persuasion and networking
✓ Building self-confidence
✓ Listening to others
✓ Demonstrating leadership
Qualities of an Entrepreneur
1. Opportunity-seeking: An opportunity is a favorable set of circumstances that
creates a need for a new product, service or business. It includes access to
credit, working premises, education, trainings etc.
2. Persevering: An entrepreneur always makes concerted efforts towards the
successful completion of a goal. An entrepreneur perseveres and is
undeterred by uncertainties, risks, obstacles, or difficulties which could
challenge the achievement of the ultimate goal.
Qualities of an Entrepreneur
3. Risk Taking: The best entrepreneurs tend to:
• Set their own objectives where there is moderate risk of failure and take calculated risks
• Gain satisfaction from completing a job well
• Not be afraid of public opinion, skepticism
• Take responsibility for their own actions
Importance of Risk-taking
• Build self confidence
• Create a feeling of leadership
• Create strong motivation to complete a job well
Qualities of an Entrepreneur
4. Demanding for Efficiency and Quality Efficiency: Being efficient means producing results with
little wasted effort.
Quality refers to:
1. The ongoing process of education, communication, evaluation and constant improvement of
goods/services to meet the customer’s need in a way that exceeds the customer’s expectations;
2. A characteristic of the product or service that makes it fit to use. It makes a product, process,
or service desirable.
3. The ability of a product or service to meet a customer’s expectations for that product or
service.
Qualities of an Entrepreneur
Quality plays an important role in this new era of globalization because it confers certain
benefits which include

Reduction of waste: Striving to maintain quality means examining all processes

that contribute to the creation of a product, to remove non- productive processes
and waste.
Cost-effectiveness: Striving to ensure quality helps businesses to minimize the
chances that they will make mistakes. As a result, the costs of re-
Qualities of an Entrepreneur
Quality plays an important role in this new era of globalization because it confers certain
benefits which include

An increase in market share: Customers prefer to buy the same product again and
again if they are satisfied with the quality. If they are satisfied with the quality of a
product, then they will not only purchase the product/services more than once, but
they will also recommend it to their friends.
Qualities of an Entrepreneur
Quality plays an important role in this new era of globalization because it confers certain
benefits which include

Better profitability: Better quality of product satisfies customers. Increased customers

mean increase sales, increased shares in market and consequently increased profits.
Social responsibility: By providing quality products and services, a company is more
likely to be able to fulfill its responsibility to the community and meet standards set
by government.
Qualities of an Entrepreneur
Quality plays an important role in this new era of globalization because it confers certain
benefits which include

Reputation: Quality of goods and services improves the reputation of the business
for competition in the market and growth.
Qualities of an Entrepreneur
5. Information-seeking:
Successful entrepreneurs do not rely on guesswork and do not rely on
others for information. Instead, they spend time collecting information about their
customers, competitors, suppliers, relevant technology and markets.
Qualities of an Entrepreneur
6. Goal Setting A Goal - is a general direction, or long-term aim that you want to
accomplish. It is not specific enough to be measured. It is large in scope, not
necessarily time-bound, and is something that people strive for by meeting certain
objectives which will hopefully add up to eventually achieving the goal.

Objectives - are specific and measurable. They are concise and specific.
Qualities of an Entrepreneur
An entrepreneur must have a goal and an objective which is specific, measurable,
attainable relevant, and time bound (SMART).
❖ Specific: Great goals are well-defined and focused.
❖ Measurable: Numbers are an essential part of business. Put concrete
numbers in your goals to know if you’re on track.
❖ Attainable: Dream big and aim for the stars but keep one foot firmly
based in reality.
Qualities of an Entrepreneur
An entrepreneur must have a goal and an objective which is specific,
measurable, attainable relevant, and time bound (SMART).
❖ Relevant: Achievable business goals are based on the
current conditions and realities of the business climate.
❖ Time-Based: Business goals and objectives just don’t get
done when there’s no time frame tied to the goal-setting process.
Qualities of an Entrepreneur
7. Planning: Planning is making a decision about the future in terms
of what to do, when to do, where to do, how to do, by whom to do
and using what resources. An effective entrepreneur therefore
usually plans his/her activities and accounts as best as they can for
unexpected eventualities.
 Qualities of an Entrepreneur
8. Persuasion and Networking - Persuasion is a way of convincing someone to get something or
make a decision in your favor.
Importance of Persuasion in Business
✓ We purchase goods from people
✓ We sell goods to people
✓ We need support from people
✓ We work with people.
Without people, be they are suppliers, workers, and most importantly customers, there is no
business.
Qualities of an Entrepreneur
Networking is an extended group of people with similar interests or concerns who
interact and remain in informal contact for mutual assistance or support.
Factors that Affect Persuasion and Networking
✓ Socio-cultural background and perceptions
✓ Communication skills (both verbal and non-verbal).
✓ Negotiation skills
Qualities of an Entrepreneur
9. Building Self-confidence: Self-confidence is the state of being certain that a
chosen course of action is the best or most effective given the circumstances.
Characteristics of a Self-confident Person A person with self-confidence may
exhibit some of the following characteristics:
✓Risk-taking: willing to take risks and go the extra mile to
achieve better things.
✓Independent: entrepreneurs like to be their own masters and want to
be responsible for their own decisions.
Qualities of an Entrepreneur
Characteristics of a Self-confident Person A person with self-confidence may exhibit some
of the following characteristics:
✓ Perseverance: Ability to endure and survive setbacks and continue
to build confidence in whatever you do in your business.
✓ Able to learn to live with failure. Entrepreneurs are going to make
mistakes. They are human. But they learn from these mistakes and then move
on.
Qualities of an Entrepreneur
10. Listening to Others: An entrepreneur does not simply impose his/her idea on
others. Rather, he/she listens to other people in their sphere of influence, analyses
their input in line with his/her own thinking and makes an informed decision.

11. Demonstrating Leadership: An entrepreneur does not only do things by

him/herself, but also gets things done through others. Entrepreneurs inspire,
encourage and lead others to undertake the given duties in time.
Qualities of an Entrepreneur
Guides on how to strengthen your own PECs:
1. React positively to criticisms and be open to feedbacks.
2. Always demonstrate a positive attitude to achieve a desired goal.
3. Always project a strong and well-balanced behavior.
4. Always exercise the assertive style in your work environment.
5. Avoid being too passive and being too aggressive.
6. Consider negative comments as challenges in improving your business.
Qualities of an Entrepreneur
Guides on how to strengthen your own PECs:
7. Prioritize your business goals rather than personal goals in order to
become a successful entrepreneur.
8. Acquire specific skills for creating and maintaining a conducive
work environment.
9. Be responsible for everything you do in your business.
10. Always observe entrepreneurial ethics in putting up a business.
Qualities of an Entrepreneur
Developing Yourself for Entrepreneurship
A. Be Creative
To be creative is to generate ideas and images in your head in order to
come up with solutions and alternative solutions to problems. Creativity is
with in all of us. We use it all the time.
Qualities of an Entrepreneur
Developing Yourself for Entrepreneurship
B. Actively Seek Opportunities
If you will go into business, opportunity-seeking is very important. It will help
you in many ways. If you actively seek opportunities:
✓ You will find customers or markets where other people find one.
✓ You will find new uses for old products, including waste products
✓ You will find new ways of doing things
✓ You will find new products for old markets or customers
Qualities of an Entrepreneur
Developing Yourself for Entrepreneurship
C. Take Moderate Risks
The successful entrepreneur takes risks, but before doing so, he is able to recognize, assess, and
minimize these risks. Achievers are moderate risk-takers.
Here are some suggestions on what to do to be a moderate risk-taker:
1. Assess the situation carefully
2. Find out of your actions will have negative side-effects
3. Ask for advice from knowledgeable people
4. 1. Assess the situation carefully 2. Find out of your actions will have negative side-effects 3. Ask for advice
from knowledgeable people 4. Plan for contingencies or prepared for all eventualities Plan for contingencies
or prepared for all eventualities
Qualities of an Entrepreneur
Developing Yourself for Entrepreneurship
D. Practice Persistence
Persistence is trying to do something even if other people say that you are likely to
fail. Try and try until you succeed again.
E. Be Committed to What You Set out to Do
Here are some guidelines that may help in building your commitment to work contact:
1. Have strength of character. Entrepreneurs have words of honor.
2. Only make promises you can keep.
Qualities of an Entrepreneur
Developing Yourself for Entrepreneurship
Here are some guidelines that may help in building your commitment to work
contact:
3. Know what to do when you cannot keep a promise.
4. Cultivate the trust of others. Trust is the roof of good entrepreneur customer and
entrepreneur-supplier relationship.
5. Clarify expectations. The promise you make must be based on what is
reasonable for all concerned.
6. Apologize sincerely.
Qualities of an Entrepreneur
Developing Yourself for Entrepreneurship
F. Set High Standards of Quality and Efficiency
Here are behaviors that can help you achieve quality and efficiency in business and other aspects of life:
1. Consistency is important
2. A neglected and dissatisfied customer might never return
3. Devotion to quality and efficiency must become a way of life for you and your
workers.
4. Use appropriate technology to help you.
Qualities of an Entrepreneur
Developing Yourself for Entrepreneurship
G. Seek Information
Knowledge is Power. You need information to determine whether your
business idea will be profitable or not, to find out whether there are people who
will buy your products, and at what price. You need information in order to have
facts about your competitors and how can you compete with them in the
marketplace.
Qualities of an Entrepreneur
Developing Yourself for Entrepreneurship
H. Believe in Yourself
Entrepreneurs are rather self-confident people. They believe they can achieve their goals. Here are some
ways to develop your self-confidence:
✓ Know as much about yourself as you can
✓ Look at your qualities in a realistic manner
✓ Emphasize your strengths and play down your weaknesses by choosing
activities and goals where you do best
✓ Take care of yourself physically so that you look good to yourself and to others.
Thank you for listening!!!
1-5 What is SMART?
1. Spec