Entrepreneurial Skills
Introduction
All entrepreneurs are different but there are some characteristics and qualities that have been
observed to be common among successful entrepreneurs over the years. Along with the
qualities and traits, the motivation to choose the path of entrepreneurship as well as the
journey to success is also different for each entrepreneur. However, one thing that drives all
entrepreneurs is the sense of purpose behind their venture as well as willingness to take the
leap and implement their ideas. More than anything, most entrepreneurs follow a basic
process of entrepreneurship to kick start their ventures.
Barriers to Becoming an Entrepreneur
Recognizing a need and having an idea of how to fill the gap or need, are rarely a strong
enough basis for launching a new venture, particularly if the entrepreneur needs to borrow
capital. Most successful entrepreneurs also create a business plan, a formal document that
contains a statement of purpose, a description of the products or services to be offered a
market analysis, financial projections and some management procedures designed to attain
the firm’s goals. Before they can write a business plan, though, entrepreneurs must be aware
of the barriers to entry.
Unsupportive business environment: Lack of supportive and market-augmenting
governmental regulations serve as a barrier to entrepreneurship. For example, Russia leads all
other large nations in having an unsupportive business environment because they lack rule of
law, enforce regulations inconsistently, allow rampant corruption and bribing, allow
regulatory authorities and inspectors to act in a predatory nature which therefore requires
friendly ties with government officials and bureaucrats to smooth the way for businesses to
operate.
Employee related difficulties: Building an employee asset base for the enterprise is one of
the more daunting and sometimes overlooked tasks. Entrepreneurs must find and select the
best-qualified employees who are motivated and willing to grow with the venture. Then they
must ensure the employees do not leave. This task becomes a barrier when employee
expectations increase, governmental regulations related to labor employment are hardened,
and employee costs grow.
Market entry regulations: Governmental rules, taxation, environmental regulations, lending
requirements and licensing are all barriers to entrepreneurship. Most countries license market
entry and the creation of new firms to protect incumbents in certain industries and
professions. Other barriers to entrepreneurship are predatory tax behavior of authorities, lack
of property rights and tax disadvantages.
Shortage of funds and resources: Finding the money to start up an enterprise is a leading
barrier to entrepreneurship. Without funds, any person cannot begin to organize, train,
develop and sell product.
Lack of Entrepreneurial Capacity: Entrepreneurial capacity is the existence of people with
entrepreneurship qualities, willingness and motivation to initiate new ventures. Opportunities
1
,go untried until someone comes along with an eye for possibility and a can-do attitude. Some
cultures may discourage entrepreneurial capacity resulting in a low rate of new firm entrance.
Lack of Adequate Entrepreneurship Training: Training and education can be a robust
incubator for new ventures. This includes training in technical skills, managerial skills,
entrepreneurial skills and entrepreneurship.
Lack of Appropriate Technical and Practical Skills: People tend to use the skills they have
acquired to pursue entrepreneurial initiative. Lacking the appropriate skills and knowledge
inhibits economic development.
Fear of Failure: Entrepreneurs have to decide whether to take action so they don’t miss the
boat, while knowing that hasty action may cause them to sink the boat.
Aversion to Risk: A psychological barrier closely related to the fear of failure is aversion to
risk. Entrepreneurs must take initiative, create structure with a social-economic mechanism
and accept risk of failure. Entrepreneurs have to be risk takers while those who are risk
averse will seek the security in an existing establishment.
Fear as a barrier
Fear is defined as an unpleasant feeling triggered by the perception of danger, real or
imagined. It is a fundamental part of human psychology. Our brains are wired to feel fear
because it helps us avoid calamity; it keeps us safe. But fear can also hold us back if we let it.
Fear feeds on fear, meaning the more we try to avoid something we’re afraid of, the bigger
and deeper our anxiety grows. To overcome this, we must face our deep-seated misgivings
and worries. We have to acknowledge our fears and find ways to move beyond them.
In the process of entrepreneurship, many fears serve as obstacles in taking action. If
entrepreneurs don’t confront them, the fears can ultimately consume them. Some common
fears seen in entrepreneurs are as follows:
Fear of failure: The fear of failure is like a tiny voice whispering into your ears that
everything could go wrong in the business. The best way to overcome this fear is to accept
that failure is possible, even for the most gifted entrepreneurs. With every failure comes an
added value in strength, courage, wisdom and knowledge. Whenever you experience any
setback, do a little soul searching to find out what mistakes were yours, why you made them
and what you learnt.
The Fear of not being an expert: Even though you probably know enough about your
business or product to make important decisions or solve most of the nagging issues that may
arise, many entrepreneurs still face the fear of not being considered as experts in their line of
business. This fear, however minor it may seem, has a way of limiting your potential as an
entrepreneur. For the things about a business one might not know, there is no shame in
constantly learning and finding answers to them. Learning about the business is a continuous
process that will surely lead to perfection in the long.
Fear of being pushed into uncomfortable situations: Many people fear public speaking
more than death. Just the thought of it puts us on edge and makes us anxious. With practice,
however, we can become comfortable pushing ourselves outside our comfort zones. But it
2
, won’t happen without getting into the right mindset and prepping to take on this challenge.
One can start by taking small steps and doing things just outside of their comfort zone.
Fear of taking risks: A risk can pay off with amazing success, or it can lead to a downward
spiral and failure. But there is an important difference between dangerous, unmitigated risk
and thoughtful, calculated risk. Dangerous risk takers are like gamblers, betting it all on
something that isn’t proven. With a calculated risk, you have strategized each step of the
way. One must move incrementally towards their goal, carefully assessing their level of
investment and overhead. Calculated risks are key to every success.
Fear of the unknown: Uncertainty registers in our brain like a blaring alarm. We often avoid
the unknown because we fear change. We are afraid of losing control and being unable to
manage potential outcomes. Allowing ourselves to take a massive leap into the unknown is
terrifying because we have no guarantees of how things will turn out. The unknown will
certainly lead to change of some kind.
Entrepreneurial Competencies
Entrepreneurial behavior requires certain knowledge, skills or personality profile. Generally,
it is called entrepreneurial competence or traits. A competence may be defined as underlying
characteristics of a person which results in effective and/or superior performance in a job.
Entrepreneurial competencies play a key role in the success of an entrepreneur and in
achievement of entrepreneurial goals.
Common Entrepreneurial Competencies
In a study conducted by David C. McClelland, a reputed behavioural scientist, and
Entrepreneurship Development Institute of India (EDII), certain competencies were identified
that were found in successful entrepreneurs who exhibited superior performance. These
competencies can be developed through training, experience and guidance in a budding
entrepreneur. Some of these competencies include:
1. Taking Initiative: It is an inner urge in an individual to do or initiate something. It is the
entrepreneur who takes the first move towards setting up of an enterprise. Most innovative
entrepreneurs have this urge to do something different. An entrepreneur basically is an
innovator who carries out new combinations to initiate and accelerate the process of
economic development.
2. Seeking and Acting on Opportunity: An entrepreneur is always on the look-out or
searching for opportunity and is ready to exploit it in the best interests of the enterprise.
3. Persistence: An entrepreneur is never disheartened by failures and keeps trying, adapting
and iterating to overcome obstacles that come in the way of achieving goals.
4. Information Seeking: A successful entrepreneur always keeps his/her eyes and ears open
and is receptive to new ideas which can help in realizing his goals. He/she is always open to
consult with experts and mentors to get the right guidance and advice.
5. Concern for High Quality: Successful entrepreneurs are seen to be not satisfied with
moderate or average performance. They set high quality standards for themselves and then
3
Introduction
All entrepreneurs are different but there are some characteristics and qualities that have been
observed to be common among successful entrepreneurs over the years. Along with the
qualities and traits, the motivation to choose the path of entrepreneurship as well as the
journey to success is also different for each entrepreneur. However, one thing that drives all
entrepreneurs is the sense of purpose behind their venture as well as willingness to take the
leap and implement their ideas. More than anything, most entrepreneurs follow a basic
process of entrepreneurship to kick start their ventures.
Barriers to Becoming an Entrepreneur
Recognizing a need and having an idea of how to fill the gap or need, are rarely a strong
enough basis for launching a new venture, particularly if the entrepreneur needs to borrow
capital. Most successful entrepreneurs also create a business plan, a formal document that
contains a statement of purpose, a description of the products or services to be offered a
market analysis, financial projections and some management procedures designed to attain
the firm’s goals. Before they can write a business plan, though, entrepreneurs must be aware
of the barriers to entry.
Unsupportive business environment: Lack of supportive and market-augmenting
governmental regulations serve as a barrier to entrepreneurship. For example, Russia leads all
other large nations in having an unsupportive business environment because they lack rule of
law, enforce regulations inconsistently, allow rampant corruption and bribing, allow
regulatory authorities and inspectors to act in a predatory nature which therefore requires
friendly ties with government officials and bureaucrats to smooth the way for businesses to
operate.
Employee related difficulties: Building an employee asset base for the enterprise is one of
the more daunting and sometimes overlooked tasks. Entrepreneurs must find and select the
best-qualified employees who are motivated and willing to grow with the venture. Then they
must ensure the employees do not leave. This task becomes a barrier when employee
expectations increase, governmental regulations related to labor employment are hardened,
and employee costs grow.
Market entry regulations: Governmental rules, taxation, environmental regulations, lending
requirements and licensing are all barriers to entrepreneurship. Most countries license market
entry and the creation of new firms to protect incumbents in certain industries and
professions. Other barriers to entrepreneurship are predatory tax behavior of authorities, lack
of property rights and tax disadvantages.
Shortage of funds and resources: Finding the money to start up an enterprise is a leading
barrier to entrepreneurship. Without funds, any person cannot begin to organize, train,
develop and sell product.
Lack of Entrepreneurial Capacity: Entrepreneurial capacity is the existence of people with
entrepreneurship qualities, willingness and motivation to initiate new ventures. Opportunities
1
,go untried until someone comes along with an eye for possibility and a can-do attitude. Some
cultures may discourage entrepreneurial capacity resulting in a low rate of new firm entrance.
Lack of Adequate Entrepreneurship Training: Training and education can be a robust
incubator for new ventures. This includes training in technical skills, managerial skills,
entrepreneurial skills and entrepreneurship.
Lack of Appropriate Technical and Practical Skills: People tend to use the skills they have
acquired to pursue entrepreneurial initiative. Lacking the appropriate skills and knowledge
inhibits economic development.
Fear of Failure: Entrepreneurs have to decide whether to take action so they don’t miss the
boat, while knowing that hasty action may cause them to sink the boat.
Aversion to Risk: A psychological barrier closely related to the fear of failure is aversion to
risk. Entrepreneurs must take initiative, create structure with a social-economic mechanism
and accept risk of failure. Entrepreneurs have to be risk takers while those who are risk
averse will seek the security in an existing establishment.
Fear as a barrier
Fear is defined as an unpleasant feeling triggered by the perception of danger, real or
imagined. It is a fundamental part of human psychology. Our brains are wired to feel fear
because it helps us avoid calamity; it keeps us safe. But fear can also hold us back if we let it.
Fear feeds on fear, meaning the more we try to avoid something we’re afraid of, the bigger
and deeper our anxiety grows. To overcome this, we must face our deep-seated misgivings
and worries. We have to acknowledge our fears and find ways to move beyond them.
In the process of entrepreneurship, many fears serve as obstacles in taking action. If
entrepreneurs don’t confront them, the fears can ultimately consume them. Some common
fears seen in entrepreneurs are as follows:
Fear of failure: The fear of failure is like a tiny voice whispering into your ears that
everything could go wrong in the business. The best way to overcome this fear is to accept
that failure is possible, even for the most gifted entrepreneurs. With every failure comes an
added value in strength, courage, wisdom and knowledge. Whenever you experience any
setback, do a little soul searching to find out what mistakes were yours, why you made them
and what you learnt.
The Fear of not being an expert: Even though you probably know enough about your
business or product to make important decisions or solve most of the nagging issues that may
arise, many entrepreneurs still face the fear of not being considered as experts in their line of
business. This fear, however minor it may seem, has a way of limiting your potential as an
entrepreneur. For the things about a business one might not know, there is no shame in
constantly learning and finding answers to them. Learning about the business is a continuous
process that will surely lead to perfection in the long.
Fear of being pushed into uncomfortable situations: Many people fear public speaking
more than death. Just the thought of it puts us on edge and makes us anxious. With practice,
however, we can become comfortable pushing ourselves outside our comfort zones. But it
2
, won’t happen without getting into the right mindset and prepping to take on this challenge.
One can start by taking small steps and doing things just outside of their comfort zone.
Fear of taking risks: A risk can pay off with amazing success, or it can lead to a downward
spiral and failure. But there is an important difference between dangerous, unmitigated risk
and thoughtful, calculated risk. Dangerous risk takers are like gamblers, betting it all on
something that isn’t proven. With a calculated risk, you have strategized each step of the
way. One must move incrementally towards their goal, carefully assessing their level of
investment and overhead. Calculated risks are key to every success.
Fear of the unknown: Uncertainty registers in our brain like a blaring alarm. We often avoid
the unknown because we fear change. We are afraid of losing control and being unable to
manage potential outcomes. Allowing ourselves to take a massive leap into the unknown is
terrifying because we have no guarantees of how things will turn out. The unknown will
certainly lead to change of some kind.
Entrepreneurial Competencies
Entrepreneurial behavior requires certain knowledge, skills or personality profile. Generally,
it is called entrepreneurial competence or traits. A competence may be defined as underlying
characteristics of a person which results in effective and/or superior performance in a job.
Entrepreneurial competencies play a key role in the success of an entrepreneur and in
achievement of entrepreneurial goals.
Common Entrepreneurial Competencies
In a study conducted by David C. McClelland, a reputed behavioural scientist, and
Entrepreneurship Development Institute of India (EDII), certain competencies were identified
that were found in successful entrepreneurs who exhibited superior performance. These
competencies can be developed through training, experience and guidance in a budding
entrepreneur. Some of these competencies include:
1. Taking Initiative: It is an inner urge in an individual to do or initiate something. It is the
entrepreneur who takes the first move towards setting up of an enterprise. Most innovative
entrepreneurs have this urge to do something different. An entrepreneur basically is an
innovator who carries out new combinations to initiate and accelerate the process of
economic development.
2. Seeking and Acting on Opportunity: An entrepreneur is always on the look-out or
searching for opportunity and is ready to exploit it in the best interests of the enterprise.
3. Persistence: An entrepreneur is never disheartened by failures and keeps trying, adapting
and iterating to overcome obstacles that come in the way of achieving goals.
4. Information Seeking: A successful entrepreneur always keeps his/her eyes and ears open
and is receptive to new ideas which can help in realizing his goals. He/she is always open to
consult with experts and mentors to get the right guidance and advice.
5. Concern for High Quality: Successful entrepreneurs are seen to be not satisfied with
moderate or average performance. They set high quality standards for themselves and then
3
