Core Competencies in Entrepreneurship

Study Notes

Core Competencies in Entrepreneurship

Core competencies are defining characteristics that make a business or individual stand out from competition
A core competence is something unique a business has or does strategically well
Three general conditions of core competencies:
- The activity must provide superior value or benefits to the consumer
- The activity should be difficult to replicate by competitors
- The activity should be rare
Core competencies of entrepreneurs:
- Entrepreneurs as missionaries
- Entrepreneurs as goal-driven
- Entrepreneurs as marketing men
- Entrepreneurs start small and grow big
- Entrepreneurs are excellent at obtaining resources
SWOT analysis is a tool used to evaluate a business (Strengths, Weaknesses, Opportunities, and Threats). Entrepreneurs should know how to analyze their business using SWOT analysis
A young entrepreneur (e.g., someone selling milk tea) would benefit from using SWOT analysis to identify new market opportunities and challenges
- Examples of internal strengths include unique taste, quality ingredients, friendly staff
- Examples of internal weaknesses are low profits, no business website and competitive offerings
- Examples of external opportunities include a market boom, expansion of branches and loyalty programs
- Examples of external threats include increasing costs of ingredients, negative reviews and more competitors in the market
Most Filipinos start businesses when they see that other businesses in the area are profitable.
All growth starts from the beginning. The same applies to the business world, with many entrepreneurs who begin small and grow into large companies.

Explaining Statements

Entrepreneur as a missionary: Entrepreneurs with a strong sense of direction or a mission drive their endeavors, striving to achieve a specific goal.
Entrepreneur as a marketing man: Entrepreneurs heavily invest in marketing strategies to reach and engage their target audience. They develop unique selling propositions and utilize various marketing channels.
Entrepreneurs are goal-driven: Entrepreneurs have well-defined goals and work meticulously to achieve them. They are motivated by results and success.
Entrepreneurs start small and grow big: Entrepreneurs may begin their venture as small startups, gradually expanding and scaling their business operations until they reach considerable success and grow to become major companies.
Entrepreneur is excellent in obtaining resources: Entrepreneurs are proficient at securing the necessary resources for their business to operate effectively and successfully. This encompasses securing funding, sourcing components, and recruiting essential personnel.

Additional Questions and Answers

Why do core competencies matter to every business and entrepreneur? Core competencies enable businesses to distinguish themselves from rivals and meet client needs effectively. This uniqueness contributes to enhanced profitability and market share.
How do entrepreneurs determine the core competency of their business? Entrepreneurs identify core competencies by analyzing their specialized strengths - determining resources, talents, and unique advantages of their business or venture.
Why are entrepreneurial competencies considered as entrepreneurial distinctive? Entrepreneurial competencies help a business stand out from the competition by creating a competitive edge. This uniqueness influences an entrepreneur's achievement of their defined goals.