Entrepreneurship: Definitions and Characteristics

• Entrepreneurship involves opportunity-focused thinking and acting, using a holistic approach and balanced leadership to create wealth (BABSON'S Definition).
• Entrepreneurship includes initiating a new business or revitalizing an existing one by combining resources to take advantage of new opportunities
• An entrepreneur seeks, responds to, and uses change as an opportunity, with innovation being the tool to exploit change into a new business or service (DRUCKER, 1985).
• Entrepreneurship means pursuing opportunities without considering current resource limitations (STEVENSON).

Who is an Entrepreneur?

• An entrepreneur innovates or develops, recognizes, and seizes opportunities.
• An enterprenur converts opportunities into workable and marketable ideas.
• An entrepreneur adds value through time, effort, money, or skills.
• An entrepreneur assumes risks in the competitive marketplace to implement ideas.
• An entrepreneur realizes the rewards from these efforts (Kuratko & Hodgetts, 2007).

Entrepreneurial Competencies

• Entrepreneurial competencies were identified by McClelland and McBer in 1985.
• Key competencies include initiative, opportunity seeking, persistence, information seeking, concern for high quality of work, commitment to work contract, efficiency orientation, systematic planning, problem-solving, self-confidence, and assertiveness

Initiative

• Entrepreneurs should take initiative beyond their job requirements and act quickly, aiming to lead in business.
• Displaying initiative includes acting before being asked or compelled by the situation.
• Displaying initative includes acting to extend the business into new areas, products, or services.

Sees and Acts on Opportunities

• Entrepreneurs actively seek and act on opportunities.
• Entrepreneurs recognize and act on new business opportunities.
• Entrepreneurs seize unusual situations to gain resources, workspace, or assistance.

Persistence

• Entrepreneurs make repeated or varied efforts to overcome obstacles that impede reaching goals.
• Taking repeated or different actions to overcome obstacles is necessary for persistence.
• Taking action in the face of significant obstacles demonstrates persistence.

Information Seeking

• Entrepreneurs actively seek information to achieve business objectives or clarify problems.
• Information seeking includes doing personal research on providing a product or service.
• Information seeking includes consulting experts and experienced people to obtain relevant information.
• Information seeking includes asking questions to clarify needs.
• Information seeking includes undertaking market research, analysis, or investigation.
• Information seeking includes using contacts and information networks to obtain useful information.

Concern for High Quality of Work

• Entrepreneurs aim for standards of excellence for greater satisfaction.
• Stating a desire to produce a top-quality product or service demonstrates concern for quality.
• An entrepreneur favorably compares their work to that of others.

Commitment to Work Contract

• Entrepreneurs prioritize completing a job.
• Demonstrate commitment by making personal sacrifices or expending extraordinary effort to complete a job.
• Show commitment by accepting responsibility for problems in completing jobs for customers.
• Indicate commitment by pitching in with workers to get jobs done.
• Show commitment by expressing concern for customer satisfaction.

Efficiency Orientation

• Successful entrepreneurs seek faster or cheaper ways to do things.
• Efficiency orientation includes looking for ways to do things faster or at less cost.
• Efficiency orientation includes using information or business tools to improve efficiency.
• Efficiency orientation includes expressing concern about costs vs. benefits of improvements or changes

Systematic Planning

• Entrepreneurs use logical, step-by-step plans to reach goals.
• Planning includes breaking large tasks into sub-tasks
• Planning includes developing plans that anticipate obstacles.
• Planning includes evaluating alternatives.
• Planning includes taking a logical and systematic approach to activities

Problem Solving

• Successful entrepreneurs identify new and unique ideas to achieve his goals.
• When problem solving entrepreneurs switch to alternative strategies to reach goals.
• When problem solving entreprenuers generate new or innovative solutions

Self-Confidence

• Successful entrepreneurs have strong beliefs in themselves and their abilities.
• Entrepreneurs express confidence in their ability to complete tasks or meet challenges.
• Entrepreneurs stick with their judgment despite opposition or early lack of success.

Assertiveness

• Entrepreneurs directly address problems and issues with others.
• Entrepreneurs confront problems with others directly.
• Entrepreneurs tell others what they have to do.
• Entrepreneurs reprimand or discipline those failing to perform as expected.