Entrepreneurial Behavior PDF

**ENTREPRENEURIAL BEHAVIOR** **Entrepreneur**- An individual who takes initiative to bundle resources in innovative ways and is willing to bear the risk and or uncertainty to act. \- An individual who gather resources to create an economic activity while bearing different types of social and econo...

**ENTREPRENEURIAL BEHAVIOR** **Entrepreneur**- An individual who takes initiative to bundle resources in innovative ways and is willing to bear the risk and or uncertainty to act. \- An individual who gather resources to create an economic activity while bearing different types of social and economic risks. **Entrepreneurship is the process of creating something new with:** 1. Value of devoting necessary time and effort 2. Assuming the accompanying financial, psychic, and social of monetary and personal satisfaction and independence **[Being an entrepreneur today:]** - Involves creation process - Requires devotion of time and effort - Requires assumption of necessary risks - Involves rewards of being an entrepreneur **Entrepreneurial Competencies** **Competencies** Are key skills needed by employees to do their jobs well. A competent employee is more productive and adds better value to the workplace. Therefore, competency evaluation is becoming one of the most popular ways to analyze skill gaps in the current workforce and devise methods of filling the gap. There are a lot of competencies required by modern employees; one very vital category is **entrepreneurship competency.** Entrepreneurship is not a new term. It refers to the process of setting up and successfully managing a business idea, creating monetary value, and helping the business grow. Ideally, the person(s) who owns any organization is an entrepreneur, and people working for the entrepreneur are employees. **Entrepreneurial competency** \- is a set of skills and behaviour needed to create, develop, manage, and grow a business venture. \- It also includes the ability to handle the risks that come with running a business. Without a doubt, business owners and startup founders must possess most of the entrepreneur competencies to succeed. Entrepreneurial Competencies ---------------------------- Entrepreneurship has a key role in economic development. Every career draws on the competencies of an individual. Some of these competencies may be general and some peculiar to the chosen career. A competency means abilities and skills. Recognition of these competencies as abilities and skills makes entrepreneurship as a teachable and learnable behavior. ***[Most essential qualities of successful entrepreneur]*** **Initiative** Initiation of any business activity should come from the entrepreneur.It is the entrepreneur who takes action that goes beyond job requirements or the demand of the situation. He does things before being asked or forced by the events. **Looking for opportunities** A successful entrepreneur is one who always is on the look for and takes action on opportunities. He must be always in readiness to exploit it in maximizing the interest of the organization. **Persistence** An entrepreneur should take repeated actions to overcome the obstacles that get in the way of reaching goals. He should never be disheartened by failures. He should believe in the Japanese proverb, \"Fall seven times, stand up eight\". **Commitment to work** Successful entrepreneurs do every sacrifice to get the task completed. They put highest priority for accomplishing their objective. They are committed to their work. They also express a concern for satisfying their customers. **Systematic Planning** Entrepreneurs develop and use logical, step-by-step, realistic and proper plans to accomplish their goals. They believe in systematic planning and its proper execution to reach goals. **Problem solving** Successful entrepreneurs are challenging by nature. They always try to find out ways and means to overcome the problems that come in their way. They also identity\$ new and potentially unique ideas to achieve their targets. **Self-Confidence** Successful entrepreneurs must have a strong belief in themselves and in their own abilities. They have full faith and confidence on their own knowledge, skill, and competency to complete a task or meet a challenge.They are not at all cowed down by difficult situations. **Information seeking** An entrepreneur is always in search of new ideas and information from various sources to help reach objectives or clarify problems. He can consult experts for business or technical advice. He personally undertakes research, analysis or investigation on his own to get information in realizing his goals. **Concern for quality products** Successful entrepreneurs always believe in high quality standards of their products with reasonable prices. They believe in excellence. They act to do things that meet Or beat existing standards excellence. **Competencies of an Innovator** **Creativity:** Innovators possess the ability to think outside the box and generate original ideas. They can connect seemingly unrelated concepts and envision new possibilities, which is crucial for problem-solving and developing innovative solutions. **Critical Thinking:** This competency involves analyzing situations, evaluating information, and making informed decisions. Innovators must assess the feasibility of their ideas, identify potential challenges, and determine the best course of action to bring their innovations to life. **Collaboration:** Innovation often requires teamwork and the ability to work well with others. Innovators must communicate effectively, share ideas, and leverage diverse perspectives to enhance creativity and drive projects forward. Building strong networks and partnerships is also vital. **Adaptability:** The ability to pivot and adjust to changing circumstances is crucial for innovators. They must be open to feedback, willing to learn from failures, and able to modify their approaches as new information or challenges arise in the innovation process. **Entrepreneurial Skills** Skills are considered as the personal abilities to do things well. They come from the totality of the knowledge,  practice or experience, and aptitude of a person.\ \ Skills are acquired and developed by a person through constant and correct practice. They connote dexterity, excellence, and expertise in the performance of particular tasks.\ \ **Entrepreneurial skills** refer to the set of [cognitive], [technical], and [interpersonal skills] required in the practice of entrepreneurship.\ \ **    Cognitive Skills** refer to the mental ability of the entrepreneur to learn new things, generate new ideas, and express knowledge in both oral and written forms. The human brain is responsible for the development of cognitive skills, which are essential in making systematic and effective plans and monitoring them.\ \     The cognitive skills of an entrepreneur include the following:\     1. Ability to understand written materials\     2. Ability to learn and apply new information\     3. Ability to solve problems systematically\     4. Ability to create new ideas\     5. Ability to innovate new products and procedures or methods\ \     **Technical Skills** refer to the knowledge and proficiency in a specialized field like computer technology, accounting, marketing, operations research, engineering, medical fields, or other related technical fields.\ \     The technical skills of an entrepreneur include proficiency and ability, among others, in the following areas:\     1. Information technology\     2. Feasibility study and business plan preparation\     3. Technical writing skills\     4. Marketing\     5. Management and finance\ \     In the absence of the technical skills, the output of the cognitive skills may not carry any significant value. Without the technical skills, an idea will remain to be an idea and a business opportunity will remain to be a business opportunity. \ \ **    Interpersonal Skills** are basically about the relationship and interaction of the entrepreneur with the workers, suppliers, creditors, prospective customers, and other members of the business community\ \     The interpersonal skills of an entrepreneur may include, among others, the following:\     1. Skills in verbal communication\     2. Skill in non-verbal communication\     3. Skill in listening\     4. Skills in leading\     5. Skills in negotiating **Entrepreneurial Character Traits** Character trait refers to the mark or attribute that distinguishes an entrepreneur from the owner of an ordinary small business.\ \ Among the factors that largely influence success are the character traits and competencies of the entrepreneur.\ \ Based on studies conducted by the Small Enterprise Research and Development Foundation of the Department of Trade and Industry, there are ten entrepreneurial characteristics grouped into three major clusters:\ \ 1. Achievement cluster\ 2. Planning cluster\ 3. Power cluster\ \ The Achievement Cluster consists of entrepreneurial character traits that are directly related to the entrepreneur\'s desire to be an achiever in the field of entrepreneurship.\ \ Successful entrepreneurs constantly set things to be achieved and repeatedly find ways to achieve them. The entrepreneur who belongs to the achievement cluster is\ \ 1. an opportunity-seeker,\ 2. committed,\ 3. persistent\ 4. a risk-taker, and\ 5. efficient and quality-oriented\ \ The Planning Cluster is a set of characteristics of successful entrepreneurs that basically supports the character traits in the achievement cluster.\ \ The concept of planning is inherent in the entrepreneur, being both the owner and manager of the business.\ The entrepreneur who belongs to the planning cluster is\ 1. a goal-setter,\ 2. an information-seeker, and\ 3. systematic in planning and monitoring\ \ The Power Cluster includes a set of character traits that reflect the degree of the interpersonal relations maintained by successful entrepreneurs in the community.\ The term power in this discussion simply refers to the ability of the entrepreneur to maintain the highest degree of interrelationship in the business community and influence others over to his/her line of reasoning.\ \ In simple terms, the power cluster refers to the relationship and image of the entrepreneur in the community. An entrepreneur in the power cluster is\ 1. a persuasive and positive networker, and\ 2. self-confident