ENTREPRENEURSHIP

How Entrepreneurs Think

● Actuate Self-Assessment and Choose Course of Action

● Generate Multiple Decision Models
● Learn from Failure

Entrepreneurial Competences
- Are the sum total of the personality, skills and knowledge that the entrepreneur
possesses.
According to Lau, Man and Chan (1999) Entrepreneurial competencies are considered a higher-
level characteristic encompassing personality traits, skills and knowledge, and therefore, can be
seen as the total ability of the entrepreneur to perform a job role successfully

According to Camuffo, Gerli, and Gubitta (2012)

The entrepreneurs’ competencies can be divided into functional, behavioral, and cross-
functional groups.

Functional competencies – are those skills, organized into clusters, regarding the main areas of
managerial knowledge, such as accountancy, finance, control, marketing, HR management,
organization, operations, internationalization, and strategy, plus other capabilities that enable
the entrepreneur to manage the organization.

Emotional competencies- are those specific behaviors grouped into five clusters. : Self-
awareness,
Self-management, social awareness, relationship management, and cognitive competencies.

Cross-functional competencies- are those broad overall skills that are grouped into goal and
action management cluster, people management cluster, and analytical reasoning cluster.

Six competency Areas by Man and Chan

1. Opportunity competencies- competencies related to recognizing and developing

market opportunities through various means.
2. Relationship competencies- competencies related to person-to-person or individual-to-
group-based interactions.
3. Conceptual competencies- competencies related to different conceptual abilities,
which are reflected in the behaviors of the entrepreneur. E.g decision making…
4. Organizing competencies- competencies related to the organization of different internal
and external human, physical, financial, and technological resources, including team-
building, leading employees, training, and controlling.
5. Strategic competencies- competencies related to setting, evaluating and implementing
the strategies of the firm.
6. Commitment competencies- competencies that drive the entrepreneur to move ahead
with the business.
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