Lesson 3: Entrepreneurial Skills and
Ability to innovate new
Competencies
Skills - are considered as the personal
abilities to do things well. They come from
the totality of knowledge, practice or
experience, and aptitude of a person.
THE SOURCES OF SKILLS
● KNOWLEDGE
● APTITUDE
● PRACTICE / EXPERIENCE
Entrepreneurial Skills - refer to the set of
cognitive, technical, and interpersonal
skills required in the practice of
entrepreneurship
● Cognitive - 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.
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.
products and procedures or
methods.
● Problem - Solving Skills - is the
process of identifying a problem,
developing possible solution paths,
and taking the appropriate course of
action.
The scientific approach in solving
business problems involves:
1. Defining the real problem,
2. Gathering information about
the problem,
3. Formulating alternative
solutions,
4. Evaluating alternative
solutions,
5. Selecting and implementing
the optimal solutions, and
6. Evaluating the decision.
The possible effects of each
alternative solution must be
grouped in the following
categories:
1. Effect to the business in
general
2. Effect to the workforce
3. Effect to the supplier of raw
materials and utility provider.
4. Effect to the end user and
prospective consumers.
5. Effect to the future operation.
6. Effect to other departments or
units
7. Effect to the financial,
marketing, and production
operations.
 In the process of evaluating each
alternative solution, the following criteria
must be considered:
1. Availability of production resources
2. Cost involved in the implementation
3. Degree of the risk involved
4. Effect to the whole business
5. Nature, type, and size of the problem
6. Level of urgency
7. Different forces in the environment
● Technical skills - are the abilities
and knowledge needed to perform
specific tasks. They are practical,
and often relate to mechanical,
information technology,
mathematical, or scientific tasks.
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
● 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. Skills in non-verbal
communication
3. Skills in listening
4. Skills in leading
5. Skills in negotiating
CORE COMPETENCY - is defined as the
combination of entrepreneurial concepts and
principles, entrepreneurial character traits
and entrepreneurial skills that provide and
become the ultimate source of competitive
advantage of the entrepreneur.
The Entrepreneurial Competency - The
harmonious combination of entrepreneurial
concepts and principles, character traits
and entrepreneurial skills define
entrepreneurial competency
The Entrepreneurial Competency as
Source of Competitive Advantage
Competitive advantage - refers to the
strategic position and condition of the
entrepreneurial venture that:
1. Provides the necessary attributes to
outperform competitors,
2. Distinguishes the venture from
competitors,
3. Achieves superior performance in
the industry, and
4. Produces products or develops
production methods that can hardly
be copied by competitors.