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REVIEW OF RELATED LITERATURE

This chapter presents the literature related to the variables of the study.

This includes Entrepreneurial skills, Efficiency Orientation, Systematic

Planning, Problem Solving, Persistence, Concern for High-Quality Work, and

Profitability.

Entrepreneurial skills

According to Shabir and Kassim (2019), Entrepreneurial skills are

defined as “identifying customer needs, technical or market opportunities, and

pursuing opportunities”. Entrepreneurship competence describes these as

knowledge, skills, beliefs, and motivational aspects that the individual scope

more efficiently with the increasing globalization, uncertainty, and complexity

of the world (Lackéus, Lundqvist, & Middleton 2015).

According to Mosquera & Jardim De Palma (2020) an ‘’entrepreneurial

skill’’ is defined as the ability to operationalize, in a concrete situation, a set of

knowledge, attitudes, and skills to be successful in a business venture.

Furthermore, it shows a specific competence when successfully

operationalizing its knowledge in specific situations. They are understood as

the knowledge, attitudes, and skills that enable someone to be successful in

making their business profitable.

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Persistence

According to Ahsan, Adomako, and Mole (2021), entrepreneurial

persistence is described as action with purposeful energy, where the goal is

the success of an entrepreneurial venture or enterprise, they also concluded

that entrepreneurs with high entrepreneurial persistence tend to achieve

greater profits than those with low entrepreneurial persistence

Persistence can be seen as a prerequisite for tapping into the business

potential of a given business and thus, its chances of generating more profits.

Entrepreneurial persistence has two distinct components: First, the motivation

and decision to actively pursue the previously selected business opportunity;

and second, face adversity and overcome it with absolute will and

determination. (Holland and Shepherd, 2013)

Concern for High Quality Work

Alusen (2016) defines concern for high-quality work as "giving a lot of

time and attention to something because you think it is right and important to

do your best for your bussiness”. They also concluded that an entrepreneur

that does the job effectively to create a satisfied customer, make personal

sacrifices or go to unusual lengths to get a job done with perfection can make

their business financially successful and profitable for long periods of time.
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Efficiency Orientation

It has emerged as one of the most commonly recognized competencies

in the literature on entrepreneurship and one of the key topics in

entrepreneurship studies (Tajeddini, Martin, & Ali, 2020). In fact, Efficiency

Orientation is seen as an entrepreneurial tool that helps businesses

differentiate themselves from their rivals because it indicates how efficient an

entrepreneur is compared to his or her competitor. (Omar, 2016). Efficiency

Orientation influences how business owners act strategically in gaining a

competitive advantage against their competitors by generating more profit.

(Covin & Miller, 2014).

Systematic Planning

Alusen (2016), defines systematic planning as "planning by breaking

large tasks down into time-constrained sub-tasks. Revising plans in light of

feedback on performance or changing circumstances. Keeping financial

records and using them to make business decisions. He also concluded that

systematic planning is essential in order to increase the business's profitability.

Problem Solving

Problem-solving skills have been shown to be one of the key factors for

a successful individual entrepreneurial career (Choi, Sung, & Park, 2018).

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They also said that problem-solving skills are defined as sophisticated

knowledge that entrepreneurs use to drive business growth, profits, and

development.

According to Ugwoke, Okenjom, and Nnajiofor (2014), an entrepreneur

with strong problem-solving skills can handle business issues. The problem

could be with the company's management or its sources of funding. They have

the ability to act in ways that may lead to the discovery of solutions to the

problem at hand. There is no doubt that the person planning to start a

business requires a diverse set of skills in order for the business to be

profitable in a competitive industry.

Okoli & Okoli (2013) also asserts complex problem-solving skills can be

leveraged as an economic tool that entrepreneurs can use to address and

solve social problems. These skills are the practical principles that help

entrepreneurs to be autonomous, relevant, and successful in business.

Profitability

Profitability is the primary goal of all business ventures. Without

profitability, the business will not survive in the long run. So, measuring current

and past profitability and projecting future profitability is very important.

Profitability is measured with income and expenses. As income increases than

expense, the more profitable the business is. Income is money generated from

the activities of the business. (Ragheb, & Al-Ghussein, 2018).

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A business that is not profitable cannot survive. Conversely, a business

that is highly profitable has the ability to make their owners successful.

Increasing profitability is one of the most important tasks of business owners.

Owners constantly look for ways to change the business to improve

profitability (Zhang, Zhang, & Zhao, 2017).