The pivotal position occupied by entrepreneurship as a sustainable tool for rapid economic growth and development of a country cannot be over emphasized. This is apparent in several obtainable literatures written by scholars on the subject matter but a closer examination of these literatures show tilted emphasis and concentrations on some shared areas relating to entrepreneurship.
Increasing competitions, rapid and continued changes in internal and external ecosystem of business activities, and the meaningful influence of Small and Medium extent Enterprises (SMEs) on the economy generally have resulted in a growing interest in studying the role of factors stimulating successful entrepreneurship, business success and national development.
Though, entrepreneurship, have played and can play more of these positive roles, is not an easy vocation as it does not always guarantee a hundred per cent triumph. There are several basic areas of knowledge and factors that must be acquired and put in place to permit entrepreneurs unprotected to a measure of business success and consequently contributing to national development.
Several researches have been conducted in areas of entrepreneurship competency, entrepreneurship success and national development.
Most literatures relating to entrepreneurship and entrepreneurship success tend to unquestionably argue that most entrepreneurial fiascos are essentially due to inadequate financial resources (e.g. Adeyemo and Onikoyi, 2012). Such research outcomes have no doubt influenced government policy direction in many developed and developing countries of the world by the creation of financial agencies and provision of financial resources to business units for the only purpose of boosting and sustaining entrepreneurial development for rapid national development.
The above, policy strategy unfortunately has led to the continuous negligence on the part of the government, scholars and business operators in these countries to considering other vital factors like entrepreneurial competency which equally contributes to successful entrepreneurship, business success and national development.
The current literatures on the subject do not provide sufficient explanations to the role general and/or specific competences play in successful entrepreneurship, business success and national development. This has consequently, made the relationship between entrepreneurial competence and entrepreneurship success to be important topic within organizational literatures. The above fact is apparent in several obtainable studies done by scholars on the subject matter (e.g Crook, Todd, Combs, Woehr, and Ketchen, 2011; Mitchelmore and Rowley, 2010; Inyang and Enuoh, 2009; Laguna, Wiechetek, and Talik, 2013 e.t.c).
Many of these studies identified entrepreneurship competences like communication competence, financial competence, marketing competence, business ethics competence, social responsibility competence, decision-making competence and leadership competence as catalysts to entrepreneurship success and national development. We shall be duelling on our discussion more on these entrepreneurial competences to see how they individually contribute to successful entrepreneurship, business success and national development.
As said earlier at the beginning, entrepreneurship and entrepreneurship success play strategic roles in economic growth, economic transformation and development of the society. These roles are noticeable in the numbers of jobs produced, the level of wealth generated and the rate of native entrepreneurship promoted in several countries around the world.
There is no doubt that government of the world have put great efforts in promoting entrepreneurship development, business success and economic development by provision of financial resources directly or otherwise by various agencies and under different terms and conditions, this fact prompt one to ask a question of high concern.
Why are there nevertheless high rate of business failure around the world? Without much thinking, the failures are due mainly to entrepreneurial incompetency of those concerned with making the daily business decisions of these businesses. Many business failures can be said to be and are largely credited to without of entrepreneurial competence.
Most of the businesses failed unknowingly already before there are started because of without of one of the required competence; project evaluation and management. This does not consequently; make it surprising while entrepreneurship competence has often been identified as the missing link for successful entrepreneurship, business failure and consequently crawling national development and in some instances stalled economy. What then is entrepreneurship competence?
Before we proceed to defining and explaining entrepreneurship competence and understand the contextual meaning in which it is employed in this writing with simplicity, it will be very imperative to first and foremost comprehend what entrepreneurship is.
Entrepreneurship may be defined as the time of action by which something new and valuable is produced by the dedication and effort of someone who takes on financial, psychological, and social risks and seeks personal satisfaction and monetary rewards (Hisrich & Peters 1986).
European Commission, (2006) defined Entrepreneurship as a dynamic and social course of action where individuals, alone or in collaboration, clarify opportunities for innovation and act upon these by transforming ideas into functional and targeted activities, whether in a social, cultural or economic context.
basic assessment of the above two definitions summarized the concept of entrepreneurship by stressing creation processes and performance of targeted activities. Entrepreneurship as defined above is not necessarily limited to the roles and characters of entrepreneurship involving creativity, innovation and risk taking, and most importantly, the ability to plan, manage projects and to turn ideas into action in order to unprotected to set objectives for successful entrepreneurship. But, it requires tact, art and competency to unprotected to winning edge success.
Entrepreneurship success is a multidimensional occurrence. It includes multiple criteria of financial characters like profit maximization, revenue maximization, dividend maximization as in the case of shareholders etc., and non-financial characters for example larger proportion of market, customer satisfaction, perpetual enterprise existence etc. To unprotected to success in any of the following sections, one must be competent in his/her chosen area of enterprise.
Entrepreneur competence can consequently be defined as the cluster of related knowledge, attitudes, and skills which an entrepreneur must acquire or possess to unprotected to an noticeable performance and optimize the business objective(s) amidst several constraints. Every job/role has a skill and competency requirement. Every career like entrepreneurship draws on the competence of an individual. For every entrepreneurial undertaking one needs certain competencies. Entrepreneurship competence is simply the skill which an individual needs to do an allotted entrepreneurial job successfully.
Entrepreneurship competence consists of a cluster of related knowledge, attitudes, and skills, which an individual acquires and uses together, to produce noticeable performance in any given area of entrepreneurial responsibility. Some of these competences may be general and some disinctive to the chosen areas of enterprise. We may describe competences to average abilities and skills, for a teacher or a performing artist, for example, it is the skill to communicate that plays a decisive role in their effectiveness besides, of course, their knowledge. For a craftsman or an artist, it is the creativity and skill in the chosen craft.
In like manner, entrepreneurial competences are basic success factors required for successful entrepreneurship, business success and of course national development. The subject consequently, deserves solemn attention in entrepreneurial discourse and not to be neglected. There is no replace entrepreneurship competence for successful entrepreneurship, not already abundant financial resources can. There is no doubt as explained, entrepreneurial competence play important role in any successful entrepreneurial activities.
The following are some of the necessary entrepreneurial competences required for successful entrepreneurship and rapid national development. We shall be discussing below 8 of the basic basic entrepreneurial competence for successful business.
1. Time Management competence: Time is an economic good; it is an economic good worthy of effective and efficient management because of it scarce character (Dan-Abu, 2015). Time is rare, unlike any other economic resources (input) such that it has no wing but can “fly”. Time is irreplaceable and irreversible. Time lost is lost forever and can never be recovered, and by that I it includes, time lost doing insignificant things. This is why few things are more important to an entrepreneur and for successful entrepreneurship than learning how to save and use time wisely. One major causes of entrepreneurship failure in relation to time management is doing too many things at the same time in an inefficient manner.
To unprotected to more and be successful in the day to day running of an enterprise, the entrepreneur must be thoroughly equipped with time management skill. Investing and practicing effective and efficient time management skill is a profitable investment for every entrepreneur, since every efficient business act is a success in itself. It consequently method that, if every single act of entrepreneurial activity is undertaken with consistent efficient one, the enterprise as a whole must be a success.
Time management include among others practices, commitment to work contract and taking personal pains to complete a task on schedule, this will promote confidence and loyalty on your business/organization and will consequently led to winning of more contracts from clients again and again; prioritizing of task based on urgency and importance in relation to a project activities and delegating of task to subordinates.
Some shared time consuming activities include slow decision making, inability to delegate, unnecessary interruptions, failed appointments, delays while traveling, poorly conducted meetings, procrastination, etc.
2. Communication competence: Communication is a two-way course of action characterized by sending and receiving of messages by a channel between sender and receiver. This may be verbal or non-verbal for example, telephone call and procurement proposal respectively. Good communication skill is an indispensable management tool for a successful entrepreneurship. It is by communication that procurements are made, business products/sets are sold, business objectives are discussed, employees are recruited etc.
Communication competence is very important to the survival and success of every organization, this is in spite of of whether the organization is a profit or non-profit making, private or public enterprise, involved in provision of sets or sales of products, online or offline business etc. Communication competence is so vital to successful entrepreneurship that it goes beyond inter-personal communication; of course this too is indispensable to the success of the entrepreneur’s business.
A winning communication competence in an enterprise will help in disseminating circulars, minutes, letters and memos effectively reaching every intending individual, team or unit in an organization. It also facilitates efficiency by the saving of cost involved in sending and receiving the messages on the part of both the organization and the employees. Communication competence in enterprising organizations will ease large turn out and compliance when meetings are called or directives are given to be followed respectively.
Communication competence in like manner can speed up the time taken to make merchandize procurement in period of high need; this can help the concerned firm increase profit during the period of shortages and high need.
Developing and employing good communication skill in an organization will definitely rule to two fold success; the firm will be able to assistance from internal interactions among persons, departments and units, and externally assistance from interactions between it and the business transacting partners (outside world). We can consequently say in summary that, there is no business without communication.
3. Human Resources Management Competence: The relevance of human resources management competence to successful entrepreneurship, business success and national development cannot be over stressed. Though materials and capital are of equivalent importance to the entrepreneur, they are inanimate and unemotional; they need no understanding of human requirements and inspirations for their effective utilization unlike human resources which need good and competent human resources management skill by the entrepreneur to successfully utilize it to optimum level in productive activities.
Human resources of some enterprise are the most difficult to acquire, the most expensive to continue and the hardest to retain. Without the acquisition and practicing of effective and efficient human resource management skills, the capital resources earlier mentioned will not be effectively used. Generally, small and medium extent enterprises often managed by an entrepreneur do not have the luxury of human resource department that can interview, hire and estimate employees.
Most of these decisions taking regarding the above are the responsibility of the entrepreneur and perhaps one or two other meaningful employees. This is good why human resources management competence is important for successful entrepreneurship and national development. As the firm grows, there will be need to hire new employees; entrepreneur must follow important procedures for interviewing, hiring, evaluating and preparing job description for new employees. Instituting an effective organizational culture is best implemented when an entrepreneur is competent in human resources management.
4. Marketing Management Competence: The success of every enterprise involves selling of products/sets; this is largely enabled by good marketing management, it is consequently imperative for an entrepreneur to have good marketing management skills.
Ebitu (2005:196) concord, that marketing is crucial to the survival and growth of any organization. It is by marketing that revenues used for bills settlement, assets acquisition, pursuing of business diversification and expansion objectives, settlement of dividend and tax limitations and social responsibility projects are generated. The entrepreneur in developing good marketing strategies and marketing management competence must be conversant with and use the four marketing mix of place, promotion, price and product.
5. Adherence to Business Ethics Competence: Every business has its ethics. Ethics deals with moral ability and obligations. It can be defined as a system of rules and principles that define right and wrong, good and bad conduct and the ordering of values in undertaking business activities in society. Business ethics is sometimes called management ethics, and it is the application of ethical principles to business relationships and activities.
Business ethics is becoming a subject of intense concern for society, which is now demanding that organizations should function responsibly and uphold very high ethical standards to enhance the quality of life of the people. Entrepreneurs, in light of the above, need to be competent in dealing with different public policies, trade union’s established standards and norms and customers’ concerns for high quality work for successful entrepreneurship.
6. Financial Management Competence: Every business enterprise requires capital with which to start and continue with its operations. Capital here method two things; money (finance) needed to start and function the business and assets representing the resources provided by owners (equity) and creditors of the business (limitations).
Mbat (2001:3) defines financial management as the planning, organizing, directing and controlling of the firm’s financial resources. Finance is the blood at the centre of any successful business enterprise, one of the features shared to successful entrepreneurs is their ability to source for funds for their enterprise. The funds mobilized internally or externally have to be properly managed to ensure that at any point in time, there is adequate funds to cater for the day to day running of the enterprise.
Most entrepreneurial failures are due to the inability of the entrepreneurs to effectively spread and manage funds. For example, an entrepreneur needs to acquire knowledge on financial management issues like anticipation of financial needs for the enterprise, fund raising supplies, cost of raising fund from external supplies, acquisition of funds, allocation of funds in order to provide optimum consequence by identification and maintenance of correct proportion of the firm’s finances in areas of savings, insurance and investments policy of the enterprise.
The important of financial management competence to achieving entrepreneurship and business success cannot be over stressed. We have seen many at times when financially buoyant “start-ups” crumble down to pieces after successful take off because of financial management incompetence of the management, caused by tied up funds as they watch helplessly as the business dive into ocean of failure due to without of save funds to successfully execute contracts or perform business operation.
Leadership Competence: leadership can be defined as the ability to influence and motivate other person or group of persons towards achieving a shared a set objective. Leadership competence is also another important single factor calculating business success or failure in our competitive, turbulent, fast moving, free global market economy.
According to Ilesanmi, (2000: 187) successful entrepreneurs are successful leaders; they have strength and motivate the entrepreneurial venture. The ability to produce the necessary leadership is the meaningful determinant of achievement in all-human activities, the quality of leadership is consequently a decisive strength or weakness of any successful entrepreneurial endeavour.
Successful entrepreneurship requires creative, rare leadership qualities and personal styles. It include seeking opportunities, initiating projects, gathering the physical, financial and human resources needed to carry out projects, setting goals for self and others, directing and guiding others to accomplish goals. Effective leadership is consequently a powerful tool required for successful entrepreneurship, business success and national development. Good leadership competence helps an entrepreneur to turn his/her business vision into reality.
7. Social Responsibility Competence: The formation of every business enterprise is backed up by the profit motive. It is the profit that drives entrepreneurs to starting businesses, motivate shareholders into buying shares and private capital owners into investing their capital in a company. The profit motive though leads to the production of goods and sets; the entrepreneur’s business venture also has the responsibility to embark on certain projects within and outside its operating ecosystem as part of its social obligations.
Businesses should not only be concerned about the quality of goods and sets they produce to generate profit but must also pursue policies that sell their enterprises by contributing to the quality of life in their operational ecosystem. The business operators have responsibility to protect and enhance society. Their actions during production and marketing should not in any way endanger the community or society. Entrepreneur can earn more profit by displaying high degree of corporate responsiveness, which is the ability of an organization to relate its operations and policies to the ecosystem in ways that are mutually advantageous to the organization and the society.
The entrepreneur for example needs to make contribution to community development, product safety, employment generation, ethical business practices, and contribution towards educational activities in the community of operation. An enterprise for example can award scholarships to students, create opportunity for apprenticeship training and so on. Undertaking some of these social responsibilities may endear the entrepreneur’s enterprise to its great number community; enhance his image and social standing, and consequently contributing considerably to his business success.
8. Decision making Competence: Decision making is very important to the success of an entrepreneur, this skill is at the chief of every successful entrepreneurial activities. Decision making is the time of action of selecting a line of action from obtainable alternatives. This selection course of action may be very difficult especially when the obtainable alternatives are numerous or the decisions to be made or chosen from are risky ones.
Many possible entrepreneurs have difficulties in bringing their ideas to the market and creating a new business because making a decision is one thing and making the right decision in a given circumstance is another. The actual making of effective entrepreneurial decisions has resulted in several new businesses being started throughout the world by those having this decision making skill necessary for successful entrepreneurship.
An entrepreneur makes decision on a daily basis and consequently has to acquire adequate knowledge and skills in decision making to permit him/her make the right decisions.
Most of the entrepreneurial competences have been studied in isolation and with little effort to recognizing their mutual relationships to entrepreneurship success and business success. In a study aimed at explaining entrepreneurial competences in order to rank them according to the level of their importance to successful entrepreneurship by Edgar, Dirk and Danny, (2005) shows that, entrepreneurs on one hand considered decision making the most important competence while scholars in their different writings are in sustain of identifying business opportunities competence as the most important when embarking on an entrepreneurial venture.
In another study aimed at explaining how general and specific managerial competencies relate to the business success of small and medium extent enterprises (SMEs) by Laguna, Wiechetek, and Talik, (2013) proved that general and specific managerial competency is meaningful predictor of success in running a business. They further stated that specific managerial competency demonstrated to be a mediator between general competence and Small and Medium extent Enterprises (SMEs) success.
In a similar study conducted by Rosária de Fatima Segger Macri Russo and Roberto Sbragia, (2010) who opined that the operational responsibilities of a project manager (planning and controlling) are in stark contrast to the characteristics of an entrepreneur. In light of the above contradictory viewpoint, their research which was directed at assessing whether managers showing entrepreneurial characteristics are associated with more successful projects or not found within their study sample an empirical evidence supported their hypothesis that the possibility of a given project having a successful outcome increases with the enterprising inclination of its manager.
After critically examining the necessary entrepreneurial competences required for successful entrepreneurship, business success and rapid national development. It will be important to quickly add here that no single or sets of entrepreneurship competence are more important to the other. It is only by the combination of the competences that an entrepreneur can unprotected to maximum business success.
A. A. Adeyemo and M. P. Onikoyi (2012). Prospects and Challenges of Large extent
Commercial Poultry Production. Agricultural Journal, Vol. 7 (6):388-393. Medwell Journal.
Crook, T. R., Todd, S. Y., Combs, J. G., Woehr, D. J. and Ketchen, D. J. (2011). Does human capital matter? A meta-examination of the relationship between human capital and fi rm performance. Journal of Applied Psychology, 96:443-456.
Ebitu, E.T. (2005). Marketing function. In S. N. Udo (ed). Entrepreneurial development: principles and practice. (pp.180 – 198). Calabar: Wusen Press.
Edgar Izquierdo, Dirk Deschoolmesster, and Danny Salazar, (2005). Este Articulo Fue Presentado en el Int Ent. Surrey-Reino Unido
Cole, G.A. (1990). Management: theory and practice. London: The Gnersay.
European Commission, (2006). Entrepreneurship Education in Europe: Fostering Entrepreneurial
Hisrich, R.D. & Peters, M.P. (1986). Establishing a new business venture unit within a firm, Journal of Business Venturing, vol. 1, no. 3, 307-322.
Laguna, M., Wiechetek, M., Talik, W., (2012). The Competencies of Managers and their Business Success. Central European Business Review Vol. 1, No. 3, December 2012. Pg. 7-13
Mitchelmore, S. and Rowley, J. (2010). Entrepreneurial competencies: A literature review and development agenda. International Journal of Entrepreneurial Behaviour & Research, 16: 92-111.
Rosária de Fatima Segger Macri Russo and Roberto Sbragia, (2010). The enterprising manager and project performance. Journal of Project, Program & Portfolio Management. Vol 1 No. 1 (2010) 28-40
Ilesanmi, O.A. (2000). Entrepreneurial development. (1st Ed). Ilorin, Nigeria: Kola Success Publications.
OECD/DAC (2002). Evaluation Network. Glossry of meaningful terms in evaluation and results based management.
Dan-Abu Michael N., (2015). Time as an Economic Good. Rational Minds Magazine