International Journal of Trend in Scientific Research and Development (IJTSRD)

Volume 5 Issue 2, January-February 2021 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470

Entrepreneurial Competencies as a Tool for Improve the

Enterprise Growth and Entrepreneurial Activities: A Study
Rajendra Prasad G R1, Dr. Manjunath, K. R2
1Research
Scholar, 2Assistant Professor,
1,2Institute of Management Studies and Research, Kuvempu University, Shimoga, Karnataka, India

ABSTRACT How to cite this paper: Rajendra Prasad

Entrepreneurial competencies are important to entrepreneurship growth and G R | Dr. Manjunath, K. R "Entrepreneurial
enterprise development of the success. The purpose of this paper has to Competencies as a Tool for Improve the
undertake a conceptual review of research on entrepreneurial competencies Enterprise Growth and Entrepreneurial
in order to functional and operational areas: provide an included description Activities: A Study"
of contributions relating to entrepreneurial competencies. The article research Published in
work towards review of the evaluation of the concept of competencies through International Journal
particular reference to its use in the context of competencies for entrepreneur of Trend in Scientific
needs. Conceptual research draws together views on competence of an Research and
entrepreneur before exploring and summarizing research on the relationship Development (ijtsrd),
between entrepreneurial competencies and business performance and ISSN: 2456-6470, IJTSRD38250
growth. This report presents the state of the art on the topic of Volume-5 | Issue-2,
entrepreneurship competence identifying and comparing different theoretical February 2021, pp.396-401, URL:
and practical approaches from the academic and entrepreneurial world. www.ijtsrd.com/papers/ijtsrd38250.pdf
Finally, the different perspectives adopted by researchers to the measurement
of performance through entrepreneurial competencies are reviewed. Copyright © 2021 by author(s) and
International Journal of Trend in Scientific
KEYWORDS: Competencies, entrepreneur, entrepreneurship, EDI Research and Development Journal. This
(Entrepreneurship Development Institute of India) is an Open Access article distributed
under the terms of
the Creative
Commons Attribution
License (CC BY 4.0)
(http://creativecommons.org/licenses/by/4.0)

INTRODUCTION
The business operation is considered to be very complex fruitful results from the business. Economies depend upon
in a competitive business environment, which is their business enterprises. To run the business efficiently
constantly changing with fast technological competencies of entrepreneur plays an important role.
advancements. An entrepreneur is expected to interact Organizations are dependent on entrepreneurs who largely
with these environmental forces which require him to be perform multitasks hence they are a vital link to the
highly competent in different dimensions like intellectual, economy and their efficient functioning is the foremost
attitudinal, behavioural, technical, and managerial parameter to efficient output growing for the economy at
aspects. Entrepreneurs are therefore permanently large.
challenged to deploy a set of competencies to succeed in
their entrepreneurial endeavours. Entrepreneurial Vali Ilie (2014)3 in his research evaluates developing
competencies are defined as underlying characteristics entrepreneurial competencies in students through
possessed by a person, which result in new venture constructivist education. The purpose of this research is to
creation. These characteristics include generic and highlight the role of constructivist education and the means
specific knowledge, motives, traits, self-images, social through which it contributes to developing entrepreneurial
roles, and skills that may or may not be known to the competencies in future teachers-students. The study
person. That is, these characteristics may be even consider that the ways of merging methods, instruments and
unconscious attributes of an individual. Some of these specific entrepreneurial means can play a part in facilitating
competencies are innate while others are acquired in the the development of entrepreneurial competencies and they
process of learning and training and development1. present an interesting perspective to be approached. The
results of the research indicate that there are many obstacles
Review of earlier works but also solutions that come under the existence of joint
Hardeep Kaur and Dr. Anupama Bains (2013)2 in their vision that starts from the need for entrepreneurial
research explain the Concept of Entrepreneur Competency. education, even in non-business Faculties.
This research also concentrate the Business provides the
necessary financial support and chart a growth path. The Käthe Schneider (2017)4 in his study explain that the
conceptual research finds how entrepreneur responsible for Entrepreneurial Competencies of Women Entrepreneurs of
the successful performances of the business through skills, Micro and Small Enterprises. The objective of the study is
knowledge and ability required running and getting the therefore to empirically analyze the entrepreneurial

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 International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470
competencies of female entrepreneurs. This analysis finds Providing Value Added Product or Service towards Creating
that entrepreneurial competencies as a higher order latent an Entrepreneur Competencies Model.
construct have a major impact on entrepreneurial success.
Entrepreneurial competencies of women entrepreneurs in Objective of the Study
Germany and Ireland can be operational by a set of six first- The overall study objective is to formulate a broad planning
order factors; including functional task related managerial and development framework setting out guidelines and
skills, entrepreneurial characteristic adaptations. The standards for more effective and comprehensive of
practical implication of the study is that not only task related conceptual framework.
skills, but also distal personality related characteristic 1. To in-depth study of entrepreneurial competencies for
adaptations and identity should be developed in enterprise growth and entrepreneurial activities
entrepreneurial learning programs targeted at women 2. To explain the basic concepts of entrepreneurial
entrepreneurs who start small businesses. Future studies competencies
need to isolate the influence of context from the identified 3. To elucidate the different kinds and developments of
competencies. entrepreneurial competencies
4. To explain the Entrepreneurial Competencies Identified
Abdullahi Mahadalle and Dr. Burcin Kaplan (2017)5 in By the EDI (Entrepreneurship Development Institute of
their study explain the concept of Entrepreneurial India)
characteristics and competencies as determinants of
corporate performance. The present research aims at Meaning and Definition Entrepreneurial
assessing the effect of entrepreneurial competencies and Competencies:
entrepreneur’s demographic and personal characteristics on Entrepreneurial behavior requires certain knowledge,
business performance among initial stage entrepreneurs. skill or personality profile. Generally, it is called
Further, it also aims at spotting the main challenges entrepreneurial competence or traits.
encountered by the women entrepreneurs involved in Small
business in Somalia. The study adopted extensive relevant A competence may be defined underlying characteristics
literature reviews on the studied variables and drawing of a person which results in effective and/or superior
conclusions based on the conducted reviews. The reviewed performance in a job. A job competence is an underlying
studies showed that entrepreneurial characteristics and characteristic of a person in that it may be motive, traits,
entrepreneurial competencies are positively related to and skills, aspect of one’s self-image or a body of
overall business performance. Further, through the studies, knowledge which one uses8.
the study also supports the claim that Somali women
entrepreneurs make a significant contribution to the small- Bird (1995) Defined
scale businesses in Somalia but faced several challenges that “Entrepreneurial competencies can be defined as
must be catered to as urgency. underlying characteristics such as generic and specific
knowledge, motives, traits, self-images, social roles, and
UkuLillevali1 and MargeTaks (2017)6 in their research skills that result in venture birth, survival, and growth.”
explain the Competence Models as a Tool for Conceptualizing
the Systematic Process of Entrepreneurship Competence Man, Lau & Chan Defined
Development. The aim of this study was to understand how “Total ability the entrepreneur to perform this role
systematic entrepreneurship competence development successfully. Several studies have found positive
throughout the education levels is conceptualized indifferent relationship between existences of competencies and
EE competence models. In other words, what are the critical venture performance”9 .
aspects to consider while constructing systematic
competence models. The aim of the present study was to Thus, success of an entrepreneur is governed by
understand how different EE competence models describe entrepreneurial competencies. If entrepreneur has all
and conceptualize the systematic progress of developing these competencies, he can be expected to achieve his
entrepreneurship competence up the education ladder. In entrepreneurial goals. Elements of entrepreneurial
sum, we can conclude that the structure and focus of existing competencies such as Body of Knowledge, Set of Skills,
EE competence models vary significantly. However, the Cluster of Appropriate Motives/Traits
feature common to all five analyzed EE competence models
was the focus on developing competencies. Body of Knowledge: Innovation is possible only through
knowledge. The inventor or originator of the idea that led
Leithy W (2017)7 in their research explains the Small and to the knowledge or vision includes those who identify
medium-sized enterprises play an important role in new technological processes, new forms of plant life and
developing the economies of nations as literature reveals. new designs. Thus, inventions deal with new processes,
Through literature review and SME input, the researchers or new technical knowledge. In a simple way, knowledge
were able to identify several competencies that contribute to means collections of information and retention of facts
achieving Entrepreneurs Success. The statistical results that an individual stores in some parts of his brain.
show two most significant competency groups impacting the Creative process provides imaginative people; geminate
Entrepreneurial success: Human Relations Competencies ideas nurture them and develop them successfully. This
affecting three distinct success dimensions: Ability to attract type of idea has a value. However, it must be proven
outside capital, Growth in Revenues and Growth in Customer useful or be marketable and to achieve either status or
Base. While the second was the Business and Management achievement, must be developed. But innovation is the
Competencies affecting three distinct success parameters: development process which translates an idea into an
Ability to attract outside capital, Growth in Revenues and application. It requires persistence in analytically

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 International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470
working out the details of product design or service, to expected from an entrepreneur. An entrepreneur should
develop marketing, obtain finances and plan operations. be adaptable to situations, alert to social environment,
ambitious and achievement oriented, Assertive,
Set of Skills: Skill is the ability to demonstrate a system cooperative, Decisive, dependable, dominant (desire to
and sequence of behavior that are functionally related to influence others), energetic (high activity level);
attaining a performance or goal. An entrepreneur is persistent, self-confident, tolerant of stress and willing to
required to have certain skills and these skills also assume responsibility.
constitute his leadership qualities. These skills are as
follows. Thus, for achieving success in his entrepreneurial
Anticipatory Skills: foresight into a constantly behavior, entrepreneur is required to have
changing environment; entrepreneurial competencies and these are consist of a
Visioning Skills: the use of persuation and example set of knowledge, skills, motives and traits.
to induce a group to act in accordance with the
leader’s purposes or the shared purposes of a larger Developing Entrepreneurial Competencies
group; Following steps are involved in developing
Value Congruence Skills: the need to be in touch entrepreneurial competencies:
with employee’s economic, safety, psychological,
spiritual, sexual, aesthetic and physical needs in Recognizing Process: Entrepreneurial behaviour starts
order to engage people on the basis of shared with understanding and recognition of the fact that in
motives, values and goals; which area potential behavior is going to be noteworthy.
Empowerment Skills: the willingness to share Specific competencies are meant for innovative behavior
power and to do so effectively; and Self and that is why recognition process should give specific
understanding Skills introspective or self under skills competencies.
as well as framework within which leaders
understand both their own needs and goals and those Process of Self-Assessment: It deals with identifying the
of their employees. In practice, an entrepreneur who specific competencies among the potential candidates for
pursues the idea, planning its application, acquiring entrepreneurship. It is just like identifying a fact––does
resources and establishing its market through one possess a given competence and if so how frequently
persistence, planning, organizing and leadership one exhibit the same in one’s day-to-day operational
needs above skills. With the help of these skills, behaviour.
entrepreneur is expected to perform well in his
entrepreneurial behavior. Process of Practice: It covers the desired framework to
what extent a potential candidate for entrepreneurship
Cluster of Motives and Traits: Motives deal with lacks certain competencies. But being interested to
recurrent concern for a goal, state or condition appearing undertake entrepreneurial behaviour he would like to
in fantasy, which drives, directs and selects behavior of acquire these competencies and strengthen others.
the individual. Actually motive represents thought Entrepreneurial development programmes provide help
related to a particular goal, state. McClellend opined that in strengthening this process.
“need achievement” is social motive to excel that tends to
characterize successful entrepreneurs especially when Feed Back Process: It relates with appraisal or seeking
reinforced by cultural factors. According to Paul Wilken information about the newly acquired behaviour. It also
“entrepreneurship becomes the link between need deals with introspection process to what extent new
achievement and economic growth. Thus, need for behaviour or act of exhibiting a competence has been
achievement is guiding force behind entrepreneurial beneficial.
activities. It is the desire to do well and it motivates the
people to undertake innovative activities. Thus, there are different types of competencies required
for developing entrepreneurship. To become a successful
The trait may be defined as a dispositional or entrepreneur, it is must for his to have that competencies
characteristic way in which the person responds to an or leadership qualities like innovative, initiative, risk
equivalent set of stimuli. These responses represent assuming personality, sensitivity to environment, and
intelligence, charisma decisiveness, enthusiasm, strength, sense of work, commitment and decisiveness.
bravery, integrity and self-confidence. Thus, traits are an
individual’s personal characteristics. Traits are contents Entrepreneurial Competencies Identified By the EDI
of leadership qualities. So an effective leader is one who Entrepreneurship Development Institute of India (EDI)
possesses intelligence, alertness to the needs of others, conducted a study under the guidance of David C.
understanding of the task, good communication skills, McClelland, a reputed behavioural scientist, in three
initiative and persistence in dealing with the problems. It countries, namely, India Malawi and Equador. It was
is important to note that personal elements that govern found out that possession of certain competencies or
the leadership ability are intelligence, self-confidence, the abilities results in superior performance. An
drive to accept responsibility, good communication skills entrepreneur may possess certain competencies and at
and education. the same time it is possible to develop these through
training, experience and guidance. Various competencies
In this way, entrepreneur is required to have certain required for superior performance by the entrepreneurs
traits. These traits are necessary for leadership qualities (identified during the study) are:

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 International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470
Initiative Systematic Planning
Acting out of choice rather than compulsion, taking the lead An entrepreneur develops and uses logical, step-by-step
rather than waiting for others to start. The entrepreneur plans to reach goals. They plan by breaking a large task into
should be able to take actions that go beyond his job subtask and develop plans, then anticipate obstacles and
requirements and to act faster. He is always ahead of others evaluate alternatives. They take a logical and systematic
and able to become a leader in the field of business. He Does approach to activities.
things before being asked or compelled by the situation and
acts to extend the business into new areas, products or Problem Solving
services. Entrepreneurs identify new and potentially unique ideas to
achieve his goals. They generate new ideas or innovative
Sees and Acts on Opportunities solutions to solve problems and they take alternative
A mindset where trained to look for business opportunities strategies to solve the problems.
from everyday experiences. An entrepreneur always looks
for and takes action on opportunities. He Sees and acts on Self-Confidence
new business opportunities and Seizes unusual Entrepreneur with this competency will have a strong belief
opportunities to obtain financing, equipment, land, work in self and own abilities. They express confidence in their
space or assistance. Recall ‘oranges’ example. own ability to complete a task or meet a challenge. They stick
to their own judgment while taking decision.
Persistence
An entrepreneur is able to make repeated efforts or to take Assertiveness
different actions to overcome an obstacle that get in the way An entrepreneur confronts problems and issues with others
of reaching goals. An entrepreneur takes repeated or directly. Entrepreneur with this competency vindicate the
different actions to overcome an obstacle and Takes action in claim to asset their own rights on others. They demand
the face of a significant obstacle. recognition and disciplines those failing to perform as
expected. They asset own competency, reliability or other
Information Seeking personal or company’s qualities are required. They also
An entrepreneur is able to take action on how to seek assert strong confidence in own company’s or organization’s
information to help achieve business objectives or clarify products or service.
business problems. They do personal research on how to
provide a product or service. They seek information or ask Persuasion
questions to clarify what is wanted or needed. They Entrepreneurs with this competency successfully pursue
personally undertake research and use contacts or others to perform the activities effectively and efficiently. An
information networks to obtain useful information. entrepreneur can persuade or influence others for
mobilizing resources, obtaining inputs, organizing
Concern for High Quality of Work productions and selling his products or services.
An entrepreneur acts to do things that meet certain
standards of excellence that gives him greater satisfaction. Use of Influence Strategies
An entrepreneur states a desire to produce or sell a top or An entrepreneur is able to make use of influential people to
better quality product or service. They compare own work reach his business goals. Entrepreneurs with this
or own company’s work favourably to that of others. competency influence the environment
(Individuals/Institution) for mobilizing resources organizing
Commitment to Work Contract production and selling goods and services to develop
An entrepreneur places the highest priority on getting a job business contacts.
completed. They make a personal sacrifice or take
extraordinary effort to complete a job. They accept full Monitoring
responsibility for problems in completing a job for others Entrepreneurs with this competency normally monitor or
and express concern for satisfying the customer. surprise all the activities of the concern to ensure that the
work is completed by maintaining good quality.
Efficiency Orientation
A successful entrepreneur always finds ways to do things Concern for Employee Welfare
faster or with fewer resources or at a lower cost. They look Entrepreneurs with this competency take action to improve
for or find ways to do things faster or at less cost. An the welfare of employees and take positive action in
entrepreneur uses information or business tools to improve response of employee’s personal concerns10.
efficiency. He expresses concern about costs vs. benefits of
some improvement, change, or course of action.

Kinds of Entrepreneurial Competencies

The types of the current study are based on the components as identified the following components for analyzing
entrepreneurial competencies are drawn below as:

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 International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470

Entrepreneurial

Personal Venture Initiation

Entrepreneurial and Success

Enterprise Launching Enterprise

Competencies Management

Personal Entrepreneurial Competencies: The present study have theoretical contributes to the limited
Personal entrepreneurial competencies are required for any previous critical research on entrepreneurial competencies
individual who start their business for individual survival and offers a theoretical model of entrepreneurial
and economic growth of the particular sector. If individual competencies, explaining entrepreneurial performance of
start to invest his initial investment towards any kind of enterprises in the innovation-driven. Because the current
business he clearly set certain basic skills, knowledge, understanding of entrepreneurial competencies of
abilities and capabilities for his enterprise. Competitiveness entrepreneurs as predictors of entrepreneurial success has
required for showing individuality in the field of enterprises been developing, the objective of the study has been to
activities. Competencies contribute to the development of an develop a theoretical model of entrepreneurial competencies
individual in the organization to take up bigger roles. for enterprise growth and entrepreneurial activities and
explain the basic concepts of entrepreneurial competencies
Venture Initiation and Success Competencies such as specific knowledge, motives, traits, self-images,
An entrepreneur must possess the competencies that must social roles, and skills that result in venture birth,
be required for launching the enterprise and for its survival survival and growth. Apart from that the study covers
and growth. These set of classification of entrepreneurial different kinds and developments of entrepreneurial
Competencies are further divided into two categories of competencies and the Entrepreneurial Competencies
competencies Identified by the EDI (Entrepreneurship Development
Institute of India).
1. Enterprise Launching Competencies
Competency to understand the nature of business, Drawing on the developed theoretical model, both task
Competency to comply with Government regulations, related skills and key factors have to adaptations and
Competency to deal with the business, Competency to identity strongly expect entrepreneurial competencies. he
finance the business, Competency to locate the business, can be expected to achieve his entrepreneurial goals.
Competency to plan the marketing strategy, Competency to Elements of entrepreneurial competencies such as Body
choose the type of ownership, Competency to obtain of Knowledge, Set of Skills, and Cluster of Appropriate
technical assistance, Competency to develop a business plan, Motives/Traits are covered in the present study. The
Competency to determine the potential as an entrepreneur. entrepreneurial competencies predict the entrepreneurial
performance consisting of the dimensions of economic
2. Enterprise Management Competencies performance, individual performance and societal
Competency to manage customer credit and collection, contribution enhanced by the dimensions of quality of
Competency to manage the finances, Competency to manage performance.
the business records, Competency to manage sales efforts,
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