Entrepreneurial Competency

2.Venture Initiation and success Competencies

In addition to personal competencies Entrepreneur must also possess the competencies required to launch the enterprise and for its growth and survival.

It is further divided into two categories of competencies:

i. Enterprise launching competencies

ii. Enterprise management competencies

 i.  Enterprise launching competencies

  • Competency to understand the nature of business

-To analyse the personal advantage of owning a small business.

-To analyse the personal risks of owning a small business.

-To analyse how to maximize the opportunities and minimize the risks of owning a business.

  • Competency to determine the potential as an entrepreneur

-To consider the personal qualification and abilities needed to manage own business.

-To evaluate the own potentials for decision-making,problem solving and creativity.

-To determine own potential for management,planning,operations,personnel and public relations.

  • Competency to develop a business plan

-To identify how a business plan helps the entrepreneur.

-To recognize how a business plan should be organized.

-To identify and use the mechanisms for developing a business plan.

  • Competency to obtain technical assistance

-To prepare for using technical assistance.

-To select professional consultants.

-To work effectively with consultants.

  • Competency to a choose the type of ownership

-To analyze the type of ownership of business.

-To follow the steps necessary to file for ownership of the business.

-To define politics and procedures for a successful multi-owner.

  • Competency to plan the market strategy

-To use goods classification and life cycle analysis as planning tools for marketing.

-To develop and modify marketing mixes for a business.

-To use decision making tools and aid in evaluating marketing activities.

-To evaluate operations to improve decision making about marketing.

  • Competency to locate the business

-To analyze customer transportation,access,parking and so forth. i.e. relative to alternative site locations.

-To complete a location feasibility study for the business.

-To determine the cost of renovating or improving a site for the business.

-To prepare an occupancy contrast for the business.

  • Competency to finance the business

-To describe the source of information available to help in estimating the financing necessary to start a new business.

-To determine the finance necessary to start a new business.

-To prepare a project profit and loss statement and a projected cash flow statement for the new business.

-To prepare a loan application package.

  • Competency to deal with the business

-To determine the need for legal assistance.

-To select the provisions that is desired in the lease.

-To prepare sales contract(such a s credit sales or long term sales) that may be utilized in the contracts

-To evaluate contracts.

-To determine the need for protection of ideas and intentions.

  • Competency to comply with government regulations

-To appraise the effects of various regulations on the business operations.

-To acquire the information necessary to comply with the various rules and regulations affecting the business.

-To develop policies for the business to comply with the Government rules and regulations.

ii. Enterprise Management Competencies

  • Competency to manage the business

-To plan goals and objectives for the business.

-To develop a diagram showing the organizational structure for the business.

-To establish control practices and procedures for the business

  • Competency to manage human resources

-To plan goals and objectives for the business.

-To develop a diagram showing the organizational structure for the business.

-To establish control practices and procedures for the business.

  • Competency to manage human resources

-To write a job description for a position in the business.

-To develop a training programme online for employees.

-To develop a list of personnel for employees in the business.

-To develop an outline for an employee evaluation system.

-To plan a corrective interview with an employee concerning a selected problem.

  • Competency to promote the business

-To create a long-term promotional plan.

-To describe the techniques used to prepare advertising and promotion

-To analyse competitive promotional activities.

-To evaluate promotional effectiveness.

-To plan a community relations programme.

  • Competency to manage sales efforts.

-To develop a sales plan for the business.

-To develop policies and procedures for serving the customers.

-To develop a plan for training and motivating sales people.

  • Competency to keep business records

-To determine who will keep the books for the business and how they will be maintained.

-To describe double-entry bookkeeping.

-Select the types of journals and ledges that you will use in the business.

-To identify the types of records that will be used in the business to record sales,cash receipts,cash disbursements,accounts receivable,accounts payable,payroll,petty cash,inventory,budgets and other items.

-To evaluate the business records.

-To identify how a micro-computer may be used to keep he business records.

  • Competency to manage the finances

-To explain the importance of cash flow management.

-To identify financial control procedures.

-To describe how to find cash flow patterns.

-To analyse trouble spots in financial management.

-To describe how to prepare an owner’s equity financial statement.

-To analyse financial management ratios applicable to a small business.

-To identify the components of break even point problem.

-To review microcomputer application for financial management.

  • Competency to manage customer credit and collection

-To analyse the legal rights and resource of credit guarantors.

-To develop a series of credit collection reminders and the follow up activities.

-To develop various credit and collection policies.

-To prepare a credit promotion plan.

-To discuss information resources and systems that apply to credit and collection procedures.

  • Competency to protect the business

-To prepare policies for the firm that will help minimize losses due to employee theft, vendor theft, bad cheques, shoplifting, robbery, injury or product liability.

-To determine the kinds,amounts and costs of insurance needed by the firm.

For more notes on Entrepreneurship Development click on the link below:

Entrepreneurship Development Notes/ Study Material

 

 

Entrepreneurial Competency

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