THE 10 PERSONAL

ENTREPRENEURIAL
COMPETENCIES
ARBA MINCH UNIVERSITY
KULFO CAMPUS
JUNE 30,2014
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Session Objective
At the end of the session, students should
be able to:
Identify the key competencies and
characteristics of successful entrepreneurs
10 PECs of Entrepreneurship 3
Definition of Entrepreneurial
Competencies
The term entrepreneurial competencies
refers to the key characteristics that should
be possessed by successful entrepreneurs in
order to perform entrepreneurial functions
effectively.
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Research Background
A scientific research conducted by a research team
(McBer & Co.) headed by Chief Psychologist, David C.
McLelland from Harvard University.
A cross cultural study in three countries, India (Asia),
Malawi (Africa) and Ecuador (Latin America)
Respondents were successful entrepreneurs
The outcome was a set of 13 competencies which are
common to all successful entrepreneurs
I. Achievement Cluster
1. Opportunity Seeking and Initiative
Entrepreneurs seek opportunities and take the initiative to transform
them into business situations.
Does things before being asked or forced to by events
Takes action to extend the business into new areas, products or
services
Seizes unusual opportunities to start a new business, obtain
financing, equipment, land, work space or assistance
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2. Persistence
When most people tend to abandon an activity,
successful entrepreneurs stick with it.
Takes action in the face of significant obstacles and
challenges
Takes persistent actions, or switches to an alternative
strategy, to meet a challenge or to overcome an
obstacle
Takes personal responsibility for the performance
necessary to achieve goals and objectives
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3. Fulfilling Commitments
Entrepreneurs keep their promises, no matter how
great the personal sacrifice.
Makes a personal sacrifice and extraordinary effort
to complete a job
Pitches in with employees, or takes their place if
needed, to get a job done
Strives to keep customers satisfied and places
long-term good will above short-term gain
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4. Demand for Efficiency and Quality
Entrepreneurs try to do something better, faster, or
cheaper.
Finds ways to do things better, faster and cheaper
Acts to do things that meet or exceed standards of
excellence
Develops and uses procedures to ensure that work is
completed on time and that work meets agreed upon
standards of quality
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5. Taking Calculated Risks
Deliberately calculates risks and
evaluates alternatives
Takes action to reduce risks and/or
control outcomes
Places oneself in situations involving a
challenge or moderate risk
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II. PLANNING CLUSTER
1. Goal Setting
This is the most important competency because none of
the rest will function without it.
Sets goals and objectives which are personally
meaningful and challenging
Articulates clear and specific long-term goals
Sets measurable short-term objectives
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2. Information Seeking
Entrepreneurs gather information about their clients,
suppliers, technology, and opportunities.
Personally seeks information from customers,
suppliers and competitors
Does personal research on how to provide a product
or service
Consults experts for business or technical advice
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3. Systematic Planning and Monitoring
Systematic behavior means acting in a logical way.
Planning is deciding what to do. Monitoring means
checking.
Plans by breaking large tasks down into sub-
tasks with clear time-frames
Revises plans in light of feedback on
performance or changing circumstances
Keeps financial records and uses them to make
decisions
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III. Power Cluster
1. Persuasion and Networking
Entrepreneurs influence other people to follow them or do
something for them.
Uses deliberate strategies to influence and persuade others
Uses key people as agents to achieve own objectives
Takes action to develop and maintain a network of business
contacts
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2. Independence and Self-confidence
Seeks autonomy from the rules and/or control of
others
Attributes the causes of successes and failures to
oneself and to one's own conduct
Expresses confidence in own ability to complete a
difficult task or to face a challenge
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Questions?
Thank you!