Entrepreneurship

The Role of Entrepreneurship Competence in Business Success and National Development

 

Entrepreneurship plays a crucial role in the sustainable economic growth and development of a country. However, despite the numerous literatures available on the subject, most tend to focus on only a few areas of entrepreneurship. With the constant changes in the business environment, intense competition, and the significant impact of Small and Medium Scale Enterprises (SMEs) on the economy, there is a growing interest in this article discussed The Role of Entrepreneurship Competence in Business Success and National Development.

Although entrepreneurship has the potential to play a positive role, it is not an easy vocation and does not always guarantee success. To achieve business success and contribute to national development, entrepreneurs must acquire critical knowledge and put in place several factors.

Previous research tends to argue that most entrepreneurial failures are due to inadequate financial resources. This has influenced government policy direction in many countries through the creation of financial agencies and provision of financial resources to business units. However, the continuous negligence of other vital factors, such as entrepreneurial competency, has hindered successful entrepreneurship, business success, and national development.

The current literature on the subject does not provide sufficient explanations for the role that general and/or specific competencies play in successful entrepreneurship, business success, and national development. This has made the relationship between entrepreneurial competence and entrepreneurship success an essential topic in organizational literature. Numerous studies by scholars on the subject matter emphasize the importance of entrepreneurial competence (e.g., Crook, Todd, Combs, Woehr, and Ketchen, 2011; Mitchelmore and Rowley, 2010; Inyang and Enuoh, 2009; Laguna, Wiechetek, and Talik, 2013, etc.).

Many studies have shown that competencies such as communication, finance, marketing, business ethics, social responsibility, decision-making, and leadership are crucial for successful entrepreneurship and national development. In this discussion, we will explore how each of these competencies contributes to entrepreneurship success, business success, and national development.

Entrepreneurship and entrepreneurship success play important roles in economic growth, transformation, and development of society. Governments around the world have made great efforts to promote entrepreneurship development, business success, and economic growth by providing financial resources through various agencies and under different terms and conditions. However, there are still high rates of business failure around the world, which can be mainly attributed to a lack of entrepreneurial competency among those responsible for making daily business decisions.

Many businesses fail unknowingly before they even start due to a lack of one of the required competencies, such as project evaluation and management. This highlights the importance of entrepreneurship competence as the missing link for successful entrepreneurship, business failure, and national development.

Before we discuss entrepreneurship competence, we need to first understand what entrepreneurship is. Entrepreneurship is the process through which something new and valuable is created by someone who takes on financial, psychological, and social risks for personal satisfaction and monetary rewards. The European Commission defines entrepreneurship as a dynamic and social process where individuals, alone or in collaboration, identify opportunities for innovation and act upon them by transforming ideas into practical and targeted activities in a social, cultural, or economic context.

Entrepreneurship success is multidimensional and includes financial and non-financial factors such as profit maximization, revenue maximization, customer satisfaction, and perpetual enterprise existence. To achieve success in any of these areas, an entrepreneur must be competent in their chosen area of enterprise.

Entrepreneur competence is a cluster of related knowledge, attitudes, and skills that an entrepreneur must acquire or possess to achieve outstanding performance and optimize business objectives amidst various constraints. It includes general competencies and those specific to the chosen area of enterprise. Entrepreneurial competencies are critical success factors required for successful entrepreneurship, business success, and national development, and therefore deserve serious attention in entrepreneurial discourse. No amount of financial resources can replace entrepreneurship competence for successful entrepreneurship.

Entrepreneurship is a vital aspect of national development, and its significance has been widely recognized by various stakeholders, including policymakers, academics, and business practitioners. Successful entrepreneurship requires various competencies that entrepreneurs must possess to enable them to manage their enterprises efficiently and effectively. In this article, we shall discuss eight basic essential entrepreneurial competencies that entrepreneurs must possess to succeed in their businesses.

1.Time Management Competence

Time is a scarce resource, and entrepreneurs must learn how to manage it effectively and efficiently. Poor time management can lead to inefficiencies, which can negatively impact business performance. Entrepreneurs must prioritize tasks based on urgency and importance, delegate tasks to subordinates, and avoid time-consuming activities such as procrastination and poorly conducted meetings.

2.Communication Competence

Communication is an essential tool for successful entrepreneurship. Entrepreneurs must be able to communicate effectively with stakeholders, including clients, employees, and suppliers. Good communication skills can help entrepreneurs disseminate information effectively, facilitate efficiency, and speed up business transactions.

3.Human Resources Management Competence

Effective management of human resources is crucial to the success of any enterprise. Entrepreneurs must possess human resources management skills to enable them to hire, evaluate, and retain employees. Instituting an effective organizational culture is best implemented when an entrepreneur is competent in human resources management.

4.Marketing Management Competence

Marketing is a critical aspect of business success. Entrepreneurs must possess marketing management skills to enable them to sell their products and services effectively. Entrepreneurs must be able to identify their target market, develop effective marketing strategies, and communicate their value proposition effectively to their customers.

5.Financial Management Competence

Financial management is an essential competency that entrepreneurs must possess to enable them to manage their finances effectively. Entrepreneurs must be able to manage their cash flow, budget effectively, and make informed financial decisions. Poor financial management can lead to financial distress, which can negatively impact business performance.

6.Innovation and Creativity Competence

Innovation and creativity are essential competencies that entrepreneurs must possess to enable them to develop innovative solutions to solve business problems. Entrepreneurs must be able to think creatively and develop innovative products and services to stay competitive in their industries.

7.Leadership and Strategic Management Competence

Effective leadership and strategic management are essential competencies that entrepreneurs must possess to enable them to lead their enterprises successfully. Entrepreneurs must be able to develop a clear vision, set goals and objectives, and develop strategies to achieve them. Effective leadership and strategic management can help entrepreneurs steer their enterprises towards success.

8.Networking and Relationship Management Competence

Networking and relationship management are essential competencies that entrepreneurs must possess to enable them to develop strong relationships with stakeholders. Entrepreneurs must be able to network effectively, develop strategic partnerships, and manage relationships with stakeholders such as clients, suppliers, and investors.

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