To achieve high productivity levels in the business enterprise, an entrepreneur requires having entrepreneurial competencies. The following are some of the competencies necessary for setting up and managing a successful business enterprise:
1. Time management
Time is a scarce resource, it is irreplaceable and irreversible, therefore to achieve more in the day to day business, the entrepreneur must be thoroughly equipped with the skills for managing his/her time effectively. The entrepreneur needs to learn how to manage their time effectively by carrying out activities such as; quick decision making habits, keeping diaries, delegating duties, avoiding unnecessary interruptions, properly conducted meetings, avoiding queues, selecting and following priorities among others. A successful entrepreneur is an effective time manager.
Communication is the transfer of ideas from the sender to the receiver. It is a means of transmitting information, work instructions and feedback in the business enterprise. It is an indispensable management tool, and an entrepreneur must learn to communicate in correct, clear, short and courteous manner in order to accomplish desired goals. The entrepreneur requires effective communication skills for the following reasons:
- Communication process helps the entrepreneur effect the managerial functions of planning, organizing, staffing, influencing, interacting, controlling and coordinating.
- It facilitates distribution of work to various categories of staff.
- It is an effective tool for staff participation in decision-making and entrepreneurial effectiveness.
- It enhances the development of actual understanding among all organizational members.
- It helps create good public relations of image for an organization.
3. Human Resources Management
The human resources are the most difficult to obtain, the most expensive to maintain and the hardest to maintain in a business enterprise. The entrepreneur needs to put in place both human resources (labor) and capital resources (money, machinery, materials and methods) in order to achieve the overall organizational goals and objectives. The effective management of human resources determines the success or failure of the organization because all other resources depend on the human element.
As the business enterprise grows, the entrepreneur may need to hire new employees. To do so, he must follow important procedures for of interviewing, hiring, evaluating and preparing job description for new employees.
4. Marketing Management
Marketing skills in the growth stage of a new venture are also critical to a venture’s continued success. A business enterprise will need to develop new products and services to maintain it’s distinctiveness in a competitive market. This should be an ongoing process based on information regarding changing customer needs and competitive strategies. This information can be obtained formally using survey or focus groups, or informally by direct contact with customers by the entrepreneur or his/her sales forces.
5. Social Responsibility
The establishment of every business venture is backed up by the profit motive which leads to the production of goods and services. The business venture also has the responsibility to embark on certain projects within and outside its environment as part of its social responsibility. The entrepreneur needs to effect some social responsibilities contribution to community development, product safely, employment generation, ethical business among others.
Leadership is an important factor in determining the success or failure of a business enterprise. For an entrepreneur to succeed, they must have the ability to direct the organization and persuade others to meet the objectives of the business. They has to be creative with unique leadership qualities and personal styles.
7. Decision- making
Decision-making is very important to the success of an entrepreneur. They makes decisions on a daily basis and therefore has to acquire adequate knowledge and skills in decision making to enable him/her make the right decisions and implementing them in order to achieve the optimum result in a given situation.
8. Financial Management
Every business enterprise requires capital with which to start its operation. This capital refers to the money needed to start and operate the business assets. An entrepreneur needs to acquire knowledge on financial management issues like anticipation of financial needs for the enterprise, acquisition of funds and allocation of funds in order to yield optimum result.
The essence of financial management knowledge is therefore to ensure that there is adequate cash on hand to meet the necessary current and capital expenditures as well as to assist in maximizing growth and profits.