Entrepreneurs: Required Skills & Competencies

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  • 0:05 Entrepreneurs
  • 0:27 Entrepreneurial Skills
  • 1:44 Entrepreneurial Competencies
  • 4:24 Benefits and Risks
  • 4:49 Lesson Summary
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Lesson Transcript
Instructor: Tara Schofield
Entering the world of entrepreneurship requires a variety of skills and competencies to help support success. Use the information in this video to understand what factors lead to success for a small business owner.

Entrepreneurs

Entrepreneurs start businesses and franchises that offer products and services to customers. There are specific skills and competencies that help make entrepreneurs successful. Skills include the ability to multi-task and promote interest in a business. Competencies include initiative and creativity and the ability to solve problems and take risks.

Entrepreneurial Skills

An entrepreneur must be a jack of all trades, especially when launching a business. If you're looking to get a business off the ground, you'll need to the ability to multi-task, or oversee details, often at the same time. For instance, let's imagine that you want to open a fitness center and have already saved enough have money to purchase equipment and rent space. While your passion is training others, you soon find yourself faced with other accounting, customer service, and operational chores. These include covering the front desk, maintaining the facility, managing advertising, and paying bills. Because you're a start-up business, you can't afford a full-time staff and must perform much of this work yourself.

Beyond the basic operational activities needed for a company to function, entrepreneurs need to focus on marketing and sales activities. This means attracting new customers, selling products and services, and growing public awareness of the company. For example, you know that there are other gyms in your area, but you believe you can create a thriving business by offering the newest fitness equipment and specialized services. In order to generate interest in your business, you'll need to determine the best way to market your gym. This might involve designing some eye-catching signs or social media pages. It could also involve offering specials for new members or sponsoring fitness events.

Entrepreneurial Competencies

Entrepreneurs may start with a dream and the willingness to make it come true. However, they'll soon have a nightmare on their hands if they don't have the necessary competencies to get their businesses off the ground.

Initiative is the drive and passion a business owner has to do anything and everything necessary to support the company. Entrepreneurs must be willing to do grunt work and put in long hours to make their businesses successful.

For example, every day you arrive two hours before the fitness center opens to make sure that the facility is clean, equipment is working properly, bookwork is complete, and management tasks are taken care of before clients arrive. You also use this time to meet with potential clients and area businesses to grow your enterprise. This is initiative.

Entrepreneurs must also have good problem-solving abilities, which involve thinking quickly, evaluating options, and resolving customer and employee issues and questions. It may feel overwhelming to have so many people relying on you, but the ability to solve problems is key to becoming an effective entrepreneur. For example, you have three employees at your fitness center. While they're great with clients, they frequently have questions and problems that require your input. It can be very frustrating for employees and even lower their motivation if you can't make timely decisions and provide them with possible solutions. Problem-solving abilities not only help to resolve situations, but also build confidence in you as a leader.

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