There are three major competencies for successful entrepreneurshipwhich include:
A body of knowledge,
A set of skills, and
A cluster of traits
A body of knowledge
This is defined as a set or body of information stored which may be recalled at an appropriate time. Knowledge in business may be manifested in information one have on the various aspects of the business e.g. processes business management etc.
Knowledge of business however is not enough for success in setting up and running a business.
A set of skills
A skill is defined as the ability to apply knowledge in business. they can be distinguished into.
- Technical skills – these include engineering, computer, carpentry, catering etc.
- Managerial – these include marketing, time management, financial management, organization, planning, leadership etc.
In many societies, women and men who are directed towards acquiring only some technical and managerial skills which are considered appropriate for their gender, this is why men and women often concentrate on specific business sectors.
Traits are defined as the aggregate of peculiar qualities or characteristics that constitute personal individuality. Traits take time to develop and are not easily changed. Therefore;
- It is more likely that a person who does not have all the three competencies in his or her business will encounter difficulties in operating the venture successfully.
- An individual with only knowledge and skills is unlikely to survive for even if he/she manages to start a business.
- A person with only knowledge and personal traits might find nothing of value to which these skills might be applied to.
A potential entrepreneur with skills and traits but lacking knowledge might be able to start a business but might not be so competitive