3 Entrepreneurial Competencies and Behaviour

P. Malathy

epgp books

 

 

 

 

1. INTRODUCTION

 

The French origin word ‘Entrepreneur’ connotes to a business head who assumes an indispensable role in the economic development of a country. An entrepreneur is groomed well based on the circumstances that expose him the requisite opportunities and resources. An entrepreneur who makes the best strategic plan of bridging both the opportunities and the available resources persistently and undoubtedly holds on to the wings of corporate victories. At all times it is one’s enterprising skill that acts a magic wand for one’s corporate success. The anecdote of a blind beggar who didn’t get any money but gained the pity of a passer-by’s enterprising skills would serve a right example here. There was a blind beggar who was begging for his bread with a card-board inscription stating “I am blind. Please help”. But none took a notice of him. A passer-by who happens to behold this beggar takes his cardboard and wrote on the other side, “It’s a beautiful day. You can see it but I cannot.” This moving statement gains a good sum of money for that blind beggar. The noteworthy point here is the enterprising statement written by the passer-by.

 

2.LEARNING OBJECTIVES

 

At the end of this module, the learners will be able to

 

Comprehend Entrepreneurial Competencies Distinguish Entrepreneurial behaviour

 

3. ENTREPRENEURIAL COMPETENCY

 

The phenomenal success of an entrepreneur actually depends on the behavior and competency level of that entrepreneur. It is here the question about the entrepreneurial competencies arises. To use Callahan’s definition, “Entrepreneurial behavior is the subset of entrepreneurial activities concerned with understanding, predicting and influencing individual behavior in entrepreneurial settings.” Entrepreneurial competency refers to the adeptness of an entrepreneur’s Corporate Ingenuity, Corporate Leadership, Corporate Diplomacy, Quality Consciousness, and Entrepreneurial-Mind Set.

 

3.1 Corporate Ingenuity

 

Corporate Ingenuity is the prime quality of entrepreneurial competencies. Generally speaking, Corporate Intelligence depends on the way of one’s positive approach to any business situation. This may be well comprehended with an exemplification. Once there lived a shoe-manufacturer who asks couple of his salesmen to explore their business potential in a nearby country. Both of them observed that the place where they had been sent didn’t possess the least knowledge about wearing shoes. On their return to their master, the first sales man reported that there had been no chance of establishing their business as those people didn’t have awareness about shoes. Whereas the second sales man said that was the best place for establishing their business as those people would love and enjoy the comfort of shoes if introduced. The second sales man shall be appreciated for his corporate ingenuity at this instant.

 

Corporate Ingenuity perhaps refers to the competitive intelligence of an entrepreneur who sets himself in observing the business prospects, mustering information about the pros and cons of the business and comprehending the demand for their products besides executing the strategic business plans of the organization successfully.

 

3.2.Corporate Leadership

 

Corporate Leadership is wrongly assumed to be an occupation or designation most of the times. As a matter of fact, Corporate Leadership is the prominent adeptness imbibed by any entrepreneur to be triumphant in the corporate world. It is a responsibility that every entrepreneur shoulders. It requires the precocious knowledge of a corporate leader who could holistically view every employee along with his /her attitude, expertise, interests and personal profile from the top to bottom. A good leader always knows the smart ways of work execution and work distribution in the organization. The employee’s field of expertise is always taken into account by the best corporate leader before work allotment. This quality actually reduces the burden and unnecessary botheration of the entrepreneur. Therefore Corporate leadership skill shall be observed as the second indispensable entrepreneurial competencies of every corporate.

 

For instance, the corporate tycoon and the recipient of Padma Bushan in 2008 and Padma Vibushan in 2000, Mr. Ratan Tata is stated to have raised the profits of his industries 50 times during the 21 years of his corporate involvement. His courage of investment in various businesses besides his focus and choice of right industrial arena for investments shall be inferred by many entrepreneurs.

 

3.3.Corporate Diplomacy

 

Corporate Diplomacy is the third phase of entrepreneurial competencies to be discussed. This quality shall be simply defined as the capacity of the corporate to say ‘Yes’ and ‘No’ at the appropriate business contexts. Here, the entrepreneur needs desirable discretion to decide on what can make the business flourish. To understand the business structure an entrepreneur has to acquire adequate experience on corporate diplomacy. An emotionally well-balanced entrepreneur has the optimum opportunity of practicing Corporate Diplomacy. This potentiality has its roots in the cool and stress-free attitude of an entrepreneur at all times. So that the decisions made in the corporate always serve towards the progress of an organization. Sometimes this corporate diplomacy also results in adverse effect of one sect of the corporate. In such a situation to safeguard the industrial output holistically, the entrepreneur is pushed to an extreme to make decisions. This actually reminds the owl and mouse story where the mouse seeks the help of the wise owl to get out of the dense forest in which it gets trapped and the owl in turn answers the mouse to grow wings. Of course, it is certainly incredible. However, here the mouse which loses it last hope with the owl will certainly find its own way out is the real logic practiced as corporate diplomacy at vulnerable business contexts. It is the necessity that leads one towards great explorations most of the times. And that has come true in many cases.

 

3.4.Quality Consciousness

 

The best avenue of an entrepreneurial success shall be attained through the fourth entrepreneurial competency namely Quality Consciousness of the end product. Quality consciousness is not a cake walk. It is framed on the foundation of the holistic industrial commitment and sincerity of the employees. When the employees are highly satisfied with the corporate norms the quality of the product manufactured shall naturally stand a fool proof for its quality. This characteristic does not only uplift the profile of an industry but also of the entrepreneur. On the other facet, when an entrepreneur gives prime importance to the quality of the end product the job of advertisement is taken up easily by the consumers willing propaganda about that product. This gives a serendipitous progress to the business by uplifting of the profile of the entire group of organizations also. It is noteworthy that any big corporate has a small beginning point. Big or small doesn’t matter in case of investments it the quality consciousness that takes a business to its heights.

 

This shall be deciphered from an anecdote where a cardiologist takes his car to a car mechanic’s garage to set it right. There the chief mechanic instructs a novice to set it right by narrating the process of it and the tools to be used. In few seconds the car is set right and the bill is submitted to the cardiologist for payment. As the bill seemed to bear an unimaginable high payment, the doctor says its atrocity to charge that much for a simple work. The mechanic immediately makes a general comparison with the big figured medical bills given by the doctors for simple treatments. For which the doctor replies that the mechanics work not on machines when they are plugged-in to electricity whereas the doctors employ their total Medical expertise while the human machines are in its full vitality. And that makes the difference justifies the doctor. Here the mechanic immediately puts forth a question to the doctor as such: “Doctor, we can work on dead machines to bring it alive. Can you?” The doctor gets stunned by that mechanic’s query and leaves the garage by paying his bill silently. Big or small the quality consciousness of a work speaks for a long time is the moral conveyed here.

 

3.5.Entrepreneurial-Mind Set

 

The Entrepreneurial-mind set shall be addressed as the winner-mind set. In fact, this Winner-mind set is the crucial part of an entrepreneur’s corporate success. To state that precisely the corporate mind set has its strong roots on certain essential entrepreneurial qualities like Assertiveness, Self-motivation, Determination, Commitment, Focus, Goal-Setting, Systematic Planning, Prioritization of Work, Plan Execution and Entrepreneurial Stability. For instance, Reliance Industries without Padma Vibushan. Dhirubhai Ambani, Infosys without Padma Vibushan. N.R Narayana Murthy, Western Indian Vegetable Products called WiPro without Azim Premji are unimaginable without the entrepreneurs associated with their respective industries. What has made these business tycoons so special to occupy the space coverage of several reputed magazines? If pondered well, the answer is naturally their entrepreneurial-mind set which comprises Assertiveness, Self-motivation, Determination, Commitment, Focus, Goal-Setting, Systematic Planning, Prioritization of Work, Plan Execution and Entrepreneurial Stability. This entrepreneurial stability arises from the entrepreneurial behaviour which shall be discussed elaborately now.

 

4.ENTREPRENEURIAL BEHAVIOUR

 

Entrepreneurial Behaviour is perceived as an entrepreneur’s attitude in observing the consumer behavior on both psychological and sociological facets of the business. A thorough understanding of entrepreneurial behavior is both an art and science. While the strategic approach to human behaviour is considered to be science and the practical exposure of behavioural knowledge serves to be an art. To state in other words, Entrepreneurial Behaviour is an essential and fundamental psychological knowledge of an entrepreneur to stick on firmly to his /her incessant industrial success.

 

Here arises a query. Why the entrepreneurial behaviour is considered significant to be comprehended? This shall be justified with the frog and scorpion anecdote. Once there lived a scorpion which sought the help of a frog to cross a river. The frog was scared and replied “if I carried you on my back you would sting me to death.” But the scorpion replied why I would sting you when both our lives were at stake. As the reply of the scorpion seemed sensible the frog accepted to the deal and carried the scorpion on its back. Half the way through, the scorpion had stung the frog. The frog writhing in pain asked the scorpion why you stung me even after knowing it would doom both of us to death. The scorpion replied, my nature and attitude to sting had gone vulnerable and irresistible. So I had stung you said the scorpion pathetically. The inference from here is a very strong understanding of entrepreneurial behavior for taking preventive measures to solve any corporate crisis. When an entrepreneur possesses the requisite entrepreneurial behavior he/she obviously has

  1. Understanding of the client /consumer behaviour
  2. Interpretation of the client /consumer behavior
  3. Foresight of the societal compulsion
  4. Observation of triplicate behaviour pattern
  5. Identification of transformation in Consumers’ interests

Lets now get started with all the five components to be observed with the perspective to enhance the entrepreneurial behaviour.

 

4.1. Understanding of the Consumer Behaviour

 

The first component is understanding the consumer behaviour. Concentrating on Entrepreneurial Behavior perhaps, opens the doors of Behavioral approach discussed in the business management concepts. Entrepreneurial competencies indeed rely on the behavioral concepts of human beings. This study has fixed its strong roots on the behavioral knowledge of human beings pursued through observations on human behavior. In fact, this behavioral knowledge is an essential enterprising skill. Furthermore, both animate and inanimate things shall give clues about the interests, beliefs and attitude of human beings. The inanimate things used by human beings prominently proclaim certain essential information about them which may serve a clue or tool for a successful business deal.

 

For instance, a skilled door to door marketing person usually comprehends the success of his business deal everyday by observing the foot-wear cupboard kept outside every house before pressing the calling bell. The clues about the number of members in the family, proportionate mix of male and female members, age group of kids in the family, economic status of the family availability of members inside the home shall be inferred from the foot-wear cupboard.

 

4.2 Interpretation of the Consumer Behaviour

 

The second component of entrepreneurial behaviour is Interpretation of the consumer behaviour. An entrepreneur’s interpretation capacity of the consumer behavior helps to promote and smoothly maintain the business relationship between each other. Offering freebies to the consumers on buying their goods, allotment of rebate percentage on certain specific purchases, issuing smart cards of that enterprise with credit points to make the consumers fall back to them for all further purchases are quite a few instances where the consumer behavior is well-generalized by the entrepreneurs. In some of the big garment industries of Tamilnadu, the consumers who set themselves on purchase are offered free quality beverages especially in the evenings. This naturally results in the flooding of consumers to those shops.

 

The sales men of these shops are trained by the entrepreneurs to speak in a convincing and cajoling manner so that no consumer walks out of the shop after a window-shopping experience.

 

4.3 Foresight of the Societal Compulsion

 

The foresight of the societal compulsion is the third component of the entrepreneurial behaviour. The fundamental awareness about the societal compulsion for a purchase of certain products becomes the significant knowledge of an entrepreneur prior to devising his / her business plans. The society in which the entrepreneur lives perhaps forms a strong base to the entrepreneurial behavior. This societal factor has an equal role on the consumer behavior also. Whether a soap manufacturer or a beverages producer, irrespective of the nature of the business, an entrepreneur is prone to study the societal taboos, societal beliefs and societal anxiety before marketing the commodity. A few readymade shops in Coimbatore District of Tamilnadu freely offer oven fresh sweets to kids and perfumed natural flowers like white and pink jasmines to married women on Fridays who visit to shop there. The sentimental attachment of Tamil married women is the societal belief well utilized by the entrepreneurs of the garment industry in Coimbatore District of Tamilnadu.

 

4.4. Observation of Triplicate Behavioural Pattern

 

The forth component of the Entrepreneurial behaviour deals with the triplicate behavioural pattern . This inter-linked cyclic behavioural pattern opens an avenue to identify three behavioural elements namely,

  1. Individual behaviour,
  2. Inter-individual behaviour and the
  3. Behaviour of organisations

These three behavioural patterns are interconnected and they may be easily understood with the help of an incident. A person who commutes to his workplace every day by train observes an idle man on the platform from where he boards in the train. One fine day the commuter calls the idle man and hands over 4 soft drink containers and asks him to crush and push it into the recycle machine kept in the station by the recycle industry located in the city. This idle man reluctantly goes to the machine and obeys the instruction given by the commuter. Immediately the machine yields him some nominal amount with which he can order for a tea. The next day commuter happens to see the man picking up all empty soft drink containers. After that he was not at all seen on that platform. After a short span of one year on a sultry day afternoon, the commuter stops his bike to take a soft drink at a shop. To his surprise he finds the idle man in the cash counter who offers a free drink to the commuter as a sign of his indebtedness.

 

If we closely analyze the story the commuter throws a psychological stimulus on the idle man to work by exposing him the benefits of it. Here the behavior of the organization that persuades an employee to work and scale heights shall be inferred. Secondly the inter-individual behavior of both the men one in giving and another in executing orders shall be deciphered. Thirdly, the idle man’s individual behavior is tapped to progress in his career is unveiled. Similarly the organizational behavior forms a psychological stimulus towards enriching the work potential of every individual.

 

4.5. Identification of transformation in the Consumers’ Interests

 

The fifth component of Entrepreneurial behaviour deals with the transformation in the consumer’s interests. Understanding the transformation of consumers’ interests about the commodity available in the market best helps the entrepreneur to introduce quality and utility based products in the commodity market. The transformation of Consumers’ interests of course paves the way for appropriate sales strategies to market the innovative products. The entrepreneurial behavior is set on full swing in analyzing demands of the consumer and supplying their need. Catering to the anticipation of the consumers within the frame of the corporate dogma is a puzzling experience to almost all the entrepreneurs as they have to wait and watch the end results of their business.

 

5  CONCLUSION

 

To summarize the entire lecture the Entrepreneurial Competencies are studied under five major headings namely Corporate Ingenuity, Corporate Leadership, Corporate Diplomacy, Quality Consciousness, and Entrepreneurial-Mind Set. The lecture content simultaneously focused on Entrepreneurial behavior where the potentiality of an entrepreneur in

  1. Understanding of the client /consumer behavior
  2. Interpreting the client /consumer behavior,
  3. Foreseeing the societal compulsion,
  4. Observing the triplicate behavioural pattern and
  5.  Identifying the transformation of consumer’s interests.

 

In addition to all these, the entrepreneurial behaviour comprises both theoretical and practical approaches. This can be studied with the understanding of research applications that opens the doors of organizational comprehension. A thorough knowledge on these two facets of entrepreneurship namely entrepreneurial competencies and entrepreneurial behaviour help the corporate heads to achieve their corporate goals. These corporate triumphs actually sprout from the rational thinking of the entrepreneurs and commitment invested by the employees of an organization. Precisely, the entrepreneurs’ rational thinking entertains the best behaviour among the employees, progressive out-put percentage resulting in admirable turn-over of an organization, smart work ambience of the corporate and the aspirations of the employees to grow along with the organization. The significant aspiration of the entrepreneurial behaviour enunciates and explicitly and forecasts the enterprising potentialities of human behaviour in general. In short entrepreneurial competencies and entrepreneurial behaviour provides a strategic plan of the action and attitudes of people employed in an organization. Furthermore, this study has also given a hint on the indispensable changes in human behaviour along with the changes and growth of the technical world of the corporate.

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Web links

 

  • https://www.jbs.cam.ac.uk/fileadmin/user_upload/research/centres/accelerate-cambridge/downloads/entrepreneurship-and-entrepreneurial-behaviour.pdf
  • https://www.emeraldinsight.com/doi/full/10.1108/IJEBR-02-2015-0042 https://academic.oup.com/restud/article-abstract/24/2/87/1592759?redirectedFrom=PDF http://www.open.edu/openlearn/ocw/mod/oucontent/view.php?printable=1&id=1451
  • https://www.forbes.com/sites/groupthink/2012/06/04/the-behavioral-traits-of-a-successful-entrepreneur/#2e0dcd096190
  • https://www.researchgate.net/publication/242022407_Exploring_the_behavioural_patterns_o f_entrepreneurial_learning_A_competency_approach
  • http://www.amosweb.com/cgi- bin/awb_nav.pl?s=wpd&c=dsp&k=entrepreneurial%20behavior
  • https://www.researchgate.net/publication/215694453_Entrepreneurial_Behavior