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What is Entrepreneurial Skills ? | Meaning & Most Important Entrepreneurial Skills

Entrepreneurial Skills


What is Entrepreneurial Skills ?


A wide variety of skills are essential for an entrepreneur to establish and successfully function in business. These skills comprise of workplace skills which are necessary for employees and further skills that indicate the other demands of managing a business. Although, possessing some of these skills is actually not quite essential for achieving success in business venture, it is always good to have them as they help in increasing the quality of an entrepreneur's business and enhance the probability that it will flourish and sustain in the long-run. Hence, it is crucial to recognize the different skills employed by entrepreneurs and evaluate as to how they can be reinforced by policy.

The workplace skills needed by any worker are considered as a good basis for beginning. They integrate generic skills, indicating those skills employed in the work environment that are assignable to various jobs and industries, in addition to other facets of life including planning, organizing skills and communication and teamwork and skills that are peculiar to specific work functions or activities like interpretation, plumbing or computing skills.

5 Most Important Entrepreneurial Skills


An entrepreneur is capable of generating various skills over the course of time with the help of his/her proficiency. The different entrepreneurial skills are as follows:

Entrepreneurial Skills

Creativity


For successful entrepreneurship, creativity is the pivotal skill required by an entrepreneur. Entrepreneurs are not confined to the current knowledge as creativity aids entrepreneurs in acquiring depth of knowledge or proficiency. They extend and utilize prior knowledge in generating new concepts, applications and processes. Understanding the role of creativity in entrepreneurship is very crucial for the entrepreneurs. Creativity refers to development of new ideas leading to better efficiency or productiveness of a system. People and process are the two significant facets of creativity. People or the human resources are responsible for finding the solution. The process is target-oriented and suitably formulated to determine the solution to an issue. The process remains the same, even though the method employed by people will differ.

There has not been much detailed or thorough analysis of the concept called as 'creativity in entrepreneurship. The value of creativity simply remains an ideology in entrepreneurship. Creativity has the capability to discover new answers and conceiving new ideologies. Hence, creativity is advantageous and important quite apparently, as problem solving is the main task which an entrepreneur eventually is doing most of the time.

Importance of Creativity to Entrepreneurs 


The importance of creativity to entrepreneurs is as follows :

1) Ability to Discover New Solutions : 
Creativity is one concept that has remained unexplored in depth. It helps the entrepreneurs to look up for better solutions to issues and invent new things. Hence, creativity can be better understood by entrepreneurs as problem-solving is one of their key functions.

2) Increases Efficiency : 
Creativity also plays a crucial role in the innovative and creative process. Ideas that end up improving the output and the effectiveness of system need creativity. It acts as a main source to develop ideas in order to increase the efficiency and usefulness of a a system. In creativity, there are two main features, viz., people and process. The people are represented as the resources who find out the solution, whereas, the process follows above methodology. It is a target oriented and structured way of problem-solving. Although the approach that people might use differs from process to process.

3) Enhances Knowledge : 
Creativity provides the benefit of in-depth knowledge and skills to entrepreneurs and also widens the scope of knowledge. It helps entrepreneurs to utilize their prior skills in creating better ideas, techniques and improved ways of implementing them.

4) Assists in Exploring Opportunities :
Developing something new needs an extensive research to find out the opportunities in different areas. At times, it might also be needed to set up new areas of new market opportunities. In the initial stage, new ideas might be developed by thinking totally out-of-the-box or following at dynamic process or alternative set of actions.

Problem-solving Skills


Irrational thinking or wrong suppositions form the basis of several entrepreneurs while making crucial decisions. The best entrepreneurs are the ones who employ formal problem-solving techniques to collect data and assess various alternatives. Sometimes, in order to make a particular decision, a particular individual who can most appropriately provide solution for that problem is considered. However, in case of other decisions involving consensus-building and brainstorming. other individuals from the organisation are referred too. An entrepreneur must be able to apply the best alternative solution for solving the internal and external business related problems. He should know when to exercise individual decision-making and when to exercise group decision-making.

Critical thinking skill is significant as it makes sure that entrepreneurs recognize problems and turn them into opportunities. The human brain is challenged to create solutions to resolve most complex business problems. Critical thinking is a must for the entrepreneur to solve business problems and challenges.

A condition where the pre-determined objective cannot be promptly and consistently attained because of an obstruction or challenge is called as a problem. One of the most intricate and advanced facets of human cognition is the power to resolve issues. The process of problem-solving involves comprehending esent scenario and later finding out the proper the present and actions that decisions and actions can result in achieving a solution to that problem. The problem is resolved through the e use of different tools and resources. If the entrepreneur is not experienced enough with such tools and resources, it is very difficult to find the desired result. Interacting with experts or other individuals comes helpful in a few types of problems.

An entrepreneur will become skilled and proficient in decision-making with the continuous use of decision making model. This will definitely become a significant tool in the journey of entrepreneurial career. 

Upgradation of Problem-solving Skills


The problem-solving skills can be upgraded by making use of following techniques :

1) Effective Communication : 
Effective communication is very useful technique for problem-solving. This is because whenever an entrepreneur is making any decision, or solving business issues, he/she has to interact with the other individuals. Such interaction may involve asking questions, requesting correct and timely information and conveying their thoughts and views. Such events require an entrepreneur to have the ability to convey and communicate distinctly. An entrepreneur should also be a good. listener as it is necessary to precisely listen to feedback's, viewpoints and information provided by others. Listening to others' opinions or ideas: assists in effective decision-making...

2) Brainstorming : 
The next technique used for problem-solving is brainstorming that consists of developing numerous novel and unconventional ideas. Even though brainstorming is usually done in a group setting, it may also be practiced at individual level. In a group brainstorming session, members try and think about a particular problem (which the entrepreneur is striving hard to resolve) and offer different solutions to the problem without any fear of being criticized. The focus is on generating more and more ideas and not on evaluating them. When sufficient solutions are offered by the members, the best alternative is selected to solve the problem.

3) Learning from Mistakes : 
If a person wishes to become a successful entrepreneur, then he or she cannot afford to be worried about committing mistakes. It is most likely to commit mistakes; however, it is possible to turn a negative into positive. Thus, a wrong decision can be turned into a right decision. Every entrepreneur must regard his mistakes as an important learning experience. These mistakes help the entrepreneur interpret and decide what to do and what not. This learning experience is worthwhile in the entire entrepreneurial career.

Decision-making Skills


Decision-making skills are those which assist in reviewing problems, finding and evaluating practicable alternatives and making fair and logical decisions. Analyzing the best possible manner to take such decisions also comes under decision-making skills.

Decision-making skills are central or decisive in managing a business successfully. Every entrepreneur should have the ability to make valid and reasonable and well-researched decisions with reference to daily operations involving production, finance, marketing and on. Successful 30 entrepreneurs have the potential to make decisions effectively in an educated manner, even when the pressure to succeed is high. They have gained an understanding from their earlier mistakes and would form better opinions and judgments in the future. In order to become successful entrepreneurs, businessmen and women have to be creative or innovative when it comes to decision-making. Self confidence and strong willpower are a must for an entrepreneur. The most distinctive mark of an entrepreneur is his/her capability to make good decisions. All the major decisions concerning the business and its future are taken by the entrepreneurs.

One of the most significant entrepreneurial resources, i.e.. intuitive decision-making capabilities comes from exposure attained while making decisions in more and more complicated and intricate conditions. Generally, managers working in organisations are less innovative in their approach towards decision making in comparison to entrepreneurs. They (managers) should tackle issues considering various outlooks and pursue creative methods to resolve them. Under a specific scenario, they should make use of their perceptions to contemplate the probable consequences and results of other solutions. Many entrepreneurial decisions are personalized and therefore, they cannot be entirely free of emotional implications. Entrepreneurs must pinpoint the benefits and drawbacks of a probable solution to judge it beyond the emotional facets. With such actions, the decisions may be more objective.

Every entrepreneur should make decisions. The level of effectiveness of an entrepreneur can be regulated by the quality of these decisions. The potential of an entrepreneur to cope with uncertainty has a major impact on his/her decision-making skills while choosing a line of action. Uncertainty is the key feature of any new venture. There is no certainty. about the market, competition level, value proposition and even the capability to remain stable. Whenever difficulties and issues surface, entrepreneurs become resilient in nature. They should learn to identify the tactics which exactly work and which do not.

Generally, the decision-making skill of entrepreneurs is tested in complex and sensitive situations. Entrepreneurs should not be nervous in such conditions and use the available information (either complete or incomplete) to make an effective: decision. The entrepreneur as a manager uses his/her decision-making skill and selects the best possible alternative to solve the current problem. Selecting the accurate option is to a very great extent different decision from selecting the best alternative.

Keys for Decision Making Skills


This kind of decision-making process can be successfully executed with the help of following six keys :

1) Risk Quantification : 
The foremost step in the decision-making process is to precisely quantify and evaluate the risks associated with such decisions. This task can be very well achieved by successful entrepreneurs as they are capable of going deep in their analysis. Other entrepreneurs usually overestimate real risks and underrate: their likelihood for attaining success, hindering future success.

2) Creative Thinking : 
The second step is to devise possible answers to a problem with regards to all of the available resources Entrepreneurs can usually identify those assets and strategies which other people fail to recognize. As per Elon, same method of formulating solutions to problems will not get results invariably in all the circumstances.

3) Speed : 
It has been remarked that true leaders make fast decisions and are rather slow in modifying them. Due to the limitations like indecisiveness, many managers fail.

4) Bold Action : 
The next step is to be confident and actively follow the path or course of action that has been selected.

5) Backup : 
Entrepreneurs who manage businesses have witnessed several difficult conditions and have transformed such conditions into favorable situations with the help of a backup plan. Although the most logically selected line of action is followed, things may not work the way intended. Hence, a sound and convincing backup plan must be formulated to protect the downside state.

6) Debrief : 
Lastly, when every step has been diligently followed, analyse what has been done. It is stated by successful entrepreneurs that an individual in business should make new mistakes every time without repeating the old one. This statement is indeed true as it is perfectly fine to commit mistakes in business but repeating the same mistakes is not the sign of an entrepreneur.

Communication Skills


Each and every person in the organisation needs to have good communication skills. That is why, it is crucial for the entrepreneurs to have communication skills. If an entrepreneur does not have the reasonable communication skills, then the remaining skills possessed by him are no longer helpful. A good entrepreneur understands the usefulness of conveying plans and strategies to employees, keeping track of opponents in the industry, comprehending new trends in the market and also keeping an eye on the employees of his/her firm; that is why, he tries to become a good communicator. It is a skill to use the appropriate tone in written or oral communication and successful entrepreneurs have such skill.

It is possible for an entrepreneur to take his/her business to the next level by regularly grasping and ultimately incorporating these entrepreneurial skills. Subsequently, he/she will be competent enough to help introduce these requisite attributes in some other aspiring entrepreneur.

Elements of Communication Skills


Some of the communication sources used in business are letters, memos, meeting (with customers, bankers, suppliers, and associates), telecommunication, etc. Every day, an entrepreneur needs to use speaking, writing and listening skills to succeed in business. These skills comprise of the following :

1) Speaking Skills : 
Verbal communication carried out either face-to-face or over the telephone is the common mode of communication in businesses now-a-days Clients, suppliers, customers and other parties with whom an entrepreneur deals are largely influenced by his/her speaking skills.

2) Writing Skills :
It is very necessary for an entrepreneur to communicate in written form with different parties like customers, suppliers, employees, etc. That is why, entrepreneurs have good writing skills. Ideas can be conveyed in a precise manner because of good business writing skills.

3) Listening Skills : 
An entrepreneur is a very good listener. Listening skills are very helpful in clearly communicating the ideas among the employees, customers and other parties. Incompetency in listening to other people's doubts, suggestions, etc., is one of the reasons of problems occurring in business.

Leadership Quality


Leadership can be defined as the capability to inculcate confidence in employees to achieve the objectives of the organisation. It is a technique which outlines the group and organisational goals, assists in describing the groups or organisational culture and then stimulates behavior towards the realization of these goals. In order to be an effective leader, the person must possess the ability to promote changes. motivate the members of the team and lead towards the accomplishment of the common goals.

The potential to establish a business vision for an organisation and to motivate all the employees of the organisation to strive for that vision as a team is the leadership skill of an entrepreneur. "People would rather be led than managed" is the statement that particularly relates appropriately to an entrepreneurial venture. Not all the entrepreneurs have every skill required to confirm business success. For example, entrepreneurs usually expect assistance from outside professionals in various domains like specialized marketing, accounting and finances, strategic planning and contracts, and legal issues.

Several entrepreneurs concentrate on conducting specific tasks, i.e. they surpass the objectives connected with task performance. Rather they prefer to pay attention on vision of the firm, i.e., what is to be achieved and what the business could be. The entrepreneur would use these communication skills to convey the business vision apparently to all his employees, customers and other stakeholders. This practice would immensely aid in advancing the business. It is evident that if the entire team is working towards a common vision, it ought to be achieved successfully. 

Elements of Leadership Skills


An entrepreneur can possess following leadership skills : 

1) Execution : 
Executing plans into actions is the strategy of entrepreneurs. Business entrepreneurs who are incapable to perform well are always explaining their future plans or strategies to achieve set goals. Assertive entrepreneurs are the ones who are likely to take epic actions.

2) Optimism : 
Being optimistic is an essential skill possessed by every entrepreneur. They are confident that they can achieve the task, even though it is difficult, they somewhere suppose they can do it. Problems are not considered as hurdles but as opportunities.

3) Persuasiveness : 
Successful entrepreneurs are capable of selling everything be it an idea, dream, vision, product or service. They have the potential to make people do those tasks which otherwise they would never perform. Bringing this positive change amongst people is possible by employing the convincing power. Especially, they can convince consumers to buy something even when they have very little or no track record at all.

4) Focused : 
Entrepreneurs are selective in their approach: they do not attempt to do everything. They are likely to be sharply focused on the set objectives and attain them persistently. It is very difficult to shift their focus or deflect them from their goals and they are resolved to say no to good opportunities. Absence of vision is less detrimental for any business than absence of focus. Most leaders are distracted by the wide range of goals and targets set by them.

5) Generous : 
Value addition is the motto of successful entrepreneurs. They always believe in extending more in service towards the organisation Leaders with generous attribute have a pleasing personality which is beneficial in attracting the right clients and staff members in the organisation.

6) Fast : 
Successful entrepreneurs do not hesitate to change their way of action as soon as they realize it is a waste of time. They are not rigid in conducting the business as it is, in case of failure or loss. They tend to change quickly. For them, it does not make any sense to keep going on an unsuccessful idea.

7) Careful : 
On the contrary to traditional belief of risk-taking, successful entrepreneurs show the characteristic of caution. The best leaders are those who do not take risks just for the sake of taking a risk. They take big risks very carefully only after evaluating the possibility of success.

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