The essential elements of entrepreneurial competencies are as follows:

(i)    Knowledge
(ii)    Skills
(iii)    Motives and traits.

Innovation is possible only through knowledge. in simple words, knowledge means collection of information and retention of facts that an individual stores in some parts of his brain. Creative process provides imagination, germinates ideas, nurtures them and develops them successfully. But innovation is the development process which translates an idea into an application. It requires persistence in analytical working out the details of product design or service, and to develop marketing, obtain finances and plan operations.

Skill is the ability to demonstrate a system and sequence of behaviors that are functionally related to attaining a goal. An entrepreneur is required to have certain skills which are as follows:

(a)    Anticipatory skill- foresight into a constantly changing environment.

(b)    Visioning Skills- inducing a group to act in accordance with the leader’s purposes or the shared purposes of a larger group.

(c)    Value Congruence Skills- the need to be in touch with employee’s economic, safety, psychological, spiritual, sexual, aesthetic and physical needs in order to engage people on the basis of shared motives, values and goals.

(d)    Empowerment Skills- the willingness to share power and to do so effectively.

(e)    Self Understanding Skills- introspective or self knowledge skill as well as framework within which leaders understand both their own needs and goals and those of their employees.
In practice, an entrepreneur who pursues an idea, plans its application, acquires resources and establishes its market though persistence, planning, organization and leadership needs the above skills. With the help of these skills, an entrepreneur is expected to perform well in his entrepreneurial venture.

Motives deal with recurrent concern for a goal, state or condition appearing in fantasy which drives, directs and selects behavior of the individual. In simple words, motive represents thoughts related to a particular goal or state. McClelland  opined that “need for achievement” is a motive to excel that tends to characterize successful entrepreneurs especially when reinforced by cultural factors.

Trait may be defined as a disposition or characteristic way in which a person responds to a set of stimuli. Such responses represent intelligence, chrismal, decisiveness, enthusiasm, strength, bravery, integrity and self-confidence. Thus traits are an individual’s personal characteristics. Certain traits are found in to the needs of others, understanding of the task, good communications skills, initiative and persistence in dealing with the problems. An entrepreneur provides leadership to his enterprise and so he must possess the leadership traits. He should be (i) adaptable to situations faced, (ii) alert to social environment, (iii) ambitious and achievement oriented, (iv) assertive, (v) cooperative, (vi) decisive, (vii) dependable, (viii) dominant (desire to influence others), (ix) energetic (high activity level; persistent, (x) self-confident, (xi) tolerant of stress, and (xii) willing to assume responsibility.

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