This section deals with those competencies that predict success.
A enterpreneurial competency model, in the most inclusive sense, is a collection of personality traits, skills, attitudes, motivations, values and other personal characteristics that contribute to the success of an entrepreneur. Competency models are often used in place of the more formal job analysis because of the difficulty of defining exactly what an entrepreneur (or any manager, for that matter) does.
A component of the competency model is the job analysis. A cursory survey of the literature gives a general breakdown of job analysis items into Knowledge, Skills, Abilities/Competencies, Traits (personality, motivation) and Tasks that are relevant to entrepreneurs.
Job Tasks
Delmar Shane 2004 cite key tasks involved in starting a business, including obtaining inputs, product development, hiring, fundraising and gathering customer information. Gartner 1985 cites six tasks, adding the identification of the opportunity and responding to society, merging inputs with fundraising. See Entrepreneurial activities for more on the tasks of an entrepreneur.
Competencies
- Glancey (1998), Baum and Locke (2004) and Barringer (2005) identify a high-growth goal-orientation as critical to success. The latter two authors also agree on communication of vision.
- Baum and Locke point towards high self-efficacy.
- Barringer 2005 adds industry experience and college education as important factors.
- A classic survey by MacMillan (1985) of what venture capitalists look for lists persistence, risk evaluation skill, communication skill, familiarity with the market and leadership ability as key factors.
- Ciavarella 2004 point towards the big five personality attribute of conscientiousness and indicate that openness to experience is actually a negative predictor of entrepreneurial success.
- Schamp 1998 points to business training as supporting entrepreneurial success.
- Bryant (2004) says that vision allows for marshalling resources at a discount.
Resources
Delmar, Frédéric and Shane, Scott (2004). Legitimating first: organizing activities and the survival of new ventures. Journal of Business Venturing 19, 385-410.Delmar Shane 2004
Glancey, Keith (1988). Determinants of growth and profitability in small entrepreneurial firms. International Journal of Entrepreneurial Behaviour and Research, 4(1), 18-27.
Baum, Robert J. and Locke, Edwin A (2004). The Relationship of Entrepreneurial Traits, Skill and Motivation to Subsequent Venture Growth. Journal of Applied Psychology, 89(4), 587-598.
Barringer, Bruce R., Jones, Foard F. and Neubaum, Donald O. (2005). A quantitative content analysis of the characteristics of rapid-growth firms and their founders. Journal of Business Venturing, 20, 663-687.
MacMillan, Ian C., Siegel, Robin, Narasimha, P.N. Subba (1985). Criteria Used By Venture Capitalists to Evaluate New Venture Proposals. Journal of Business Venturing, 1, 119-128
Ciavarella, Mark A., Buchholtz, Ann K., Riordan, Christine M., Gatewood, Robert D., and Stokes, Gernett S (2004). The Big Five and venture survival: Is there a linkage? Journal of Business Venturing 19, 465-483.
Schamp, Tom and Deschoolmeester, Dirk (1998). Strategic and operational planning attitudinal changes and the survival and growth of business start-ups revisited. International Journal of Entrepreneurial Behavior and Research 4(2), 141-177.
