Characteristics Of Entrepreneurial Competencies

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. ENTREPRENEURIAL COMPETENCIES: An entrepreneurial competency as defined by Baum at al. (2001) is the individual characteristics such as skills, knowledge, and the abilities required to perform a specific job. These abilities determine how the entrepreneur associates with the customers and also the employees. It allows the entrepreneur to perform his business operations successfully. Entrepreneurial competencies were divided into six categories by Man and Lau (2000): commitment competencies, organizing competencies, opportunity competencies, relationship competencies, strategic competencies, and conceptual competencies. Overconfidence is a negative characteristic of competency because it has been recognized as a major factor affecting the…show more content…
SIZE OF THE FIRM: The size of a firm can be calculated in terms of its market coverage, the number of capital invested in it, the type of technology used, the number of employees it has etc (Pandey, 2005). Size influence a company’s marketing capabilities, needs, attitude, practices etc. which are important causes of firms’ profitability and success (Dean et al., 2000). The larger the firm, the more beneficial it will be in terms of obtaining resources. A large firm will have higher economies of scale, more employees, adequate capital, and also advanced equipment. This will highly enhance the performance and profitability of the SME more. Though, less capital is needed by small business to finance its investment, whereas, lots of capital is needed by large business enterprise to plan and finance the investments, therefore more flexible. This shows that the size of the firm greatly influences the returns which causes profitability. There are various result of the effect between firm size and profitability. A. Vijayakumar (2011) found positive influences between firm size and profitability. A. Stierwald (2009) in his study found that size has a positive large effect with profitability. G. A. Ayele (2012) also found that size of the firm positively influence the
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