Entrepreneurship is the process of creating, designing, starting, and maintaining a new business and managing the related risks with the intention of generating a profit. The entrepreneurial businesses are usually small businesses at the beginning but with a major willingness and a capacity to develop into a large business venture. The people who create these types of businesses with the intention of growth and profitability are called entrepreneurs.
Entrepreneurship seems easy as building and running a business. However, starting up a small business and continuing it to a point where it can make a profit is no piece of cake. Many businesses have to go through rough incidents such as lack of funding, management issues, lack of market demand, bad and incorrect decisions made by the managers, and unfavorable government policies.
There are many skills identified as necessary to become a successful entrepreneur. Explained below are a few main entrepreneurial skills that any entrepreneur should excel in.
Business Management skills – Entrepreneurship is all about finding an unsatisfied need of a customer and building a business to satisfy the identified need. The entrepreneur should always have the skills to manage the implemented business. This involves the business idea, starting the business, and running the business in order to achieve a profit.
Communication Skills – Communication is the key to any type of relationship. Since the businesses can be considered as a relationship between the vendor and the customer, excelling proper communication skills can help the business to provide a better understanding to the customers about what they sell as well as to obtain genuine customer feedback about the product or service.
In addition, communication helps the employees in the business venture, suppliers, manufacturers, and all the other related teams to make sure that they are on the same page about the business intention. This will expedite the process of reaching the goals and objectives of the business.
Leadership skills – The entrepreneur is the person who initiates the business idea into an action plan. This makes him the leader in the group who is most suitable to lead the team. Leadership skills are important in entrepreneurship as the leader should drive the entire team in the direction where they can achieve the goals and objectives set by the business. The leader should motivate the subordinates, help them to achieve the expectations, solve the issues, and guide the entire team.
Teamwork skills – Entrepreneurship mostly involves working as a team. The entrepreneur should consider all the subordinates as a part of the team. The targets should be divided equally among the team and the subordinates are expected to help each other in achieving the given targets.
Financial skills – One main reason for most of the businesses to fail is lacking the financial supply. This creates a direct connection between entrepreneurship and financial management. Since most of the entrepreneurial businesses are operating with profit intention, managing the finances becomes majorly important. The entrepreneur should be capable of using the available amount of money for the start of the business, manage the earnings in a manner that a profit can be earned after covering the expenses.
Strategic thinking and planning skills – According to the basic accounting concepts, businesses are continuing with the expectation of existing in the long-run. This creates a need for long-term planning for the success of the business. Entrepreneurship combined with strategic planning has the potential of growing the business. Strategic plans should have flexibility in changing according to the changing business environment and customer needs.
Creativity and innovation – The two most important factors that are connected to entrepreneurship are creativity and innovation. An entrepreneur should have the skills to present the business idea in a most creative and innovative way to the customers to attract more market share and to achieve a competitive advantage.