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SUCCESS

FACTORS
of
Entrepreneurs
By Francis A. Balagtas
Key Success
Factors

Skill
Personal Managemen External
Expertise &
Qualities t Skills Factors
Aptitude
Know your…..

Strengths
•Positively applied

Weaknesses
•personal development

•attending courses

•appointing staff and/or experts


to compensate where needed
Key Success
Factors

Skill
Personal Qualities Management Skills External
Expertise &
Factors
Aptitude
1. The Skills, Expertise, Aptitudes (SEA) of an
Entrepreneur

Skills
- refers to manual work and can be learned
e.g. an electrician, a hairdresser or cabinet-
Expertis
maker
e
- is based on knowledge you acquired by
studying and/or experience. Experts in the
field e.g. taxation, computer systems and
Aptitude
- Each person is born with aptitudes and
talents. Some are artistic, some have talent
for communicating and others have flair for
Technical thinking (A) Draws furniture

Knowledge of antiques (E) Restores antique furniture

Design and installs kitchens


Cabinet-maker (S) and built-in cupboards
Artistic (A) Pr d u s d/ r
s lls rt

Experience in jewelry (E)


design Designs jewelry

Apprentice in jewelry (S) Manufactures jewelry


manufacture
2. The important personal characteristics of
entrepreneurs

a. Perseverance

b. Commitment to the business

c. Involvement in the business

d. Willingness to take risks

e. Sound human relations

f. Creativity and innovative ability

g. Positive attitude and approach


a. Perseverance

“They do not lose heart when they make


mistakes or fail but they have intense
determination to complete a task.”
b. Commitment to the business
•using their own money to
establish the business.

•working long hours in


order to succeed

•accepting a lower
standard of living and
possibly earning little or
no income until his bus.
becomes successful.
c. Involvement in the business

“They are personally


involved. They are
aware of everything
that is happening on
his business.”
d. Willingness to take risks

“They take calculated


risks. It should not be too
great nor too low.”
e. Sound human relations

“They realize that they cannot be successful in


isolation but in long-term relationships.”
f. Creativity and innovative ability

“Effective entrepreneurs
take the initiative to solve
problems in a unique
manner.”
g. Positive attitude and approach

“They are able to


identify opportunities
even in adverse and
difficult situations.”
3. The important functional management skills
of entrepreneurs

General
Manageme
nt
External Functions Production
Relations /
Functions Operationa
l
Functions

Admin Business Financial


Functions Functions Functions

Marketing Purchasing
Functions Functions
Human
Resources
Functions
Important aspects of management skills:
a. Planning a business before it is established

b. General management skills and the use of advisers

c. Customer service

d. Knowledge of competitors

e. Market orientation

f. The importance of quality products or services

g. Accounting for your own purposes

h. Insight into expenditure, income, profit and loss

i. The ability to use income wisely


a. Planning a business before it is established

• drawing up a business plan General


Manageme
nt
- identify problems early on Functions

- consider all important factors


concerning intended business Production
Marketing /
Functions Operationa
- take decisions for the future l
Functions
- opportunity for testing ideas
Financial
Functions
b. General management skills and the use of
advisers
General Human
Manageme Resources
• know what is needed for nt Functions
success Functions

• appointing/hiring a trained staff /


expert
c. Customer service Admin
Functions

•after sales service

•attention to details Marketing


Functions

•serving refreshments when


client visits

•attractive premises

•user-friendliness
d. Knowledge of competitors
External
Relations Marketing
• who? Functions Functions

• how many?

• size?of operations?

• which segment of market they


control?

• your edge?
e. Market orientation
Marketing
•who is your target market? Functions

•developed products and


services to satisfy the clients
requirements

•opposite of product-oriented
f. The importance of quality products or services
• Quality = Costs
Marketing Purchasing
Functions Functions
• Quality ≠ Expensive

• Cost must be kept check w/o


affecting the quality of goods /
services.

• Quality = Marketing
g. Accounting for your own purposes
• able to understand their own Admin Financial
accounting system Functions Functions

h. Insight into expenditure, income, profit and loss


• distinguish between income and profit

i. The ability to use income wisely


• exercises financial discipline
• don’t waste money on unnecessary personal
luxuries and status symbols
4. Dealing with external factors that affect
entrepreneurship

Fluctuating interest
rates & customer
spending power
Exploit technological
developments
Identify opportunities
for growth in market
Opportunities after
political adjustments
and events
Use of alternative raw
materials
Expand and establish
business in another
country
Video Presentation
Thank you!

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