Success Factors

SUCCESS FACTORSof

EntrepreneursBy Francis A. Balagtas

Key Success Factors

SkillExpertise &

Aptitude

Personal Qualities

Management Skills

ExternalFactors

Know your…..

Strengths

Weaknesses

• Positively applied

• personal development

• attending courses

• appointing staff and/or experts to compensate where needed

Key Success Factors

SkillExpertise &

Aptitude

Personal Qualities

Management Skills

ExternalFactors

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-maker

Expertise - is based on knowledge you acquired by studying and/or experience. Experts in the field e.g. taxation, computer systems and study techniques.

Aptitude - Each person is born with aptitudes and talents. Some are artistic, some have talent for communicating and others have flair for figures.

Skills, Expertise or Aptitude Types of Enterprise

Technical thinking

Knowledge of antiques

Cabinet-maker

+

+

Draws furniture

Restores antique furniture

Design and installs kitchens and built-in cupboards

(A)

(E)

(S)

Skills, Expertise or Aptitude Types of Enterprise

Artistic

Experience in jewelry design

Apprentice in jewelry manufacture

+

+

Produces and/or sells art

Designs jewelry

Manufactures jewelry

(A)

(E)

(S)

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.”

BusinessFunctions

General Management

Functions

Human ResourcesFunctions

AdminFunctions

External RelationsFunctions

Production /OperationalFunctions

Financial Functions

PurchasingFunctions

MarketingFunctions

3. The important functional management skills of entrepreneurs

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

General Management

Functions

- identify problems early on

• drawing up a business plan

- consider all important factors concerning intended business

- take decisions for the future

- opportunity for testing ideas

MarketingFunctions

Production /OperationalFunctions

Financial Functions

b. General management skills and the use of advisers

General Management

Functions

• know what is needed for success

• appointing/hiring a trained staff /

expert

Human ResourcesFunctions

c. Customer service AdminFunctions

MarketingFunctions

• after sales service

• attention to details

• serving refreshments when client visits

• attractive premises

• user-friendliness

d. Knowledge of competitorsMarketingFunctions

• who?

• how many?

• size? of operations?

• which segment of market they control?

• your edge?

External RelationsFunctions

e. Market orientationMarketingFunctions

• who is your target market?

• opposite of product-oriented

• developed products and services to satisfy the clients requirements

f. The importance of quality products or services

PurchasingFunctions

MarketingFunctions

• Quality = Costs

• Quality ≠ Expensive

• Cost must be kept check w/o affecting the quality of goods / services.

• Quality = Marketing

g. Accounting for your own purposes

AdminFunctions

Financial Functions

• able to understand their own accounting system

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

Economic conditions

Technological changes

Social and cultural forces

Political and legislative variables

Physical variables

International forces

Fluctuating interest rates & customer spending power

Exploit technological developments

Identify opportunities for growth in market

Opportunities after political adjustments and eventsUse of alternative raw materialsExpand and establish business in another country

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