Download Defining the entrepreneur

Erasmus + project
ENTREPRENEURIAL COMPETENCIES FOR SCHOOL LEADERSHIP TEAM
ASE Bucuresti, 4-6 Martie 2015
Key issues:
Competences: a combination of knowledge, skills and attitudes appropriate to the context.
Key competences are those which all individuals need for personal fulfillment and development,
active citizenship, social inclusion and employment.
The Reference Framework sets out eight key competences: 1) Communication in the mother
tongue; 2) Communication in foreign languages; 3) Mathematical competence and basic
competences in science and technology; 4) Digital competence; 5) Learning to learn; 6) Social
and civic competences; 7) Sense of initiative and entrepreneurship; 8) Cultural awareness and
expression (Directorate-General for Education and Culture, 2007).
Promoting entrepreneurship in Europe has been a core objective of the European Union ever
since the Lisbon European Council decided in March 2000 to improve the EU’s performance in
the areas of employment, economic reform and social cohesion.
The European Commission began the debate by publishing, at the start of 2003, a Green Paper
on “Entrepreneurship in Europe”.
The European Commission has incorporated the promotion of entrepreneurship into its Europe
2020 strategy, which recognizes entrepreneurship and self-employment as one of the key
enablers of smart, sustainable and inclusive growth.
The European Social Fund is working to support entrepreneurs through its financial and business
support services.
The development of entrepreneurship has important benefits, both economically and socially.
Entrepreneurship is not only a driving force for job creation, competitiveness and growth; it also
contributes to personal fulfillment and the achievement of social objectives.
The EU considers that it has a duty to encourage entrepreneurial initiatives and unlock the
growth potential of its businesses and citizens.
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The European Commission’s Directorate-General “Enterprise and Industry” has been studying
the development of entrepreneurship in EU Member States for over a decade.
The 2012 edition of the survey – Flash Eurobarometer No 354 “Entrepreneurship in the EU and
beyond” – covers the 27 countries currently comprising the EU as well as 13 countries from
outside the EU. Several of these non-EU countries are included here for the first time, namely
Brazil, Israel, India and Russia.
Entrepreneurship 2020 Action Plan
The Entrepreneurship 2020 Action Plan is built on three main pillars:
1. Entrepreneurial education and training
2. Creation of an environment where entrepreneurs can flourish and grow
3. Developing role models and reaching out to specific groups whose entrepreneurial potential is
not being tapped to its fullest extent or who are not reached by traditional outreach for business
support.
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Defining the entrepreneur:
An entrepreneur is someone who perceives an opportunity and creates an organization to
pursue it. The entrepreneurial process includes all the functions, activities, and actions that are
part of perceiving opportunities and creating organizations to pursue them (Bygrave, Zacharakis,
2010).
Table 1: Concepts about entrepreneur
Nr.
crt
Definitions
1
A person that takes risks and uncertainties ( Cantillon, Thunen, Mangoldt, Mill,
Hawley, Knight, Mises, Cole, Shackle).
2
A capital supplier (Smith, Turgot, Ricardo, Bohm-Bawerk, Edgeworth, Pigou,
Mises).
3
An innovator (Bandeau, Bentham, Thunen, Schomoller, Sombart, Weber,
Schumpeter).
4
A decision maker (Cantillon, Menger, Marshall, Wieser, Walker, Deynes, Mises,
Shackle, Cole, Kirzner, Schultz).
5
An industrial leader (Say, Walker, Marshall, Wieser, Sombart, Weber, Schumpeter).
6
A manager or a supervizor (Say, Mill, Marshall, Menger).
7
An organizator or coordinator of economic resources (Wieser, Schomoller,
Sombart, Weber, Clark, Schumpeter
8
A company owner (Wieser, Pigou).
9
An user of production factors (Walker, Keynes, Wieser)
10
A contractant (Bertham).
11
An umpire (Cantillon, Kirzner)
12
A person who allocates resources for alternative use (Kirznmer, Scultz, Herbert,
Kink)
13
A person who imagine, develop and apply a vision (Filion)
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EU definition of SME
1. number of employees and
2. either turnover or balance sheet total.
Table 2: EU definition of SME
Company
category
Balance
Employees Turnover or sheet
total
Medium-sized < 250
≤ € 50 m
≤ € 43 m
Small
< 50
≤ € 10 m
≤ € 10 m
Micro
< 10
≤€2m
≤€2m
Sources of entrepreneurial revolution are triggered by changes in:

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Economy
Technology
Social field
Psychological profiles
Politics
Globalization
What does it take to work
•
Basic intelligence
•
Education and training
•
Knowledge and skills of their industry
•
Experience
•
Attitudes and values
•
Interests
•
Physical energy and health
4
Company’s
size
Functionality of
the economic
system
Field of activity
Internal
Variables
External
Economic
and national
culture
Entrepreneur’s
personality
Market
Staff and
organizational
culture
Stakeholders’
characteristics and
involvement
Fig. 1 Variables that determine the entrepreneur’s evolution
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Business opportunities
recognition
Assessment of own
entrepreneurial
performances
Action and management
Reassessment of the
need for change
Fig. 2 Entrepreneurial process
(adapted from Cunningham and Lischeron)
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Entrepreneur
1
12
2
Beneficiaries,
distributors
11
3
Bank
SME’s associations,
chambers of commerce
etc.
10
4
Suppliers
Local administration
9
5
Training & consultancy
providers
8
6
Investors
de risc
Local community
SME’s
Stakeholders
Entrepreneur’s family
Company’s managers
7
Employees
Fig. 3 The main stakeholders for SME’s
(Source: Nicolescu, O., Managementul IMM-urilor, Ed. Economica, 2001)
7
Low degree
of formality
Personalized
Simplicity
Characteristics
Short and
medium
term
oriented
Focused on
market
niche
Fig. 4 Characteristics of the entrepreneurial strategy
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Table 3: Types of entrepreneurial strategies
Nr.
crt.
Strategies
Focused on
objectives
Horizon
Situational
feed-back
Proactivity
Overlapping the
planning and
acting
0
1
2
3
4
5
6
1
Complete
Strong
Long
Low
High
Low
2
Critical
Point
Strong
Medium
Medium
High
Medium
3
Oportunistic Low
Low
High
High
High
4
Reactive
Low
Low
High
Low
No planning
5
Routine
Low
Low
Low
Low
No planning
(source: M. Frese, M. Van Gelderen, M. Ombach, How to Plan as Small Scale Business Owner:
Psychological Process Characteristics of Action Strategies and Success, in Journal of Small
Business Management, nr. 2, 2000)
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Experience
Physical &
Health
Fig. 5 Personal factors that affect the management performance
(Source: CIPD Survey of Performance management, 2008)
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COMPETENCIES that are characteristics to successful entrepreneurs (categorised according to
the four key areas of Entrepreneurial Competence):
Strategic Thinking & Visioning


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
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

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able to build up and implement a vision
know the industry and the company’s market position
know the tendencies in their specific market (risks and opportunities)
understand the strategic issues of the business model
understand the value chain of their business
identify the needs and expectations of their key stakeholders
know and apply business strategic tools
able to apply scenario techniques for different commercial & financial situations
know how to design and price products/services in relation to competitors
demonstrate calculated risk taking
develop networks, clusters
aware of globalization process
innovative with a “glocal” (think global, act local) orientation
ability to foster the sustainability of the company
Team Building, Personnel Management & Development



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understand the company’s management system
have knowledge of different and effective organisational structures
know the basic legal issues related to HRM
perform specific activities to HRM
able to motivate the human resources to be creative and participative
practice management techniques “by walking around”
have team leading skills
build up team spirit
create high energy within the company’s personnel
act as coach/mentor for HR development
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Communication & Negotiation Skills

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have the ability to negotiate with important stakeholders (investors, customers, suppliers)
have effective communication skills inside and outside organization
have problem solving abilities
have knowledge of foreign languages
have good communication with customers from different cultures
have knowledge of EDP (electronic data processing)
know to extensively use the Internet and social media (like Facebook, Twitter) to interact
and communicate with customers and co-workers
Financial Resources Mobilization & Optimization

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know to attract capital
capable of understanding and analysing the cost/benefit of the company
know how to control the liquidity of the company
know supporting financial institutions or funding programs
have basic knowledge about tax law implications
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Table 4: Comparition entrepreneurs - managers
Nr.
crt.
Characteristics
Entrepreneurs
Managers
1
Strategic emphasize
On available opportunities
On resources controlling
2
Ways for
approaching the
opportunities
In short term
In long term
3
Resources allocation
In short term and multiphases
Long term and one phase
4
Resources Control
From others, especially by
rent and borrowing
Owns and by buying
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Table 5: Managerial characteristics of the entrepreneur-manager
Nr.
Characteristics
crt.
1
Decisional and actional independence
2
Superior control competencies
3
Limited resources
4
Dependency to the company’s environment
5
Closer relationships with the stakeholders
6
Higher potential to own certain activities
7
Higher responsibility
8
Higher autonomy
9
Awareness of economic-management interdependencies
10
More prone to change
11
Use of informal communication
12
Taking higher risks
13
Speed of reaction
14
Developping the networking
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Skills for the function of headmaster / deputy director
(OMEC 5660, annex 7):
I. Communication and relational skills

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Selecting appropriate ways and means of communication in order to improve managerial
approach
Adapting to different situations to solve educational problems
Resolving conflict situations, following investigation, mediation and negotiation, to
ensure a climate of trust and responsibility
II. Psychosocial skills


Valorizing individual and group particularities of interlocutors, in order to achieve
effective communication
Adopting an adequate behavior in relations with interlocutors in order to create a climate
of collaboration
III. ICT skills

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Synthesizing information in order to create a useful database for management
Valorization of database information for decision-making in accordance with the specific
realities of the educational environment
Using computerized techniques and information technology for efficiency and quality
assurance
IV. Management and coordination skills
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Design activities to achieve a quality educational approach
Organizing activities to achieve the objectives of the management plan
Coordinating the educational process to achieve academic progress
Managing taking responsibility of decision-making and delegating responsibilities within
the working groups in the school
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V. Assessment skills
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Setting objectives and evaluation criteria, respecting the principles of total quality
management
Using specific evaluation techniques and tools
Evaluating in order to identify staff training needs
VI. Management skills and resources management
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Managing financial and material resources according to priorities of the managerial plan,
in compliance with the general and specific legislation
Selecting human resources according to the specific of the school
VII. Institutional development skills
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Analyzing educational context in which the institution is operating to design an
appropriate strategy for institutional development
Designing institutional development strategy
Promoting national and European values in education through programs and partnerships
VIII. Self-management skills

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Self-assessment of the activity in order to improve quality management
Route selection for career development in accordance with personal aspirations and the
institution goals
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APPLICATION FIELDS
1. work climate
2. counseling and office hours
3. relationship with the community and partner institutions
4. communication with students
5. professional deontology
6. management activity
7. educational process
8. management meetings
9. educational process
10. initial and continuing staff training
11. financial and material resources
12. human resources
13. institutional framework
14. projects, programs and partnerships
15. career management
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Potential competencies to be developed for school leaders
C1 Analysis of the educational needs of the local community in which the school is operating in
consultation with stakeholders (students , parents, school mediator or equivalent, representatives
of business - economic) and design / business strategic planning (strategic direction,
management plan , institutional development plan, operational plan).
C2 Internal human resource potential analysis, design and implementation of a system drive,
motivation for engaging in appropriate educational coaches.
C3 Analysis of legislative requirements for educational activities (social, environmental, risk,
etc.) and implementation of specific standards for their work organization and harmonization
with international standards.
C4 Official communication skills and communication applied skills to different categories of
people who interacting school (children, parents, vulnerable groups, minorities)
C5 Skills design, implementation system performance indicators for entrepreneurship education,
taking account of human resources management, attracting financial resources and financial
reporting using appropriate community support and its members).
C6 Competences related to ethics and social responsibility, promoting EU horizontal objectives:
equality, environmental protection, promotion of ICT.
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