Entrepreneurial Competencies of Women Entrepreneurs of Micro and Small Enterprises

Käthe Schneider

doi:10.11648/j.sjedu.20170506.14

Abstract

Entrepreneurial competencies are critical for entrepreneurial success. Despite a growing body of literature in the field of entrepreneurial competencies, there is still considerable uncertainty concerning entrepreneurial competencies of female entrepreneurs. The objective of the study is therefore to empirically analyze the entrepreneurial competencies of female entrepreneurs. Based on a study of 306 women entrepreneurs of Micro and Small Enterprises (200 women entrepreneurs from Germany and 106 women entrepreneurs from Ireland), this analysis finds that entrepreneurial competencies as a higher order latent construct have a major impact on entrepreneurial success. Entrepreneurial competencies of women entrepreneurs in Germany and Ireland can be operationalized by a set of six first-order factors, including functional task related managerial skills, entrepreneurial characteristic adaptations of self-efficacy and orientations of competition, risk-taking and innovation, and the founder and innovator identity. The theoretical construct of entrepreneurial performance, which consists of the dimensions of economic, individual and societal performance, is expanded with the dimensions of performance quality, customer satisfaction and productivity. The practical implication of the study is that not only task related skills, but also distal personality related characteristic adaptations and identity should be developed in entrepreneurial learning programs targeted at women entrepreneurs who start small businesses. Future studies need to isolate the influence of context from the identified competencies.

Highlights

Introduction and Problem StatementScientific interest in the identification of entrepreneurial competencies has increased in recent years [13, 33]
The study focuses on micro- (< 10 employees) and small enterprises (SE) (< 50 employees) which are assumed to be more innovative than larger companies
The results reveal that the factor of entrepreneurial competencies is a higher order latent construct which can be operationalized by a set of six first order factors, including functional managerial skills, entrepreneurial characteristic adaptations of self-efficacy and of orientations of competition, risk-taking and innovation, and the founder and innovator identity

Summary

Introduction

Introduction and Problem StatementScientific interest in the identification of entrepreneurial competencies has increased in recent years [13, 33]. Thereby the concept of sustainability receives a key function, since it should enduringly contribute to economic, cultural, social as well as ecological improvements and to entrepreneurial success. Entrepreneurial success, which contributes to maintaining present and creating new jobs, and testifies to competence in facing the demands of societal and technological change, is determined by numerous factors, such as, e.g., socio-cultural and economic factors, and by education and training [34]. An understanding of the personal factors that explain entrepreneurial performance and that can be influenced by learning is of interest for research on further education. Total Early Entrepreneurial Activity rate (TEA) is a key indicator of the level of new enterprise creation and includes persons in the process of starting and running a new business before the background of the established business cycle (three-and-a-half years). TEA rates for women in innovation-driven European economies are, with 5% of the adult population, lower than, for example, in developing regions of Asia (13%) or the United States (10%) [20]

Objectives

Methods

Results

Conclusion