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7.0 The African Entrepreneur Entrepreneurial Competencies: Entrepreneurs and entrepreneurship in Africa

Written by: Journal of Development Entrepreneurship

Article Overview: Empirical studies linking education and training to entrepreneurial success have had mixed and contradictory results.

7.0 The African Entrepreneur Entrepreneurial Competencies: Entrepreneurs and entrepreneurship in Africa

(Journal of Developmental Entrepreneurship, Oct 2002 by Kiggundu, Moses N)

Empirical studies linking education and training to entrepreneurial success have had mixed and contradictory results. Keyser et al. (2000, p. 37) found that in the Zambian sample, training and work experience were not related to entrepreneurial success. They, however, found that entrepreneurs who were good at organizing and presenting ideas in a sensible and logical way were more likely to be successful than those with poor organization of knowledge. Harrison and Friedrich's (1994) Zimbabwe study found that the entrepreneurs with low education and little experience in their line of business, or those who lacked basic skills in bookkeeping and accounting were less successful. Harper and Soon (1979, p. 89), drawing on various small enterprise case studies in developing countries concluded, "The skill and initiative of the individual entrepreneur are by far the most important determinants of success or failure". Trulsson (1997) found that in Northern Tanzania, entrepreneurs were helped by university education, previous work experience, and visits abroad.

Mead (1999), drawing on the results of the GEMINI surveys, reported that completion of primary school was unrelated to enterprise growth. Neither education nor experience was significantly related to patterns of growth of employment in MSEs (McPherson, 1992). Parker (1995) however, found that Kenyan MSE owners who had completed primary education were better able to deal with economic fluctuations and lead their businesses to growth. Mead (1999) concluded that while small amounts of education appear to have made little difference to enterprise profitability, going beyond a certain threshold (e.g., primary school) is associated with substantial differences in profitability. Ramachandran and Shah (1999), using World Bank data, showed that low levels of education by black entrepreneurs in several African countries proved to be a competitive disadvantage compared to Asians and Europeans who had a better education.

One way of reconciling these apparently contradictory results is to develop the concept of entrepreneurial competency. Education, training, work experience, apprenticeships, overseas visits and other human capital development initiatives are relevant for entrepreneurial success or failure to the extent that they contribute to the development of entrepreneurial competences. By competencies we mean the total sum of the entrepreneur's requisite attributes: attitudes, values, beliefs, knowledge, skills, abilities, personality, wisdom, expertise (social, technical, managerial), mindset, and behavioral tendencies needed for successful and sustaining entrepreneurship. Therefore, studies looking at biographical variables or psychological profiles of the entrepreneurs, like those reviewed above, constitute partial attempts to get at the concept of entrepreneurial competency.

The relevant dimensions and substantive content areas of entrepreneurial competencies vary by the nature of entrepreneurial tasks and context within which they are performed. These competencies may relate to Schumpeter's (1934) constructive destruction, access to critical resources or contacts, internal management of the business, or external strategic management and networking, dealing with potential business threats or opportunities. They are dynamic and vary across time, place and stages of entrepreneurial development. They may also be specifically related to particular vocational apprenticeships (Adam, 1999). This may explain why generalized human capital development initiatives, which do not target specific entrepreneurial tasks and contexts rarely lead to sustained positive behavioral change for the entrepreneur or potential entrepreneurs. Table 1 summarizes what is known about the entrepreneur in terms of demographics, psychological factors, work behavior, and core competencies.

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Article Tags: black entrepreneurs, entrepreneur, entrepreneurial development, entrepreneurial success, entrepreneurial success, experience, primary education, work experience



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