An analysis of the personal entrepreneurial competencies of students: implications to curriculum designing of entrepreneurship program

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1 USM R & D 16(2): (2008) ISSN An analysis of the personal entrepreneurial competencies of students: implications to curriculum designing of entrepreneurship program Ernesto Laforteza Bumatay, Evangeline C Sulabo, & Oscar Ragus Institute of Community Education, College of Public Affairs University of the Philippines Los Baños, College, Laguna ecsulabo@yahoo.com Abstract A study on the personal entrepreneurial competencies of students highlighted the entrepreneurial skills, technical skills, and business management skills. The top outstanding strengths or abilities identified were human skills, tenacity, management competency, knowledge/ education, being motivated/ driven, and intellect/ wisdom as well as skills in persistence, systematic planning/ monitoring, and opportunity sensing. The proposed entrepreneurship program has the structure of economics (3 courses), finance (2 courses), marketing (3 courses), accounting (2 courses), management (4 courses), business law (1 course), information technology (3 courses), business math (2 courses) and other related courses (5 courses). Business management skills that have to be enhanced by the program comprised planning and goal setting, human relations, decision making, management, control, negotiation, finance, marketing, managing growth, accounting and venture launch. Entrepreneurial skills include inner control/ disciplined, innovative, visionary leader, persistent, change oriented and being a risk taker. Key words: business management, entrepreneurial competencies, entrepreneurship curriculum, skills Introduction Entrepreneurship is associated with innovation, risk taking, and dynamic behavior; starting and beginning a new business; a process of creating something new with value by devoting the necessary time and effort; assuming the financial, psychic, and social risks; the promotional range of behavior in managerial styles; and receiving the resulting rewards of monetary and personal satisfaction and independence (Cooper 1994) The role of entrepreneurship in the development of an economy involves more than just increasing per capita output income other than initiating and constituting change in the structure of business and society. The study of entrepreneurship has relevance today, not only because it helps entrepreneurs better fulfill their personal needs but because of the economic contribution of the new ventures. More than just increasing national income by creating new jobs, entrepreneurship acts as a positive force in economic growth by serving as the bridge between innovation and the marketplace (Ducker 1994). The study of entrepreneurship and the education of potential entrepreneurs are essential parts of any attempt to strengthen this link so essential to the society s economic well-being. An entrepreneur creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on them (Kent 1995). Competencies of entrepreneurs, if determined at an earlier stage of the educational process, may contribute to the advancement of possible venues for the development or enhancement of the entrepreneurial inclinations. This study on entrepreneurial competencies of students, in all academic disciplines will contribute to a substantial proposition for directions of entrepreneurship in the academe. As an offshot of this study, facts on entrepreneurship may cultivate the demand for applied concepts of the course. Competencies of entrepreneurs, if determined at an early stage of the educational process, may contribute to the advancement of possible venues for the development or enhancement of entrepreneurial inclinations. A study on entrepreneurial skills of undergraduate students in Los Baños explains a preparatory phase on the 127

2 significance of entrepreneurship in causing employment to students while pursuing a degree or even after graduation. In anticipating its complement with current degree or field aimed for by the student, the recognition of one s entrepreneurial competencies provide concrete groundwork for studies as future entrepreneurs. This study is also important in the light of President Gloria Macapagal-Arroyo s 10-point agenda for that includes the kindling of an entrepreneurial spirit and business opportunities through the creation of six million jobs in six years via more opportunities given to entrepreneurs, tripling of the amount of loans for lending to small and medium enterprises, and the development of one to two million hectares of land for agricultural business (Office of the Press Secretary 2004). ENTREPRENEURIAL SKILLS or COMPETENCIES Personal Entrepreneurial Skills Inner Control and Discipline Risk Taker Change Oriented Persistent Visionary Leader Achievement Drive Creativity Technical Skills Business Skills Management Skills PERSONAL EXPERIENCES Demographics Educational Background Family / Role Models Family Resources Vision Business Ventures This study will present an analytical description of the entrepreneurial skills of undergraduate students in U.P. Los Baños. The analysis covers future curricular directions for programs and courses related to entrepreneurship in the university. Menguilla (1998), as cited by Precilla and Valencia (1999), forwarded two basic competencies essential to the success of new businesses: technical competencies and business management skills. Precilla and Valencia added that technical competencies include knowledge and skills needed to create product/services needed and wanted by the customers and for which they are willing to pay appropriate prices. Meanwhile, business management skills that will help entrepreneurs to understand and manage the economics of business include people management skills, organizational skills, computer literacy, and planning skills. Conceptual framework The research framework of the study, as it is shown in Figure 1, draws up the schematization of concepts on entrepreneurship synthesized in competencies, entrepreneurial experiences, and underlining skills of undergraduate students. The undergraduate students are represented by distinctive-cognitive entrepreneurial skills accounted by their academic and non-academic related experiences. Areas of entrepreneurial skills which include personal, mental, technical, and human relations can better be substantiated by internal and external experiences of individuals. Fig 1. Framework of the study on entrepreneurial competencies of undergraduate students. Generally, this study was designed to provide essential description and analysis of the entrepreneurial competencies of undergraduate students in the university. Specifically, it aimed to: 1. Describe essential perspectives on the entrepreneurial skills of undergraduate students in the different colleges of the university; 2. Identify entrepreneurial experiences of students as well as associated strengths and weaknesses; 3. Provide primary conceptualization of entrepreneurship education and training for future curricular program development. Methodology This is a one-shot survey among students in seven colleges of the UP Los Baños, using a structured questionnaire. The study is descriptive-qualitative, exploring the entrepreneurial competencies of undergraduate students. The research included the categorization of competencies, identification of related experiences, and analysis of curricular implications. The respondents of the study were purposively sampled from students who were in their last year of enrolment in their respective colleges using a survey questionnaire in determining their entrepreneurial competencies. Results and discussion Personal traits and education The 211 studentrespondents were predominantly females, with average age of 20 years, and were either the eldest or the second eldest child in the family. They first studied at UPLB in They were enrolled under 21 programs distributed among 128

3 seven colleges. About 50% came from the College of Arts and Sciences (CAS), 20% from the College of Agriculture (CA), 16% from the College of Engineering and Agricultural Technology (CEAT), and nine percent (9%) from the College of Human Ecology CHE). The remainder was evenly split among the College of Veterinary Medicine (CVM), College of Forestry and Natural Resources (CFNR), and College of Agriculture-College of Arts and Sciences (CA CAS). Family background Over 56% of the respondents fathers were employed, self-employed (25%) or retired or deceased (10%). Most of the fathers worked as professionals or government employees. Many of the mothers were either unemployed (36%) or self-employed (15%). Of the 42% employed, majority were also professionals or government employees. Family resources Only 41% of the respondents came from families that owned or managed a business while 55% did not. The students identified 94 businesses of which more than 36% were on retail/trading/selling. Majority (75%) identified at least one relative who owned or managed a business, mainly uncles and aunts or their own parents. Usually, these businesses were owned/ managed by one or two groups of relatives. Reasons to get into business Financial reasons topped their reasons for going into business, followed by actualization or leisure. Disregarding the unspecified answers, the top businesses that they wanted to engage in the order of priority were: retail/trade/selling, food/ hospitality, services, and agricultural. The specific businesses they wanted to venture in included (in order): restaurants (food/hospitality), clothing/boutique (retail/ trading/selling), computer center/ shop/repair/ rental/sales (services), food chain/fast food (food/hospitality), grocery/ dry goods (retail/trading/selling), bar/music bar/pub house (food/hospitality), and food/food and beverage (food/ hospitality). The students perceived that businesses fail because of lack of management competency, followed by lack of financial resources, uncompetitiveness, lack of experience/ background, and lack of human skills. Personal skills: outstanding strengths or abilities The top outstanding strengths or abilities identified by the respondents were human skills, followed by tenacity, management competency, knowledge/education, being motivated/driven, and intellect/wisdom. Personal entrepreneurial competencies (PEC) There were 10 Personal Entrepreneurial Competencies (PEC) identified, namely: 1) Opportunity Sensing, 2) Persistence, 3) Commitment to Contract, 4) Demand for Quality and Efficiency, 5) Risk-Taking, 6) Goal-Setting, 7) Information Seeking, 8) Systematic Planning/Monitoring, 9) Persuasion and Networking, and 10) Self-Confidence. The students scored highest in persistence, followed by systematic planning/ monitoring, and opportunity sensing. They ranked lowest in persuasion and networking, followed by self-confidence, and then demand for quality and efficiency. In business management skills, the students scored highest in planning, followed by achievement and power, while on the technical skills needed in business venture, the students scored highest in ability to organize, followed by oral communication, and management style. On the other hand, the students scored lowest in coaching, followed by writing, and technology. On the personal entrepreneurial skills, the students scored highest in planning and goal setting, followed by human relations, and decision making. However, they scored lowest in venture launching, followed by accounting, and managing growth. They also scored highest in having inner control or being disciplined, followed by being a visionary leader. They scored lowest in being a risk-taker, followed by being change oriented. Personal entrepreneurial competencies The Personal Entrepreneurial Development Course of UP ISSI, divided the PEC s into three parts: achieving behaviors, planning and organizing behaviors, and power behavior. The personal entrepreneurial competencies of students were on the following areas: Opportunity seeking, persistence, commitment to contract, demand for quality or efficiency, risk-taking, goal setting, information seeking, systematic planning/monitoring, persuasion and networking, and self-confidence. These will have direct implications on the entrepreneurship program thrust. Personal competencies of students, according to priority, included: persistence, systematic planning/ monitoring, opportunity sensing, risk taking, information seeking, goal setting, commitment to contract, demand for quality or efficiency, self-confidence, persuasion, and networking. The business management skills that the proposed program will be develop included planning and goal setting, human relations, decision making, management, control, negotiation, finance, marketing, managing growth, accounting and venture launching. Resulting from these entrepreneurial competencies, the proposed entrepreneurship course and program will reflect the thrust of the university to inculcate entrepreneurial competencies to its students. 129

4 Conclusions and recommendations Curricular offerings in entrepreneurship Filipinos have generally and traditionally been trained or accustomed to finding employment after finishing formal education. Tough economic times, fierce competition in the job market and high unemployment rates make starting one s own business an attractive alternative to employment in terms of finding a means of livelihood. Entrepreneurship is also gaining popularity as business and political leaders realize that it is a means for economic growth in the country. With a rapidly changing business environment, managers are faced with developing entrepreneurial skills that would assist them in innovating competitive products and services, in creatively solving problems and taking advantage of opportunities, in managing risk, and in making other tough decisions. The educational system has responded to the need for entrepreneurship through the development of curricular programs geared to develop the young Filipino entrepreneur. Business programs in the Philippines In its guidelines for programs in Business and Management Education, the Commission on Higher Education (CHED) identified several business-related degree programs ranging from Accountancy to Business Administration. On the basis of the findings of the study and the rapidly growing number of people wanting to establish their own businesses and the greater demand for managers to develop entrepreneurial skills form a rationale for offering a BS degree in entrepreneurship. Aside from the basic courses on economics, management, accounting, business law and business math, proposed core courses for the Entrepreneurship Curriculum are on Financial Management, Advertising and Promotion, E-Business, Management Information Systems, System Analysis and Design, and more courses in Marketing including International Marketing, Table 1 and Table 1a. While some businesses are run solely by the proprietor, others require hired employees. As such, the BSE students should also take a course in Human Resource Management, Research Methods, and Feasibility Study. Table 1. The proposed BS Entrepreneurship curriculum. BS Entrepreneurship General Psychology (3) Economics General Economics (3) Inter. Macro-Econ Theory (3) Inter. Micro-Econ Theory (3) Finance Financial Management I (3) Financial Management II Marketing Intro to Marketing Management (3) Advertising and Promotion (3) International Marketing (3) Accounting Principles of Accounting (3) Managerial Accounting (3) Management Dynamics and Concepts of Management (3) Production Management (3) Business Policy (3) Intro to Agribus. Mgt. (3) Business Law Business Law (3) Information Technology E-Business Management Information Systems Systems Analysis and Design Business Math Business Statistics (3) Quant. Business Analysis (3) Other Business Courses Intro to Human Relations and Behavior (3) Organization of Small Business Research Methodologies (3) Feasibility Study (6) Human Resource Management (3) Table 1a. Proposed Courses for the BS in Entrepreneurship Program by Skill/Personal Entrepreneurship Competency (PEC). Skill (PEC) Financial Financial Management I Management II Personal Entrepreneurial Opportunity sensing Opportunity sensing Competency Persistence Persistence Risk taking Risk taking Goal setting Goal setting Systematic planning/ monitoring Systematic planning/monitoring 130

5 Table 1a cont... Skill (PEC) Financial Financial Management I Management II Technical Skill Ability to organize Ability to organize Being a team player Being a team player Listening Listening Monitoring the environment Monitoring the environment Oral communication Oral communication Business Management Skill Accounting Accounting Control Control Decision making Decision making Finance Finance Managing growth Managing growth Planning and goal setting Planning and goal setting Personal Achievement drive Achievement drive Entrepreneurial Change oriented Change oriented Skill Inner control/disciplined Inner control/disciplined Persistent Persistent Risk taker Risk taker Task oriented Task oriented Table 1a. Continuation. Skill Advertising International Psychology and Promotion Marketing Personal Entrepreneurial Competency Goal setting Information seeking Opportunity sensing Self-confidence Systematic planning/ monitoring Technical Skill Ability to organize Monitoring the Coaching Information seeking environment Interpersonal Interpersonal Oral communication Listening Listening Management style Monitoring the environment Writing Oral communication Business Management Decision-making Decision-making Human relations Skill Human relations Managing growth Management Marketing Marketing Negotiation Planning and goal setting Personal Achievement drive Change oriented Achievement drive Entrepreneurial Skill Creative and resourceful Visionary leader Inner control/ disciplined 131

6 Table 1a. Continuation. Skill (PEC) E-Business Management Systems Analysis Information Systems and Design Personal Entrepreneurial Demand for quality or Demand for quality or Demand for quality or Competency efficiency efficiency efficiency Information seeking Information seeking Information seeking Opportunity sensing Persuasion and networking Technical Skill Information seeking Ability to organize Ability to organize Monitoring the environment Analytical Analytical Network building Information seeking Information seeking Technical business Technical business Interpersonal management management Listening Technology Technology Oral communication Technical business management Technology Writing Business Management Skill Marketing Business management Human relations Venture launch Decision making Managing growth Personal Entrepreneurial Skill Change oriented Visionary leader Task oriented Creative and resourceful Visionary leader Table 1a. Continuation. Table 1a continuation Skill (PEC) Feasibility Study Human Resource Management Personal Entrepreneurial Competency Commitment to contract Commitment to contract Goal setting Demand for quality or efficiency Information seeking Persuasion and networking Opportunity sensing Persuasion and networking Risk taking Self-confidence Systematic planning/ monitoring Technical Skill Ability to organize Ability to organize Analytical Being a team player Information seeking Coaching Monitoring the environment Interpersonal Network building Listening Oral communication Network building Technical business management Oral communication Technology Writing 132

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