Chapter 4 Appraising yourself for an entrepreneurial career

Introduction
How does a successful entrepreneur behave? You must be asking yourself whether
you have these characteristics, and if so, to what extent. These are good questions
to answer before you actually go into business. You will be given tools for examining
yourself in terms of a possible entrepreneurial career. These tools should help you
identify your strengths and weaknesses.
Objectives

Identify important characteristics or entrepreneurial competencies

which you have to develop or strengthen.
Enumerate guidelines that are important in entrepreneurship.
Identify the tools and behavior associated with successful
entrepreneurship.

Assessing your Personal Entrepreneurial Competencies

The questionnaire below measures an individuals weak and strong
personal entrepreneurial attributes. Would you like to find out how you
rate?

PECs Self-Rating Questionnaire

Instructions:
1. This questionnaire consists of 55 brief statements. Read each
statement and decide how well it describes you. Be honest about
yourself. Remember, no one does everything very well.
2. Select one of the numbers to indicate how well the statement
describe you:
5= Always
4= Usually
3= Sometimes
2= Rarely
1= Never

3. Write the number you selected on the line to the right of each
statement. Here is an example:
I remain calm in stressful situations. = 2
The person who responded to the item above
wrote 2 indicating that the statement described him very little.
4. Some statement may be similar but no two statements are exactly
alike.
5. Please answer all questions.

If you are ready, you may begin.

1. I look for things that need to be done.
2. When faced with a difficult problem, I spend a lot of time trying to
find a solution.
3. I complete my work on time.
4. It bothers me when things are not done very well.
5. I prefer situations in which I can control the outcomes as much as
possible.
6. I like to think about the future.
7. When starting a new task or project, I gather a great deal of
information before going ahead.
8. I plan a large project by breaking it down into smaller task.
9. I get others to support my recommendations.
10.
I feel confident that I will succeed at whatever I try to do.
11.
No matter whom I am talking to, Im a good listener.
12.
I do things that need to be done before being asked to by
others.
13.
I try several times to get people to do what I would like them
to do.
14.
I keep the promises I make.
15.
My own work is better than that of other people I work with.
16.
I dont try something new without making sure I will succeed.
17.
It is a waste of time to worry about what to do with your life.
18.
I seek the advice of people who know a lot about the tasks I
am working on.
19.
I think about the advantages and disadvantages or different
ways of accomplishing things.
20.
I do not spend much time thinking how to influence others.
21.
I change my mind if others strongly disagree with me.
22.
I feel resentful when I do not get my way.
23.
I like challenges and new opportunities.
24.
When something gets in the way of what I am trying to do, I
keep on trying to accomplish what I want.
25.
I am happy to do someone elses work, and if necessary, to get
the job done on time.
26.
It bothers me when my time is wasted.

27.
I weigh my chances of succeeding or failing before I decide to
do something.
28.
The more specific I can be about what I want out of life, the
more chance I have to succeed.
29.
I take action without wasting time gathering information.
30.
I try action without wasting time gathering information.
31.
I get information people to help me accomplish my goals.
32.
When trying something difficult or challenging, I feel confident
that I will succeed.
33.
In the past, I have had failures.
34.
I prefer activities that I know well and with which I am
comfortable.
35.
When faced with a major difficulty, I quickly go on other things.
36.
When I am doing a job for someone, I make a special effort to
make sure that person is happy with my work.
37.
I am never entirely happy with the way in which things are
done; I always think there must be a better way.
38.
I do things that are risky.
39.
I have a very clear plan for my life.
40.
When working on a project for someone, I ask many questions
to be sure I understand what that person wants.
41.
I deal with problems as they arise, rather than spend time
trying to anticipate them.
42.
In order to reach my goals, I think of solutions that benefit
everyone involved in the problem.
43.
I do very good work.
44.
There have been occasions when I took advantage of someone.
45.
I try things that are very new and different from what I have
done before.
46.
I try several ways to overcome things that get in the way of
reaching my goals.
47.
My family and personal life are more important to me than
work deadlines I set for myself.
48.
I find ways to complete tasks faster at work and at home.
49.
I do things that other consider risky.
50.
I am concerned about my meeting my weekly goals as I am for
my yearly goals.
51.
I go to several sources for information to help me with my
tasks and projects.
52.
If one approach to a problem does not work, I think of another
approach.
53.
I am able to get people who have strong opinions or ideas to
change their minds.
54.
I stick with my decisions even if others disagree strongly with
me.
55.
When I dont know something, I do not mind admitting it.

HOW TO SCORE
Now, let us see how well you performed in the PECs Self-Rating
Questionnaire.
Using the table below, do the following:
a. Enter the ratings from the completed questionnaire on the line
above the item numbers in parentheses.
b. Do the addition and subtraction indicated in each row to compute
each PEC score. Note that the item numbers in the columns are
consecutive. Item No.2 below No. 1 and so on.
c. Add all the PEC scores to get your total raw scores. (For now,
disregard the last column on Correction Factor. You will have a
chance to work on it later.)

Ratings of statements
PEC
---+
---+
---+ ---_____
Opportunity Seeker
(1)
(12)
(23)
(34)
---+
---+
---+ ---_____
Persistence
(2)
(13)
(24)
(35)
---+
---+
---+ ---_____ Commitment to work contract
(3)
(14)
(25)
(36)
---+
---+
---+ ---_____ Demand for quality/efficiency
(4)
(15)
(26)
(37)
---+
---+
---+ ---_____
Risk taking
(5)
(16)
(27)
(38)
---+
---+
---+ ---_____
Goal setting
(6)
(17)
(28)
(39)
---+
---+
---+ ---_____ Information Seeking
(7)
(18)
(29)
(40)
---+
---+
---+ ---_____ Systematic planning/monitoring
(19)
(41)
Now that(8)
you have completed
your(30)
rating table,
---+
---+
---+ ---step.
_____ Persuasion and networking

Score
+

-----

+6 =

(45)
-----

+6 =

(46)
-----

+6 =

(47)
-----

+6 =

(48)
-----

+6 =

(49)
-----

+6 =

(50)
-----

+6 =

(51)
-----

+6 =

(52) now go to the next

you may
+
----+6 =

1. Get your score by subtracting the correction factor from your total score.
The correction factor is used to determine whether or not a person tries
to present a very favorable image of her. If the total score on this factor
is 20 or greater, then the total scores on PECs must be corrected to
provide a more accurate assessment of the strength of the PEC scores for
that individual. Follow the steps below.
A. Go to the last column of the ratings table. Total your scores in items
11, 22, 33, 44, and 55. The sum you will get is the correction factor
score.
B. Now that you have the correction factor score, use the following guide
in figuring how to subtract from your raw score. Encircle or highlight
the numbers that correspond to your score.
If the correction factor score is:
24 or 25
22 or 23
20 or 32
19 or less
Subtract the following number from each PEC score:
7
5
3
0
2. Now, you can correction factor scores in each PEC. Use the following table
PEC
Original Score
Correction
while referring to the original rating table.
Number Corrected Total
Opportunity seeking
- ------------------Persistence
- -------------------

--------------

--------------

-------------------

-------------------

Commitment to the work contract

- -------------------

--------------

-------------------

Demand for quality and efficiency

- -------------------

--------------

-------------------

Risk taking
------------------Goal Setting
- -------------------

--------------

--------------

- -------------------------------------

3. Get your PEC profile by transferring the corrected PEC score to the profile
sheet.
a. Mark an X at the appropriate point on the horizontal line for each
PEC.
If the score for Opportunity Seeking is 17, it will appear as follows:
Opportunity Seeking: ____: ____: _____: _____:
b. Draw a heavy vertical line connecting the Xs for each PEC and you
have constructed your PEC profile.

PEC PROFILE SHEET

Here is the profile chart to use (For an example of an accomplished profile
chart, see the sample given on the next page).

Opportunity Seeking
Persistence

Commitment to the work contract

Demand for quality and efficiency
Risk Taking
Goal setting
Information seeking
Systematic planning and monitoring
Persuasion and networking
Self confidence

Developing yourself for entrepreneurship

A. Be creative
To be creative is to generate ideas and images in your head
in order to come up with solutions and alternative solutions to
problems. Creativity involves moving around ideas, splitting them,
combining them with other ideas; thus arriving at new ways of doing
things.
Ordinary people simply take things as they are. Creative
people look at things as they are. Creative people look at things and
images and what else they could be. For example, in your creative
moments, try asking one or more of the following questions about
anything you have in mind:
Is there a way to do it more easily?
- More quickly?
- More pleasantly?
- More safely?
- More healthy?
- More comfortably?
- More cleanly and neatly?
- More sure?
- More cheap?
- More attractively?
- More smartly?
Can it be made

- more useful, that is, multi-purpose?

- More adaptable to other uses?

Can it value be enhanced?
Can it be combined with some other existing tool or device?
Can it be more disposable or portable?

Can its distribution methods be improved?

Can its package be improved?
Can its package be improved?
Remember that creativity is within you; it is within all of us. We use
it all the time. It is free. It can work for us, regardless of what we are
doing- we can exercise creativity.
B. Actively Seek Opportunities
A successful entrepreneur actively seeks opportunities. He
looks at a situation and thinks, What is in here that can be turned
into a business, or if he is already in business, he asks himself,
What is in that will be good for my business or will improve it?
Opportunity-seeking is actively going after ideas which can be
turned into opportunities.
If you will go into business, opportunity-seeking is very important.
It will help you in many ways:
If you actively seek opportunities, you will find customers or
markets where other people find one.
If you actively seek opportunities, you will find new uses for
old products, including waste products.
If you actively seek opportunities, you will find new ways of
doing things.
If you actively seek opportunities, you will find new products
for old markets or customers.
C. Take Moderate Risks
- The successful entrepreneur take risks, but
before doing so, he is able to recognize, assess,
and minimize these risks, This is known as
calculating, moderating, or controlling the risks.
In business, calculating the risk is checking. If
you will make or lose money in the process of
doing business.
- Achievers are moderate risk-takers. High risks
are not preferred because the chances of failure
are great. On the other hand, lower-risk
situations are also shunned because they are not
challenging enough.
What must you do to be a moderate risk-taker?
Here are some suggestions:
1. Assess the situation carefully.
2. Find out if your actions will have negative
side-effects. A moderate risk-taker must be
prepared to cope with these possibilities.

3. Ask for advice from knowledgeable people. A

high risk-taker may think that he can do
business without anyones help. A moderate
risk-taker will get all the advice and
information he can get to ensure that he
succeed.
4. Plan for contingencies. Success in risk-taking
is to be well-prepared for all eventualities.
D. Practice Persistence
Trying and trying again until you succeed is what persistence is
all about. Persistence is also trying to do something even if other
people say that are likely to fail. It means not being afraid of hard
work. It also means not being afraid to fail because you can try
again.
Ask any successful entrepreneurs whether they succeeded
right off the first time they tried to start business. Chances are they
will say that their first few attempts failed, but they refused to be
discouraged. You might also experience initial failure when you
decide to be an entrepreneur. If you do, please remember that
persistence breeds success.
If you feel that being persistent is difficult, you must realize
these three things:
1. Do not give in quickly when someone disagrees with you. If you
are sure of your stand, do not give in to what other people say
without thinking about it. This is a test of persistence. If you try,
you might even have a chance to turn things around and make
the person see your point of view and agree with you. If you
persist in doing the right thing, the other person will respect you.
2. If you get angry at someone who stubbornly disagrees with you,
you persistence will wear off quickly because you will be
concentrating on your anger. On the other hand, if you stay cool
and composed, you will persuasive, convincing, and credible.
3. Face the opposition squarely and openly. Avoid behind the back
tactics. Dont criticize or badmouth the opposition on their
absence. These are not the weapons of those who are negotiating
with confidence. A truly persistent person will be strong enough
to change what needs to be changed and do what needs to be
done even if others disapprove.
E. Be committed to what you set out do
You can practice behavior that will lead to strong
commitment to work contract. You need to do this if you are to

succeed as an entrepreneur. Keeping your promises and

commitments is at the very heart of entrepreneurs.
You cannot be committed persons overnight. You must
deliberately work at it and practice it with persistence. Here are
some guidelines that may help in building your commitment to work
contact:
1. Have strength of character. Entrepreneurs have palabra de honor.
Their words are their honor. People with strong character will
honor what they say- come what may. These strong people will
not make lusot or alibi. If they fail to keep their word, they admit
it as their mistakes or shortcoming.
2. Only make promises you can keep. Entrepreneurs who do not
deliver orders on time find to their regret that there is no next
time. Customers can always take their business elsewhere.
3. Know what to do when you cannot keep a promise.
4. Cultivate the trust of others. Once trust is broken it is very hard
to repair it. Trust is the roof of good entrepreneur-customer and
entrepreneur-supplier relationship.
5. Clarify expectations. The promise you make must be based on
what is reasonable for all concerned.
6. Apologize sincerely. When you are unable to keep your promise,
apologize sincerely to your customers. Be sure you have made
your side understood completely so that no doubts remain.
F. Set High Standards of Quality and Efficiency
No matter what you are doing, you can strive for quality and
excellence. Good entrepreneurs demand quality and efficiency not
only from their workers and suppliers, but also from themselves.
They set an example of excellence that expects the people who work
with them to follow. In this way, they make sure that the products
and services they sell are of good quality. This means good business.
Here are behaviors that can help you achieve quality and
efficiency in business and other aspects of your life:
1. Consistency is important. Your quality must be steady and
reliable. Consistency will give you the competitive edge.
2. A neglected and dissatisfied customer might never return. Worse,
they might spread the word around regarding your lousy product
and service. Be careful even if you are dealing with only one
customer.
3. Devotion to quality and efficiency must become a way of life for
you and your workers. Commit yourself to quality not only when
doing business, nut also in everyday things, including your
personal life.

This way, being efficient and quality-conscious becomes a

second nature to you.
4. Use appropriate technology to help you. New technology may
initially cot money, but may be economical for your business in
the long run.

G. Seek Information
Knowledge is power. You need information to get wind of business
ideas and opportunities. You need information to determine whether
your business idea will be profitable or not, to find out whether
there are people who will buy your products, and at what price. You
need information about sources of assistance for your business and
for business loans. An important source of information is your own
experiences and observations. However, oftentimes these are not
enough. We have to actively seek information by joining industry
chambers where they get to exchange experiences and know-hows
with other entrepreneur in the same or similar business.
If you are a student, join business-oriented groups like Junior
Achiever Society and Young Entrepreneur clubs. Tune in to businessoriented programs and courses. Talk with relatives and friends who
are already in business. Ask questions.
H. Believe in Yourself
Entrepreneurs are rather self-confident people. They believe that
they can achieve their goals. So must you. If you do not have faith in
yourself, no one else will. For you to be able to make things happen,
you must first recognize that you can do so, and nobody else can.
Here are some ways to develop your self-confidence.

Know as much about yourself as you can.

Look at your qualities in a realistic manner.
Emphasize your strengths and play down your weaknesses by
choosing activities and goals where you do best.
Take care of yourself physically so that you look good to
yourself and to others.