9 Must-Have Business Competencies for Entrepreneurs in 2024

Business competencies are not the sole skills that we expect from an entrepreneur. There are so many other areas that an entrepreneur should be familiar with.

For example, the ability to retain employees or stop a customer from leaving. Or even the ability to hustle the next round of investment. These are skills that an entrepreneur cannot survive without.

In short: To succeed, there are some key business competencies that they need to have. So let’s explore nine core business competencies for founders.

9 business competencies that every entrepreneur should have

1. Communication
2. Networking
3. Leadership
4. Sales
5. Feedback
6. Finances
7. Focus
8. Management
9. Mindset

#1. Ability to communicate: 

Being a good communicator is one of the core competencies an entrepreneur needs to be successful. This means they need to be able to talk to people and explain things clearly in various situations; from dousing fires at the workplace, to negotiating terms with investors, to being the proverbial POCs for most major undertakings. 

In short, founders need to be able to talk to their employees, customers, and investors in a way that inspires trust and understanding. If they can’t communicate well, their ideas may not be understood, and their business may fail.

Being persuasive is a big part of being a successful entrepreneur, and it’s a skill that cannot be replaced by technology.

#2. Networking:

Networking means getting to know people who can help an entrepreneur in their business. These people could be investors, advisors, mentors, or other entrepreneurs.

Is networking that important? Yes. It’s important to make connections because it can indirectly affect the success of the business. Even if an entrepreneur didn’t go to a fancy school, they can still make important connections.

After all, being a good networker means being genuinely interested in other people’s stories, and asking about their experiences. For example, you can:

• Ask them about their journey.
• Learn about their success and failures.
• Find out what inspired them toward their current path.
• Gather valuable advice on how they found investors, developed products, faced objections, tackled government regulations, and so on. 

What are some good ways to start networking?

• Attending startup meetings
• Hosting events for other entrepreneurs
• Offering time and spice for other founders to grow in their business.

#3. Leadership abilities:

Third on our list of business competencies in entrepreneurship: Leadership is an important skill for entrepreneurs to have.

Running a business can be difficult, with many obstacles to overcome. However, a strong leader can help their team face these challenges with confidence and purpose. Even big, successful companies have faced challenges, but they have strong leaders to guide them.

An entrepreneur’s ability to lead is crucial for their business to succeed. While there’s no clear guide on how to become a good leader, there are things an entrepreneur can do to appear as one. For example, a good leader has a strong vision and believes in themselves and their team. They trust in their idea and how it will benefit their customers.

#4. Sales:

As part of their core competencies, entrepreneurs should learn how to be effective salespeople.

Why? Salespeople talk to customers a lot and understand how they think, and what they want. They know what’s wrong with how a business is run because they are close to the customers. So learning how to sell is important for building a successful business.

Even if a product is good, it won’t sell on its own because there are many competing products. Entrepreneurs who learn how to sell and work hard will make their business relevant even in tough times.

Moreover, selling can help entrepreneurs get rid of assumptions they have about the market. It helps them understand what works in the real world and how to improve their business. They will learn things they might not have known otherwise.

#5. Ability to take feedback:

Have you ever heard the saying: “Doing the same thing over and over again, and expecting different results is lunacy”? Well, it’s true!

That’s why entrepreneurs need to learn how to take feedback – from customers, investors, peers, and employees. After all, it’s possible to be wrong on so many levels, and there will be times when you just don’t know what to do next.

If you want to gather feedback effectively, there are a lot of ways to do it. For example, you can use online feedback software like SurveySparrow to conduct online surveys for customers or employees, or ask for feedback from investors, experienced entrepreneurs, and other peers.

You don’t have to implement everything that’s suggested. But taking feedback will at least give you an idea of what relevant stakeholders think about your business and your leadership.

#6. Managing finances:

One of the core competencies in entrepreneurship is always having enough money to keep it running. If you don’t manage your money properly, your business could fail. Even if you have a great idea, without proper funding, it can be tough to get your business off the ground.

The after-effect of Covid-19 is still looming large, and given that there are talks of recession, investments have dried up. That makes it all the more important for businesses to be prudent with their money. 

Where to begin? Start by tracking where (and how much) money is coming in and going out, and find ways to cut down on expenses. By having a good understanding of your finances, you’ll be able to make smart choices and avoid wasting money.

It’s also important to know how to read financial statements like income statements, balance sheets, and cash flow statements. These documents can help you see where you’re spending too much money and where you can save. By having the necessary finance skills, you will not overspend and end up allocating your funds only where it is necessary. 

#7. Being focused:

An entrepreneur is the business head of their startup, so there are hundreds of things that they need to take care of.

For them, hiring an accountant is as important as looking for funding. They cannot slack on one aspect just because the other task is perceived to be more important. 

That’s why successful entrepreneur are always clear about their end goals. Whether it’s blocking out focus times or notifications, they use various techniques to avoid falling in the distraction trap. 

There will be issues that crop up every now and then. When you are starting from scratch, there are several things you will not have a clear idea of. Handling different business aspects can be difficult for everyone. This is where staying focused on your most important goal helps your organization. It is imperative that they remain composed, confident, and focused on what they want. 

#8. Managing people:

Why does this figure among business competencies in entrepreneurship?

To run a business, you need to work with different people who have different skills and backgrounds. It’s important to choose the right employees as they can greatly impact the success of your business.

Moreover, you cannot do everything yourself, so delegating tasks is necessary. Additionally, if you micromanage your employees, they will feel unappreciated and will not want to stay with the company. So, trust your employees and their abilities to get the job done well.

In addition, give your employees the resources and support they need to do a good job, and communicate your expectations clearly. In fact, online survey forms can help you automate this process. To give some examples:

• Employee empowerment survey: Are your employees empowered to make their own decisions at work? These survey questions witll help you find out.
• Training checklist form: Are all the resources and processes in place for your training program? Find out with this training checklist template.
• Employee productivity questionnaire: Does your workplace offer a productive work environment? This employee productivity form can give you the answers.
• Employee professional development survey: Design a training program based on your employee’s preferences with this customizable chat survey.

#9. Possessing a growth mindset: 

Among the several business competencies examples we have talked about here, having a growth mindset will help entrepreneurs stay focused.

A growth mindset means they see obstacles as opportunities to learn and grow. This helps them stay focused and make progress towards their goals

Having a growth mindset gives the entrepreneur the ability to look at each obstacle as a stepping stone to success. Someone with such an attitude will be able to value testing and iteration in the entrepreneurial process. You will capitalize on the opportunities you get and find more ways to improve throughout the course of the journey. 

Starting a business can be unpredictable, so it’s important to be optimistic about the future and focus on growth. With a growth mindset, entrepreneurs can overcome any challenges that come their way.

Why 360 feedback for leadership development?

360 feedback is a great tool for leadership development, and here’s why: it’s all about getting a well-rounded perspective on your performance as a leader and entrepreneur. You’re not just hearing from your manager or direct reports, but from everyone you interact with regularly: colleagues, peers, customers, and even vendors. By collecting feedback from all these sources, you’re getting a much more complete picture of how you’re doing as a leader and founder.

In addition, this kind of feedback can be really valuable for personal and professional growth. It can help you identify your strengths and weaknesses, and it can give you a better understanding of how your behavior impacts those around you. You might discover that you’re doing something that’s really bothering your team, for example, or that you’re not as effective in certain areas as you thought you were.

But here’s the thing: 360 feedback can be tough to hear sometimes. You’re opening yourself up to criticism from all angles, and it can be hard to take in. That’s why it’s important to approach it with an open mind and a willingness to learn. If you go into it defensive or closed off, you’re not going to get as much out of it as you could.

The other thing to keep in mind is that 360 feedback isn’t a one-and-done kind of thing. It’s something you should be doing regularly, as part of your ongoing leadership development. You’re not going to fix all your issues overnight, and you’re not going to get everything right the first time around.

But if you’re committed to growth and improvement, and you’re willing to listen to the feedback you’re getting, you’ll be well on your way to becoming a better leader.

How to Use 360 Feedback for Leadership Development

If you want to use 360 feedback to develop your business competencies as a leader, there are a few key steps to follow.

• Select a group of people to provide feedback on your leadership style. This group should include people from different levels of your organization, as well as people who interact with you regularly.
• Once you have your group, you’ll need to choose the specific business competencies you want to focus on.
• Next, choose a 360 feedback tool that asks questions specifically related to those competencies. You can work with a coach or consultant to create a customized tool. If not, 360 feedback tools like SurveySparrow helps you quickly set up, automate and scale up the feedback cycle.

Sign up below to try SurveySparrow for free.

• Share the 360 survey with your feedback group and ask them to provide honest, constructive feedback.
• When you receive your feedback, it’s important to take the time to review it carefully. Look for patterns and themes in the feedback, as well as areas where you could improve.
• Based on this information, create a plan for how you will work on improving your core competencies over time.
• Finally, be sure to follow up with your feedback group periodically to track your progress and continue to improve.

Wrapping up

The list of competencies we have mentioned in the article should act as a fillip for entrepreneurs to upskill themselves. The article offers guidance on how one can hone these skills too.

Another quality that everyone will expect from an entrepreneur is to be easy to work with. In the face of immense challenges that an entrepreneur faces every day, being likable and friendly will be of great help. No one wants to work with someone who is inconsiderate or snobbish. 

Are you looking for an online survey tool to collect feedback and assess your entrepreneurial skills? SureySparrow has a great team that can help you take the right approach and get the most out of your feedback. Get in touch to let us help you succeed.