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Training creates new opportunities and possibilities as well as consciousness to attempt and complete certain tasks in different way (McGrath & MacMillan, 2000). Effective entrepreneurship training is important as of today's changing workplace as new technologies and flexible working practices are introduced, leading to corresponding changes in the required skills set and abilities. Learning essential skills allow entrepreneurs to understand business realities. It also helps them to review investment options and exposes them to much harder aspects of business.
Entrepreneurs need to attend the most basic training such as networking and business language in order to communicate their ideas and receive valuable feedback. It is important to build a base of knowledge to recognize the importance of networking and to hone the ability to have a larger vision to build greater business opportunities. They have to analysis the business opportunity and risk involved in order to know their industries inside out. Strong command of business language will allow entrepreneurs to have a firm understanding of how to effectively and intelligently communicate with investors and partners. Research found that most successful entrepreneurs are older people which also reflect that the individuals are much more experienced with various business endeavours and already know how to present themselves well (Barclays, 2001). Having such vital skills allows them to connect with other people and negotiate and structure mutually beneficial deals.
Being adequately trained on how to pitch sales is probably the most important and critical trait of an entrepreneur. Even before the business launch, individual needs to sell his business plan to potential investors, partners and banks that he wishes to secure a loan from. Watson & Everett (1996) studied that business failure rates due to bankers and venture capitalists were basing negative views of small companies on dubious statistics. Without any ability to sell oneself, the business plan will never be realized due to a lack of funds. Even if he is capable to fork out money on his own to start his own business, he has to know how to convince the customers and make them buy his products. Sales knowledge allow to them to understand very intimately the human psyche and behavioural patterns that psychology can help to become aware of. Moreover, the knowledge can help entrepreneur to identify the potential salesman to hire.
Business is a numbers game. The number of customers, the profit margin of the business, the operating expenses, the tax figures and many other variables in numbers make up this entity. The entrepreneur who is able to manipulate these numbers to his advantage will succeed in keeping his business alive and prosper. Entrepreneurs need to understand the core accounting principal and the general principles of financial management to ensure the business maintain profitable. As there is a lot of psychological money barriers that individuals impose on themselves, it is not a matter of unavailability of funding, but the lack of financial planning to support opportunities for growth. Having understanding those human behaviours and the reason behind core business issues can help the business further, some entrepreneurs do not have sufficient awareness of the costs involved in raising capital, no migration plan in case of rejection for loan and fail to plan for growing their business to avoid the financial crisis. Entrepreneurs with the limitation of capital need to fully utilize their current resources in order to survive in such a competitive market. For example, paying back of bank loans, seeking of refinancing from bank with lower interest rate are some of the issues which they need to be able to handle well. Basic accounting is a fundamental to the business, as entrepreneurs have to interact with many accountants and business strategists. Having the fundamental skill could enable individual to speak intelligently enough on the subject to be able to analysis the proposals or any topic come about.
Entrepreneurs need to understand the national regulations, corporate and business laws if they wish to further expand the business. There are many various types of corporate entities such as private limited, public limited, general partnerships, limited liability companies. Each of these different business entities has different benefits which affect the amounts of tax, perception of the business between customers and supplier, ability to for loan, and the ability for expansion. Contractual law is another sub-division of business law that is vital to entrepreneurs. General knowledge of contractual law will sufficient to help individual to avoid unnecessary law suits. By combining an understanding of business law with corporate entity structure and asset protection individual can develop a business entity structure that will help to protect the assets. Many companies file a patent application too early or too late and knowing when to file a patent application is crucial to taking full advantage of the intellectual property (Neustel, 2008).
Human resource management training could help entrepreneur to identify and retain the best employees. In response to globalization change, entrepreneurs have to approach the recruitment and selection process from a strategic perspective. Understanding recruitment and selection strategies and policies, they could integrate both into organization goals and vision. Individual must successfully source and attract potential employees in a highly competitive environment as well as abiding by legislation relating to equal employment, workplace relations and privacy legislation. Entrepreneurs should be trained to give recognition of employee's work and provide inspiration and motivation. Entrepreneur must also provide positive reinforcement on an ongoing basis such as matching the skills and interests of employees with their work assignments, making the necessary adjustments to ensure that employees are effectively aligned with what the organization needs them to do and what they are best at and enjoy doing. Entrepreneur that makes a significant percentage of the compensation package variable will benefit both the organization and the employee by encouraging high-calibre performance.
Knowledge of change management, the need for overcoming change encompasses many different concepts within the organizational. Factors like culture, leadership, structure, employees' reaction, power and politics will bring about changes within the organization. Entrepreneur must be familiar with the different characteristics and impact of change itself. This will help entrepreneurs to implement appropriate paths and solution to change. Entrepreneur must get to the root causes of issues and allow it to be rectified. In this way, solution and strategy on how to overcome changes can be identified in a committed and effective way.
The successful entrepreneur is also a successful marketer who is able to sell his product to the right customers through the most effective way. Having good marketing skills allows him to segregate the market and allows him to focus the niche market. Marketing is about exposing of product to a very selective group of individuals who are highly likely to become customers. Entrepreneurs need to understand this concept well in order to attract potential customers.
88.7% of all business failures are due to management mistakes (D&B, 2004). Leadership course is essential for entrepreneur to lead the organization. As an entrepreneur is a leader of the organization, he must being able to inspire and lead others. It is the job of aspiring entrepreneur to appeal to that desire to be led and guide those employees towards a successful path. The ability to effectively lead is a crucial factor in the success in entrepreneurial ventures. By understanding and embodying what it takes to lead effectively, entrepreneurs can maximize their chances of success.
In today's competitive business environment, time management is crucial for success as it creates new innovation for development support organizational goals. With good time management, business will undergo comprehensive planning to ensure that circumstances, which are beyond control due to external factors, are minimized. The process of planning, organizing, setting priorities/responsibility, managing resources, enhancing monitoring/risk management techniques and communication structures will ensure smooth business operation. Therefore, it is of paramount importance to have time management skill with the needed capabilities to manage the business and to ensure prompt delivery within the stipulated time frame and budget which meets client's satisfaction.
The importance of entrepreneurship training in the new economy also goes beyond empowering people wishing to start their own businesses. Effective entrepreneurship training addresses all these issues and provides the foundation for all individual. Successful entrepreneurs are very independent and they do not try to do what they are not familiar with (Mariotti, 2000). Therefore, entrepreneurs have to be very well rounded in his knowledge in order be able to see all sides of the issues. Successful entrepreneurs are flexible in wearing multiple hats. Like a jack of all trades, he may be a master of none. To leverage on their skills, successful entrepreneurs train themselves and mix with successful people (Schwartz and Yager, 2009). As a result, they are able to boost their own performance as well as productivity level to pursue other endeavours as well. Successful entrepreneurs have self-discipline and focused to pursue their goals. With various sets of skills, entrepreneurs believe greater experience and better training are an advantage for long term success (Barclay, 2001).