The purpose of this study is to develop core competence model in venture entrepreneurs. The developed model has a significance in reducing the start-up failure rate and further in developing a program for start-up education focusing on competence and ...
The purpose of this study is to develop core competence model in venture entrepreneurs. The developed model has a significance in reducing the start-up failure rate and further in developing a program for start-up education focusing on competence and offering its guideline. The research task for achieving the objective of this study is to develop entrepreneurs' core competence model by eliciting the competency of a start-up entrepreneur who succeeded in founding a venture company.
To draw the core competence of a model, it progressed over the 3-stage process. First of all, a documentary research was carried out on a successful factor of venture entrepreneurs. Sequentially, a case research was conducted on an entrepreneur's experience of success and failure with an in-depth interview. Finally, a job type was analyzed by carrying out a survey research on an entrepreneur's competency, value and motivation. Based on the competencies that were derived through the process of a documentary research, a case research and a survey research in this way, a draft was prepared on the core competence model in venture entrepreneurs. The completion of a draft on competence model was performed FGI by selecting 6 entrepreneurs who correspond to the representative career anchor of entrepreneurs.
As for the verification of validity on a draft of entrepreneur's core competence model, the validity was inspected twice by forming 7 SME(Subject Matter Expert)s. The primary validity verification method was confirmed whether each item is valid through an individual interview after measuring 5-point Likert scale and CVI on each competency. The secondary validity verification was carried out FGI by being gathered all of the 7 SME(s). The final model was completed by dividing core competence for start-up into the procedural aspect and the contextual & methodological aspect.
The vision of the core competence model, which was developed in this way, is ‘successful venture start-up.’ To practice this, it is thought and behaved according to the core value of self-reflection, innovation, action, and relationship. Also, to achieve the vision called successful venture start-up, 23 core competences need to be equipped according to the 3-stage procedure.
The first stage is the one of ‘confirming entrepreneurial intention.’ The competence group includes ‘self-analytic competence,’ ‘professional field knowledge·technical skill,’ and ‘ability of establishing start-up philosophy.’ The core competences include ① own career analytical ability, ② ability of analyzing self-resource objectively, ③ ability of analyzing human resources necessary for business, ④ ability of grasping my professionalism, ⑤ ability of solving a problem to be confronted in the field, ⑥ ability of internalizing share value, ⑦ ability of drawing entrepreneurial value.
The second stage is the one of 'drawing up a start-up model.' The competence group includes ‘ability of eliciting entrepreneurial idea,’ ‘ability of analyzing idea validity,’ ‘competence of planning a venture start-up model.’ The core competences include ⑧ ability of capturing a business opportunity, ⑨ ability of thinking about innovative idea, ⑩ ability of analyzing a target market, ⑪ ability of offering the differentiated value, ⑫ analytic competence on competitiveness of product, ⑬ ability of implementing a business model, ⑭ ability of establishing entrepreneurial schedule, ⑮ ability of financing necessary for start-up.
The third stage is the one of 'planning the venture start-up.' The competence group includes ‘marketing communication competency,’ ‘business-plan presentation competency,’ ‘ability of implementing organizational system.’ The core competences include ⑯ ability of designing a core item, ⑰ marketing competency available for persuading a customer, ⑱ ability of preparing a business plan suitable for a goal, ⑲ persuasive presentation competency, ⑳ feedback analytic competence, ㉑ ability of implementing a system for organizational performance, ㉒ ability of understanding a core concept of accounting, ㉓ ability of securing a competent person necessary for organization.
As an entrepreneur's core competence is the one that is necessary for the stage until the intial start-up, it cannot be applied up to the maturity of a venture company. However, in case of a venture company, a new enterprise is very low in the average survival rate. Thus, the initial entrepreneur's competence is very important in the initial start-up of venture company. Accordingly, developing competence up to the initial start-up in a venture company is considered to have a significance in reducing failure rate of a venture company.
This study suggested a method, which will apply this, as well as 23 core competences in entrepreneurs, thereby having made it able to be basic data of a follow-up research. The following are the methods of cultivating each competence such as ① testing a career anchor, ② analyzing SWOT, ③ preparing a personal-connection map based on social network, ④ self-report on my differentiated professional skill, ⑤ a case analysis on success·failure, ⑥ CSV case-based learning, ⑦ specifying the orientation that an enterprise aims to reach, ⑧ predicting future on environmental change(PEST), ⑨ brainstorming among team members, ⑩ surveying the customer needs for start-up idea, ⑪ seeking a plan of differentiation that a rival cannot offer, ⑫ analyzing primary cost, distribution cost, actual selling price, ⑬ preparing BMC, ⑭ drawing up a specific action plan, ⑮ understanding a market situation on procurement source and procurement condition, ⑯ branding a value of item(promotional copy, corporate slogan), ⑰ learning the marketing promotion mix in 4P, ⑱ a business writing technique(KISS & 5W1H), ⑲ a storytelling method, ⑳ comparing between the expectative outcome and the result of actual situation, ㉑ learning the PDCA management system, ㉒ learning a basic concept of financial statements(DART), ㉓ a method of human resource development(HRD).
The results of this study are as follows.
First, for successful start-up in venture company, there is a need to thoroughly prepare according to the stage-based process focusing competence. This is because the management performance can be varied depending on its preparation level as for which preparation a founder made for start-up.
Second, its contents need to be reflected in education as for what the competence is that is demanded in the field for a pre-founder to prepare for start-up. 23 competences in venture entrepreneurs, which were elicited in this study, are the important core competence in preparing for start-up and are applied to the contextual aspect of start-up education.
Third, a strategy for methods on how a founder's core competence will be fostered needs to be offered to a pre-founder or a start-up education instructor.
Fourth, the tendency on career in a venture start-up successor was indicated to be most dominant in entrepreneurial competence and Autonomy/Independence. A founder is a person who breaks into new business sphere by displaying their peculiar start-up competences, thereby being able to be considered that the entrepreneurial competence is ultimately shown most dominantly in them. Also, to exert their creativity, it should not be education that damages autonomy.
This study developed an activity method on how it will nurture the core competence, which is necessary for planning and executing business to be worried in a pre-founder's start-up, the differentiated thinking power by competence, or the ability necessary for action. This entrepreneurial competence model is expected to be likely capable of being usefully applied to the aspect of human resource development.