1 Mastery Experience Vicarious Experience Social Experience Entrepreneurial Competence Source: Erikson (2003) Determinants of Entrepreneurial Competence

2 Learning Experience Mastery Mastery – based on self-confidence through experiencing success. Repeated accomplishments increase an individual’s capability. This reinforces self-efficacy and contributes to higher aspirations and future performance.

3 Learning Experience - Vicarious Vicarious experience – Observational learning through role models. Role models affect self-efficacy through a social comparison process because people judge their capabilities in comparison to others. Therefore the selection of the role model by the entrepreneur is very important.

4 Learning Experience: Social Social Experience - social persuasion can increase the belief that people possess the capabilities to achieve what they seek. Positive encouragement at all levels – you can do it, we are all behind you, society values entrepreneurs etc. Scottish Enterprise, Ent. Exchange etc..

5 Types of Knowledge Tacit Knowledge This is implicit, unsystematic, and rarely documented. Much of the transfer of tacit knowledge is through encounters with people - often unplanned chance encounters Explicit Knowledge is formal, systematic, typically documented and thus more easily communicated either face to face or in various forms of media.

6 Tacit and Explicit Knowledge Mentor passes on either tacit or explicit knowledge. How tacit is most of it? Is it lost with the sole mentee? Therefore a process should be set in motion where the mentee formally passes on tacit knowledge (mentor role) to others in the business and there is an element of explicit knowledge in the whole process.

7 Knowledge Interaction Process In mentoring the challenge might be to have a high quality learning experience based on the following processes 1.Socialisation - a process of sharing tacit knowledge i.e. the experience and insights of the mentor to the mentee. 2. Externalisation - articulating tacit knowledge into explicit knowledge through using narratives, metaphors, story building.

8 Knowledge Interaction Process 3. Combination - helping the mentee link into bodies of explicit knowledge; documents, models, computer networks, formal training. 4. Internalisation - company champion(s) mentee sharing their new explicit knowledge internally as tacit knowledge at meetings. Could become more effective as explicit knowledge if circulated as a report or placed on the company Intranet.

9 Core Competencies Core competencies are not found in an individual, a department, business function or even a single business unit, they are integrative, cutting across departments, functions and business units.

10 Knowledge Pyramids Vision Unique IP Wisdom Expert Opinion Intelligence Information Data Hearsay By Volume By Value Strategic Vision Unique IP Wisdom Expert Opinion Intel. Info. Data

11 Distribution of Competencies of Firms - The Inverted Triangle Company Strengths Threshold Capabilities Team Proficiencies Competitive Advantage Sustainable Competitive Advantage Core competencies and Capabilities All Firms Most New Ventures Most firms at some time Few Firms

12 Characteristics of an Entrepreneurial Venture (Timmons, 2002) Goal orientatedVisionary Motivated to growOpportunistic ProactiveInnovative FlexiblePrepared to take risks Tolerant of failureInformal / Collegial Enjoyable fun placeResponsive to feedback

13 New Themes in Leadership Less Emphasis OnMore Emphasis On PlanningVision/Mission Allocation of ResponsibilityInfusing Vision ControllingMotivating /Inspiring Power RetentionEmpowerment Creating ComplianceCreating Commitment ContracturalStimulating Effort DetachmentInterest in Others Reactive to EnvironmentProactive