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ENTREPRENEURIAL COMPETENCE AND THE PERSONAL TRAITS
OF AN ENTREPRENEUR: ANALYSIS ON THE BASIS OF STUDENTS’
SELF-EVALUATION
Urve Venesaar1, Signe Liiv2, Innar Liiv3, Merle Pihlak4
School of Economics and Business Administration, Tallinn University of Technology,
Ehitajate tee 5, 19086 Tallinn, Estonia, e-mails: 1venesaar@tv.ttu.ee; 2signe@liiv.ee;
3innar.liiv@gmail.com; 4merle.pihlak@tv.ttu.ee.
Abstract. The objective of the article is to analyse the results of a survey carried out among bachelor and master
study students in different technical specialities of Tallinn University of Technology. The aim of the study was to
investigate students’ personal traits connected to entrepreneurship and entrepreneurship competence prior to start-
ing with a course of Business Administration. The study is based on theoretical premises developed by Robert D.
Hisrich and Michael P. Peters and their tests evaluating the personal traits of entrepreneurs and entrepreneurial
skills. Cluster analysis has been carried out in order to group the members of the sample into different target
groups based on their attitudes when answering the questions related to entrepreneurship. The analysis of the psy-
chological test of the entrepreneur showed that most of the students who responded have prerequisites for becom-
ing an entrepreneur (self-confidence, aspiration towards independence, readiness to take risks), although it is nec-
essary to specify the needs of the target-group when planning a course programme.
Keywords: entrepreneurship competence, personal traits, skills, cluster analysis.
1. Introduction
Developing entrepreneural competency has been
given a lot of attention in recent scientific literature
and the development programmes of education, in
connection with changes in entrepreneural environ-
ment, which have been brought along by globalization
and liberalization and movement towards a more en-
trepreneural society. Economics theoreticians think
that on this road the important role is played by the
development of so-called entrepreneural capital,
which includes achieving public approval of entrepre-
neural behaviour, existence of institutional support
(including banks, venture capital) and individuals who
wish to take the risk of establishing a new company
[1]. Concentrating on entrepreneural competency has
been justified with the necessity of developing human
capital, where the skill to be entrepreneural creates the
opportunities and motivation to be a successful entre-
preneur, employee or family, in order to better exploit
the increasing prosperity and wealth in the interest of
common as well as personal development and satis-
faction in a globalizing society.
Fostering entrepreneurship among students has
become an important topic in universities and gov-
ernments’ as well as in research. The positive role of
universities in developing entrepreneurship compe-
tence and to explore the factors influencing entrepre-
neurial behaviour of students are confirmed by a
number of studies [2, 3, 4, 5], which help to explain
the emergence of entrepreneurial intention among
target groups as well as suggest the stimulation of
entrepreneurship education.
There have been few researches evaluating and
explaining the level of Estonian entrepreneurial spirit,
especially at human factor level. In a recent (2004)
empirical study of Estonian Institute of Economic
Research residents were asked to evaluate which
knowledge and characteristics are beneficial while
starting and acting in entrepreneurship [6]. The in-
quiry showed that the preparation of entrepreneurs for
starting in entrepreneurship is quite modest. Potential
entrepreneurs (i.e. who were thinking to start in entre-
preneurship or were establishing a company at the
time of the inquiry) did mostly not have any experi-
ence in establishing and managing a company or
business education. Half of the questioned potential
entrepreneurs did not have knowledge on accounting
and marketing. By age, the 25–34 year-olds were
more aware of writing a business plan, experience of
establishing a company, finding finances and business
education. Younger persons (16–24 year-olds) were
sure on knowing who to turn to in order to find entre-
preneurial help. Comparing the inquiries of Estonia
and United Kingdom a similar attitude towards the
necessity of acquiring problem solving skills was no-
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INTERNATIONAL ECONOMY: PROBLEMS OF INNOVATION AND MARKETING MANAGEMENT
ticed. Estonian respondents valued more communicat-
ing skills and contacts, the English valued more spe-
cial knowledge and problem solving skills [7].
The theoretical treatment of entrepreneurship is
complicated because of its tight connection with dif-
ferent disciplines, e.g. psychology, sociology and an-
thropology. Theories of psychology (e.g. McLelland)
pay attention to personal traits, motives and incentives
and conclude that entrepreneurs have a strong
achievement-need. In literature there are quantities of
definitions of entrepreneurship and the personal traits
necessary for entrepreneurs and the developments of
the definitions have been analysed as a result of en-
trepreneurial researches [8]. The problem of explain-
ing and predicting the behaviour of entrepreneurs
comes from the group’s big variability and heteroge-
neity, which is difficult to measure [9].
However, there is common understanding that
although entrepreneurs can be very different, they can
de described by certain common features or personal
traits. Already in the 18th century Cantillon defined an
entrepreneur as someone who makes grounded deci-
sions, takes on risk and manages a company. Entre-
preneur has been defined as an innovator [10], entre-
preneurial person, organizer and risk-taker [11]. The
ability to see the imbalance of demand and supply and
to direct the entrepreneurial activity towards changing
that difference through business activity has also been
seen as one of the traits of an entrepreneur [12]. Also
in more recent literature an entrepreneur has been
characterized as a person who has a great ability of
imagination, flexibility, creativity and innovation; as a
person who is ready for conceptual thinking and who
sees change as a business opportunity [13]. Some au-
thors agree on entrepreneur having a high readiness to
take risks, optimistic attitude towards success, also
having sufficiently self-confidence to start implement-
ing their idea and aspiration towards independence
[14]. The entrepreneurial mind (e.g. dedication, per-
sistence) has been described by J. Timmons (1994)
[13]. However, in case of the existence of potential to
act as an entrepreneur, appropriate environment and
conditions are needed to actualize the potential.
The objective of the current article is to analyse
the personal traits and entrepreneurial skills of stu-
dents of technical specialities, at the example of Tal-
linn University of Technology. The results could help
to develop entrepreneurial education and raise the
entrepreneurial competency of higher educational
establishment graduates. On the assumption of the
main objective, the study is based on theoretical
premises developed by Robert D. Hisrich and Michael
P. Peters and their tests for evaluating the personal
traits of entrepreneurs and entrepreneurial skills [14].
Extract of the tests of the authors have been made in
order to adjust them to our environment.
Consequently of the theoretical part above, the
methods of carrying out the empirical research have
been brought out in the next part of the article, fol-
lowed by the analysis of the results of the research in
two parts: first, the analysis of students’ personal
traits, in order to evaluate their behavioural attitudes
characteristic to entrepreneurs, and second the entre-
preneurial competency (skills) analysis before starting
the corresponding subjects at the university.
2. Research methods
The empirical study was carried out among the
bachelor study students of technical specialities of
Tallinn University of Technology, who were asked to
give self-valuation to personal traits connected with
entrepreneurship and to entrepreneurial competency.
In three academic years (2003-2005) the bachelor
study students who had taken the subject of business
administration, were asked to evaluate their personal
traits and entrepreneurial skills on the first or second
lecture according to the questions of the tests given.
245 students of different specialities were par-
ticipated in the study, mainly from faculties of infor-
mation technology, mechanical engineering and sci-
ence, they all filled the skills’ test and 238 of them
filled the entrepreneur’s psychological portrait test.
Assemblage of the sample of the three years allows
making generalizations of the results of the analysis
with a higher probability.
To evaluate students’ personal traits, the so-
called entrepreneur’s psychological portrait test was
used (authors Hisrich and Peters [14]), in which the
questions were directed to making certain behavioural
choices and where it was possible to give „yes” and
„no” answers. To analyse the entrepreneur’s psycho-
logical portrait test the authors have worked out a
system, based on which the prerequisites of becoming
an entrepreneur can be evaluated. As a criterion of
those prerequisites, questions characterizing the three
important personal traits – self-confidence, aspiration
towards independence and readiness to take risks –
have been put into the test. The questions have been
divided into two parts – „yes”-answer to one group of
the questions confirming those personal traits (self-
confidence, aspiration towards independence, readi-
ness to take risks), can give the evaluation that the
person has good prerequisites of becoming an entre-
preneur; a certain number of „yes”-answers to the
questions of the second group characterizing the op-
posite personal traits (dependence on external influ-
ences, non-aspiration towards independence and risk-
evasiveness) indicates the case that the respondent
should very carefully observe himself and plan an
action programme to develop entrepreneural personal
traits. The authors of the current article presumed that
in the first case an evaluation of the person having
good prerequisites of becoming an entrepreneur can
be given and in the second case, they presume that the
person has poor prerequisites of becoming an entre-
preneur. The results of the analysis brought out in the
article are mainly based on the methodology of the
test’s authors.
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INTERNATIONAL ECONOMY: PROBLEMS OF INNOVATION AND MARKETING MANAGEMENT
Then, the questions of the test have been
grouped to express the personal traits of an entrepre-
neur (self-confidence, aspiration towards independ-
ence, readiness to take risks). The authors of the arti-
cle divided all the entrepreneur’s psychological
portrait test’s questions into six groups according to
vision of the authors of the test. The database earlier
consisting of 22 questions (traits) became a database
of 6 groups (traits) with files of the test as horizontal
lines and the abovementioned 6 groups (traits) as col-
umns. In case of each group the authors of the article
counted the „yes”-answers. The questions-answers of
the first group (R1) show if the respondent is depend-
ent on external influences which can interfere with
becoming an independent entrepreneur. The orienta-
tion of the questions of the second group (R2) is to
determine if the respondent’s inner will to achieve
success and victory is more powerful than the aspira-
tion to subordinate to a strange will. The „yes”-
answers to the questions of the third group (R3) give
evidence to the respondent not particularly aspiring
towards independence; the „yes”-answers to the ques-
tions of fourth group (R4) give evidence to the con-
trary. The purpose of the questions of the fifth group
(R5) is to examine the respondent’s readiness to take
risks, the „yes”-answers to the questions of the sixth
group (R6) give evidence to the opposite.
Thirdly, the students’ answers to the individual
questions of the entrepreneur’s psychological portrait
were analyzed and their attitudes towards entrepre-
neurship were evaluated. The analysis of the answers
to the individual questions helps to better understand
the influence of those answers to the final results of
the analysis.
In evaluating the entrepreneurial skills (compe-
tence) it was possible to give three kinds of answers to
the test’s questions: do you have the skills necessary
for an entrepreneur, do you have them partly or do
you not have them. This analysis helps to evaluate the
fields that need special attention while composing
curriculum programmes, in order to the student to
have the respective competence after finishing the
course, which would create better prerequisites for
young people to enter entrepreneurship after graduat-
ing. In order to analyse the results of the three-
levelled test cluster analysis has been used, the idea of
which is that objects are columned into clusters
(groups) in a way that one cluster consists of objects
as similar as possible and they would clearly distin-
guish from the objects in other clusters.
For a primary analysis and two-mode visual
clustering a respondents’ conformity and uniqueness
scale was created [15, 16]. While creating the scale
the questions and respondents of the test are permuted
in a way that the respondents who have answered
similarly and question groups would incur close. The
principle of the method lies in the analysis of the fre-
quency table of the answers. The most unique and
least fitting respondent is found and eliminated from
the table (is set as first in the new sequence), then the
respondent most similar to the eliminated one is
searched for and also eliminated. The same strategy is
followed until the whole table is worked through.
With the objective to rearrange also the similar an-
swered answers, the eliminating process carried out
with objects is also repeated with traits.
In addition to arranging the data table (relocating
objects and traits), the method also creates a confor-
mity and uniqueness scale among respondents, at one
extreme of which are the respondents answering as
differently as possible (unique, not fitting among
other respondents because of their habit of mind and
outlook) and at the other extreme as conformal re-
spondents as possible – the exponents of general opin-
ion. The respondent-answer groups that appear from
the arranged table make it possible to determine the
optimal number of clusters for cluster analysis.
The cluster analysis was also carried out using
K-means method [17], in case of which the number of
clusters k has to be defined first – according to the
information gained from the conformity analysis of
the current research, the objects were divided into
four groups. The mentioned method includes combin-
ing through all options and one criterion is that the
average standard deviation to be as low as possible
(i.e. the variation of respondents’ answers within one
group to be as low as possible).
3. Research results
3.1. Personal traits: psychological portrait of an
entrepreneur
After analyzing the personal traits of the students
based to the entrepreneur’s psychological portrait test
according to the chosen method and considering the
„yes”-answers to the questions of good prerequisites
necessary for an entrepreneur, it appeared that 71,8 %
of the respondents have good prerequisites of becom-
ing an entrepreneur and only 28,2 % do not have
those prerequisites. It must me mentioned that accord-
ing to this criterion many respondents were in the
group of no prerequisites (the so-called poor prerequi-
sites) (33 which was a half) whose sum of points was
very close to the margin and with only one more
„yes”-answer they would have been in the group of
prerequisites characteristic to an entrepreneur. Con-
sidering that, a conclusion can be made that most
questioned students (85 %) have prerequisites of be-
coming an entrepreneur.
Continuing on the basis of visual cluster analysis
according to the personal traits of an entrepreneur (as
a result of grouping the questions), which are self-
confidence, aspiration for independence and readiness
to take risks, the size of a so called typical entrepre-
neur’s cluster can be estimated to be only 15 % (of all
respondents). At the same time inside this group there
are an equal number of people who dare to take risks
and those who avoid taking them. According to indi-
vidual traits the most typical one is (on the basis of
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INTERNATIONAL ECONOMY: PROBLEMS OF INNOVATION AND MARKETING MANAGEMENT
frequency of answers) aspiration for independence,
followed by self-confidence, then comes risk-
evasiveness and only on the fourth place is readiness
to take risks. It can be therefore concluded that risk-
evasiveness influences most the behaviour of respon-
dents in the opposite direction of entrepreneurship.
Most unconventional answers indicate most often low
self-esteem or dependence on external forces and non-
aspiration for independence.
When analysing the personal traits (or grouped
test questions) by using the method of K-means the
objects were divided according to information ob-
tained from conformity analysis into four groups (Ta-
ble 1). Visually found values of three attributes of a so
called typical entrepreneur coincided completely with
cluster 3 indicators found by using the K-means
method, these characterise aspiration for independ-
ence (R4), readiness to take risks (R5) and risk-
evasiveness (R6). Fourth attribute that indicates self-
confidence is strongest in cluster 3, after that also in
cluster 2. Least “no”-answers to entrepreneurship are
given by the respondents of cluster 3, especially in
case of such attributes as self-confidence and aspira-
tion for independence. It follows that according to the
analyses done by using visual and K-means method
the respondents with entrepreneurial personal traits
are located in the two middle clusters. Less entrepre-
neurial students are in cluster 1, where the values of
attributes show that more “yes”-answers are given to
attributes that are not characteristic of entrepreneurial
behaviour.
The conformity analysis of the individual ques-
tions of the psychological portrait test of an entrepre-
neur helps to explain which attitudes in answering
questions influenced the division of the respondents
into clusters. According to conformity in answering
the questions we can estimate the existence of two
extreme clusters, whereas the most conformity is ap-
parent for 14 % of respondents (33 respondents), most
different were 35 % of respondents (83) out of the
sample. At the same time according to attitudes char-
acteristic of an entrepreneur it is possible to visually
differentiate very clearly uniformed groups when an-
swering certain questions, whereas the basis of divi-
sion into visual cluster can be both yes-answers to
questions characterising entrepreneurship as well as
no-answers that on the contrary do not characterise
entrepreneurial behaviour. The visual cluster analysis
showed certain fluctuations in answering questions,
which can be caused by understanding questions dif-
ferently and/or subjectivity in giving self-valuation.
According to the scale of uniqueness the unique
respondent is so called non-entrepreneurial (almost
9 % of respondents) and typical respondent is “entre-
preneurial”. Among the latter it is possible to distin-
guish a group of “typical entrepreneur” (36 % of re-
spondents), characterised most by aspiration for
independence, readiness to take risks and self-
confidence. In the middle of this cluster there are still
located like on the conformity scale two questions that
are not characteristic of entrepreneurship, which indi-
cate rather the dependence of respondents on external
influences and risk-evasiveness than self-confidence
and readiness to take risks. The analysis indicates
therefore that the so called “purely entrepreneurial”
clusters are relatively small, the typical respondent is
hesitant at least in terms of two personal traits, firstly
in terms of readiness to take risks and then in terms of
self-confidence. This can be explained to large extent
by little knowledge that the young people have about
business management and lack of practical experi-
ences. The implementation of study programmes ac-
cording to the needs of target groups would help to
ascertain entrepreneurship prerequisites and develop
entrepreneurship competency.
If we compare the division of respondents into
groups on the conformity-uniqueness scale and the
characterisation of existence of prerequisites for be-
coming an entrepreneur of the authors of the test, then
these analyses overlap in big part. When looking at
the results of the study it can be concluded that cluster
analysis enabled to clearly separate respondents with
good prerequisites from others or from those respon-
dents without prerequisites. Still the scale given by
the authors (R. Hisrich and M. Peters [14]) for the
evaluation of the existence or absence of prerequisites
Table 1. Analysis on the psychological portrait of an entrepreneur using K-means method, according to the division on entre-
preneur’s personal traits.
Cluster 1
(17 % of respondents) Cluster 2
(27 % of respondents) Cluster 3
(26 % of respondents) Cluster 4
(30 % of respondents)
Averages of
traits St. devia-
tion Averages of
traits St. devia-
tion Averages of
traits St. devia-
tion Averages of
traits St. devia-
tion
R1
R2
R3
R4
R5
R6
5.2609
5.7826
4.913 6.087
4.4783
3.6957
0.81
0.7359
0.7928
0.996
0.9472
0.7029
5.3415
4.7805
5.4878
4.4146
3.3415
0.4801
0.9086
0.81
0.6699
0.4801
0.7746
6.8125
4.5625
6.3542
4.5208
3.1458
4.2708
0.6734
0.7693
0.6992
0.652
0.3567
0.7363
6.4667
5.1556
5.6444
4.7556
4.4889
0.7261
0.7674
0.7433
0.7433
0.4954
0.626
Note: The description of personal traits is the following: R1- dependence on external influences; R2- self-confidence; R3-
non-aspiration towards independence; R4- aspiration towards independence; R5- readiness to take risks R6- risk-evasiveness.
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INTERNATIONAL ECONOMY: PROBLEMS OF INNOVATION AND MARKETING MANAGEMENT
characteristic of an entrepreneur is done so with cer-
tain degree of variability. Some differences can be
explained by a certain degree of subjectivity in under-
standing the questions and by difficulties in giving an
objective evaluation. These results refer to a need to
look in further studies for new methods in order to
check the results received and to "develop" the for-
mula of calculating the so called “good entrepreneur”.
3.2. Entrepreneurial competency (competences/
skills)
Due to the need to develop personal traits and
competences necessary for an entrepreneur (e.g. crea-
tivity, recognising business activities, innovativeness,
ability to find solutions and make deals) it is the task
of educational institutions and also institutions carry-
ing out entrepreneurship policy to direct study pro-
grammes to developing students’ skills according to
the needs of specific target groups. Carrying out cor-
responding studies supports the mapping of these
needs. The study that the present article is based on
relies on self-evaluations made by the students, where
their understanding of entrepreneurship and assess-
ments given to several other skills could be helpful in
planning study programmes. Since the entrepreneurial
skills are manifested through behaviour and activities
of persons, they could be observed and changed more
easily than personal traits [18]. This idea places more
importance on the role of educational institutions to
better prepare potential entrepreneurs among the
graduates of educational institutions. At the same time
it is important to know the division into clusters ac-
cording to the skills of respondents in order to evalu-
ate the size of different target groups.
According to the analysis of “yes” and “partly
yes” answers to entrepreneurial competence (or skills)
the bigger part of students (93,8 %) has the skills to
evaluate different activities from the stand-point of
ethics and morale, skills to obtain what belongs to
them (93,1 % of respondents) and skills to pass sev-
eral other judgements (e.g. evaluate ones activities
and the external environment) and make contacts
(Table 3). It is understandable that due to the absence
of practical experiences more than half of the respon-
dents did not have the skills to manage a small enter-
prise and fourth of the respondents (26,1 %) did not
have the skills to make deals. In addition to the need
to acquire (study) the aforementioned skills it is im-
portant to add to them the topics listed in table 3 like
the skills to develop new business ideas, get a clear
overview of entrepreneurship and also other themes,
which are considered by the respondents as skills that
they currently do not possess, but which should be
covered by the entrepreneurship study programmes.
Conformity and uniqueness scale provides the
opportunity to evaluate visually rather small groups at
the beginning and at the end of the scale (~4–13 % of
respondents), whereas the most typical respondent
seems to be a person who says that he partly has the
skills mentioned in the test (except for the exceptions,
see Table 3), that according to the average values of
the attributes coincide in big part with cluster 2 values
(Table 4), although it was not possible to find very
exact match with visually found clusters. It can be
concluded from this that the group of students under
Table 3. Entrepreneurial skills, share of respondents, %
Do you have them?
No
No
of
trait Main skills Yes Partly No Do not know
1. T7 Skill to manage a small enterprise 15,5 30,2 53,5 0,8
2. T5 Skill to develop new business ideas 18,4 51,4 30,2 0,0
3. T11 Skill to make deals 24,9 47,8 26,1 1,2
4. T1 Clear understanding of entrepreneurship 13,9 63,7 22,4 0,0
5. T4 Skill to behave and pass decisions under the conditions of uncertainty 29,4 54,7 14,7 1,2
6. T3 Skill to find unconventional solutions 38,4 48,6 12,7 0,4
7. T12 Skill to make contacts, negotiate 39,6 47,3 12,7 0,4
8. T8 Ability to evaluate the results of different activities objectively 39,6 47,3 12,2 0,8
9. T6 Skill to evaluate the perspective for new ideas 37,1 49,4 11,8 1,6
10. T2 Skill to make grounded judgements 38,0 50,2 10,6 1,2
11. T9 Skill to evaluate the external environment 25,7 62,9 9,8 1,6
12. T13 Skill to obtain what one owns 49 44,1 6,1 0,8
13. T10 Skill to evaluate different activities from the perspective of ethics and morale 66,9 26,9 5,3 0,8
Note: The ranking of skills characteristic of an entrepreneur is presented according to negative answers or higher up are skills
the respondents claimed to possess the least.
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INTERNATIONAL ECONOMY: PROBLEMS OF INNOVATION AND MARKETING MANAGEMENT
Table 4. The analysis of the main skills of an entrepreneur using K-means method
Cluster 1
(31 % of respondents) Cluster 2
(35 % of respondents) Cluster 3
(14 % of respondents) Cluster 4
(20 % of respondents)
Averages of
traits St.
deviation Averages of
traits St.
deviation Averages of
traits St.
deviation Averages of
traits St.
deviation
T1
T2
T3
T4
T5
T6
T7
T8
T9
T10
T11
T12
T13
2.0408
1.8163
1.7551
1.7755
1.7959
1.3673
2.5918
1.8571
1.7347
1.2245
2.449
1.9184
1.6531
0.4546
0.5654
0.6931
0.771
0.4555
0.6019
0.6429
0.736
0.5313
0.4216
0.5025
0.5714
0.5969
2.6111
2.0556
1.9444
2.1389
2.7778
2.0556
2.8333
1.8056
2.0833
2.4444
2.3056
1.8056
0.4944
0.5315
0.6738
0.5929
0.4216
0.6299
0.378
0.7099
0.5542
0.6094
0.6068
0.6242
0.6242
1.8286
1.6857
1.7714
2.4571
1.8571
1.3429
1.7714
1.3429
1.2286
1.3429
1.4286
0.5137
0.6761
0.6774
0.6456
0.5054
0.6482
0.6945
0.5392
0.4902
0.6835
0.547
0.5392
0.5576
1.6585
1.1707
1.3659
1.561
1.4878
1.4634
1.5122
1.4878
1.4146
1.3902
1.4878
1.2195
1.1951
0.4801
0.4951
0.5812
0.6726
0.5061
0.5957
0.6373
0.6373
0.5906
0.6276
0.5533
0.475
0.5109
Note: The numeration and explanation of traits are brought out in Table 3.
study is rather heterogeneous in terms of their skills.
The analysis of the impact of answers to self-
evaluation questions of entrepreneurial competency
shows also that respondents with partial skills have
the most impact. In order to organise the study pro-
grammes better it is important to find a possibility to
determine the target groups more specifically by ana-
lysing the relationships between the answers to the
questions of the questionnaire.
The analysis of the relationships between the an-
swers to the questions enables to make some rather
logical conclusions. For example students, who said
that they are unable to manage a small enterprise have
also answered that they cannot make contacts (13 %
of sample), find innovative solutions (13 %), have no
clear understanding of entrepreneurship (22 %) and
cannot make deals (26 %). So more than two-third of
the students are in need of entrepreneurship training
and of acquiring practical skills in the aforementioned
areas that are necessary for obtaining knowledge
about managing an enterprise. In the same group of
respondents there is also a big part of those who do
not have a clear understanding of entrepreneurship
together with the lack of some other skills in the area
of implementing business ideas. On the other hand,
those who wrote that they are able to evaluate deals
from the stand-point of ethics and morale, have sev-
eral other skills as well (answers “yes” or “partly”) in
the area of managing an enterprise, in evaluating the
results of their actions and in finding solutions. In
terms of relationships of answers of the last group of
respondents, there were no answers saying that they
cannot do something. It can be therefore assumed that
they have basic entrepreneurial skills at a certain level
and are in need of specialised education the content of
which needs to be further specified before starting
with the course.
4. Conclusions
Raising the level of entrepreneurial activity has
been lately in the focus of discussions in the member
states of the European Union, the purpose of which
has been the initiation of several political measures
and activities in order to support the creation of new
enterprises and jobs. Also the main objectives of the
Estonian entrepreneurship policy are to develop en-
trepreneurship and the growth of the number of new
enterprises and raise the competitiveness of enter-
prises. Currently the idea that entrepreneurial skills
can be studied is supported more and more. In this
context it would be interesting to know, which is the
potential of Estonian youth in connection with entre-
preneurship and what aspects entrepreneurship policy
and educational programmes should consider in order
developing entrepreneurship competency.
The analysis of the test of psychological portrait
of an entrepreneur showed that most of the students
who participated in the study have prerequisites for
becoming an entrepreneur (self-confidence, aspiration
for independence, readiness to take risks), although
the so called “purely entrepreneurial” groups are rela-
tively small and the typical respondent has been hesi-
tant in case of several test questions, which shows
firstly risk-evasiveness of respondents and after that
dependence on external forces. This can be explained
in big part with little knowledge that young people
have about Business Administration and the lack of
practical experiences. Some variances in answering
the questions can depend on the fact that people may
have understood questions differently and/ or differ in
their assessments when giving subjective self-
evaluations. This result refers to the need to look in
further studies for new methods in order to check the
results and "add to" the methods of evaluating the so-
called “good entrepreneur”.
459
INTERNATIONAL ECONOMY: PROBLEMS OF INNOVATION AND MARKETING MANAGEMENT
Due to the need of developing personal traits and
skills necessary for an entrepreneur it is the task of
educational institutions and also of institutions im-
plementing entrepreneurship policy to direct study
programmes towards developing the skills of students
according to the needs of specific target groups. The
respondents thought that they lacked knowledge most
often about the following topics: management of
small enterprise, developing new business ideas, mak-
ing deals, making decisions under uncertain condi-
tions, clear understanding of entrepreneurship, finding
unconventional solutions. Although the group of stu-
dents that participated in the current study was rather
heterogeneous in terms of its skills and indicated that
respondents who had partly the prerequisites neces-
sary for an entrepreneur had the most impact, it was
possible to distinguish between two groups with dif-
ferent levels: the first one was lacking of basic skills
and the second one had them at least partly. It is there-
fore necessary when planning study programmes to
specify the needs of the target groups and as the study
showed there is a need for different study pro-
grammes.
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