The 5 important skills of an Entrepreneur are listed below;

1. Technical Skills

2. Management Skills

3. Communication Skills

4. Human relation Skills

5. Project development Skills



These are explained below;

1. Technical Skills

It involves specialized knowledge and competence in the use of managerial tools and techniques. It is the demonstration of the ability to perform particular tasks and functions. It refers to the knowledge and proficiency in any type of process or techniques.

Entrepreneurs are dealing with situations where updated and sophisticated technology is involved. They must possess a reasonable level or technical skill.

2. Management Skills

Entrepreneur’s management skill includes planning, co-ordination, administration, control and organizing. In modern age entrepreneurs are persons who organize and direct business units.The factors of production are scattered all round the world.

The entrepreneur brings them together and harnesses them to convert them into finished products. He arranges for the finance, purchases of raw materials, provides the necessary infrastructure for production, sales and marketing and also assumes the role of personnel manager.

3. Communication Skills

An entrepreneur needs to have clarity in his communication. He needs to be clear and crisp and use a language which is understood by the receiver of the communication. Good communication is effective and convincing and is the secret of success of most entrepreneurs.

4. Human relation Skills

It is the ability to interact effectively with people at all levels. This skill helps the entrepreneur to recognize the feelings and sentiments of others and to judge the possible reactions to the course of action he may undertake.

He needs to maintain a good rapport with his employees in order to get the work done, with his customers so that his goods have a demand, with the suppliers so that he gets smooth and continuous supply of materials, with the government so that sanctions are easily received and with his competitors to have a healthy relation while conducting business.

5. Project development Skills

Due to limited resources, an entrepreneur has to systematically evaluate the proposed project based on thorough investigation of their economic and financial feasibility before selecting a viable project.

He should possess the skill of identifying viable projects by analyzing economic and social trends, profitability, capacity utilization and finance and inputs required.

6. Marketing Skills

Once the product is manufactured the entrepreneur is required to design pricing, promotion and distribution strategies to make the product available in the market.

He has to stimulate demand for the product and at the same time satisfy consumer needs. He has to conduct market research to bring about changes in the marketing processes and techniques. He has to develop a marketing plan which includes sales forecasting,setting targets and formulating marketing programmes.

7. Behavioural Skills

Utilization of knowledge to understand people, it requires awareness of attitudes and beliefs held by individuals and groups and how these govern their goal reaching processes.

8. Economic-Business Skills

This skill includes Utilization of knowledge to understand a business enterprise operating in a market for the sale of goods and services.

It involves use of scarce and limited resources to meet changing and unpredictable demands, the strategy of production, distribution and consumption of goods and services with maximisation of output and minimization of input.

9. Implementing Skills

Ability to get the work done on a day-to-day, programme-to-programme basis or the ability to concentrate on availability of resources of time, money and manpower to initiate an activity, conduct the activity and bring it to a successful end.

10. Financial Skills

The success of a business is measured by the profit it makes. It is essential that the entrepreneur has knowledge about managing income and costs. 

The long-term future success of the business is also determined by the type of investments the business makes and how successfully the entrepreneur manages those investments.