The model for measuring the entrepreneurship potential with management competencies

Abstract

Despite the fact that soft success factor, i.e., human capital is becoming more important than economic capital in today's knowledge society, the assessment of the human contribution to corporate results of enterprises remains thoroughly uncharted. Therefore, financial yardsticks for measuring soft factors efficiency must be created. We have conceived the term “entrepreneurship potential« as we are interested in the unlocked value embedded in poorly managed enterprises. We have presented the model which decomposes management capital as part of human capital into three clusters of management competencies on the individual level (cognitive, conative and behavioral-affective). Cognitive and behavioral-affective competencies are dynamic and could be learned; conative competencies are in its essence inborn. Entrepreneurship potential should be valued in quantitative terms and the improvement increments, such as higher revenues or added value per employees, determine its relative value in added value creation.