In simple words, the term competence refers to an underlying characteristics of a person which results in effective and or superior performance of a job. It is a unique combination of various qualities and traits that are required to perform the job effectively. It may be the motive, traits, skills, aspects of self-image, or a body of knowledge which the person uses consciously or unconsciously to perform a given task successfully. In order to have a better understanding and idea about entrepreneurial competencies, one should know and understand the various components of entrepreneurial competencies which results in superior performance of a job.