A shift in attitude demands that the entrepreneurial mindset becomes of second nature to the new generation. But how do you instill the entrepreneurial mindset? Can entrepreneurial values be taught?
Starting from today, this decade will be knownas the decade of entrepreneurs. Thrust to the center-stage of policy making, entrepreneurs will provide an unconsummarable contribution to ensuring long-term growth, reducing unemployment, innovation and creating a knowledge-based economy. The existence of entrepreneurs goes beyond the economic, technological and social impacts they may have within a given environment; entrepreneurs are enablers of change. They provide a dynamic revolution within established practices and concepts, ensuring that a progressive shift in business and cultural values occur; enabling a constant production of new knowledge, innovations and opportunities which ensures competition, and fosters excellence.
Creating conducive environments for entrepreneurship is a priority for economies which seek to transition to knowledge-based societies. Although the institutional and financial environment of transitional economies are regarded as the foremost barriers to entrepreneurship, the modification and updating of these regulations will only have a significant impact if the cultural mindset of society shifts. Entrepreneurship should become a requisite across all layers and roles within society, as the behaviours associated with this concept cannot be solely confined to becoming a business owner, or setting up a venture. Rather, the true concept of entrepreneurship, entails developing new attitudes, behaviours and capacities which enable individuals to pursue opportunities, and commit to different goals and values. By instilling an entrepreneurial spirit within society, this encourages new ways of thinking and behaving.
The issue remains that unlike traditional education provided, no generalizable entrepreneurial education curriculum exists, although it is far more adaptive and flexible in terms of providing new teaching and learning innovations than the classroom. Entrepreneurship education holds the advantage of developing a diversified range of skills, which can be adapted to new practices, models, markets and competitiveness demands. It fills the void of technical and personal capacities not actively developed within a national curriculum. Often, youth or aspiring entrepreneurs who participate in such programs are in need of skills and knowledge which have an immediate value to their personal or professional goals. The difficult lies in complementing the needs of aspiring entrepreneurs, by providing both formal and informal skills, which not only have a utility to their immediate needs, but which will shape the manner in which they perceive entrepreneurship, employment and their roles as economic and social actors. Providing a right balance between technical and business know-how, and personal entrepreneurial qualities such as risk-taking, creativity and innovation is key to developing transferrable skills and individual entrepreneurial traits. It is also largely perceived that individuals that believe they have the skills and knowledge to become entrepreneurs are most likely to become entrepreneurs, as they will have the skill set which will facilitate access to knowledge, finance, networks and support.
Informal support is often the most valuable asset which can be obtained through entrepreneurial education. Mentoring by successful entrepreneurs or business role models; access to networks created through the program support structure, and entrepreneurship counseling are but a few of the differentiating factors which really provide an added-value for individuals who benefit from such initiatives. Educators, trainers and mentors should have the relevant entrepreneurial experience, and provide a framework which is linked to practice, and ‘learning by doing’. Experiential learning provides the best training tools, enabling knowledge to be acquired through practice and action, enhancing individual entrepreneurial capabilities. Whether entrepreneurship education is given within a ‘real organizational’ setting, or at weekend training camps, it is essential that training and mentoring is given by a multiple set of actors, who can each bring to the table a different set of skills and experiences which complement each other. Indeed, evidence has shown that training is most effective when different organizations collaborate together, creating not only a more interactive environment, but a greater scope for knowledge diffusion and best practices. Access to a community role model, to a successful entrepreneur, or, even better, an entrepreneur who has succeeded on the back of failure is invaluable to fostering a change in perceptions.
Although it has been argued that entrepreneurial education in developing countries should focus on the acquisition of basic skills rather than more sophisticated training, this is a detrimental to providing youth with the ability to generate commercializable knowledge and innovation, and developing an entrepreneurial mindset. Youth no longer wish to become entrepreneurs for sustainability, but rather because they wish to contribute and compete on the global market. With the advent of generation Facebook and Twitter- knowledge, opportunities, networks and expansion are but a click away. Instead than focusing solely on the core skills needed to succeed in the workplace, entrepreneurial education programs should shape youth to grow- whether this is in the form of a new business venture, or on the career ladder. By developing an attitude which is fashioned towards growth, a mindset can be instilled which influences an individual’s ease and willingness to take an active part in their own personal development, make available, and act upon opportunities.
Developing the entrepreneurial mindset through training and education helps individuals and aspiring entrepreneurs to develop the propensity and ability to enterprise. By recognizing the importance of entrepreneurship, and celebrating the achievements of entrepreneurs, this will increase the social recognition of entrepreneurial types of behavior. More often than not, it is not the desire to be entrepreneurial that is lacking, but the ability to do so. By mainstreaming entrepreneurship education, such behavior becomes socially acceptable, and even desirable, transforming a stigma into an achievement.
In order to achieve this, more entrepreneurial education programs should be made available, and policy-makers and institutions should ensure to broaden access beyond universities and specialized programs. A more comprehensive effort should be made to cooperate between entrepreneurs, SMEs and institutions in order to provide a distinct set of applicable skills, lessons and experiences which are adaptable to the needs and environment of the individual. Localized schemes should be favored rather than programs implemented by foreign assistance, as the cultural mindset and skills have to be designed specifically for the given environment to be effective. Specifically, entrepreneurial education models have to be designed for, and in assistance with the local population, to suit the opportunities and market sectors available within the area, and to have entrepreneurs and community role models which individuals can be inspired by, and relate to. Entrepreneurship education incentives promote local innovation, technological development and research, which have a spillover effect on local opportunities, capabilities and institutions. For this purpose, technology should actively be integrated, as it not only develops core competencies needed, but can help reach larger audiences, and develop interactive and locally relevant program materials, which respond better to the learning techniques demanded by a younger generation.
If entrepreneurship and education are teamed-up effectively, such programs play a crucial role among society in developing entrepreneurial propensity among youth. By realizing the need and impact of being able to access valuable skills and knowledge, entrepreneurial education becomes truly successful when individuals create a sense of ownership to its content, transforming into an incubator for creativeness, problem-solving and innovation. It would be beyond optimistic to state that all individuals who take part in such programs will then go on to becoming self-employed or business owners. There is a large difference between entrepreneurial education, and entrepreneurship training support. Rather than focusing solely on generating entrepreneurs in its business-related definition, entrepreneurial education is about providing the aspiration and ability to break barriers, create opportunities, promote leadership, and encourage initiative. This is the development of the entrepreneurial mindset, which arms an individual to seek success and enable change, transforming the entrepreneurial landscape of the 21st century. Entrepreneurship may not always come by nature, but it is a value and a behavior which must be nurtured among future generations.
©Tatjana de Kerros
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Jamal A. O. Al Akkad
November 27, 2010
Interesting article Tatjana, you always open doors and windows for windy discussion and these days it is frrezing here in London! However, the issue is under huge debate and discussion. For me, training should be pure business/commercial based training, not inspiring/ motivational based. I will provide you by my DBA dissertation work which is focusing on this issue in emerging economies. Keep the good work. Who knows, we may write something together in the near future. I like your quality of thinking. Best, J.
Tatjana de Kerros
November 27, 2010
Thank you Jamal- It is always a pleasure to read you and share opinions regarding entrepreneurship. Your comment is very interesting as it is true that this is an issue under debate. However, I wrote this article in mind that there is a fundemental difference between entrepreneuriship education, and entrepreneurial training and support- which is, as you wrote, purely business-based/management/ growth oriented training.
Rather, entrepreneurial education, especially among youth and aspiring entrepreneurs, is to develop the culture and propensity of entrepreneurship. Developing 21st century skills which are both technical, business-oriented, and leadership, creativity and innovation. In more academic terms, we could call this developing the entrepreneurial orientation. Individuals who have an entrepreneurial orientation are most likely to become entrepreneurs, and pursue growth and expansion. Entrepreneurship education, specifically for youth, arms them with skills and knowledge which are necessary for the labour market, and business skills which can later be developed. Why do I believe entrepreneurship education is important? It promotes change, and enables a conducive environment at all layers, creating a culture where entrepreneurial behaviour is fostered and supported, whilst providing knowledge acquisition and spillover. In emerging countries, it also supports traditional education systems which do not embrace the development of certain skills and attributes. If we are to create successful entrepreneurs, youth have to realize the value of creating impact, and this can be nurtured, by being provided with ‘real-life’ organizational skills, experiences and lessons with entrepreneurs, SMEs and organizations.
It would be an honour to read your DBA, as well as my pleasure to write with you. Please do not hesitate if you would wish to contribute to the Entrepreneurialist- your experience and expertise would be highly valuable. Best, Tatjana
Nasir Zubairi
November 28, 2010
I agree with Jamal. The inspiration, mindset and orientation to become an entrepreneur is within; it is unleashed and made real through understanding the commercial/business aspects of running a business. Everyone has ideas, most think, no matter how fleetingly, “Wouldn’t it be great if I could make this real?”, but end up dismssing the thought becuase they don’t know how. The inspiration and orientation is a by product of a good business education – realizing that it is not as dificult as it seems to make your ideas a reality. Running a business is 95% about execution, so having the knowledge and skills to do so is the key.
Luella
June 24, 2011
Haha, shouldn’t you be charging for that kind of knoewldge?!
Jerry Friedrich
November 29, 2010
You make some good arguments and I basically agree with most of them but the basis of the issue lies in the following from paragraph2:
“Creating conducive environments for entrepreneurship is a priority for economies which seek to transition to knowledge-based societies.”
This is basically the chicken and the egg argument. Yes, it should be a priority, but it isn’t in most economies. Political, religious and other social issues often have the priority and until the they are educationally astute of the bigger picture this may never happen. So, what will come first, the basic education that leads to that conclusion or the entrepreneurship itself that leads to the education?
Tatjana de Kerros
November 30, 2010
Jerry- Firstly, thank you for having taken the time to read and comment on the article. In my opinion, entrepreneurship education is a manner to shift cultural values, behaviours and attitudes, particularly among youth in regards to self-employment, accessing 21st centure skills, facilitating the transition between school and the workplace and the ability to partake in life-long learning to adapt to change in market demands. I believe creating awareness to the opportunities in the private sector are important, but in final, it is the national strategies and policies which will dictate whether such policies and environment exists. Until now, most transitioning countries have neglected to adapt their national curriculum to provide employment skills and functional competencies to students, in which entrepreneurship education and training can fill the void, if done in close partnership with the private sector. You ask an interesting question. The chicken or the egg. I believe it depends on the economy. Are changes top-up or bottom down? In Saudi Arabia for example, they have an excellent higher education system (KAUST etc) who promote entrepreneurship. Therefore, there strategy is for education to improve bottom down. In most countries however, unless the traditional education system is not updated to the current labour market requirements and international standards, entrepreneurship education is not a full replacement. Rather, it should be used to instill a different attitude, used in coordination with public/private actors and provide insight into the organizational world. Policy and education need to go hand in hand and be demand focused. After all, it is the market which sets the standards.
Rob
November 30, 2010
I can think of probably 10 issues that stifle business and innovation in this country, access to entrepreneurial education is very near the bottom of that list.
Also when you say a ‘knowledge-based economy’ do you think this is desirable or possible to achieve one and does it resemble roughly what we have now?
Keep up the good work..
Tatjana de Kerros
November 30, 2010
There are many barriers which are deterrents to a healthy business environment, innovation and the identification and exploitation of opportunities. Most of them are at a policy level, and some are at a cultural level. Entrepreneurship education is not THE solution, but a component which can help instill mutually-benefical solutions. In my belief, entrepreneurship education has the ability to provide skills, knowledge, awareness and visibility to young people, which are suitable from their transition from education to the workplace, or harness the basic skills and desire to be innovative. I think it is important in this regard to differentiate entrepreneurship education for youth, and training given to entrepreneurs who already have SMEs or are in ideation/conception phase- these are much more management and growth oriented. Nonetheless, access to entrepreneurial education is important, and has been correlated to increased SME creation and economic growth.
In terms of creating a ‘knowledge-based economy’- yes, I believe this is extremely desireable as this leads to increased innovation, knowledge transfer, skilled human capital, sustainability and technological and scientific advancements, again all factors of production interelated to economic growth. According to the WB, there are three stages- opportunity driven/ efficiency-driven/ innovation-driven. All the advanced industrial economies are knowledge driven- whilst developing and transitioning countries are either opportunity driven or efficiency driven. Is the Middle East innovation driven yet? No. According to the WEF Competitiveness Review 2010- only Qatar and Saudi Arabia are in transition from efficiency-driven to knowledge-driven economies. However, by harnessing both the public and private sector, instigating complementary policies which benefits the domestic private sector and FDI, and investing in education and infrastructure (among many other things), we may see the difference in a decade. Knowledge should be unique to each nation and sector, bringing diversification and competitive advantage. Preferably, it should also be new, and not imitative- and this also is changing for the better.
Thank you for your comment, and I hope that you continue reading and commenting!