Which common entrepreneurial competency is described by they are always enthused to improve and develop new products and services and introduce them to the market?

Is there such a thing as a ‘natural-born entrepreneur’? According to this Idea there is not. Specific techniques and habits must be practiced and developed by all would-be entrepreneurs. And as well as business competencies, entrepreneurs need interpersonal and self-leadership skills too; however, these are often overlooked. Read on for advice on how to build and put these skills into practice.

Idea Summary

Are entrepreneurs born or made? Commonly, characteristics such as risk seeking, assertiveness and vision are considered typical of a successful entrepreneur. But these are innate predispositions or aspects of temperament; by using them as yardstick, it is wrongly concluded that only certain types of people make good entrepreneurs or are capable of worthwhile innovations. Instead, this Idea proposes that ‘entrepreneurial behaviour’ can be learned and developed.

The question is not who entrepreneurs are, but what they do, and more important than business skills can be other competencies that provide a foundation for those business skills.

The research behind this Idea is based on empirical studies of hundreds of entrepreneurs, which revealed that entrepreneurial behaviour is the result of a combination of:

strong motivation to achieve something; and
the capabilities to achieve it.

Furthermore, there are three levels of competencies, which all entrepreneurs need:

Personal competencies: creativity, determination, integrity, tenacity, emotional balance and self-criticism.
Interpersonal competencies: communication, engagement/charisma, delegation, respect.
Business competencies: business vision, resource management, networking, negotiating skills.

Previous research has also highlighted other competencies that make up the ‘ingredients’ of a successful entrepreneur, including initiative, ambition and even luck.

Business Application

Though the key take away from this Idea is that entrepreneurship can be learnt by anyone, it’s not something that can simply learn in a classroom. Even once key business knowledge has been acquired, the entrepreneur still has to learn how to use it in practice - something that can only be done through practice. In this respect, ‘leaning by doing’ is useful. Other tips include the following:

Have a clear understanding of industry evolution, knowledge of the effects of globalization, techniques for developing markets, etc. Some training in an academic environment (e.g. business schools) may help with this, particularly where case methods/working groups are used to teach.
Practice developing your interpersonal competencies. Certain skills, such as communication, delegating and respecting others can only be acquired through practice and developing ‘habits of character’.
Habits of character may not strictly be related to business but are to do with the kind of person the entrepreneur is and what he/she does. These are indispensable, alongside ‘technical habits’ and ‘skills’.
The only way to acquire the habits essential for entrepreneurs is by acting in a way consistent with them. Only then do these habits become the ‘driving force’ of successful entrepreneurial ventures.

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The capacity to apply higher- level, process-oriented thinking, consider an issue from a range of possible perspectives, and use that reasoning to make decisions.

The ability and willingness to change actions and plans to overcome present and future challenges.

The ability to clearly express ideas to an intended audience, including persuading others to work towards a common goal.

The capacity to move forward with a decision despite inevitable uncertainty and challenges.

The power to take ownership of a project without input or guidance and work through obstacles independently.

An optimistic disposition with a focus on obtaining the skills and knowledge required to transition into a career.

The practice of seeing and experiencing problems as opportunities to create solutions.

The ability to think of ideas and create solutions to problems without clearly defined structures.

An entrepreneurial mindset is a set of skills that enable people to identify and make the most of opportunities, overcome and learn from setbacks, and succeed in a variety of settings. Research shows that an entrepreneurial mindset is valued by employers, boosts educational attainment and performance, and is crucial for creating new businesses.

NFTE incorporates the entrepreneurial mindset in all that we do.

Our awareness programs introduce students to entrepreneurial concepts and our classrooms and camps embed NFTE’s entrepreneurial mindset domains into the curriculum, providing students with tools to assess and reflect upon their entrepreneurial mindset.

You can learn more about entrepreneurial mindset in NFTE’s whitepaper, On Ramp to Opportunity.

Developing and measuring an entrepreneurial mindset is integral to NFTE’s work, driving our vision to activate the entrepreneurial mindset of an entire generation. Working with researchers at the Educational Testing Service (ETS), and with signature support from EY, we designed the Entrepreneurial Mindset Index (EMI)™ to measure mastery in eight core domains that we have identified as critical to entrepreneurial thinking.

NFTE’s EMI is a largely reliable and valid instrument to measure entrepreneurial mindset. The eight domains are captured with Likert items (questions that ask students to self-report agreement) and Situational Judgement Tests (questions that ask students to respond to a real-world scenario that is tied to a domain). You can learn more about NFTE’s development of the EMI and our latest research on entrepreneurial mindset in our whitepaper, Measuring Entrepreneurial Mindset in Youth.

In recent years, educators have been rethinking the skills students need to be successful. With an eye towards career and college-readiness, many states and school districts are expanding their focus to include important “non-cognitive” skills such as critical thinking and problem solving.

The entrepreneurial mindset pairs these traditional non-cognitive skills with the quintessentially entrepreneurial skills demanded by today’s innovation economy. Research shows that developing an entrepreneurial mindset helps students engage in school, boosts educational performance, and is valued by employers.

Recent publications:

Relationship Between Entrepreneurship Education, Entrepreneurial Mindset, and Career Readiness in Secondary Students (Journal of Experimental Education, 2020)

The Entrepreneurial Mindset and the the Future of Work (Joint research brief developed by EY and NFTE, 2019)

Measuring Entrepreneurial Mindset in Youth Whitepaper (NFTE, 2018)

On Ramp to Opportunity Report (NFTE, 2017)

NFTE’s “Operation Mindset” introductory module activates the entrepreneurial mindset in students, leveraging experiential learning activities and digital resources. Students who participate in Operation Mindset get to explore our eight domains of the entrepreneurial mindset through this interactive digital learning tool.

NFTE’s Entrepreneurial Mindset Index (EMI)™ also serves as a resource for students and teachers in NFTE programs. The EMI is a tool to develop entrepreneurial awareness and build upon the entrepreneurial skills and behaviors that instill career readiness.

Students receive a personalized report of their entrepreneurial mindset upon completion of the EMI. Based on their top three self-report domains, students can learn about their EMI archetype and explore other archetypes as they begin their entrepreneurial journey. Students create a personalized action plan based on these results and have an opportunity to take the EMI again at the end of the program to reflect on their progress throughout the NFTE experience.