Learning to be an entrepreneur means building connections as well as studying business

Entrepreneurs drive innovation, create jobs, and contribute to economic growth. But entrepreneurship is not just about having a brilliant idea. It requires skills that often must be learnt.

Structured entrepreneurship education is designed to give people the knowledge they need to start and run their own businesses. It is typically provided through university courses, business schools and specialised training programmes. It includes a variety of subjects: business planning, financial management, marketing and innovation.

However, there is a significant gap between traditional entrepreneurship education and the practical ways in which entrepreneurs actually learn.

Traditional entrepreneurship education often focuses on theoretical knowledge and structured business planning. These aspects are important but they tend to overlook the dynamic and practical aspects of entrepreneurial learning. Entrepreneurs learn through experience, experimentation and, importantly, through interactions within their social networks.

We carried out research^[1] to explore how entrepreneurs learn. We observed working practices in five co-working spaces, held discussions with 41 people and carried out more structured research interviews with six entrepreneurs.

Our findings suggest that relationships and social networks play a vital role in entrepreneurial learning. These networks provide support, advice, and opportunities that are often missing from traditional education settings.

We found that co-working spaces act as communities where entrepreneurs collaborate, share knowledge, and support each other. This environment fosters innovation and provides an opportunity to keep learning while working.

One entrepreneur told us that spending time in a co-working space filled with other people working on their own businesses showed them how much they had to learn. “After that I decided to put myself out more, now I see how people talk and sell themselves or learn to do that just by communicating.”

We found that entrepreneurs heavily rely on their social networks for learning and development. These networks include family, friends, mentors and professional contacts.

Many entrepreneurs told us how important collaboration, feedback and learning from each other’s experiences was to their own education. Building a network of fellow entrepreneurs gave them insights into the realities of starting a business and examples of issues that might have been merely theoretical at university.

For instance, several of the entrepreneurs we interviewed emphasised the importance of preparing students to manage uncertainty. They argued that understanding and coping with uncertainty and failure are essential for developing resilience.

One noted: “It is very unlikely that they’d succeed in their first launch. It sounds negative, but it’s true. All my friends who are or were involved in startups faced plenty of problems.”

Another highlighted the need for realistic goal-setting: “Universities need to teach people how to think small. Many businesses that students start will be SMEs (small and medium-sized enterprises) not phenomenons.”

Additionally, they stressed the need to refine ideas through feedback. “Business ideas are gemstones; you get them uncut and rough, and by sharing and getting feedback, you shape them into a diamond.”

Based on our findings, we believe that there are several ways universities could integrate this real-world learning into entrepreneurship education. Practical elements such as internships, projects and simulations that reflect real challenges should be part of entrepreneurship courses.

Students should have the opportunity to develop, test and refine their ideas in a supportive environment. This hands-on experience helps students develop practical skills and resilience. Role-playing and scenario-based learning could also help students to manage uncertainty and learn from failures.

Networking events, mentoring programmes and collaborative projects with industry professionals would help students build and sustain professional networks. Creating teams of students from different disciplines working on entrepreneurial projects could lead to innovative thinking and problem-solving.

Partnering with local co-working spaces could provide students with access to real entrepreneurial environments. These spaces offer a supportive community and practical resources.

Entrepreneurs play an important role in the economy and starting a business is an ambition for many. In 2023, a significant proportion^[3] of working-age people in the UK – just under 30% – were running their own business, trying to set one up, or intended to start one in the near future.

Our research highlights the crucial role of social networks in entrepreneurial learning. Rethinking how entrepreneurship is taught can better prepare people for the challenges of starting a business – and give them a better chance of success.

References

1. ^{^} carried out research (doi.org)
2. ^{^} Tint Media/Shutterstock (www.shutterstock.com)
3. ^{^} significant proportion (theconversation.com)