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What Are the Skills and Competencies Needed for the 21st Century Entrepreneur?''

In: Business and Management

Submitted By emmanuelessien
Words 1360
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The emphasis on knowledge, service, and information in the new economy creates space for more new firms to emerge, and exerts pressures on existing companies to hire employees with higher level skills in order to compete successfully. The increased demand for a highly skilled workforce has contributed to the rising importance of obtaining a college education. However, recent studies indicate that newly hired college graduates do not excel in these higher-level knowledge and information based skills at the level that employers desire. Entrepreneurs have also indicated that the shortage of highly skilled workers inhibits the growth and development of new entrepreneurial firms. In response to this there have been multiple calls for educators at all levels to recognize the challenges and opportunities in today’s economy and to ensure that students develop the “21st century” knowledge, skills, and abilities (KSAs) they need. A closer look at these 21st century KSAs alongside research and data on entrepreneurial competencies reveals a meaningful overlap between the two. This overlap can be developed into a useful heuristic to determine appropriate outcomes for assessment of undergraduate entrepreneurship programs. Sample outcomes and program assessment processes are illustrated and discussed.
As the “new” economy of the 21st century continues to develop around knowledge, service, and information based activities, a company’s ability to create and commercialize knowledge has become tantamount to its ability to generate sustainable returns (Apte,
Karmarkar, & Nath, 2008; Audretsch & Thurik, 2000; Black & Lynch, 2003; Ewing Marion
Kauffman Foundation, 2007). This emphasis on knowledge, service, and information creates space for more new firms to emerge, but also pressures existing companies to hire employees with higher level skills in order to compete successfully. Among other things, this demand for a more highly skilled workforce has contributed to the rising importance of obtaining a college education. Today in the U.S. a college degree is generally considered a necessary step on the way to a vital career however, recent studies indicate that newly hired college graduates are not as adept in these higher-level knowledge and information based skills as employers expect and
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Journal of Entrepreneurship Education, Volume 15, 2012 need (Cavanagh, Kay, Klein, & Meisinger, 2006; ASTD, 2009). In addition, practicing entrepreneurs have indicated that the shortage of highly skilled workers inhibits the growth of their own companies as well as the development of new entrepreneurial firms (Ewing Marion
Kauffman Foundation, 2007). In light of this, and in order to ensure the ability of the U.S. to compete effectively in the global economy, there have been multiple calls for educators at all levels to recognize the challenges and opportunities in today’s economy and make the necessary changes to educational programs to ensure that students develop the “21st century” skills and abilities they need. The core set of 21st century skills include capabilities in analytical problem solving, innovation and creativity, self-direction and initiative, flexibility and adaptability, critical thinking, and communication and collaboration skills (Autor, Levy, & Murnane, 2007;
Boyd & Vozikis, 1994; Cavanagh et al., 2006; Goldin & Katz, 2008; Ewing Marion Kauffman
Foundation, 2007; Pink, 2008; Porter, Ketels, & Delgado, 2007; Scherer, Adams, & Wiebe,
1989; Wagner, 2008).
Simultaneously, the new economy and the opportunities perceived for new ventures in the areas of knowledge and service have contributed to the groundswell of interest and program development in entrepreneurship education. The number of courses offered in entrepreneurship at institutions of higher education grew from just a few in the 1970s to well over 1600 by 2005, suggesting that today, undergraduate entrepreneurship programs offer widespread fertile ground for students to develop entrepreneurial skills and abilities. However, the current and dominant pedagogical approach to undergraduate entrepreneurship programs in the U.S. stresses a linear and relatively abstract process of new venture creation (Edelman, Manolova, & Brush, 2008;
Hills, 1988; Honig, 2004; Kourilsky, 1995; Soloman, Duffy, & Tarabishy, 2002), which typically emphasizes business planning and deemphasizes understanding and development of entrepreneurial competencies – the knowledge, skills, and abilities that contribute to an individual’s ability to become an entrepreneur. Moreover, when undergraduate entrepreneurship programs are evaluated, success is often defined (and measured) in terms of the number of business plans completed and entered into competitions, student intentions to start a business, and/or the actual launching of a new business (USASBE, 2010). This definition of program success continues despite evidence that new college graduates starting up businesses are quite rare, and most entrepreneurial activity is performed by 35-54 year olds after significant work experience (Fairlie, 2010; Georgellis & Wall, 2000; Shane, 2008). At best, this suggests there are significant conceptual and methodological challenges for evaluating undergraduate entrepreneurship programs, and at worst it suggests these programs may be pursuing the wrong outcomes. A closer look at the KSAs demanded for success in the new economy alongside research and data on entrepreneurial competencies reveals a meaningful overlap between the two. In addition, this overlap can be developed into a useful heuristic to determine more appropriate outcomes for assessment of undergraduate entrepreneurship programs.
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Journal of Entrepreneurship Education, Volume 15, 2012
The term “21st century skills” has pervaded recent literature in the field of education with particular regard to the US’s ability to compete on a long-term basis in the global economy
(Brooks, 2008; Pink, 2005; Rising above the gathering storm, 2007; Vockley, 2008). Research across U.S. industries suggests that the number of high skilled information workers increased from 37% of the workforce in 1950 to almost 60% in 2000 (Apte et al., 2008). The growing demand for a workforce with higher level skills has contributed to the rising importance of obtaining a college education. From 1973 to 2000, Carnevale and Derochers (2002) found that the percentage of workers with some postsecondary education increased by 110%, and the percentage of workers with bachelor’s degrees increased by over 120% over the same time period. Today in the U.S. a college degree is generally considered a necessary step on the way to a vital career and evidence suggests that individuals with bachelor’s degrees earn higher salaries, have better professional mobility, and have more leisure time than those with high school or associates degrees (Day & Newburger, 2002; Institute for Higher Education Policy, 1998).
While college students and their families are certainly aware of the importance of becoming a college graduate, recent studies indicate that newly hired graduates have not mastered these higher-level knowledge and information based skills at the levels that employers expect and need. Empirical data gathered by the American Society for Training and Development (ASTD) revealed that companies rank Leadership, Critical Thinking, and Creativity among the highest skills desired of new employees, and between 10 and 20% of organizations surveyed, rated college graduates as deficient in these skills (ASTD, 2009). Moreover, practicing entrepreneurs have also indicated that the shortage of skilled workers inhibits the growth of their own companies and the development of new entrepreneurial firms (Ewing Marion Kauffman
Foundation, 2007). In particular, the Kaufmann Foundation notes that workers “who not only have twenty-first century skills and knowledge, but who have no fear in putting those skills to work to generate and to commercialize (or help commercialize) new ideas, products, and services” are required for continued success in entrepreneurship in the US (Ewing Marion
Kauffman Foundation, 2007). As a result of these recent findings, there have been multiple calls for educators at all levels to recognize the challenges and opportunities in today’s economy and make the necessary changes to educational programs such that students develop “21st century” knowledge, skills, and abilities (KSAs) they will need as employees, managers and business owners in the new economy (Lemke et al., 2003; Rising above the gathering storm, 2007; Tough
Choices or Tough Times, 2007; Vockley, 2008; Wagner, 2008).
Many non-governmental organizations have developed structured and comprehensive definitions of 21st century KSAs based on demographic, economic, and educational research, and the contributions of experts in the field (Cavanagh et al., 2006; Lemke et al., 2003; Tough
Choices or Tough Times, 2007; Vockley, 2008). While the categorization of these KSAs can differ slightly depending on the organization articulating them, the underlying components of
Page 44
Journal of Entrepreneurship Education, Volume 15, 2012…...

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