Want entrepreneurship? Change mindset!

Thanks to hyper changes in technology, it is one of the first times in human history when we don’t know what jobs will look like in the coming three decades. That message by historian Yuval Noah Harari has been echoing across the developed West since he achieved a rockstar status a few years ago. Here in Pakistan, however, the realisation has not yet set in; neither in public schools, nor even in high-end private schools. Must we always play catch-up?

Globally there is an increasing consensus among academia, policy wonks and business people alike: the skills which will be in highest demand in the ensuing decades will have little to do with subject-matter specialty. These top five skills are: (a) problem solving; (b) communication; (c) teamwork; (d) critical thinking; and (e) creativity. These skills are not learnt through classrooms; learning by doing is what works when it comes to these skills.

In the US and in Europe organisations like Junior Achievement and Jong Ondernemen are busy cultivating these skills as well as entrepreneurial skills to school going children. As early as elementary school – grade 2 to 5 – children are given basic concepts of financial literacy, flow of economy, an introduction to markets in the neighbourhood and the region, whereas their family members are given workshops on why it is important to take risks.

Speaking at the Global Entrepreneurship Summit (GES) held at Hague, Netherlands, this year, Diana Filip, CEO of Junior Achievement-Europe, acknowledged that everyone will not be an entrepreneur. But she rightly pointed out that people would still need entrepreneurial mindset at the workplaces they get employed at. The biennial summit this year was jointly organized by the Dutch and American Ministries of Foreign Affairs.

Diana said that research has shown that when young people are engaged in mini or student companies as CEOs or as co-founders, they go back to school more motivated than before because feel the importance of learning how to manage limited resources such as time, money, and also learn how to manage people. Junior Achievement’s mission is that everyone should have entrepreneurship experience before they leave school.

As argued earlier in this space, another important lesson in entrepreneurship learnt at the side-lines of various sessions at the GES 2019 is that creation of mobile apps alone should not come to define entrepreneurship. (See BR Research’s ‘Entrepreneurship, World Bank and Pakistan’, Nov 14, 2017)

https://www.brecorder.com/2017/11/14/380934/entrepreneurship-world-bank-and-pakistan/

In GES session titled “Young entrepreneurs: spreading entrepreneurial mind-set across Europe”, where Diana was speaking, young entrepreneurs – literally 18-20 year olds – showcased their mini-companies that were selling non-tech solutions; one was selling ice-skate cleaner, and the other furniture made up of recycled washing machine parts. The message to budding entrepreneurs: there is no need to follow the herd of mobile app; what’s more important is that you follow your passion.

The question that gets asked a lot, especially by worrying South Asian parents: do these school-level entrepreneurship encouragement programmes really help. Should children focus on studies first; and start business later in life? BR Research asked this question from a host of entrepreneurs at the GES. Their consensus reply: the number one factor that decides whether you can be a successful entrepreneur is how old were you when you first started your business.

Because the earlier someone learns to manage people and money, and the earlier they learn how to fail and get back up, the longer head start they would have in life, and the more head strong they would be. One Silicon Valley veteran said that school going children in the valley knows very well that “of course they will start a company” – it’s a no-brainer. Whereas here at home if a 20-something starts a company, people say “wow you have started a company”. That difference in culture is what’s needed to be changed.

Some of the ways Pakistan’s culture could be changed is by teaching and encouraging young students to do a business and make them learn the importance of money, even if it’s earned through cleaning the windows of your house or selling cookies in your apartment. To that end, schools should start entrepreneurship encouragement programmes.

Second, the media needs to understand the important of youth; it’s a great target audience, find out their aspirations and mediate it across public and private sector. Exhibitions and festivals – ala literature and food festivals could also be held – to showcase young entrepreneurs. But above all, it’s the parents who have to change their mindset: the biggest trophy is the scars of failure, and starting a company isn’t just for the old people. Let young drive change!