Why entrepreneurship education should be available to all

India needs to prioritise entrepreneurship education for all.
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India’s ambitious Vision India@2047 policy is ushering in a new era of entrepreneurial activity, marked by initiatives like the Startup India Action Plan and the Fund of Funds for Startups (FFS) Scheme. While these efforts have helped elevate India to second place in the Global Entrepreneurship Monitor’s ranking of entrepreneurial environments, the country still faces significant challenges in nurturing resilient entrepreneurs and fostering the creation of enduring businesses. A recent survey by the National Sample Survey Office (NSSO) reveals that nearly 58% of India’s workforce is self-employed, with 99% running micro-enterprises.

Driving Innovation

Unfortunately, many of those small ventures lack the resources necessary for growth, creating a void where a robust “middle class of business” should exist. More importantly, their founders lack the skills necessary to build enduring ventures we call the middle class of business. What is the middle class of business? Unlike high-growth, high-tech ventures, companies in this category are characterised by stability and endurance rather than rapid expansion. They grow, but steadily over time. Such businesses are crucial to balance the risks associated with small start-ups and the monopolistic tendencies of large companies, driving innovation that can spur both technological and social advancements in a deliberate and sustainable manner.

How can we spur the creation of such businesses, which are the core of any robust economy? The answer lies in providing entrepreneurship education to everyone who has access to education. Much like teaching the scientific method to all students, not just potential scientists, revolutionised society and led to the creation of the middle class; teaching the entrepreneurial method to all, not just potential entrepreneurs, could help foster the creation of the much-needed middle class of business and empower individuals from all backgrounds with the skills to think and act entrepreneurially.

Before investing heavily in wide-scale entrepreneurship education, two vital steps must be implemented. First, a core integrative framework is needed to guide the development of content tailored for diverse educational levels and populations. Second, comprehensive teacher training programmes are essential for effective delivery.

CAVE Framework

The CAVE framework
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The good news is that research has produced the CAVE framework, a structured approach to entrepreneurship education derived from studies of successful entrepreneurs. Both teachable and practical, it serves as a foundation to develop educational content aimed at all students, regardless of their major or educational background. It aligns with the scientific method, illustrating a unique relationship between prediction and control. In entrepreneurship, this relationship highlights how individuals can shape and co-create new futures without relying on accurate predictions.

CAVE stands for Causal, Adaptive, Visionary and Effectual. These represent four different strategic approaches that can help founders navigate the uncertainty inherent in new-venture creation:

Causal: Relies on prediction and planning

Adaptive: Focuses on pivoting and adapting to the environment

Visionary: Seeks to compel the world to follow

Effectual: Prioritises co-creative efforts among various stakeholders to shape and influence new outcomes and futures.

By embracing this framework and prioritising entrepreneurship education for all, India can build the foundation for a prosperous future, much like the advances brought about by science education in previous centuries.

Saras D. Sarasvathy is the Paul Hammaker Professor at the University of Virginia’s Darden School of Business, the U.S., and the Jamuna Raghavan Chair in Entrepreneurship at IIM-Bangalore. Aman Bhuwania is an Assistant Professor at the Goa Institute of Management.