Aspiring entrepreneurs from all walks of life can start and grow successful businesses if they develop a set of 14 entrepreneurial competencies. This is the key finding of a seven-year academic study conducted by the Allan Gray Orbis Foundation (AGOF) and the University of Pretoria (UP).
The study, titled “South Africa’s Entrepreneurial Competency Framework”, outlines the specific skills and mindsets needed to thrive as an entrepreneur in South Africa’s diverse society. It also provides a practical toolkit and teaching strategies to help schools, universities and training institutions nurture competencies effectively.
Led by Prof Melodi Botha, a leading entrepreneurship researcher at UP, and Carl Herman, head of impact assurance at AGOF, the research aimed to answer two key questions:
- Which entrepreneurial competencies should be developed?
- How can these entrepreneurial competencies be enhanced?
“South Africa’s entrepreneurial competency framework showcases the creation and validation of distinctive entrepreneurial competency frameworks and pedagogies tailored for our school children, university students and entrepreneurs,” said Botha.
The research spanned from 2018 to 2024 and was conducted in seven phases.
Many entrepreneurship education programmes take a generic approach when developing entrepreneurial competencies. They often fail to consider individual learning styles, sticking to a one-size-fits-all method. Even some international frameworks that were tested didn’t quite meet the mark
— Carl Herman, head of impact assurance at AGOF
In phase 1, researchers analysed more than 200 global academic and industry sources to map existing entrepreneurial competency frameworks, identifying 16 major models used internationally.
Phase 2 involved surveying 1,150 South African entrepreneurs and reviewing 228 competencies drawn from global models. After workshops and consultations with experts, this list was refined to 19 key entrepreneurial competencies.
In phase 3, statistical testing revealed that different stages of the entrepreneurial journey required different skills. The team found that six competencies were strong predictors of entrepreneurial action:
- opportunity assessment;
- innovation;
- calculated risk-taking;
- growth mindset;
- leadership; and
- self-efficacy.
During phase 4, AGOF and UP collaborated with 16 industry experts and academics to contextualise the research for South Africa, narrowing the list to 14 essential competencies:
- action orientation;
- autonomy (locus of control);
- calculated risk-taking;
- curiosity;
- growth mindset;
- innovation;
- leadership;
- opportunity recognition;
- opportunity assessment;
- problem-solving;
- resilience;
- self-efficacy;
- value creation; and
- values-driven approach.
In phase 5, the team identified four teaching methods that proved most effective ways for developing these skills:
- idea, opportunity and product development exercises;
- role-play and simulations;
- business plan and canvas development; and
- internships and real business start-up experiences.
The research found that interactive and experiential learning produced better results than traditional classroom teaching.
“What became clear from our work is that many entrepreneurship education programmes take a generic approach when developing entrepreneurial competencies,” said Herman. “They often fail to consider individual learning styles, sticking to a one-size-fits-all method. Even some international frameworks that were tested didn’t quite meet the mark
We invite everyone to envision a South Africa where each entrepreneur, whether budding, emerging or established, has access to entrepreneurial competencies that speak to their individual entrepreneurial profile and journey
— Carl Herman
“Programmes need to address the unique needs and characteristics of different groups to be truly effective — and they need to be interactive and practical.”
In phase 6, researchers analysed demographic data and found that the growth mindset was the strongest predictor of whether someone would start a business regardless of their gender, age or background. For instance, young women under 40 with university degrees showed higher entrepreneurial potential when they demonstrated growth mindset, creativity, value creation and leadership traits.
The final phase addressed a gap in Africa’s entrepreneurship landscape, the lack of a reliable way to measure entrepreneurial skills.
To fix this, the team worked with Prof Alewyn Nel from UP’s human resource management department to develop a validated assessment tool for adults, university students and high school pupils. The tool can measure entrepreneurial competencies across different age groups and provides both full and shorter versions, making it easier to use in various educational and professional settings.
The study found that entrepreneurial competencies were closely linked. “The research showed that improving one entrepreneurial competency can help improve others, as they are often interconnected,” said Herman.
The ultimate goal is to promote entrepreneurship that embraces South Africa’s diversity and individuality, he added.
“We invite everyone to envision a South Africa where each entrepreneur, whether budding, emerging or established, has access to entrepreneurial competencies that speak to their individual entrepreneurial profile and journey.”
TimesLIVE
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