Pandemic was a catalyst for entrepreneurship

Are entrepreneurs born or made?

The pandemic has been the catalyst of an exponential growth in entrepreneurial success. Although it might seem counter intuitive – as the pandemic has been exceptionally hard on small business in particular leading many to shut down – entrepreneurship rates are up.

The cover of Forbes magazine on 17 June 2021 reads: “Covid’s Entrepreneur Explosion.”

As the pandemic shut down workplaces, markets, supply chains and economies across the world, millions of people were forced to adopt new technology, new ways of work and learning and rethinking their jobs.

A huge segment of the population had to lean into independent work and work from home. In many respects these changes brought about by the pandemic saw a shift from paid employment to aspirations of self-employment and entrepreneurial ventures.

In a recent survey by PWC, Hopes and Fears: The views of 32500 workers – 48% of respondents believe that “traditional employment” won’t be around in the future’ and 39% think it is likely that their job will be obsolete within five years.

In South Africa, 59% agree that “traditional employment won’t be around in the future” and 67% believe few people will have stable long-term employment in the future. In addition, 49% of respondents globally and 77% of South African respondents are focused on building entrepreneurial skills with an interest in setting up their own business.

With entrepreneurship a major source of economic growth and job creation, this has never been a more pertinent conversation in South Africa where unemployment, and notably youth unemployment, are at staggering highs.

Are entrepreneurs born or made? The nature versus nurture aspect behind entrepreneurship is one of the most hotly debated topics. Many people believe that an “entrepreneur gene” predisposes certain individuals to entrepreneurial endeavours and success.

While there is no doubt that successful entrepreneurs are born with certain characteristics and traits, it is their ability to apply these characteristics, traits and skills in the right way and in the right space that makes them successful.

In the research Nature or Nurture: Decoding the Entrepreneur by Ernst & Young, it shows that while entrepreneurs share some common characteristics and qualities, these are not, however, inherent, but rather, are attained and honed through learning and experiences.

In another study to uncover the most common skills of successful entrepreneurs, a Harvard Business School research team identified the skills most common in entrepreneurs and where successful entrepreneurs scored highest, as follows: identification of opportunities; vision and influence; comfort with uncertainty; assembling and motivating a business team; efficient decision-making; building networks; collaboration and team orientation; management of operations; and finance and financial management and sales.