6 Self-awareness and self-efficacy
6.1 Introduction
When you hear the many anecdotes from entrepreneurs who advise a class of students to start, to be optimistic and to have a firm belief in yourself, you would almost forget that (over)optimism and overestimation also play a role in the failure of many entrepreneurial projects.
It sometimes seems as if entrepreneurs are just doing it, without reflecting much, gathering feedback or systematically trying things out before jumping in the deep end. Yet the reality is more nuanced. More and more scientists are arguing that it is a good thing to think like a researcher from time to time as an entrepreneur: by remaining critical of yourself and your idea, you can avoid major problems during the entrepreneurial journey and continue to grow personally as an entrepreneur [1]. Particularly when uncertainty is high, it is wise to focus on learning and development [see also: Learning through experience]. What does this require from the budding entrepreneurial individuals who follow our courses? Learning and development as an entrepreneurial person requires 1) self-awareness: insight into your own goals, capabilities and motives; and 2) self-efficacy: the confidence in your own ability to achieve your goals. These two elements of this EntreComp 'meta-competency' (a competency that affects all other competencies) are found in various ways in the entrepreneurship literature and will be briefly explained below.
It sometimes seems as if entrepreneurs are just doing it, without reflecting much, gathering feedback or systematically trying things out before jumping in the deep end. Yet the reality is more nuanced. More and more scientists are arguing that it is a good thing to think like a researcher from time to time as an entrepreneur: by remaining critical of yourself and your idea, you can avoid major problems during the entrepreneurial journey and continue to grow personally as an entrepreneur [1]. Particularly when uncertainty is high, it is wise to focus on learning and development [see also: Learning through experience]. What does this require from the budding entrepreneurial individuals who follow our courses? Learning and development as an entrepreneurial person requires 1) self-awareness: insight into your own goals, capabilities and motives; and 2) self-efficacy: the confidence in your own ability to achieve your goals. These two elements of this EntreComp 'meta-competency' (a competency that affects all other competencies) are found in various ways in the entrepreneurship literature and will be briefly explained below.
6.2 Insights
Entrepreneurial learning [see also: Learning through experience] takes place inside, but definitely also outside the walls of the classroom. It often involves situations where experimentation is needed to see if an idea, concept, product or service makes sense. By experimenting with new situations, new tasks and to investigate what has value, you can use what you have learned to go in a new direction. A healthy dose of confidence in your own entrepreneurial ability is important to take those first steps. There are always enough reasons not to start, and you do not know exactly what comes out. With sufficient confidence in your own abilities you are more motivated to do something new, and to learn.
Self efficacy
Research on confidence in one's own abilities - self-efficacy in English - has a long tradition in research in general and in entrepreneurship education in particular. Already in the last century Albert Bandura showed the central role that self-efficacy plays in the performance of complex tasks [2]. Confidence in one's own effectiveness influences the choices people make, the goals they set for themselves and the amount of effort they are willing to put into something, even when times are tough. It is therefore not surprising that research has been done into the relationship between confidence in one's own abilities and entrepreneurial behaviour. Confidence in one's own abilities has also been widely studied among students as a predictor of entrepreneurial initiatives. This relationship appears to be very robust: worldwide, this relationship is found in various groups of students. Michael Gielnik and colleagues examined the role and dynamics of self-efficacy in a sample of approximately 200 student entrepreneurs in Tanzania and Rwanda. Self-efficacy was found in this study to be a significant predictor of whether or not students started a business [3]. But the study also showed that there is a lot of difference in self-efficacy between students, and that stimulating it certainly has an effect. For some students, very high (self)-ratings self-efficacy are associated with a lack of subsequent entrepreneurial initiative. More about this last finding in the next section.
Self-awareness
Confidence in students' own (entrepreneurial) ability is an important catalyst for starting the entrepreneurial learning process. But, as with many things, an unrealistically high estimate of one's own self-efficacy is also not good. At least, it may help to get started, but not to be successful in the end. This is because self-overestimation is lurking. The risk of overestimation is that people take too big risks and/or set too high goals, which can lead to demotivation and failure. When developing self-efficacy, it seems important for the entrepreneurial learning process not to fall into the trap of overestimation. This requires self-awareness. Although there has not been a great deal of direct research into self-awareness and entrepreneurship, it can be assumed that self-awareness is important, particularly if someone does not yet have a great deal of entrepreneurial knowledge or experience [4]. Self-awareness increases openness to the feedback and reactions of others.
Self-awareness and self-efficacy do not come about by themselves. Learning plays an important role in this. There are two important mechanisms to further develop self-awareness and self-efficacy: 1) by practicing and doing a lot and by becoming better at it through self-reflection; and 2) by looking closely at entrepreneurial examples and learning from them. We know that both mechanisms, and certainly the first, are not always present in formal education. Much of the learning in this area takes place informally, outside of school: it is learning that does not lead directly to a qualification and is often not recognised as learning. This learning takes place, for example, in students' hobby projects, weekend jobs, helping out at home in their parents' company, and all kinds of other extracurricular activities (trade fairs, company visits, being active in the student council or the local political party). For this meta-competence, it is therefore extra important for students to be active outside their studies.
Self efficacy
Research on confidence in one's own abilities - self-efficacy in English - has a long tradition in research in general and in entrepreneurship education in particular. Already in the last century Albert Bandura showed the central role that self-efficacy plays in the performance of complex tasks [2]. Confidence in one's own effectiveness influences the choices people make, the goals they set for themselves and the amount of effort they are willing to put into something, even when times are tough. It is therefore not surprising that research has been done into the relationship between confidence in one's own abilities and entrepreneurial behaviour. Confidence in one's own abilities has also been widely studied among students as a predictor of entrepreneurial initiatives. This relationship appears to be very robust: worldwide, this relationship is found in various groups of students. Michael Gielnik and colleagues examined the role and dynamics of self-efficacy in a sample of approximately 200 student entrepreneurs in Tanzania and Rwanda. Self-efficacy was found in this study to be a significant predictor of whether or not students started a business [3]. But the study also showed that there is a lot of difference in self-efficacy between students, and that stimulating it certainly has an effect. For some students, very high (self)-ratings self-efficacy are associated with a lack of subsequent entrepreneurial initiative. More about this last finding in the next section.
Self-awareness
Confidence in students' own (entrepreneurial) ability is an important catalyst for starting the entrepreneurial learning process. But, as with many things, an unrealistically high estimate of one's own self-efficacy is also not good. At least, it may help to get started, but not to be successful in the end. This is because self-overestimation is lurking. The risk of overestimation is that people take too big risks and/or set too high goals, which can lead to demotivation and failure. When developing self-efficacy, it seems important for the entrepreneurial learning process not to fall into the trap of overestimation. This requires self-awareness. Although there has not been a great deal of direct research into self-awareness and entrepreneurship, it can be assumed that self-awareness is important, particularly if someone does not yet have a great deal of entrepreneurial knowledge or experience [4]. Self-awareness increases openness to the feedback and reactions of others.
Self-awareness and self-efficacy do not come about by themselves. Learning plays an important role in this. There are two important mechanisms to further develop self-awareness and self-efficacy: 1) by practicing and doing a lot and by becoming better at it through self-reflection; and 2) by looking closely at entrepreneurial examples and learning from them. We know that both mechanisms, and certainly the first, are not always present in formal education. Much of the learning in this area takes place informally, outside of school: it is learning that does not lead directly to a qualification and is often not recognised as learning. This learning takes place, for example, in students' hobby projects, weekend jobs, helping out at home in their parents' company, and all kinds of other extracurricular activities (trade fairs, company visits, being active in the student council or the local political party). For this meta-competence, it is therefore extra important for students to be active outside their studies.
6.3 Further reading
[1] Arnaldo Camuffo and his Italian colleagues conducted an experiment to find out whether it helps entrepreneurs to use scientific methods - such as rigorous testing of hypotheses - when evaluating and developing ideas. The experimental group - who were trained by the researchers to look at their own ideas as scientists - switched more quickly to a new (better) idea and gave up less quickly than the control group. Camuffo, A., Cordova, A., Gambardella, A., & Spina, C. (2020). A scientific approach to entrepreneurial decision making: Evidence from a randomized control trial. Management Science, 66(2), 564-586.
[2] The concept of self-efficacy was introduced by Albert Bandura in 1977. Bandura stated that people only start something if they also believe that they themselves are capable of carrying out the necessary steps. Bandura, A. (1977). Self-efficacy: Toward a unifying theory of behavioral change. Psychological Review, 84(2), 191-215.
[3] Research on self-efficacy among student entrepreneurs in Africa. Gielnik, M.M., Bledow, R., & Stark, M.S. (2020). A dynamic account of self-efficacy in entrepreneurship. Journal of Applied Psychology, 105(5), 487-505.
[4] In an experiment with 217 students, Michael Haynie and his colleagues showed that metacognitive knowledge, such as knowledge about one's self, can compensate for the lack of specific entrepreneurial knowledge and experience. Haynie, J.M., Shepherd, D.A., & Patzelt, H. (2012). Cognitive adaptability and an entrepreneurial task: The role of metacognitive ability and feedback. Entrepreneurship Theory and Practice, 36(2), 237-265.
[5] Experiment on the effect of stories on self-efficacy. Liu, F., Ma, J., & Li, R. (2019). Which role model is more effective in entrepreneurship education? An investigation of storytelling on individual's entrepreneurial intention. Frontiers in psychology, 10, 837.
[6] Kompas21 is a self-assessment instrument for students developed by and with MBO schools. The instrument helps students gain insight into their 21st century skills. http://www.Kompas21.nl
[7] The Global Entrepreneurship Consortium (GEM) has been collecting comparative data for decades in numerous countries on how many people want to start a business or are in the process of doing so. https://www.gemconsortium.org/
[2] The concept of self-efficacy was introduced by Albert Bandura in 1977. Bandura stated that people only start something if they also believe that they themselves are capable of carrying out the necessary steps. Bandura, A. (1977). Self-efficacy: Toward a unifying theory of behavioral change. Psychological Review, 84(2), 191-215.
[3] Research on self-efficacy among student entrepreneurs in Africa. Gielnik, M.M., Bledow, R., & Stark, M.S. (2020). A dynamic account of self-efficacy in entrepreneurship. Journal of Applied Psychology, 105(5), 487-505.
[4] In an experiment with 217 students, Michael Haynie and his colleagues showed that metacognitive knowledge, such as knowledge about one's self, can compensate for the lack of specific entrepreneurial knowledge and experience. Haynie, J.M., Shepherd, D.A., & Patzelt, H. (2012). Cognitive adaptability and an entrepreneurial task: The role of metacognitive ability and feedback. Entrepreneurship Theory and Practice, 36(2), 237-265.
[5] Experiment on the effect of stories on self-efficacy. Liu, F., Ma, J., & Li, R. (2019). Which role model is more effective in entrepreneurship education? An investigation of storytelling on individual's entrepreneurial intention. Frontiers in psychology, 10, 837.
[6] Kompas21 is a self-assessment instrument for students developed by and with MBO schools. The instrument helps students gain insight into their 21st century skills. http://www.Kompas21.nl
[7] The Global Entrepreneurship Consortium (GEM) has been collecting comparative data for decades in numerous countries on how many people want to start a business or are in the process of doing so. https://www.gemconsortium.org/
6.4 Exercises for students
Developing self-efficacy and self-awareness can also be encouraged within the education system itself, for example in electives or work placements. This is certainly important for students who have little contact with entrepreneurial behaviour in their everyday lives.
1) Looking for local heroes together
Reading biographies and listening to stories of entrepreneurs are widely used in entrepreneurship education. As a teacher, you really don't need to arrange an interview or guest lecture with Elon Musk and have your students write a fantastic biography about it. Preferably not even! It is more effective to look for local, recognizable stories, for example those of a peer or an alumnus of the school.
Clarification: This exercise aims to learn from others, and thereby boost confidence in one's own abilities. Researchers Feng Liu and her colleagues [5] showed in an experiment that the effect of stories of local heroes on self-efficacy is stronger for students who already have a certain degree of confidence in their own abilities. Students with little confidence in their own entrepreneurial abilities need more than just a good story. It does not seem to make much difference whether the story is a success story or a story about failed projects, both seem to work.
2) Shadowing
A fun, accessible way to gain experience with entrepreneurship is to have students shadow an entrepreneur for a day and regularly ask what is going on, what choices he/she is making and what keeps him/her awake.
Clarification: In this variant of observation, students have even more opportunity to mirror entrepreneurial behavior and thus work on their self-efficacy.
3) Quality games
There are self-assessment instruments on the market that allow students to gain insight into their own qualities. A good example of this is Kompas21.nl [6], with which they have to make an assessment of how they react on the basis of cases. This gives them an overview of your qualities, including entrepreneurial skills, in their daily lives. They can also ask others to estimate their qualities.
Clarification: Quality games in which not only the student himself, but also others can judge the qualities of the student, give insight into the degree of self-underestimation or self-overestimation
4) Actively involve students in extracurricular learning activities
Many companies and organizations nowadays have competency activities; think for example of WorldSkills, a challenge, hackathon, makeathon, creathon, or something in that spirit. Although as a teacher you should always be critical of exactly what is being offered, these activities are the perfect opportunity to develop entrepreneurial competencies in a safe, non-school environment.
Clarification: By getting in touch with other entrepreneurial students, students get a better idea of how they are doing. Because such activities almost always take place in teams, they also offer a great context for students to think about how their own qualities relate to those of others and which learning activities contribute to this.
5) Make an inventory of the entrepreneurial learning potential
The internship, BPV workplace or holiday job often has learning potential as well as work potential. What is the entrepreneurial learning potential of the internship or BPV workplace of your student? This learning potential can be mapped out by looking at how much contact there is with customers, suppliers and colleagues. Can new things be tried out? Are there entrepreneurial role models? The more of these there is, the higher the learning potential.
Explanation: The Netherlands scores average in rankings of entrepreneurial behavior of employees. The percentage of entrepreneurial employees seems to decrease in recent years [7]. It is therefore wise to be critical as a student. Working environments differ enormously in the extent to which they invite or inhibit entrepreneurial behaviour. With this exercise students learn to look at their internship or BPV workplace in a different way; not from the content, but from the perspective of learning entrepreneurial behavior. Is there room to practice (make mistakes) and are there role models (colleagues and supervisors) to develop self-efficacy and self-understanding.
1) Looking for local heroes together
Reading biographies and listening to stories of entrepreneurs are widely used in entrepreneurship education. As a teacher, you really don't need to arrange an interview or guest lecture with Elon Musk and have your students write a fantastic biography about it. Preferably not even! It is more effective to look for local, recognizable stories, for example those of a peer or an alumnus of the school.
Clarification: This exercise aims to learn from others, and thereby boost confidence in one's own abilities. Researchers Feng Liu and her colleagues [5] showed in an experiment that the effect of stories of local heroes on self-efficacy is stronger for students who already have a certain degree of confidence in their own abilities. Students with little confidence in their own entrepreneurial abilities need more than just a good story. It does not seem to make much difference whether the story is a success story or a story about failed projects, both seem to work.
2) Shadowing
A fun, accessible way to gain experience with entrepreneurship is to have students shadow an entrepreneur for a day and regularly ask what is going on, what choices he/she is making and what keeps him/her awake.
Clarification: In this variant of observation, students have even more opportunity to mirror entrepreneurial behavior and thus work on their self-efficacy.
3) Quality games
There are self-assessment instruments on the market that allow students to gain insight into their own qualities. A good example of this is Kompas21.nl [6], with which they have to make an assessment of how they react on the basis of cases. This gives them an overview of your qualities, including entrepreneurial skills, in their daily lives. They can also ask others to estimate their qualities.
Clarification: Quality games in which not only the student himself, but also others can judge the qualities of the student, give insight into the degree of self-underestimation or self-overestimation
4) Actively involve students in extracurricular learning activities
Many companies and organizations nowadays have competency activities; think for example of WorldSkills, a challenge, hackathon, makeathon, creathon, or something in that spirit. Although as a teacher you should always be critical of exactly what is being offered, these activities are the perfect opportunity to develop entrepreneurial competencies in a safe, non-school environment.
Clarification: By getting in touch with other entrepreneurial students, students get a better idea of how they are doing. Because such activities almost always take place in teams, they also offer a great context for students to think about how their own qualities relate to those of others and which learning activities contribute to this.
5) Make an inventory of the entrepreneurial learning potential
The internship, BPV workplace or holiday job often has learning potential as well as work potential. What is the entrepreneurial learning potential of the internship or BPV workplace of your student? This learning potential can be mapped out by looking at how much contact there is with customers, suppliers and colleagues. Can new things be tried out? Are there entrepreneurial role models? The more of these there is, the higher the learning potential.
Explanation: The Netherlands scores average in rankings of entrepreneurial behavior of employees. The percentage of entrepreneurial employees seems to decrease in recent years [7]. It is therefore wise to be critical as a student. Working environments differ enormously in the extent to which they invite or inhibit entrepreneurial behaviour. With this exercise students learn to look at their internship or BPV workplace in a different way; not from the content, but from the perspective of learning entrepreneurial behavior. Is there room to practice (make mistakes) and are there role models (colleagues and supervisors) to develop self-efficacy and self-understanding.