Introduction
The debate over whether entrepreneurs are born with inherent traits or made through experience, education, and environmental factors is a central discussion within entrepreneurship studies. This essay critically examines the statement “entrepreneurs are made, not born,” arguing that while certain innate personality traits may provide a foundation, the development of entrepreneurial skills and success is predominantly shaped by external influences, learning, and deliberate practice. By exploring the role of education, social context, and personal experiences, this essay will demonstrate that entrepreneurship is a craft honed over time rather than a fixed, genetic predisposition. The discussion will draw on academic literature and evidence to present a balanced perspective while evaluating opposing views. Ultimately, this analysis aims to contribute to a broader understanding of how entrepreneurial capabilities are cultivated, with implications for both policy and individual development in the field of entrepreneurship.
The Nature vs. Nurture Debate in Entrepreneurship
At the heart of the discussion lies the classic nature versus nurture debate. Proponents of the “born” perspective argue that entrepreneurs possess innate characteristics such as creativity, risk-taking propensity, and resilience, which predispose them to success. For instance, personality traits like high self-efficacy and a strong internal locus of control are often associated with entrepreneurial behavior (Rauch and Frese, 2007). However, while these traits may provide a starting point, they do not guarantee success nor are they exclusive to entrepreneurs. Many individuals with similar traits do not pursue entrepreneurial ventures, suggesting that inherent qualities alone are insufficient.
Conversely, the “made” perspective posits that entrepreneurship is a learned behavior, shaped by environmental factors and personal development. This view aligns with the concept of human capital theory, which suggests that skills and knowledge acquired through education and experience significantly influence an individual’s ability to identify and exploit opportunities (Becker, 1993). Indeed, the ability to adapt, innovate, and manage resources effectively—key entrepreneurial competencies—can be developed through structured learning and real-world exposure. Therefore, while innate traits may offer a slight advantage, they are arguably less determinative than the nurturing of skills and mindsets through external influences.
The Role of Education and Training in Shaping Entrepreneurs
One of the strongest arguments supporting the idea that entrepreneurs are made lies in the transformative power of education and training. Formal education, particularly in business and management, equips aspiring entrepreneurs with critical tools such as financial literacy, strategic planning, and market analysis. For example, studies have shown that individuals with higher levels of education are more likely to start successful businesses due to their enhanced problem-solving abilities and access to networks (Van der Sluis et al., 2008). Furthermore, specialised entrepreneurship courses and workshops provide practical insights into opportunity recognition and venture creation, skills that are rarely inherent but rather systematically developed.
Beyond formal education, mentorship and experiential learning play a pivotal role. Learning from seasoned entrepreneurs through mentorship offers invaluable guidance on navigating challenges, such as securing funding or managing failure. This hands-on learning process is often cited as a key factor in entrepreneurial success, as it bridges the gap between theoretical knowledge and practical application (Morris et al., 2013). Thus, education and training serve as mechanisms through which individuals, regardless of innate predispositions, can cultivate the competencies necessary for entrepreneurship. This evidence suggests that entrepreneurial potential is not fixed at birth but can be actively nurtured over time.
Social and Environmental Influences on Entrepreneurial Development
The social and cultural context in which individuals grow up also profoundly shapes their entrepreneurial journey, further reinforcing the notion that entrepreneurs are made. For instance, exposure to role models—whether family members, peers, or community figures—can inspire and normalise entrepreneurial behavior. Research by Bosma et al. (2012) indicates that individuals with entrepreneurial parents are more likely to pursue similar paths, not necessarily due to genetics but because of the behaviours, values, and networks they are exposed to from an early age. This social learning process illustrates how external influences shape entrepreneurial aspirations and capabilities.
Moreover, the broader socio-economic environment plays a critical role. Access to resources such as funding, technology, and supportive government policies can either enable or hinder entrepreneurial activity. In the UK, for example, initiatives like the Start-Up Loans Scheme provide financial backing and mentorship to budding entrepreneurs, demonstrating how systemic support can cultivate entrepreneurship where it might not otherwise emerge (UK Government, 2023). Such environmental factors underscore that entrepreneurial success often depends on external opportunities and support structures rather than solely on inherent traits. Consequently, the context in which an individual operates can be seen as a determining factor in whether they develop into an entrepreneur.
Personal Experiences and Resilience Building
Entrepreneurial success is also significantly influenced by personal experiences, particularly in overcoming adversity and learning from failure. Unlike innate traits, resilience and adaptability are often forged through life’s challenges and are critical for navigating the uncertainties of entrepreneurship. For instance, many successful entrepreneurs, such as Richard Branson, attribute their achievements not to natural talent but to lessons learned from early failures and persistence in the face of setbacks (Branson, 2011). This process of experiential learning highlights how entrepreneurship is a journey of continuous growth rather than a static, predetermined outcome.
Furthermore, the ability to reflect on and learn from past experiences is a skill that can be developed over time. Entrepreneurs often refine their decision-making and risk assessment capabilities through trial and error, a process that is inherently shaped by external events rather than internal wiring. This iterative learning cycle suggests that entrepreneurial competence is built through practice and reflection, aligning with the view that entrepreneurs are predominantly made through their lived experiences.
Counterarguments: The Role of Innate Traits
While the evidence largely supports the idea that entrepreneurs are made, it is important to acknowledge the counterargument that certain innate traits may predispose individuals to entrepreneurial success. Traits such as innovativeness, risk tolerance, and a proactive personality are often linked to entrepreneurial behavior in psychological studies (Zhao et al., 2010). These characteristics, arguably rooted in biology or early temperament, may give some individuals a head start in identifying opportunities or tolerating uncertainty.
However, even if such traits exist, they are not sufficient on their own. Without the right environment, education, or experiences to channel these traits productively, potential may remain untapped. For instance, a naturally creative individual might never become an entrepreneur without access to resources or encouragement to pursue innovative ideas. Therefore, while innate traits may play a supporting role, they are generally less decisive than the external factors that shape and refine entrepreneurial capabilities.
Conclusion
In conclusion, this essay has argued that entrepreneurs are predominantly made, rather than born, through a combination of education, social influences, and personal experiences. While innate traits such as creativity or risk tolerance may offer a foundation, they are neither exclusive to entrepreneurs nor sufficient for success without the nurturing of skills and mindsets through external means. The transformative impact of education and training, the shaping influence of social and environmental contexts, and the critical role of experiential learning all point to entrepreneurship as a craft that can be developed over time. These findings have significant implications for both policy and individual development, highlighting the importance of creating supportive ecosystems—through education, mentorship, and resources—to cultivate entrepreneurial talent. Ultimately, by recognising that entrepreneurship is a learned endeavor, society can better empower individuals to pursue and succeed in entrepreneurial ventures, regardless of their starting point.
References
- Becker, G. S. (1993) Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education. University of Chicago Press.
- Bosma, N., Hessels, J., Schutjens, V., Van Praag, M., and Verheul, I. (2012) Entrepreneurship and role models. Journal of Economic Psychology, 33(2), pp. 410-424.
- Branson, R. (2011) Losing My Virginity: How I Survived, Had Fun, and Made a Fortune Doing Business My Way. Virgin Books.
- Morris, M. H., Webb, J. W., Fu, J., and Singhal, S. (2013) A Competency-Based Perspective on Entrepreneurship Education: Conceptual and Empirical Insights. Journal of Small Business Management, 51(3), pp. 352-369.
- Rauch, A. and Frese, M. (2007) Let’s put the person back into entrepreneurship research: A meta-analysis on the relationship between business owners’ personality traits, business creation, and success. European Journal of Work and Organizational Psychology, 16(4), pp. 353-385.
- UK Government (2023) Start Up Loans Scheme. Available at: Start Up Loans. GOV.UK.
- Van der Sluis, J., Van Praag, M., and Vijverberg, W. (2008) Education and entrepreneurship selection and performance: A review of the empirical literature. International Small Business Journal, 26(5), pp. 603-632.
- Zhao, H., Seibert, S. E., and Lumpkin, G. T. (2010) The Relationship of Personality to Entrepreneurial Intentions and Performance: A Meta-Analytic Review. Journal of Management, 36(2), pp. 381-404.
