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The Importance Of Problem Solving Skills For Entrepreneurs

The Importance Of Problem Solving Skills For Entrepreneurs

Problem-solving is essential for entrepreneurs who want to succeed in today’s business world. Entrepreneurs face numerous challenges, and identifying and solving problems is crucial to achieving success. For that, it is crucial to have problem solving skills for entrepreneurs.

Typically, problem solving skills help to think critically and creatively to develop effective solutions to improve business performance. They also help entrepreneurs communicate effectively, lead confidently, and identify opportunities to grow their businesses.

In this blog, we will explore the importance of problem solving skills for entrepreneurs and provide practical tips and strategies to help them develop and enhance these skills.

Table of Contents

What Are The Skills Of Problem Solving?

Problem-solving skills are an essential element of successful entrepreneurship. Entrepreneurs must be able to recognize issues, evaluate them for possible remedies, and select the best one.

Creative thinking, critical thinking, and analytical skills are essential for effective problem solving. Communication and people skills are also important, as entrepreneurs need to effectively communicate their ideas and work with others to implement solutions.

Additionally, leadership skills are critical for leading teams and driving business success. The problem-solving process is key for entrepreneurs, who must identify opportunities and develop innovative solutions to drive their businesses forward.

Entrepreneurship is creating, developing, and managing a new business venture. Success requires a unique set of skills, abilities, and approaches. One of the most important skills for entrepreneurs is problem-solving. Below, we will discuss the importance of problem-solving skills for entrepreneurs and how it can impact their businesses.

Critical Thinking and Creative Problem-Solving Skills

One of the most critical elements of problem-solving is critical thinking . Entrepreneurs need to be able to analyze situations, identify problems, and develop potential solutions. This requires them to have strong analytical and creative thinking skills. They need to be able to approach problems from different angles, identify patterns, and think outside the box to find innovative solutions.

Effective Solutions and Business Performance

Effective problem-solving can significantly impact the performance of a business. Entrepreneurs who are skilled at problem-solving can identify and address issues quickly, leading to increased efficiency and productivity. They can also identify opportunities for improvement and develop new and innovative solutions to stay ahead of the competition.

Communication and Leadership Skills

Problem-solving also requires strong communication and leadership skills. Entrepreneurs need to communicate their ideas and solutions effectively to their teams, stakeholders, and customers. They need to motivate and inspire their team to take action and implement the solutions. This requires strong leadership skills, including delegating tasks and responsibilities, building a positive company culture, and leading by example.

Entrepreneurial Mindset and Opportunity Identification

Entrepreneurs with strong problem-solving skills often have an entrepreneurial mindset. They are always looking for new opportunities and ways to improve their businesses. They are unafraid to take risks and try new approaches to solve problems. This mindset is essential for identifying entrepreneurial opportunities and developing new and innovative business models.

How To Develop Problem Solving Skills For Entrepreneurs?

Entrepreneurs encounter numerous challenges while starting and managing their businesses, and the ability to solve problems creatively is an essential element of entrepreneurship. Here, we will explore different approaches entrepreneurs can use to develop their problem-solving skills.

Develop Critical Thinking Skills

Critical thinking is an essential skill for entrepreneurs to solve problems effectively. Entrepreneurs need to analyze a situation critically, identify the root cause of the problem, and evaluate potential solutions. Entrepreneurs can engage in activities such as reading challenging books, debating, and solving puzzles to improve critical thinking skills .

Enhance Creative Thinking Skill

Entrepreneurs should have the ability to think creatively when solving problems. Entrepreneurs can cultivate their creative thinking skills by exploring new experiences, brainstorming ideas, and challenging assumptions. When entrepreneurs use creative thinking, they can develop innovative solutions to complex problems.

Improve Communication and Leadership Skills

Entrepreneurs need to have excellent communication and leadership skills to solve problems effectively. Good communication skills help entrepreneurs communicate their ideas and solutions effectively to others. Similarly, leadership skills help entrepreneurs to motivate and guide their teams toward finding solutions to problem.

Think Outside the Box

Entrepreneurs can develop their problem-solving skills by thinking outside the box. When entrepreneurs use divergent thinking, they can generate many potential solutions to a problem. Entrepreneurs can develop innovative and effective solutions to complex problems by exploring different perspectives and considering unconventional solutions.

Utilize Tools and Resources

Entrepreneurs can also utilize various tools and resources to develop their problem-solving skills. These tools and resources include business books, online courses, mentorship programs, and workshops. Such resources can help entrepreneurs to learn new problem-solving techniques and strategies.

Get to Know:   What Is Self Discipline In Entrepreneurship ?

Steps to Effective Problem-Solving for Entrepreneurs

Effective problem-solving is a crucial element of entrepreneurship. Successful entrepreneurs need to possess strong problem-solving skills to identify and resolve challenges in their businesses. Here are the seven steps to effective problem-solving for entrepreneurs:

Step 1: Identify the Problem

The first step in solving any problem is to identify it. Entrepreneurs should use critical thinking skills to recognize the problem and what caused it. The ability to pinpoint the problem accurately will help in developing an effective solution.

Step 2: Gather Information

Once the problem is identified, the next step is to gather as much information as possible. Entrepreneurs should use their research skills to collect data, analyze trends, and look for insights into the problem. This step provides a better understanding of the issue, which is crucial in problem-solving.

Step 3: Analyze the Problem

After gathering the relevant information, entrepreneurs should analyze the problem to determine the root cause. Analyzing the problem enables entrepreneurs to understand the situation more deeply and identify possible barriers to finding an effective solution.

Step 4: Generate Possible Solutions

The next step is to brainstorm and generate potential solutions to the problem. Entrepreneurs should use their creative thinking skills to develop innovative solutions to address the issue. There may be various approaches to solving the problem, and entrepreneurs should consider them all.

Step 5: Evaluate and Select the Best Solution

Entrepreneurs should evaluate all potential solutions to determine which ones are feasible, effective, and have the highest chances of success. They should consider the potential impact of each solution on the business and choose the best one that aligns with their business goals.

Step 6: Implement the Solution

After selecting the best solution, entrepreneurs should create a plan to implement it effectively. The implementation plan should outline the steps required to implement the solution, including the timelines and resources needed.

Step 7: Monitor and Evaluate the Solution

Once the solution is implemented, entrepreneurs should monitor its progress and evaluate its effectiveness. This step helps identify any issues that may arise during the implementation process and make adjustments as necessary. Continuous monitoring and evaluation are crucial to ensure that the solution is sustainable and effective in the long run.

Wrapping Up

The discussion above has highlighted the importance of problem solving skills for entrepreneurs. Problem-solving skills are essential to identify, analyze, and develop solutions.

Entrepreneurs must also be able to adapt to the ever-changing business landscape and come up with innovative solutions. Problem-solving skills help entrepreneurs make better decisions, improve their productivity and increase their chances of success.

Problem solving skills enable entrepreneurs to anticipate problems and take proactive steps to prevent them. Clearly, problem solving skills play a major role in the success of entrepreneurs and should be developed and practiced regularly.

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How Entrepreneurs Can Find the Right Problem to Solve

As an entrepreneur, how confident are you that you fully understand your customer’s pain points or their job to be done? Entrepreneurs I first meet tend to start selling me on their solution before explaining the problem they are trying to solve. There is little evidence that they’ve done true discovery work to validate the problem or their target customers.

While gut feel or personal experience with a problem can be a strong signal there is a problem to solve, without proper product discovery work you won’t truly know if you have a winning solution.

For those who profess having done proper discovery to validate a problem but don’t yet have a product, my follow-up question is: “How do you know people or companies will use your product?” Answers are equally discouraging. More often than not, I hear examples of interest tests, such as hits on social media posts or answers to surveys that are so biased it’s hard to trust the results. Further, entrepreneurs may have a good hunch there’s a job to be done that needs improving or replacing, but they can’t describe where in the customer journey they can truly make an impact.

I’m a big fan of confident founders who are passionate about their idea, but a little humility and a lot of discovery work can determine whether there’s a winning solution and save a lot of wasted time and money building the wrong thing. If fundraising is also a consideration, being able to have real data vs. gut feelings and biased test results can be the difference between a modest angel round and a strongly led seed- or A-round.

I’ve recently written an in-depth look at this topic, Product Discovery 101 , which I encourage you to read. Here are some highlights.

Interest vs. problem testing

“We had 1,000 clicks on our Facebook ad in the first 48 hours.”

“Our conversion rate from click to sign-up was 50 percent.”

“We interviewed a bunch of people and they said they’d use our product if we built it.”

These quotes suggest the entrepreneurs may have found an audience interested enough to click on an ad and provide an email addresses, but they still haven’t proven anything about the usefulness of their product, that it solves a real pain point, or that their target customer is willing to pay for the fix. If you plan to do interest tests, here are several approaches (among many) to consider:

  • Social media . Great for finding your audience, social outreach should be done on multiple platforms and carefully crafted to answer only one or two hypotheses. These hypotheses are commonly, “Is this where we can reach this audience if we want to market to them?” and “Are they interested enough to click and learn more?”
  • Website landing pages . These are the best locations to capture interest, email addresses, and demographic data. If your potential customers found you through social media tests or googling, you’ve proven they were interested enough to learn more, that your search engine optimization works, and that they trust you or care enough about the problem you wish to solve that they’ll provide insight into who they are.
  • Surveys . Surveys are difficult to design and often capture random and subjective information instead of getting real data to inform your product. Great surveys are 10 questions or less, reflective in nature (“How many times did you buy “X” in the last month?”) and data-centric (“How often do you order takeout for dinner?).

Problem validation

Early in the process, more important than interest tests are tests that validate there is a problem worth solving and where exactly a product can be most successful in solving that problem. Validating hypotheses about the problem through a variety of methods is going to lead to a far better outcome than clicks on a Facebook ad.

Consider trying these different types of problem-validation tests in your discovery process:

  • Interviews . Similar to surveys, interviews are as much art as science. It is incredibly easy to lead a witness, bias answers, and hear what we want to hear in an interview. The best guide for conducting a proper discovery interview is Rob Fitzpatrick’s book The Mom Test , which I encourage every entrepreneur and product manager I work with to read.
  • Ethnography . Observing prospects performing the job you hope to improve or replace can be extremely insightful. You may find hacks they would never tell you about in an interview or discover a whole new set of problems in their process.
  • Emotional journaling or mapping . Having a prospect journal or map out their process and highlight how they feel along the way can pinpoint exactly where they are most frustrated in their process. This is also a great technique if you can’t observe the prospect in the setting where the problem exists.
  • Journey mapping . Bring together all your discovery work to identify where you found patterns of highs and lows. These may surprise you; often, where you hypothesized there was the most pain in a process may be somewhere completely different.
  • (Don’t do) focus groups . I am generally not a fan of this form of discovery. It lends itself to groupthink and can produce false results. Focus groups can be useful later in the product cycle when you want to get reactions to branding or observe groups of people using your product if it’s a tangible item.

Prototype testing

The best way to validate that a problem exists is to actually insert yourself into the process and learn by doing. These tests lean toward solution building, but the idea is that you’re doing tests without building anything, or building very little, to get clarity on the problem and the customer. Common forms of these tests include:

  • Lo-fidelity concierge testing . Jump right in and assume part of the role that your product might fill in the future. If you were coming up with a new restaurant reservation system, this may involve a phone conversation with the party needing a reservation and having you do the actual booking for them, perhaps even texting them to confirm their reservation. The key to success of these early tests is to resist the temptation to correct your customer—just go with them on their user experience. You can tweak things along the way as you learn more about what works and what doesn’t.
  • Wizard of Oz (WoZ) testing . WoZ allows you to test a product without the need for a fully built-out prototype. The customer won’t know that you are working behind the scenes to simulate the experience. A former student of mine with a software engineering background resisted the temptation to code a solution and instead created a WoZ test by cobbling together Soundcloud, Dropbox, texting, and a high-fidelity mock front-end. After dozens of people used this method and she understood what they needed, she officially built and launched the product .
  • Prototypes . Build small runs of your future product using 3D printing, sewing, or even a pop-up restaurant as ways to test your concept and receive feedback before spending too much money.
  • Competitive analogs . Having target customers use existing similar products can be as telling as using the product you hope to create. Try tools like UserTesting , which allows prospects to walk through how they use a current competitive product. Having target customers use a competitive product for a week or two can also be insightful.
  • Expert testing . You may be working in an area where you are no expert, but you have a hunch it’s a white space ripe for disruption. If you don’t have access to the experts or their customers, find or create a space for them to connect and observe through their experiences. This could be as simple as finding them on Quora or Reddit and looking at threads of questions that are related to what you’re exploring.

Test early, test often!

With all the options available, there is no excuse for weak validation of problems and target customers early in your product development process. One test, or even a few tests, does not qualify a product as marketable or fundable. The more objective tests you do up front, and iterate on those tests often, the higher the likelihood you’ll land on a great solution that people want to use and buy. To see my full set of recommendations, visit Product Discovery 101 .

This blog post is largely inspired by my course, PM101 at Harvard Business School. I have open-sourced the syllabus for this course here .

About the author

Julia Austin is a Senior Lecturer in the Entrepreneurial Management Unit at the Harvard Business School.

[Image by: iStock Photo ]

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  • 1.3 The Entrepreneurial Mindset
  • Introduction
  • 1.1 Entrepreneurship Today
  • 1.2 Entrepreneurial Vision and Goals
  • Review Questions
  • Discussion Questions
  • Case Questions
  • Suggested Resources
  • 2.1 Overview of the Entrepreneurial Journey
  • 2.2 The Process of Becoming an Entrepreneur
  • 2.3 Entrepreneurial Pathways
  • 2.4 Frameworks to Inform Your Entrepreneurial Path
  • 3.1 Ethical and Legal Issues in Entrepreneurship
  • 3.2 Corporate Social Responsibility and Social Entrepreneurship
  • 3.3 Developing a Workplace Culture of Ethical Excellence and Accountability
  • 4.1 Tools for Creativity and Innovation
  • 4.2 Creativity, Innovation, and Invention: How They Differ
  • 4.3 Developing Ideas, Innovations, and Inventions
  • 5.1 Entrepreneurial Opportunity
  • 5.2 Researching Potential Business Opportunities
  • 5.3 Competitive Analysis
  • 6.1 Problem Solving to Find Entrepreneurial Solutions
  • 6.2 Creative Problem-Solving Process
  • 6.3 Design Thinking
  • 6.4 Lean Processes
  • 7.1 Clarifying Your Vision, Mission, and Goals
  • 7.2 Sharing Your Entrepreneurial Story
  • 7.3 Developing Pitches for Various Audiences and Goals
  • 7.4 Protecting Your Idea and Polishing the Pitch through Feedback
  • 7.5 Reality Check: Contests and Competitions
  • 8.1 Entrepreneurial Marketing and the Marketing Mix
  • 8.2 Market Research, Market Opportunity Recognition, and Target Market
  • 8.3 Marketing Techniques and Tools for Entrepreneurs
  • 8.4 Entrepreneurial Branding
  • 8.5 Marketing Strategy and the Marketing Plan
  • 8.6 Sales and Customer Service
  • 9.1 Overview of Entrepreneurial Finance and Accounting Strategies
  • 9.2 Special Funding Strategies
  • 9.3 Accounting Basics for Entrepreneurs
  • 9.4 Developing Startup Financial Statements and Projections
  • 10.1 Launching the Imperfect Business: Lean Startup
  • 10.2 Why Early Failure Can Lead to Success Later
  • 10.3 The Challenging Truth about Business Ownership
  • 10.4 Managing, Following, and Adjusting the Initial Plan
  • 10.5 Growth: Signs, Pains, and Cautions
  • 11.1 Avoiding the “Field of Dreams” Approach
  • 11.2 Designing the Business Model
  • 11.3 Conducting a Feasibility Analysis
  • 11.4 The Business Plan
  • 12.1 Building and Connecting to Networks
  • 12.2 Building the Entrepreneurial Dream Team
  • 12.3 Designing a Startup Operational Plan
  • 13.1 Business Structures: Overview of Legal and Tax Considerations
  • 13.2 Corporations
  • 13.3 Partnerships and Joint Ventures
  • 13.4 Limited Liability Companies
  • 13.5 Sole Proprietorships
  • 13.6 Additional Considerations: Capital Acquisition, Business Domicile, and Technology
  • 13.7 Mitigating and Managing Risks
  • 14.1 Types of Resources
  • 14.2 Using the PEST Framework to Assess Resource Needs
  • 14.3 Managing Resources over the Venture Life Cycle
  • 15.1 Launching Your Venture
  • 15.2 Making Difficult Business Decisions in Response to Challenges
  • 15.3 Seeking Help or Support
  • 15.4 Now What? Serving as a Mentor, Consultant, or Champion
  • 15.5 Reflections: Documenting the Journey
  • A | Suggested Resources

Learning Objectives

By the end of this section, you will be able to:

  • Explain what it means to have an entrepreneurial mindset
  • Describe what is meant by entrepreneurial spirit or passion

Entrepreneurship takes many forms (see Table 1.1 ), but entrepreneurs share a major trait in common: An entrepreneur is someone who identifies an opportunity and chooses to act on that opportunity. Most business ventures are innovative variations of an existing idea that has spread across communities, regions, and countries, such as starting a restaurant or opening a retail store. These business ventures are, in some ways, a lower-risk approach but nonetheless are entrepreneurial in some way. For example, Warby Parker , a profitable startup founded by four graduate students at Wharton, disrupted a major incumbent ( Luxottica ) by providing a more convenient (online initially), affordable, and stylish product line for a large segment of consumers. In this sense, their innovation is about creating something new, unique, or different from the mainstream. Yet they attracted an existing, and in some ways mature, sector of an established industry. In a different way, McDonalds , which is 90 percent owned by franchisees, introduced an “all day breakfast” menu in 2017 that was hugely successful; it also targeted a larger segment (in part younger consumers) and brought back consumers who had chosen other options. In summary, many entrepreneurs start a new venture by solving a problem that is significant, offering some value that other people would appreciate if the product or service were available to them. Other entrepreneurs, in contrast, start a venture by offering a “better mousetrap” in terms of a product, service, or both. In any case, it is vital that the entrepreneur understand the market and target segment well, articulate a key unmet need (“pain point”), and develop and deliver a solution that is both viable and feasible. In that aspect, many entrepreneurs mitigate risks before they launch the venture.

Being aware of your surroundings and the encounters in your life can reveal multiple opportunities for entrepreneurship. In our daily lives, we constantly find areas where improvements could be made. For example, you might ask, “What if we didn’t have to commute to work?” “What if we didn’t have to own a vehicle but still had access to one?” “What if we could relax while driving to work instead of being stressed out by traffic?” These types of questions inspired entrepreneurial ventures such as ride-sharing services like Uber , the self-driving vehicle industry, 21 and short-term bicycle access in the free bike-sharing program in Pella, Iowa ( Figure 1.10 ). 22

These ideas resulted from having an entrepreneurial mindset , an awareness and focus on identifying an opportunity through solving a problem, and a willingness to move forward to advance that idea. The entrepreneurial mindset is the lens through which the entrepreneur views the world, where everything is considered in light of the entrepreneurial business. The business is always a consideration when the entrepreneur makes a decision. In most cases, the action that the entrepreneur takes is for the benefit of the business, but sometimes, it helps the entrepreneur get ready to adopt the appropriate mindset. The mindset becomes a way of life for the entrepreneur. Entrepreneurs often are predisposed to action to achieve their goals and objectives. They are forward thinking, always planning ahead, and they are engaged in “what if” analyses. They frequently ask themselves, “What if we did this?” “What if a competitor did that?”—and consider what the business implications would be.

Most people follow habits and traditions without being aware of their surroundings or noticing the opportunities to become entrepreneurs. Because anyone can change their perspective from following established patterns to noticing the opportunities around them, anyone can become an entrepreneur. There is no restriction on age, gender, race, country of origin, or personal income. To become an entrepreneur, you need to recognize that an opportunity exists and be willing to act on it. Note, however, that the execution of the entrepreneurial mindset varies in different parts of the world. For example, in many Asian cultures, group decision-making is more common and valued as a character trait. In these regions, an entrepreneur would likely ask the advice of family members or other business associates before taking action. In contrast, individualism is highly valued in the United States and so many US entrepreneurs will decide to implement a plan for the business without consulting others.

Entrepreneurial Spirit and Passion

An entrepreneurial spirit allows entrepreneurs to carry a manner of thinking with them each day that allows them to overcome obstacles and to meet challenges with a can-do attitude. What does it mean to have an entrepreneurial spirit? For the purposes of this discussion, it could mean being passionate, purposeful, positive, bold, curious, or persistent.

The founders of Airbnb have a passion for supporting individual rights to rent out unused space. Why should the established model of hotels prevail? Why shouldn’t an individual homeowner have the freedom to rent out unused space and leverage that space into an income? Airbnb has succeeded in creating more flexible and affordable options in the space of the rapidly growing "sharing" economy. At the same time, some states and municipalities have raised issues about the regulations monitoring ventures like this. While entrepreneurial spirit is partly about fighting for individual rights and freedoms, there should be a balance between economic freedom and consumer protection. The entrepreneurial spirit involves a passion for presenting an idea that is worthwhile and valuable, and a willingness to think beyond established patterns and processes, while still keeping in mind local laws and regulations, in the quest to change those established patterns, or at least to offer alternatives to those established patterns.

Passion is a critical component of the entrepreneurial process. Without it, an entrepreneur can lose the drive to run the business. Passion can keep an entrepreneur going when the outside world sends negative messages or less-than-positive feedback. For example, if you are truly passionate about starting an animal shelter because of your love of animals, you will find a way to make it happen. Your internal drive to help animals in need will spur you on to do whatever it takes to make the shelter become a reality. The same is true of other types of startups and owners with similar passions. However, passion needs to be informed by the entrepreneur’s vision and mission—passion of the sake of passion is not enough. A clear mission statement —which details why the business exists and the entrepreneur’s objectives for achieving that mission—will guide an entrepreneur’s passion and keep the business on track. Passion, vision, and mission can reinforce each other and keep the entrepreneur on the right track with next steps for the business.

Some ideas might seem small or insignificant, but in the field of entrepreneurship, it’s important to recognize that for every new startup, someone else may recognize a spin-off idea that expands upon the original idea. The opportunities for identifying new possibilities are endless. Review your work in creating spinoff ideas for Angad Darvani’s projects, or Kevin F. Adler’s Miracle Messages venture. Or consider possible spin-off ideas around the technology used in agriculture. Creating spin-off ideas fits well with our discussion of divergent thinking and brainstorming. Through these processes, we can discover new uses for existing technology, just as Ring did by using video technology to add security by allowing customers to see who is at the door without opening it.

An Entrepreneurial Mindset in Your Discipline or Field

Within your industry of interest or area of study, what are the challenges that create frustration? How can these be turned into opportunities? Earlier in this chapter, we discussed Evernote , a company that focuses on expanding our memories by storing and organizing information. Let’s look at some other examples of entrepreneurial endeavors in specific industries to help you plan your own venture in your own industry.

In the agriculture industry, insects, weeds, weather conditions, and the challenges of harvesting crops are all ripe for entrepreneurial activities. The move toward organic produce has also affected this industry. From an entrepreneurial perspective, what products could you invent to support both organic farming and the problems of insects that damage or destroy crops? The old method was to use chemical sprays to kill the insects, but today, the growing demand for organic foods and increased awareness of the impact of chemical sprays on our environment are changing this scenario. One new idea to solve this problem combines a vacuum cleaner with an agriculture product.

Link to Learning

Watch this video on the creation of a crop vacuum that sucks up insects and bugs to learn more.

A bug vacuum is an example of how using divergent thinking contributed to the solution of removing bugs from crops without using chemicals. In the group activity of creating divergent ideas, this idea may not have been received well. However, in the incubation stage, the idea must have come forward as a viable solution. Entrepreneurs frequently face the challenge of pressure to conform to established habits and patterns within industries.

Often, the entrepreneurial mindset includes futuristic ideas that shake up the normal, conventional processes that are grounded in experience over time. Tried-and-tested processes and products that have a proven history of success can be a formidable obstacle to new ideas. A new idea may even appear as impossible or outlandish, perhaps even an embarrassment to the steady and predictable practices established within an industry. This can create a dilemma: Do we try something new and unproven that lacks documented research? Sometimes, we must disregard our past successes and research to be open to new possibilities for success and failure. An entrepreneurial mindset includes creativity, problem-solving skills, and a propensity to innovation. 23 Open-mindedness is one characteristic that supports creativity, problem solving, and innovation. Taking the time to explore new ideas, dream, reflect, and view situations from a new perspective contribute to the entrepreneurial mindset. Some innovations can lead to disruptions within the industry, or even create a new industry.

The innovator’s dilemma was presented by Clayton Christensen to explain disruptive technology , which are technologies that, once introduced, displace established patterns, processes, and systems previously accepted as normal or accepted. One example of a disruptive technology is Airbnb , a company that threatens the established hotel industry by connecting personal resources to people who desire those resources. If you have a spare bedroom that you aren’t using, why not sell that space to someone who wants and needs the space?

Airbnb has become a significant threat to the established hotel industry’s business model of building large hotels and renting rooms within those hotels to their customers. Airbnb has reconfigured that model, and since its 2008 launch, 150 million travelers have taken advantage of 3 million Airbnb listings in more than 191 countries. Airbnb has raised more than $3 billion (plus a $1 billion credit line) and is considering selling stocks to support significant expansion. The value of Airbnb is approximately $30 billion. Compare this market value to Hilton ’s market capitalization of $19 billion and Marriott ’s of $35 billion. If you were the CEO of Hilton or Marriott, would you be worried? The hotel industry recognized Airbnb as a threat, and in 2016, began a campaign to create legislation to rein in Airbnb’s growth and popularity. From the hotel industry’s perspective, Airbnb is not playing by the same rules. This is the definition of disruptive technology, the focus on creating a new idea or process that negates or challenges established process or products. 24

Sometimes disruptive technologies result from not listening to customers. Customers don’t always know what they want. Customer groups might need to be redefined by the entrepreneurial team on the basis of better models, knowing when to invest in developing lower-performance products that promise lower margins while still satisfying the need, and knowing when to pursue small markets at the expense of larger or established markets. Basically, disruptive technologies occur through identifying new and valuable processes and products.

The founders of Airbnb recognized that some people have unused resources, bedrooms, that other people need. We can apply this idea to other unused resources such as vehicles and motor homes. We see this model reproduced in short-term car rental and bike-sharing programs.

  • 21 Matthew DeBord. “Waymo Could Be Worth as Much as $75 Billion—Here’s a Brief History of the Google Car Project.” Business Insider . September 9, 2018.
  • 22 Ethan Goetz. “Bike Share Program Launched Monday.” The Chronicle . July 2, 2018.
  • 23 Emma Fleck. “Needed: Entrepreneurial Mindset.”  Central Penn Business Journal ,  34 (12), 10.
  • 24 Katie Benner. “Inside the Hotel Industry’s Plan to Combat Airbnb.” New York Times . April 16, 2017.

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What Is Creative Problem-Solving & Why Is It Important?

Business team using creative problem-solving

  • 01 Feb 2022

One of the biggest hindrances to innovation is complacency—it can be more comfortable to do what you know than venture into the unknown. Business leaders can overcome this barrier by mobilizing creative team members and providing space to innovate.

There are several tools you can use to encourage creativity in the workplace. Creative problem-solving is one of them, which facilitates the development of innovative solutions to difficult problems.

Here’s an overview of creative problem-solving and why it’s important in business.

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What Is Creative Problem-Solving?

Research is necessary when solving a problem. But there are situations where a problem’s specific cause is difficult to pinpoint. This can occur when there’s not enough time to narrow down the problem’s source or there are differing opinions about its root cause.

In such cases, you can use creative problem-solving , which allows you to explore potential solutions regardless of whether a problem has been defined.

Creative problem-solving is less structured than other innovation processes and encourages exploring open-ended solutions. It also focuses on developing new perspectives and fostering creativity in the workplace . Its benefits include:

  • Finding creative solutions to complex problems : User research can insufficiently illustrate a situation’s complexity. While other innovation processes rely on this information, creative problem-solving can yield solutions without it.
  • Adapting to change : Business is constantly changing, and business leaders need to adapt. Creative problem-solving helps overcome unforeseen challenges and find solutions to unconventional problems.
  • Fueling innovation and growth : In addition to solutions, creative problem-solving can spark innovative ideas that drive company growth. These ideas can lead to new product lines, services, or a modified operations structure that improves efficiency.

Design Thinking and Innovation | Uncover creative solutions to your business problems | Learn More

Creative problem-solving is traditionally based on the following key principles :

1. Balance Divergent and Convergent Thinking

Creative problem-solving uses two primary tools to find solutions: divergence and convergence. Divergence generates ideas in response to a problem, while convergence narrows them down to a shortlist. It balances these two practices and turns ideas into concrete solutions.

2. Reframe Problems as Questions

By framing problems as questions, you shift from focusing on obstacles to solutions. This provides the freedom to brainstorm potential ideas.

3. Defer Judgment of Ideas

When brainstorming, it can be natural to reject or accept ideas right away. Yet, immediate judgments interfere with the idea generation process. Even ideas that seem implausible can turn into outstanding innovations upon further exploration and development.

4. Focus on "Yes, And" Instead of "No, But"

Using negative words like "no" discourages creative thinking. Instead, use positive language to build and maintain an environment that fosters the development of creative and innovative ideas.

Creative Problem-Solving and Design Thinking

Whereas creative problem-solving facilitates developing innovative ideas through a less structured workflow, design thinking takes a far more organized approach.

Design thinking is a human-centered, solutions-based process that fosters the ideation and development of solutions. In the online course Design Thinking and Innovation , Harvard Business School Dean Srikant Datar leverages a four-phase framework to explain design thinking.

The four stages are:

The four stages of design thinking: clarify, ideate, develop, and implement

  • Clarify: The clarification stage allows you to empathize with the user and identify problems. Observations and insights are informed by thorough research. Findings are then reframed as problem statements or questions.
  • Ideate: Ideation is the process of coming up with innovative ideas. The divergence of ideas involved with creative problem-solving is a major focus.
  • Develop: In the development stage, ideas evolve into experiments and tests. Ideas converge and are explored through prototyping and open critique.
  • Implement: Implementation involves continuing to test and experiment to refine the solution and encourage its adoption.

Creative problem-solving primarily operates in the ideate phase of design thinking but can be applied to others. This is because design thinking is an iterative process that moves between the stages as ideas are generated and pursued. This is normal and encouraged, as innovation requires exploring multiple ideas.

Creative Problem-Solving Tools

While there are many useful tools in the creative problem-solving process, here are three you should know:

Creating a Problem Story

One way to innovate is by creating a story about a problem to understand how it affects users and what solutions best fit their needs. Here are the steps you need to take to use this tool properly.

1. Identify a UDP

Create a problem story to identify the undesired phenomena (UDP). For example, consider a company that produces printers that overheat. In this case, the UDP is "our printers overheat."

2. Move Forward in Time

To move forward in time, ask: “Why is this a problem?” For example, minor damage could be one result of the machines overheating. In more extreme cases, printers may catch fire. Don't be afraid to create multiple problem stories if you think of more than one UDP.

3. Move Backward in Time

To move backward in time, ask: “What caused this UDP?” If you can't identify the root problem, think about what typically causes the UDP to occur. For the overheating printers, overuse could be a cause.

Following the three-step framework above helps illustrate a clear problem story:

  • The printer is overused.
  • The printer overheats.
  • The printer breaks down.

You can extend the problem story in either direction if you think of additional cause-and-effect relationships.

4. Break the Chains

By this point, you’ll have multiple UDP storylines. Take two that are similar and focus on breaking the chains connecting them. This can be accomplished through inversion or neutralization.

  • Inversion: Inversion changes the relationship between two UDPs so the cause is the same but the effect is the opposite. For example, if the UDP is "the more X happens, the more likely Y is to happen," inversion changes the equation to "the more X happens, the less likely Y is to happen." Using the printer example, inversion would consider: "What if the more a printer is used, the less likely it’s going to overheat?" Innovation requires an open mind. Just because a solution initially seems unlikely doesn't mean it can't be pursued further or spark additional ideas.
  • Neutralization: Neutralization completely eliminates the cause-and-effect relationship between X and Y. This changes the above equation to "the more or less X happens has no effect on Y." In the case of the printers, neutralization would rephrase the relationship to "the more or less a printer is used has no effect on whether it overheats."

Even if creating a problem story doesn't provide a solution, it can offer useful context to users’ problems and additional ideas to be explored. Given that divergence is one of the fundamental practices of creative problem-solving, it’s a good idea to incorporate it into each tool you use.


Brainstorming is a tool that can be highly effective when guided by the iterative qualities of the design thinking process. It involves openly discussing and debating ideas and topics in a group setting. This facilitates idea generation and exploration as different team members consider the same concept from multiple perspectives.

Hosting brainstorming sessions can result in problems, such as groupthink or social loafing. To combat this, leverage a three-step brainstorming method involving divergence and convergence :

  • Have each group member come up with as many ideas as possible and write them down to ensure the brainstorming session is productive.
  • Continue the divergence of ideas by collectively sharing and exploring each idea as a group. The goal is to create a setting where new ideas are inspired by open discussion.
  • Begin the convergence of ideas by narrowing them down to a few explorable options. There’s no "right number of ideas." Don't be afraid to consider exploring all of them, as long as you have the resources to do so.

Alternate Worlds

The alternate worlds tool is an empathetic approach to creative problem-solving. It encourages you to consider how someone in another world would approach your situation.

For example, if you’re concerned that the printers you produce overheat and catch fire, consider how a different industry would approach the problem. How would an automotive expert solve it? How would a firefighter?

Be creative as you consider and research alternate worlds. The purpose is not to nail down a solution right away but to continue the ideation process through diverging and exploring ideas.

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Continue Developing Your Skills

Whether you’re an entrepreneur, marketer, or business leader, learning the ropes of design thinking can be an effective way to build your skills and foster creativity and innovation in any setting.

If you're ready to develop your design thinking and creative problem-solving skills, explore Design Thinking and Innovation , one of our online entrepreneurship and innovation courses. If you aren't sure which course is the right fit, download our free course flowchart to determine which best aligns with your goals.

importance of problem solving in entrepreneurship

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Where Entrepreneurs Find Inspiration

Ideas and Research from Stanford University

Entrepreneurship as Problem-Solving

Spotify Co-Founder Daniel Ek shares his very early experiences with entrepreneurship, which came about due to a need to solve problems. Ek also provides his definition of an entrepreneur, as “someone that has an itch for a problem, and is annoyed enough by that problem to seek a solution for it.”

Video clips from: A Playlist for Entrepreneurs [Entire Talk]

Execution is 95 percent, the big, hairy, audacious goal of spotify, solving a world of product problems, leading distributed teams, don't say yes to everything, opportunities in sensors and smart devices, product innovations can reduce piracy.

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The Ethics of Innovation [Entire Talk]

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Leadership in a Digital World

The duty of digital leaders, ethics in emerging technologies, disproportionate job displacement.

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A Brainy Approach to Innovation [Entire Talk]

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Embodying Innovation

Mind control of machines, pivoting toward impact, automating legal consulting, confessions of a ‘cyber-optimist'.

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‘What Would Different Look Like?'

Realities of startup life, essential but unsung skills, a blank invitation, choose your peers wisely.

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Problem-Solving Skills Every Entrepreneur Should Have

Problem Solving Skills Every Entrepreneur Should Have

Are you wondering what problem-solving skills every entrepreneur should have? 

Problem-solving is a basic skill that every entrepreneur should have.

Sometimes, you solve problems without really thinking too much about it.

When you are a businessperson, developing problem-solving skills is an important responsibility.

Your business will not succeed if you don’t know how to solve problems.

Furthermore, creative problem-solving in entrepreneurship is one of the vital keys to business success.

Hence, every success-oriented entrepreneur should be a passionate problem-solver.

Problem Solving Skills Every Entrepreneur Should Have

problem solving skills for entrepreneurship development

There are different problem-solving techniques to solve problems in business.

Business problems require different approaches; they require different levels of problem-solving skills.

Some business problems are easy to solve.

On the other hand, others demand a lot more thought and a thorough, skillful, and mature approach.

The fact remains that when you decide to start a business, you have to hone your problem-solving skills.

This particular skills-set is one of the more important traits of an entrepreneur.

Additionally, a smart business owner knows how to identify potential problem areas.

He/she should then begin to look for solutions to the problem.

Importance of Problem Solving Skills

Why is problem solving important in entrepreneurship

What is the importance of developing problem-solving skills?

Problem-solving skills are important in business because of the following reasons.

 It helps you resolve and avoid risky challenges

While it is important to know everything you can about the business that you are engaged in, knowledge alone is not enough.

You need to anticipate problematic situations.

Additionally, you need to address them with the appropriate problem-solving tools.

You have to know what systematic approach to use to solve the problem and stop it from becoming worse.

It makes you a better businessman

Most people are trained to do their jobs well.

Only a few individuals have problem-solving skills.

As an entrepreneur, if you have problem-solving skills, you have a better chance of solving unexpected business problems.

Hence, positioning your business for success.

It elicits respect

When people see you confidently solving problems that crop up in your enterprise, they are likely to view you with greater respect.

Also, they are more likely to recognize and appreciate your efforts and to cooperate with you.

Problem-solving skills bolster your self-esteem.

Furthermore, they help you handle your business responsibilities with self-confidence and ease.

When you know that you can navigate your way efficiently through the different stages of problem-solving, you stop worrying about problems.

Steps to Problem Solving

How do you identify and solve a problem

Problem-solving is a process.

You need to go through a series of steps to get the results that you want.

The different stages of problem-solving include.

 Defining the problem

Problem-solving is based on the premise that something is wrong or could be made better.

Hence, when solving problems, identify the problem by asking yourself what exactly it is that you want to fix or to solve.

This stage enables you to establish a goal for fixing the problem.

Even more, it enables you to recognize opportunities that could be very beneficial to your business.

 Exploring the different strategies likely to solve the problem

This stage includes brainstorming for different ways to address the problem.

List down all the possible solutions your team comes up with.

A more difficult problem sometimes requires a long list of viable solutions.

Determining the best solution

After you have drawn up your list, study the options thoroughly.

Which one is the most effective?

This will point out the solution that works best to solve or improve the situation and help you achieve your objective.

Which one is the most efficient?

This will point out which solution is affordable and convenient to apply.

Which one presents limited adverse consequences?

This will point out which solution has the lowest risk of negative side effects on the business.

Implementing the best course of action

This stage includes planning and actual implementation of the solution you have chosen based on the criteria already discussed.

Many experienced businessmen suggest that it’s better to implement the solution in short cycles.

This is because it gives you the opportunity to incorporate periods for testing and feedback.

Even more, you can make adjustments when called for.

Learning from the situation

Was the solution successful for solving the problem?

Solutions are not always “perfect” the first time.

Due to this reason, it is important for you to review the entire process.

Find out what elements of the solution worked and what didn’t.

Furthermore, determine the impact of the solution.

Reviewing results helps enhance your long-term problem-solving skills.

The next time you are faced with a similar problem, you are likely to address it more successfully and far more quickly.

You can get better at problem-solving.

It is a skill that you can build and improve on with practice.

How should an entrepreneur solve the problem

If you want to effectively solve the vital problems you encounter in your business, you need to develop several critical problem-solving skills.

The following skills will help you turn problems into opportunities, and make your business stronger.

Critical thinking skills

This is a very important problem-solving skill every entrepreneur should have.

Your brain is your most powerful asset.

Nothing compares with it when it comes to data processing and problem-solving.

You will have a difficult time steering your business to great heights if you don’t use your brainpower.

Critical thinking helps you to identify potential threats and turn them into opportunities.

Business success relies on great ideas, thoughts, and images that your mind generates.

Furthermore, this helps you to come up with decisive intentions and exceptional business plans.

The following strengths are products of critical thinking.

  • Business intelligence
  • Financial aptitude
  • Idea generation
  • Forecasting
  • Strategic execution of projects

If you and your team lack critical thinking skills, business success would be difficult to achieve.

Also, a person with high critical thinking skills looks at the problem in a logical, objective manner.

He makes no judgment about the issue.

More so, he gathers all the pertinent information and analyzes them before coming to a conclusion.

Competent grasp of the business

Firstly, it is imperative that you understand the business you are in if you want to succeed.

If you haven’t developed this yet, you should at least have the intention of doing so.

The sooner you take the steps to acquire this particular skill as an entrepreneur, the better it is for your business.

You can’t make your business succeed if you don’t know how it works.

Furthermore, you can’t effectively solve problems that you don’t understand.

Bill Gates made billions by sharpening his expertise in software development.

Furthermore, Donald Trump made sure he had a thorough understanding of everything related to real estate.

George Soros was able to amass his fortune by making sure that he understood global financial markets and knew how to handle market volatility.

To be successful, it is essential to understand your line of business.

You can develop your knowledge level by reading books and magazines.

Similarly, you can listen to experienced businessmen.

Doing research, attending seminars, and studying and evaluating industry trends are also ways to sharpen your knowledge.

The fastest and most reliable way to understand your business is to get your hands dirty.

This simply means that you have to take risks and put yourself on the line.

You need experience so you can thoroughly understand your business.

There are times when you will make mistakes.

The important thing is to learn from your mistakes.

As a result, you’ll become stronger and more confident after surviving those tough situations.

Creative or lateral thinking skills

Startup idea problems to solve

A person with these skills is able to think outside the box.

He/she is an innovator.

Also, he/she looks at problems from a fresh and original perspective.

Hence, they do not apply a one-dimensional approach to problem-solving.

A creative thinker digs deep into a problem.

He/she goes beyond the surface.

Hence, such a person is able to come up with unusual but practical solutions.

People skills

People skills is another important problem-solving skill an entrepreneur needs to develop.

When you invest in a business, you have to know how to approach and handle people, employees, customers, suppliers, consultants.

You have to build team spirit and constructively channel the skills of the people you work with.

Additionally, you have to think, plan, and work in synergy with them.

You can’t successfully do all these without adequate people skills.

You will not be able to persevere in your effort to make your business succeed if you don’t have the conviction that you can make things work.

If you don’t believe that you can find a good solution, you will give up.

You will not continue trying to look for ways to address a problem.

Your conviction that there is a solution keeps you focused.

In addition to that, it helps you stay positive.

Also, it motivates you to keep looking until you find a way to improve the situation.

When you allow doubts and pessimism to fill your mind, the solutions will really stay way beyond your grasp.


Another important problem-solving skill an entrepreneur should have is to be a good decision-maker.

A good entrepreneur is able to make firm decisions and take timely action.

Hence, when you are faced with a problem, you have to be quick on your feet.

You have to get all the facts quickly and analyze the situation.

You have to think of possible alternative approaches to solve the problem, and quickly decide what action to take.

Also, you have to be confident, resolute, and optimistic.

You have to think quickly.

Hence, you can’t afford to wring your hands and procrastinate.

When you make a decision, you also have to get the members of your team on board.

In other words, have to get them to support the decision and help make it work.

You can’t afford to let backroom second-guessing or lack of support undermine the results.

When people see you as a firm, decisive, and confident leader, they look up to you and help you implement solutions and reach organizational goals


Skills needed to run business successfully

Self-discipline is another vital problem-solving skill every entrepreneur should have.

You need self-discipline and focus to be able to solve problems.

Even if you have all the essential skills for problem-solving, you will not be able to solve problems when you don’t have focus, direction, and self-control.

Moreso, it takes a lot of discipline and commitment to be able to think critically, evaluate situations, and look for solutions.

You need to remain focused, avoid distractions, and stay on track even when things don’t seem to go your way.


You have to understand that not all decisions are perfect.

Some may require modifications.

When you see that the solution you initially take does not bring in the expected results, you shouldn’t hesitate to find out why things are not working out.

Identify your flaws and make the necessary adjustments.

Good entrepreneurs realize that to make a decision, to take action, and to eventually make modifications to the initial decision is always better than not to make any decision at all.

A good entrepreneur needs guts if he is to solve problems in business effectively.

You have to face problems head-on.

You have to be ready to apply extreme solutions or measures when necessary.

Similarly, you have to be ready to deal with the consequences of your actions or decision.

Just like all the other skills already discussed, you can develop guts by doing things and learning personal mastery.

How to Improve Problem Solving Skills

How do entrepreneurs solve problems

We’ve considered the importance of problem-solving skills that every entrepreneur should have.

Also, we’ve considered the basic steps to problem-solving.

It’s time to take a look at some of the important ways to develop problem-solving skills as an entrepreneur.

The following are useful problem-solving tips that you can apply to improve your entrepreneurial skills.

Be objective

Look at problems objectively.

Studying and analyzing problems objectively give you a higher chance of coming up with solutions.

Break the problem into manageable parts

Some people get overwhelmed by problematic situations because of the sheer size and extent of the problem.

Avoid feeling weighed down by how large a problem is.

To avoid this analyze and break it down into smaller parts.

Don’t look at it as one immense unit.

Doing this can discourage you from trying to solve the problem.

Take the problem one small step at a time.

Solve the little pieces.

This would help you easily put together a solution for the entire problem.

If there is a problem brewing in your organization, look at the different departments or areas separately.

Decide to tackle one area first.

Start fixing that, then move on to other problem areas.

Creative approaches to problem solving

Develop an inquisitive approach

A curious and analytical disposition is an incredible problem-solving tool.

Be inquisitive and carry out research.


Getting all the necessary information puts you in a stronger position of understanding what is wrong.

It helps you consider all the angles when you look for appropriate solutions.

Be receptive to other people’s inputs

You don’t have to get all the information on your own.

Solicit ideas and suggestions from the people you work with.

Be open to their contributions.

Furthermore, welcome their suggestions.

Develop the right attitude

In business, you are likely to come across problems that are new, unfamiliar, or challenging.

It is your job to be confident, quick-witted, and conscientious in looking for solutions to these problems.

Your attitude and mindset have a lot to do with your ability to respond.

They set the tone for how you come up with solutions.

Additionally, they determine your ability to lead.

The right attitude begins with your ability to stop a single negative thought from becoming a stream of unconstructive thoughts.

Solving problems is about how you think.

So, think and believe that you can solve a problem and you’ll increase the chances of being able to do so.

Think outside the box

Problem-Solving techniques in business

Successful problem solving requires you to look at things from another perspective.

Be inquisitive.

Always question and challenge things.

Furthermore, put yourself in another person’s shoes.

Think outside the box when looking for solutions.

Be open to collaboration

It is your job to facilitate the effort to reach a solution.

This task requires leadership skills.

You have to communicate with, motivate, and inspire your team so that everybody works together effectively to identify collaborative solutions.

Also, you have to enjoin everybody to cooperate so that the solutions are implemented successfully.

Accept the fact that you don’t have all the answers

Good leaders don’t always come up with the solutions themselves.

Their skills lie in inspiring others to work as a team to come up with feasible solutions.

A problem solver is able to put his ego aside.

He/she recognizes other people’s assets and is able to mine these resources for the benefit of the organization.

Similarly, he/she is quick to praise and to give credit where it is due.

Thus, ensuring that people remain motivated and inspired to work towards common goals.

How to solve business problems effectively

You need to be able to manage your feelings effectively when you are under stress.

Business problems are always a cause of stress.

They can make you feel afraid, uncertain, frustrated, and even angry.

Don’t allow powerful emotions to drive you to make wrong reactive decisions.

Stay composed.

Keep an objective and positive approach.

Staying cool and rational helps you solve problems more quickly.

Even more, it helps you think more clearly.

Also, it helps you come up with sound and creative solutions.

Learn how to be a problem solver by being able to stay in control of your emotions.

Take note of results

After you apply a solution to a problem, use analytics tools to measure the results.

Furthermore, evaluate the outcome.

Learn whatever you can from every situation.

It gives you experience-based information that will help you make better decisions for your business in the future.

 Conclusion on Problem Solving Skills Every Entrepreneur Should Have

Importance of entrepreneurship skills

If you want to be a successful businessman, it is important to learn how to be a problem solver.

Work on and develop the problem-solving skills every entrepreneur should have.

You need to be able to lead your team in solving problems.

Do this and you build a stronger team.

You can’t do this effectively if you are not aware of the many ways to develop problem-solving skills.

Establish a work environment that encourages people to discuss problems, and come up with innovative solutions.

Use the problem-solving tips discussed above and bring your business closer to success.  

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  • Published: 03 July 2023

Motivating entrepreneurial learning: moderation of problem-solving efficacy

  • Chieh-Peng Lin 1  

International Journal for Educational and Vocational Guidance ( 2023 ) Cite this article

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Drawing upon social learning theory, this study discusses entrepreneurial learning by including personal, social, and environmental factors as drivers of entrepreneurial learning and simultaneously exploring their mediator and moderator. Empirical tests are conducted using the data of graduate students in Taiwan. The test results show (1) entrepreneurial optimism, relational support, and environmental friendliness are positively and indirectly related to entrepreneurial learning through the mediation of entrepreneurial engagement; (2) the relationship between entrepreneurial optimism and entrepreneurial engagement is positively moderated by problem-solving efficacy; and (3) the relationship between environmental friendliness and entrepreneurial engagement is negatively moderated by problem-solving efficacy.

Motiver l’apprentissage entrepreneurial: Modération de l’efficacité de la résolution de problèmes S’appuyant sur la théorie de l’apprentissage social, cette étude traite de l’apprentissage entrepreneurial en incluant les facteurs personnels, sociaux et environnementaux comme moteurs de l’apprentissage entrepreneurial et en explorant simultanément leur rôle de médiateur et de modérateur. Des tests empiriques sont réalisés à l’aide des données d’étudiant·e·s diplômé·e·s à Taïwan. Les résultats des tests montrent (1) que l’optimisme entrepreneurial, le soutien relationnel et la convivialité environnementale sont positivement et indirectement liés à l’apprentissage entrepreneurial par la médiation de l’engagement entrepreneurial, (2) que la relation entre l’optimisme entrepreneurial et l’engagement entrepreneurial est positivement modérée par l’efficacité de la résolution de problèmes, et (3) que la relation entre la convivialité environnementale et l’engagement entrepreneurial est négativement modérée par l’efficacité de la résolution de problèmes.


Motivation für unternehmerisches Lernen: Moderation der Problemlösungskompetenz Unter Berufung auf die sozialkognitive Lerntheorie diskutiert diese Studie unternehmerisches Lernen, indem sie persönliche und soziale Faktoren sowie Umweltfaktoren als Treiber des unternehmerischen Lernens einbezieht und gleichzeitig deren Mediation und Moderation untersucht. Empirische Tests wurden anhand von Daten von Absolvent: innen in Taiwan durchgeführt. Die Testergebnisse zeigen, (1) dass unternehmerischer Optimismus, relationale Unterstützung und Umweltfreundlichkeit positiv und indirekt mit unternehmerischem Lernen durch die Mediation von unternehmerischem Engagement verbunden sind, (2) dass die Beziehung zwischen unternehmerischem Optimismus und unternehmerischem Engagement positiv durch die Problemlösungskompetenz moderiert wird und, (3) dass die Beziehung zwischen Umweltfreundlichkeit und unternehmerischem Engagement durch Problemlösungskompetenz negativ moderiert wird.

Motivación del aprendizaje de la iniciativa emprendedora: Moderación de la eficacia en la resolución de problemas Basándose en la teoría del aprendizaje social, este estudio analiza el aprendizaje de la competencia emprendedora incluyendo factores personales, sociales y ambientales como impulsores de dicho aprendizaje y explorando simultáneamente sus efectos mediadores y moderadores. Se han realizado pruebas empíricas con datos de estudiantes de posgrado de Taiwán. Los resultados muestran que (1) el optimismo emprendedor, el apoyo relacional y la cordialidad con el entorno están positiva e indirectamente relacionados con el aprendizaje de la iniciativa emprendedora a través de la mediación del compromiso emprendedor, (2) la relación entre el optimismo emprendedor y el compromiso emprendedor está positivamente moderada por la eficacia en la resolución de problemas, y (3) la relación entre la cordialidad con el entorno y el compromiso emprendedor está negativamente moderada por la eficacia en la resolución de problemas.

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This study was financially supported by National Science and Technology Council, Taiwan.

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Appendix 1: Measurement items

Entrepreneurial learning ( source brett & vandewalle, 1999 ).

EL1. I do my best to learn entrepreneurial practices.

EL2. I look for opportunities to develop new skills for entrepreneurship.

EL3. I enjoy learning new knowledge for entrepreneurship.

EL4. I am willing to take a risk of trying many learnings related to entrepreneurship.

EL5. I strive to enhance my entrepreneurial capability.

Entrepreneurial engagement ( Source Lin, 2010 )

When discussing about entrepreneurship,

EE1. I often feel full of energy.

EE2. I often feel vigorous.

EE3. I often feel enthusiastic.

EE4. I often feel excited.

EE5. I often feel happy.

EE6. I am often immersed in it.

Entrepreneurial optimism ( Source Chiu et al., 2018 )

If I decide to strive for entrepreneurship,…

EO1. I look forward to it with hope and enthusiasm.

EO2. I have great faith on it.

EO3. I expect to be happier than I am now.

EO4. I expect to succeed in what concerns me most.

EO5. I expect to get more of the good things in life than the average person.

Relational support ( Source Youssef et al., 2021 )

RS1. My classmates will support me.

RS2. My friends will support me.

RS3. My online friends of social networks will support me.

Environmental friendliness ( Source Schwarz et al., 2009 )

EF1. There are sufficient subsidies available for entrepreneurship in society.

EF2. There are sufficient qualified entrepreneurial consultant and entrepreneurial service support in society.

EF3. The bureaucratic procedures for founding a new company are not complicated.

EF4. The current environment in society for entrepreneurship is friendly.

Problem-solving efficacy ( Source Mei et al., 2020 )

PSE1. I am confident in working for my entrepreneurial goals continuously even if I am frustrated by my entrepreneurship.

PSE2. I am confident in solving problems in entrepreneurship.

PSE3. I am confident in dealing with different situations in entrepreneurship.

PSE4. I am confident in handling different affairs in entrepreneurship.

PSE5. I am confident in making things right in entrepreneurship.

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What entrepreneurs need for better problem-solving and superior solutions

Ladys Patino

Entrepreneurialism is first and foremost about creative problem solving. No matter how great your technology or idea, if it doesn’t solve an important problem for enough people, you have little chance for success. Still, most innovators are too eager to jump on a solution before they fully analyze and frame the problem.   

In the second edition of their pivotal book,  Designed-Centered Entrepreneurship , authors and innovation thought leaders Min Basadur, Michel Goldsby, and Rob Mathews, share fact-finding strategies that allow entrepreneurs to uncover information leading to better problem definition and superior solutions. Supported by extensive research and field-testing, they offer expert methods for doing a deep dive into as many potentially relevant facts as possible, approaching the problem with an openness to new information that challenges preconceived perspectives, soliciting a variety of viewpoints, and more.   

The three distinguished entrepreneurship experts, all who are academics and one, Min Basadur, who is founder of a consulting business, share how to overcome the odds faced with creating and bringing a breakthrough product or service to market. The book reads like a detailed “how to,” providing invaluable advice on everything from why it’s important to resist grabbing and running with an apparent solution, to what immersive strategies are needed to undertake a deep investigation into the problem space of a market.   

Punctuated with a number of on-the-ground examples that illuminate key points, the authors reveal the many strategies that will move entrepreneurs from making assumptions about markets, customers, and competitors to making informed decisions and taking strategic actions.   

For example, to describe their concept of a common mistake they dub: “great product, no market,” they share this scenario:   

“A consumer products company wanted to expand from retail into the institutional market. Market research indicated that the size and number of hospitals and schools afforded great opportunities for revenue growth. The plan was to approach this new market with the same routine used many times in retail: Make a superior product, promote it like crazy and watch the customers pour in. The company began a project to offer a better disinfecting and cleaning product than was currently used. Its testing showed that all current competitor products provided only marginal cleaning but passed the government laboratory germ killing tests. The solution was to produce a product that was both a cleaner and a disinfectant that killed germs much better.    

“After two years of intensive effort, the R&D department completed the project and a breakthrough, patentable formula was finally achieved. Field testing proved the new product killed germs significantly better than competitors’ because it unearthed tough-to-reach germs. The company was eager to unveil the new product to customers who surely would be excited by its breakthrough performance.  

  “When the product went to test market, the company was unable to sell even a gallon. As it turned out, purchasing administrators in hospitals and schools were searching far less for improved cleaning and disinfecting than they were for lower cost. The new product was more than double in price compared to the current product. Their current products were satisfactory in performance (no one was complaining) and purchasing decisions were made on price and service. So, the team had devoted two years on a great solution to a non-existing problem.”   

The authors go on to share seven strategies to employ during fact finding to avoid the “great product, no market” debacle.   

This second edition of  Design-Centered Entrepreneurship  has been updated to include social entrepreneurship, additional international examples, and enhanced support materials. Digital supplements include a virtual creative problem-solving profile, slides, and an instructor manual.   

Design-Centered Entrepreneurship enables entrepreneurs to fill in the missing piece that transforms opportunity recognition into a viable business concept. It demonstrates how the greatest discoveries occur when someone seeks answers others aren’t willing to pursue.  To learn more, visit . 

Written by Ladys Patino . Have you read? Developing a Business Coalition to Bolster Your Local Community  by  Jane Marsh . Accelerating energy transition with human centricity  by  Dr. Lance Mortlock . 4 Things Investors Look for in Company Leaders  by  Alexander Dillon . What CEOs Need to Know About Leveraging Webinars for Marketing .

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Entrepreneurship Is Essentially About Problem Solving Entrepreneurship is like jumping off a cliff and figuring out how to build an airplane on the way down.

By Rohit Bagaria • May 23, 2016

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Rohit, founder and CVO of (Budli which means change in Hindi), pens his thoughts on his purpose behind diving into the world of entrepreneurship.

I had got some experience in eCommerce both in India and the US by setting up a sourcing base for gadgets in China and the US and selling in marketplaces in India and the US using drop shipping. This experience in eCommerce helped me immensely when starting my ReCommerce (Reverse Commerce) Venture. This is also what helped me with the initial capital for my venture.

I was influenced by someone in the UK who started his career with ReCommerce of used music records amongst students. He went on to do quite well for himself and also started his own airline. His name is Sir Richard Branson. Elon Musk and his risk taking ability inspired me to think big at the same time.

I've always been fond of using the latest gadgets. I had recently upgraded my phone and was wondering what do I do with my old one. I had a few options:

  • Trade it into a local dealer. He would only buy back something if I bought something new from him. Also, the pricing was very inconsistent.
  • Use an online classified ad to sell my old phone. I had to list my product and wait for someone to contact me. I wasn't sure whether the callers were genuine buyers, when it would sell or at what price. The experience could be good, bad or ugly.
  • Leave it in a drawer somewhere in my house and the device would end up losing value and become dangerous e-waste.

Every problem is an opportunity. Entrepreneurship is essentially about problem-solving.

So I started focusing on this one problem - what do we do with our used gadgets? I did market research, looked at various models around the world, spoke to many different companies. Some of the facts which I came across was astounding:

  • India is the world's fastest growing smartphone market at 43% CAGR
  • Average replacement period for smartphones is 18 months
  • 100 Million smartphones shipped in India in 2015 would come back to the secondary market after 18 months. At an average ASP of US$100, this market is over US$10 Billion and growing rapidly.
  • Profit margins on certified pre-owned & refurbished devices are better than on new ones.
  • There are no large organized players in this space currently which is primarily unorganized.
  • India has 950 Million mobile phone users and 250 million smartphone users. ReCommerce can be used to bridge this digital divide.
  • India is a value and price sensitive market. There is a huge unmet demand for Certified Pre-Owned/Refurbished gadgets from a trusted source with the assurance of a warranty. There is no brand in India currently which has been able to create a mind space among the consumers for these gadgets.

"You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete."

The first step was to provide a consistent, controlled, curated selling experience which was missing. The way e-Commerce was focusing on the buying experience, I wanted to focus on improving the selling experience. The idea was to:

  • Provide an instant price discovery mechanism
  • Free shipment pickup across India
  • Prompt direct payment to the user after verification of the device.

This was an idea worth pursuing. I went about it in an analytical manner the way one goes about building a business:

  • Identify an unsolved problem
  • Find a technologically and logistically viable way to solve the problem
  • Understand the viability and scalability of the business.

When I connected these three dots was when I started Budli (meaning 'Change' in Hindi). My end-goal was to create and drive change in India. I followed the Lean Startup process - built my POC (Proof of Concept) and MVP (Minimum Viable Product) by initially outsourcing it.

I was just a guy with an idea - no team, finance or partners. I spoke to a few people who questioned my idea, that it had not been done before and if no one else had done it how do you know you will be able to. However, I had a conviction of this being a problem worth solving, and my ability to find a solution to the problem. In life, we regret more of the things we do not do than the things we do. Unless we are prepared to fail, we cannot succeed.

"I don't skate to where the puck is. I skate to where the puck is going."

The initial website was outsourced. I managed to get it up but now how do I validate it? How would I know if users would actually find it useful or not? There was no marketing, no one knew about the website. I started calling up local listings of people interested in selling their devices and asking them to check out the website. One person found it interesting and confirmed the order to sell his device. Awesome! But how do I fulfill the order? I had no logistics partners, no payment mechanism. So I went myself to collect the device and complete the transaction. Initially, I wore many hats - these included tech, marketing, product design, finance, sales, packing and delivery. I was able to resell the device online at a profit and that's how the journey started.

The transactions started growing and I built up a team. Unfortunately, located in Kolkata, we were facing numerous logistical and tax challenges. I realized that for this venture to grow to its potential, Kolkata wasn't the best place for it. I decided to relocate to Bangalore, set up a team there and scale it up.

"To strive, to seek, to find and not to yield."

During the journey, I've faced numerous challenges. There have been times when I was not sure how I would fulfill the next order. Three things helped me overcome these obstacles:

  • Clarity (Being clear about the end-goal)
  • Certainty (Knowing that the universe is pushing me forward towards it)
  • Purpose (When you walk with purpose, you collide with destiny. Doing something impactful and meaningful. Being part of something greater than ourselves.)

Apart from that above, patience, perseverance and passion are essential as well. I believe that entrepreneurs overcome their problems using these strengths along the way. Sometimes the difference between success and failure is just perseverance.

Over time, every idea, business model, and technology can be copied. The long-term success of any company depends on its vision and core values, which cannot be replicated.

When we start focusing on larger problems, our problems seem so small.

We are living in extraordinary times. Anyone in a remote corner of the world with a smartphone and Internet connection has access to more information than the President of the US had 15 years back.

Technology is radically transforming education, healthcare, financial services & utilities.

The primary medium through which this technology is going to be accessed by millions will be the Smartphone - the catalyst for creating change. ReCommerce has the potential to bridge this digital divide in India between people who have access to technologically advanced devices and those who don't. At the same time, reduce e-waste and help save the environment.

Change is the only constant. I'm manifesting my reality by embracing, creating and driving Budli (change).

Founder & CVO of

Rohit Bagaria is a zentrepreneur and Founder & CVO of ('Budli' means Change in Hindi) which is driving change in India through ReCommerce - Reverse Commerce of used gadgets like Smartphones, Tablets & Laptops. enables users to resell their used gadgets in a socially and environmentally responsible way and bridges the digital divide between people who have access to technologically advanced gadgets and those who don't. These products are refurbished and sold omni-channel.

He has 15 years of experience in various sectors, including software startup in the Silicon Valley, manufacturing & international B2B sales across 35 countries and eCommerce in India, China & the US. Former Director of Founder Institute (international startup accelerator & launch program) in Kolkata. His education is from UC Berkeley, California & St. Xavier's, Kolkata.

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importance of problem solving in entrepreneurship

Problem-solving Skills for Entrepreneurs

importance of problem solving in entrepreneurship

Everyone, even entrepreneurs, needs to tackle problems; the trick is to do it proactively before they happen. The more you anticipate problems in advance and make plans for how you'll solve them when they do come up, the more you will be able to sleep well at night. 

Even the best strategies face unexpected problems. Once you determine the top five problems your company faces each month, you can take steps to address them proactively. As entrepreneur:

  • Identify the most common issues that your company faces daily. What are the biggest headaches?
  • Make a list of problems your team needs to address.
  • Evaluate your current resources and capabilities. How can you allocate time and money to solve these problems? What options do you have to run new tests?
  • Think ahead to the next six months. Will some of the same issues still be around? How will you address them? Where will your company need more resources or practice?
  • Make a plan that addresses these issues as soon as possible, ideally during the next 30 days.
  • Assign a point person to monitor progress and act if they are not resolved.
  • Return to the problems on your list. Make revisions as necessary and resubmit them.

What matters in an entrepreneur's problem-solving skills?

Good entrepreneurs plan to take their businesses to the next level. They are goal-oriented individuals who can identify the factors that need to be solved and then create a proper plan to act. There are specific skills that enable one to put together a successful business plan efficiently. The entrepreneur needs to focus on the problem at hand and tackle it before the problem gets worse.

Think Critically

Critical thinking helps you understand what you are up against, which will help you formulate a more meaningful strategy to get through the problem. Successful entrepreneurs develop a habit of solving these problems systematically, rather than waiting for circumstances to place them in front of you before you act. 

Ability to Make Decisions

The ability to make good decisions quickly is must for every successful entrepreneur. Entrepreneurs are constantly bombarded with problems and determining the best course of action can be difficult. 

Take Initiatives

Without the ability to take charge, without the drive to put yourself in situations that can provide growth for your project and career, you will never be able to achieve success. A proactive mindset means they will look at their business' strengths and weaknesses to improve. 

Do you feel like you are struggling with putting "strategy" and "business growth concepts" in place that make a difference? Doing it all is overwhelming! Let’s have a honest discussion about your business and see if the Power of 10 can help you. Click  “HERE”  to have a great conversation with our team today.

Written By The Strategic Advisor Board - Chris O'Byrne C. 2017-2021 Strategic Advisor Board / M&C All Rights Reserved / [email protected]

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Problem Solving Skills Every Entrepreneur Should Have – Darshan Budhrani

Alexander Maxwell

Alexander Maxwell

importance of problem solving in entrepreneurship

First of all, who is an entrepreneur? They are individuals who turn ideas into reality and as a result, are very important in our society. Entrepreneurship comes along with a lot of responsibilities and risks. An Entrepreneur is one who, by risk and initiative, attempts to make a profit. He is commonly seen as an innovator, a designer of new ideas and business processes. As an entrepreneur, you’ll be facing one problem after another. In a journey fraught with challenges on a day-to-day basis, how does one embrace success? A lot of the responsibility for this lies on the shoulders of the entrepreneur and their approach to problems and challenges. What’s important isn’t how many problems you face, but instead how you address those problems.

Every entrepreneur has their own unique style, but some problem solving approaches are inherently more effective than others. Problem-solving skills are extremely important in life and more so in business. Regardless of your profession, industry or lifestyle, solving problems is part of everyday life. The entrepreneurial journey is riddled with ups and downs and my ability to solve problems has given me great success in business says Darshan Budhrani.

No problem is too much for an entrepreneur to solve. It can always be fixed, overturned, circumvented, or avoided altogether through changes. The most successful entrepreneurs don’t accept defeat; they keep moving and changing. Part of being a great problem solver is knowing how to evaluate each situation and look at outcomes on a holistic level, analyzing how your solutions will affect you or your business in the long term. Today isn’t nearly as important as a day three to five years from now. Successful entrepreneurs don’t rely on patchwork fixes; they always prioritize long-term solutions.

Persistence, determination or perseverance is a key trait of successful people. The best news is that problem-solving skills can be developed over time. Through practice and persistence, you can teach yourself to think critically, to be more decisive and to analyze situations faster and better.

Darshan says my problem-solving skills have developed and improved over time through experience and hearing about the experiences of other entrepreneurs. Management skills and strong team-building abilities are often perceived as essential leadership attributes for successful entrepreneurs. Success is about how you stand out in a crowd, make a mark, and do things differently. For an entrepreneur, that is what differentiates the successful ones from the rest.

Some problem-solving skills that entrepreneur should master

importance of problem solving in entrepreneurship

Decision Making Skills

The next skill that every entrepreneur must possess is decision making. After analyzing several possible solutions to the problem at hand, an entrepreneur must be able to arrive at a decision quickly.

Critical Thinking

When in a problem, most of us tend to make decisions in a hurry. We simply execute the first idea that comes into our minds without taking the time to think about the issue at hand.

Critical thinking is the process of taking your time to digest the issue at hand logically before making a judgment.

Having initiative is central to becoming a successful entrepreneur. Not only is it important in terms of customer acquisition, it helps when you have to solve a problem.

Proactive entrepreneurs are always looking for new ways to do things, to communicate with their staff and to improve their product or service, inadvertently reducing the risk of having problems in the future.

Understanding the Business

This is one of the most important skills set that every individual must-have. This skill is not one you can develop in your closet, it’s a skill you develop by putting yourself on the line, it’s a skill you develop by getting your hands dirty. Understanding comes from experience, and experience is all that is required in the business.

Communication Skills

Entrepreneurs with good people skills inspire others to be more confident in expressing their opinions and encourage them to give feedback, which can speed up the process of finding solutions.

Every day is another adventure, and sometimes on those adventures, your job is to put out fires. It is in these moments success is struck or failure is found.

Connect with Darshan Budhrani –

importance of problem solving in entrepreneurship

May 14, 2018

The Importance of Creative Problem-Solving in Entrepreneurship

I was a math major in college and graduate school, but certainly not a math genius.  I struggled to get my graduate degree.  But I learned the art and science of problem solving through mathematics.  I don’t remember any of the mathematics, but I use the problem-solving skills that I learned every day.

In college, you are not given 50-100 arithmetic problems to solve.  Instead, you may work on one or two problems for days or even weeks.  Sometimes I would work late into the evening, go to sleep and the solution would come to me while sleeping at 3:00 am.  The problem with this, of course, is that I still wake up at 3:00 am every night now.  But, back to the point, I learned to solve complex problems.

There is no greater use for this skill than in entrepreneurial companies.  As an entrepreneur, trying to grow you company, you are faced with a myriad of problems which might include, product problems, marketing problems, sales problems, financial problems, customer support problems, people problems, partner problems and on and on.  The solution to these problems is often not easy.  There are many choices and choosing the right solution for your individual situation (of the problem, the company, the resources available (etc.) are many).  But building a company is solving a constant, on-going and evolving set of problems.

This is a skill that is an absolute requirement for a successful entrepreneur.   But many entrepreneurs are not equipped to solve problems outside of their domain expertise.  This is where companies often break.  You need to know how to apply the problem-solving skill to a range of issues. So, if you have a problem, and you can’t solve it, the solution is to find someone who can.

A natural way to think about problem-solving involves curiosity. People who are naturally curious can often be very good problem solvers.  They can think about what can go wrong and explore solutions to either prevent the problem or solve it if it does occur.  So, it does not take the smartest person to solve a problem, it can take the most curious person to solve it.  Einstein once said that there was nothing remarkable about him except for his curiosity.

There is (probably) no set plan for general problem-solving. Here are some suggestions that can help:

  • Accept that problems are inevitable
  • See problems as opportunity
  • Truly understand the problem
  • Do not over-react.  Learn to objectively evaluate threats and consequences
  • Break the problem down into components if possible
  • Look to other industries for potential solution ideas
  • Determine what you can and can’t control (make a list)
  • Gather ideas from others but do not necessarily try to solve the problem using group-think
  • Let ideas percolate (remember my going to sleep and having the solution come to me while sleeping)
  • Establish a plan with metrics for success and timetable and plan B if plan A does not work in the established time frame
  • Take bold actions
  • Listen to the nay-sayers and incorporate their issues into your plan but do not get discouraged by what they say
  • Relentlessly communicate your plan for solving the problem
  • Get buy in from stakeholders
  • Execute the plan relentlessly to the lowest level possible
  • Learn from the problem to see if improvements can be made here and elsewhere to prevent future problems

But most importantly, understand the current problem and make sure that you are focusing on the problem that you actually have and not the one that you would like to have or are more comfortable solving.  I have a number of customers whose challenges are clear.  But they focus on what they want to do rather than what the real issue is.  They either refuse to accept the problem in front of them, or, they fail to recognize it.  Neither is good.

In addition, one potential downside of this is that STEM or other science-educated people, who often end up in entrepreneurship, are not equipped for the “artistic” side of problem-solving.  For instance, engineers or health educators and others, like certainty and also don’t like to take risks.  Problem solving in entrepreneurship is, therefore, somewhat different than problem-solving in science.  You may never have certainty and you always have risk.  You need creativity, some risk-taking and other skills that are uncomfortable for science or math educated people.  If you are uncomfortable with uncertainty and risk, this is where having strong “artistic” people can come into play.  An artistic person also solves problems and often is more creative and comfortable with risk-taking.  The idea here is what I said at the beginning: “entrepreneurial problem-solving is both art and science”.   So creative problem-solving is required.  To achieve creativity in problem-solving, do whatever you do to get the creative juices flowing like read, play music, look at art, go for a walk, talk to others, take a nap…

In order to succeed in building a company, you need to be a relentless problem-identifier and problem-solver.  In my opinion, it is the most critical skill or characteristic required of an early-stage CEO.  Problems are inevitable.  Seeing them as opportunities is healthy and also reduces stress since you are anticipating them rather than surprised by them.  What can go wrong, will go wrong.  So, buck up and try to anticipate challenges and problems before they bite you.

Here is the conclusion.  Building a company is solving a series of problems across a wide range of issues.  Learn to recognize and focus on the problems that are truly impacting your business, not what you are comfortable with.  Accept problems, learn to deal with them and combine scientific and artistic problem-solving skills, or have a team that can work together to do that…or die.  OK?

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Problem-solving skills for entrepreneurs: Why they are important

As an entrepreneur, you will face many challenges and obstacles on your journey. These challenges can range from minor issues like shipping delays to major problems like financial difficulties. The ability to solve these problems effectively is crucial to the success of any business.

What are problem-solving skills?

Problem-solving skills involve the ability to analyze a situation, identify potential solutions, and implement the best course of action. It requires critical thinking, creativity, and adaptability. Entrepreneurs must be able to address problems in a timely manner while maintaining composure and making informed decisions.

The importance of problem-solving skills in entrepreneurship

Without effective problem-solving skills, entrepreneurs may struggle to overcome obstacles and achieve their goals. Problems that are not addressed can escalate quickly and lead to bigger issues down the road. In some cases, failure to address a problem can even result in the failure of the business itself.

Entrepreneurs who possess strong problem-solving skills are better equipped to handle unexpected challenges that arise. They are able to anticipate potential problems before they occur and develop strategies for addressing them if necessary.

Additionally, entrepreneurs who possess strong problem-solving skills are often more resilient in the face of adversity. They have confidence in their ability to find solutions and are able to bounce back from setbacks more quickly than those who lack these skills.

Overall, possessing strong problem-solving skills is essential for success as an entrepreneur. It helps you navigate challenges more effectively, make informed decisions with confidence, and adapt quickly when necessary.

Understanding the Problem

Identifying the root cause of the problem.

Entrepreneurs face problems regularly and they can be anything from revenue decline, employee issues, unsatisfied customers to even technological difficulties. It is important to start by identifying and analyzing the root cause of the problem.

If proper identification is not done, solutions will not be effective or sustainable. This requires asking yourself a lot of why questions until you find the underlying problem that caused it all.

For example, if your company’s sales have taken a dip, it’s essential to ask why this happened – is it due to external factors such as a change in customer preferences or internal issues like poor product quality? By asking these types of follow-up questions and tracing back to the initial cause for concern, you can identify what truly needs fixing.

Defining Scope and Boundaries of the Problem

Once you have identified the root cause of a problem as an entrepreneur, defining its scope and boundaries will help narrow down your focus area. This involves understanding how far-reaching this issue is or if it’s just confined within specific teams or areas in your business.

Defining scope mostly involves listing all areas affected by an issue when doing this; entrepreneurs must consider their business’s stakeholders – customers, employees, suppliers and any other parties involved in their operations. A clear understanding of who is most affected helps define boundaries while focusing on solutions.

For example, if there are product quality issues in your company warehouse that are only affecting a particular range of products then redefining parameters for storage might be all that’s necessary without affecting other products unrelated to them. : The process of understanding problems starts by identifying its root cause before defining its scope and boundaries.

As an entrepreneur once these two steps are done together with brainstorming sessions involving key stakeholders which analyze impacts on each solution considered helps determine best solutions needed to address the issue. Failure to focus on the underlying problem and scope might lead to developing solutions that are too narrow or too broad, which won’t result in effective or sustainable change.

Brainstorming Solutions

Generating ideas and solutions to solve the problem.

As an entrepreneur, you will face a lot of challenges that require creative and innovative solutions. Brainstorming is a great way to generate ideas that can help you solve problems.

The first step is to gather people who have different perspectives on the issue at hand. This may include employees, investors, or even customers.

It’s important to create a safe and open environment where everyone feels comfortable sharing their ideas without fear of judgment or criticism. Encourage everyone to speak up and contribute their thoughts no matter how big or small they may seem.

Once you have gathered all the ideas, evaluate them based on their feasibility, cost, and potential impact. Consider which solutions are most practical and realistic given your available resources and timeline.

Evaluating each solution based on feasibility, cost, and impact

The next step is to evaluate each solution in more detail by considering its feasibility, cost-effectiveness, and potential impact on your business. Feasibility refers to whether the solution is possible given your resources such as time, money or expertise. Cost-effectiveness refers to whether the benefits of implementing the solution outweigh its costs in terms of time or money invested.

,the potential impact considers how much this solution can help you achieve your goals as well as how it can affect other areas of your business. You may also want to consider which solutions offer long-term benefits versus short-term gains so that you can prioritize accordingly.

Don’t be afraid to think outside the box when evaluating solutions! Sometimes unconventional ideas can lead to breakthroughs that set your business apart from competitors.

The power of diversity in brainstorming sessions

It’s essential that you include diverse participants in brainstorming sessions as they tend to bring new perspectives into discussions. People with different backgrounds bring unique experiences which can lead to new, innovative solutions that you might not have thought of.

Including employees from different departments or levels of seniority can also be beneficial. Junior employees may see problems from a different angle than executive management, and they are often more willing to take risks.

In addition, incorporating customers into problem-solving sessions can give you insight into their needs and preferences. This information can help you develop products/services that better meet their needs and increase customer satisfaction.

Using technology to enhance brainstorming

Technology has revolutionized the way we work and communicate. There are many tools available that can help enhance brainstorming sessions.

For example, mind mapping software such as Mindmeister or Coggle allows you to visualize ideas in a hierarchical format. This helps with organizing thoughts and seeing connections between ideas.

Collaboration tools like Zoom or Google Meet enable teams to conduct remote brainstorming sessions, which is especially useful during times when traditional face-to-face meetings are not feasible. Project management software like Asana or Trello helps teams keep track of the progress of individual tasks related to executing solutions generated in brainstorming sessions.

Don’t dismiss seemingly crazy ideas

It’s essential not to dismiss any idea without giving it due consideration as sometimes unconventional solutions can lead to breakthroughs that set your business apart from competitors. Encourage everyone involved in your brainstorming session to think outside the box – even if an idea seems too far-fetched at first glance.

Sometimes all it takes is one innovative idea for a business breakthrough. Experimentation with new concepts is integral for growth and development; this means that unorthodox solutions must be explored, tested thoroughly before rejecting them out right’s always essential for an organization or entrepreneurs willing growth should experiment with some radical ideas preserving its core values resulting generating some unique solution sets that eventually could lead towards success

Implementing Solutions

Developing a plan to execute the chosen solution.

Once you have identified a solution that solves the problem, it’s time to develop a plan to execute it. Start by breaking down the solution into smaller, manageable steps.

Determine what needs to be done first and what can be done simultaneously. Assign deadlines for each step and make sure they are realistic and achievable.

It’s important to also consider potential roadblocks or obstacles that may arise during implementation. It’s also crucial to involve all stakeholders in the planning process.

This includes employees, customers, suppliers, and anyone who may be impacted by the solution. Seek their input and feedback to ensure that everyone is on board with the proposed plan.

Communicating with stakeholders and delegating tasks

Clear communication is essential when implementing solutions. It’s important to keep all stakeholders informed of any changes or updates throughout the process.

This can include regular status updates via email or a project management tool like Asana or Trello. Delegating tasks is another important aspect of implementation.

Identify who will be responsible for each step of the plan and make sure they have the necessary resources to complete their tasks successfully. Encourage collaboration among team members and provide support when needed.

It’s also important to track progress during implementation. Regular check-ins can help identify any issues early on and allow for corrective action before it’s too late.

The Importance of Flexibility

While developing a plan is important, it’s equally crucial for entrepreneurs to remain flexible throughout implementation. Unexpected challenges or roadblocks are inevitable in any project, so it’s best to anticipate them from the start.

Be prepared to adjust your plan as needed if new information arises or if a particular approach isn’t working as expected. Remember that flexibility allows you to pivot quickly when something unexpected occurs.

The Power of Positive Reinforcement

Implementing solutions can be a challenging task, especially when dealing with complex problems. It’s important to celebrate small wins along the way and recognize the hard work of those involved.

Positive reinforcement can be as simple as offering verbal praise or creating a recognition program that rewards employees for their contributions. This helps to build morale and keeps everyone motivated throughout the implementation process.

Celebrate Success

Once the solution has been successfully implemented and the problem has been solved, it’s time to celebrate! Take time to reflect on what went well, what could have been done differently, and what was learned from the experience. Celebrating success not only recognizes the hard work of those involved but also reinforces a positive culture in your organization.

Adapting to Change

The importance of being flexible and open-minded.

As an entrepreneur, you will inevitably face unexpected challenges and setbacks along the way. The ability to adapt to change is critical for success in this field.

Being flexible and open-minded allows you to adjust your plans when needed, pivot your business strategy, and ultimately overcome obstacles that may come your way. One of the most common mistakes entrepreneurs make is being too rigid in their thinking.

When things don’t go according to plan, they can become frustrated and stuck in their ways. However, by approaching problems with an open mind and a willingness to try new things, you can often find creative solutions that you might not have considered otherwise.

Adjusting Plans Accordingly

In order to adapt to change effectively as an entrepreneur, it’s important to have a solid plan in place from the start. This includes setting clear goals and objectives for your business, as well as creating a roadmap for how you plan on achieving them. However, it’s also important to recognize that plans may need to be adjusted along the way.

This doesn’t necessarily mean abandoning your original goals altogether – rather, it means being open to changing course if necessary in order to achieve those goals more effectively. One way of doing this is by regularly assessing your progress towards your goals and adjusting your plans accordingly.

This could involve revising timelines or budgets based on changing circumstances or shifting priorities. Ultimately, the key is finding the right balance between sticking with your original vision for your business while also being willing to adapt when necessary in order stay on track towards achieving success.

Problem-solving skills are essential for any entrepreneur who wants to succeed in today’s fast-paced business world. By developing these skills through practice and experience – whether it’s through brainstorming solutions or adapting to change – you can position yourself to overcome any obstacle that comes your way.

Remember, the road to success is rarely straight and smooth. However, by building a strong foundation of problem-solving skills – along with passion, perseverance, and a bit of luck – you can achieve your entrepreneurial dreams.

Measuring Success

Setting measurable goals for success.

As an entrepreneur, it is important to set measurable goals for success. Without a clear understanding of what you are trying to achieve, it can be difficult to make progress or know when you have reached your destination. Setting measurable goals allows you to track and measure your progress and make adjustments as needed.

Start by defining your long-term business goals. What do you want to achieve in the next five years?

Ten years? Once you have a clear idea of the big picture, break these down into smaller, more manageable goals that can be achieved in shorter time frames.

For example, if your long-term goal is to grow your business by 50%, a short-term goal may be to increase sales by 10% in the next six months. When setting these goals, ensure that they are specific, measurable, achievable, relevant and time-bound (SMART).

This means that each goal should be clearly defined with a deadline for completion. It should also be realistic based on your current resources and capabilities.

Tracking Progress and Making Adjustments as Needed

It is important to regularly track progress towards your goals in order to stay on track and make adjustments as needed. This can help you identify areas where improvements need to be made or identify new opportunities for growth.

One effective way of tracking progress is using key performance indicators (KPIs). KPIs are specific metrics that help measure progress towards achieving a particular goal.

For example, if one of your short-term goals is to increase website traffic by 25%, some relevant KPIs might include website visitors per day or conversion rates from visitors into customers. Regularly reviewing these KPIs allows you to gain insights into what is working well and what needs improvement.

If certain metrics are not meeting expectations, this may signal the need for changes to be made in your strategy or tactics. Conversely, if certain metrics are exceeding expectations, it may be beneficial to allocate more resources towards those areas.

In addition to tracking progress using KPIs, it is also important to regularly revisit your goals and make adjustments as needed. This may involve adjusting timelines or reallocating resources towards different goals that have higher priority.

Ultimately, measuring success is about having a clear understanding of what you are trying to achieve and tracking progress towards those goals. By setting measurable goals and tracking progress regularly, you can ensure that your business stays on track and continues moving forward towards achieving success.

Recap of Key Points on Problem-Solving Skills for Entrepreneurs

Throughout this article, we’ve discussed the importance of problem-solving skills for entrepreneurs. It’s not enough to just have a good idea; you need to be able to adapt and overcome challenges in order to turn that idea into a successful business.

We started by discussing the importance of understanding the problem and identifying its root cause. Without a clear understanding of what you’re dealing with, any attempted solutions may be ineffective or even make the situation worse.

From there, we moved on to brainstorming solutions and evaluating each one carefully before settling on a course of action. Then, we talked about implementing those solutions and adapting to changes when necessary in order to stay on track toward achieving your goals.

We discussed the importance of measuring success and setting measurable goals along the way. This helps keep you accountable and focused as you work through complex problems.

Encouragement to Develop These Skills Through Practice and Experience

Developing strong problem-solving skills takes time, effort, and practice. Don’t be discouraged if it doesn’t come naturally at first – it’s a skill that can be honed over time with experience.

One great way to practice is by seeking out opportunities where you can work through complex problems. This could include taking on challenging projects at work or volunteering for causes that require creative thinking.

Another important aspect is learning from your mistakes. When things don’t go as planned, it’s easy to get discouraged or frustrated but instead use these moments as opportunities for growth by reflecting on what went wrong and how you could improve next time.

In addition, networking with other entrepreneurs who have faced similar challenges can provide valuable perspective and insights into different approaches to problem-solving. Developing strong problem-solving skills is crucial for success in entrepreneurship.

By focusing on understanding the problem, brainstorming solutions, implementing plans, adapting to changes, and measuring success, you can approach any challenge with confidence and creativity. Remember that practice makes perfect and don’t be afraid to seek out new experiences that will help you continue to sharpen your skills over time.

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    Sometimes, we must disregard our past successes and research to be open to new possibilities for success and failure. An entrepreneurial mindset includes creativity, problem-solving skills, and a propensity to innovation. 23 Open-mindedness is one characteristic that supports creativity, problem solving, and innovation.

  11. 6 Must-Have Entrepreneurial Skills

    Are Entrepreneurs Born or Made? Whether entrepreneurship is a mix of innate traits or learned abilities is a constant debate. While risk tolerance, resilience, innovation, and creative problem-solving can provide a head start, they aren't the only qualities to becoming an effective business owner. Unlike personality traits and demographic details, you can learn and practice entrepreneurship ...

  12. What Is Creative Problem-Solving & Why Is It Important?

    Creative problem-solving primarily operates in the ideate phase of design thinking but can be applied to others. This is because design thinking is an iterative process that moves between the stages as ideas are generated and pursued. This is normal and encouraged, as innovation requires exploring multiple ideas.

  13. Entrepreneurial problems, scholarly impact and the pursuit ...

    Entrepreneurship researchers play an important role in using entrepreneurship as a tool for change. ... without fully understanding a problem, entrepreneurship researchers cannot begin to address it through rigorous research. ... Stouten, J., & van Knippenberg, D. 2021. The theory crisis in management research: Solving the right problem ...

  14. Entrepreneurship as Problem-Solving

    Entrepreneurship as Problem-Solving. Spotify Co-Founder Daniel Ek shares his very early experiences with entrepreneurship, which came about due to a need to solve problems. Ek also provides his definition of an entrepreneur, as "someone that has an itch for a problem, and is annoyed enough by that problem to seek a solution for it.".

  15. Problem-Solving Skills Every Entrepreneur Should Have

    Furthermore, creative problem-solving in entrepreneurship is one of the vital keys to business success. Hence, every success-oriented entrepreneur should be a passionate problem-solver. ... People skills is another important problem-solving skill an entrepreneur needs to develop. When you invest in a business, you have to know how to approach ...

  16. Motivating entrepreneurial learning: moderation of problem-solving

    For that reason, problem-solving efficacy is proposed as a key moderator that intervenes the effects of the proposed predictors in this study. It is defined herein as individuals' confidence that they can successfully solve entrepreneurial problems. The aim of this study is to extend current learning models to the context of entrepreneurship ...

  17. What entrepreneurs need for better problem-solving and superior

    Digital supplements include a virtual creative problem-solving profile, slides, and an instructor manual. Design-Centered Entrepreneurship enables entrepreneurs to fill in the missing piece that transforms opportunity recognition into a viable business concept. It demonstrates how the greatest discoveries occur when someone seeks answers others ...

  18. Entrepreneurship Is Essentially About Problem Solving

    Entrepreneurship Is Essentially About Problem Solving Entrepreneurship is like jumping off a cliff and figuring out how to build an airplane on the way down. By Rohit Bagaria • May 23, 2016 ...

  19. Problem-solving Skills for Entrepreneurs

    Successful entrepreneurs develop a habit of solving these problems systematically, rather than waiting for circumstances to place them in front of you before you act. Ability to Make Decisions. The ability to make good decisions quickly is must for every successful entrepreneur. Entrepreneurs are constantly bombarded with problems and ...

  20. Problem Solving Skills Every Entrepreneur Should Have

    Problem-solving skills are extremely important in life and more so in business. Regardless of your profession, industry or lifestyle, solving problems is part of everyday life. The entrepreneurial journey is riddled with ups and downs and my ability to solve problems has given me great success in business says Darshan Budhrani. No problem is ...

  21. The Importance of Creative Problem-Solving in Entrepreneurship

    The idea here is what I said at the beginning: "entrepreneurial problem-solving is both art and science". So creative problem-solving is required. To achieve creativity in problem-solving, do whatever you do to get the creative juices flowing like read, play music, look at art, go for a walk, talk to others, take a nap….

  22. Problem-solving skills for entrepreneurs: Why they are important

    The importance of problem-solving skills in entrepreneurship. Without effective problem-solving skills, entrepreneurs may struggle to overcome obstacles and achieve their goals. Problems that are not addressed can escalate quickly and lead to bigger issues down the road. In some cases, failure to address a problem can even result in the failure ...

  23. Why is problem solving skill important for an entrepreneur?

    An entrepreneur takes each problem as a challenge and put in best for finding out the most appropriate solution for the same. He/she will first of all understand the problem and then evolve appropriate strategy dealing with the same.

  24. November 2023 Child Support Report

    This problem-solving approach helps us collaborate with tribal directors to identify problems and gain insight and input about potential solutions. Three OCSS teams partnered with the University of Maryland Academy for Innovation and Entrepreneurship to learn about human-centered design and interviewed tribal directors about their program needs ...