Entrepreneurship Propensity Index (EPI)
The Ubuntu Entrepreneurship Propensity Index (EPI) is designed to enable the measurement of youth Entrepreneurship Propensity (EP) and New Venture Creation (NVC) potential, through the collection of consistent and comparable data, to thereby inform entrepreneurship development interventions.
At the genesis of entrepreneurship propensity is one’s entrepreneurial mindset (optimism, commitment, determination, motivation and need to achieve) and their entrepreneurial intentions are underpinned by (sense of purpose, self-efficacy, opportunity identification and action orientation). Entrepreneurship propensity (mindset and intentions) lead to the attainment of entrepreneurial skills and experience through the process of new venture creation. An entrepreneur’s skills and experience continue to grow as they continue along their entrepreneurial journey, creating a compounding effect which results in entrepreneurial mastery.
The Ubuntu Entrepreneurship Propensity Index:
- A multidimensional instrument to measure entrepreneurship propensity and a method through which to develop and implement EPI segment specific programmes for low and high EP
- A way in which to improve entrepreneurship development programme recruitment thereby matching the right candidate with the right programme to achieve better outcomes in relation to NVC
- A valid and reliable instrument for financiers to use in the funding application process, to improve the allocation of financial resources and reduce risk based on the high failure rate of small businesses.
Entrepreneurship Mindset + Intentions = Entrepreneurship Propensity
High EPI scores suggest that an individual demonstrates the personality profile of a successful entrepreneur and requires help in unlocking their entrepreneurial potential. The support required by these individuals is fundamentally different to that of low to medium levels of EP. Interventions used to support high EP individuals are based on coaching and mentoring entrepreneurs through programmes, largely aimed at empowering them with the skills, knowledge, tools and experience they need to become successful entrepreneurs.
Low EPI scores suggest the need to develop an individual’s entrepreneurial mindset and entrepreneurial intentions. The support required for low EPI scores is based on helping individuals to believe that they are in control of their successes in life and that external factors (and their personal circumstances) do not determine their future. The goal of such interventions is to improve EPI scores by developing self-confidence, self-belief, and self-motivation in relation to entrepreneurship, while strengthening an individual’s entrepreneurial mindset.
Articles on EPI
Intrinsic entrepreneurship propensity is based on an individual’s predisposition towards entrepreneurship and their likelihood to persist through the setbacks and failures that are inherent in the entrepreneurial process.
We have developed an effective method through which to measure entrepreneurship propensity and determine new venture creation potential, which is based on several years of