Developing an entrepreneurial mindset for transformational entrepreneurship: The case of Nordic transformative learning circles.

• Author: Slettli, Victoria Konovalenko

INTRODUCTION

This paper addresses the problem of developing entrepreneurial mindsets for enhancing transformational entrepreneurship. Given the challenges of globalization, aging populations, increasing migration, and increasing disparity between the rich and the poor, countries and governments are searching for solutions that can produce a positive impact on socioeconomic development. One of the proposed solutions relates to promoting transformational entrepreneurship in regions across the world (Ratten & Jones, 2018; Maas, Jones, & Lockyer, 2016).

The concept of transformational entrepreneurship is still in its infancy. According to Miller and Collier (2010, p. 85), transformational entrepreneurship "transcends economic terms and emphasizes the centrality and value of people, their vocations, and the many levels of relationality involved in entrepreneurship, in addition to the technical aspects of the business." It is based on the principles of supporting the interconnectedness of people and environments to facilitate adaptation and transformation through change, as well as decision-making in the conditions of uncertainty. By encompassing sustainable practices it may provide an impact on society through creative solutions that enable change and maximize economic and long-term societal impact (Ratten & Jones, 2018). In this paper, transformational entrepreneurship is understood as a purposeful action and a capability of bringing about changes in the life of an individual (entrepreneur) and in the organization where an individual is involved by contributing towards "global societal changes that involve the emergence of a new qualitative dimension of possibilities and conditions" (Staffas, 2017, p. 19). Meanwhile, entrepreneurship means initiating something new; transformational entrepreneurship refers to engaging in actions that "involve movements and creations in an entirely new dimension" (ibid.).

Entrepreneurship can be understood in terms of a particular type of mindset (McGrath & MacMillan, 2000) that can be developed through higher education programs, lifelong learning settings, and vocational training (Kakouris, 2015). Lamberton, 2005, p. 162 defines mindset as a "habitual or characteristic mental attitude that determines how you will interpret and respond to situations." Taks, Tynjala, and Kukemelk (2016) suggest that an entrepreneurial mindset is related to such skills as the ability to identify opportunities, creative problem-solving, strategic thinking, networking, life-long learning, resilience to failures and decision-making in the situation of uncertainty.

Worldwide educators are preoccupied with educational programs that would assist in developing the skills of seeking and seizing opportunities inherent to entrepreneurial mindsets (Oyugi, 2015; Leon, 2017). However, the general consensus is that traditional pedagogical approaches are "insufficient to adequately develop entrepreneurs," and there is a growing need to "cultivate innovative ways of thinking... to fully enhance and develop entrepreneurial approaches to education and learning" (Higgins, Smith, & Mirza, 2013, p. 135). Acknowledging the need for novel approaches that would promote entrepreneurial thinking and mindset, along with the importance of transformational entrepreneurship for local and regional development (Maas, Jones, & Lockyer, 2016) this paper addresses the following question: What learning processes promote the development of entrepreneurial mindsets for transformational entrepreneurship?

In order to answer this question, the paper presents a case study of an adult learning model called Transformative Learning Circles (TLC). The TLC model was elaborated by the Nordic Network for Adult Learning (NVL) with the support of the Nordic Council of Ministers for the purpose of promoting transformational entrepreneurship. The overall learning objective of the TLC model was to promote the integration of an entrepreneurial mindset as part of the individual's work activity and as an embedded cultural element in different social and organizational contexts. The pilot project of the TLC model was carried out in 2015-2017 in the Nordic setting including five countries: Denmark, Sweden, Norway, Finland, and Iceland. To answer the question of interest, this paper addresses the learning processes within the TLC model and discusses how they promote entrepreneurial mindsets for transformational entrepreneurship.

The findings suggest that learning which promotes transformational entrepreneurial mindsets occurs in a dynamic iterative loop where individual level learning is combined with knowledge-sharing and interaction at the group level. Three particular phases can be distinguished within the learning processes: 1) framing the praxis; 2) amplifying the frame of reference; and 3) reinterpreting the praxis. Furthermore, learning occurs as a result of instances that permit knowledge conversion between its tacit and explicit modes. The effect of the TLC learning processes on enhancing entrepreneurial mindsets for transformational entrepreneurship is illustrated in terms of learning outcomes.

The paper has the following structure. The next section provides an overview of the literature on entrepreneurial learning. The paper then describes the research method and introduces the case study of the TLC learning model. The following section presents the findings of the study describing three phases of the learning processes. The section is closed by proposing a conceptual model for the development of an entrepreneurial mindset for transformational entrepreneurship Finally, the paper offers a conclusion highlighting theoretical and practical implications of this research.

LITERATURE REVIEW

Preconditions for fostering an entrepreneurial mindset

The overview of the literature on entrepreneurial learning and education suggests several important factors for the development of entrepreneurial thinking and mindset that are considered in this section in more detail.

First, the nature of entrepreneurial learning is, to a large degree, experiential (Krueger, 2007; Kolb, 2014; Kakouris, 2015). This corresponds with the literature on experiential education. Particularly, learning occurs through experience from an interaction with a process and then transferring this experience into a new context/situation (Dewey, 1986). Knowledge is a set of experiences, but only by making use of and engaging in practice do we derive meaning and value from these experiences. However, experiential learning is not complete until it extends to a deeper cognitive reflexive learning (e.g., Higgins & Elliott, 2011; Pittaway & Thorpe, 2012; Fayolle, Pittaway, Politis, & Toutain, 2014). Therefore, critical reflective practice is important for fostering the development of entrepreneurial mindsets (Higgins, Smith, & Mirza, 2013; Kakouris, 2015; Lindh & Thorgren, 2016; Tikkamaki, Heikkila, & Ainasoja, 2016).

One of the ways to trigger the reflective process is by employing the principle of learning from critical events (or critical incidents)--a notion loaned from the cognitive psychology literature. Critical events refer to unexpected events that disturb the normal course of activity. Such events become triggers for reflection as they prompt humans to combine previous experiences and new ideas while reconsidering existing thoughts and actions (e.g., Woods, 2012). Scholars have emphasized the role of critical events for entrepreneurial learning and, in particular, learning how to deal with risk and uncertainty (e.g., Cope & Watts, 2000). In the research literature, critical events were presented as inalienable parts of entrepreneurial learning (Kolb, 2015; Lindh & Thorgren, 2016). Lindh and Thorgren (2016) argue that in order to develop an entrepreneurial mindset, one should possess an ability to recognize which events are critical to reflect upon and take action. Furthermore, for critical events to be useful for developing entrepreneurial thinking, learners must "recognize and define their thoughts, emotions and behaviors, and relate them to different conditions and judge them in relation to entrepreneurial determinants" (ibid., p. 538). Reflective learning does not start with the experience of a critical event, but with the ability to recognize such an event (ibid.). In this connection, authors suggest that critical event recognition should be addressed in teaching efforts including training entrepreneurs to detect their own thoughts, emotions, and behavior in different situations. The difference in cognitive preparation might provide an explanation of why some individuals learn from failures and unexpected events, whereas others don't.

Even though the critical incidents approach is recognized as useful in entrepreneurial learning, some scholars argue that it does not go far enough in aiding people to learn in a more reflexive manner (Higgins, Smith, & Mirza, 2013). In order to develop reflexive awareness, entrepreneurial learning should make use of reflexive critiques. Reflexivity implies questioning one's own practice and assumptions (ibid.). Furthermore, experiential learning yields its fruits when it is triggered by reflection upon one's own learning experiences (Cope, 2003). This is in line with the notion of self-critical reflection described by Mezirow, 1991 who connected learning with developmental educational psychology. Self-critical reflection denotes the ability to dispute one's own assumptions and stereotypes, "a uniquely adult form of metacognitive reasoning" (Mezirow, 2003). Metacognition refers to thinking about one's own thoughts and self-reflection about one's own reasoning, which is concerned with the validity of one's own thinking (Kakouris, 2015). The literature sees metacognition as a dynamic learned response that can be enhanced through training (Haynie, Shepherd, Mosakowski, & Earley, 2010; Liang, Lee, & Liang, 2015).

Reflecting on events or...