Why do many folks teach business plans?
From our research . . .
It’s not because they think the business plans are the best tool for building a business.
We asked the Teaching Entrepreneurship community what tools they teach and many of the instructors we surveyed teach business plans because it’s a course requirement or because they believe it’s “standard practice” outside academia.
Our research appears to contradict the notion that business plans are standard practice as a majority (57%) of instructors outside academia don’t teach business plans at all.
In fact, across the nearly 300 instructors we surveyed, only 8% teach the business plan exclusively.
Compare that to the 88% of instructors who teach one of the “canvases” (e.g. Business Model Canvas, Lean Canvas, and/or Value Proposition Canvas) and it’s clear business plans are no longer the de facto standard.
Why Do Teachers Love the Business Plan?
The few respondents teaching only the business plan cited many reasons for preferring this tool. The most commons reasons are:
- It is a comprehensive tool
- It is necessary for some funding sources like bank loans
- It is required by standards in the respondent’s particular context
But the vast majority of teachers don’t feel that way – across all teacher populations we surveyed (K-12 and higher ed, academic and non-academic, from the US and abroad), only 8% teach only the business plan.
For instructors and course coordinators who still teach the business plan:
- Requirements that business plans be taught because they are seen as a standard entrepreneurial practice should be reconsidered.
- While some instructors see benefits in teaching business plans, and they may be important to teach in some circumstances, they are taught by a minority of instructors both inside and outside academia and should no longer be considered the de facto standard for describing businesses.
What Entrepreneurship Tools Do Teachers Use?
“Canvases” (Business Model Canvas, Lean Canvas, and/or Value Proposition Canvas) have replaced the business plan as the most popular teaching tool.
As we mentioned earlier, 88% of instructors we surveyed teach with some version of a Canvas, and 50% teach the Business Model Canvas.
Why Do Teachers Love the Canvas?
Our respondents cited many reasons for preferring the Business Model Canvas. The most common reasons are:
- It is simple and user friendly. Specifically, some teachers noted the BMC is a way to engage non-business students that is not intimidating.
- It forces students to focus on customer development and experimentation as they pursue product-market fit.
- It is the dominant tool used in “the real world.”
Because of the dominance of the BMC in entrepreneurship education, we engaged Dr. Alexander Osterwalder in a series of posts to share how he teaches this tool.
How Do The Entrepreneurship Tools You Use Compare To Your Peers?
- Nearly 80% of K-12 teachers reported using a canvas tool to teach entrepreneurship, while almost 50% reported using a business plan.
- Nearly 90% of academic teachers reported using a canvas tool to teach entrepreneurship, while almost 50% reported using a business plan.
- Nearly 90% of US-based teachers reported using a canvas tool to teach entrepreneurship, while almost 50% reported using a business plan.
Other Popular Entrepreneurship Education Tools
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In future posts we will share more about our upcoming TeachingEntrepreneurship.org Summer Summit and about tools and methods to increase student engagement.
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