Why employers undervalue the skills they need most

(and what to do about it) 

Professor Rod McNaughton

Here’s a paradox that should give employers and universities pause: the skills employers say they most seek in hiring graduates—problem-solving, communication, and resilience—are precisely those cultivated through entrepreneurship. Yet, in the latest QS Employer Reputation Survey, entrepreneurship ranks dead last among the 18 skills employers deem essential. Even more perplexing, there’s a negative skills gap, meaning employers think graduates are more entrepreneurial than they want them to be!  

Quacquarelli Symonds (QS), a higher education analytics firm, produces a global university ranking in which the opinions of employers have significant weight. The University of Auckland is 65th in the QS ranking, placing us well within the world’s top 100. Developing the skills employers want is important to us and our alumni.  

What can employers possibly be thinking? At first glance, the contradiction seems baffling. How can a discipline that so effectively develops the competencies most in demand be simultaneously undervalued? This conundrum begs for a deeper understanding of the biases and assumptions driving current hiring practices—and, more importantly, helping employers understand the power of hiring entrepreneurial graduates. 

The overlap of desired skills and entrepreneurial competencies 

At the University of Auckland Business School’s Centre for Innovation and Entrepreneurship (CIE), we deliver free co-curricular learning opportunities to students and staff of all faculties to support professional development for start-up creation or innovative careers. Our approach is grounded in the belief that an entrepreneurial mindset is not just for those looking to start businesses; it is essential for success in any career path. Our students engage in rigorous programmes that challenge them to solve complex, real-world problems, communicate across diverse teams, and adapt to the unpredictable—precisely the skills the QS survey identifies as most critical yet lacking in recent graduates. 

Entrepreneurship is about much more than launching start-ups. It’s about cultivating a way of thinking that can be applied across a broad spectrum of professional contexts. Whether a graduate is developing new products within a multinational corporation or managing change within a public sector organisation, the competencies gained through entrepreneurship education—such as creativity, resilience, and strategic communication—are directly aligned with the needs of employers. 

Yet, despite this alignment, many employers continue to undervalue entrepreneurship, often citing it as a lower-priority skill. The fact that some employers believe graduates are too entrepreneurial suggests a fundamental misunderstanding of what entrepreneurship education offers and how it can benefit established organisations. 

Why entrepreneurship is undervalued 

Several factors likely contribute to this undervaluation. A common misconception is that entrepreneurial graduates are primarily focused on starting their own ventures and are less committed to long-term employment within established organisations. Employers may fear that these individuals will be challenging to manage, given their preference for high levels of autonomy and propensity to challenge the status quo. This perception is particularly prevalent in industries prioritising stability and control, where disruption is often seen as a threat rather than an opportunity. 

Another contributing factor is the traditional view of entrepreneurship as an innate trait—something one is born with rather than something that can be cultivated. Employers who hold this view may be less inclined to see the value in hiring graduates who have pursued entrepreneurship education, mistakenly believing that these skills are not transferable to roles within larger organisations. This perspective overlooks that the entrepreneurial mindset is not just about starting businesses; it’s about fostering innovation, driving change, and solving complex problems—indispensable capabilities in any context. 

The strategic advantage of entrepreneurial graduates 

These concerns, while understandable, are ultimately limiting. The very skills that entrepreneurship develops are exactly what organisations need to stay competitive and deal with uncertainty. Problem-solving, communication, and resilience are increasingly fundamental to organisational success. Graduates who have honed these skills through entrepreneurial experiences bring a unique combination of creativity and pragmatism that allows them to tackle challenges from multiple angles. They bring far more value to an organisation than they may cause in management headaches! 

Entrepreneurial graduates are capable of both driving innovation and managing the complexities of its implementation. Their experience navigating uncertainty, managing limited resources, and leading cross-functional teams make them invaluable assets. When new technologies and shifting market dynamics can disrupt whole industries, the ability to think creatively and adapt quickly is more critical than ever. 

Employers who embrace the entrepreneurial mindset and actively seek out graduates with these competencies will find themselves better positioned to navigate these changes and capitalise on new opportunities. In doing so, they address the skills gaps identified in the QS survey and create a culture of innovation that drives long-term success. 

Shifting the narrative 

At CIE, we are committed to bridging the gap between the skills employers seek and the competencies our graduates offer. We want to shift the narrative, believing entrepreneurial education equips students with the tools to thrive in any career.  

We encourage employers to rethink their assumptions about entrepreneurial graduates. Rather than viewing them as a flight risk or disruptive, consider them innovators who can drive your organisation forward. By embracing the entrepreneurial mindset, companies can foster a culture of innovation that attracts top talent and retains it by offering the challenges and opportunities that entrepreneurial individuals crave.  

We also help our alums make the most of their competencies by articulating the value of their entrepreneurial experiences in ways that resonate with employers. This includes translating entrepreneurial skills into the language of business and demonstrating how they can drive results in established firms, non-profits, government and beyond. 

By working together, universities and employers can create a pipeline of talent that not only fills existing skills gaps but also helps address New Zealand’s need to increase its productivity and innovativeness. 

The future is entrepreneurial 

The skills gap that employers are grappling with is not going away. However, employers can narrow this gap by recognising the value of entrepreneurial competencies and hiring entrepreneurial graduates to help position themselves for long-term success. The graduates of today’s entrepreneurship programmes are the future business leaders and innovative problem-solvers that every organisation needs.  

What are employers thinking? It’s time to think differently and embrace the entrepreneurial spirit. 

Rod McNaughton is Professor of Entrepreneurship and Academic Director of the University of Auckland Business School’s Centre for Innovation and Entrepreneurship. 

Read more: QS – Quantifying the Skills Gap 

Professor Rod McNaughton