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Reports on an ESRC‐funded, in‐depth qualitative research project into 50 micro and small enterprises (MSEs) in the cultural industries. Our evidence sheds light on the extent to which the teaching and learning strategies adopted by higher education, further education and other VET providers are effective in providing entrepreneurship education and training for this innovative, high skill sector. Our findings suggest that entrepreneurs in this sector learn best by being able to experiment with ideas, by “doing” and networking with others and by working with more experienced mentors in their sector. The article concludes by suggesting a more “naturalistic” approach to teaching and learning entrepreneurship for micro and small businesses in the cultural industries sector.

Enabling entrepreneurial creativity is a key aim of UK Government; however, there is a dearth of constructively aligned models of teaching and assessment. This paper aims to introduce design‐based pedagogies and to highlight cognitive approaches that develop innovative mindsets; it seeks to indicate their propensity for adoption in entrepreneurship education.

A literature review plus empirical evidence from pedagogical approaches developed through the extended collaboration of specialists in creative design, financial management and brain‐related occupational therapy inform this paper.

Neuroimaging studies challenge the thesis that learning for creative output is entirely algorithmic; diverse ideas occur when the brain's right cortex has opportunity to bring its findings to the fore, usually via “relaxed cognition”. Design‐based entrepreneurship pedagogies embed these concepts.

The paper offers initial insights into how these understandings can be applied in transdisciplinary entrepreneurship‐education contexts.

Predicable assessment outcomes equal predictable students; which needs more working practices, behaviours and cultural environments that encourage innovation. Any educational environment that excludes these understandings is inherently flawed.

The case study/project “Free time is thinking time” implies that traditional 9‐5 working practices are inappropriate for creative mindsets.

This paper links emerging bodies of evidence; it provides a first response to calls for a more creative enterprise curriculum and offers constructively aligned assessment.