Entrepreneurship in the Public Sector

Is there a role for it in Public Sector problem‑solving?

Entrepreneurial thinking isn’t about turning government into a business. It’s about equipping public servants with the tools to navigate complexity, test ideas, and deliver better outcomes, especially when the path forward isn’t clear.

At Proximity, we help government teams apply these principles in practical, grounded ways, through strategy development, capability uplift, or project execution. If you’re looking to bring fresh thinking to a complex challenge, we’d love to work with you.

Public servants work in complex and ever-evolving environments—solving the trickiest problems impacting our communities. As the challenges faced by society evolve, so too must our ways of thinking. This article explores how entrepreneurial thinking, thoughtfully adapted for government, can help teams navigate uncertainty, unlock creativity, and deliver better outcomes in a world that won’t stand still.

Seeing problems as opportunities and innovating at speed

In recent years, the term “entrepreneurial mindset” has gained traction well beyond the world of startups. While it might conjure images of Silicon Valley founders and pitch decks, the core principles—creative problem-solving, adaptability, and a bias toward action—are increasingly relevant in the public sector.

During a two-week executive program at Massachusetts Institute of Technology’s Martin Trust Center for Entrepreneurship and Sloan School of Management, I had the opportunity to explore how these principles are taught, tested, and applied in high-stakes environments. I was struck by how transferable they are to the challenges faced by public servants, particularly in a time of increasing complexity, constrained resources, and growing public expectations.

Entrepreneurial thinking isn’t about turning government into a business. It’s about equipping teams with the tools to navigate ambiguity, generate new ideas, and deliver better outcomes, without waiting for perfect conditions.

Why It Matters in the Public Sector

Public servants are often tasked with solving “wicked problems”—issues that are complex, interconnected, and resistant to simple solutions. Traditional approaches, while necessary for stability and accountability, can sometimes struggle to keep pace with the speed and scale of change.

This is where entrepreneurial thinking can help. It’s a way of thinking that embraces uncertainty, seeks opportunity, and learns through iteration. These traits are essential to the public service’s future.

In fact, many of the most impactful public sector innovations, from digital service delivery to cross-agency collaboration, have emerged from teams that were willing to think differently, test ideas early, and learn quickly.

Faced with the challenge of monitoring vast volumes of cargo and passenger data, the department developed a risk‑based profiling system that used machine learning to identify potential threats more efficiently.

A Real-World Example: Tackling Biosecurity with Innovation

A great example of entrepreneurial thinking in the Australian Public Service comes from the Department of Agriculture, Fisheries and Forestry (formerly the Department of Agriculture and Water Resources). In 2017, the department was recognised for its innovative use of data analytics and digital tools to strengthen Australia’s biosecurity system.

Faced with the challenge of monitoring vast volumes of cargo and passenger data, the department developed a risk-based profiling system that used machine learning to identify potential threats more efficiently. This approach allowed them to shift from reactive inspections to proactive risk management, improving both speed and accuracy.

What made this initiative entrepreneurial?

Problem reframing: Rather than asking “How can we inspect more cargo?”, the team asked “How can we predict which cargo is most likely to pose a risk?”
Iterative development: The system was built and refined in stages, with feedback loops and testing baked into the process.
Cross-disciplinary collaboration: The project brought together data scientists, policy experts, and frontline officers, breaking down silos to co-create a solution.
Calculated risk-taking: The team embraced uncertainty, piloting new methods while managing regulatory and operational constraints.

This is a textbook example of what Basadur (1994) describes as “applied creativity” — the ability to shift from problem finding to solution implementation in a structured yet flexible manner.

This approach allowed them to shift from reactive inspections to proactive risk management, improving both speed and accuracy.

A Practical Model for Entrepreneurial Thinking in Government

So how can public servants begin to apply entrepreneurial thinking in their own work?

Drawing on frameworks from Basadur (1994) and Davis et al. (2016), as well as insights from MIT’s Martin Trust Center, a simple four‑phase model can help teams move from idea to impact.

This model encourages teams to slow down at the start—to deeply understand the problem—before speeding up through experimentation and delivery. It also aligns with the entrepreneurial mindset dimensions identified by Kuratko et al. (2021): opportunity recognition, tolerance for ambiguity, and resilience.

More Than a One-Off

The biosecurity analytics project is a powerful example of this model in action. But it’s not the only one.

The NSW Government’s rollout of the Digital Driver Licence followed a similar path. It started with user needs, prototyping early, and scaling based on feedback. These examples show that entrepreneurial thinking isn’t a buzzword. It’s a practical, repeatable approach to solving complex problems in a way that’s both innovative and accountable.

Entrepreneurial thinking isn’t about turning government into a business. It’s about equipping public servants with the tools to navigate complexity, test ideas, and deliver better outcomes, especially when the path forward isn’t clear.

At Proximity, we help government teams apply these principles in practical, grounded ways, through strategy development, capability uplift, or project execution. If you’re looking to bring fresh thinking to a complex challenge, we’d love to work with you.

This model encourages teams to slow down at the start—to deeply understand the problem—before speeding up through experimentation and delivery.