What business acumen is and how to develop it
Want to learn how to develop business acumen? Discover the steps you should take — and how business skills can transform your career — in our guide.
By: Amanda Phagan, Edited by: Gabriela Pérez Jordán
Published: August 7, 2025
What is business acumen?
You may have heard some highly successful people described as having "business acumen." But what does that mean, exactly? And how does it lead to success?
Business acumen refers to a set of skills that allows someone to effectively navigate various business situations. But business acumen isn't just important for executives — anyone from individual contributors to senior managers can benefit from developing these important skills. Business acumen typically encompasses:
Discover the key components of business acumen and the steps you can take to develop it in our guide.
Who needs business acumen?
- Entrepreneurs: If you own a small business or aspire to, business acumen can help you understand the various and often complicated aspects of business management (like taxes, competitive analysis, and small business strategy).
- Aspiring executives: If you plan to work in the C-suite one day, learning business acumen can help prepare you for roles that rely on skills like financial know-how, long-term market strategy, and business communication.
- Anyone who works for a business: While certain professionals like managers, strategists, sales specialists, and consultants may rely on business acumen more than most, anyone can benefit from polishing their business skills.
Business acumen skills
While numerous skills fall under the umbrella of business acumen, the four main abilities are:
- Strategic thinking: Strategic thinkers consider a business's overarching goals and the tactics they can employ to achieve them. They then apply this way of thinking to projects and initiatives.
- Leadership: Leaders inspire others, demonstrate initiative, exude confidence, and include diverse perspectives in business scenarios.
- Business communication: Workers with strong communication choose their words carefully, maintaining appropriate decorum and influencing others to do their best work to further a company's goals.
- Financial literacy: Professionals with financial literacy skills possess knowledge of financial markets and investment terminology, and keep the business's bottom line in mind.
How to develop business acumen
There's no one set way to learn business acumen. Fortunately, this means that anyone can begin developing their business skills from anywhere at any time. Here's how you can get started:
1. Enroll in a business course to learn the fundamentals
A great first step toward developing business acumen is to familiarize yourself with fundamental business concepts and terminology. Online business courses for beginners may cover the following topics:
- Using common business terminology
- Employing effective business communication tactics
- Mastering basic marketing tools and techniques
- Building a persuasive pitch/presentation
- Thinking like an entrepreneur
A single online business course can typically be completed within 4-12 weeks with 2-8 hours of weekly study. Many courses also allow learners to purchase a professional certificate to showcase their newly acquired skills.
2. Accelerate your career with an advanced business program
If developing business acumen is part of your plan to earn a graduate degree or complete a more robust business program, consider enrolling in one of the following:
- An Executive Education program: A short-term, expert-led, and cohort-based program designed to prepare learners to lead organizations, teams, and/or projects; typically completed within 6-8 weeks
- A MicroMastersⓇ in business: A series of graduate-level business courses that teach specialized skills; can help learners earn credit toward a full master's or doctoral program; typically completed within 2-9 months
- A master's in business administration (MBA): An advanced, graduate-level program that involves specialized coursework, research opportunities, and training for mid-to-senior-level business roles; typically completed within 12-36 months
3. Practice your skills in real-world settings
The most impactful way to develop business acumen is to practice your skills in a real-world setting, such as an internship, a volunteer opportunity, or in your current role. Some of the ways you can demonstrate business acumen include:
- Performing a content audit for a brand or organization and pitching a strategy for improvement.
- Involving other departments in a project to ensure cross-functional collaboration and organizational alignment.
- Tying your work to KPIs like increased revenue, conversion rate, cost savings, and/or client satisfaction.
- Sharing a broader market development, trend, or industry insight with your team and explaining what it may mean for the business.
Your next steps on edX
Learning business acumen can be as simple as learning the key terms and concepts associated with a career in business, or as advanced as earning your MBA.
Whether you want to qualify for executive leadership roles at your organization or learn the language business professionals use, edX can help you develop the level of business acumen that suits your professional goals.
Ready to level up your business skills? Explore online business courses and programs from some of the world's top universities and institutions now.