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Joining Forces: US and European Best Practices in Promoting Entrepreneurship Education

November 14th, 2010

Columbus, Ohio, USA

Presented by: Dana T. Redford, PhD

Dana Thacher Redford, PhD

Post Doc Visiting Scholar &

International Development

Assistant Professor of Management

Consultant to EU Presidency

EU Project Coordinator

Associate and Strategic Consultant

Director, American Chamber of Commerce

International Entrepreneur

Lead Market Research Consultants

Previously, in Houston, Texas, Market Research Manager of

• Entrepreneurship & Intrapreneurship• Internationalization & Corporate Strategy • Government Affairs

WHAT IS ENTREPRENEURSHIP AND WHY IS IT IMPORTANT?

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• More than 95% of businesses in most countries are small (<100 employees)

• In most countries, more than half of all employees work in small businesses

• In many countries more than half of gross domestic product comes from small businesses

• They tend to be more flexible and responsive to customers

• They are more innovative than large businesses

Background on Entrepreneurship

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Entrepreneurship as a Strategy

• Strategies for Entrepreneurs– Competing with BIG Business– Complementing BIG Business– Cooperating with BIG Business

• Strategies for Big Business– Tool for Accelerating Innovation

• Strategies for Public Policy

The Strategy for 21st Century in the US & EU

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What is Entrepreneurship?

A process

Not a person

About BIG companies that happen to be small

Not about small business

Important to BIG business

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Entrepreneurship

The pursuit of Opportunity beyond the Resources you currently control

Harvard Business School Working Definition

CULTURAL DIFFERENCES AND ENTREPRENEURSHIP

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Cultural Environmental Factors

WhatPeople

Think About Entrepreneurs

WhatPeople

Think About Entrepreneurs

BusinessNorms andBehavior

BusinessNorms andBehavior

Cultural Traditions,

Preferences, and

Behaviors

Cultural Traditions,

Preferences, and

Behaviors

Culture: United States

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Culture: Europe

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IN SEARCH OF BEST PRACTICES FOR ENTREPRENUERSHIP EDUCATION IN THE US & EU

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Theoretical & Empirical Research Model

Higher Education

Semi-Governmental Agencies

Economic Development Offices

National EntitiesRegional EntitiesLocal Entities

Researchers Professors Business Plan CompetitionsTechnology Transfer Offices

Administrators Teachers Parents

Chambers of CommerceTrade Associations

Venture CapitalistsFriends, Family & FoolsBanksBusiness Angels

Mentor/Counselors AccountantsLawyersConsultantsIncubators Technological Parks

JournalsTelevisionInternetRadio BroadcastersReporters

Self-EmployedSmall Business Owners Entrepreneurs

Foundations Agencies

Cross-Industry AssociationsEntrepreneur Associations Labor Unions

Regulatory Bodies Transnational Entities

Entrepreneurship Support & Promotion Infrastructure

Government

Grade-School & Secondary Education

CommunityOrganizations

(Public)

The Media

EntrepreneurshipSupport & Promotion

Funding Sources

Business Associations

Community Organizations

(Private)

Service ProvidersEntrepreneurs

Think Tank Associations

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The Role of Entrepreneurship Education

1. Show Entrepreneurship as a possible career choice

2. Advocate the mindset and type of creativity employed in entrepreneurial endeavors

3. Give students the technical and business skill-set necessary to have a successful entrepreneurial career

4. Assume the responsibility as educators to advancing the body of knowledge associated with the entrepreneurial phenomenon. Their findings should not only be disseminated to students but also to policy-makers and the public at large

Source: Redford, 2007

Entrepreneurship Education & Training

• Public policy solution to solve the deficit of entrepreneurship in Europe– Oslo Agenda for Entrepreneurship – Various European Commission report – Organizations for Economic Cooperation and

Development (OECD)

• Look at public policy models from other countries

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Research into Dutch Public Policy

• From 2006 to 2012, €97 million• 75,000 students, 4,400 teachers

in over 500 schools • Stimulate the creation of entrepreneurship

centers that join several universities • Holland Program on Entrepreneurship (HOPE)

– HOPE = Erasmus U Rotterdam,

TU Delft, U Leiden, mayor

companies, 100+ entrepreneurs

• Accompany national develop with monitoring and research

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Dutch Model for Entrepreneurship Education

The Dutch Model

2000 Upcoming awareness

2005 Partnership Leren Ondernemen An initiative of 2 ministries:

– Ministry of Economic affairs– Ministry of Education

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Dutch Model Continues

2007 Stimulating projects on EE

Primary and secondary schools - € 5 million

Higher education - €12 million

(Centers of Entrepreneurship)

2008 Developing an Actionprogramme: More structure, quality: organizing joined efforts

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Dutch Model Today

2009 Actionprogramme Education and Enterprise € 33 million (2009-2012)

Versus Other countries or regions?

??? - €,€€€,€€€ - ???

??? - $,$$$,$$$ - ???

??? - Timeframe - ???

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Range in Europe – Grade & High School

The Netherlands

(16.3 million pop.)

500 schools

75,000 students

Portugal (10.5 million pop.)

98 schools & ~ 4,700 students

22Source: Redford, 2009 & 2010

Interconnection is Key

Conceptualizing the Relations

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Schools

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Research into American Public Policy

Has existed in the United States since 1982

Vision: • An organization recognized as the national leader in

advocating entrepreneurship education as a lifelong learning process.

Mission: • The Consortium Champions Entrepreneurship Education

and Provides Advocacy, Leadership, Networking, Technical Assistance, and Resources nationally across all levels and disciplines of education, promoting Quality Practices and Programs.

Website:• http://www.entre-ed.org/

The Consortium for Entrepreneurship Education

Creation of Best Practices in Portugal

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Centro de Educação do Empreendedorismo em Portugal

• Policy Advocacy & Development• IMPLEMENTATION OF NATIONAL

RESEARCH• Training of Teachers

• Don’t reinvent the wheel – take good practices from other countries and organizations

Global Best Practices

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One of Eight Good Practices in Entrepreneurship Education inthe OECD in 2010

Masters – Entrepreneurship, Leadership and Opportunity Recognition

Researching Student Attitudes

• Track Students Attitudes towards Entrepreneurship – 81.2% want to work for others and only 16.1%

want to create their own business

• Track Students Attitudes related to Risk and Obstacles– 49.9% of the respondents point to the

bureaucracy of governmental entities and fears going bankrupt (58%)

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Researcher Career Choices & Education

• During 2005/2006 only 826, or 0.2%, of students at the post-secondary level participated in an entrepreneurship class in Portugal

• Only 14.8% of students believe that the Portuguese educational system develops a state of mind that encourages the creation of new firms

• 63.7% of students believe in the possibility of owning their own business in the future

• After graduation only 16.1% want to create their own business whereas 81.2% want to work for others

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Learning about Obstacles for Students

Starting Early in the Educational Cycle & Educating for the Future63.7% of students believe in the possibility of owning their own business in the future

Risk Taking Need for a Discussion of Risk49.9% of respondents point to the bureaucracy of governmental entities and fear going bankrupt (58%)

Practical Experiences in ClassExperiential learning practices for class assignments

Further Policy Considerations

• Youth Employment and Entrepreneurship

• Regional and Socio-Economic Differences

• Gender Consideration in Entrepreneurship

• Prominence of the Public Sector in the Mindset of Post-Secondary Students

• Advancing Entrepreneurship Education as part of the EU’s Lisbon Strategy

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Conclusions: Policy Development

Benchmarking and Evaluation

• Educational System and Entrepreneurship Promotion

 

• Capacity Building of Entrepreneurship Education 

• Post-Secondary, Secondary and Primary Education – Entrepreneurship Offerings

 

• Students Attitudes towards Entrepreneurship

• Students Attitudes related to Risk and Obstacles

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Thank You

Professor Dana T. Redford

Email: Dana.Redford@RedfordResearch.com