Unit “Entrepreneurship” Fostering Entrepreneurship among young people through education: a EU perspective Simone Baldassarri Unit “Entrepreneurship”

Policy Background Recommendation of the European Parliament and the Council (2006): entrepreneurship a key competence for all. Commission Communication on “Fostering entrepreneurial mindsets” (2006) Oslo Agenda on Entrepreneurship Education in Europe (2007): a detailed menu of actions Small Business Act for Europe (2008) EU 2020 strategy: focus school curricula on creativity, innovation and entrepreneurship (2010)

Eurobarometer: Entrepreneurial attitudes in Europe

Open method of co-ordination Lisbon: assessment of national progress reports Specific tools: expert groups, studies, dialogue with governments and stakeholders, benchmarking, monitoring of progress, organisation of events. Objectives: To promote the exchange and dissemination of good practice; To steer policy action in the EU Member States

Definition of Entrepreneurship Entrepreneurship refers to an individual’s ability to turn ideas into action. It includes creativity, innovation and risk taking, as well as the ability to plan and manage projects in order to achieve objectives. This supports everyone in day-to-day life at home and in society, makes employees more aware of the context of their work and better able to seize opportunities, and provides a foundation for entrepreneurs establishing a social or commercial activity (2006 Recommendation on Key Competences for Lifelong Learning)

Current State Mainly individual initiatives, with no coherent framework and little impact Most students do not have access to entrepreneurship courses and programmes. Entrepreneurship is included in the national curriculum only in a minority of EU countries (i.e. ES, FI, IE, CY, PL, UK) Typically, less than 15 % of secondary schools offer student mini-company activities Around 16% of students participating to mini-companies at school will later go on to create their own company

Objectives of student companies A) Develop on a small scale a real economic activity Students raise capital and prepare a business plan They produce or order the product made to their design Students sell real products or services, B) Simulate in a realistic way the operations of firms Students work in a fictitious company They run all business and administrative activities that are typical of a real company.

Skills acquired Personal skills: Business skills: Team working Basic economics Communication Financial literacy Self-confidence Developing market research Taking initiative Drafting a business plan Problem-solving Raising finance Taking calculated risk Sales techniques Leadership Running a business meeting

Share of secondary schools participating in mini-company programmes

Entrepreneurship in HE Entrepreneurship is not sufficiently integrated in the curriculum of HEIs More than half of the student population in Europe do not have access to Entrepreneurship Education The majority of entrepreneurship courses are offered in business and economic studies Chances of being exposed to EE are higher when the student is enrolled in a business school or a multidisciplinary institution with a business school.

Problems/Obstacles (1) Shortage of funding Too few professors of entrepreneurship Little incentive and reward for teachers Faculties and departments tend to work separately Mobility between HEIs and business is low

Problems/Obstacles (2) Most teachers have little or no practical experience of being entrepreneurs At universities it is difficult to include business people in the permanent staff Few entrepreneurs are engaged in the full curricula experience HEIs are not sufficiently involved in working with alumni

Some good practice examples Technical University of Munich (DE): the Entrepreneurial University (in all disciplines); University of Strathclyde (UK): entrepreneurship for students of music; Dublin Institute of Technology (IRL): traditional exam replaced by the organization of a charity event; Lahti University of Applied Science (FI): linking students with business owners looking for a successor.

Vocational Education Entrepreneurship is included in the national curricula for vocational education in a majority of EU countries 10 countries report that 90% to 100% of vocational education students participate to entrepreneurship programmes at some point in their studies. However… Even where entrepreneurship is included in national curricula, there a perception of a gap still to be filled. Despite some encouraging data, the uptake and effectiveness of entrepreneurship education in vocational schools are still far from being fully satisfactory.

Vocational Education Reasons for the identified gap are: ineffective teaching methods; entrepreneurship is not included in all parts of the VET system; limited participation of students; inadequate teachers’ competence; lack of involvement of business people; the practical element is missing; entrepreneurship is not linked to specific training subjects on professions.

Vocational Education Most commonly used teaching methods reported: Lectures Computer simulations and business games Student companies Project work and group work Company visits Work placements (Less frequently: coaching and mentoring; role plays; discussions and brainstorming; case studies)

Vocational Education Perception of a gap between teaching methods used and those considered as the most effective Most teachers have not been trained in entrepreneurship Cooperation between vocational schools and enterprises is in general well developed (particularly in « dual systems ») But it is difficult to involve small and micro enterprises

Factors of Success in Delivery Well-defined objectives and appropriate evaluations Good balance between theory and practice: programme is action-oriented, based on experience and project work Teaching adapted to the specific field of vocational studies The institution has external links with enterprises Students take part in extra-curricular activities and events Teachers have a qualification in entrepreneurship Students and teachers are stimulated to look beyond the borders of school environment Support mechanisms in place for students to start up

Recommendations (1) Public authorities: Set up a national steering committee Introduce entrepreneurship in the curriculum Career guidance mandatory, including entrepreneurship Provide counselling for schools and teachers in designing VET curricula Improve teachers’ qualifications Support non-profit organizations / NGOs Grant micro-scholarships to innovative and brilliant students

Recommendations (2) Schools: An “enterprise champion” or a teacher may take the lead Extend entrepreneurship to all fields of study: link entrepreneurship to training in specific fields Practical aspect: use methods based on real experience Involve businesses in the process Organize talks and seminars by entrepreneurs (motivation) Teachers: ensure access to training and guidance, internships in enterprises.

High Level Reflection Panels on Entrepreneurship Education Two key needs: 1) Increase co-operation between government administrations – especially those responsible for education and enterprise - and with stakeholders on entrepreneurship education; 2) Develop more systematic strategies for entrepreneurship education.

High Level Reflection Panels 1° Panel (London, 16-17 March 09): Belgium, France, Netherlands, Luxembourg, Ireland, UK, Iceland. 2° Panel (Stockholm, 23-24 April 09): Denmark, Finland, Estonia, Latvia, Lithuania, Norway, Sweden. 3° Panel (Prague, 25-26 June 09): Austria, Czech Republic, Germany, Hungary, Poland. 4° Panel (Rome, 15-16 October 09): Bulgaria, Spain, Italy, Malta, Portugal, Romania and Slovenia. 5° Panel (Zagreb, 18-19 March 2010): countries of pre- accession and Southern Neighborhood region.

Outcomes Current state of play: especially the development of strategies and their implementation A framework for strategy building, using a progression model. A 'cook book' of good practices which show how to address key areas within the progression model Recommendations for action at EU level to support developments within Member States.

Elements of a strategy (1) Agreed definition of entrepreneurship Cross-ministry cooperation Stakeholder consultation Embed core competences into the national curriculum Develop strategic aims and objectives

Elements of a strategy (2) Integrate identified good practices (what works) into the strategy Train the teachers Develop a logic chain of indicators, outputs, outcomes and expected impact Design and embed coherent progression from primary to higher education Make resources available for the strategy

Some good examples Finland and Norway: the entrepreneurship strategy was jointly developed by different ministries Netherlands and UK: government funded pilot projects in schools, then disseminated resulting good practice Luxembourg: the programme for all primary schools has a section on starting up a business based on a cartoon Spain: in Asturias, secondary school students run import-export mini-companies as part of the regional curriculum

Key Issues (1) High importance of involving teachers (maintain a broad definition of Entrepreneurship) Shift from 'how to run a business' to how to develop a general set of competences applicable in all walks of life Key elements for supporting the role of teachers: Develop research on how teachers approach E.E. Offer initial and continuous teacher training Create and disseminate teaching contents, tools, methods and materials Make space in the curriculum for testing new methods Establish support networks

Key Issues (2) Make entrepreneurship an integral part of the Curriculum: Key role for ministries of education Changes in teaching methods: experiential learning, teacher as a facilitator, coach, moderator Changes in education context: take students out of the classroom (into local community and real businesses) Combine a mandatory cross-curricular approach with a selectable training as a specific subject

Key Issues (3) Engage businesses: Visits, experiences, case studies and role models Student mini-companies with business mentors Engage intermediary organizations: Many NGOs play already a key role External organizations devoted to promoting E.E. can be effectively associated with national strategies Link E.E. into local and regional strategies Develop partnerships Build local and regional support centres

Role for the EU Push and accelerate policy development in the MS Act as a catalyst: observatory and hub for research Build a platform for the exchange of information, teaching methods and good practices Support training of teachers, and the development and dissemination of didactic material Provide funding for specific projects (through LLP, ESF, etc.)

CIP funded projects Call for proposals: Entrepreneurial culture of young people, and entrepreneurship education Aim: to support the implementation of the Small Business Act (Principle 1) and of the Oslo Agenda for Entrepreneurship Education in Europe . Objective: to promote winning ideas in the field of education for entrepreneurship and in improving the entrepreneurial mindsets of the European youth. Number of selected projects : 9 Starting date: December 2009

Thematic areas Establish a European summer academy for entrepreneurship professors in higher education Develop practice-based teaching material on entrepreneurship, in particular by using real cases. Foster entrepreneurship among female university graduates Foster the entrepreneurial mindsets of young people outside the educational environment (e.g. competitions, awards, promotional campaigns, etc.)

CIP projects (1) Objective: Establishing a cross-European workshop programme for entrepreneurship professors in higher education to share knowledge and learn from practitioners (Entrepreneurship Summer Academy). Number of projects: 2 Duration: 3 years University partners: 1) Cambridge (UK), SGH Warsaw (PL), IESE (ES) 2) Osijek (HR), Turku (FI), Aarhus (DK)

CIP projects (2) Objective: Developing innovative and practice-based teaching material on entrepreneurship for higher education, in particular by using real cases. Number of projects: 2 Duration: 16 months University partners: 1) Dublin IT (IE), EM LYON (FR), Napoli (IT), UA Barcelona (ES), H. Liechtenstein. 2) Eindhoven, Maastricht (NL), Leuven, Liege (BE), Bergen (NO), Aachen (DE), UP Catalunya (ES).

EU pilot project: mobility scheme for young entrepreneurs 1 – 6 months stay abroad Young entrepreneurs Young nascent entrepreneurs Existing SMEs in another EU Member State European Commission in cooperation with authorities and services at national / regional level Coordination support matching Training sessions Exchange of experiences, market access, networking, intercultural learning This is a scheme which summarises some of the ideas we have at this stage. It is not final. This scheme tells us three things: There should be a support for mobility of young and young nascent entrepreneurs to existing SMEs in another Member State The coordination and support as well as the matching between young (nascent) entrepreneurs and existing entrepreneurs should be done by the Commission in close cooperation with actors at the national, regional and local level. The should be a mutual learning and exchange process between the young (nascent) entrepreneur and the existing entrepreneurs. Both should benefit from the activity young nascent entrepreneur benefits in terms of knowledge, training and exchange of experience existing entrepreneurs/SME benefits in terms of innovation transfer, partnership/networking and access to new market.

Erasmus for Young Entrepreneurs Stimulating entrepreneurship and encouraging cross-border business co-operation in Europe

Erasmus for Young Entrepreneurs Objectives Fostering of Entrepreneurship Internationalisation: SMEs’ full usage of the internal market Competitiveness of start-up entrepreneurs and newly established SMEs in the EU

Erasmus for Young Entrepreneurs How does it work? A new entrepreneur travels and stays with an experienced host entrepreneur in another EU country 1-6 months business to business exchange On-the-job-training of new entrepreneurs to facilitate a successful start and business development

Benefits for new entrepreneurs: Get experience & advice from seasoned entrepreneur Develop international contacts Get knowledge about foreign markets Possible co-venturing opportunities Understand the regulatory framework in another EU country

Benefits for host entrepreneurs: Access new skills and innovative knowledge Work with a young fresh mind contributing new ideas Gain knowledge and intelligence about the foreign markets Act as mentors for new entrepreneurs

Who can participate? New entrepreneurs = entrepreneurs active for less than 3 years; they get a monthly financial assistance Host entrepreneurs = successful and experienced entrepreneurs

Who implements? Almost 100 business support organisations all over Europe are implementing the programme: Promotion Recruitment Matchmaking Logistical support

So far… 2200 applications from all over EU 190 relationships completed 160 more agreed and in various stages of realisation More information available at: www.erasmus-entrepreneurs.eu

Contacts Web site: http://ec.europa.eu/enterprise/entrepreneurship/support_measures/index.htm E-mail: Simone.Baldassarri@ec.europa.eu