Transcript Entrepreneurship Education in South

Entrepreneurship Education and Social
Empowerment: Widening Participation for SelfSufficiency
Dr. Bill Gleave
School of Entrepreneurship and Business
Overview of Presentation
• Conceptual issues
• South-Essex – the socio-economic framework and
‘entrepreneurship gap’.
• Entrepreneurship education and its links to social and
economic regeneration.
• Widening participation in South-Essex – some key issues.
Why Entrepreneurship?
The relationship between entrepreneurship and economic growth
is complex and indirect. However, a substantial body of research
literature exists suggesting that entrepreneurship….
• Increases diversity, making a region more conducive to
innovation.
• Simulates more competition leading to superior economic
performance.
• Creates a higher stock of jobs in the economy, particularly in the
longer run.
• Has demonstrational and motivational effects within the labour
market.
• Is an important vehicle for social empowerment and change.
Categories of Business Start-ups
Self-Employment
Small Business
Owners
• Electricians
• Franchises
• Painters
• Retail outlets
• Independent
consultants
• ‘Life-style’
enterprises
Entrepreneurs
• Creators of new
possibilities
• Identifiers of
potential
opportunities
Multidimensional Attributes of the ‘Entrepreneur’
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)
12)
The person who assumes the risk associated with uncertainty.
The supplier of financial capital.
An innovator.
A decision-maker.
An industrial leader.
Which
A manager.
dimensions
A coordinator of economic resources.
can be
The owner of an enterprise.
learned?
An employer of factors of production.
A contractor.
An allocator of resources.
The person who realizes the start-up of a new business.
(Wennekers & Thurik 1999)
Thames Gateway South-Essex
Three Pillars of an Entrepreneurial Culture in South-Essex
Positive attitudes
of key stakeholders towards
entrepreneurship as a vehicle
for new employment and
wealth creation
Competitive local
socio-economic
structure
Supportive and
enabling public
policy framework
The University/Region Value Added Management Process
The Impact of Entrepreneurship on Economic Performance
and Individual Behaviour
Persistence of Regional New Firm Formation Activity
Regional Economic
Development
Individual Behaviour
Employment growth
Start a business
Labour productivity
Propensity to start a
business (nascent
entrepreneurship)
Change in gross value
added
Spatial Differences in Average VAT Registration Rates and
Educational Attainment to NVQ4+ in South-Essex (2001-2005)
%
economically
active people
with NVQ4+
LQ
(East)
No. of VAT
registrations
per 10,000
adults
Rank
LQ
(UK)
Rank
LQ
(UK)
LQ
(East)
UK
28.1
1
-
-
40.4
6
-
-
East
23.7
2
0.84
-
43.1
3
1.06
-
Essex County
21.6
3
0.77
0.91
44.8
2
1.11
1.04
Castle Point
13.9
8
0.49
0.59
39.5
7
0.98
0.92
Basildon
16.8
6
0.60
0.71
41.6
5
1.03
0.97
Rochford
18.4
5
0.65
0.78
42.5
4
1.05
0.99
Southend
21.3
4
0.76
0.90
46.4
1
1.15
1.08
Thurrock
15.0
7
0.53
0.63
35.1
8
0.87
0.81
Area
Source: Local Area Labour Force Survey (2003)
‘Business Churn’ in South-Essex
Spatial Comparisons of Average Business Churn (2001-2005)
UK
East
Essex
Basildon
Castle Point
Rochford
Southend-on-Sea
Thurrock
0.00
5.00
10.00
VAT registration rate (%)
15.00
20.00
VAT deregistration rate (%)
25.00
Churn (%)
30.00
Socio-economic Structure of South-Essex – SWOT analysis
Strengths
• Strong specialisation in transport and
logistics activities in Thurrock
• Logistics academy in Thurrock
• Evidence that certain manufacturing
activities remain competitive compared to
recent national trends
Weaknesses
• Low skills, low wage equilibrium
• Lowest levels of educational attainment to
NVQ 4+ in East of England
• University participation only 35%
• High levels of business exits particularly
amongst k-sector activities
• High unemployment
• Low representation of ‘creative’ industry and
knowledge-based sectors
Opportunities
Threats
• Growing prominence of health and social
work activities
• Creation of a ‘cultural hub’ in Southend
including University of Essex campus
• Potential gaps within the value-chain
particularly within environmental technology
sectors
• Employer demand for transferable skills
• Proximity to London causing ‘brain-drain’
effect, particularly from Thurrock
• Continued growth and specialisation of lowskill, low value-added activities
• Continued reliance on technologies imported
from outside region
Traditional Economy to Enterprise Economy
Enterprise knowledge and awareness
Entrepreneurial skills
Appreciation of innovation and competitiveness
COMPETITIVE ECONOMY
Teaching Enterprise Skills (1)
• We can certainly study entrepreneurship but can it be
taught?
• Entrepreneurship cannot be taught, but can only be
facilitated through a holistic strategy.
• Entrepreneurship is first and foremost a mindset.
• An entrepreneurs mission is the driver that seeks to connect
with emergent opportunities in today’s highly chaotic and
disruptive external environment.
Teaching Enterprise Skills (2)
Methods include:
• Entrepreneurship education – using business start-up
simulation – experiential learning
• Intrapreneurship education – using corporate project
simulation – experiential learning
• Theoretical/empirical entrepreneurship education –
understanding of the role of enterprise, entrepreneurship
and innovation in the economy.
University Offerings vs. Entrepreneur’s Learning Needs
University Learning Focus
Entrepreneurs Learning Needs
• Critical judgement after analysing large amount
of information
• Instinctive decision making with limited
information
• Understanding and recalling the information
itself
• Understanding the values of those who
transmit/filter information
• Assuming commonality of goals
• Recognising the widely varied goals of different
stakeholders
• Seeking (impersonally) to verify the absolute
truth by study of information
• Making decisions on the basis of judgement
and trust and competence of people
• Understanding the basic principles of society
in a metaphysical sense
• Seeking to apply and adjust in practice to the
basic principles of society
• Seeking the correct answer, with enough time
to do it
• Developing the most appropriate solution often
under time pressure
• Learning in the class room
• Learning while and through doing
• Gleaning information from experts and
authoritative sources
• Gleaning information from everywhere and
assessing its practical usefulness
• Evaluation through written assessment
• Evaluation through judgement of people and
events through direct feedback
• Success in learning measured by passing of
knowledge-based examinations
• Success in learning measured by solving
problems, learning from failures and providing
useful products and services to society.
The School of Entrepreneurship and Business – University
of Essex (1)
• New department offering a range of MSc programmes
linking entrepreneurship to more traditional business related
disciplines e.g. international business, marketing.
• 5 new undergraduate programmes starting in October 2007.
• Sponsored PhD research undertaken
• Research derived CPD programmes on topics such as
building and sustaining networks, creativity and innovation.
• Developed with the intention of contributing to the culture of
enterprise and entrepreneurship within the region.
The School of Entrepreneurship and Business – University
of Essex (2)
Strategic and philosophical approach:
• Creation of international networks with university
departments and hi-tech firms in China and India.
• Promotion of entrepreneurship and innovation amongst
local business networks.
• Business incubator centre
• Coordinator of global and local linkages delivering real
economic benefits.
Entrepreneurship – An Inclusive Subject
Psychology
Marketing
Economics
ENTREPRENEURSHIP
Geography
Arts and
Creativity
International
Business
The Challenge of the Creative Economy
Composite index comprised of 4
variables:
• Average VAT registrations per 10,000
adult population (2000-2004)
• Creative industries location quotient
(2004)
• Average gross annual income (20002003)
• Average % of workforce educated to
NVQ4+ (2000-2004)
Principle Component Analysis
Variable
Loadings
% educated to NVQ4+
.857
Creative industry LQ
.797
VAT registrations (k-sector)
.620
Gross annual income
.865
Interrelationships between Creative Industry Employment and Key Regional
Indicators in East of England
Creative
industries LQ
(2004)
VAT registrations
per 10,000 adults
(k-sector) (20002004)
Job density
(2004)
Unemployment
rate (2001)
Employment rate
(2000-2004)
% economically
active educated
to NVQ level 4+
Gross annual pay
(2003)
Creative industries LQ (2004)
1
0.695**
0.372**
-0.285*
0.369**
0.673**
0.640**
VAT registrations per 10,000
adults (k-sector) (2000-2004)
-
1
0.311*
-0.630**
0.564**
0.796**
0.571**
Job density (2004)
-
-
1
0.133
0.105
0.410**
0.339*
Unemployment rate (2001)
-
-
-
1
-0.656**
-0.521**
-0.248
Employment rate (2000-2004)
-
-
-
-
1
0.459**
0.371**
% economically active
educated to NVQ level 4+
-
-
-
-
-
1
0.430**
Gross annual pay (2003)
-
-
-
-
-
Correlation matrix –
Creative Industries
Specialisation and Key
Economic Characteristics
in East of England (n=48)
Source: NOMIS
1
Higher Educational Attainment, Creative Industry Specialisation and New
Venture Creation
Educational
Attainment
Level 4+
Educational
attainment equipping
entrepreneur with
skills to start new
business venture
Educational attainment permitting access to
employment in higher value-added sectors
Creative
Industry
Specialisation
New Business
Start-ups
Innovative highgrowth start-ups >
Increased income
levels
Potential spin-off
activity
Employment in higher
value-added activities >
Increased income levels
Income