Entrepreneurship education

The days when education and entrepreneurship were two separate worlds with little in common are increasingly a thing of the past. Now, to their mutual benefit, more and more bridges link the two.

A recent European Commission communication, "Fostering entrepreneurial mindsets through education and learning", presents the case for a systematic approach to entrepreneurship education from primary school to university.

The arrival of entrepreneurship studies in their widest sense in educational curricula is a relatively recent phenomenon in Europe. The term 'entrepreneurship' itself can give rise to misconceptions. With their respective backgrounds, parents, the business community and educational establishments almost certainly have a different initial understanding of what the concept involves.

However, in the world of education, the concept should be far wider than simply making money. It is about giving young people the personal management skills that will serve them well in their lives ahead.

The European Commission communication describes entrepreneurship as referring "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 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".

The description is deliberately broad. It is the result of widespread consultation with a range of experts from the worlds of business, academia, national ministries and NGOs. It also reflects a clear meeting of minds between two Commission directorates-general - one in charge of enterprise and industry, and the other, education - with their very different constituencies.

A broad impact

From an enterprise and industry point of view, the imperative of acting quickly and introducing basic entrepreneurship learning in schools and universities is a vital part of the EU's overall economic reform programme.

To create jobs, increase economic growth and ensure Europe can more than hold its own against international competitors, the EU needs to nurture generations of business people who are prepared to innovate, experiment, spot commercial opportunities and take risks.

Providing students with a taste of this world when at school or university can help develop an interest in such activities and raise awareness of career prospects that might otherwise not have been considered.

But entrepreneurship teaching is not simply an updated version of business studies. It is one of eight key competences that the Commission identified in its recent draft recommendation on lifelong learning. It implies a more holistic approach and can develop students' self-esteem, boost their confidence and skills and give them an insight into the world outside the classroom.

Precisely because the subject tends to be taught in ways that are different from more traditional disciplines - there is great emphasis on doing things instead of simply learning - it can frequently appeal to students who might otherwise have little interest in school and want to drop out as soon as possible.

The importance of helping students develop their full potential cannot be underestimated. By 2010, half the jobs available in Europe will require people with advanced skills. Only 15 per cent will be available to those with just basic schooling.

Collective action key to success

If the fusion of education and life management skills is to be successful, it must be accompanied by real support among all those concerned - school teachers and administrators, parents and the business world - in showing an interest in preparing young people to be better persons and more employable.

Action is necessary at many different levels. Special responsibility falls on teachers themselves. They are the ones who can stimulate enthusiasm among their students, but many of them have never received the training needed to master new subjects.

To overcome this hurdle, many schools are turning to business entities support, such as the Small Enterprise Directorate (Malta Enterprise) which offers both financial and other assistance under the Discover Enterprise Project.

Parents also have a role in encouraging their children to benefit from new activities, which they themselves did not have the opportunity of pursuing, many of which take place outside normal school hours.

Spreading good practice

While emphasising that the organisation of education systems remains firmly a matter for Member States, the European Commission has set a series of recommendations based on the good practice already identified in Europe.

These come as many governments are looking to reform their existing systems to place greater emphasis in schools on equipping students with skills and attitudes, not simply knowledge. Entrepreneurship fits into this pattern.

The starting point is the need for a far more systematic approach towards entrepreneurship education. This can be achieved by ensuring full co-operation between national and regional authorities - as is increasingly happening throughout the Union - in developing a strategy that will cover all stages of education, from primary to university. This would allow entrepreneurship to be an integral part of the school curriculum.

To help schools and teachers handle this extra responsibility, the European Commission is urging governments to make more resources available in the form of practical support and incentives. These could include initial and in-service training for staff and moves to make sure that headmasters and board governors are fully aware of the importance of entrepreneurship education.

The local community also has a role to play. As a focal point for activities in their areas, schools are well-placed to develop links with nearby organisations and businesses, and construct practical projects for their students.

For companies, there are advantages in such links. On one level, they reflect well on a firm's corporate social responsibility, enhancing its reputation for caring for the environment, social issues and its neighbours. On another, they offer a practical way of demonstrating what they do and perhaps of stimulating interest among future employees.

The communication also addresses university administrators and is looking to redress the balance with the US where four times as many professors teach entrepreneurship studies as in Europe. It recommends that entrepreneurship should be integrated across different subjects and courses. This could be especially beneficial for scientists who tend to operate in an environment where they are not encouraged to consider the potential commercial benefits of their work.

Schooling budding entrepreneurs

It is never too early to start. Although explicit examples of entrepreneurship studies are few and far between in Europe's primary schools, there is growing emphasis on classes that encourage youngsters to show their initiative and take on responsibility.

Schools in Luxembourg use the story of a young boy who develops a simple business idea to raise money to buy a bicycle, in classes for 11- and 12-year-olds. The aim is to raise awareness of the possibility of a business career, but the text also doubles as a tool for introducing basic financial analysis in maths classes.

On a wider scale is the Young Inventors Competition aimed at children aged six to 16. It encourages them to develop their ideas and creativity.

Entrepreneurship, in its widest sense, is far more common for teenagers as schools look to raise their students' awareness of the employment possibilities that lie ahead. Most curricula include subjects that are sufficiently broad (such as geography or social studies) to allow for some learning about entrepreneurship.

However the concrete implementation of these activities depends very much on the goodwill and motivation of schools and teachers.

Ireland has gone a stage further with its Transition Year, Leaving Certificate Vocational Programme and Leaving Certificate Applied, which enable students to gain work experience first-hand. Germany's Vocational Training System, which combines work in schools and businesses, help students acquire management skills and develop entrepreneurial attitudes.

Student mini-companies - an introduction to business

Mini-companies that develop a real economic activity or simulate the workings of an actual firm are one of the most successful and practical ways of introducing teenagers to the world of business. They can be adapted to different types of education and are officially part of the curriculum in Ireland, Latvia, Austria and Norway and actively promoted in Belgium and Finland.

Over 200,000 students and some 15 per cent of secondary schools in the EU and Norway participate in the programme every year. The figure is impressive, but still has great potential for growth, particularly if more public support is invested in the many projects.

Successful mini-companies can be the catalyst for many developments. They encourage strong links between schools and business and the local community, and can provide the stimulation that may be lacking in more formal classrooms.

The companies are operated until the end of the school year and exist in a controlled pedagogical environment, but this does not prevent students from producing and selling real products and services if they wish. Recent innovations have ranged from a multi-purpose tool for changing studs in horseshoes to entertainment services for the elderly.

Apart from being fun, the exercise exposes students to business practices, procedures and techniques. It helps them develop their self-confidence, learn how to work in a team, become more willing to take responsibility and use their initiative. Particularly encouraging is the fact that roughly one in five participants goes on to create their own company after leaving school.

Investing in the future

Malta needs more entrepreneurs willing to innovate and set up their own businesses if it is to sustain economic growth. Providing students with some basic skills can help achieve this, while alerting them to the wide-ranging opportunities that lie ahead.

However, entrepreneurship studies are not simply an exercise in creating a new generation of business people. They can also help make students more creative and self-confident, ready to cope with today's fast-changing world.

Further information about entrepreneurship education may be obtained by phoning Daniel Debono on 2542-3439 (Small Enterprise Directorate, Malta Enterprise, Industrial Estate, San Gwann, tel: 2542-0000, Website: www.maltaenterprise.com)

Mr Debono is manager, Small Enterprise Directorate, and EU project co-ordinator, EQUAL.