Description
In such a information examines briefing note entrepreneurship education.
TITLE 1
BRIEFING NOTE
ENTREPRENEURSHIP EDUCATION
August 2011
Series briefing note 37
The City & Guilds Centre for Skills
Development is an independent,
not for profit research and
development body which is
committed to improving the policy
and practice of work related
education and training
internationally. We work with
organisations around the world -
principally with policy makers,
employers, practitioners and
learners - to share knowledge and
help to lead the debate on policy
and practice, aiming to achieve our
vision of a world in which all people
have access to the skills they need
for economic and individual
prosperity. We are part of the City
& Guilds Group.
1. Introduction
2. Why entrepreneurship?
3. What is entrepreneurship education?
4. The effect of entrepreneurship education
5. Content of entrepreneurship education
6. Ways to teach entrepreneurship education
7. Who should be targeted?
8. Recommended further reading
1. INTRODUCTION
The term entrepreneurship refers to the craft of creating new value. According
to Alberti et al., entrepreneurs discover, evaluate and exploit new
opportunities to create goods and services.
1
Entrepreneurs operate across all
sectors and business sizes, from capital-intensive industries like aviation and
high-technology industries such as computing and bio-technology, to activities
such as petty trading, which have much lower barriers to entry.
The range of skills required for the creation of new ventures is thus necessarily
diverse, and it is not surprising that a number of different definitions of
entrepreneurship have been put forward. The majority of definitions of
entrepreneurship refer to the process of creating a new venture. In this
briefing note, we follow Alberti et al., who define entrepreneurship as
‘activities involved in originating and developing new and growing
businesses’.
2
There has often been confusion between the terms ‘entrepreneurship’,
‘enterprise’ and ‘small business management’, which are sometimes used
interchangeably in both academic literature and in practice. While there are
large overlaps in the skills required for initiating and developing new ventures,
and the management of small businesses, Jones and English point out that
‘[t]here is general agreement that entrepreneurship needs to be defined more
broadly than business management because it includes creativity, risk taking
and innovation.’
3
There is widespread agreement that entrepreneurship creates jobs, drives
innovation, and increases productivity by increasing competition. It therefore
plays a vitally important role in economic development in both developed and
developing countries. This briefing note looks at what entrepreneurship
involves, and outlines the skills that are needed to support entrepreneurship
and how they can be developed.
1
Alberti, F., S. Sciascia & A. Poli (2004). Entrepreneurship Education: Notes on an Ongoing Debate. Paper presented at the 14
th
Annual IntEnt Conference, Napoli, July.
2
Idem.
3
Jones, C. & J. English (2004). A contemporary approach to entrepreneurship education. Education & Training 46 (8/9): 416-
423.
TITLE 2
2. WHY ENTREPRENEURSHIP?
Participation in entrepreneurial activity is very widespread. In 2010, the Global Entrepreneurship Monitor analysed 59
economies, covering 52 per cent of the world’s population and 84 per cent of its GDP. In these economies, in 2010,
there were around 250 million people (aged between 18 and 64) who were in the early stages of establishing a new
business. Out of these, about 63 million expected to hire at least five employees over the next five years.
4
These
figures refer only to people beginning new ventures, and not those who are expanding, diversifying or pursuing new
opportunities in other ways, but they give an indication of the size and growth of the entrepreneurial workforce. The
number of entrepreneurs globally, and their impact on employment, is likely to be several times higher than those
counted by the Global Entrepreneurship Monitor, as many countries with large informal economies were not included
in the survey, including India and most of Sub-Saharan Africa.
New venture creation is important for economic growth in both developed and developing economies. As Alberti et
al. point out, ‘the number of new firms, the number of employees, the aggregate turnover and innovation are
possible contributions of entrepreneurship education at the economic level’.
5
In developing economies, much entrepreneurial activity may be driven by necessity as individuals are forced to find
ways of generating income in contexts where few jobs are available.
6
Not all employment in the informal economy is
entrepreneurial – there are many employees and individuals running small businesses which fill established niches
(such as airtime for cellphones). However, entrepreneurs play a very important role in developing economies by
responding to changes in markets, recognising opportunities, and creating employment.
7
In more developed economies, entrepreneurial activity is just as important for economic growth, although the
challenges are different. Entrepreneurship is likewise a key creator of jobs, and the development and exploitation of
new opportunities is essential for international competitiveness. Developed economies have more capital and
undertake more activities specifically designed to support innovation, such as R&D, than less developed economies.
These factors create opportunities for high-growth entrepreneurship. However, developed economies also offer a
wider range of attractive employment options to potential entrepreneurs, which may constrain entrepreneurship.
Creating favourable conditions for entrepreneurs thus remains important.
3. WHAT IS ENTREPRENEURSHIP EDUCATION?
Definitions of entrepreneurship education, like definitions of entrepreneurship, emphasise different aspects of
entrepreneurial development. The definition of Alberti et al. emphasises the skills needed for initiation and growth,
defining entrepreneurship education as the ‘structured formal conveyance of entrepreneurial competencies –
concepts, skills and mental awareness used by individuals during the process of starting and developing their
growth-orientated ventures.’
8
Bechard and Toulouse give a definition which focuses on skills development for those
interested in creating new businesses or developing small businesses, but emphasise that ‘entrepreneurial education
focuses on combining and carrying out a new combination of business elements while education for small business
ownership focuses on the skills needed to reproduce or acquire an existing business.’
9
Most definitions of
entrepreneurship have a similar emphasis on the processes involved in business start-up and growth.
4
Kelley, D., Bosma, N. & Amorós, J. (2010). Global Entrepreneurship Report. Global Entrepreneurship Research Association.
5
Alberti, et al. (2004). ibid.
6
Grierson, J. & I. MacKenzie (1996).Training for Self-Employment though Vocational Training Institutions. Turin: International
Training Centre, ILO.
7
Van Vuuren, J. & Groenewald, D. (2007). A critical analysis of the influence of start-up factors in small businesses and
entrepreneurial ventures in South Africa. Acta Commercii 7: 269-280.
8
Alberti, et al. (2004). ibid.
9
Jones, C. & J. English (2004). ibid.
TITLE 3
Enterprise education is a term used widely in the UK, and tends to refer to a more general focus on the development
of personal attributes (being enterprising) with the aim of developing an opportunity-seeking, pro-active workforce
which can make existing businesses more competitive, and allow entrepreneurship to flourish.
10
4. THE EFFECT OF ENTREPRENEURSHIP EDUCATION
The premise of entrepreneurship education is that it is possible to develop entrepreneurial skills through a systematic
training process. This has often been questioned, with critics arguing that the propensity to initiate and grow a small
business is to a large extent innate, and that gifted entrepreneurs will create their own learning experiences, while no
amount of training can make someone without entrepreneurial drive into a successful creator of new ventures.
Empirical evidence suggests that this overstates the importance of an ‘enterprising spirit’ – some training
programmes have been shown to increase participants’ propensity to start a business, and there are also studies
which indicate that training has improved success rates among starters of new businesses.
11
Nevertheless, both
talent and enthusiasm for entrepreneurship are clearly important. Brockhaus suggests a compromise position:
‘teaching someone to be an entrepreneur is like teaching someone to be an artist: We cannot make a person another
Van Gogh, but he can be taught about colors and composition, and his artistic skills can be improved. Similarly, we
cannot make a person another [Richard] Branson, but the skills and creativity needed for being a successful
entrepreneur could nevertheless be … enhanced by entrepreneurship education.’
12
This is especially important for
necessity-driven entrepreneurs, who may have little choice but to start a new venture due to a lack of employment
opportunities.
The question about whether entrepreneurship can be taught also points towards a broader question about the
context within which enterprise education takes place. The extent to which entrepreneurship training enhances the
capacity of individuals to undertake new ventures depends not only on the type of training and the aptitude of the
individual, but also on the economic and policy environment. Pittaway & Cope point out that at a national or regional
level, the ‘general policy climate for entrepreneurship education, the role of government or other quasi-government
policies in promoting such education, its intended outputs when designing policies, the measures used to assess
outputs and the funding methods employed’ all have an effect on what training is delivered, and how effective it is.
13
Pittaway & Cope think of these as inputs into an entrepreneurship education system. At the same level, the
infrastructure and support available to new entrepreneurs (including grants, advisory services, networks with other
entrepreneurs, and so on) make a difference to the effectiveness of any training they receive. Pittaway & Cope argue
that the general enterprise infrastructure is strengthened by entrepreneurship education, and is thus an output of
the system.
14
5. CONTENT OF ENTREPRENEURSHIP EDUCATION
Entrepreneurs typically require a diversity of skills to be successful, engage in a variety of different types of
enterprise, and will often be both employed and self-employed in the course of their careers. In recognition of this,
entrepreneurship education programmes usually cover multiple educational aspects including: ‘employability skills;
social enterprise; self-employment; venture creation; employment in small business; small business management and
the management of high-growth businesses’ [ref].
In terms of training that is directed specifically at new venture creation, Vesper proposes four types of knowledge
that are useful to entrepreneurs:
10
Jones, B. & N. Iredale (2010). Enterprise education as pedagogy. Education & Training 52 (1):7-19.
11
Pittaway, L. & J. Cope (2006). Entrepreneurship Education: A Systematic Review of the Evidence. National Council for Graduate
Entrepreneurship Working Paper 002/2006; Price, C.& S. Monroe (1992). Education Training for Women and Minority
Entrepreneurs Positively Impactys Venture Growth and Development. Wellesley, MA: Babson College.
12
Alberti, et al. (2004). ibid.
13
Pittaway & Cope (2007). ibid.
14
Idem.
TITLE 4
• Business general knowledge, which applies to both new and established firms (which includes principles
of bookkeeping, basic management, marketing, business law and human resources)
• Venture general knowledge, which differs from business general knowledge, but is transferable across
ventures (including topics like raising funds, constructing business plans, protecting intellectual property
rights and finding business partners)
• Opportunity specific knowledge, which is knowledge about where under-served markets exist, and what
resources are needed for starting a new venture in them.
• Venture specific knowledge, which is knowledge about how to create a specific service or product.
15
In addition to these types of knowledge, entrepreneurs also need to develop a range of personal skills, attributes and
behaviours. The following are commonly regarded as important for entrepreneurial success:
• A drive to succeed
• The desire to be one’s own boss
• Confidence in one’s ability
• The ability to form relationships and access
useful business networks
• Endurance – persistence in the face of
challenges
• The propensity to take calculated risks
• Creativity – the ability to see alternative
solutions to problems
• Flexibility – the ability to adjust to changing
circumstances
16
6. WAYS TO TEACH ENTREPRENEURSHIP EDUCATION
Although entrepreneurship education is being increasingly funded and undertaken, both in the developed and the
developing world, there is still a lack of knowledge about effective teaching methods in this field.
17
More empirical
research is needed into the relative effectiveness of different approaches.
Two main approaches to equipping prospective entrepreneurs with relevant skills can be identified in the literature
that does exist:
The traditional approach: this approach is theoretically focused, and the teaching methods aim to transfer
knowledge about certain core areas to learners. Lectures and case studies are often used to communicate with
learners, and the majority of learning takes place within a classroom setting. Lourenco and Jones suggest that this is
still a common approach, particularly in higher education settings.
18
The enterprise approach: this approach is practically focused, and aims to enable learners to actively construct
relevant knowledge through practical experience. Teaching is mainly based on activities and action learning, often
including the running of a small business. The aim is to provide both experience and a framework which enables
learners to reflect on their successes and failures. This approach is increasingly followed in development projects.
19
.
15
Vesper, K. (1998). Unfinished Business (Entrepreneurship) of the 20
th
Century. Paper presented at the USASBE, San Diego,
California.
16
Oosterbeek, H., M. van Praag, & A. IJsselstein, (2010). The Impact of Entrepreneurship Education on Entrepreneurship
Competencies and Intentions. European Economic Review 54: 442–454.
17
Brockhaus, R., G. Hills, H. Klandt, H.Welsch (2001). Entrepreneurship Education: A gobal view. Aldershot: Ashgate Publishing;
Fayolle, A., B. Gailly & N. Lassas-Clerc (2006). Assessing the impact of entrepreneurship education programmes: a new
methodology. Journal of European Industrial Training 20(9):701-720.
18
Lourenço, F. & O. Jones (2006). Learning Paradigms in Entrepreneurship Education: Comparing the Traditional and Enterprise
Modes. National Council for Graduate Entrepreneurship Working Paper 027/2006.
19
See for example Zandniapour, L., J. Sebstad & D. Snodgrass (2004). Review of Impact Assessments of Selected Enterprise
Development Projects. Washington: DAI.
TITLE 5
Several authors have also argued for approaches which combine theoretical and practical orientations. Lourenco
and Jones argue that scenario-based learning where learners are equipped with a theoretical framework and also test
this out in practice, combines the strengths of both approaches.
20
Alberti et al. suggest that combining traditional
and enterprise approaches can help entrepreneurs develop the two kinds of thinking needed for problem-solving in
entrepreneurship: vertical thinking, which is objective, analytical, logical, and results in a limited number of solutions;
and lateral thinking, which is creative, imaginative, emotional, and generates multiple solutions.
21
7. WHO SHOULD BE TARGETED?
Entrepreneurship education can be of benefit across a wide range of groups in society, including different age
groups, education and income levels.
22
Elements of entrepreneurship are relevant outside the context of beginning a
small business, and broad-based entrepreneurship education can help create a positive environment for
entrepreneurs, and can support entrepreneurialism in businesses. Two groups, however, have been a particular
focus of entrepreneurship education:
The unemployed and the working poor
The majority of new jobs in developing countries are being created in the informal sector, and self-employment is the
only option for many individuals. Palmer points out that many of the poor are working in the informal economy but
earning a wage which leaves them below the poverty line.
23
One major aim of entrepreneurship education in this
situation is to add value to subsistence-level enterprise, thereby raising productivity and wages.
It is very important to note, however, that the effectiveness of entrepreneurship education depends heavily on the
existence of a supportive economic environment, access to financial services, particularly credit, and continued
business support services.
24
If these are not in place, it is unlikely that training will result in more successful small
businesses. For example, in Kenya, entrepreneurship education is compulsory, but even here the evidence does not
show an unequivocal positive effect on self-employment.
25
Grierson & Mackenzie also caution against assuming that those unable to find work are necessarily interested in
training for self-employment. They point out that a system where schooling is largely aimed at preparing individuals
for the formal sector, and entrepreneurship training is tacked on as an emergency measure results in significant
wasted effort on the part of both the education system and the learners. They call for better alignment between the
interests and realistic career prospects of learners, and their educational paths.
26
Higher education graduates
Entrepreneurialism is required to convert new ideas and findings generated within Higher Education Institutions into
new ventures. Education and training designed to enhance this can be directed both at students and at other
professionals working within the university context.
There is a significant body of work looking at effective business education which informs general management
courses such as Masters in Business Administration (MBA), but Pittaway & Cope find that there is still a lack of
20
Lourenco & Jones (2006). ibid.
21
Alberti, et al. (2004). ibid.
22
Kelley, Bosma, & Amorós,(2010). ibid.
23
Palmer, R. (2008). Skills and productivity in the informal economy. Geneva: ILO.
24
Nexus (2003). Assessing the Poverty Impact of Small Enterprise Initiatives. Prepared for Committee of Donor Agencies for Small
Enterprise Development.
25
Freedman, D. (2008). Improving skills and productivity of disadvantaged youth. Employment Working Paper No. 7. Geneva.:
ILO,
26
Grierson & MacKenzie (1996). ibid.
TITLE 6
empirical work analysing the impact of entrepreneurship education on the propensity of graduates to start
businesses, or the success rate of those businesses.
27
There is however, some evidence that entrepreneurship education programmes which involves local businesses can:
• Raise students’ awareness of entrepreneurship and change their perceptions about starting up
businesses or entering small businesses
• Provide a channel through which students can communicate knowledge to firms, and improve their
performance
• Provide experiential business learning for graduates.
8. RECOMMENDED FURTHER READING
Alberti, F., S. Sciascia & A. Poli (2004). Entrepreneurship Education: Notes on an Ongoing Debate. Paper presented at
the 14
th
Annual IntEnt Conference, Napoli, July.
Lourenço, F. & O. Jones (2006). Learning Paradigms in Entrepreneurship Education: Comparing the Traditional and
Enterprise Modes. National Council for Graduate Entrepreneurship Working Paper 027/2006.
Kathleen Collett, August 2011. [email protected]
27
Pittaway & Cope (2007). ibid.
doc_899417982.pdf
In such a information examines briefing note entrepreneurship education.
TITLE 1
BRIEFING NOTE
ENTREPRENEURSHIP EDUCATION
August 2011
Series briefing note 37
The City & Guilds Centre for Skills
Development is an independent,
not for profit research and
development body which is
committed to improving the policy
and practice of work related
education and training
internationally. We work with
organisations around the world -
principally with policy makers,
employers, practitioners and
learners - to share knowledge and
help to lead the debate on policy
and practice, aiming to achieve our
vision of a world in which all people
have access to the skills they need
for economic and individual
prosperity. We are part of the City
& Guilds Group.
1. Introduction
2. Why entrepreneurship?
3. What is entrepreneurship education?
4. The effect of entrepreneurship education
5. Content of entrepreneurship education
6. Ways to teach entrepreneurship education
7. Who should be targeted?
8. Recommended further reading
1. INTRODUCTION
The term entrepreneurship refers to the craft of creating new value. According
to Alberti et al., entrepreneurs discover, evaluate and exploit new
opportunities to create goods and services.
1
Entrepreneurs operate across all
sectors and business sizes, from capital-intensive industries like aviation and
high-technology industries such as computing and bio-technology, to activities
such as petty trading, which have much lower barriers to entry.
The range of skills required for the creation of new ventures is thus necessarily
diverse, and it is not surprising that a number of different definitions of
entrepreneurship have been put forward. The majority of definitions of
entrepreneurship refer to the process of creating a new venture. In this
briefing note, we follow Alberti et al., who define entrepreneurship as
‘activities involved in originating and developing new and growing
businesses’.
2
There has often been confusion between the terms ‘entrepreneurship’,
‘enterprise’ and ‘small business management’, which are sometimes used
interchangeably in both academic literature and in practice. While there are
large overlaps in the skills required for initiating and developing new ventures,
and the management of small businesses, Jones and English point out that
‘[t]here is general agreement that entrepreneurship needs to be defined more
broadly than business management because it includes creativity, risk taking
and innovation.’
3
There is widespread agreement that entrepreneurship creates jobs, drives
innovation, and increases productivity by increasing competition. It therefore
plays a vitally important role in economic development in both developed and
developing countries. This briefing note looks at what entrepreneurship
involves, and outlines the skills that are needed to support entrepreneurship
and how they can be developed.
1
Alberti, F., S. Sciascia & A. Poli (2004). Entrepreneurship Education: Notes on an Ongoing Debate. Paper presented at the 14
th
Annual IntEnt Conference, Napoli, July.
2
Idem.
3
Jones, C. & J. English (2004). A contemporary approach to entrepreneurship education. Education & Training 46 (8/9): 416-
423.
TITLE 2
2. WHY ENTREPRENEURSHIP?
Participation in entrepreneurial activity is very widespread. In 2010, the Global Entrepreneurship Monitor analysed 59
economies, covering 52 per cent of the world’s population and 84 per cent of its GDP. In these economies, in 2010,
there were around 250 million people (aged between 18 and 64) who were in the early stages of establishing a new
business. Out of these, about 63 million expected to hire at least five employees over the next five years.
4
These
figures refer only to people beginning new ventures, and not those who are expanding, diversifying or pursuing new
opportunities in other ways, but they give an indication of the size and growth of the entrepreneurial workforce. The
number of entrepreneurs globally, and their impact on employment, is likely to be several times higher than those
counted by the Global Entrepreneurship Monitor, as many countries with large informal economies were not included
in the survey, including India and most of Sub-Saharan Africa.
New venture creation is important for economic growth in both developed and developing economies. As Alberti et
al. point out, ‘the number of new firms, the number of employees, the aggregate turnover and innovation are
possible contributions of entrepreneurship education at the economic level’.
5
In developing economies, much entrepreneurial activity may be driven by necessity as individuals are forced to find
ways of generating income in contexts where few jobs are available.
6
Not all employment in the informal economy is
entrepreneurial – there are many employees and individuals running small businesses which fill established niches
(such as airtime for cellphones). However, entrepreneurs play a very important role in developing economies by
responding to changes in markets, recognising opportunities, and creating employment.
7
In more developed economies, entrepreneurial activity is just as important for economic growth, although the
challenges are different. Entrepreneurship is likewise a key creator of jobs, and the development and exploitation of
new opportunities is essential for international competitiveness. Developed economies have more capital and
undertake more activities specifically designed to support innovation, such as R&D, than less developed economies.
These factors create opportunities for high-growth entrepreneurship. However, developed economies also offer a
wider range of attractive employment options to potential entrepreneurs, which may constrain entrepreneurship.
Creating favourable conditions for entrepreneurs thus remains important.
3. WHAT IS ENTREPRENEURSHIP EDUCATION?
Definitions of entrepreneurship education, like definitions of entrepreneurship, emphasise different aspects of
entrepreneurial development. The definition of Alberti et al. emphasises the skills needed for initiation and growth,
defining entrepreneurship education as the ‘structured formal conveyance of entrepreneurial competencies –
concepts, skills and mental awareness used by individuals during the process of starting and developing their
growth-orientated ventures.’
8
Bechard and Toulouse give a definition which focuses on skills development for those
interested in creating new businesses or developing small businesses, but emphasise that ‘entrepreneurial education
focuses on combining and carrying out a new combination of business elements while education for small business
ownership focuses on the skills needed to reproduce or acquire an existing business.’
9
Most definitions of
entrepreneurship have a similar emphasis on the processes involved in business start-up and growth.
4
Kelley, D., Bosma, N. & Amorós, J. (2010). Global Entrepreneurship Report. Global Entrepreneurship Research Association.
5
Alberti, et al. (2004). ibid.
6
Grierson, J. & I. MacKenzie (1996).Training for Self-Employment though Vocational Training Institutions. Turin: International
Training Centre, ILO.
7
Van Vuuren, J. & Groenewald, D. (2007). A critical analysis of the influence of start-up factors in small businesses and
entrepreneurial ventures in South Africa. Acta Commercii 7: 269-280.
8
Alberti, et al. (2004). ibid.
9
Jones, C. & J. English (2004). ibid.
TITLE 3
Enterprise education is a term used widely in the UK, and tends to refer to a more general focus on the development
of personal attributes (being enterprising) with the aim of developing an opportunity-seeking, pro-active workforce
which can make existing businesses more competitive, and allow entrepreneurship to flourish.
10
4. THE EFFECT OF ENTREPRENEURSHIP EDUCATION
The premise of entrepreneurship education is that it is possible to develop entrepreneurial skills through a systematic
training process. This has often been questioned, with critics arguing that the propensity to initiate and grow a small
business is to a large extent innate, and that gifted entrepreneurs will create their own learning experiences, while no
amount of training can make someone without entrepreneurial drive into a successful creator of new ventures.
Empirical evidence suggests that this overstates the importance of an ‘enterprising spirit’ – some training
programmes have been shown to increase participants’ propensity to start a business, and there are also studies
which indicate that training has improved success rates among starters of new businesses.
11
Nevertheless, both
talent and enthusiasm for entrepreneurship are clearly important. Brockhaus suggests a compromise position:
‘teaching someone to be an entrepreneur is like teaching someone to be an artist: We cannot make a person another
Van Gogh, but he can be taught about colors and composition, and his artistic skills can be improved. Similarly, we
cannot make a person another [Richard] Branson, but the skills and creativity needed for being a successful
entrepreneur could nevertheless be … enhanced by entrepreneurship education.’
12
This is especially important for
necessity-driven entrepreneurs, who may have little choice but to start a new venture due to a lack of employment
opportunities.
The question about whether entrepreneurship can be taught also points towards a broader question about the
context within which enterprise education takes place. The extent to which entrepreneurship training enhances the
capacity of individuals to undertake new ventures depends not only on the type of training and the aptitude of the
individual, but also on the economic and policy environment. Pittaway & Cope point out that at a national or regional
level, the ‘general policy climate for entrepreneurship education, the role of government or other quasi-government
policies in promoting such education, its intended outputs when designing policies, the measures used to assess
outputs and the funding methods employed’ all have an effect on what training is delivered, and how effective it is.
13
Pittaway & Cope think of these as inputs into an entrepreneurship education system. At the same level, the
infrastructure and support available to new entrepreneurs (including grants, advisory services, networks with other
entrepreneurs, and so on) make a difference to the effectiveness of any training they receive. Pittaway & Cope argue
that the general enterprise infrastructure is strengthened by entrepreneurship education, and is thus an output of
the system.
14
5. CONTENT OF ENTREPRENEURSHIP EDUCATION
Entrepreneurs typically require a diversity of skills to be successful, engage in a variety of different types of
enterprise, and will often be both employed and self-employed in the course of their careers. In recognition of this,
entrepreneurship education programmes usually cover multiple educational aspects including: ‘employability skills;
social enterprise; self-employment; venture creation; employment in small business; small business management and
the management of high-growth businesses’ [ref].
In terms of training that is directed specifically at new venture creation, Vesper proposes four types of knowledge
that are useful to entrepreneurs:
10
Jones, B. & N. Iredale (2010). Enterprise education as pedagogy. Education & Training 52 (1):7-19.
11
Pittaway, L. & J. Cope (2006). Entrepreneurship Education: A Systematic Review of the Evidence. National Council for Graduate
Entrepreneurship Working Paper 002/2006; Price, C.& S. Monroe (1992). Education Training for Women and Minority
Entrepreneurs Positively Impactys Venture Growth and Development. Wellesley, MA: Babson College.
12
Alberti, et al. (2004). ibid.
13
Pittaway & Cope (2007). ibid.
14
Idem.
TITLE 4
• Business general knowledge, which applies to both new and established firms (which includes principles
of bookkeeping, basic management, marketing, business law and human resources)
• Venture general knowledge, which differs from business general knowledge, but is transferable across
ventures (including topics like raising funds, constructing business plans, protecting intellectual property
rights and finding business partners)
• Opportunity specific knowledge, which is knowledge about where under-served markets exist, and what
resources are needed for starting a new venture in them.
• Venture specific knowledge, which is knowledge about how to create a specific service or product.
15
In addition to these types of knowledge, entrepreneurs also need to develop a range of personal skills, attributes and
behaviours. The following are commonly regarded as important for entrepreneurial success:
• A drive to succeed
• The desire to be one’s own boss
• Confidence in one’s ability
• The ability to form relationships and access
useful business networks
• Endurance – persistence in the face of
challenges
• The propensity to take calculated risks
• Creativity – the ability to see alternative
solutions to problems
• Flexibility – the ability to adjust to changing
circumstances
16
6. WAYS TO TEACH ENTREPRENEURSHIP EDUCATION
Although entrepreneurship education is being increasingly funded and undertaken, both in the developed and the
developing world, there is still a lack of knowledge about effective teaching methods in this field.
17
More empirical
research is needed into the relative effectiveness of different approaches.
Two main approaches to equipping prospective entrepreneurs with relevant skills can be identified in the literature
that does exist:
The traditional approach: this approach is theoretically focused, and the teaching methods aim to transfer
knowledge about certain core areas to learners. Lectures and case studies are often used to communicate with
learners, and the majority of learning takes place within a classroom setting. Lourenco and Jones suggest that this is
still a common approach, particularly in higher education settings.
18
The enterprise approach: this approach is practically focused, and aims to enable learners to actively construct
relevant knowledge through practical experience. Teaching is mainly based on activities and action learning, often
including the running of a small business. The aim is to provide both experience and a framework which enables
learners to reflect on their successes and failures. This approach is increasingly followed in development projects.
19
.
15
Vesper, K. (1998). Unfinished Business (Entrepreneurship) of the 20
th
Century. Paper presented at the USASBE, San Diego,
California.
16
Oosterbeek, H., M. van Praag, & A. IJsselstein, (2010). The Impact of Entrepreneurship Education on Entrepreneurship
Competencies and Intentions. European Economic Review 54: 442–454.
17
Brockhaus, R., G. Hills, H. Klandt, H.Welsch (2001). Entrepreneurship Education: A gobal view. Aldershot: Ashgate Publishing;
Fayolle, A., B. Gailly & N. Lassas-Clerc (2006). Assessing the impact of entrepreneurship education programmes: a new
methodology. Journal of European Industrial Training 20(9):701-720.
18
Lourenço, F. & O. Jones (2006). Learning Paradigms in Entrepreneurship Education: Comparing the Traditional and Enterprise
Modes. National Council for Graduate Entrepreneurship Working Paper 027/2006.
19
See for example Zandniapour, L., J. Sebstad & D. Snodgrass (2004). Review of Impact Assessments of Selected Enterprise
Development Projects. Washington: DAI.
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Several authors have also argued for approaches which combine theoretical and practical orientations. Lourenco
and Jones argue that scenario-based learning where learners are equipped with a theoretical framework and also test
this out in practice, combines the strengths of both approaches.
20
Alberti et al. suggest that combining traditional
and enterprise approaches can help entrepreneurs develop the two kinds of thinking needed for problem-solving in
entrepreneurship: vertical thinking, which is objective, analytical, logical, and results in a limited number of solutions;
and lateral thinking, which is creative, imaginative, emotional, and generates multiple solutions.
21
7. WHO SHOULD BE TARGETED?
Entrepreneurship education can be of benefit across a wide range of groups in society, including different age
groups, education and income levels.
22
Elements of entrepreneurship are relevant outside the context of beginning a
small business, and broad-based entrepreneurship education can help create a positive environment for
entrepreneurs, and can support entrepreneurialism in businesses. Two groups, however, have been a particular
focus of entrepreneurship education:
The unemployed and the working poor
The majority of new jobs in developing countries are being created in the informal sector, and self-employment is the
only option for many individuals. Palmer points out that many of the poor are working in the informal economy but
earning a wage which leaves them below the poverty line.
23
One major aim of entrepreneurship education in this
situation is to add value to subsistence-level enterprise, thereby raising productivity and wages.
It is very important to note, however, that the effectiveness of entrepreneurship education depends heavily on the
existence of a supportive economic environment, access to financial services, particularly credit, and continued
business support services.
24
If these are not in place, it is unlikely that training will result in more successful small
businesses. For example, in Kenya, entrepreneurship education is compulsory, but even here the evidence does not
show an unequivocal positive effect on self-employment.
25
Grierson & Mackenzie also caution against assuming that those unable to find work are necessarily interested in
training for self-employment. They point out that a system where schooling is largely aimed at preparing individuals
for the formal sector, and entrepreneurship training is tacked on as an emergency measure results in significant
wasted effort on the part of both the education system and the learners. They call for better alignment between the
interests and realistic career prospects of learners, and their educational paths.
26
Higher education graduates
Entrepreneurialism is required to convert new ideas and findings generated within Higher Education Institutions into
new ventures. Education and training designed to enhance this can be directed both at students and at other
professionals working within the university context.
There is a significant body of work looking at effective business education which informs general management
courses such as Masters in Business Administration (MBA), but Pittaway & Cope find that there is still a lack of
20
Lourenco & Jones (2006). ibid.
21
Alberti, et al. (2004). ibid.
22
Kelley, Bosma, & Amorós,(2010). ibid.
23
Palmer, R. (2008). Skills and productivity in the informal economy. Geneva: ILO.
24
Nexus (2003). Assessing the Poverty Impact of Small Enterprise Initiatives. Prepared for Committee of Donor Agencies for Small
Enterprise Development.
25
Freedman, D. (2008). Improving skills and productivity of disadvantaged youth. Employment Working Paper No. 7. Geneva.:
ILO,
26
Grierson & MacKenzie (1996). ibid.
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empirical work analysing the impact of entrepreneurship education on the propensity of graduates to start
businesses, or the success rate of those businesses.
27
There is however, some evidence that entrepreneurship education programmes which involves local businesses can:
• Raise students’ awareness of entrepreneurship and change their perceptions about starting up
businesses or entering small businesses
• Provide a channel through which students can communicate knowledge to firms, and improve their
performance
• Provide experiential business learning for graduates.
8. RECOMMENDED FURTHER READING
Alberti, F., S. Sciascia & A. Poli (2004). Entrepreneurship Education: Notes on an Ongoing Debate. Paper presented at
the 14
th
Annual IntEnt Conference, Napoli, July.
Lourenço, F. & O. Jones (2006). Learning Paradigms in Entrepreneurship Education: Comparing the Traditional and
Enterprise Modes. National Council for Graduate Entrepreneurship Working Paper 027/2006.
Kathleen Collett, August 2011. [email protected]
27
Pittaway & Cope (2007). ibid.
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