Education and Training in Entrepreneurship in Europe

1. Education and Training in Entrepreneurship in Europe by Martin Lauth Education and Training in Entrepreneurship Tallinn, April 2009

2. Europe needs Entrepreneurs: a Vital Growth Factor Education and training is the most important factor • Detecting opportunities • Higher level education Research study of GEM-data by DTU comprising: • 10 major factors • 50 countries • 6 years Autio & Heeboel (2008) Education and Training in Entrepreneurship Tallinn, April 2009

3. Peter F. Drucker (1985): “The entrepreneurial mystique? It’s not magic. It’s not mysterious, and it has nothing to do with the genes” It’s a discipline And, like any discipline, it can be learned Education and Training in Entrepreneurship Tallinn, April 2009

4. Presentation Overview • The current state of training and education in entrepreneurship • Recommendations for the EU, at the national level and at institutional level • Perspectives for the future Education and Training in Entrepreneurship Tallinn, April 2009

5. Survey of Entrepreneurship in HE in Europe Objectives: • To provide factual information • To give good examples • To provide policy recommendations The survey: • 31 countries • General, 2,899 institutions, net 17 % • Specific, just under 200 • Top 10, bottom ten in benchmark analysis • 6 major dimensions: Strategy, Infrastructure, Teaching & Learning, Outreach, Development and Resources • Broad definition of entrepreneurship Education and Training in Entrepreneurship Tallinn, April 2009

6. Defining an Entrepreneur Characteristics are that he or she is • Proactive • Looking for new opportunities • Able to turn these into new business (= added value for stakeholders) • Ready to run a risk Formula: • Entrepreneurship = innovation + intrapreneurship + establishing own business Education and Training in Entrepreneurship Tallinn, April 2009

7. General Scope • Less than 50 % of students have access • About 50 % of those are engaged in education (5 of 21 million) • Business schools vs. specialised HEI Education and Training in Entrepreneurship Tallinn, April 2009

8. Strategy Dimension Sub dimensions: • Entrepreneurial goals • Entrepreneurial policies • Strategic embeddings Conclusions: • Crucial factor • Dedicated top management • Too often dedicated individuals Education and Training in Entrepreneurship Tallinn, April 2009

9. Teaching & Learning Dimension Sub dimensions: • Entrepreneurial courses • Entrepreneurial degrees • Extra-curricular activities • Curriculum development • Teaching methods Conclusions: • Too much lecturing • Project work, simulation is emerging • Good practice HE: Innovative teaching methods • Case studies needed Education and Training in Entrepreneurship Tallinn, April 2009

10. Institutional Infrastructure Dimension Sedimentations: • Approaches • Entrepreneurial appointments • Research in entrepreneurship • Cross-or multi discipline structures Conclusions: • Are emerging; 50 % some structures • Cross-discipline structure are conductive, but few • Entrepreneurial degrees important • Curriculums – room for improvement • “Not-invented-here” syndrome Education and Training in Entrepreneurship Tallinn, April 2009

11. Outreach Dimension Sub dimensions: • Alumni • Links to external stakeholders • Community involvement Conclusions: • Pretty high priority, esp. alumni • Rather weak links to external stakeholders Education and Training in Entrepreneurship Tallinn, April 2009

12. Development Dimension Sub dimensions: • Evaluation • User-driven improvement • HR development & management Conclusions: • Room for improvements in most HE programmes • Lecturers’ experience and skills are insufficient • Few institutions offer training of trainers • Training methods are incomplete Education and Training in Entrepreneurship Tallinn, April 2009

13. Resources Dimension Sub dimensions: • Income generation from activities • Type & sources of funding • Budget allocation Conclusions: • Lack of funding most important obstacle • Many generate income or receive supplementary funding • Long term funding needed Education and Training in Entrepreneurship Tallinn, April 2009

14. The Picture across Europe • Type of institution • The nature of education • The time factor – bottom-up • West – East • Laggind far behind the US Education and Training in Entrepreneurship Tallinn, April 2009

15. Recommendations 1 EU Commission should introduce: • Structural funds • Measurement & targets • Exchange of teachers and trainers • Awards Education and Training in Entrepreneurship Tallinn, April 2009

16. Recommendation 2 National level should provide: • Policy programme • Supportive regulation and platforms • Track & evaluation • Focus on the entire educational system Education and Training in Entrepreneurship Tallinn, April 2009

17. Recommendation 3 Institutional level should provide : • Top level support • Broad definition of entrepreneurship • Tracking & involvement of entrepreneurs • Set up of infrastructure • Development of entrepreneurial courses • Credit learning courses • Reward and salary systems • Allocation of funds Education and Training in Entrepreneurship Tallinn, April 2009

18. Perspectives for the Future • High political priority • Involvement of all business sectors • Interest of students • Change agents in the faculty • Entrepreneurial universities in Europe Education and Training in Entrepreneurship Tallinn, April 2009

19. Appendix 1 The Entrepreneurial University Entrepreneurial culture and leadership: • Pro-active attitude • Driven by opportunities • Global focus • Creating networks with business • Innovative qualities • Growth oriented • Risk takers i.e. more than programmes and set-up Education and Training in Entrepreneurship Tallinn, April 2009

20. Appendix 2 Characteristics of Education of Entrepreneurs Entrepreneurial: Traditional: • Training “in”, learning (Education “about”) • Personal competences (Qualifications in disciplines) • Flexible, adaptable (Fixed study plan) • Student oriented (Teacher oriented) • Group interaction (Class) • “Clash room”, diversity (Classroom) • Coaching (Lecturing) • Project, across disciplines (Topic, disciplines) • Close to business (Close to research, academia) • Action oriented (Study, theory oriented) Education and Training in Entrepreneurship Tallinn, April 2009

21. Appendix 3 References • Bager, Torben & Suna L. Nielsen; Entreprenørskab & kompetencer, GEM – antologi 2008 (incl. article by Autio & Heeboel) • Danish Ministry of Education, “Entrepreneurship in Higher Education”, Copenhagen, January 2006. (In Danish only) • European Commission, “Entrepreneurs in higher education, especially within non-business studies”, Expert Group, March 2008 • European Commission, Enterprise Directorate General, “Best Procedure Project on Education and Training for Entrepreneurship”, 2002 • European Commission, “Survey of Entrepreneurship in Higher Education in Europe”, October 2008 • GEM – Global Entrepreneurship Monitor, 2000-2008 • National Agency for Entrepreneurship and Construction: “Entrepreneurship Education at Universities – a Benchmark Study”, 2004 Education and Training in Entrepreneurship Tallinn, April 2009

22. Appendix 4 Introducing Martin Lauth • MBAs from Copenhagen Business School and from University of Wisconsin • Executive Vice President in banks • External professor and examiner at Copenhagen Business School • Own business • President for FUHU, The Danish Society for the Advancement of Business Education and Research • Co-founder and board member of Junior Achievement – Young Enterprise and The Danish Foundation for Entrepreneurship • Chairman/member of Government Committees on Entrepreneurship Education and Training in Entrepreneurship Tallinn, April 2009