Entrepreneurship Education and Social Entrepreneurship Education and Social Empowerment: Widening Participation for Self-Empowerment: Widening Participation for Self-

SufficiencySufficiency

Dr. Bill Gleave

School of Entrepreneurship and Business

Overview of PresentationOverview 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?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-upsCategories of Business Start-ups

Self-Employment

• Electricians

• Painters

• Independent consultants

Small Business Owners

• Franchises

• Retail outlets

• ‘Life-style’ enterprises

Entrepreneurs

• Creators of new possibilities

• Identifiers of potential opportunities

Multidimensional Attributes of the ‘Entrepreneur’Multidimensional Attributes of the ‘Entrepreneur’

1) The person who assumes the risk associated with uncertainty.

2) The supplier of financial capital.

3) An innovator.

4) A decision-maker.

5) An industrial leader.

6) A manager.

7) A coordinator of economic resources.

8) The owner of an enterprise.

9) An employer of factors of production.

10) A contractor.

11) An allocator of resources.

12) The person who realizes the start-up of a new business.

(Wennekers & Thurik 1999)(Wennekers & Thurik 1999)

Which dimensions can be learned?

Thames Gateway South-EssexThames Gateway South-Essex

Three Pillars of an Entrepreneurial Culture in South-EssexThree Pillars of an Entrepreneurial Culture in South-Essex

Positive attitudesof 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 ProcessThe University/Region Value Added Management Process

The Impact of Entrepreneurship on Economic Performance The Impact of Entrepreneurship on Economic Performance and Individual Behaviourand Individual Behaviour

Persistence of Regional New Firm Formation Activity

Regional Economic Development

Employment growth

Labour productivity

Change in gross valueadded

Individual Behaviour

Start a business

Propensity to start a business (nascent entrepreneurship)

Spatial Differences in Average VAT Registration Rates and Spatial Differences in Average VAT Registration Rates and Educational Attainment to NVQ4+ in South-Essex (2001-2005)Educational Attainment to NVQ4+ in South-Essex (2001-2005)

Area 

% economically active people with NVQ4+

RankLQ

(UK)LQ

(East)

No. of VAT registrations

per 10,000 adults

RankLQ

(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

Source: Local Area Labour Force Survey (2003)

Spatial Comparisons of Average Business Churn (2001-2005)

0.00 5.00 10.00 15.00 20.00 25.00 30.00

Thurrock

Southend-on-Sea

Rochford

Castle Point

Basildon

Essex

East

UK

VAT registration rate (%) VAT deregistration rate (%) Churn (%)

‘‘Business Churn’ in South-EssexBusiness Churn’ in South-Essex

Socio-economic Structure of South-Essex – SWOT analysisSocio-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• 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

Threats• Proximity to London causing ‘brain-drain’

effect, particularly from Thurrock• Continued growth and specialisation of low-

skill, low value-added activities • Continued reliance on technologies imported

from outside region

Traditional Economy to Enterprise EconomyTraditional Economy to Enterprise Economy

Enterprise knowledge and awareness

Entrepreneurial skills

Appreciation of innovation and competitiveness

COMPETITIVE ECONOMY

Teaching Enterprise Skills (1)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)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 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.

University Offerings vs. Entrepreneur’s Learning NeedsUniversity Offerings vs. Entrepreneur’s Learning Needs

The School of Entrepreneurship and Business – University The School of Entrepreneurship and Business – University of Essex (1)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 The School of Entrepreneurship and Business – University of Essex (2)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

Entrepreneurship – An Inclusive SubjectEntrepreneurship – An Inclusive Subject

Economics

Geography International Business

Marketing

Psychology

Arts and Creativity

The Challenge of the Creative EconomyThe Challenge of the Creative Economy

Principle Component Analysis

Variable Loadings

% educated to NVQ4+ .857

Creative industry LQ .797

VAT registrations (k-sector) .620

Gross annual income .865

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 (2000-2003)

• Average % of workforce educated to NVQ4+ (2000-2004)

Correlation matrix – Creative Industries Specialisation and Key Economic Characteristics in East of England (n=48)

Cre

ativ

e in

du

strie

s L

Q (2

00

4)

VA

T re

gis

tratio

ns

pe

r 10

,00

0 a

du

lts (k

-se

cto

r) (20

00

-2

00

4)

Jo

b d

en

sity

(20

04

)

Un

em

plo

ym

en

t rate

(20

01

)

Em

plo

ym

en

t rate

(20

00

-20

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)

% e

co

no

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ally

ac

tive

ed

uc

ate

d to

NV

Q le

ve

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Gro

ss

an

nu

al p

ay

(20

03

)

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) - - - - - 1

Source: NOMIS

Interrelationships between Creative Industry Employment and Key Regional Interrelationships between Creative Industry Employment and Key Regional Indicators in East of EnglandIndicators in East of England

Higher Educational Attainment, Creative Industry Specialisation and New Higher Educational Attainment, Creative Industry Specialisation and New Venture CreationVenture Creation

Educational Attainment Level 4+

Creative Industry

Specialisation

New Business Start-ups

Income

Employment in higher value-added activities > Increased income levels

Educational attainment permitting access to employment in higher value-added sectors

Potential spin-off activity

Innovative high-growth start-ups > Increased income levels

Educational attainment equipping entrepreneur with skills to start new business venture