entrepreneurship education: promoting an enterprising culture among students herbert mapfaira...
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Entrepreneurship Education: Promoting an enterprising culture
among students
Herbert Mapfaira Department of Mechanical
Engineering
Gosekwang SetibiDepartment of Management
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Outline
Introduction
Research Motivation
Role of entrepreneurship in economic growth
Role of entrepreneurship education in promoting an enterprise culture
Current state of entrepreneurship in Botswana
Fostering entrepreneurship and a culture of enterprise
Conclusions2
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Introduction
Definition of Entrepreneurship
• Entrepreneurship refers 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 in order to achieve objectives. (European Union, 2012: 7)
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Introduction Importance of Entrepreneurship
• ENTREPRENEURSHIP is at the heart of economic growth of any nation.
• It is a major source of innovation, enterprise productivity, and employment.
• Entrepreneurship has also been identified as a mechanism by which many people enter the society’s economic and social mainstream, aiding culture formation, population integration, and social mobility
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Introduction Importance of Entrepreneurship• Entrepreneurship is a key driver of economic growth
• This can be demonstrated by using entrepreneurial activity as a measure of economic activity
• According to the Global Entrepreneurship Monitor (2002), the national level of entrepreneurial activity has a statistically significant association with subsequent levels of economic growth.
• GEM data also suggests that there are no countries with high levels of entrepreneurship and low levels of economic growth
• Empirical studies indicate that industries with a high share of small enterprises relative to the same industries in other countries perform better in terms of output growth during the subsequent 3-4 years
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Research Motivation Research Question
• The level of entrepreneurship varies across different countries, with some countries recording significantly high levels of entrepreneurial activities.
• A high level of of entrepreneurial activity has been shown to foster competition, innovation, economic growth, job creation and wellbeing of the citizens (Raposo and Paco, 2011).
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Research Motivation Research Question• Through its Vision 2016 policy, the government of Botswana
identified building entrepreneurship capacity through entrepreneurship education as key to delivering the vision.
• By introducing entrepreneurship education, the government hopes to promote an enterprise culture among students and thus prepare them for self-employment upon graduation.
• This paper examines the following questions:o What is the role of entrepreneurship education in promoting an
enterprise culture?o What is the current state of entrepreneurship in Botswana?o How can entrepreneurship and a culture of enterprise be
fostered?7
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Role of entrepreneurship education in promoting an enterprise culture
• Enterprise is defined as the application of creative ideas and innovations to practical situations
• Both enterprise and entrepreneurship education focus on equipping students and graduates to develop their overall effectiveness beyond the educational setting
• Cultural factors can affect an individual’s willingness to start or grow a business.
• Some of these factors, such as “fear of failure” may be deep-rooted, and others such as the attitude to enterprise, can be instilled in people from an early age
• The role of enterprise and entrepreneurship education is to change people’s attitudes and to foster entrepreneurial attitudes and behaviour
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• Generally, entrepreneurship education aims to increase the awareness of entrepreneurship as a career option, and enhance the understanding of the process involved in initiating and managing a new business enterprise. It covers:
o Education “about” enterprise (i.e. Entrepreneurship awareness),
o Education “for” enterprise (i.e. Preparation of aspiring entrepreneurs for business creation), and
o Education “in” enterprise (i.e. Training for the growth and development of established entrepreneurs).
o Providing the business skills that are needed in order to start a new venture.
Role of entrepreneurship education in promoting an enterprise culture
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• The objectives of entrepreneurship education can thus be summarised as follows (European Communities, 2004):
o Promoting the development of personal qualities that are relevant to entrepreneurship, such as creativity, spirit of initiative, risk-taking and responsibility;
o Raising students’ awareness of self-employment as a career option (the message being that you can become not only an employee, but also an entrepreneur);
o Providing the business skills that are needed in order to start a new venture.
Role of entrepreneurship education in promoting an enterprise culture
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Role of entrepreneurship education in promoting an enterprise culture
Case Study on developing enterprise culture: Kaufman Center for Entrepreneurial Leadership
• A Kauffman Center study (Charney and Libecap, 2000) finds that education in entrepreneurship increases the likelihood of start-ups, and self-employment, and enhances the economic reward and self-satisfaction of entrepreneurial individuals
• In particular, compared to other business school alumni, entrepreneurship graduates: o Are three times more likely to start new businesses. o Are three times more likely to be self-employed. o Have annual incomes that are 27% higher and own 62% more assets. o Are more satisfied with their jobs.
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Role of entrepreneurship education in promoting an enterprise culture
Case Study on developing enterprise culture: Kaufman Center for Entrepreneurial Leadership (Cont’d)
• The Kauffman study also found that:o On average, small firms employing entrepreneurship graduates
had greater sales and employment growth than those that employ non-entrepreneurship graduates.
o Entrepreneurship graduates seem to gravitate toward high technology companies.
o Entrepreneurship graduates either founded or worked for high-technology firms in greater numbers than other business school alumni.
o Entrepreneurship graduates are more involved in new product development and research and development activities.
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Entrepreneurship in BotswanaEntrepreneurship Intention and Activities Outcomes• About 71% of adult population report claims that
they have the skills, knowledge and experience for undertaking entrepreneurial activity.
• 67% of adults (18-64 years) in Botswana believe that they have identified opportunities for starting a business
• BUT only 28% are involved in the early stages of business creation and ownership
• About 28% of Botswana’s adults are involved in the early stages of business creation and ownership
• BUT only 6% of adults actually own an established business
• 77% of Botswana’s young people (18-34 years) reported that they intend to go into business in 2012.
• 70% of young people claim to have the necessary skills to go into business.
• 66% of young people felt that they can identify good business opportunities.
• BUT only 28% are early stage entrepreneurs.
• 73% Batswana view entrepreneurship as a career option
• BUT only 28% are involved in the early stages of business creation and ownership
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Entrepreneurship in Botswana (Cont’d)
• The state of entrepreneurship in Botswana indicates following shortcomings: Poor attitude towards entrepreneurship Inadequate promotion of entrepreneurship Lack of entrepreneurship knowledge / education Poor access to financing Poor enterprise management growth skills Lack of start-up support High entrepreneurship entry barriers
Entrepreneurship Intention and Activities Outcomes• 25% of Batswana are deterred from
entrepreneurship due to fear of failure.• About 16% of Batswana reported relinquishing a
business.• 40 % of start-ups fail due to lack of adequate
financing and lack of profitability.
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Fostering entrepreneurship and a culture of enterprise
• Promote an entrepreneurial society and a culture of enterprise, in particular through education and training. o Integrate entrepreneurship at all levels of the formal education system
(from primary to university) and o Ensure access to information, skills and expertise relating to
entrepreneurship via “lifelong learning” programmes for the adult population.
o Remove barriers to entrepreneurship among specific target (marginalised) groups within the population (e.g. women, youth)
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Fostering entrepreneurship and a culture of enterprise
• Create an entrepreneurial business environment conducive to enterprise creationo Remove administrative and regulatory barriers to new firm entry and
growth, o Policy design in areas such as competition, the regulatory framework, the tax
system, labour markets etc should take account of the way these areas impact SMEs and innovation in knowledge-based economies.
o Improve access to financing and to information, and other support infrastructure and services to build capacity of start-ups.
• Ensure the reduction and simplification of administrative regulations and costs which fall disproportionately on SMEs. o Take account of SME views during the regulatory process; o Employ requirements for regulatory agencies to prepare Small Business
Impact Statements during the regulatory process.o establish one-stop shops for regulatory information and transactions; 16
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Conclusions • The study has shown that the state of entrepreneurship in
Botswana is poor.
• Though intentions to set up businesses are high, perhaps a sign of high unemployment rate, very few people goes on to form a business.
• This indicates existence of entry barriers and lack of skills and knowledge on entrepreneurship.
• A framework that can be used to formulate entrepreneurship policy to alleviate the problems was presented.
• It is believed that the formulation of a robust national entrepreneurship policy and its effective implementation will assist the country in increasing the rate of new firm creation and improve the growth of newly formed companies
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