Category Archives: Enterprise Education

Summary

The rise of entrepreneurship education in the United States has played a significant role in shaping the country’s economic landscape. This paper explores the impact of entrepreneurship education on entrepreneurial behavior and research, highlighting its contributions to fostering innovation, economic growth, and job creation. By analyzing current literature, policy developments, and case studies, this paper establishes the importance of entrepreneurship education in driving the entrepreneurial spirit in the United States.

Introduction

Entrepreneurship education in the United States has grown exponentially over the past few decades. This growth has played a pivotal role in fostering innovation and economic growth, as well as promoting job creation in the country. This paper aims to delve into the impact of entrepreneurship education on entrepreneurial behavior and research in the United States, focusing on its role in driving the entrepreneurial spirit and creating a more prosperous economy.

The Importance of Entrepreneurship Education

Entrepreneurship education is a vital component of economic growth and innovation. According to Kuratko (2005), “entrepreneurship education can serve as a catalyst for economic growth and revitalization, as it equips individuals with the skills and knowledge necessary to create, manage, and grow new business ventures” (p. 578). Entrepreneurship education programs provide students with a wide range of skills and abilities that go beyond traditional business education, including creativity, innovation, problem-solving, and risk-taking (Solomon, 2007).

The Growth of Entrepreneurship Education in the United States

Entrepreneurship education in the United States has seen significant growth in recent years. According to a study by the Kauffman Foundation (2013), the number of entrepreneurship courses offered at U.S. colleges and universities increased from 250 in 1985 to more than 5,000 in 2013. Furthermore, nearly 90% of American universities now offer courses related to entrepreneurship (Kauffman Foundation, 2013).

This growth in entrepreneurship education can be attributed to a combination of factors, including increased demand for entrepreneurial skills, changing economic conditions, and supportive government policies. As the U.S. economy shifted from manufacturing to knowledge-based industries, the need for innovative and entrepreneurial individuals became more critical (Audretsch & Keilbach, 2007).

Government Support for Entrepreneurship Education

The U.S. government has been instrumental in promoting entrepreneurship education through various policies and initiatives. For instance, the Small Business Administration (SBA) provides resources and support for entrepreneurs, including educational programs, mentoring, and access to capital (SBA, 2021). Additionally, the federal government’s support for research and development (R&D) has helped spur entrepreneurial activity, as evidenced by the success of programs like the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) (Audretsch, 2012).

The Impact of Entrepreneurship Education on Innovation

Entrepreneurship education has played a crucial role in fostering innovation in the United States. By equipping students with the necessary skills and mindset, entrepreneurship education has contributed to the development of groundbreaking products, services, and business models. For example, companies such as Google, Facebook, and Tesla, founded by entrepreneurs who emerged from educational institutions with strong entrepreneurship programs, have revolutionized their respective industries (Solomon, 2007).

The literature suggests that entrepreneurship education has a positive impact on students’ propensity to innovate. According to a study conducted by Peterman and Kennedy (2003), students who participated in entrepreneurship education programs exhibited higher levels of innovative behavior and were more likely to generate novel business ideas. This finding is supported by Lorz, Mueller, and Volery (2013), who found that entrepreneurship education programs increased students

Blog, Enterprise Education, Experiential Learning

The evolution of entrepreneurship education in universities across the world

April 22, 2023 David

Entrepreneurship education has evolved significantly within universities over the past 100 years. From the early days of offering business courses to developing dedicated programs and centers, universities have come a long way in their efforts to promote entrepreneurship education. In this blog, we will explore the evolution of entrepreneurship education, highlighting research, pedagogy, and trends.

Early Days of Entrepreneurship Education

Entrepreneurship education can be traced back to the early 1900s, when business schools started offering courses on small business management. However, the focus was on traditional business management, and entrepreneurship was not a separate subject. It was only in the 1960s that entrepreneurship was recognized as a separate field of study, and universities began offering courses dedicated to entrepreneurship.

Research in Entrepreneurship Education

The research in entrepreneurship education started in the 1980s when David Birch published a book called “The Job Generation Process.” In this book, he argued that small businesses were responsible for creating most of the new jobs in the United States. This idea was further supported by other researchers, such as David Storey and Paul Reynolds, who showed that small businesses were an important source of innovation and job creation.

In the 1990s, researchers started focusing on the pedagogy of entrepreneurship education. William Gartner and Scott Shane published a paper in 1995 that argued that entrepreneurship education should be taught experientially. They proposed that students should be given opportunities to start and run their own businesses, and that this would be the best way to learn about entrepreneurship.

Pedagogy of Entrepreneurship Education

The pedagogy of entrepreneurship education has evolved significantly over the years. In the early days, entrepreneurship was taught using traditional business management methods, such as lectures and case studies. However, as research showed that entrepreneurship was best learned through experiential methods, universities started offering more hands-on courses.

Today, entrepreneurship education is typically taught using a combination of traditional methods and experiential learning. For example, students may attend lectures and read case studies, but they will also have the opportunity to start and run their own businesses, work on consulting projects for real clients, or participate in entrepreneurship competitions.

Trends in Entrepreneurship Education

There are several trends in entrepreneurship education that have emerged in recent years. One trend is the development of interdisciplinary entrepreneurship programs. These programs bring together students and faculty from different disciplines, such as engineering, science, and design, to work on entrepreneurial projects.

Another trend is the development of social entrepreneurship programs. These programs focus on teaching students how to start businesses that have a social or environmental impact. Social entrepreneurship has become increasingly popular in recent years, as students are increasingly interested in starting businesses that can make a positive impact on society.

In addition, there has been a trend towards global entrepreneurship education. Many universities now offer study abroad programs or international entrepreneurship competitions, which give students the opportunity to learn about entrepreneurship in different cultural contexts.

Conclusion

Entrepreneurship education has come a long way over the past 100 years. From offering business courses to developing dedicated programs and centers, universities have recognized the importance of entrepreneurship education in preparing students for the workforce. The research has shown that experiential learning is the best way to teach entrepreneurship, and universities have responded by offering more hands-on courses. The trends in entrepreneurship education reflect the changing needs of students and society, with a focus on interdisciplinary, social, and global entrepreneurship. As the world of work continues to change, entrepreneurship education will continue to evolve to meet the needs of students and society.

Blog, Enterprise Education, Entrepreneurial Mindset, Experiential Learning

The evolution of Entrepreneurship Education Research

March 23, 2023 David

Entrepreneurship education is a rapidly evolving field, with new research emerging on a almost monthly basis. Here are some current trends in entrepreneurship education research, in 2023:

Experiential learning: One trend that is gaining traction in entrepreneurship education research is the emphasis on experiential learning. Experiential learning includes activities such as business plan competitions, internships, and incubator programs that allow students to gain real-world experience and apply classroom learning to practical situations. Several studies have shown that experiential learning can improve students’ entrepreneurial skills, attitudes, and intentions.
Interdisciplinary approaches: Entrepreneurship education research is also becoming more interdisciplinary. Many researchers are incorporating concepts and methods from fields such as engineering, design, and social sciences into their studies of entrepreneurship. This approach emphasizes the importance of creativity, innovation, and collaboration in entrepreneurship.
Social and environmental entrepreneurship: There is a growing interest in social and environmental entrepreneurship, which emphasizes the creation of businesses that address social and environmental challenges. This approach is gaining traction as more individuals seek to make a positive impact in their communities and the world. Several studies have shown that social and environmental entrepreneurship education can improve students’ awareness of social and environmental issues and their ability to address these issues through entrepreneurship.
Digital and technology-based entrepreneurship: Another trend in entrepreneurship education research is the growing interest in digital and technology-based entrepreneurship. The rise of digital technologies and e-commerce has led to a surge in the development of online businesses, mobile apps, and other technology-driven ventures. Many entrepreneurship education programs are incorporating courses and activities that focus on digital and technology-based entrepreneurship.
Global entrepreneurship: Entrepreneurship education research is becoming more globally focused, with an emphasis on the development of businesses that can operate in international markets. This includes exposure to different cultures, business practices, and legal and regulatory environments. Several studies have shown that international exposure can improve students’ entrepreneurial skills and their ability to operate in diverse contexts.
Entrepreneurial ecosystems: A growing area of entrepreneurship education research is the study of entrepreneurial ecosystems. Entrepreneurial ecosystems refer to the social, economic, and institutional factors that support entrepreneurship in a particular region or industry. Understanding these ecosystems is important for developing effective entrepreneurship education programs and policies.
Entrepreneurial mindset: Many entrepreneurship education researchers are also focusing on the development of the entrepreneurial mindset. The entrepreneurial mindset is characterized by a set of attitudes, beliefs, and behaviors that are conducive to entrepreneurial success. Several studies have shown that entrepreneurship education can help develop the entrepreneurial mindset, which can in turn improve students’ ability to identify and pursue entrepreneurial opportunities.
Impact of entrepreneurship education: Finally, there is a growing body of research on the impact of entrepreneurship education, with groups such as https://impactresearch.group/. This research aims to understand the long-term effects of entrepreneurship education on students’ entrepreneurial behavior, career paths, and economic outcomes. Several studies have shown that entrepreneurship education can have a positive impact on these outcomes, although the precise nature of this impact can vary depending on the specific context and type of entrepreneurship education program.

In summary, entrepreneurship education research is a diverse and rapidly evolving field, with many different trends and areas of focus. From experiential learning to social and environmental entrepreneurship, digital and technology-based entrepreneurship to global entrepreneurship, and from entrepreneurial ecosystems to the entrepreneurial mindset, there are many different topics and issues that researchers are exploring in their studies of entrepreneurship education. Ultimately, this research is important for developing effective entrepreneurship education programs and policies, and for understanding the role of entrepreneurship in driving economic growth and social change.

Blog, Data Analytics, Enterprise Education, Inclusive Entrepreneurship, Legal and Regulatory Knowledge

England needs Enterprise and Entrepreneurship Education

June 23, 2022 David

There is a diversity of approaches to enterprise and entrepreneurship education (EEE) across the United Kingdom. Three of the four nations: Wales, Scotland and Northern Ireland have all developed and implemented strategies encouraging enterprise and entrepreneurship education, England remains unique for its failure to develop a specific policy for education at all levels.

In a recent 2022 report by the APPG Entrepreneurship (here), they reported that “England remains one of the few places in Europe that
has yet to develop a specific entrepreneurship education strategy for schools“.

My own research (here) has shown that enterprise and entrepreneurship education in Wales is paying off with direct relationships between these interventions and economic development. Wales has implemented a strategy since the early 2000s with the ‘Youth Enterprise Strategy’ (YES) and covers 5–25 year-olds. The stated objective of the strategy was to “develop and nurture self-sufficient, entrepreneurial young people in all communities across Wales, who will contribute positively to economic and social success.”

This investigation showed, for the first time, that it is possible to draw linkages between the outputs generated by some of the EEE activity in universities and key regional development indicators. Across the regions we found that EEE activity in HEIs appears to have a direct impact on business creation and GDP, the latter point echoing more general trends observed by Schubert and Kroll (2014) and Pastor et al. (2018). Furthermore, we were able to use several different indicators to infer a relationship between the nature and/or quality of provision and
graduate start-up activity. That said, we also found numerous trends which we could not fully explain through the data, all of which need further research attention.

This is not new. Entrepreneurship has been shown to be a driver of economic development and a powerful source of economic growth and job creation and that productive entrepreneurship is crucial in terms of economic welfare (van Stel, Carree, & Thurik, 2005; Acs, Audretsch, Braunerhjelm, & Carlsson, 2012; Naudé, 2013).

However what is important is that Koryak et al. (2015) suggests that there exists a deficiency within a substantial proportion of UKs SME in relation to entrepreneurship skills. This is therefore constraining business growth, international trade and product innovation.

Enterprise and entrepreneurship education is not just for those who want to start a new business, it’s for enabling the next generation to be more flexible. In a world where Covid, MonkeyPox and Polio are all reported to be in London, Brexit, international supply chains are rapidly changing, inflation, recession and we again have a war in Europe….I think the resilience which enterprising and entrepreneurial skills provided is now core to supporting this next generation to cope on a daily basis.

The action need is that Enterprise and Entrepreneurship should be part of the core curriculum for all students from 4 to 24 years old and it should be clear what resources will and should be made available.

Blog, Enterprise Creation, Enterprise Education, Entrepreneurial Mindset, Entrepreneurship Theory, Skills Development

9 Stages of Enterprise Creation

November 24, 2017 David

The way we start businesses is changing and through academic research, additional knowledge, skills and tools, the process and issues around growing businesses have profoundly changed Entrepreneurship in the last twenty years. This article develops a new 9 Stages of Enterprise Creation model which is based on today entrepreneurial mindset and the business community ecosystem which molds entrepreneurs and allows their ventures grow.

The first three stages of the Enterprise Creation stages which emerged are: Discovery, Modeling, and Startup which form the new venture formation stages. The next three Existence , Survival and Success develop the business into a sustainable business entity. The last three stages: Adaption, Independence and Exit provide the entrepreneurship pathways for the entrepreneur. These final elements complete the entrepreneurship model by focusing on the success of the business, how the entrepreneur progresses beyond the business, their separation into different entities and the entrepreneurs eventual exit. The 9 Stages of Enterprise Creation are set out below:

Stage 1 – Discovery

This first stage of the 9 Stages of Enterprise Creation is centred around the focal competency of Opportunity recognition, creation and evaluation. These are the processes by which entrepreneurs identify and evaluate potential new business opportunities. An opportunity by definition is a favorable set of circumstances which creates a need for a new product, business, or service. Opportunity recognition is the process by which the entrepreneur comes up with a prospective idea for a new venture. Evaluating the opportunity takes research, exploration, and understanding of current needs, demands, and trends from consumers and others. The process of researching and surveying allows the product or service idea to develop, so that it can be modelled.

Stage 2 – Modeling

The second stage is about developing the business logic to create a business model. This is split into three parts and starts by setting out a Strategy, formulating a business model and setting the business processes to achieve the strategy . These form the key elements for the plan to start the business and, are an integral piece of submitting any proposal for an entrepreneurial or intrapreneurial business. The model should be underpinned by the resources available and those which may still need to be secured. Resource allocation and availability are extremely important to startups because sustainability and profit (not loss) depend on proper planning and understanding of the internal and external environments.

Stage 3 – Startup

The fourth stage is starting the enterprise. Once the resources detailed in the business plan are mobilised the entrepreneurial process can be effected and implementation can take place. In this stage the business may be trading or begin to research or develop a product. The aim of this stage is to have the processes in place so that the business can have a scalable, repeatable and profitable business focused on distinct customers within an identified market.

Stage 4 – Existence

At this stage the business has two core focuses; to gain enough customers to create a profitable business and, at the same time establishing production or product quality. The majority of businesses fail at this stage due, in part, to either one or both of these factors. At this stage the organisation is a simple one, the entrepreneur does everything and directly supervises subordinates, who should be of at least average competence. Systems and formal planning are minimal to nonexistent. The company’s strategy is simply to remain alive which requires the focal competency of tolerance of uncertainty, risk and failure

Stage 5 – Survival

At this stage the business should be a viable entity in terms of cash flow and resources, it has enough customers and satisfies them sufficiently with its products or services to gain repeat sales. The organisation is still simple. The company may have a limited number of employees supervised by a junior manager or supervisor. Neither of them makes major decisions independently, but instead carries out the rather well-defined orders of the entrepreneur. Formal planning is, at best, cash forecasting. The major goal is still survival, and the entrepreneur is still synonymous with the business. The entrepreneur starts to implement ideas through leadership and management which provides opportunities to scale.

Stage 6 – Success

Entrepreneurs at this point of the 9 Stages of Enterprise Creation have a number of options: capitalise on the company’s accomplishments, expand or, keep the company stable and profitable. The entrepreneur has a number of ways to capitalise, from exit to taking a ‘founders dividend’ from the business. If the entrepreneur want to expand then the core tasks are to make sure the basic organisation stays profitable so that it will not outrun its source of cash and, to develop managers to meet the needs of the growing organisation. Through the entrepreneurs leadership all managers within the business should now identify with the company’s future opportunities rather than its current condition demonstrating a success to its stakeholders.

Stage 7 – Adaptation

Businesses which reach this stage normally have a number of factors pushing them to adapt, these are normally grounded in changes either to the micro or macro environments. Businesses at this stage will normally be entering a phase of rapid change and will have to have secured the required finances to develop. At this point key management is in place with a set of operational systems. Operational and strategic planning are now a key focus. The organisation is decentralised and, at least in part, divisionalised. The key managers must be very competent to handle a growing and complex business environment. The systems, strained by growth, are becoming more refined and extensive. Both operational and strategic planning are being done and involve specific managers. The entrepreneur and the business have become reasonably separate, yet the company is still dominated by both the entrepreneur’s presence and stock control.

Stage 8 – Independence

A business at this stage should now has the advantages of size, financial resources, market share and managerial talent. Innovation and Intrapreneurship are now key factors in keeping the business in market position. The organisation has the staff and financial resources to engage in detailed operational and strategic planning. The management is decentralised, adequately staffed, and experienced. Business systems are extensive and well developed. The entrepreneur and the business are quite separate, both financially and operationally.

Stage 9 – Exit

The last of the Enterprise Creation stages is focused on exiting the business and making their separation permanent. An exit strategy will give the entrepreneur a way to reduce or eliminate their stake in the business and, if the business is successful, make a substantial profit. This stage removes the entrepreneur from primary ownership and decision-making structure of the business. Common types of exit strategies include Initial Public Offerings (IPO), strategic acquisitions and management buyouts. The organisation at this stage is generally profitable, has a definable set of resources with a clear and realistic strategy to continue. The CEO and founder(s) are separate.

The full paper which develops the 9 Stages of Enterprise Creation: Bozward, David and Rogers-Draycott, Matthew Charles (2017) Developing a Staged Competency Based Approach to Enterprise Creation. Proceedings of the International Conference for Entrepreneurship, Innovation and Regional Development. ISSN 2411-5320, can be found at http://eprints.worc.ac.uk/5377/

Dr David Bozward