Entrepreneurship By: Caitlin and Neal 9th March 2012
Discussion Plan • Who are entrepreneurs? • Entrepreneurship • The government’s ‘commitment’ • Business incubators • Entrepreneurship linked into education • Class Activity
What is an entrepreneur? • “An entrepreneur is someone with a new venture, project and is usually associated with creative thinking, driving innovation and championing change.” – Boddy (2008:6) • “Entrepreneurs use innovation to exploit or create change and opportunity for the purpose of making profit. They do this by shifting economic resources from an area of lower productivity into an area of higher productivity and greater yield, accepting a high degree of risk and uncertainty in doing so.” – Burns (2011:13)
Entrepreneurship • “the mind-set and process needed to create and develop economic activity, blending risk-taking, creativity and/or innovation with sound management within new or an existing organisation” – European Commission (2004) • Entrepreneurship, innovation and enterprise • National Centre for Entrepreneurship in Education attributed ~£68.3 millionto the UK economy
Government’s Commitment • New Enterprise Allowance Scheme: • Weekly allowance worth £1,274 • Start-up loan £1,000 • Mentoring support • Enterprise Investment Scheme: • Small higher-risk trading companies • Increase tax relief to 30%
Government’s Commitment Continued • Increase Enterprise Zones: • 30,000 new jobs by 2015 • Birmingham, Manchester, Newcastle and Merseyside • 100% business rates relief • Banks: • £76 billion worth of new credit available to SMEs
Can government policy work? • Entrepreneurial activity = economic growth and development • Is government able to positively influence entrepreneurial activity? • One policy does not fit all • Financial support = negative impact? • Enterprise Zones – do they really work?
Can government policy work? • Enterprise Zones: • Stimulate rapid investment • Unsuccessful in 1980s • 80% of jobs created taken from elsewhere • Ineffective at sustainable economic growth • In 1980s cost £23,000 per job created
Business Incubators (BI) • Established in 1959 – New York • 300 BIs in the UK • Average 167 jobs and 30 businesses per unit • 98% success rate • Slight impact “the business incubator seeks to effectively link talent, technology, capital and know-how in order to leverage entrepreneurial talent and to accelerate the development of new companies” – Smilor and Gill (1986)
The Department for Business, Innovation and Skills (BIS) • Who are they? • Enterprise Directorate • Aims: • Increase enterprise within schools • University Enterprise Networks • National Centre for Entrepreneurship in Education • Increase women entrepreneurs • Global Entrepreneurship Week
Educating Enterprise: National Association of College & University Entrepreneurs • Aims: • Sustainable development • Inspire, educate and train • Link students with entrepreneurs • Support student-led enterprise initiatives “We want to grow the next generation of entrepreneurs by ensuring that young people get hands-on experience of enterprise at college and university. I am pleased to offer my support to NACUE and its partners as they drive forward this project to give students valuable experience that could help them set up their own businesses in the future.” – Mark Prisk – Minster for Business and Enterprise (NACUE, 2011)
Educating Enterprise: National Centre of Entrepreneurship in Education Coventry University Technology Park 2004 Collaborate with partners and organisations • Leadership and Management • Academic environment • Students • Graduates Programmes and projects cultivating entrepreneurship
Educating Enterprise: National Centre of Entrepreneurship in Education • 17:1 return ratio • 27,000 graduate members • 465 students started businesses • £14.03m gross value added • 3,558 graduates enrolled in 2010 • 1379 new business by 2011 • Aims: • Opportunities • Influence environment • Convert intent and aspirations • Deliver impact
Overview • “Entrepreneurship is the mechanism through which economic growth takes place.” – Minniti (2008:789) • Government policy - one size does not fit all • Business incubators – support systems, but do they go beyond that? • NCEE and NACUE collaborating with government and organisations
References • BIS. (2011) About Us. [Online] Available from: http://www.bis.gov.uk/about [Accessed 28/02/2012]. • BIS. (2011) Enterprise & Business Support. [Online] Available from: http://www.bis.gov.uk/policies/enterprise-and-business-support [Accessed 28/02/2012]. • BIS. (2011) Entrepreneurial Culture. [Online] Available from: http://www.bis.gov.uk/policies/enterprise-and-business-support/entrepreneurial-culture [Accessed 28/02/2012]. • Boddy, D. (2008) Management: an Introduction. 4th ed. Harlow: Pearson Education Limited. • Burns, P. (2011) Entrepreneurship & small business: start up, growth and maturity. New York: Palgrave Macmillan. • Dee, N.J., Livesey, F., Gill, D. and Minshall, T. (2011) Incubation for Growth: A review of the impact of business incubation on new ventures with high growth potential. ‘NESTA’ • Drucker, P. (1985). Innovation and entrepreneurship . London: Heinemann. • DWP (2012) The New Enterprise Allowance (NEA). [Online] Available from: http://www.dwp.gov.uk/adviser/updates/new-enterprise-allowance/ [Accessed 05/03/2012]. • Evans, T. (2012) ‘A Saucy millionaire role model for serial entrepreneurs.’ Entrepreneur. [Online] Available from: http://www.entrepreneur.com/article/222602 [Accessed 05/03/2012]. • HM Treasury. (2011) The Government announces 11 new Enterprise Zones to accelerate local growth, as part of the Plan for Growth. [Online] Available from: http://www.hm-treasury.gov.uk/press_96_11.htm [Accessed 05/03/2012]. • Li, W. (2002). ‘Entrepreneurship and government subsidies: A general equilibrium analysis’. Journal of Economic Dynamics & Control, 26(11), pp. 1815–1844. • Minnit, M. (2008) ‘The role of government policy on entrepreneurial activity: productive, unproductive, or destructive?’ Entrepreneurship Theory and Practice, 32 (5), pp. 779-790. • NACUE Ltd. (2011) Government announces investment in student entrepreneurs of tomorrow. [Online] Available from: http://nacue.com/2011/11/government-announces-investment-in-student-entrepreneurs-of-tomorrow/ [Accessed 28/02/2012]. • NACUE Ltd.(2011) NACUE. [Online] Available from : http://nacue.com/.Last [Accessed05/03/2012]. • NCEE (2012) Impacts of NCEE. [Online] Available from: http://www.ncee.org.uk/impact_of_ncee [Accessed 01/03/2012]. • Sissons, A. and Brown, C. (2011) Do Enterprise Zones Work? The Work Foundation. [Online] Available from: http://www.theworkfoundation.com/assets/docs/publications/283_Enterprise%20Zones_24%20Feb_FINAL.PDF [Accessed 01/03/2012]. • Smilor, R. W. and Gill, M.D. (1986) The new business incubator: linking talent, technology, capital and know-how. Lexington: Lexington Books. • Tamάasy, C. (2007) ‘Rethinking technology-oriented business incubators: developing a robust policy instrument for entrepreneurship, innovation, and regional development’. Growth and Development, 38 (3), pp. 460-473.