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 million to the UK economy What do you think? 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 “the business incubator seeks to effectively • 300 BIs in the UK link talent, technology, capital and know-how • Average 167 jobs and 30 in order to leverage entrepreneurial talent and businesses per unit to accelerate the development of new • 98% success rate companies” – Smilor and Gill (1986) • Slight impact 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 “We want to grow the next generation of entrepreneurs • ensuring Aims: that young people get hands-on experience by of enterprise at college and university. I am pleased to – Sustainable development offer my support to NACUE and its partners as they drive – Inspire, educate and train forward this project to give students valuable experience Linkhelp students with entrepreneurs that–could them set up their own businesses in the future.” – Mark Prisk – Minsterenterprise for Businessinitiatives and – Support student-led Enterprise (NACUE, 2011) Educating Enterprise: National Centre of Entrepreneurship in Education 2004 Coventry University Technology Park Collaborate with partners and organisations Programmes and projects cultivating entrepreneurship •Leadership and Management •Academic environment •Students •Graduates Educating Enterprise: National Centre of Entrepreneurship in Education • £14.03m gross value added • 17:1 return ratio • 3,558 graduates enrolled in • 27,000 graduate members 2010 • 1379 new business by 2011 • 465 students started businesses • 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 What is the best way to promote entrepreneurship? 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-businesssupport/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). 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[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 [Accessed 05/03/2012]. 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.