Entrepreneurship1 - NewTrendsinManagement

By: Caitlin and Neal
9th March 2012
Discussion Plan
Who are entrepreneurs?
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)
• “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
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
– 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
link talent, technology, capital and know-how
• Average 167 jobs and 30
in order
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
“We want to grow the next generation of entrepreneurs
• ensuring
Aims: that young people get hands-on experience
of enterprise
at college
and university. I am pleased to
– Sustainable
offer my support to NACUE and its partners as they drive
– Inspire, educate and train
forward this project to give students valuable experience
them set
up their
own businesses in the
– Mark Prisk
– Minsterenterprise
for Businessinitiatives
– Support
Enterprise (NACUE, 2011)
Educating Enterprise: National Centre
of Entrepreneurship in Education
Coventry University
Technology Park
with partners
Programmes and
projects cultivating
•Leadership and Management
•Academic environment
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
• 1379 new business by 2011 • 465 students
started businesses
• Aims:
– Opportunities
– Influence environment
– Convert intent and
– Deliver impact
• “Entrepreneurship is the mechanism through
which economic growth takes place.” – Minniti
• 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?
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). [Online] Available from: http://www.dwp.gov.uk/adviser/updates/new-enterpriseallowance/ [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 [Accessed
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
Smilor, R. W. and Gill, M.D. (1986) The new business incubator: linking talent, technology, capital and know-how. Lexington: Lexington
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.

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