BACKGROUND NOTE TO PEER LEARNING EVENT ON

Guidance supportingentrepreneurship learning and entrepreneurship in Europe - Policy, practice and future potential

Thessaloniki, 25-26 November 2010

The Cedefop peer learning event on Guidance supporting entrepreneurship learning and entrepreneurship in Europewill take place in Thessaloniki, Greece, on 25-26 November 2010. The event will be largely based on the results of the forthcoming Cedefop study on Guidance inentrepreneurship learning (working title).

The starting point of the study was the fact that the role of guidance in supporting an individual’s personal development as part of his/her entrepreneurship learning/education[1] has not been widely addressed in EU or international policy and strategy documents focusing on entrepreneurship. Only very few brief references have been made to guidance in connection to entrepreneurship, such as in the guidance resolution 2008[2] as well as in the International Labour Organisation’s recommendation on education, training, and lifelong learning (2004)[3].

Therefore, this European wide Cedefop study has aimed at identifying and examining actions/measures/initiatives to integrate lifelong guidance in entrepreneurship learning in vocational education and training (VET) as well as in higher education (HE). Moreover, the study has been exploring guidance provision to support career management of entrepreneurs at the initial phase of their business start-up. The non-edited draft of the report will be available for the peer learning participants at the beginning of November. The final edited publication will be released in summer 2011.

The key objectives of this peer learning event are as follows:

- to disseminate and debate the key findings of the forthcoming Cedefop study on Guidance inentrepreneurship learning (working title);

- to present selected initiatives across Europe in developing guidance as an integral element in entrepreneurship learning in VET and HE contexts as well as in providing guidance for new/aspiring entrepreneurs as to support their career management;

- to raise awareness of the role of guidance in entrepreneurship education and learning as well asto stimulate futurepolicy and strategycooperation and coordination in this field at national/regional level in the countries.

The aim of this background note is to briefly highlight some aspects linked to the European policy and strategy context, in which guidance and entrepreneurship are currently discussed. Further, this background paper contains the outline of the two workshops of the peer learning event. These workshops will specifically address the main themes of the before-mentioned study and present the results of ongoing development work in strengthening the role of guidance in VET- and HE-related entrepreneurship learning as well as in career management of the newly self-employed.The peer learning event will be targeted at 30-40 European and national policy- and decision-makers, researchers, practitioners, and entrepreneurs,who show a professional interest in guidance and entrepreneurship learning.

Entrepreneurship is driving new ways of learning and working

As globalisation continues to confront European societies with new challenges, each citizen will need a wide range of skills and competences to adapt flexibly to a rapidly changing, complex and highly interconnected world.This is specifically true now that Europe is facing fierce competition from other world regions, which are questioning its competitiveness as well as long-term economic and sustainable growth.In this setting, entrepreneurship[4] is oftenseen as a tremendous force and cure for supporting growth, recovery, and societal progress by fuelling innovation, employment and social empowerment. Further, it is widely acknowledged that new companies/entrepreneurs are the engines of job creation and eventual economic recovery in Europe[5]. This has many implications, in particular for policy-makers, who are mostly focusing on small businesses as the solution to the dire employment situation.

However, promoting entrepreneurship calls for a more profound awareness of the critical role education and guidance have in developing new leaders, innovators and entrepreneurs[6], who can contribute to creating more jobs and added value for society. Traditionally, though, education and training systems in Europe have not been overly conducive to entrepreneurship and self-employment. As attitudes and cultural references take shape at an early age, education systems can be expected largely to contribute to successfully addressing the entrepreneurial challenge within the EU.This in mind, the Oslo Agenda for Entrepreneurship Education[7] and the Commission communication (2006)[8] aim to embed entrepreneurship into the education curriculum from primary school to post graduation studies.

The Commission expert group (2008)[9]summarised that the primary aim of entrepreneurship education (in higher education) is to develop entrepreneurial capacities and mindsets. This includes developing entrepreneurial drive among students (raising awareness and motivation); training students in the skills they need to set up a business and manage its growth; and developing the entrepreneurial ability to identify and exploit opportunities. The other Commission expert group on entrepreneurship in VET (2009)[10] strongly promotes an easy access to entrepreneurship learning to all VET students, across all curricula and fields of study. To this end in both sectors (HE and VET), stronger partnerships between education and training providers and businesses, research institutions, social partners, cultural actors and creative industries should be established as to improving skills and competences required in the labour market and fostering innovation and entrepreneurship in all forms of learning.

Further, the Council Conclusions on a strategic framework for European cooperation in education and training (“ET 2020”)[11]address four strategic objectives, among them enhancing creativity and innovation, including entrepreneurship, at all levels of education and training. This strategic objective (No 4) considers creativity and innovation as crucial for enterprise development and Europe’s ability to compete internationally, and it emphasises the importance to promote the acquisition of transversal key competences (including a sense of initiative and entrepreneurship[12]) among all citizens. Also the Council conclusions (2010)[13] stress the importance of acquiring competences for lifelong learning through all formal and non-formal settings of learning as well as at work.

As a conclusion,Europe seems to be on the way towardsa clear and coherent commitmentat the highest political levels to fostering entrepreneurship learning and entrepreneurial activity. The current policies areconveyinga strong message of support for entrepreneurship and they are setting the strategic framework in which education and training providers can better implement related programmes/activities.

Guidance, entrepreneurial learning and self-employment

The constant increase of unemployment[14] among young and adult population in Europe calls for creating effective labour market strategies and measures, which more and more frequently alsoincludethe promotion of self-employment as a career option for a growing number of citizens.For becoming an entrepreneur and to manage one’s own career, business and life well is crucially important. Therefore, newly started entrepreneurs and those seriously considering self-employment as a career choice should have an easy access to entrepreneurial learning as well as career guidance support for developing and strengthening their personal qualities, skills and knowledge in relation to their chosen field of business.

The role of guidance in all matters linked to learning and career development is to support the individuals to become better acquainted with their personal capabilities, qualities, aptitudes, attitudes, interests and needs. Guidance is required for providing fundamental information to learners on their future careers (e.g. as self-employed) and on the relationship between learning and labour market realities. In more concrete terms, when guidance is well integrated in (entrepreneurial) learning, it will support individuals’ employability[15], lifelong learning and constant upgrading of their knowledge and skills (i.e. provide guidance support for improving career management skills[16] as skills needed for managing one’s non-linear career pathways in a knowledge-based economy).

In this context, guidance practitioners’ as well as entrepreneurship educators’ professional capacity will have to be further developedas to equip them to act as support figures for learners pursuing entrepreneurial studies and for those individuals (considering) taking the step to self-employment. On the one hand, this can be achievedthrough offering appropriate in-service training to guidance and teaching staff involved in entrepreneurship learning, and on the other hand, for instance through concrete support providedby entrepreneurs, who have been invited to the learning environment (classroom, virtual community, project work, etc.) for sharing their substantial business life experience.Moreover, teachers/trainers/guidance practitioners can help learners explore different entrepreneurship activities and opportunities (e.g. to work on enterprise projects and running mini-companies[17]), which support the development of positive self-esteem, sustainable self-reliance as well as a realistic view of the actual business sector.

Finally,it is worth noting that even with the best possible guidance, teaching and learning opportunities available, many other parameters are decisive as well and have to be in place for individuals to take the decision on becoming self-employed. This includes, among other things, a comparatively wide range of legal, financial and business advice related instruments and materials aiming at generally encouraging entrepreneurial activity by promoting self-employment as a good career option.

INTRODUCTION TO THE WORKSHOPS

The two workshops will broaden and deepen the discussions of the plenary sessions of the peer learning event. Workshop 1 will be oriented towards discussing how guidance measures can be embedded in entrepreneurship learning in VET and HE, whereas workshop 2 will be focusing on how career management of new and aspiring entrepreneurs can be supported by guidance.

The participants in the two workshops will be discussing the topics presented below inspired by the presentations given by experts/researchers in both workshops.

Workshop 1: Guidance support in entrepreneurship learning in VET and HE contexts

Every year in Europethousands and thousands of graduates of VET and HE institutions enter the labour market only to discover that they cannot find a proper job that would meet their qualifications, capacities, aspirations and interests. Therefore, it becomes crucial for the national education and training systems to help young people during their study time to discover and consider alternative career routes. Becoming self-employed might be a realistic career choice for many graduates instead ofentering normal wage employment.

There is strong evidence that education and training programmes in entrepreneurship have a positive impact on developing individuals’ entrepreneurial qualities, raising awareness of career options in entrepreneurship and creating a positive attitude towards entrepreneurship[18]. However,as important as it is for an individual to learn about entrepreneurship, it is exactly as vital for the learning process and choices made alongside itto be supported by high quality guidance and counselling.

This workshop will start with presentations to highlight development work that has taken place in two European Union Member States in the area of embedding guidance in entrepreneurial learning in VET and HE. Inspired by these presentations as well as based on the forthcoming Cedefop study, the discussions in the workshop should specifically focus on the lessons learnt from providing guidance in entrepreneurship learning in VET and HE in different parts of Europe. The specific questions and issues to be debated in the workshop are as follows:

1)Workshop participants are expected to reflect on the situation in their own country as regards the role and contribution of guidance in entrepreneurship learning in VET and/or HE.

- What is the current state-of-play and experience to datein your country? To what extent is guidance currently embedded in entrepreneurship learning in VET and HE contexts in your country? If to a minor extent only, what should/could be done in the future to improve the situation?

- Is guidance in entrepreneurship learning an issue of interest for policy- and decision-makers in your country (national, regional, local levels)? If not, what should/could be done to promote it?

- What could your country learn from the workshop presentations? Which message/s from this event do you plan to bring back to your own institution/ administration?

2)Workshop participants are asked to discuss how the role of guidance in entrepreneurship learning in VET and HE could be strengthened across Europe in the coming years. Especially the European policy and strategy initiatives, developments and processes (e.g. Copenhagen, Bologna) in the areas of education, training, employment, guidance and entrepreneurship should be considered.

Workshop 2: Guidance support for career management of new and aspiring entrepreneurs

Entrepreneurship should not only be considered as a means for setting up a new business, but as a general mindset that can be easily put in practice by everyone in their daily life and in different working environments. The current education and training system is to an increasing degree strengthening such entrepreneurial attitude in young people throughout their schooling from primary to tertiary education.However, in the case of adults there might not always be such mental entrepreneurial readiness acquired through formal learning and thus they may require additional guidance support and training for managing their own careers and businesses well.

The workshop will start with presentations from two European Union countries.These examples will highlight the country-specific experiences in offering guidanceto developing career management skills of new and aspiring entrepreneurs. In relation to these presentations as well as based on the forthcoming Cedefop study, the discussions in the workshop will deal with the lessons learnt from providing guidance support for career development of newly self-employed people in different European countries. The following issues will be addressed in the workshop:

1)Workshop participants are expected to reflect on the situation in their own country as regards the role and contribution of guidance in supporting career management of new and aspiring entrepreneurs.

- What is the national experience to date? To what extent are careers information and guidance services available for people who have recently become self-employed? Do these services sufficiently address the development of career management skills of entrepreneurs? If to a minor extent only, what should/could be done in the future to improve the situation?

- Is career management of new/aspiring entrepreneurs an issue of interest for policy- and decision-makers in your country (national, regional, local levels)? If not, what should/could be done to promote it?

- What could your country learn from the workshop presentations? Which message/s from this event do you plan to bring back to your own institution/ administration?

2)Workshop participants are asked to discuss how guidance could more strongly be integrated to supporting career development and management of new/aspiring women, migrant and ethnic minority entrepreneurs.

- Women as well as migrants and people from ethnic minorities represent an extensive pool of entrepreneurs in Europe. As to fully utilise their potential and to foster their entrepreneurial activity, the Member States should take active measures to support women, migrant and ethnic minority entrepreneurs and help these groups overcome difficulties which might prevent them from starting and growing businesses in their local and regional communities.What has been done and achieved in your country in relation to providing guidance to the above target groups in order to reinforce their career management skills as new/aspiring entrepreneurs?

For further information about the event, please contact:

Mr Mika Launikari, Project Manager (Lifelong Guidance)

Cedefop, PO Box 22427, 55102 Thessaloniki, GREECE

Tel. 30-2310-490111 (switchboard), Email

[1] Final report of the expert group: “Best procedure” project on education and training of entrepreneurship, Enterprise Directorate General (2002, p. 15). This group defined two different concepts that come together in the definition of entrepreneurship education: a broader concept of education for entrepreneurial attitudes and skills, which involves developing certain personal qualities and is not directly focused on the creation of new businesses; and a more specific concept of training in how to create and run a business successfully.

[2]

[3] ILO Recommendation on human resources development: Education, training, lifelong learning (2004) which states”to provide information and guidance on entrepreneurship, promote entrepreneurial skills, and raise awareness among educators and trainers of the important role of enterprises, among others, in creating growth and decent jobs”

[4] European Commission Green paper “Entrepreneurship in Europe (2003), defines (p.6) entrepreneurship as the mindset and process to create and develop economic activity by blending risk-taking, creativity and/or innovation with sound management, within a new or an existing organisation.

[5]European Commission (2010), Staff working document, Lisbon Strategy evaluation document (see category: related documents)

[6] Business Europe, Employment Week, session on enterprise and job creation (11 June 2008): Yet Europe must become more entrepreneurial and create the best possible societal conditions for entrepreneurship as Europeans are still less inclined than US citizens to take the risk of setting up their own businesses.

[7]Oslo Agenda for Entrepreneurship Education (2006)

[8]Communication from the Commission on fostering entrepreneurial mindsets through education and learning (2006)

[9] European Commission (2008): Best procedure project – Entrepreneurship in higher education,especially in non-business studies. Final report of the expert group.

[10] European Commission (2009). Best procedure project: Entrepreneurship in vocational education and training. Final report of the expert group.

[11] Council Conclusions on a strategic framework for European cooperation in education and training

(2009)

[12] Council recommendation on key competences for lifelong learning (2006)

[13]Council conclusions of 11 May 2010 on competences supporting lifelong learning and the ‘new skills for new jobs’ initiative (2010/C 135/03)

[14] No data available on graduate unemployment in Europe, but the Eurostat Newsrelease (31 March

2010) reveals a growing trend in youth unemployment across the European Union: in February 2010, the youth

unemployment rate (under-25s) was 20.0% in the euro area and 20.6% in the EU27. In February 2009 it was 18.4% in both zones. The lowest rate was observed in the Netherlands(7.3%), and the highest rates in Latvia(41.3% in the fourth quarter of 2009) and Spain(40.7%). The EU27overall unemployment rate was 9.6% in February 2010. For the euro area this is the highest rate since August 1998 and for the EU27 since the start of the series in January 2000.