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Entrepreneurship Education Opportunities and Challenges for Universities in Visegrad Countries Dana EGEROVÁ, ,YHWD8%5(ä,29È Witold 12:,ē6., Csilla CZEGLÉDI et al. 3O]HĖ Authors: ,QJ/HQNDý(&+8529È doc. PaedDr. Dana EGEROVÁ, Ph.D. Chapter Chapters 1 5, 9, Introduction,Summary doc. PaedDr. Ludvík EGER, CSc. Ing. Jarmila IRCINGOVÁ, Ph.D. КУ doc. Dr., Ing. Miroslav PLEVNÝ ,QJ-DQ7/8ý+2ě3K' Ing. Michal MIýË. GRF-LĜt9$&(.3K' Ing. Jana KOZÁKOVÁ, Ph.D. Chapters Chapter Chapter Chapter Chapter Chapter Chapters 2, 6 8 4 7 6 1 1, 6, 7 ,QJ'UDKRVODY/$1ý$5,ý3K' Ing. Radovan SAVOV, Ph.D. Ing. Marián TÓTH, Ph.D. Prof. Ing. Iveta 8%5(ä,29È, CSc. Dr. Csilla CZEGLÉDI, Ph.D. prof. László HAJÓS, CSc. Zsuzsanna KUNA MAROSNÉ Miskolcine Dr. Andrea MIKÁCZÓ, Ph.D. Peter KOLLÁR Dr. Erika VARGA, Ph.D. *UDĪyna NOWACZYK, Ph.D. Anna SOBCZAK, Ph.D. :LWROG12:,ē6.,, Ph.D. Dr. Artur FABIS PhDr. Lukasz TOMCZYK Edited by: Dana Chapter Chapter Chapter Chapters Chapter Chapter Chapters Chapter Chapter Chapters Chapters Chapters Chapters Chapter Chapters 5 4 4 2, 8 6 6 1, 7 2 5 4, 8 4, 6, 8 4, 6, 7 2, 5 6 1, 3 EGEROVÁ Reviewers: doc. Ing. Bc. Petr Suchánek, Ph.D. prof. Ing. Miriam Bitterová, Ph.D. Scientific review by NAVA ISBN 978-80-7211-499-3 Published in the Czech Republic by NAVA, 2016 International Visegrad Fund, Strategic Grant No. 31410020: Innovative entrepreneurship education - necessary precondition for future prosperity of V4 region 9/2014 – 8/2016 Scientific exchange and research Project co-ordinator: u CZ - University of West Bohemia Project partners: u SK - Slovak University of Agriculture in Nitra u HU - Szent István University, Gödöllö u PL - :6%8QLYHUVLW\LQ3R]QDĔIRUPHUO\Poznan School of Banking) u PL 7KH6WDWH6FKRRORI+LJKHU(GXFDWLRQLQ2ĞZLĊFLP u PL - Pedagogical University of Cracow The monograph was published with the support of International Visegrad Fund and University of West Bohemia. CONTENT Introduction .............................................................................................................................. 9 1 Entrepreneurship education – theoretical framework ............................................... 12 1.1 Role of entrepreneurship and entrepreneurship education ........................................ 12 1.2 What does entrepreneurship education really mean? ................................................ 15 1.2.1 1.3 2 Classification of entrepreneurship education and training (EET) programs ...... 16 Who should teach entrepreneurship? ......................................................................... 20 1.3.1 How to teach entrepreneurship ........................................................................... 21 1.3.2 Entrepreneurial vs. traditional approach in education ........................................ 22 1.3.3 Measuring impact of entrepreneurial education ................................................. 23 1.4 Entrepreneurship education in Central, Eastern and Southeastern Europe ............... 23 1.5 Entrepreneurship education in the EU and other related documents ......................... 24 1.6 Recommended actions for academic institutions ...................................................... 25 National strategies concerning entrepreneurship education at university level ...... 28 2.1 National strategies in the Czech Republic ................................................................. 28 2.2 National strategies in Hungary .................................................................................. 31 2.3 National strategies in Poland ..................................................................................... 34 2.4 National strategies in the Slovak Republic ................................................................ 37 2.5 Discussion and Conclusion ........................................................................................ 41 3 Education – Andragogy: Methods of teaching and learning ..................................... 43 4 Entrepreneurship education at universities / analysis of selected curricula ............. 52 5 6 4.1 Introduction to Education System at Universities in V4 Countries ........................... 52 4.2 Methodology and the Sample of Study Programs Analysis ...................................... 56 4.3 Results of the Study Programs Analysis .................................................................... 58 4.4 Examples of Best Subjects for Entrepreneurship ...................................................... 61 4.5 Conclusions and Recommendations .......................................................................... 63 Entrepreneurial intentions and plans of university students from Visegrad countries – key findings from questionnaire survey ........................................................... 66 5.1 Rationale and objectives of the study ........................................................................ 66 5.2 Data ............................................................................................................................ 66 5.3 Methods ..................................................................................................................... 67 5.4 Sample characteristics ............................................................................................... 68 5.5 Results ....................................................................................................................... 71 5.6 Conclusions ............................................................................................................... 77 5.7 Limitations and opportunities for future research ..................................................... 77 Key findings from focus groups research .................................................................... 79 6.1 Introduction ............................................................................................................... 79 6.2 Methodology of focus groups research ..................................................................... 79 6.3 Research design and pilot study ................................................................................ 82 7 8 6.4 Partial results from each country ............................................................................... 82 6.5 Conclusion ................................................................................................................. 94 In-depth interviews with entrepreneurs and experts .................................................. 96 7.1 Methodology .............................................................................................................. 96 7.2 Sample – Structure of respondents ............................................................................ 97 7.3 Key outputs .............................................................................................................. 101 7.3.1 External conditions (environment) for starting business .................................. 101 7.3.2 Individual background of an entrepreneur ....................................................... 103 7.3.3 Entrepreneurship and educational system (university education) .................... 108 7.3.4 Recommendations for entrepreneurial education at universities ..................... 109 7.3.5 Experience from being an entrepreneur ........................................................... 110 7.3.6 Concluding remarks from interviews with entrepreneurs and experts ............. 111 Best Practices ................................................................................................................ 112 8.1 Examples of Best Practices in the Slovak Republic ................................................ 112 8.1.1 AmCham Slovakia´s Committee on Business – Academic Cooperation ........ 113 8.1.2 The Carrer Day at the Slovak University of Agriculture in Nitra .................... 113 8.1.3 Operational Program Education in relation to the best practice ....................... 114 8.1.4 Operational Program Research and Development ........................................... 114 8.1.5 Dialogue - Bridges between Research and Practice in University Lifelong Learning ......................................................................................................................... 115 8.2 Examples of best practices in the Czech Republic .................................................. 116 8.2.1 Examples of Best Practices at Czech universities ............................................ 116 xPORT Business Accelerator – University of Economics in Prague ............................. 116 8.2.2 Business Clubs and startup competitions ......................................................... 117 8.2.3 University of West Bohemia in Pilsen – project UNIPRANET and the Entrepreneurship Centre at the Faculty of Economics. .................................................. 118 8.2.4 Cooperation between universities and regions ................................................. 119 8.2.5 Cases of insufficient sustainability ................................................................... 119 8.3 Examples of Best Practices in Hungary .................................................................. 120 8.4 Examples of Best Practices in Poland ...................................................................... 124 8.4.1 Programs and specializations ........................................................................... 124 8.4.2 Business teaching methods ............................................................................... 125 8.4.3 The involvement of student organizations ....................................................... 126 8.4.4 Educational events ............................................................................................ 126 8.4.5 Academic Business Incubator (ABI) ................................................................ 127 8.4.6 Support for teaching faculty ............................................................................. 128 8.5 9 Conclusions 128 ............................................................................................................. Conclusions and Recommendations ........................................................................... 130 9.1 Conclusions 130 ............................................................................................................. 9.2 Recommendations 133 ................................................................................................... References 135 ............................................................................................................................. Summary 146 ............................................................................................................................... Entrepreneurship Education – Opportunities and Challenges for Universities in Visegrad Countries 1 ENTREPRENEURSHIP EDUCATION – THEORETICAL FRAMEWORK Most of what you hear about entrepreneurship is all wrong. It’s not magic; it’s not mysterious; and it has nothing to do with genes. It’s a discipline and, like any discipline, it can be learned. Peter F. Drucker This chapter is based on the desk research. During its preparation we reviewed numerous documents related to entrepreneurship generally and to entrepreneurship education specifically. We refer here often to summary reports of different institutions and organisations where the reader can find extensive lists of references to original journal articles, reports and other resources. 1.1Role of entrepreneurship and entrepreneurship education The World Bank in 2014 published an extensive report on “Entrepreneurial Education and Training Programs around the World” (Valerio, Parton, Robb, 2014). It starts with the following statement: “Over the last 20 years, entrepreneurship education and training (EET) programs have mushroomed, given their promise and potential to promote entrepreneurial skills and attitudes. While the number of such programs continues to expand worldwide, global knowledge about these programs’ impact remains thin.” One of the goals of this publication is to contribute to the pool of knowledge about entrepreneurship education by summarizing research performed in Visegrad countries. There is still no single precise definition of entrepreneurship. The research of entrepreneurship owes much to Joseph Schumpeter. He argued that the innovation and technological change of a nation come from the entrepreneurs. He coined the phrase “entrepreneurial spirit” and asserted that "... the doing of new things or the doing of things that are already being done in a new way" stemmed directly from the efforts of entrepreneurs (Schumpeter 1947). Other scholars understand entrepreneurship as a process of opportunities discovery with the final purpose of creating new wealth. Baumol, Litan, and Schramm (2007) find that among developed economies, the United States and some Anglo-Saxon countries nurture innovators more successfully than the economies of continental Europe and East Asia because they encourage dynamic, young, highgrowth businesses. These businesses, not mature companies, exhibit the fastest innovation-led growth and push the technology frontier. Such enterprises tend to be the main sources of entrepreneurial activity. Bessant and Tidd (2007) already in the title of their book express their position that innovation and entrepreneurship are on-board of the same ship and cannot prosper one without the other. As they say, the archetypal inventors like Thomas Edison, Graham Bell, James Dyson and others, were also entrepreneurs, as they developed successful businesses based on inventions and innovations. 12 Entrepreneurship Education – Opportunities and Challenges for Universities in Visegrad Countries The World Economic Forum in its report Educating the Next Wave of Entrepreneurs adopts the following concise definition: “The pursuit of opportunity beyond the resources you currently control.” (Volkmann et al, 2009). Entrepreneurship’s contributions to economic development can depend on the type of entrepreneurship. Acs, Desai, and Hessels (2008) suggest that entrepreneurship should be understood more broadly and that – besides of “opportunity (innovative) entrepreneurship” focused on starting a business to exploit a perceived business opportunity we should not leave without attention the “necessity entrepreneurship”, i.e. starting a business after being pushed into it. While the first generate employment, spillovers and structural economic changes, the latter are unlikely to expand, but are an important source of income, especially in developing countries. Stimulating entrepreneurship plays increasing role in the development of businesses. Newly established workplaces can contribute to strengthening the local labour market because these new workplaces are often situated where the entrepreneurs are living. It is especially true for family businesses. There is a positive correlation between entrepreneurship and economic growth. Sustainable growth based on innovation requires an increasing number of start-ups, which are likely to provide more and better jobs. European Commission states (EC 2015): “Entrepreneurship is a skill that can be learnt. You don't have to be born an entrepreneur to run a successful business. You can become one by developing an entrepreneurial mind set and skills. As Europe needs more entrepreneurs creating jobs, it's necessary to support this type of education in all EU countries. The main objective of the European Commission is to promote entrepreneurship education and stress its importance at all levels from primary school to university and beyond.” Sometimes, the “art” and the “science” of entrepreneurship are separated: the former (e.g., creativity, innovative thinking) is not teachable, except through practical experience; while the latter (e.g., business and management skills) can be taught. Despite these points to the contrary, research supports that when education and training systems incorporate creative and entrepreneurial skills into teaching methodologies, the mindsets and skills more closely tied to the “art” of entrepreneurship are transmittable Entrepreneurship Education and Training (EET) represents academic education or formal training interventions that share the broad objective of providing individuals with the entrepreneurial mindsets and skills to support participation and performance in a range of entrepreneurial activities. Audretsch (2004) sees a government’s action grounded in four types of market failures: network externalities (geographic proximity to complementary firms), knowledge externalities (knowledge spillover), failure externalities (value created for other firms and individuals even if firms fail), and learning externalities (motivation and learning from the demonstration of entrepreneurial activities by others). Governments can employ a number of policy tools: easing business environment constraints, expanding access to credit, promoting value chain integration, strengthening 13 Entrepreneurship Education – Opportunities and Challenges for Universities in Visegrad Countries capacity to improve business practices, and establishing incubators to support innovation and business start-ups. And they are important players in supporting entrepreneurship education and training. Their rationale for playing a role in EET is tied to its interest in addressing mindsets, knowledge-based skills, and cultural constraints to entrepreneurship. Governments can be uniquely situated to support EET. For example, at a strategic level, governments can serve as champions for EET through the establishment of national plans and agendas. They can set policy frameworks that shape the context of EET delivery within education systems and institutions and directly fund EET interventions, assist in developing EET curricula and training instructors to implement curricula in education systems. Involving the private sector in the delivery of EET can bring additional benefits to participants, therefore governments’ role should also include public-private partnerships to provide EET more effectively. According to the Oslo Agenda for Entrepreneurship Education in Europe, “some successful entrepreneurs often emphasize that education is too formal, too rigid, too systemized, and too equalizing, does not motivate people to be themselves, and therefore kills and destroys their entrepreneurial spirit.” (EC, 2006). Promoting entrepreneurship has several long-term benefits: u it drives personal development, u it strengthens the ability to innovate and adapt, and hence the ability to make efficient use of resources, u it contributes to necessary diversity in business life. Entrepreneurial mindsets and skills can be best promoted through learning by doing and experiencing entrepreneurship in practice, by means of concrete projects and activities. At university level, entrepreneurship education should have a strong focus on generating business ideas, technology-based activities and innovation. The scope of entrepreneurship education is much wider than training on how to start a business, as it includes the development of personal attributes and horizontal skills like creativity, initiative, self-confidence, among many others. Mentoring or coaching from people with business experience should be a basic element in all entrepreneurship training. However, it is not sufficient just to bring entrepreneurs into the classroom: students should be directly involved in enterprise projects. Entrepreneurship in education includes development both of personal qualities and attitudes and of formal knowledge and skills: u Personal qualities and attitudes increase the probability of a person seeing opportunities and doing something about them. Work on entrepreneurship in education must primarily place emphasis on development of personal qualities and attitudes. In that way a basis is laid for later utilization of knowledge and skills in 14 Entrepreneurship Education – Opportunities and Challenges for Universities in Visegrad Countries active value creation. u Knowledge and skills concerning what must be done to establish a new enterprise, and how to be successful in developing an idea into a practical, goal-oriented enterprise. 15 Entrepreneurship Education – Opportunities and Challenges for Universities in Visegrad Countries 1.2What does entrepreneurship education really mean? Education is the clearest path to individual opportunity and societal growth, and entrepreneurship education is especially vital to fuelling a more robust global economy. Entrepreneurs bring new ideas to life through innovation, creativity and the desire to build something of lasting value. Therefore, we must continually foster educational cultures within our companies, governments and communities to keep the entrepreneurship pipeline filled for generations to come. Dirk Meyer, President and CEO, AMD According to the OECD study “Entrepreneurship and Higher Education” (OECD, 2008), the entrepreneurship education can be defined as all activities aiming to foster entrepreneurial mindsets, attitudes and skills and covering a range of aspects such as idea generation, start-up, growth and innovation. Entrepreneurship education involves developing certain personal qualities, and is not necessarily directly focused on the creation of new businesses. The objectives of teaching about entrepreneurship should therefore include: u Promoting the development of personal qualities that are relevant to entrepreneurship, such as creativity, spirit of initiative, risk-taking and responsibility. u In addition to this, entrepreneurship education should contribute to raising pupils’ and students’ awareness of self-employment as a career option. The message being that you can become not only an employee, but also an employer. A set of personal qualities relevant to entrepreneurship includes the following abilities and competencies of potential entrepreneurs: u Problem solving: the ability to see problems as opportunities, acquire problem solving skills, methods and tools, develop competencies in planning, decisionmaking, communication and the willingness to assume responsibility · u Cooperation and networking: to develop social competences as the ability to cooperate, networking, learning to assume new roles. u Self-confidence and motivation: to develop self-confidence, learn to think critically and independently and to learn autonomously. The study compares the prevailing current university offerings versus entrepreneurs’ learning needs and concludes that while universities focus on imparting knowledge and information, entrepreneurs emphasize need for developing implementation skills. One of the strategic EU documents related to entrepreneurial education, “The Oslo Agenda for Entrepreneurship Education in Europe” (European Commission, 2006), refers to experience of entrepreneurs: “Some successful entrepreneurs often emphasize their lack of education, and claim that it is the lack of education that has made it possible to succeed. They 16 Entrepreneurship Education – Opportunities and Challenges for Universities in Visegrad Countries say education is too formal, too rigid, too systemized, and too equalizing, to allow people to be themselves, and will therefore kill and destroy their entrepreneurial spirit.” What, according to the Oslo Agenda, can the education bring to the entrepreneurial party? 1. Presentation of systemized knowledge, summary of entrepreneurial experience allows to learn from others, not only from own mistakes, which would be very costly! 2. Entrepreneurial success requires knowledge of social, economic and technological influences. Education will help you get that. 3. Education helps to create networks that could be hard to get access to on your own. 4. Education may stimulate a kind of personal growth that generates entrepreneurial activities. Today’s pupils and students represent tomorrow’s workforce and hence the foundation of our future welfare. Promoting entrepreneurship has several long-term benefits: u it drives personal development, u it strengthens the ability to innovate and adapt, and hence the ability to make efficient use of resources, u it contributes both to increased equality among individuals and to necessary diversity in business life. The education system plays a vital role in fostering attitudes and behaviour that enhance cooperation, creativity and innovation among children and young people. Students must believe in their capabilities and ability to spend resources in order to create wealth and jobs and understand, how education and entrepreneurial activity may stimulate each other, not the opposite. Of course, not all youngsters who are exposed to entrepreneurship programmes will decide later on to start their own company. However, by taking part in entrepreneurship programmes and activities, students become more willing to take responsibility and to use their initiative, better at developing their own ideas and at channelling their creativity. Therefore entrepreneurship helps young people to be more creative and self-confident in whatever they undertake. It relates to managing one’s own life; to being creative in any working activity; and to establishing and expanding a business successfully. 1.2.1Classification of entrepreneurship education and training (EET) programs According to the World Bank report (Valerio, Parton, Robb, 2014), entrepreneurship education and training (EET) programs can be classified under two related but distinct categories: education programs and training programs. u Academic entrepreneurship education (EE) programs tend to focus on building knowledge and skills about or for the purpose of entrepreneurship. The academic 17 Entrepreneurship Education – Opportunities and Challenges for Universities in Visegrad Countries nature of EE means these programs target two groups in particular: secondary education students and higher education students, the latter including both graduate and undergraduate students enrolled in formal degree-granting programs. u Entrepreneurship training programs (ET), by contrast, tend to focus on building knowledge and skills, explicitly in preparation for starting or operating an enterprise. ET programs target a range of potential and practicing entrepreneurs who are not part of formal, degree-granting programs. Potential entrepreneurs targeted by ET programs can include, at one end of the range, vulnerable, unemployed, inactive individuals, or necessity-driven potential entrepreneurs, and at the other end of the range, highly skilled, innovation-led, or opportunistic potential entrepreneurs. Likewise, the range of practicing entrepreneurs runs from individuals owning informal, micro- and small enterprises all the way to highgrowth potential enterprise owners. Figure 1.1 gives a picture of ET programs classification according to program type and target audience. The research presented in our report focused mainly on entrepreneurial education for higher education students. However, in this context we should not ignore the entrepreneurial training of potential, innovation led entrepreneurs and also keep in mind practicing entrepreneurs, to whom the universities can offer specific, short-term trainings within the lifelong learning programs. Fig. 1.1: Classifying Entrepreneurship Education and Training Program Предпринимательское обучение Предпринимательское образование Безработный Среднее специальное специальное Потенциал предпринимателей Предприниматели Undergraduate Higher education students Practicing entrepreneurs Informal and microand small enterprise owners High growth potential enterprise owners Graduate Source: adapted fromValerio, Parton, Robb, 2014, p. 34 18 Entrepreneurship Education – Opportunities and Challenges for Universities in Visegrad Countries The 10 EEHE programs included in the World Bank research showed that the outcomes are largely related to entrepreneurial mindsets and capabilities and to a lesser extent entrepreneurial status and performance (see centre of Fig. 1.2). This is consistent with the profile of the target group for EEHE programs: students in tertiary education institutions who are typically preparing to enter the world of work and, thus, entrepreneurship. Fig 1.2 summarizes program characteristics, participants and context of 10 analysed programs. The pie graph in the middle illustrates the areas emphasized in the analysed programs. Fig. 1.2: Entrepreneurship Education—Higher Education Program characteristic: u u u Blend of theory and practice Emphasis on strategic planning and business plan development Mentoring and coaching offered Performance Status Mindset Capabilities Participants u u Context u Expressed interest in entrepreneurship Had prior work experience u Cultural openness to entrepreneurship On-campus support for program implementation Source: adapted fromValerio, Parton, Robb, 2014, p.71 Outlined below in Table 1.1 are outlined some of the key areas in terms of what, how, where and who to teach entrepreneurship, to maximize the learning of the participants. Tab. 1.1: What, how, where and who to teach entrepreneurship 19 Entrepreneurship Education – Opportunities and Challenges for Universities in Visegrad Countries What How u Enhancing entrepreneurial behaviours and u Interactive, learning centred pedagogies u Multi-disciplinary programs and projects mindsets u Building self-confidence, self-efficacy and u Case studies, games, simulations, business leadership plan competitions, etc. u Creativity, innovation and ability to think u Extensive use of visuals, digital tools and „out of the box“ to solve problems multimedia u Managing complexity and unpredictability u Learning by doing / hands-on u Basic business and financial skills“ u Experiential learning / labs (trial & error) „business literacy u Projects, internships with start-ups u Opportunity identification u Mentoring and coaching u How to build, finance and grow ventures u Interactions with entrepreneurs u Developing negotiation skills u Building relationships, networks, social capital STUDENTS & ENTREPRE NEURS Who Where u Students school administrators u Formal school systems (primary, secondary, u Teachers and tertiary): o At all levels o Across disciplines u Professors, trainers u Business people and leaders in other sectors u Entrepreneurs o Compulsory and elective courses u Mentors, coaches, advisors u Informal systems (after school and other) o Local schools, training institutions o Community centres, NGOs, government agencies, banks, etc. o Life-long learning Source: Volkmann et al., 2009, p.11 1.3 Who should teach entrepreneurship? Preparing today’s students for success and eventual leadership in the new global marketplace is the most important responsibility in education today… Entrepreneurship education is an important tool to achieving these objectives [and]…should be universally available to provide all students with opportunities to explore and fulfil their potential. Stephanie Bell-Rose, President, Goldman Sachs Foundation and Thomas W. Payzant, Harvard Graduate School of Education 20 Entrepreneurship Education – Opportunities and Challenges for Universities in Visegrad Countries A core objective of entrepreneurship education that differentiates it from typical business education is the challenge to generate and evaluate a wide variety of different ideas how to exploit a business opportunity. It must include skill building courses in negotiation, leadership, new product development, creative thinking and exposure to technological innovation. Entrepreneurship education, to be successful, demands entrepreneurial teachers. Retooling for successful youth entrepreneurship education means selecting and promoting teachers who are able to engage young learners in the necessary experiential activities. Teachers may need training in either or both the experiential pedagogy and the business content. The training curriculum may be nearly as extensive as the underlying curriculum for students. Certification of entrepreneurship teachers is an important step towards ensuring that minimum standards are met. Ultimately, teachers colleges will need to include entrepreneurship in the basic curriculum for aspiring educators, and they will need to partner on this topic with business and law schools. Effective entrepreneurial education requires that students have substantial hands-on experience so that they can learn how value is added to real ventures and thus be prepared to add value to their own ventures. Project-based, experiential learning should be widespread in entrepreneurial education and take many forms, such as the development of business plans; student business start-ups; consultation with practicing entrepreneurs; computer simulations; and behavioural simulations. Companies established by students (even fictional) should constitute an important part of entrepreneurship in education Traditional business programmes have come under increased criticism for failing to be relevant to the needs of today’s changing business environment. It is also quite common for entrepreneurship classroom situations to focus heavily on theory – either management theory, adjusted to advise entrepreneurship and small business – or entrepreneurship theory explaining the emergence of entrepreneurs and their personal traits. Those voicing this concern note that entrepreneurship programmes often educate “about” entrepreneurship rather than educate “for” entrepreneurship. 1.3.1How to teach entrepreneurship World Economic Forum report “Educating the Next Wave of Entrepreneurs” (Volkmann et al., 2009) conclusion on how to teach entrepreneurship are summarized in the following paragraphs: “Mainstream pedagogy will have to change, leading to the hands-on, project-based, multidisciplinary, non-linear approaches that entrepreneurship education requires. We need to move towards these higher-order thinking skills for all young people.” Entrepreneurship education cannot be based mainly on lectures, presentations and other traditional tools. No amount of book based learning on its own will allow the student to progress in this field. To acquire practical skills, companies established by pupils and students should constitute an important part of entrepreneurship in education 21 Entrepreneurship Education – Opportunities and Challenges for Universities in Visegrad Countries The curriculum for most successful youth entrepreneurship programmes includes many or all of the activities below, typically with clear learning objectives tied to textbook themes, usually with pre- and post-reflective sessions and evaluations, and frequently taking place outside the classroom: u Simulations and games. u Interactive teamwork and group activities. u Direct, action-oriented market research (students recognize market opportunities by observing and interviewing potential customers, identifying needs in their own communities). u Student buying and selling events, using real money (grants or loans from the school or programme). u Field trips to local businesses, especially entrepreneurial ventures. u Entrepreneurs or venture funders as guest speakers in class. u Business plan and other competitions, with business people as judges. u Student-run businesses, using real money (including in-school stores). Most successful programmes engage entrepreneurs and other business professionals as volunteer advisors, mentors, and coaches for the students. Mentors and coaches play a major role in incubating student businesses. Young entrepreneurs also need exposure to and support for furthering their education.” There exist good practice examples of study materials and guides for entrepreneurship courses at different levels of education. Most of them were created in the OECD countries in English. They can serve as an inspiration for potential authors of study materials in V4 countries, however they should be customized to specific conditions of respective countries. As some examples that are far of exhaustive can be listed here: u ILO Know about Business (KAB) modules (ILO, 2011), u Textbook “Entrepreneurship” (Bygrave, Zacharadikis, 2014) and complementary web pages, u Harvard Business School Core Curriculum: Entrepreneurship (Applegate, 2015), u MIT Entrepreneurship Courses (MIT, 2014). 1.3.2 Entrepreneurial vs. traditional approach in education Tab. 1.2 lists the differences in entrepreneurial vs. traditional approach in education: Tab 1.2: Differences in entrepreneurial vs. traditional approach in education Entrepreneurial approach: Traditional approach: ‡7UDLQLQJ³LQ´OHDUQLQJ ‡$OVRSHUVRQDOFRPSHWHQFHV ‡)OH[LEOHDGDSWDEOH ‡7UDLQLQJPDWHUial, cases ‡6WXGHQWRULHQWHG ‡(GXFDWLRQ³DERXW´ ‡.QRZOHGJHLQGLVFLSOLQHV ‡)L[HGVWXG\SODQ ‡7H[WERRNV ‡7HDFKHURULHQWHG 22 Entrepreneurship Education – Opportunities and Challenges for Universities in Visegrad Countries ‡*URXSSURFHVVLQWHUDFWLRQ ‡³&ODVKURRP´GLYHUVLW\ ‡0RUHFRDFKLQJUROHIRUWHDFKHU ‡3URMHFWLQWHUGLVFLSOLQDry ‡&ORVHWRUHDOOLIHDQGEXVLQHVV ‡$FWLRQRULHQWHG ‡&ODVVLQGLYLGXDODFWLYLW\ ‡&ODVVURRPKRPRJHQHRXV ‡/HFWXULQJ ‡6XEMHFWVGLVFLSOLQHV ‡&ORVHWRUHVHDUFKDFDGHPLD ‡6WXG\WKHRU\RULHQWHG Source: OECD, 2008 Among the reasons for SME entrepreneurs’ lack of interest in university programmes are their cost, their perceived ineffectiveness, and the entrepreneurs’ inability to leave their businesses to attend them. Of these, it is the perceived ineffectiveness that should cause some concern among the HEIs, as it might be due to a fundamental mismatch between what is offered by higher education institutions and what is actually needed by SME entrepreneurs. Tab 1.3: University offerings vs. entrepreneurs´ learning needs University / Business School learning focus Entrepreneurs’ learning needs Critical judgement after analysing large amounts of information Gut-feel decision making with limited information Understanding and recalling the information itself Understanding the values of those who transmit/filter information Assuming commonality of goals Recognising the widely varied goals of different stakeholders Seeking (impersonally) to verify the absolute Making decisions on the basis of judgement of truth by study of information trust & competence of people Understanding the basic principles of the society Seeking to apply and adjust in practice to the in the metaphysical sense basic principles of society Seeking the correct answer, with (enough) time to do it Developing the most appropriate solution (often) under time pressure Learning in the classroom Learning while & Gleaning information from experts and through doing authoritative sources for the sake of its genuineness Gleaning information from any and everywhere Evaluation through written assessment & assessing its practical usefulness Evaluation through judgement of people and events through direct feedback Success in learning measured by passing of knowledge-based examinations Success in learning measured by solving problems, learning from failures and providing useful products and services to society Source: OECD 2008, p.53 1.3.3Measuring impact of entrepreneurial education The biggest challenge facing the field is a lack of commonly accepted metrics for success and protocols for conducting the necessary evaluations. Principal levels of impact measures of higher education entrepreneurship activities discussed above are summarized in Fig. 1.3: Fig. 1.3: Measuring impact of entrepreneurship education 23 Entrepreneurship Education – Opportunities and Challenges for Universities in Visegrad Countries Level 1 Individual participant Entrepreneurial orientation / intentions and possible cognitive antecedents (attitudes and beliefs held towards entrepreneurship and self employment) Level 2 Entrepreneurship Education Course / Programme Student enrolments Reach of programme across university (participation of departments, participation of students / junior or senior faculty members) Level 3 University-wide Output Measures direct & indirect Number of created new business and jobs, Patents, technology licences (assignments, executed licenses, royalties ) Source: Volkmann et al., 2009 1.4 Entrepreneurship education in Central, Eastern and Southeastern Europe The specific section of the OECD study is devoted to the entrepreneurship education in Central, Eastern and Southeastern Europe, relevant to V4 countries. It finds that the majority of entrepreneurship professors are traditional academics. Most entrepreneurship courses are still taught by the lecture method. Interactive teaching methods such as role playing, case study discussions and simulations are used less frequently. Case studies and other interactive pedagogy are underutilised, as is the inclusion of business people and entrepreneurs in the classroom. Universities made little use of former entrepreneurs in teaching. This is markedly different from the experiences of some US business schools, where practitioners and former entrepreneurs are well represented in the classroom – as teachers, guest lecturers, or executives in residence who counsel the faculty, students, and the administration about entrepreneurship curricular issues. Teachers are important role models. A positive attitude among young people in schools toward entrepreneurship, innovation and reorientation requires that teachers have knowledge of this. It is therefore important to focus on entrepreneurship in teacher training, and provide 24 Entrepreneurship Education – Opportunities and Challenges for Universities in Visegrad Countries courses in competence development to working teachers. EC provides The Guide for Educators (European Commission, 2014). 1.5 Entrepreneurship education in the EU and other related documents Entrepreneurship and entrepreneurship education is already high on the agenda in most EU Member States. A wide variety of programmes and activities exist across Europe. However, there is a need of promoting these initiatives more systematically. The European Commission is committed to promoting education for entrepreneurship at all levels, from primary school to university and beyond. Its focus on entrepreneurship and entrepreneurship education is reflected in a series of strategic documents (European Commission 2006, 2012, 2013, 2015). The additional guidance to those issues can be found in the OECD studies “Entrepreneurship and Higher Education” (OECD 2008) and “Entrepreneurship at a Glance 2015” (OECD, 2015). Tab 1.4: Opportunities and challenges to entrepreneurship education in Central, Eastern and Southeastern Europe Dimensions Issue Implications Opportunities Young population: need for new venture creation (opportunity vs. need). Start early, with foundation skills in creativity techniques. Courses in opportunity recognition and evaluation are also important. Leverage contacts with business companies by bringing in guest speakers to share experiences. In addition to new ventures in consumer goods, technology-based ventures would be an excellent focus. Need for catch-up technologically. Economic progress: raising standard of living. Excellent math and engineering background. Flow of foreign investments. Challenges Heritage of state ownership: privatization creates opportunities Education should target well-established companies and new ventures alike. Incentives are lacking. Key role of entrepreneurial education is to create momentum for change; development starts in small steps, as others follow and momentum grows. Capital/funding. Engage local entrepreneurs as role models and source of feedback and learning. Lack of teacher - Retooling Create joint programs between science / existing faculty engineering and entrepreneurship. Joint appointments and faculty rotations might be important ways to achieve it. 25 Entrepreneurship Education – Opportunities and Challenges for Universities in Visegrad Countries Entrepreneurial culture is lacking – develop role models, case studies, etc. Academic institutions are theoretical / abstract. How to get started. Linking science / engineering with business programmes. Source: OECD 2008, p. 182 The Commission’s Communication on Fostering entrepreneurial mindsets through education and learning (European Commission, 2006b) indicates the need to intensify actions – both on the union and member countries level – focused on education for the entrepreneurship. Entrepreneurship is one of key competences to be promoted by lifelong learning; it supports self-fulfilment, social integration and active citizen attitude, and also ability of selfemployment, as defined in the Key competences for lifelong learning (European Commission, 2006a). 1.6Recommended actions for academic institutions To promote entrepreneurship we must create a better culture for innovation and creativity, and to accomplish this, we must focus on our young. Children and young people must gain confidence in their own creative powers and the ability to see and use local resources as the basis for developing businesses and employment. They must be given the opportunity to see and experience how creativity, personal confidence, drive and the ability to cooperate are vital underpinnings of entrepreneurship and also the basis for being constructive, creative and active at school and home, and at work and play. Strategic Plan, Norwegian Government, 2004-2008 The Commission’s Communication on “Fostering entrepreneurial mindsets through education and learning“ indicates the need to intensify actions – both on the general-union level and particular member countries – focused on education for the entrepreneurship. The entrepreneurship seems to be the ability to apply ideas in life. This includes such actions as: creativity, innovation, ability to take risk, planning, decision-making, and management. It is a foundation of social and commercial actions. Entrepreneurship understood in this way is one of key competences in accordance with lifelong learning; supports self-fulfilment, social integration and active citizen attitude, and also ability of self-employment. Entrepreneurship, as it was mentioned above, should be included directly in curricula, since to get familiar with the principles of the working world and entrepreneurship supports the proper understanding of the role, which is fulfilled by entrepreneurship in society. The document underlines the special role of education of people over 14 years of age. In most 26 Entrepreneurship Education – Opportunities and Challenges for Universities in Visegrad Countries European countries, curricula include the entrepreneurship; however, the realization of the goals is not of practical nature. The practical experiences are a standard element of curricula in only small number of the EU countries. An interesting way to support the educational initiative is active teaching methods, e.g. company management simulations. The Communication proposes a number of recommendations for concrete action, such as: u National and regional authorities should establish cooperation between different departments, leading to developing a strategy covering all stages of education. u Curricula for schools at all levels should explicitly include entrepreneurship as an objective of education. u Schools should be given practical support and incentives to encourage take-up of entrepreneurship programmes. u Special attention should be given to training teachers and to raising the awareness of heads of schools. u Cooperation between educational establishments and the local community, especially businesses, should be encouraged. u The use of student mini-companies at school should be further promoted. u Higher education institutions should integrate entrepreneurship across different courses, notably within scientific and technical studies. u Public authorities’ support is especially needed to provide high-level training for teachers and to develop networks that can share good practice. WEF study (Volkmann et al., 2009) specifies a number of key success factors that enable effective entrepreneurship education: 1. 2. 3. 4. 6. The entrepreneurial ecosystem, Developing effective educators, Curriculum development, Outreach (engagement of business), 5. Advancing innovation, Sustainable funding. Even when most initiatives are led by individual champions, whether inside or outside the academic institution, a commitment is also needed from the highest levels of the school or university. The recommendations of this study are as follows: Transform the Educational System 1. Engage schools and university leaders in actions to gain their commitment to reshaping the institutional paradigm: institutional vision, policies and outcomes, structures, values and rewards. Build the Entrepreneurial Ecosystem 1. Encourage all faculties/disciplines to develop opportunities for students at every level to experience entrepreneurship, integrate entrepreneurship into the curriculum and build towards a multidisciplinary learning environment: 27 Entrepreneurship Education – Opportunities and Challenges for Universities in Visegrad Countries u Increase the number of schools offering entrepreneurship courses, programmes and activities. u Augment the number entrepreneurship courses, programmes and activities and make them available to a broader group of students. u Make entrepreneurship a required course. u Integrate entrepreneurship across other disciplines. u Encourage entrepreneurship across disciplines, particularly in science and technology. u Build projects and programmes across disciplines. 2. Encourage the use of interactive teaching methods: u Promote the application of “learning by doing” through project-based learning, internships and consulting. u Leverage the uses of case studies for discussion based learning. u Develop the proper incentives, assessment, rewards and recognition to encourage educators to try these approaches. u Involve entrepreneurs and companies in entrepreneurship courses and activities. 3. Broaden and build a strong pipeline of entrepreneurship professors and teachers: u Hire more professors and teachers fully dedicated to entrepreneurship. u Recruit professors and teachers who have entrepreneurship experience. u Support workshops and training programmes for teachers. u Provide training for entrepreneurs, business people and other practitioners to become effective educators. u Develop appropriate incentives and celebrate successes. u Review regulations on the participation of entrepreneurs, business people and others in teaching activities. u Encourage the development of specialized entrepreneurship doctoral programmes. 4. Encourage the sharing of best practices among teachers and across institutions and countries. 5. Support the development of course materials (books, cases, online games, videos, etc.), not only for entrepreneurship per se, but also for leadership and personal development. 6. Engage a diverse body of students in existing offerings and provide support and facilities allowing students to develop their own initiatives, through clubs, laboratories, etc. 7. Reach out to and engage the business community, public sector and other players in the ecosystem. 8. Encourage the use of alumni, entrepreneurs and other practitioners in the classroom. 9. Facilitate spin-outs from technical and scientific institutions: u Advance core research and innovation. u Accelerate the application of science and technology to market through technology transfer offices and/or other mechanisms. u Establish stronger links between academia, business and entrepreneurs. 28 Entrepreneurship Education – Opportunities and Challenges for Universities in Visegrad Countries u Facilitate the provision of direct training and/or support programmes for entrepreneurs in the process of starting companies. u Provide the appropriate training for staff, particularly in the area of technology transfer. u Ensure the time (sabbaticals, if necessary) for faculty to engage in entrepreneurial activities. 29 Entrepreneurship Education – Opportunities and Challenges for Universities in Visegrad Countries REFERENCES Chapter 1 Acs, Z. J., S. Desai, & J. Hessels. (2008). Entrepreneurship, Economic Development and Institutions. Small Business Economics. 31: 219–34. 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