Discussions and Research papers

The Meaning and Role of Entrepreneurship Education for School Students in

the Global Economy

Christina Wai Mui YU The Hong Kong Institute of Education, China

Abstract

This paper aims to clarify the meaning and role of entrepreneurship educa- tion (EE) from a competence-based perspective in order to prepare school students to work and live better in the global economy. After a critical review on entrepreneurship and EE, it was found that there is a shift from a narrow business-oriented process to a generic competence-driven process in defin- ing entrepreneurship. The ultimate roles and goals of EE for school students cover both the possession of (1) entrepreneurship for self-employment and economic growth, and (2) enterprising skills for individual life growth. More importantly, on top of the traditional entrepreneurial competencies and capa- bilities, both ethical and social competencies are suggested in EE in order to balance individual and public interest.

Key Words: Entrepreneurship Education, Enterprise Education, Entrepreneur- ial Competencies/Capacities, School Students, Global Economy

Introduction

Entrepreneurship Education (EE) has drawn an increasing interest and made remarkable progress to become a field of academic study over the past four decades (Garaven & O’Cineide, 1994; Gibb, 1993 & 2011; Hytti & O’Gorman, 2004; Jamieson, 1984; Mwasalwiba, 2010; Pittaway & Cope, 2007; Vesper & Gartner, 1997). EE stakeholders believe that learners are able to cope with chal- lenging jobs or start new business ventures (self-employment) after receiving EE (Gibb, 1993; Hytti & O’Gorman, 2004; Jack & Anderson, 1999). Policy- makers can then release their burdens on meeting the needs in job market and economic development (Kirby, 2004; Matley, 2005; McKeown, Millman,

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Sursani, Smith & Martin, 2006; McMullan & Long, 1987; Rae, 2010). Moreover, academicians are more motivated to invent programs and activities for the building of an enterprising society (Mwasalwiba, 2010). Therefore, EE is one of the possible key drivers of sustained social development and economic re- covery, which draws an increasing interest from multi-stakeholders in public, private, academia and non-profit sectors (Volkmann et al., 2009). The current movement of EE is becoming ‘a mainstream education com- ponent’ across disciplines at university and school levels in many countries (Cherwitz & Sullivan, 2002; Gibb, 2011; Mclarty, Highley & Alderson, 2010; Volkmann et al., 2009). For example, many entrepreneurship incubation cen- tres are being set up at universities (European Commission, 2008) and EE is a key consensus area for development in Asia-Pacific countries (United Nations Educational, Science and Cultural Organisation, Asia-Pacific Programme of Educational Innovation for Development, 2013). EE appeals to all students no matter what career paths they will have (European Commission, 2008; Gibb, 2002, 2007 & 2011; Mclarty, Highley & Alderson, 2010). However, EE is facing many challenges including a confusion of the defi- nition, and a lack of evidence and empirical study on its impacts on trans- forming the graduates to be entrepreneurs, despite EE has impacted graduates’ intentionality. Moreover, at policy making level, there is no concrete policy on how to spread EE to mainstream education, even though EE is said to be needed by all students. Gibb (2011) also highlighted some other challenges EE has had such as the intra-disciplinary challenge, assessment, and strategic and operational capacity building. Yu (2013) shared strategies for capacity build- ing to advance EE at individual, institutional and societal levels. Amongst the existing challenges in EE, clarifying the meaning and role of EE for imple- mentation is most crucial since different understandings of EE would lead to different objectives, contents, target audiences, teaching methods, assessment indicators and resource implications (Mwasalwiba, 2010). For example, EE is mainly understood as a promising way to lower unemployment rate in Main- land China when it faces more than one million of college graduates each year. Differently, some western countries may view EE as an individual empower- ment to meet the ever-changing needs of employment and life. In such a way, the purpose of EE can range from covering either a narrow focus on business venturing (Volkmann et al., 2009) or a wide range of enterprising ‘soft’ skills (Davies, 2002). Therefore, in this paper, a literature review on the meaning of entrepre- neurship and EE as well as a discussion on the significant role of EE to today’s school students will be critically shown in the first three sessions. Afterwards, a detailed review and discussion on the entrepreneurial competencies and ca- pabilities for school students, including those traditional and neglected ones

The Role of Entrepreneurship Education for Students in the Global Economy 9

will be presented. Finally, the acquisition of entrepreneurial competencies and capacities will be proposed.

Entrepreneurship

Scheumpeter (1934) suggested a classical function which constitutes entrepre- neurship concept as ‘innovation’ – carrying out changes through creation of new products, new production methods, new markets and new forms of or- ganization. Wealth is then created when such innovation exists. Furthermore, Drucker (2006) claimed that true entrepreneurs seek to minimize risk and ex- ploit change to achieve purposeful innovation. Entrepreneurship is therefore a process which involves the creation of an innovative economic organization for the purpose of gain or growth under condition of risk and uncertainty (Doll- inger, 2001). Entrepreneurship refers to business-oriented activities that closely relates to the intersections of creativity, innovation, management, opportunity seeking, risk taking and striking for growth (Vanderwerf & Brush, 1989). However, Shefsky refers to entrepreneur as someone who is able to identify opportunity, take up the opportunity in time and manage the opportunity to function as a success (Singer, 1995). It symbolises that an entrepreneur is not necessarily referring to someone who is associated with business, but could also be referring to those who possess enterprising attributes to set up and run a specific task because their psychological characteristics are basically identi- cal (Caird & Johnson, 1988; Gibb, 1987). Hence, the Commission of the Euro- pean Communities (CEC 2005, p. 4) defined entrepreneurship as:

… an individual’s ability to turn ideas into action. It includes creativity, in- novation and risk taking, as well as the ability to plan and manage projects in order to achieve objectives. This supports everyone in day-to-day life at home and in society, makes employees more aware of the context of their work and better able to seize opportunities, and provides a foundation for entrepreneurs establishing a social or commercial activity.

According to the definition of entrepreneurship given by CEC (2005), entre- preneurship no longer refers to business-oriented activities solely but also to individual’s ability of actualizing his/her own idea through the same cross- ings of creativity, innovation, risk taking, management, opportunity seeking and striking for sustainable development in different aspects of life. As can be seen, there is a shift from a narrow business-oriented process for economic growth to a generic competence-driven process for individual growth in defining en- trepreneurship. Such a shift not only draws a significant impact on under- standing the nature and use of entrepreneurship, but also on EE.

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Entrepreneurship Education (EE)

The terms ‘entrepreneurship education’ and ‘enterprise education’ are used interchangeably to describe EE in a wide range of programs, courses and or initiatives found at varied educational levels. Gibb (1993) has stated that the two terms are conceptually identical but contextually different. Garavan and O’Cinneide (1994) have further distinguished the two, explaining that entre- preneurship education aims to create an attitude of self-reliance, while enter- prise education seeks to create opportunity-seeking individuals. In fact, no matter what exactly the terms is used, EE covers the aspects of both entre- preneurship and enterprising behaviour (Seikkula-Leino, Ruskovaara, Ika- valko, Mattila, & Rytkola, 2010). Moreover, EE not only applies to business ventures but also more broadly to life (Bridge, Hegarty, & Porter, 2010; Gibb, 2011). Many authors have suggested that entrepreneurship education which is more economic focused, fits advanced students in university, while enterprise education which is more generic in nature, suits younger students in basic schooling (e.g., Jones & Iredale, 2010; Leffler, 2009; Pepin, 2012). Schools and universities should prepare young people to work in a dynamic, rapidly chang- ing entrepreneurial and global environment. Therefore, providing an analyti- cal perspective on the meaning and role of EE for school students in the global economy context is needed.

Role of EE to School Students

Education systems have traditionally focused on providing basic skills and ensuring individuals can secure future jobs. Meanwhile globalization has changed the nature of work, including (1) the relocation of offices, factories and staff to countries where operation costs are cheaper, (2) the rapid tech- nological development towards labour-saving production and business pro- cesses, (3) the lower cost of travel to encourage job mobility and (4) an advent of “virtual” companies outsourced to freelancers or offshore workers (Fien, Maclean & Park, 2009; Velde, 2009). Amidst highly uncertain economic and labour market conditions, employers are likely to be cautious and hesitant about expanding their enterprises and hiring new employees, particularly in- experienced school students. Even when school students have a more stable and secured job, they may only be able to barely sustain their living and even live in poor households. The rise of in-work poverty comes to be the most dramatic outcomes in industrialized countries over the past 30 years due to globalization and technological advancements (Hellier & Chusseau, 2013). Under such circumstances, traditional education seems no longer able to help employment and poverty in today’s global economy. Contrastingly, EE is in-

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tended to develop a culture of enterprise among a younger generation within the society that emphasizes on the value of competitiveness, innovation and creativity (Robertson & Collins, 2003). EE can play a significant role in em- powering school students to possess entrepreneurial competencies and capa- bilities to meet challenges in employment and or self-employment. Of course, life planning education and career counselling should go alongside with EE through a concerted effort of stakeholders in the community too. Moreover, investment in human capital not only enables individuals to increase their future earnings and enhance their experience in the labour market, but also enables individuals to become better citizens on top of being better workers (Lister, 2003). Schools should strive to make students become knowledgeable about contemporary issues, be able to work independently and collaborate with others, and possess personal dispositions that value cultural diversity (Learning & Teaching Scotland, 2002). They are critical for school students to become active citizens regardless of the economic background they have had and the career path they are to take (Deuchar, 2008). For example, those individuals who are in poverty could be empowered by EE to regain their economic and social dignity; while those individuals who are rich could be educated by EE to see how they can enjoy their life uniquely through self- employment. If every individual respects and cares about others as well as the global issues, a more enjoyable life is achievable for everyone. Erkkila (2000), on her comparative study between United States, United Kingdom and Fin- land, suggested that the belief of having both societal and individual improve- ments always supports the provision of EE. There are two main features of EE to school students: (1) developing those personal attributes and transferable generic skills that form the basis of an entrepreneurial mind-set and behaviour; (b) raising learners’ awareness of self-employment and entrepreneurship as possible career options (European Commission, 2009). These understandings incorporate both the know-how and know-why knowledge and skills as well as an emphasis on the learning process of entrepreneurship. However, the achievement of EE depends very much on what entrepreneurial competencies and capabilities are identified for the learning process.

Entrepreneurial Competencies and Capabilities for School Students

Entrepreneurs need both entrepreneurial and managerial competencies to support the different stages and contexts of business growth (Capaldo, Ian- doli & Ponsiglione, 2004; Hayton & McEvoy, 2006). Entrepreneurial compe- tence, therefore, encompasses not only behavioural competence (knowledge

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of how to behave) but also cognitive competence (work-related knowledge and understanding) and functional competence (job-related skills, know- how) (Delamare Le Deist & Winterton, 2005; Lans, Hulsink, Baert & Mulder, 2008). Moreover, competence-related motivational attitudes like self-efficacy and self-confidence should be regarded as important conditions for entrepre- neurial competence (Lans et al., 2008). Indeed, many authors have agreed on such an integrated view of competence in entrepreneurship (e.g. Hayton & Kelley, 2006; Markman, 2007). Lum (2009) further noted that the possession of skills and competencies can lead learners to underestimate the capacities required in the real world, necessitating that broader and more concrete learning content should be pro- vided to them. Hence, developing individuals’ capacity of knowing how to seek for opportunities (Baron & Ensley, 2006), that is ‘be enterprising’ (enterprise capacity), may be more important particularly in view of the need to meet the ever-changing demands through lifelong learning in today’s knowledge-based society. The European Commission (2006) named such enterprise capabili- ties as ‘new basic skills’ for school students in order to improve international competitiveness. Mclarty, Highley and Alderson (2010, p. 33) echoed and de- fined enterprise capability in this way: ‘Enterprise capability [includes] innova- tion, creativity, risk-management and risk-taking, a can-do attitude and the drive to make things happen’. This concept of enterprise capability provides a clear guidance for the nurturing of active citizens to enable them to develop a mind-set of ‘you can if you want to’ (Mclarty, Highley & Alderson, 2010). Perhaps EE can indeed give school students courage to strive for excellence in their pursuit of dreams with a highly optimistic attitude. However, it may also possibly encourage young people to do whatever they want without a concern of others. ‘Be considerate before you act’ and “you can if you want” should go hand-in-hand in developing an enterprising mind-set for school students. Pepin (2012) pointed out that there are some negative effects of entrepre- neurship on school students such as individualism, marginality or difficulty dealing with authority, which have been inadequately addressed in education. Also, Caird (1990) indicated that the strong motivation of entrepreneurs is governed by a high need for achievement, power and autonomy, and a low need for affiliation. It is reasonable to expect that entrepreneurs who have confidence in their ability to control the events would be more motivated to actively seek new business opportunities (Lee & Tsang, 2001). Hence, in re- ality, it is quite true that most entrepreneurs work in isolation, which may easily lead them unwilling to listen to others and act opportunistically and ruthlessly in their will to succeed. An emphasis of opportunity seeking may possibly lead someone to become an opportunist without a proper concern of others. Hence, it is necessary to seek for a balance between the individual and

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societal interests in the provision of EE in order to protect and nurture school students in a healthy and positive development. Therefore, ethical and social competencies and capabilities are called upon in EE.

The Need of Ethical and Social Competence in EE

Ethical competence refers to the possession of certain personal and profes- sional values that can underpin the moral reasoning, decision making and ac- tion taking on specific events (CEC, 2005). Yu and Man (2009) found that the desirability for entrepreneurship lies in an attitudinal change in entre- preneurial characteristics, where more in-depth conceptual understanding of entrepreneurship is recommended. To strengthen individual participants’ conceptual understanding of entrepreneurship and attitudinal change, the advancement of individual character building can be viewed as a condition for enabling individuals to engage in the ‘process of learning and adapting to change’ properly. As such, displaying an understanding of the importance of cultivating strong ethical character development through the business-run- ning (learning) process of entrepreneurship is crucial. In defining key competence for all students, Kennedy (2005) pointed out that key competence should include the full range of skills and competencies relevant to one’s life span instead of employment solely. Education should en- able young people to become local and global citizens. Self-interest particu- larly takes priority in an individuals’ life in today’s increasingly fragmented world, however it does not mean that we can ignore needs of others and do whatever we want from local and/or global citizenship points of view (Ken- nedy, 2005). In response to the breakdown of social principles, values and po- litical engagement among young people, there has been a renewed interest in promoting ethics and moral education in citizenship (Deuchar, 2006). Ac- cording to Kennedy (2005, p. 44), “Young citizens must first be taught to value values”, it is not to indoctrinate but to allow young local and global citizens to distinguish between right and wrong, to recognize it in the behaviour of others and to take appropriate action, although it may not be easy to find a common value in the 21st century. In order to protect young people from over-dressed individualism, we need to educate them in striking a good balance between personal and common interest in decision makings throughout their life. EE possibly provides a platform to help young people to value values as a cen- tral part of the life experience. Deuchar (2006 & 2007) explored the views of teachers and students on enterprise and citizenship education in ten primary schools and seven secondary schools in Scotland and found that teachers and students were increasingly focused more on “enterprise” as being framed upon a model of social renewal and civic responsibility within a global and moral

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framework. The teachers recognised the need for rights as well as responsibili- ties, ambition as well as tolerance and wealth creation as well as charity in car- rying out EE (Deuchar, 2007). Furthermore, in order to address the societal needs in business running instead of profit-making solely, social responsibility should be highly empha- sised in EE for school students since democratic citizenship is not only about benefits but also responsibilities. The purpose of running a business is to ben- efit not only the individual but also society. It is important to lead school stu- dents to engage in a wider learning context of social interaction and help them to become more aware of other’s concerns and to better understand the world around them. This enables school students to address and respond to the pub- lic concerns more. Enabling young people to work on social entrepreneurship is a possible way to strike a balance between individual and collective needs. Social entrepreneurship in here is defined as a business set up to benefit society (someone who is enterprising to benefit society) (Young, 1983). For example, in Quebec, Canada, school entrepreneurial activities must stem from and cater for the needs of the local community (Pelletier, 2007). School students should be provided with relevant concepts and knowledge on social responsibility, and be guided to create some sort of action taken to demonstrate their con- cern for social responsibility. For instance, school students may also consider producing some products and donating a certain percent of their total profit (if any was made) to a chosen minority or social enterprise. Deuchar (2008, p. 30) pointed out that one of the key performance indicators of enterprise and citizenship education is when school students are able to view enterprise in a social sense and enterprising individuals as someone not limited in business or academic success but “anyone who could be enterprising in their response to community issues if they believed in the need for justice, truth and honesty”. In fact, social interaction with various parties plays a significant role in the learn- ing process of EE (Yu & Man, 2009). Thus, promoting social interaction and collaboration with various stakeholders to sustain individual and collective development in EE is highly desirable.

Acquisition of Entrepreneurial Competencies and Capabilities

Sandberg (1994) argued that competence is constituted by a worker’s under- standing of work by drawing on his interpretative findings. Gerber and Velde (1996) further highlighted the relational aspect in understanding competence. Both context and work relationships play a role in the embedding of compe- tence. These arguments shift the concept of competence from a narrow to a broader view that draws on three significant implications: first, learner is the

The Role of Entrepreneurship Education for Students in the Global Economy 15

departure point for the acquisition of competence instead of the competencies themselves; second, competence is better described as a combination of core components that are interdependent; third, competence needs to be developed through the enrichment of practical experience that benefits learners’ holistic development. Also, the acquisition of competence is subject to the context, the situation and the experience of the individual who works. Entrepreneurship depends upon generic forms of understanding, which require theory be put into real practice in shifting its focus from venture creation to the seeking of opportunities and innovation (Lans et al., 2008). In such a way, EE is no longer able to teach knowledge and skills without a consideration of their transfer- ability across contexts and situations. Hence, any entrepreneurship program should be led by ‘creativity, infor- mality, curiosity, emotion and its application to personal and real-world prob- lems and opportunities’ (Penaluna & Penaluna, 2008) that takes place outside of a formal classroom setting. Moreover, entrepreneurship programs need to incorporate active learning elements such as business simulation, workshops, counselling and mentoring, study visits, business set-ups, games and competi- tions (Hytti & O’Gorman, 2004). Lewis and Massey (2003) and Jones (2010) have also argued that student-centred learning should form the basis of any entrepreneurship program, with students acting as agents who are able to learn and apply their knowledge onto other contexts. EE also depends on hands-on practice and social interaction with others, such as entrepreneurs, throughout the learning process (Man & Yu, 2007; Yu & Man, 2009). An ecosystem for possible collaboration amongst business, education and community sectors needs to be built up for enhancing the effectiveness of EE too. More importantly, in-depth reflection throughout the process of entre- preneurship learning should be emphasized (Pepin, 2012) because reflection is a pre-condition in becoming aware of the lack of competence (Korthager 1999, p. 192). Furthermore, the development of the necessary and appropriate type of entrepreneurial competencies and capacities requires a long-term and comprehensive transformation of education systems and practices at all levels. Relevant changes in policy, curriculum development, teaching and learning, assessment, teacher education, career counselling, work-based projects and internships are considered necessary.

Conclusion and Recommendations

The definition of entrepreneurship shifts from a narrow business-oriented process for economic growth to a generic competence-driven process for indi- vidual growth, which draws a significant impact on EE for school students - a learning process for a possession of entrepreneurship for employment as an

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option and enterprising skills for life. Young people are facing huge challenges in the global economy, EE instils an entrepreneurial spirit to young people and plays a key role in empowering them to survive better in the future regardless of the career and life path to be taken. Hence, entrepreneurial competencies and capabilities are suggested to be embedded in the education system as ‘es- sential and/or core’ elements. In order to create a more harmonious global community for the future, ethical and social competence also need to be em- phasized in EE. Cultivating school students to value values, build ethical char- acter, balance self and public interest, take up social responsibility, interact and collaborate with different people through authentic learning process are strongly recommended. Finally, more thorough studies on policy making and implementation of EE at all school levels are needed.

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