1. Entrepreneurship Education and Social Empowerment: Widening Participation for Self- Sufficiency Dr. Bill Gleave School of Entrepreneurship and Business

2. Overview of Presentation Conceptual issues South-Essex – the socio-economic framework and entrepreneurship gap. Entrepreneurship education and its links to social and economic regeneration. Widening participation in South-Essex – some key issues.

3. Why Entrepreneurship? The relationship between entrepreneurship and economic growth is complex and indirect. However, a substantial body of research literature exists suggesting that entrepreneurship…. Increases diversity, making a region more conducive to innovation. Simulates more competition leading to superior economic performance. Creates a higher stock of jobs in the economy, particularly in the longer run. Has demonstrational and motivational effects within the labour market. Is an important vehicle for social empowerment and change.

4. Categories of Business Start-ups Self-Employment Electricians Painters Independent consultants Small Business Owners Franchises Retail outlets Life-style enterprises Entrepreneurs Creators of new possibilities Identifiers of potential opportunities

5. Multidimensional Attributes of the Entrepreneur 1)The person who assumes the risk associated with uncertainty. 2)The supplier of financial capital. 3)An innovator. 4)A decision-maker. 5)An industrial leader. 6)A manager. 7)A coordinator of economic resources. 8)The owner of an enterprise. 9)An employer of factors of production. 10)A contractor. 11)An allocator of resources. 12)The person who realizes the start-up of a new business. (Wennekers & Thurik 1999) Which dimensions can be learned?

6. Thames Gateway South-Essex

7. Three Pillars of an Entrepreneurial Culture in South-Essex Positive attitudes of key stakeholders towards entrepreneurship as a vehicle for new employment and wealth creation Competitive local socio-economic structure Supportive and enabling public policy framework

8. The University/Region Value Added Management Process

9. The Impact of Entrepreneurship on Economic Performance and Individual Behaviour Persistence of Regional New Firm Formation Activity Regional Economic Development Employment growth Labour productivity Change in gross value added Individual Behaviour Start a business Propensity to start a business (nascent entrepreneurship)

10. Spatial Differences in Average VAT Registration Rates and Educational Attainment to NVQ4+ in South-Essex (2001-2005) Area % economically active people with NVQ4+ Rank LQ (UK) LQ (East) No. of VAT registrations per 10,000 adults Rank LQ (UK) LQ (East) UK28.11--40.46-- East23.720.84-43.131.06- Essex County21.630.770.9144.821.111.04 Castle Point13.980.490.5939.570.980.92 Basildon16.860.600.7141.651.030.97 Rochford18.450.650.7842.541.050.99 Southend21.340.760.9046.411.151.08 Thurrock15.070.530.6335.180.870.81 Source: Local Area Labour Force Survey (2003)

11. Business Churn in South-Essex

12. Socio-economic Structure of South-Essex – SWOT analysis Strengths Strong specialisation in transport and logistics activities in Thurrock Logistics academy in Thurrock Evidence that certain manufacturing activities remain competitive compared to recent national trends Weaknesses Low skills, low wage equilibrium Lowest levels of educational attainment to NVQ 4+ in East of England University participation only 35% High levels of business exits particularly amongst k-sector activities High unemployment Low representation of creative industry and knowledge-based sectors Opportunities Growing prominence of health and social work activities Creation of a cultural hub in Southend including University of Essex campus Potential gaps within the value-chain particularly within environmental technology sectors Employer demand for transferable skills Threats Proximity to London causing brain-drain effect, particularly from Thurrock Continued growth and specialisation of low- skill, low value-added activities Continued reliance on technologies imported from outside region

13. Traditional Economy to Enterprise Economy Enterprise knowledge and awareness Entrepreneurial skills Appreciation of innovation and competitiveness COMPETITIVE ECONOMY

14. Teaching Enterprise Skills (1) We can certainly study entrepreneurship but can it be taught? Entrepreneurship cannot be taught, but can only be facilitated through a holistic strategy. Entrepreneurship is first and foremost a mindset. An entrepreneurs mission is the driver that seeks to connect with emergent opportunities in todays highly chaotic and disruptive external environment.

15. Teaching Enterprise Skills (2) Methods include: Entrepreneurship education – using business start-up simulation – experiential learning Intrapreneurship education – using corporate project simulation – experiential learning Theoretical/empirical entrepreneurship education – understanding of the role of enterprise, entrepreneurship and innovation in the economy.

16. University Learning FocusEntrepreneurs Learning Needs Critical judgement after analysing large amount of information Instinctive 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 truth by study of information Making decisions on the basis of judgement and trust and competence of people Understanding the basic principles of society in a metaphysical sense Seeking to apply and adjust in practice to the 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 class roomLearning while and through doing Gleaning information from experts and authoritative sources Gleaning information from everywhere and assessing its practical usefulness Evaluation through written assessment 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. University Offerings vs. Entrepreneurs Learning Needs

17. The School of Entrepreneurship and Business – University of Essex (1) New department offering a range of MSc programmes linking entrepreneurship to more traditional business related disciplines e.g. international business, marketing. 5 new undergraduate programmes starting in October 2007. Sponsored PhD research undertaken Research derived CPD programmes on topics such as building and sustaining networks, creativity and innovation. Developed with the intention of contributing to the culture of enterprise and entrepreneurship within the region.

18. The School of Entrepreneurship and Business – University of Essex (2) Strategic and philosophical approach: Creation of international networks with university departments and hi-tech firms in China and India. Promotion of entrepreneurship and innovation amongst local business networks. Business incubator centre Coordinator of global and local linkages delivering real economic benefits.

19. ENTREPRENEURSHIP Entrepreneurship – An Inclusive Subject Economics Geography International Business Marketing Psychology Arts and Creativity

20. The Challenge of the Creative Economy Principle Component Analysis VariableLoadings % educated to NVQ4+.857 Creative industry LQ.797 VAT registrations (k-sector).620 Gross annual income.865 Composite index comprised of 4 variables: Average VAT registrations per 10,000 adult population (2000-2004) Creative industries location quotient (2004) Average gross annual income (2000- 2003) Average % of workforce educated to NVQ4+ (2000-2004)

21. Correlation matrix – Creative Industries Specialisation and Key Economic Characteristics in East of England (n=48) Creativeindustries LQ(2004) VAT registrationsper 10,000 adults(k-sector) (2000-2004) Job density(2004) Unemploymentrate (2001) Employment rate(2000-2004) % economicallyactive educatedto NVQ level 4+ Gross annual pay(2003) Creative industries LQ (2004)10.695**0.372**-0.285*0.369**0.673**0.640** VAT registrations per 10,000 adults (k-sector) (2000-2004) -10.311*-0.630**0.564**0.796**0.571** Job density (2004)--10.1330.1050.410**0.339* Unemployment rate (2001)---1-0.656**-0.521**-0.248 Employment rate (2000-2004)----10.459**0.371** % economically active educated to NVQ level 4+ -----10.430** Gross annual pay (2003)-----1 Source: NOMIS Interrelationships between Creative Industry Employment and Key Regional Indicators in East of England

22. Higher Educational Attainment, Creative Industry Specialisation and New Venture Creation Educational Attainment Level 4+ Creative Industry Specialisation New Business Start-ups Income Employment in higher value-added activities > Increased income levels Educational attainment permitting access to employment in higher value-added sectors Potential spin-off activity Innovative high- growth start-ups > Increased income levels Educational attainment equipping entrepreneur with skills to start new business venture