1. Seminar on Entrepreneurship in Higher Education: Increasing Competitiveness, Enhancing Resilience Presentation by: Francesco Nucci Università di Roma “La Sapienza” 13 th – 14 th December 2011 Kuala Lumpur (Malaysia)

2. Entrepreneurship Let us first set the stage for the issue of entrepreneurship in higher education Let us first set the stage for the issue of entrepreneurship in higher education 1. Entrepreneurship is a multidimensional concept and a multifaceted phenomenon 2. Entrepreneurship deals with the individual ability in the execution of ideas We may argue that ideas and projects are often “commodities” and that the real challenge is their execution: “It’s not the idea; it’s the execution”!

3. The process of Creative destruction 1. The essence of entrepreneurship is that of devising new and innovative ways to combine and organize factors of production (NCGE, 2009) 2. This refers to the Schumpeter idea of “creative destruction”, by which new and innovative entrepreneurs displace less innovative incumbents, thus leading to higher growth in the economy (see Audretsch, 2003)

4. The role of change 1. Despite the emphasis put by Schumpeter on the process of starting new enterprises, in defining entrepreneurship we should take a broader perspective 2. Entrepreneurship is about change. Entrepreneurs are “agents of change and growth in a market economy” and they act for the execution of innovative ideas (OECD, 1998; Audretsch, 2003), for turning them into action 3. Thus, entrepreneurship requires a combination of mindsets, knowledge and skills

5. Entrepreneurial mindsets 1. Entrepreneurial mindsets refer to attitudes pertaining to: - Creativity - Sense of initiative and innovation, - Propensity to risk taking - Self-confidence and leadership - Identification of opportunities; - Ability to innovate - Ability to cope with uncertainty and complexity (see e.g. ILO, 2003)

6. Entrepreneurship and growth Econometric research has established that entrepreneurship positively and significantly affect economic growth and competitiveness. Econometric research has established that entrepreneurship positively and significantly affect economic growth and competitiveness. A positive relationship between entrepreneurship and economic performance has been uncovered using a variety of different measures of entrepreneurship A positive relationship between entrepreneurship and economic performance has been uncovered using a variety of different measures of entrepreneurship Moreover, the positive link holds across a variety of units of observations (firms, industries,, regions and countries) (see Audretsch, 2003) Moreover, the positive link holds across a variety of units of observations (firms, industries,, regions and countries) (see Audretsch, 2003) Thus, a policy commitment is called for Thus, a policy commitment is called for

7. The policy strategy The policy strategy for promoting enterprises should hinge on creating a business environment that is conducive to start-ups and enterprises. This requires primarily a strong administrative simplification and improvements in the regulatory and financial environment. This calls for: The policy strategy for promoting enterprises should hinge on creating a business environment that is conducive to start-ups and enterprises. This requires primarily a strong administrative simplification and improvements in the regulatory and financial environment. This calls for: Reducing the admistrative burden for starting a new venture and for running a business Reducing the admistrative burden for starting a new venture and for running a business Reducing the difficulties in the access to finance (e.g. by developing venture capital and by providing loan guarantee scheme) Reducing the difficulties in the access to finance (e.g. by developing venture capital and by providing loan guarantee scheme)

8. Not only should the costs of entry be lowered but also the “cost of exit”. The transfer of businesses is often costly, e.g. because of taxes. Not only should the costs of entry be lowered but also the “cost of exit”. The transfer of businesses is often costly, e.g. because of taxes. Moreover, in Europe there is often a social stigma attached to bankruptcy. Those who go bankrupt are considered “losers”, while - in the US - bankrupcy is part of the learning process Moreover, in Europe there is often a social stigma attached to bankruptcy. Those who go bankrupt are considered “losers”, while - in the US - bankrupcy is part of the learning process This paves the way for the role of cultural norms in fostering entrepreneurial activities This paves the way for the role of cultural norms in fostering entrepreneurial activities The role of cultural norms (I)

9. Encouraging the enterprise spirit is definitely a priority because a cultural aspect is involved Encouraging the enterprise spirit is definitely a priority because a cultural aspect is involved For example, the notion of the entrepreneur as a positive role model has never been in the European culture as pervasive as it is in the north-american culture (EC EU, 2004) For example, the notion of the entrepreneur as a positive role model has never been in the European culture as pervasive as it is in the north-american culture (EC EU, 2004) There is a strong influence of national cultural standards on entrepreneurial activities, with some cultures valuing and rewarding more the entrepreneurial attitudes There is a strong influence of national cultural standards on entrepreneurial activities, with some cultures valuing and rewarding more the entrepreneurial attitudes Entrepreneurship in Education (I)

10. This calls for actions to create and strengthen an enterprise culture and to develop the entrepreneurial attitudes seen before This calls for actions to create and strengthen an enterprise culture and to develop the entrepreneurial attitudes seen before It is now widely recognized that the development of entrepreneurial attitudes and a more entrepreneurial culture in our societies should be pursued through the system and programmes of education (see ILO, 2003) It is now widely recognized that the development of entrepreneurial attitudes and a more entrepreneurial culture in our societies should be pursued through the system and programmes of education (see ILO, 2003) Entrepreneurship in Education (II)

11. Entrepreneurship education has the potential to foster entrepreneurship, both by promoting the right mindset among students and by providing them with the relevant technical skills Entrepreneurship education has the potential to foster entrepreneurship, both by promoting the right mindset among students and by providing them with the relevant technical skills Beyond rhetoric, the real policy objective might be that young individuals would find it easier and more normal to imagine for themselves a professonial career as self-employed or entrepreneur Beyond rhetoric, the real policy objective might be that young individuals would find it easier and more normal to imagine for themselves a professonial career as self-employed or entrepreneur Entrepreneurship in Education (III)

12. Innovation is a value for the society and the prosperity of a society is based on innovation Innovation is a value for the society and the prosperity of a society is based on innovation Entrepreneurs have the ability to innovate Entrepreneurs have the ability to innovate Certainly the components of instinct and animal spirits play a role (“stay foolish, stay hungry”) Certainly the components of instinct and animal spirits play a role (“stay foolish, stay hungry”) However, an equally relevant role is played by knowledge, competence and dedication However, an equally relevant role is played by knowledge, competence and dedication The education path has thus the crucial task of bringing those attitudes into order and suitably combining them with knowledge and skills The education path has thus the crucial task of bringing those attitudes into order and suitably combining them with knowledge and skills Entrepreneurship in Education (IV)

13. Therefore I see a dual role for the education system in fostering entrepreneurship Therefore I see a dual role for the education system in fostering entrepreneurship On one side, the education infrastructure should foster entrepreneurial mindsets and attitudes, e.g. encorauging a positive attitude to risk-taking On one side, the education infrastructure should foster entrepreneurial mindsets and attitudes, e.g. encorauging a positive attitude to risk-taking On the other side, the education system should somewhat “reduce to order” these attitudes and combine them with an adequate stock of knowledge and skills that the education system itself should provide On the other side, the education system should somewhat “reduce to order” these attitudes and combine them with an adequate stock of knowledge and skills that the education system itself should provide Entrepreneurship in Education (V)

14. In order to assess the diffusion of entreneurship education (EE) and analyse its features, it is important to gather information first. Conducting rigorous surveys is useful. In order to assess the diffusion of entreneurship education (EE) and analyse its features, it is important to gather information first. Conducting rigorous surveys is useful. Understand how many students have access to it Understand how many students have access to it Define an EE threshold: for example at least 1 course where the subject of entrepreneurship represents at least 25% of the course curriculum (Niras et al, 2008) Define an EE threshold: for example at least 1 course where the subject of entrepreneurship represents at least 25% of the course curriculum (Niras et al, 2008) Entrepreneurship in Education (VI)

15. However, effective EE should not be conceived only as courses on the starting up of business ventures. To provide effective EE it is not sufficient to provide course on entrepreneurship However, effective EE should not be conceived only as courses on the starting up of business ventures. To provide effective EE it is not sufficient to provide course on entrepreneurship EE should, among other things: 1) Interact actively with the stakeholder community EE should, among other things: 1) Interact actively with the stakeholder community 2) Foster the creation of technology-transfer facilities and business incubators 3) Insert the values of entrepreneurship across all the curricula Entrepreneurship in Education (VII)

16. It would be a mistake to think that the business school and the department of economics and management are the most suitable place to teach entrepreneurship. It would be a mistake to think that the business school and the department of economics and management are the most suitable place to teach entrepreneurship. Innovative ideas for business ventures and propensity to self-employment may well arise in technical, scientific and creative studies as well as in humanities (see EC 2008) Innovative ideas for business ventures and propensity to self-employment may well arise in technical, scientific and creative studies as well as in humanities (see EC 2008) Integrate entrepreneurship as a part of the curriculum in different subjects Integrate entrepreneurship as a part of the curriculum in different subjects Entrepreneurship in Education (VIII)

17. Audretsch (2003) “Entrepreneurship. A Survey of the literauture”, European Commission Audretsch (2003) “Entrepreneurship. A Survey of the literauture”, European Commission European Commission (1998), “Fostering entrepreneurship in Europe: Priorities for the future” European Commission (1998), “Fostering entrepreneurship in Europe: Priorities for the future” European Commission (2004), “Helping to create an entrepreneurial culture” European Commission (2004), “Helping to create an entrepreneurial culture” European Commission (2006), “Implementing the Community Lisbon Programme: Fostering entrepreneurial mindsets through education and learning” European Commission (2006), “Implementing the Community Lisbon Programme: Fostering entrepreneurial mindsets through education and learning” European Commission EC (2008) “Entrepreneurship in higher education, especially within non-business studies”, Final Report of the Expert Group European Commission EC (2008) “Entrepreneurship in higher education, especially within non-business studies”, Final Report of the Expert Group Main References (I)

18. ILO (2003) “Facilitating Youth entrepreneurship”, Part I and II, by Haftendorn K. and Salzano, C. ILO (2003) “Facilitating Youth entrepreneurship”, Part I and II, by Haftendorn K. and Salzano, C. National Council for Graduate Entrepreneurship (NCGE) (2009), “Leading the Entrepreneurial University” National Council for Graduate Entrepreneurship (NCGE) (2009), “Leading the Entrepreneurial University” Niras, Foras, Econ Poyry (2008), “Survey of Entrepreneurship in higher education in Europe”, Survey requested by the European Commission Niras, Foras, Econ Poyry (2008), “Survey of Entrepreneurship in higher education in Europe”, Survey requested by the European Commission Main References (II)