Education to Entrepreneurship — SME Union
Brussels, 7 December 2005

Ladies and gentlemen,

It’s a pleasure to be here today to speak to you about entrepreneurship and education (Slide 1).

In doing so, I would like to place my comments in the context of the wider framework of the revised Lisbon strategy for Growth and Jobs. It is clear that education and training are determining factors in this context.

The Challenges

We all know the socio–economic challenges which Europe is facing, and the scale of them (Slide 2). These challenges are related to rapid changes in the world of work, to globalization, demographic change and the development of a knowledge based economy.

The knowledge and skills acquired through learning are a determining factor in each country’s potential for meeting these challenges.

Yet, at the same time, education and training are crucial for the social dimension of Europe, as they contribute to the transmission of values such as solidarity, equal opportunities and social participation. In an increasingly diverse society, education, but also training is the key to making Europe more inclusive, tolerant, democratic and to helping citizens meet the personal challenges they face.

Strengthening Innovation and Entrepreneurial Culture

Research suggests that there is a positive correlation between entrepreneurship and economic growth, particularly in high-income countries. In a highly competitive world, strengthening innovation is also an important condition for ensuring growth.

For these reasons, the Commission has for some time highlighted the need to promote an entrepreneurial culture in the European Union. Education and training systems can clearly play a role in this respect.

With regard to innovation, , our capacity to produce new knowledge needs to be matched with a greater capacity to make some use of it. Such capacity building is of particular importance for SMEs, as they represent a precious and fertile ground for creativity and experimentation.

I am of the view that both entrepreneurship and innovation must be underpinned by placing greater value on education and training. To take one obvious example, researchers should be more aware of the potential business impact of their ideas.

How to define Entrepreneurship

The Commission proposal for a Recommendation on Key Competences, adopted on 9th of November provides a reference tool for policy makers, education and training providers, as well as employers, to create comprehensive and coherent lifelong learning strategies.

Key competences are those needed by all individuals for personal fulfilment and development, for the world of work as well as for personal and social life. Once acquired at school they should be further developed, maintained and updated as part of lifelong learning.

Entrepreneurship—is one of the eight competences identified in the Recommendation and is defined as follows (Slide 3):

an individual’s ability to turn ideas into action. It includes creativity, innovation 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, and is a foundation for entrepreneurs establishing social or commercial activity.

Entrepreneurship is therefore something we need in both our personal and professional lives.

I strongly disagree with those who would say that entrepreneurship education represents a “utilitarian” view of education, whereby only those skills and values which are of use in the job market are taught.

In the definition I have just given you, entrepreneurship is a competence which is essential for a fulfilled and active life as a citizen, as well as something which is of value as an employee.

Is any SME really afraid of an employee who is creative, imaginative and who takes initiatives? Does any SME really prefer employees who are blindly obedient and bring no other contribution to the workplace? Correct me if I am wrong, but I do not believe that this is the case.

Entrepreneurship Education (Slide 4)

Entrepreneurship–related skills and knowledge, as well as practical experience should be a main focus within both vocational and general education. More efforts are needed to include entrepreneurship education – in its widest sense – in the early stages of general education.

As Entrepreneurship is first and foremost a way of looking at things, it should, and can be nurtured from an early age at all levels, from preschool to university and in informal and non–formal contexts as well.

Learning partnerships – by which I mean between providers, beneficiaries and other stakeholders – can play a key role in supporting entrepreneurship education, especially at local and regional levels. Such partnerships can be immensely

productive in terms of developing appropriate and up-to-date content and methodologies, but also as a means of sharing responsibilities and costs.

Hands–on experience of participation in school–based enterprise activities should be promoted in the curriculum. Projects supported by the DG for Enterprise have shown good results and I am sure you will hear more from the panel in this respect.

An increased effort is also needed to provide teachers with knowledge of the world of enterprise and innovative teaching methods which contribute to bringing an entrepreneurial mindset and spirit into the classroom.

Also, universities need to promote the spirit of enterprise and create a favourable climate for the development of entrepreneurship through the development of campus companies and targeted teacher education programmes.

The Commission recently carried out a public consultation on the creation of a European Institute of Technology, as a possible way of improving Europe’s performance in transferring research and innovation to the market. Whilst we are still analysing the 741 responses, many respondents underlined that universities should play an active role in this process.

ƒ On the one hand, they should open their doors to businesses and in particular to SMEs providing training programmes aimed at building innovation capacity.

ƒ On the other hand, universities should do more to help researchers to develop an entrepreneurial culture, making business experiences an integral part of curricula.

In this sense, the development of an entrepreneurial capacity is the result of a mutual learning process in which universities may learn from businesses as well as businesses from universities.

What we intend to do (Slide 5)

The Commission intends to use all tools available in the “Education and Training 2010” Work Programme (this is the education and training arm of the Lisbon Strategy) to support Member States’ efforts.

I won’t go into the details now but you can see on this slide that the Recommendation on key competences, for example, is derived from the mandate given by Heads of State and government at Lisbon in 2000. Much painstaking work by educational experts has gone into its construction.

Following the proposal for a Recommendation on key competences, the Commission intends to come forward next year with a proposal on teacher training, covering also vocational trainers, of course.

The future Integrated Programme for Lifelong Learning will link more closely with the Union’s policy priorities, and will include promoting Entrepreneurship as a key objective area.

The programme replaces the existing Socrates and Leonardo programmes. It will support schools, universities, colleges, training institutions, and adult education centres to work together in international projects and networks.

SMEs will continue to be an essential partner in the new programme.

In addition, the recently adopted Communication on “New SME Policy for Growth and Jobs”, gives fresh impetus to keep SMEs high on the political agenda.

“Promoting entrepreneurship and skills, including actions to ensure successful transfer of businesses, to facilitate adaptation of the SME workforce to labour market needs” is one of the key messages of the communication. It also includes a better regulatory environment for business.

Similarly, the Commission is preparing a new Communication on Entrepreneurship Education. Based largely on experience gathered through supporting projects in schools and best practices identified in member States, this will examine the current state of play in the Union’s schools and suggest ways forward. It will propose a set of

possible policy measures in education, and focus on the links between general, vocational and higher education and the world of enterprise.

Of course, we must recall that the Community’s competence in matters of education and training are strictly limited by the Treaty. There is no question of harmonisation and Member States are fully responsible for the content and organisation of their education systems.

Nevertheless, by identifying good practice and making international comparisons, the Commission can make a valuable contribution to promoting and supporting reform in the Member States.

For this to work, however, all actors should take ownership of the renewed Lisbon goals and work in partnership to drive forward the agenda.

Cooperation with partners

Ladies and Gentlemen:

Let me finally say a few words on partnership (Slide 6). I see partnership as one of the main sources of added value in our work at EU level. It is through partnerships and the local knowledge they provide that we can deliver Community priorities.

Partnerships between business and schools, at local and regional level, create a context within which the spirit of entrepreneurship can grow.

The business community can make a crucial difference. By facilitating the development of mini–companies in school, providing students with first–hand experience of the world of work, and fostering activities like internships in enterprises, you can provide a valuable source of support for all centres of learning.

At the same time, we need to develop partnerships involving employers and social partners in order to improve productivity, reduce skills gaps and provide employers with the incentives to educate and train their workforces.

Most recent findings confirm that investment in training generates substantial gains for firms. Good human–resource management and training are closely related to a firm’s capacity to innovate.

Also, new ways to support informal learning in companies should be developed and the concept of ‘learning organisations’ should be brought closer to reality.

Europe needs more and better investment in human resources, and I would like to see more incentives for public and private investment.

This conference can make a significant contribution to translating words into action; strengthening cooperation between the various players involved in entrepreneurship education; through establishing networks and promoting good practice.

Your discussions today have the potential to provide us with a valuable contribution for the development of our policies over the coming months. I look forward hearing the results of your reflection.

Thank you.

http://europa.eu.int/comm/enterprise/entrepreneurship/support_measures/training_education/index.htm

http://europa.eu.int/comm/education/programmes/newprog/index_en.html