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1 Entrepreneurship: The challenges ahead Dr. Stylianos Mavromoustakos Executive Director, Intercollege Vice President, EfVET Contents What is EfVET What is entrepreneurship? Characteristics of entrepreneurs Difficulties faced by entrepreneurs Challenges faced by entrepreneurs Statistics on SMES Examples What can be done 1

2 What is EfVET EfVET is a unique European-wide professional association which has been created by and for providers of technical and vocational education and training (TVET) in all European countries. Its mission is to champion and enrich technical and vocational education and training through transnational co-operation operation by building a pan- European network of institutions and practitioners which will o promote quality and innovation in Technical and Vocational Education and Training throughout Europe o develop collaboration, mutual co-operation operation and sharing of good practice o give colleges a platform of influence in European TVET policy What is EfVet Continue.. Developed with the support of the European Commission and the European Institute of Education and Social Policy, EFVET is the only transnational organization of this type for TVET. Its policy is determined by its member colleges and schools. It collaborates with, but is independent of all government and funding bodies. Its income is derived from membership subscription, grants and sponsorship. 2

3 What is entrepreneurship? Involves the recognition of opportunities (needs, wants, problems, and challenges) and the use of resources to implement innovative ideas for new, thoughtfully planned ventures. Willingness to take the risks involved in starting and managing a business. What is entrepreneurship? Continue.. The qualities that are needed to function effectively in a business, profit-making context (e.g. the ability to identify business opportunities, negotiate prices). Entrepreneurship is one special form of human capital that is important in an economic setting. Entrepreneurial abilities are needed to improve what we have and to create newgoods and services. An entrepreneur is one who brings together all the resources of land, labor, and capital that are needed to produce a better product or service. In the process of doing this, the entrepreneur is willing to assume the risk of success and failure. 3

4 Characteristics of entrepreneur The entrepreneur has an enthusiastic vision, the driving force of an enterprise. The entrepreneur's vision is usually supported by an interlocked collection of specific ideas not available to the marketplace. The overall blueprint to realize the vision is clear, however details may be incomplete, flexible, and evolving. The entrepreneur promotes the vision with enthusiastic passion. Characteristics of entrepreneur Continue.. With persistence and determination, the entrepreneur develops strategies to change the vision into reality. The entrepreneur takes the initial responsibility to cause a vision to become a success. Entrepreneurs take prudent risks. They assess costs, market/customer needs and persuade others to join and help. An entrepreneur is usually a positive thinker and a decision maker. 4

5 Difficulties faced by entrepreneurs Recruitment Finding qualified people Human Resources Problems Delegating issues No discrete roles Interpersonal conflicts Capital Investment Premises Technology Management Issues Challenges faced by entrepreneurs Globalization Environmental Factors (Regulations due to the Global warming) Socio Cultural Factors (More foreign people) Demographics (Urbanization) Role playing by SMES Future Government Regulations Role of the Government E business 5

6 Statistics on SMES The US Small Business Administration (2003) estimates for small businesses with employees indicate that in 2002 there were more closures (584,500) than startups (550,100). These figures do not include the numerous new business startups that do not hire employees. Holland (1998) quotes a Dun & Bradstreet report which estimate, businesses with fewer than 20 employees have only a 37% chance of surviving four years (in business) and only a 9% chance of surviving 10 years.. Restaurants have the highest failure rate, with only a 20% chance of surviving two years Statistics on SMES Continue.. Concerning the educational entrepreneurship programs, the Institute for the Future (IFTF) suggests, that entrepreneurship programs increase the success rate of businesses launched by graduates. 85% of graduates who started new ventures stayed in business for at least two years. Interestingly, for the economic benefit of the society, the National Foundation for Teaching Entrepreneurship even holds that entrepreneurship programs increase small business formation rates by 30 times. 6

7 EfVET Projects on SMES ERTD ERTD is a collaborative partnership between 13 training institutions and public/private agencies drawn from 5 countries across Europe. The project was supported by the European Union through the Leonardo da Vinci program, aimed at improving the vocational education systems of Europe. Aim The aim of the project was to develop and pilot new learning materials and a new course in rural tourism development which was delivered on-line to course participants via a virtual campus. The program incorporated a variety of learning tasks, including the research, design and promotion of new rural tourism itineraries incorporating case studies to facilitate the learning process. The learning program ensured skills and knowledge of participants met the needs of the rural tourism sector and new opportunities for employment within it. EfVET Projects on SMES Continue.. The Euracademy Observatory The Euracademy Observatory project started in 2005 and run until the end of September Aim The aim of the project was to examine the policy and practice for ICT-supported continuing educational and training (CET) in the context of lifelong learning (which included learning at work, skills s acquisition, personal development) across the participating countries and in the European Union more generally. An inventory of opportunities for unemployed or employed people was created, with an emphasis on employees of SMEs and micro- enterprises, and the self-employed. employed. Such documentation was collected through surveys, to include governmental organizations, policy makers, training providers and trainees, to provide a comprehensive picture of the supply and demand for ICT-supported CET in rural Europe. 7

8 EfVET Projects on SMES Continue.. The intention was to establish the Observatory on the Internet with the remit to continue its operations beyond the life of the project. Partner countries involved were Belgium, Germany, Greece, Poland, Hungary, UK, Finland and Spain. The project findings presented at two trans-national national conferences: in Athens in September 2006 and in Brussels in September The project was funded by the Leonardo Da Vinci Program. What can we do? Innovation Training Guidance, counseling Work organization, improvement of access to work places Employment creation and support Employment aids Awareness raising, information, publicity 8

9 THANK YOU! 9

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