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International Journal of Educational Management

Emerald Article: Entrepreneuring in education


Gerald Vinten, Steve Alcock

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Gerald Vinten, Steve Alcock, (2004),"Entrepreneuring in education", International Journal of Educational Management, Vol. 18 Iss:
3 pp. 188 - 195
http://dx.doi.org/10.1108/09513540410527185

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Introduction

Entrepreneuring in
education
Gerald Vinten and
Steve Alcock

The authors
Gerald Vinten is based at European Business School,
London, UK.
Steve Alcock is based at National Federation for Teaching
Entrepreneurship UK, London, UK.
Keywords
Entrepreneurs, Small to medium-sized enterprises,
Creative thinking, Secondary education, Youth training
Abstract
Encouraging entrepreneurship has become an accepted
wisdom in economic management and government policy. It
could only be a matter of time before the world of education
was invoked as a means of furthering this end. Business
schools have not made the most incisive contribution
possible, and there is a significant expectations gap. So as we
cascade down to the secondary level, efforts are being made
to improve matters. The initiative of the National Foundation
for Teaching Entrepreneurship is outlined, and research
results relating to impact are provided. This is a systematic
and comprehensive approach, which started in the USA and
has currently spread abroad. It has been well received, and is
a suitable means of planting seeds that may come to fruition
in later life. It is an action learning approach, which is an
excellent vehicle for teaching business studies. It has proved
itself in widening access to under-privileged groups.
Electronic access
The Emerald Research Register for this journal is
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Advocating entrepreneurship is similar to


advocating apple pie and motherhood, which
the whole world is supposed to accept without
question as being obvious truisms. Of course,
not all the world may wish to advocate apple pie!
Irrespective of political party, entrepreneurship
is encouraged through various initiatives and
grants, with the parties vying with each other to
come up with the most headline grabbing and
compelling solutions. Just as in the Old
Testament Book of Proverbs 29:18 we read that
without vision, the people perish, so without
entrepreneurship, the economy will perish.
Political initiatives, however well intended,
often fail to reach the ultimate objective, and so
the economy to a greater or lesser extent,
languishes (Vinten, 2000a, Vinten et al., 1997).
Given the inability of most governments to
achieve anything like perfection in this regard, it
may seem hypocritical to expect not only higher
education, but also secondary and even primary
education to take responsibility for
entrepreneurship.
The game plan is as follows. After discussing
the nature of the small and medium enterprise
(SME) sector, the role of the business school is
considered, with a less than full-blooded
response. Employers views are outlined as to
the skills and competencies they expect as the
outcome of higher education. Cascading down
to secondary education, consideration is then
given to how the entrepreneurial spirit may be
cultivated. The activity of the National
Foundation for Teaching Entrepreneurship
(NFTE), and how it may assist current
government policy, are next treated. This
includes the nature, scope and rationale for the
curriculum, how the trainers are trained, and
the results of evaluative research that has been
carried out, together with the future research
agenda that is planned.

The nature of the SME sector

The International Journal of Educational Management


Volume 18 Number 3 2004 pp. 188195
q Emerald Group Publishing Limited ISSN 0951-354X
DOI 10.1108/09513540410527185

The SME sector is considered to be the sector


par excellence in which the entrepreneurial
spirit resides. However, it has had mixed
fortunes in the extent to which it is regarded as
crucial to all round economic success, or merely
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Entrepreneuring in education

The International Journal of Educational Management

Gerald Vinten and Steve Alcock

Volume 18 Number 3 2004 188195

being an addendum to the big players. The 1971


Bolton Committee was the watershed for
recognition in the UK, and it is instructive to
observe the ambiguous attitude to the business
school: Academic institutions of most kinds
arouse in most small businessmen a degree of
mistrust second only to that accorded to
Government . . . (Bolton Committee, 1971,
p. 10.24) . . . the Business Schools should carry
out research into the role of individual
entrepreneurs and provide courses for them
(Bolton Committee, 1971, p. 10.26). Vinten
et al. (1997, p. 28) find that SMEs did not find
training important for small businesses in
general although it was for their own company.
Even though they did not do it very often, when
they did do it, they rated it as useful.
Generally in SMEs, the culture can be traced
back to the founding entrepreneur (Pettigrew,
1979). However, entrepreneurship cannot stop
with initial inspiration and creativity, since there
are so many routine matters that then have to be
dealt with, from VAT returns to health and
safety at work. The smaller the organisation, the
more of an annoying distraction and overhead
these turn out to be. Many small firms fail, with
evidence suggesting that this may be a
consequence of poor management practice. The
use of spin off teams has the advantage of
having a management team intact at the point of
formation of the SME. Such a team is likely to
have a broader and more balanced base of skills
than recruiting from scratch. Nevertheless the
entrepreneur has to face the inevitability of
having to face all the joys and sorrows, the risks
and opportunities that a nascent organisation
brings. Thus, for example, younger and older
managers may differ on the preference for
exuberance (high risk-taking) and
stewardship (protective behaviour) with
consequent impact on the progression of the
organisation (Arthus and Kram, 1989).

business and management education than those


in larger companies, despite government and
provider initiatives. The cost of MBAs and other
courses, together with a view of their
irrelevance, has excluded small firm managers
from this source of learning. Anyway only 4 per
cent of business schools offer courses for small
firms. So the very culture of business schools is
discouraging to the mutual detriment. This
closes a primary route for the transference of
academic research. Equally there is academic
ignorance as to how and why small firms
succeed and fail. Business schools perceive the
sector as difficult to reach, which is in part a
consequence of its diversity. A substantial and
damaging cultural gap exists between schools
and practitioners (Vinten, 2000b).
There have been isolated successes in
business schools addressing local needs.
Business schools have considerable contact with
professional bodies, but less so with bodies such
as employers federations and business support
agencies. Whenever the Association of Business
Schools makes a call for examples of
entrepreneurship for public relations purposes,
examples are readily forthcoming. However,
these often appear to be isolated examples, and
one later hears that this or that individual was
working largely on their own with minimal
organisational support. Given government and
funding body policy, and the demands from
employers and the dictates from the economy as
a whole, no doubt more attention is being
devoted to this topic. The 2001 HEROBIC
grants of up to 1 million per institution from
the Higher Education Funding Council for
England, for projects which showed higher
education reaching out into the community,
created a partly artificial market for
entrepreneurial activity. Initiatives from the
1990s to embed enterprise into the curriculum
often had only transient impact.

The role of the business school

The employers view

The research results of Vinten et al. (1997) was


confirmed a few years later in Department for
Education and Employment and The
Association of Business Schools (2000). This
found that small firm owners and managers
have been more reluctant to participate in

Other pressure emanate from employers, who


do not hold back from expressing their views as
to what is wrong with the educational system
and what is needed to put it right. A degree of
consensus emerges as to what employers expect.
Yorke (1998) indicates that small enterprises

189

Entrepreneuring in education

The International Journal of Educational Management

Gerald Vinten and Steve Alcock

Volume 18 Number 3 2004 188195

particularly value skill at oral communication,


handling ones own workload, team-working,
managing others, getting to the heart of
problems, critical analysis, summarising, and
group problem-solving. Attributes highlighted
included being able to work under pressure,
commitment, working varied hours,
dependability, imagination/creativity, getting on
with people, and willingness to learn. Hawkins
and Winter (1998) come from a slightly
different and more dynamic perspective when
they list: career management skills and effective
learning skills, self-awareness, self-promotion,
exploring and creating opportunities, action
planning, networking, matching and decisionmaking, negotiation, political awareness, coping
with uncertainty, development focus, transfer
skills, and self-confidence. Related factors may
be culled from Bennett et al. (2000), Brennan
et al. (2001) and Harvey et al. (1997). Morrison
and Johnston (2003) discuss the void in the
curriculum towards assisting the development
of creativity in higher education. They take a
stand alone module Entrepreneurship:
Personal Creativity and indicate how it may be
dispersed more widely and coherently across the
curriculum. The irrepressible businessman, Sir
James Goldsmith (quoted in Ray Wild, How to
Manage, 1992, pp.185-6), embedded his own
list among his general views on
entrepreneurship: Entrepreneurs come in all
shapes and sizes. They straddle every class and
every system of education. The common theme
that links them is sound judgement, ambition,
determination, capacity to assess and take risks,
hard work, greed, fear and luck. The most
dangerous entrepreneur is the self righteous one
who preaches morality and pretends that he is
doing it for the good of others. That kind of
entrepreneur usually ends up bust, having
dilapidated the savings of those who invested in
him.

currently we are contemplating widening


participation into entrepreneurship. Business
studies has been present in the school
curriculum for a while, so either it has not
fulfilled its promise, or there were unrealistic
expectations. The rest of this paper considers
the contribution to this agenda that is being
played through the NFTE, which is colloquially
known as Nifty.
This was founded by Marriotti (2000). He
obtained an MBA from the University of
Michigan School of Business in 1997, and
worked at the Ford Motor Company as a
financial analyst. He disliked the infighting and
intramural politics, and moved to New York
where he established his own small business,
enjoying the freedom of being his own boss, and
considering this was a fair price to pay for having
less money in his pocket. One evening in 1981,
he was attacked by a group of truanting youth
while he was out jogging in Central Park.
Bravely he decided to confront the trauma of
this experience by becoming a high school
teacher in the Bronx, one of New Yorks worst
areas, and he was there from 1982 to 1988. The
initial experience there was far from pleasant
and extremely challenging. By trial and error he
discovered that these rebellious youth, who were
contemptuous about all other attempts to teach
them, seemed to react positively when running a
business and making money was on the agenda.
He adapted the curriculum accordingly, and
gradually won through.
He realised that these young people needed
to be offered an alternative and legal way to get
their hands on money, and so he designed an
appropriate programme to achieve this through
them starting their own businesses. It was only a
short step in 1987 to found NFTE so that a
wider impact could be achieved across the
country. NFTEs intention as an international
non-profit organisation, was, and remains, to
teach and directly impact students basic
academic and life skills through a hands-on
entrepreneurship and business ownership
curriculum. Some 14 different countries are
currently involved, with others in the pipeline,
and there have been about 40,000 students
worldwide (just over 3 per cent of these in the
UK) and over 1,600 certified teachers (with
over 50 in the UK). Around 25 schools are
currently participating.

The school system


So how does all this translate into the school
curriculum, and how can one best introduce
entrepreneurship, especially among the
traditional low school achievers? The
government is a proponent of widening
participation into higher education, and

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The International Journal of Educational Management

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Volume 18 Number 3 2004 188195

In the UK, there were concerns about


under-achievement in the school system,
and there is constant debate and argument
about whether standards have been dumbed
down over the years, and awards mean the
same now. There has been grade inflation,
and scores make it increasingly difficult to
differentiate between results, other than the
gap between those passing and those who
seem disenfranchised. Facts such as the
following underlined the need for NFTE to
be set up in the UK in 2000 as a registered
charity alongside and as a supplement to
existing initiatives such as Young Enterprise
and the Princes Trust:
.
one in 13 pupils leave full time education
at 16 with no qualification (one in seven in
some inner city areas) and others only have
minimal qualifications;
.
30 per cent of 15 years old fail to achieve
one GCSE grade A-C;
.
peak offending age for boys is 18-21, and for
girls 15-16;
.
40 per cent of known offenders are under
21;
.
for adults, 7 million have numeracy and
literacy skills below an average 11 year old,
and 4.6 per cent are deemed illiterate and
innumerate.
Social inclusion is a concept which has been
readily adopted by the UK government. It has
sponsored a whole raft of pilot projects and
experiments, NFTE being just one of them.
The agenda to which the government operates is
indicated in another of these: Social Inclusion
as a concept recognises the moral obligations
within society to strive for a participatory
approach to development whereby all sections
equally gain ownership and responsibility for
the progress of a society in which opportunities
are equal and disadvantage by virtue of race,
ethnicity, disability or other forms of diversity
are not entrenched (Ethnic Business
Development Corporation, 2001). The April
2003 Budget provided 16 million to fund
Enterprise Advisers to work alongside head
teachers in deprived schools in order to give
pupils experience of business. The NFTE
approach is surely coming into its own as one
which neatly fits into government policy and the
economic agenda.

The NFTE curriculum


NFTEs unique entrepreneurship curriculum
combined academic and life skills to
inculcate in young people business start
up skills by developing a range of
entrepreneurial competencies. The programme
aims to give these young people the
opportunity to achieve greater self-sufficiency
and engagement in learning. Excluded and
disaffected young people are particularly
within the sights of such programmes, and
there have been notable successes. The
curriculum has been designed to be both
internally consistent with existing learning
programmes and being free standing.
The programme aims to further the following
key skills.
(1) Communication skills writing business
letters and publicity material, produce
business cards, use business language, give
verbal presentations.
(2) Information management keep business
records, evaluate market knowledge,
monitor the business press and conduct
own market research.
(3) Problem solving the activity of business
creation and business plan design, based on
problem solving in a real market situation.
Students also develop negotiation skills as
creative ways of solving day to day
problems.
(4) Business knowledge and awareness
introduction to existing companies to learn
about the supply chain, departmental
organisation and the legal framework of
registration and taxation.
(5) Numeracy and literacy the production
of annual statements and accounts,
and learning about money, credit, tax
and running a bank account, such that
students achieve financial literacy.
(6) Technical and IT skills the curriculum
can be taught online through Biz Tech.
In addition, students are required to use
spread sheets for their business accounts
and use design software to formulate their
presentations.
NFTE offers flexibility in the way it brings its
entrepreneurial training to secondary schools or
community-based organisations in a number of

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Entrepreneuring in education

The International Journal of Educational Management

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Volume 18 Number 3 2004 188195

different modes, and would consider others if


demand dictated.
(1) NFTE Exposure Sessions. These are
essentially interesting sessions and last for
around 8 h. They are intended to raise
awareness of the key concepts of
entrepreneurship.
(2) NFTE Fundamentals Programme. This is
designed for organisations with limited time
and resources. The 54 h of training include
field trips and business plan activities. This
is an accredited programme awarded as a
BTEC Intermediate Award in Business
Start Up Skills.
(3) NFTE Core Programme. With 108 h of
training, this covers a comprehensive
spectrum of basic and advanced skills and
concepts. Students will be introduced to
anything from small business start up,
understanding income statements, return
on investment, advertising, and cost-benefit
analysis to business ethics. Teachers and
students progress through a 600 page three
module curriculum. This is supplemented
by relevant business experiences, such as
visiting a wholesaler, bank or trade fair.
(4) Biz Tech Entrepreneurship Online. This
Internet-based learning programme,
developed with Microsoft, offers an
interactive learning experience whereby
they may develop and enhance their skills. It
also permits online teacher assessment of
the students, and includes activities such as
the completion of a business plan, tests and
a business game. The comprehensive
business information is presented in an
easily accessible manner. Students gain the
flexibility to access resources in their own
time from any location with Internet access.
The BizPlan and online glossary underpin
learning, and the interface maintains the
student interest. Busy teachers commend
the online grading and recording system.
(5) The Biz Camp. Fun, friendship and learning
are the inter-related themes, and are
recognised as providing the most effective
ingredients. They tend to last a week in the
summer holidays, and combine a mixture of
indoor and outdoor business related
activities through the medium of which
students are encouraged to think creatively
about a business idea and develop a

business plan based on finance, marketing


and goal setting. The grand conclusion of
the week is the formal presentation of the
business plan to a panel of judges with
prizes awarded to the best ones.
Business ideas developed and ran profitably by
students in the UK reflect some old chestnuts as
well as more contemporary topics, and have
included:
.
mobile telephone holograms;
.
henna body design and hair braiding;
.
hand crafted jewellery;
.
home tutoring;
.
talking books;
.
garden maintenance;
.
special occasion card design;
.
community car wash;
.
school event management;
.
music entertainment; and
.
school sweet shop.

Training the trainers


One policy requirement is that the NFTE
curriculum may be taught by only NFTE
Certified Entrepreneurship Teachers (CET)
gained through attending a Teacher Training
Workshop. It makes sense for these teachers to
be primed on the materials and the philosophy
behind them, and to have the benefit of rubbing
shoulders with colleagues and those with an
overview of experience. At these, participants
receive a full set of NFTE teaching resource
guide including lesson plans and quiz books.
The key areas covered are the following.
.
NFTEs objectives and vision.
.
Characteristics and competencies of
successful entrepreneurs.
.
The teaching of entrepreneurship
(generating business ideas, market research,
finance, marketing and promotion
development of a business plan).
.
Teaching styles.
.
The NFTE classroom environment and
lesson format.
.
Introduction to Biz Tech.
.
Presentation of business plans.
.
Explanation of NFTE products and
services.
The first one to be held in the UK over 2 1/2
days featured Steve Mariotti himself as a tutor,

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Entrepreneuring in education

The International Journal of Educational Management

Gerald Vinten and Steve Alcock

Volume 18 Number 3 2004 188195

as well as CJ Meenan, also from the USA, and


Erik Dauwen of NFTE Belgium. The target had
been 25, and in the event this exceeded as 27
enrolled. The teachers represented educational
institutions and community organisations
located throughout the UK. Twenty-five per
cent of these were dealing directly with the
homeless population. There were resonances
with the type of course the students encounter.
Thus there was a field trip to Lloyds Insurance,
a Shakespearean performance at the Regents
Park Open Air Theatre, and a Business Plan
Competition, with students operating in groups
of five, and judged by a panel of seven British
executives from top UK business enterprises.
The winning business plan was City Wheels,
and involved keeping fit and avoiding the stress
of commuting (and subsequently the congestion
charge!) by renting bicycles so that business
people could travel easily to their jobs and avoid
the tribulations of public transport.

but also they are selecting more productive


behaviours than non-NFTE peers.
(2) NFTE positively influences students
confidence in their entrepreneurial potential.
Fifty-four per cent of the NFTE alumni
surveyed by Koch suggest that they have
confidence in their ability to start and profitably
run their own business compared to a control
group of 30 per cent. Eighty-three per cent of
NFTE alumni wish to start their own business
compared with 60 per cent of the control group
and 50 per cent of the US public. Eighty-three
per cent said that NFTE increased their desire
to become entrepreneurs; nine in ten said that
NFTE increased their confidence that they
could run their own business. NFTE alumni
were twice as likely to predict that they would
support themselves by owning a business in
5 years. The Brandeis study found that prior to
commencing the NFTE course, 20 per cent of
the students believed that they could start
a small business; after the course it was
59 per cent.
(3) NFTE stimulates entrepreneurial business
activity. Sixty-five per cent of NFTE alumni
reported that they had run a business, compared
to 2 per cent of the control group students.
Another, and more dramatic, way to express this
is that NFTE increases the chances of ever
running a business by 63 additional youth per
100, that is over and above what youth would do
on their own. Minority business ownership
experience was four times higher among NFTE
alumni surveyed by Koch than the control
group sample.
(4) NFTE increases students exposure to
entrepreneurship and business. The Koch
researchers found that NFTE increased
students exposure to high school
entrepreneurship/business course work twofold
85 per cent of NFTE alumni compared to
33 per cent of the control. Eight times as many
alumni considered that they had been taught a
lot about how to start a business in high school
compared with the young adults in the control.
At present, 63 per cent view business and the
market economy more favourably than they did
before the programme began.
NFTE has its own very definite ideas as to the
research and evaluation studies that will further
enable it to achieve its mission. This may be
grouped into four areas.

Evaluative and further research


NFTE has a tradition of evaluative research,
which it began as soon as the organisation had
achieved a degree of stability and critical mass.
Brandeis University (1993-1997) and the Koch
Foundation (1998-1999) were jointly
commissioned to investigate different aspects of
the territory. The findings in general support the
following four propositions.
(1) Students have positive learning experiences in
NFTE programmes. Of the 421 Brandeis study
respondents surveyed, 65 per cent intimated
that they were very satisfied with their NFTE
experience, and 92 per cent said that they would
recommend NFTE to a friend. Fifty-eight per
cent considered themselves to be better off than
their friends post-NFTE. In comparison to
Control Group members, NFTE graduates
outperformed 22:1 in basic entrepreneurial
knowledge and 32:1 in Business Start Ups.
In the Koch Foundation survey, which
interviewed 1,279 young adults aged 18-24, 89
per cent of NFTE alumni reported that NFTE
had a benefit on their life and 99 per cent said
that they would recommend the NFTE
programme to others. Not only are NFTE
alumni viewing themselves as more
entrepreneurial than the general population,

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The International Journal of Educational Management

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Volume 18 Number 3 2004 188195

(1) Academic impact. What is the relationship


between students experiences in NFTE
and their overall academic achievement?
This is under investigation by Harvard
researchers as part of an ongoing
educational outcomes study.
(2) Teacher impact. What kind of teacher
impacts does NFTE facilitate through the
teacher education programmes? Does
participation in NFTE University/teaching
the NFTE programme influence the ways
that teachers teach as well as how they view
their roles as teachers?
(3) The psychology of entrepreneurship. Does
NFTE foster a psychology of
entrepreneurship that includes critical
thinking, leadership skills, tolerance of
ambiguity, problem solving, self-efficacy,
and collaboration? How is the psychology of
entrepreneurship demonstrated in the
context of school? This last question forms
part of the Harvard research.
(4) Alumni impacts. What are the short- and
long-term impacts of NFTEs alumni
services programmes?

The NFTE courses provide an effective route


to achieve this entrepreneurial spirit in whatever
guise it needs to take root, and to leaven the
lump within the secondary school network.
With Young Enterprise now experimenting in
the primary school, there may well be a knockon effect on higher education to take its
responsibilities more seriously than has been
evidenced in the past. Many if not most
elements of enterpreneurship are already
contained within a traditional BA Business
Studies, and it does not require a huge amount
of repackaging to infiltrate it with an
entrepreneurial or intrapreneurial emphasis.
Courses in economics, finance, accounting
and marketing should also consider it of their
very essence to further enterprise. Business
schools have had a controversial history
(Vinten, 2000b), and their credentials have
regularly come under attack from other
academic tribes, and from the businesses they
are supposed to be serving. In the USA, some
notable business schools have formed
meaningful partnerships with NFTE. It behoves
UK business schools to do the same to achieve
their mission in society.

Conclusion
With global competitiveness, it is a matter of all
possible hands to the tiller, and no economy can
afford to neglect to nurture the talent residing in
its midst, especially that from non-traditional
and disadvantaged groups. Without this, no
amount of government policy intervention will
succeed in bolstering up the SME sector. For
those who do not choose, or find no opportunity
or funding to set themselves up in their own
business, there is the opportunity to serve as an
intrapreneur in someone elses company, and
maybe to have the part one serves in spun off, as
for example, as a management buyout. Strategic
Business Units were traditionally set up to bring
an element of entrepreneurial attitude with a
larger and maybe bureaucratic organisation.
Research and Development departments,
although supposedly highly creative, can
become routinised and providing made-to
measure services. Permitting backburner
projects, possibly the pet projects of an
individual, to continue in the background is a
way of having one cake and eating it.

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