Opinion of the European Economic and Social Committee on the Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions Implementing the Community Lisbon Programme: Fostering entrepreneurial mindsets through education and learning COM(2006) 33 final
Date: 2006-07-06
Institutions: European Economic and Social Committee
Subjects: EU programme, business start-up, education policy, entrepreneurship, vocational training

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Official Journal of the European Union

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Opinion of the European Economic and Social Committee on the Communication from the
Commission to the Council,
the European Economic and Social
Committee and the Committee of the Regions Implementing the Community Lisbon Programme:
Fostering entrepreneurial mindsets through education and learning

the European Parliament,

COM(2006) 33 final

(2006/C 309/23)

On 5 April 2006 the Commission decided to consult the European Economic and Social Committee, under
Article 262 of the Treaty establishing the European Community, on the abovementioned proposal.

The Section for Employment, Social Affairs and Citizenship, which was responsible for preparing the
Committee's work on the subject, adopted its opinion on 2 June 2006. The rapporteur was Ingrid Jerneck.

At its 428th plenary session, held on 5 and 6 July 2006 (meeting of 6 July 2006), the European Economic
and Social Committee adopted the following opinion by 122 votes to 16, with 10 abstentions.

Key points of the EESC's position

Entrepreneurship refers to an individual's ability to turn ideas
into action. Entrepreneurial training promotes innovation, crea-
tivity and self-confidence. To foster entrepreneurial mindsets
through education and learning:

— Early start, with the basis for entrepreneurial training and

education

— Supplementary entrepreneurial programmes within the
national curriculum from primary school to higher educa-
tion

— Positive and effective cooperation between schools/universi-

ties and businesses

— Involvement of teachers benefits their personal develop-

ment

— The drawing up of educational programmes for entrepre-
neurship should involve both employers and employees

— Strong involvement and presence of civil society in the

learning process

— The importance of female entrepreneurs must be taken into
account in schools with the aim of fostering a positive
balance between women and men

— Entrepreneurship must be fostered equally amongst disabled

persons

— Exchange of best practice is important and progress could
stock-taking conferences

be monitored through annual
organised by the Commission

— Media activities and the image they convey of business are

important

— An ‘Entrepreneurial staircase’ can be used as one of several

models in the Member States

— The importance of creating one-stop-shops to facilitate the

setting-up of companies

— Launch of a European Year for Entrepreneurship upon a

proposal by the Commission

— Entrepreneurial mindsets for education and training can
play a role in communicating Europe and bringing the EU
closer to its citizens

1. Gist of the Commission document

1.1
In February 2005, the Commission proposed a new
start for the Lisbon Strategy focusing the European Union's
efforts on two principal tasks — delivering stronger,
lasting
growth and providing more and better jobs. The new Partner-
ship for Growth and Jobs stresses the importance of promoting
a more entrepreneurial culture and of creating a supportive
environment for SMEs.

1.2
The need to create a more favourable societal climate
for entrepreneurship is based on an integrated policy with a
view to not only changing the mindsets but also improving the
skills of Europeans and removing obstacles to the start-up,
transfer and growth of businesses.

entrepreneurship

1.3
Entrepreneurship is a key competence for growth,
employment and personal fulfilment. While recognising that
acquired
competence
the
throughout lifelong learning, the Communication focuses on
education from primary school to university,
including also
secondary level vocational education (initial vocational training)
and technical institutions of tertiary level.

should

be

Traditionally, formal education in Europe has not been
1.4
conducive
and
to entrepreneurship and self-employment
although numerous initiatives on entrepreneurship education
are under way, they are not always part of a coherent frame-
work. The Commission's proposals, based on evidence and
good practice,
systematic
approaches to entrepreneurship education and to enhance the
role of education in creating a more entrepreneurial culture in
European societies. Most of the action needs to be taken at
national or local level.

aim to help formulate more

The Communication will

serve as a reference for
1.5
reviewing progress in policy development, notably through the
Lisbon Reports that the Member States will submit under the
Integrated Guidelines for Growth and Jobs.

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2. The EESC's general comments

if

the benefits of

The Committee welcomes the Commission's proposal.
2.1
More entrepreneurial activity is important
the economic
growth needed to successfully maintain Europe's social model
and to turn the Lisbon strategy into a success is to be fostered.
Europe needs more entrepreneurs equipped with the appro-
priate skills to successfully compete in the markets. As the
Commission recognizes,
entrepreneurship
education are not limited only to more start-ups, innovative
ventures and new jobs. An entrepreneurial mindset should be
seen as a basic skill and a career opportunity as well as an
essential part of personal development. It fosters creativity and
innovation as well as self-confidence as it develops a spirit of
initiative and helps individuals to learn to cope with failure. It
is a matter of instilling an enterprising attitude, and not just
learning how to be a businessman or woman. Entrepreneurial
training can also enable employees to become more aware of
what their jobs are about and to seize any opportunities that
may arise. Entrepreneurship refers to an individual's ability to
turn ideas into action (1).

2.2
The EESC supports the idea that a change in mindsets
or attitudes is crucial to achieving an increase in entrepreneur-
ship rates and needs to start at an early age. An entrepreneurial
mindset also needs to be conceived as a lifelong learning
process that begins in primary school. That is where specific
entrepreneurial skills are fostered over and above the general
knowledge and culture acquired in formal education,
thus
promoting creativity, a sense of
initiative and a proactive
approach to knowledge and learning, etc. This can offer
increased flexibility at different stages of a persons life, helping
to facilitate the work-life balance for women and men. The role
of families and their attitudes towards entrepreneurship needs
to be taken into account.

2.3
The Committee welcomes the Conclusions of the Spring
Council (2). The European Council underlines the need to create
a positive entrepreneurial climate overall, and invites
the
Member States to strengthen respective measures,
including
through entrepreneurship education and training. Measures to
improve the business environment for SMEs of all types and
in particular women and
sizes and encourage more people,
young people, to become entrepreneurs should be explicitly
mentioned in the National Reform Programmes as well as in
the reporting.

2.4
The Committee appreciates the suggestion concerning
the establishment of one-stop-shops so that companies set up
in a quick and simple way. This is an important issue for
general growth and more jobs. However, as the Committee has
already stated, the barriers to entrepreneurship before and after

(1) COM(2005)548 — Proposal for a Recommendation of the Euro-
pean Parliament and of the Council on key competences for lifelong
learning.

(2) Brussels European Council 23/24 March 2006 — Presidency

conclusions.

the setting-up process are far more significant than has been
assumed. Too much focus on making company registration
quick may inadvertently curtail
the appropriate period of
research, planning, capacity-building and overall
important
deliberation by an entrepreneur that precedes the launching of
a new business venture (3). In this context the Committee reiter-
ates that, not only start up, but also the transfer of business is
involved.

2.5
Regulatory, fiscal and financial issues, factors which all
influence entrepreneurship, have been addressed in previous
Committee opinions (4).

Though the Committee supports and agrees with the
it

2.6
proposals and recommendations in the Communication,
would like to make the following comments:

3. The EESC's specific comments

3.1 Entrepreneurial mindsets in education

Achieving an entrepreneurial mindset

3.1.1
is a lifelong
learning process, which needs to start at an early age and
which should run like a ‘red thread’ throughout the whole
education system. Primary, Secondary and Higher education
should all provide a better basis for acquiring the skills and
ability to develop independence and an entrepreneurial spirit at
a later stage. A thorough and high standard of education will
open the way to effective specialised entrepreneurial training in
the future. A recent survey (5) shows that entrepreneurship
training programmes play a crucial role in encouraging young
people to consider self-employment as a future career option.
These programmes have also shown to improve the students
problem-solving capabilities, develop self-confidence and taught
the value of co-operation and teamwork. Entrepreneurship
education entails an active participation in education and not
just passive absorption. A study from Lund University (6) shows
that entrepreneurial skills are learned primarily by work experi-
ence and practice and not just by formal education.

Developing an entrepreneurial mindset is important in
3.1.2
theoretical as well as vocational secondary and higher educa-
tion, and can also have additional positive implications helping
to raise interest in various forms of education. In this context,

(3) EESC opinion on the ‘Green Paper — Entrepreneurship in Europe’

(rapporteur Mr Ben Butters) — OJ C 10, page 58, 14.1.2004.

(4) EESC opinion on the ‘Communication from the Commission to the
Council and the European Parliament, the European Economic and
Social Committee and the Committee of the Regions — Action
(rapporteur Mr
Plan: The European agenda for Entrepreneurship’
Ben Butters) — OJ C74, page 1, 23.3.2005, and the EESC opinion
on the ‘Green Paper — Entrepreneurship in Europe’ (rapporteur Mr
Ben Butters) — OJ C10, page 58, 14.1.2004.

(5) Enterprise 2010 the next generation, survey from Junior Achieve-

ment Young Enterprise, September 2005.

(6) ‘Entrepreneurship, Career Experience and Learning — Developing
our Understanding of Entrepreneurship as an Experiential Learning
Process’ dissertation by Diamanto Politis 2005, School of Economics
and Management, Lund University.

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the Committee notes that there are different types of business
culture which need to be taken into account when drawing up
education programmes.

3.2 Dissemination of best practice and follow-up

3.1.3
One of the solutions is to develop concrete and timely
relevant
contacts between schools, businesses, government,
authorities and the local community. Education administrations
and entrepreneurs should cooperate to develop the best educa-
tion possible. Employers and employees should be visible and
play an appropriate role in education. The Committee agrees
with the Commission that the importance of entrepreneurship
must be clearly stated and become a natural part of curricula. It
should be accompanied by appropriate measures for implemen-
tation. Entrepreneurship's horizontal character calls on close
involved (education/
co-operation between all ministries
industry/economy) to ensure a coordinated approach.

3.1.4
Different national and local initiatives, as well as the
exchange of good practice, should be supported. Organised
civil society (including social partners, family organisations etc.)
should be consulted in this work.

3.1.5
Full support must be given to teachers in this process.
They need to be made sufficiently aware of the benefits of
entrepreneurial education and shown ways in which such
programmes can be implemented, starting in primary school.
Schools must, therefore, have not only the necessary human
and financial resources but also sufficient independence to be
able to fulfil this and other tasks they undertake. Teachers have
to understand that the all-round education of their students
must encompass the elements of independence, curiosity and a
critical approach which can stimulate them and help develop
teachers must be
an entrepreneurial mindset. To this end,
supported and feel that this form of education can also be a
source of personal enrichment.

3.1.6
The Committee regrets that the female perspective has
not been dealt with further in the Communication, though it is
mentioned in the introduction. The ratio of girls taking part in
mini-company activities in secondary school is the same as that
for boys, and in some countries it is even higher. Despite this,
men are more likely to start and own businesses and are more
confident in their entrepreneurial skills according to surveys (7).
This phenomenon merits further consideration and concerns
the education system in general.

The possibility of becoming an entrepreneur should be
3.1.7
the same for disabled and able-bodied persons. Entrepreneur-
ship education and training should take this into account
providing appropriate support to the person concerned. Rele-
vant disability organisations at European, national and local
level should be involved in this process.

3.2.1
The Commission Communication identifies and brings
together what has been done, based on best practice. The focus
should now be put on how to further implement and dissemi-
nate these findings, proposals and recommendations.

3.3 Dissemination of best practice

3.3.1
The Committee is aware that there is an enormous
repository of good practice in Member States and numerous
cases of curricula being extended to include subjects and activ-
ities aimed at forming the competences required for future
entrepreneurship.
It would like to add another example to
those already mentioned in the Communication. Public authori-
ties, as well as private actors, are involved in entrepreneurship
training. Whether educational experiments such as the ‘Entre-
preneurship Staircase’ (8) can be employed more widely and
effectively needs to be verified. This model has different steps
from primary education up to research level and has proven to
be a successful way of introducing entrepreneurship education
to a person early in life and continuing with it throughout later
stages of education:

— Seven year old ‘Flashes of genius’ create simple and practical

innovations

— 15-year olds:

information and active participation in

schools by businesses, organisations and authorities

— 18-year olds: become Young entrepreneurs and start mini-

companies

— Higher education: special

faculties and programmes for

entrepreneurship

The establishment of a forum for best practice is
3.3.2
important. The
initiatives already taken to identify and
exchange good practice should be further developed in the
Member States and coordinated by the Commission. The
annual conferences within the European Charter for Small
Enterprises are an important part of this. The Committee is
also looking forward to the Conference the Commission will
organise in the autumn of 2006 as a follow-up to the Commu-
nication on fostering entrepreneurial mindsets. The Committee
demands that all relevant public and private actors be asso-
ciated with this conference and suggests that different models,
for example the ‘Entrepreneurship Staircase’, could be intro-
duced as a case study. At this forum it is important to discuss
successful models which, even at primary school, help to form
the (mental and personal) prerequisites for future entrepre-
neurial skill and can be developed to suit other Member States
national criteria and curricula. The Committee also proposes
that this kind of stocktaking conference become an annual
event to assess the implementation of the Commission's recom-
mendations.

(7) Global Entrepreneurship Monitor, 2005 Executive report.

(8) Introduced by the Confederation of Swedish Enterprise.

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3.3.3
The Commission makes comparison with the United
States in its communication, where entrepreneurial activities
are encouraged more than in Europe. In a previous Committee
opinion it was stated that, compared with the USA, proportio-
nately fewer Europeans are involved in start-ups and signifi-
cantly more prefer employment
to self-employment. Many
observers believe that the European social model is one of the
key reasons why more people in Europe prefer
to be
employees. One should consider a) whether this data is itself
adequate to be used in the benchmarking of EU activity in
Member States and against standards in the rest of the world b)
the effect of this preference for employment over self-employ-
ment, c) whether it is directly related to the lack of entrepre-
neurial dynamism in Europe and d) whether the solutions are
acceptable to European society (9).

3.3.4
Entrepreneurship is important to society as a whole.
To promote and raise the awareness of the culture of entrepre-
neurial thinking as well as an understanding of the importance
of entrepreneurship for a country's overall development the
Committee proposes that the year of 2009 be declared Euro-
pean Year of Entrepreneurship. In this context the Committee
notes that the mid-term review of several relevant Community
programmes will take place in 2010. Positive public attitudes
on entrepreneurship need to be established. The Year would
also provide an opportunity to consolidate and reinforce
existing exchanges of best practice. A European Year of Entre-
preneurship could also play a role in communicating the EU
and bring it closer to its citizens.

3.3.5
As the Committee has already stressed, the media play
a key role in conveying the spirit of entrepreneurship and an
understanding of how business works. However, there tends to
be an over-emphasis on big business and multinationals. Strate-
gies to highlight the role of the entrepreneur should be defined

Brussels, 6 July 2006.

to promote the image of small businesses and micro-enter-
prises, of specialised trades, services, and traditional and craft
activities (10).

3.4 Follow-up

3.4.1
Since education and training are amongst the areas for
which the Member States are competent,
the question of
importance. The
follow-up and implementation is of crucial
Committee notes that the former evaluation reports under the
Charter for small companies are being replaced by the general
reports set up as part of the Lisbon strategy (Integrated guide-
lines for Growth and Jobs, guideline No 15). However the
Committee considers that national scoreboards could still be
established. The Commission needs to define qualitative and
quantitative targets to assess progress in an efficient way and
on a long-term basis, while respecting the principle of subsi-
diarity and each country's specific situation. The proposals in
the final report of the Expert Group ‘Education for Entrepre-
neurship’ (11) are valid.

the structural

3.4.2
The Committee notes that several community training
programmes could contribute financially to efforts to enhance
entrepreneurial spirit, in particular the Erasmus and Leonardo
programmes,
funds, especially the European
Social Fund, and the future Competitiveness and Innovation
Programme, CIP. However, these support possibilities do not
seem to be coordinated. A coherent Community level strategy
to enhance entrepreneurial spirit
is required. Methods and
funding need to be clearly identified and players at all levels
informed about
the various possibilities for securing com-
munity funding.

3.4.3
The Committee intends to follow-up priority action
taken by the Finnish presidency to unlock business potential as
called for by the European Council (12).

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

(9) EESC opinion on the ‘Green Paper — Entrepreneurship in Europe’

(rapporteur Mr Ben Butters) — OJ C 10, page 58, 14.1.2004.

(10) See also EESC opinion on the ‘Green Paper — Entrepreneurship in
(rapporteur Mr Ben Butters) — OJ C10, page 58,

Europe’
14.1.2004.

(11) Final report of the Expert Group ‘Education for Entrepreneurship’
— Making progress in promoting entrepreneurial attitudes and
skills through Primary and Secondary education, completed in
February 2004.

(12) Brussels European Council 23/24 March 2006- Presidency conclu-

sions.

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APPENDIX 1

The following amendments were rejected, although they did receive at least a quarter of the votes cast:

Key points of the EESC's position, indent 14

Amend as follows:

Launch of a European Year for Entrepreneurship upon a proposal by the Commission

Voting

For: 48

Against: 62

Abstentions: 15

Point 3.3.4

Amend as follows:

‘Entrepreneurship is important to society as a whole. To promote and raise the awareness of the culture of entrepre-
neurial thinking, as well as an understanding of the importance of entrepreneurship for a country's overall develop-
ment the Committee proposes that the year of 2009 be declared European Year of Entrepreneurship c calls on the
Commission to launch appropriate measures. In this context the Committee notes that the mid-term review of
several relevant Community programmes will take place in 2010. Positive to establish positive public attitudes to
entrepreneurship. need to be established. The Year would also provide an opportunity to consolidate and reinforce
existing exchanges of best practice. A European Year of Entrepreneurship could also play a role in communicating
the EU and bring it closer to its citizens.’

Voting

For: 60

Against: 73

Abstentions: 13