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Family business entrepreneurs influence on entrepreneurship

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Family business entrepreneurs influence on entrepreneurship ...

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    Paper prepared for FBE 2008, Best Practices on Family Business and

    Entrepreneurship Higher Education

    August 2122, 2008, University of Jyväskylä, Finland

    Family business entrepreneurs’ influence on entrepreneurship

    education and training a discussion paper

    Helena Allahwerdi, Ph.D.

    Hely Westerholm, Ph.D. (Econ.), MBA

    Helsinki Business College

    P.O. Box 133, Hattulantie 2, FI-00511 Helsinki, Finland

    Tel. 358 207 511 700, Fax +358 207 511 711,

    E-mails: helena.allahwerdi@hbc.fi, hely.westerholm@hbc.fi

    Summary

    Entrepreneur education and training are the key concepts for the success and welfare of the European

    societies. In this, the most important actors are the local and national family business entrepreneurs and

    their enterprises. The challenge for them is to become global and to build international business and

    social networks with their European counterparts as well as to learn to be motivated in cooperation with

    educational establishments. This study focuses on the online learning program of Global

    Entrepreneurship developed with the support of family business entrepreneurs as mentors. The students

    act as business assistants to the entrepreneurs. The study offers entrepreneurs an exciting and

    motivating platform for this in five European countries: Austria, Finland, Hungary, Italy and Lithuania,

    as well as in Turkey. At the same time, the educational institutions support the entrepreneurs in putting

    their innovative visions of international cooperation into practice. The outcomes of the cooperation

    include SME business surveys, marketing research and a proposal for an online department store. The

    evaluation emphasizes the occupational competences and attitudes of the entrepreneurs, which are

    results based on the previous study by Westerholm (2007) in the same countries except for Italy, which is

    a new partner country. The empirical case of INNOVET- Transfer on Innovation - is a real-life

    application of entrepreneur education and training.

    Key words: entrepreneur education and training, family business entrepreneur, international

    cooperation and networking, educational innovation transfer

1 INTRODUCTION TO THE TOPIC

The EU has adopted a stand strongly in favour of entrepreneurship, of which a prime

    example can be found in the “Framework for key competences in a knowledge-based

    society 2004: Entrepreneurship. (European Commission 2004). According to this framework, entrepreneurship supports all citizens in everyday life at home and in society

    and helps employees gain awareness of the wider context of their work and capitalize on

    opportunities that arise. It also provides the foundation for special skills and knowledge

    that entrepreneurs need when starting a social or commercial enterprise.

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    The importance of the global division of labour is growing and mobility between

    societies is increasing. Networking in the information economy in particular could provide a solution to the appropriate division of labour, adoption of innovations and specialization, if multicultural backgrounds could be capitalized upon. In practice, entrepreneurship education and training can succeed if the entrepreneur education curriculum corresponds to the needs of local entrepreneurs and the learning environment extends from the classroom to any part of the world. (Carrier, 2006; Westerholm, 2007).

    According to the Global Entrepreneurship Monitor 2007, there is lack of meaningful

    entrepreneurship education everywhere. The emphasis in entrepreneurship education is on the research and development of processes of learning. The traditional, teacher-oriented practices in entrepreneurship education seem to offer very few opportunities to be creative and innovative (Schumpeter, 1934; Landström, 1998; Kyrö, 2008). Developing creativity and innovation in the context of entrepreneurship education requires new pedagogical methods and theoretical bases (Kyrö, 2008) and a bridge to global business realities and active entrepreneurs. This bridge is built by inviting the entrepreneurs to play an active role in planning and implementing entrepreneurship education (Gibb 2002). It is important to pay attention to the skills needed in real multicultural business environments.

    In addition, we are convinced that the traditional teacher’s role is going to change

    into the role of active communication and cooperation with the world of work. The strong signals come from the enterprises. This will reflect on the study programs of students more than ever. On-the-job learning and work training are going to have a central position in their studies. Practical assignments strengthen their abilities, skills and attitudes.

    In future, the question is whether the difference between successful performance in

    school and successful performance in business life can be discerned in time. Kupferberg (2003) emphasises that creativity is more meaningful than competences. He believes that education and training are going to meet new challenges which are more than plain competences. Insight is an integral element of competence, bringing into play such characteristics as willpower, intuitive thinking, spirit and communication skills that impact on ability to manage practical problem-solving situations. The ability to learn from experience is valued and taken as part of the broader learning process. (Munch & Jakobsen 2005). The focus in valuating learning results in future will be on individuality and

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    fragmentation, the vision being an unlimited range of patchwork profiles that discard the

    holistic competence concept. The primary concern in the world of work will be on broad-

    based education linked to a personality that exhibits strength, individual initiative,

    independence and the ability to reach analytically justified decisions. (Drexel 2003).

2 RESEARCH POSITIONING AND PLAN OF THE STUDY

The INNOVET study (see Fig. 1) provides family business entrepreneurs with a practical

    platform to put their competence and experience to use as mentors. The students in the

    partner institutes function as business assistants conducting business surveys and

    marketing research and preparing proposals for international cooperation based on the

    requests and wishes of participating family business entrepreneurs in Austria, Finland,

    Hungary, Italy, Lithuania and Turkey. The partner countries and educational

    establishments are the same as in Westerholm’s study (2007), with the addition of new

    partner Italy.

    - competence - motivation to be Research - attitudes mentors

    - innovation - networking - learning on line - innovations

     Dialogue between theory and practice

     INNOVET study online

     Global Entrepreneurship

     Learning Program online

Figure 1. INNOVET research positioning by adopting Westerholm?s model (2007, 17).

The INNOVET study promotes entrepreneurship education and training. It develops

    different learning program versions according to the needs and educational traditions of

    the partners. Each partner has its own networks. In the national networks there are

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    representatives of family business entrepreneurs, educational and business organisations,

    staff members and students as business assistants. The national networks communicate

    actively with those of other partners.

    The focus of our interest are the entrepreneurs, who to date have had a minor role in

    entrepreneur education. However, they are the bridge to the reality of global business

    environments, offering challenges to new innovations and visions. There is a constant

    dialogue between the various forms of entrepreneurship education and training and the

    family entrepreneurs.

    We emphasize at first the entrepreneurial approach and then the student-oriented

    approach in planning the ongoing process of the project. The teachers’ role as instructor is

    to support and facilitate cognitive paths, to propose pedagogical methods and to develop

    evaluation criteria with the help of the entrepreneurs and students. The entrepreneurs are

    the experts of real-life business cultures.

    The Plan of the INNOVET Study on

    Entrepreneurship Education and Training

    Objectives of the study

     Target groups: entrepreneurs, students and instructors E VThe pilots of Global Entrepreneurship course in AAustria, Finland, Hungary, Italy, Lithuania and LTurkey 2008 - 2009

    U AOutcomes of the pilot courses T I7 language Surveys, Proposals of O version of marketing research international N ongoing and business online shops and e-magazines networks department stores

     On-the-job training abroad

Figure 2. The plan of INNOVET study.

The first real challenge was to find the enterprises and entrepreneurs who would like to

    participate as mentors. The channels for communication in each partner country were

    several newspaper articles, chambers of commerce and seminars where the entrepreneurs

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    were invited. The aim was to locate at least two enterprises and entrepreneurs from each

    partner country. The entrepreneurs gave to the students several assignments, which

    consisted of requests of proposals for cooperation and new business ideas. The

    entrepreneurs had little or no familiarity with the cultures and business environments in

    the partner countries. They needed to be informed and the students of Global

    Entrepreneurship did this survey and e-mailed the results to entrepreneurs.

    Most of the Global Entrepreneurship courses online started during fall 2008. The course consists of six parts:

    ? what does entrepreneurship really mean?

    ? entrepreneurship and the EU

    ? entrepreneurship in your own country

    ? entrepreneurship in partner countries and the assignments of mentor entrepreneurs

    ? preparing the reports to entrepreneurs and proposals for international cooperation

    ? new business ideas and preparation for the work training abroad

The work training abroad of Educating European Citizens consists of three parts

    1. Before the training abroad in the partner country

    ? Country (place of training) package is given to the trainee to study

    ? Entrepreneur’s (place of training) assignments are given to the trainee who makes a

    survey in his/her home country about entrepreneurship

    ? Global Entrepreneurship course

    2. During the training

    ? Detailed program prepared by the enterprise receiving the trainee

    ? Guidelines and objectives for the training by the mentor enterprise

    3.