Unemployed or Self-Employed Students with Entrepreneurial Skills can be Self-Sufficient FORUM 2011 November 7, 2011 Cincinnati, Ohio.

Unemployed or Self-Employed

Students with Entrepreneurial Skills can be Self-Sufficient

FORUM 2011

November 7, 2011

Cincinnati, Ohio

The Changing State of the Economy

• A major study conducted by the Kauffman Foundation of the relationship between economic growth and entrepreneurship found that all nations with higher levels of entrepreneurial activity had above-average rates of economic growth.

Economics is Constantly Changing!

• Innovation drives Change

• An iPod – if it had existed in 1976

• Would have cost $3.2 billion, and would have taken up an entire computer room

Langdon Morris at NASDCTE – October 2010

The Changing State of the U. S. Economy

• Unemployment in the United States is at a 26-year high (9.1 % in September 2011), as businesses continue to seek to survive

• The majority of job losses have occurred in large companies, with the highest share among firms with 1000 or more employees

• Individual entrepreneurs have been the fastest growing segment during the current recession

The Changing State of the Economy

• Small businesses are the foundation of the American economy. The Small Business Administration (SBA) currently reports that of the 27+ million businesses in America,

• 21+ million have no employees except the owner, and

• another 4 million have 5 employees or fewer.

USA is Small Business Economy

• 75% of businesses have no employees

• 89% 5 or fewer employees - (25+ Million of the 27+ Million total business in the USA)

• Just 5% have more than 50 employees

• 52% of small businesses are home based

• In 2004 Small Business Tax Returns represented more than 93% of all business tax returns

Small Businesses Throughout Our Economy

• 12.9 (72%) Million Small Businesses concentrated in:– Professional scientific, technical and management

services– Finance– Insurance and Real Estate– Wholesale and Retail Trade– Construction– Other Services

• Services sector is generally more localized and better suited for small business model

Revealing Statistics• Fewer than 40 percent of the nation’s largest and fastest‐

growing job classifications require four‐year college degrees

• Fewer than 30 percent of all jobs demand college degrees —a figure that has barely budged in the last two decades

. Less than 20% of Baccalaureate Graduates in Spring 2010 found employment in the area for which they were preparing/majoring

Mark Elgart, President and CEO AdvanceED, SACS/CASI

David Pearce Snyder, Futurist states

• “Training and education have always been preparation for the future …but, what will the future be like?”

• He describes the future as a moving target - a work in progress that is widely expected to lead us through decades of on-going innovation and adaptation.

• Graduates will need mastery of higher-order analytical, problem solving, and work-readiness competencies.

Jim Clifton, CEO of Gallup stated in 2009

• “What the whole world now wants is a good job”

• Earlier they reported they desired love, money food, shelter, safety, and/or peace as paramount

• “Good Job” is evolving also because social contract between big companies and employees has changed - Sacrificing old certainties for new risks and opportunities in their own hands

US Chamber Foundation and Junior Achievement Study

• National Survey with 2,213 US high school juniors – Done in August 2011

• 64% are interested in starting or owning their own businesses

• 19% have already started their own businesses

• 95% agree that starting their own businesses helps to create jobs

US Chamber Foundation and Junior Achievement Study

• What did the students think about Entrepreneurship Education?

• 91% of high school juniors say it is important that they are taught entrepreneurship skills

• 41% of these students said it was essential!

Education is an urgent Priority for the Obama Administration

• Goals: By 2020, The USA will raise the proportion of college graduates from where it now stands (39%) so that 60% of our population holds a two-year or four-year degree (National Center for Public Policy and Higher Education, 2008).

• We will close the achievement gap so that all students – regardless of race, income, or neighborhood – graduate from high school ready to succeed in college and careers.

Hart Research Study for the College Board

• National - One Year Out Survey with 1,507 graduates of 2010 from US high schools

done in August 2011

• 57% did not enroll in 4 year colleges (43% did)• College education was not seen as an essential

entrepreneurial preparation step• Of those who did enroll in college

– 43% enrolled in 4 year colleges– 25% enrolled in 2 year colleges

• 66% of those who did not go to college found a job

Consortium for Entrepreneurship Education

www.entre-ed.org

National Organization bringing Educational Agencies and Leaders Together To Build the

Field of Entrepreneurship Education

The Consortium for Entrepreneurship Education

• National Content Standards released June 2004

Mission: Accelerating Entrepreneurship Everywhere!

• Website to provide resources for teachers www.entre-ed.org

• National FORUM/Conference to provide professional development for teachers/program designers – November 12-15 in Columbus, Ohio

• Leading education partner of annual National Entrepreneurship Week February 18 – February 25, 2012 www.nationalEweek.com

• National Standards of Practice released in June 2006

• Entrepreneurship Ambassador E-Group that encourages information sharing through educator networks

• Newsletter and e-Magazine – Future CEO Stars featuring benefits of programs offered by members www.fcsmag.com

National FORUM 2011Participants Networking

Scholarships for many participants

Entrepreneurs SharingWonderful Living Case Studies

Great Entrepreneurial Tours

Use of Newly organized National Standards

Focus on Problem Based Learning using Entrepreneurial Situations

National Partners for developing young entrepreneurs

National FORUM 2012

• 30th Annual FORUM will be held in Atlanta, Georgia in November 2012

• Planning team begins work in January to put in place the tours, entrepreneur speakers, and other details

• Great networking and learning opportunity for all who want to integrate entrepreneurship into the preparation of their students

National Content Standards

• Entrepreneurial Process & Characteristics

• Ready Skills

• Foundation Skills

• Communication Skills

• Business Functions

• Economics

Standards consist of ….

• 6 Categories of Content defined• 15 Standards established

– To guide content development– To ensure comprehensive coverage– To provide what Entrepreneurs said was essential “to

know and be able to do” in order to succeed as entrepreneurs

• 403 Performance Indicators– To guide curriculum development– To guide knowledge and skills assessments

403 Performance Indicators Organized into Five Categories

3 Searchable Fileshttp://www.entre-ed.org/Standards_Toolkit/totalmodel.xls

BASICS

COMPETENCY AWARENESS

CREATIVE APPLICATIONS

STARTUP

GROWTH

Entrepreneurship

Lifelong

Learning

Model

STANDARDS/Performance Indicators

BASICS COMPETENCY AWARENESS

CREATIVE APPLICATIONS

STARTUP GROWTH

 Entrepreneurial Skills

 The Processes and Traits/Behaviors

  associated with entrepreneurial success.  

A

Entrepreneurial Processes 

Understands concepts and processes associated with successful entrepreneurial performance

** Discovery 

A.01 Explain the need for entrepreneurial discovery

A.02 Discuss entrepreneurial discovery processes

A.03 Assess global trends and opportunities

A.04 Determine opportunities for venture creation

A.05 Assess opportunities for venture creation

A.06 Describe idea-generation methods

A.07 Generate venture ideas

A.08 Determine feasibility of ideas

** Concept Development         

A.09 Describe entrepreneurial planning considerations

A.10 Explain tools used by entrepreneurs for venture planning

A.11 Assess start-up requirements

A.12 Assess risks associated with venture

A.13 Describe external resources useful to entrepreneurs during concept development

A.14 Assess the need to use external resources for concept development

A.15 Describe strategies to protect intellectual property

A.16 Use components of a business plan to define venture idea

** Resourcing         

A.17 Distinguish between debt and equity financing for venture creation

“Democratic Entrepreneurship” -Central Competitive Advantage

• “For the United States to survive and continue its economic and political leadership in the world, we must see entrepreneurship as our central competitive advantage. Nothing else can give us the necessary leverage to remain an economic superpower. “

• Carl Schramm, Economist & President of the Kauffman Foundation, Kansas City

Entrepreneurship as Context

• Entrepreneurs exist in every career field

• 65%-70% of all high school students indicate they desire to be entrepreneurs according to Gallup Polls

• 85% of high school students said they had been taught “practically nothing about” or “very little about” business and how it works

• Students perform better in academics when they are focused on their personal objectives

Strengthen Program

• Plan your curriculum• Validate your curriculum• Increase credibility in community• Ensure students are prepared for future• Link with needs of economy• Use high interest context• Create problem-based learning activities• Link with core academic teachers

NEW from the Consortium Members …

• A definition

• Outcomes

• Concepts

• Methods

• Accountability

• Resources

Standards Of Practice consist of ….

• A consistent definition– To guide all program providers– To ensure consistent communication regarding program

for entrepreneurial skills development

• 5 areas of practice to be examined– To ensure comprehensive programming– To guide program development and delivery

• An Assessment Instrument– To allow community review– To allow identification of areas of excellence and areas

to focus improvement strategies

www.nationalEweek.com

February 18-25, 2012

Always celebrated the last week of National CTE Month

www.nationalEweek.com

February 18-25, 2012

Students Plan CelebrationsStudents Enter competitions

Do special Entrepreneurial projectsCreate publicity for your programs

Get Students into businessesGet businesses into your school

Seeking Entrepreneurial Geniuses

• 2010 National Entrepreneurship Week had a focus on Entrepreneurship Literacy

"ENTREPRENEURIAL LITERACY EMPOWERS EVERYONE"!

• Check the Website for details http://www.nationalEweek.org

• Earn a "GENIUS" Certificate by responding to "20 Questions for All Americans"

• Create activities using the "20 Questions for All Americans" at all levels of education. For Teachers - Students - Parents - Entrepreneurs - Officials

Creating Entrepreneurship Hall of Fame

• Entrepreneurs contribute to our National economy and to the local communities in which they operate

• 2011 National Entrepreneurship Week has a focus on honoring leading Entrepreneurs in local communities

• See the website http://www.entre-week.org for details of how to enter a business person into the National Entrepreneurship Hall of Fame 2012

• Put your business leaders on your state and the national map and help establish your community as a place preparing entrepreneurs for advancing the economy and meeting community needs

Entrepreneurship

Lifelong

Learning

Model

The Future Entrepreneurs are in our Schools today

The Aspiring Entrepreneurs are everywhere in our education system and in our workplaces

The Start-up Entrepreneur needs specific skills, training, mentoring and guidance toward successful practices

All Entrepreneurs need the opportunity to problem solve with other entrepreneurial minded business persons

A successful USA Entrepreneurial Pipeline requires a Life-Long Entrepreneurial Learning Approach!

Helping Create a Pipeline of

Entrepreneurs Everywhere

Consortium for Entrepreneurship Education

• Encourages nurturing creative thinking and innovative approaches as a way to build an entrepreneurial mindset

• Encourages helping students chose courses in school that give them skills to use personal talents to be a self-sufficient self-employed person

• Encourages parents and educators to encourage students to consider Entrepreneurship as a career path

Consortium for Entrepreneurship Education

• CEE received a grant in 2008 to look at the Public Workforce System and determine how self-employment and entrepreneurship options could be enhanced as services to the unemployed

• Focus on helping One-Stop Center staff see person’s “dreams rather than just a job!” Help develop the economy instead of just being a job matching service

• CEE helped develop the Entrepreneurship Framework for High Growth segments of the economy – Now on the Internet

DOL EntrepreneurshipCompetency Model

http://www.careeronestop.org/CompetencyModel/pyramid.aspx?ENTRE=Y

Consortium for Entrepreneurship Education

• Framework Guide explanation document was developed to help people understand how the competencies can be used in education and training http://www.careeronestop.org/CompetencyModel/Info_Documents/CEEcomp-model.pdf

• CEE developed listing of entrepreneurial careers in each career cluster to help educate about where entrepreneurs flourish in our economy http://www.entre-ed.org/_teach/clusters.pdf

• Assisted with developing a Policymaker’s Action Guide titled Youth Entrepreneurship in America http://www.nationaleweek.org/eweek_files/YouthEntrepreneurshipinAmericaYESG_report%5b4%5d.pdf

They do learn what we teach – Don’t They ?

Entrepreneurship Process Readiness Checklist

Determine where prospective entrepreneurs are in the process:

• Discovery – stage in which the entrepreneur generates ideas, recognizes opportunities, and determines the feasibility of ideas, markets, ventures, etc.

• Concept Development – stage in which the entrepreneur plans the venture, identifies needed resources using a business plan, identifies strategies to protect intellectual property, etc.

• Resourcing – stage in which the entrepreneur identifies and acquires the financial, human, and capital resources needed for the venture startup, etc.

• Actualization – stage in which the entrepreneur operates the venture and utilizes resources to achieve its goals/objectives

• Harvesting – stage in which the entrepreneur decides on the venture’s future (growth, development, demise)

Entrepreneurship Process Readiness Checklist

Competency Area and Performance Statements Know How or Can Do Need Help

With

Explain tools used by entrepreneurs for venture planning

Assess start-up requirements

Assess risks associated with venture

Describe external resources useful to entrepreneurs during concept development

Assess the need to use external resources for concept development

Describe strategies to protect intellectual property

Use components of a business plan to define venture idea

Comments/Thoughts/Needs

Entrepreneurship Technical Competency Checklist

Competency Area and Competency Statements Have Need Comments

Youth Entrepreneurship AllianceYEA

• YESG started with the Aspen Institute and NFTE leadership and worked for three years

• Published a entrepreneurship policy guide for federal, state and local level policy makers

• Members of the group wanted to broaden the scope of the advocacy

• Now member groups organizing to advocate for Entrepreneurial Policies. (Many are members of the CEE. Focus of this work is policy advocacy and seeking champions)

• Already encouraging STEM to become STEEM• See http://www.yealeaders.org for members and

current efforts

Advocacy is Enhanced by Partnerships

?????????Are there things about which we have talked

that need clarification?

What questions may I respond to ?

What are your inputs/comments?

Glad to serve as a resource for you!

[email protected]

Horace C. Robertson

1120 Balmoral Drive

Cary, NC 27511

919 – 467 - 9933

Secretary-Treasurer for The Consortium For Entrepreneurship Education

Educators need to focus on Entrepreneurship

• Because….

• The economy has changed drastically … Therefore what and how we teach must change

• Problem-based Learning is critical to student development

• A job is work that needs to be done...that someone will pay you to do.

• For the self-employed, their employers will be the customers they find for themselves

• Possessing the Entrepreneurial mindset and skills will allow for success in the future economy and workplaces

Educators need to focus on Entrepreneurship

• Because….• 91% of high school juniors say it is important

that they are taught entrepreneurship skills– 41% of these students said it was essential!

• Self-Reliance is the American Way!

• Students need to become self-sufficient as employed Americans– Self-employment may be their best option

www.entre-ed.org