Small business

2.5 Creating the basis for development of an enterprise culture
Objective: To set out clear concepts and targets for the establishment of a culture of enterprise in the education
system and in the relevant institutional/stakeholder environment.  
This requires, firstly, clarity as to what the target means and secondly, an understanding of how this might
be achieved.
What is a society with an enterprise culture? It can be a society in which the potential for individuals and
groups to start a business is maximised. More broadly it can be a society in which individuals in all kinds
of organisations and in all aspects of life behave in an entrepreneurial manner. The common element is a
set of values and attitudes underpinning a belief that economic and social development can best be
achieved by the maximisation of individual, small group and local community effort and responsibility.
It is important to recognise that entrepreneurial behaviour arises from the need of individuals and
organisations of all kinds to cope with, enjoy and sometimes create high levels of uncertainty and complexity
as a means of personal fulfilment. The broad strategic challenge to public policy is therefore to seek to change
the culture of organisations of all kinds to facilitate entrepreneurial behaviour enabling and encouraging
individuals to:
• Enjoy a stronger sense of ownership;
• Freely choose the form and control the direction of their organisation (a small business or otherwise),
maximising the opportunity to engage in ‘total’ management;
• Enable them to make decisions under conditions of uncertainty and ambiguity;
• Take responsibility to see things through and build a long term commitment to a venture;
• Build ‘know who’ networks with key public and private sector partners;
• Link rewards and the evaluation of behaviour to credibility with stakeholders and customers;
• Learn – not only formally, but also from stakeholders, and from mistakes and experiments;
• Encourage strategic thinking rather than formal planning and personal contact as a basis for
management by trust.
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These guidelines are important particularly for the design of organisations that will interface with the
SME sector. Additionally, important general factors in supporting the development of an entrepreneurial
society are positive entrepreneurial personal role models for individuals to follow, entrepreneurial attitudes
among all relevant stakeholders, local empowerment, a greater belief in ‘trust’ than in regulations and the
encouragement of initiative at all levels.
The education system is commonly regarded as the starting point for the creation of enterprise culture.
Foreign assistance to promote entrepreneurship in the transition economies through education is provided
on a bilateral basis (see below) as well as through UN bodies such as the Food and Agricultural Organisation. 
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The UK Department for International Development supports a number of enterprise education programmes in Central
and Eastern Europe. These include: 
Hungary. Two programmes were developed in partnership with the Foundation for Small Enterprise Education
Development (SEED) and the National Institute of Teacher Training. The first involved the development of enterprise
education in secondary schools, the second focused on vocational colleges.  
Latvia. Three programmes were developed with the Ministry of Education and head teachers of prominent secondary
schools. The two completed programmes continue to be delivered via a network of trainers. The first, ‘Working for Myself’,
involved students in vocational colleges, the second focused on vocational and grammar schools, and the third was aimed at
Initial Teacher Training (ITT) institutions, building on the previous secondary school programme. With a scheme already
in place to introduce teachers to enterprise education, the intention is to create a permanent infrastructure for enterprise
education.
Poland. Two programmes were completed. One introduced enterprise education via secondary school teachers. Key
partners were the Stefan Batory Foundation and the Ministry of Education and its Initial Teacher Training Department.
The second programme focused on the development of self-employment capability in vocational schools.
Russia. Enterprise education was introduced in all secondary schools in the Samara Oblast as part of the Ministry of
Education’s restructuring programme. The local partners were the Ministry of Education and the International Market
Institute.
Slovenia. Three programmes have been completed. The first introduced enterprise education in vocational schools, the
second introduced enterprise and business understanding in the core curriculum of all grammar schools. Both have been
nationally disseminated via a group of committed teacher trainers. The third programme focuses on teachers of vocational
trades and is designed to develop small business capability and knowledge in students and teachers.  All programmes have
been developed in partnership with the National Vocational Centre, Ministry of Education and National Education Institute.