a shift in many recipient research careers from academia to entrepreneurship; and demonstration effects which encourage entrepreneurship.
A similar commitment to increased funding for SME research can be found across the OECD, at regional, national,
paper accepted to be presented at the Babson conference on entrepreneurship. Clarysse, B. and M. Uytterhaegen, 1999, Inside the Black box of Innovation:
OECD. OECD, 1998, New Rationale and Approaches in Technology and Innovation Policy, STI Review No. 22, OECD, Paris. WK1 35 OECD, 1998, Fostering Entrepreneurship, Paris:
as well as of entrepreneurship, on innovative performance have been conducted in developed countries, particularly in the context of high-tech industries (Stam & Elfring, 2008),
Corporate Entrepreneurship and the Pursuit of Competitive Advantage. Entrepreneurship: Theory & Practice, 23 (3), 47-63.
Covin, J, . & Slevin, D. 1988). THE INFLUENCE OF ORGANIZATION STRUCTURE ON THE UTILITY OF AN ENTREPRENEURIAL TOP MANAGEMENT STYLE.
A Conceptual Model of Entrepreneurship as Firm Behavior. Entrepreneurship: Theory and Practice, 16 (1), 7-25.
Covin, J, . & Slevin, D. P. 1989). Strategic management of small firms in hostile and benign environments.
The Role of Entrepreneurial Orientation in Stimulating Effective Corporate Entrepreneurship. Academy of Management Journal, 19 (1), 147-156.
Strategic Management Journal, 11 (Corporate Entrepreneurship), 29-47. Jacob, J, . & Szirmai, A. 2007). International knowledge spillovers to developing countries:
Entrepreneurship Theory and Practice, 35,1025-1050. Larrañeta, B.,Zahra, S. A, . & González, J. L. G. 2012).
Entrepreneurship and innovation in small-firm networks. Journal of Business Venturing, 9 (2), 125-140.
The correlates of entrepreneurship in three types of firms. Management Science, 29,770-791. Miller, D,
An absorptive capacity theory of knowledge spillover entrepreneurship. Small Business Economics, 40 (2), 185-197.
Contextual influences on the corporate entrepreneurship-performance relationship: A longitudinal analysis. doi: 10.1016/0883-9026 (94) 00004-E. Journal of Business Venturing, 10 (1), 43-58.
Corporate Entrepreneurship, Knowledge, and Competence Development. Entrepreneurship Theory and Practice, 169-189
Procedia Economics and Finance 16 (2014) 512 520 2212-5671 2014 The Authors. Published by Elsevier B. V. This is an open access article under the CC BY-NC-ND license (http://creativecommons. org/licenses/by-nc-nd/3. 0/).Selection
and/or peer review under responsibility of Scientific Committe of IECS 2014 doi: 10.1016/S2212-5671 (14) 00832-6 Sciencedirect Available online at www. sciencedirect. com 21st International Economic Conference 2014, IECS 2014,16-17 may
2014, Sibiu, Romania Entrepreneurship and SMES Innovation in Romania Nelu Eugen Popescu a,*alucian Blaga University of Sibiu, Faculty of Economic sciences, 17 Dumbravii Avenue, Sibiu
550324, Romania Abstract The aim of this article is to present some theoretical connections between entrepreneurship,
Entrepreneurship, Innovation, SMES (Small and medium enterprises) 1. Introduction Entrepreneurship is a term that does not have accepted an general definition,
and innovation is the specific instrument of entrepreneurship. He defined entrepreneurship as an act of innovation that involves endowing existing resources with new wealth-producing capacity (Drucker,
1985) Innovation is associated usually with doing something new or different (Garcia & Calantone, 2002). ) The concept of innovation is defined as the implementation of a new or significantly improved product or process, a new marketing method,
Both entrepreneurship and innovation are 2 broad concepts without a unanimously accepted definition and are regarded as overlapping concepts (Stam, 2008).
The connections between these 2 concepts dates back to the first Schumpeterian theory about entrepreneurship were the entrepreneur was seen as the personification of the innovation (Hagedoorn, 1996),
The connections between entrepreneurship, innovation and small firms has been studied over time by various scholars and some even defined entrepreneurship as follows innovation by newly formed independent firms (Kirchhoff,
and job creation by SMES issues generated an interest in the study of entrepreneurship (Wennekers & Thurik, 1999).
FPP, 2013). 3. 4 Main barriers for R&d activities in SMES A number of obstacles may limit entrepreneurship, the creation and development of innovative start-ups and SMES,
Efforts should focus on entrepreneurship and small to medium enterprises innovation and competitiveness growth in order to attain a sustainable and healthy economic recovery in the long run.
B. 2010) Knowledge Spillover Entrepreneurship, In Acs, Z. J. and Audretsch, D. B. 2010), Handbook of Entrepreneurship Research An Interdisciplinary Survey and Introduction 2nd Edition.
Audretsch, D. B. and Thurik R. 2001)" Linking Entrepreneurship to Growth",OECD Science Technology and Industry Working papers, No. 2001/02, OECD Publishing. doi:
and Medium Enterprises, IZA Discussion Paper No. 3962 Drucker, P. F. 1985) Innovation and Entrepreneurship;
Marchese, M. & J. Potter (2010), Entrepreneurship, SMES and Local Development in Andalusia, Spain, LEED Working Paper Series, LEED programme, OECD. Entrepreneurship, SMES
ENTREPRENEURSHIP, SMES AND LOCAL DEVELOPMENT IN ANDALUSIA, SPAIN A review by the Local Economic and Employment Development (LEED) of the Organisation for Economic Co-operation and Development (OECD) FINAL REPORT
November 2010 (This version of the report has not been formatted professionally) ACKNOWLEDGEMENTS This case study on=Entrepreneurship
and provided invaluable insights on the Andalusia entrepreneurship and SME development system: the Andalusia Technology Park (PTA) of Malaga;
the Entrepreneurship Agency (ANDALUCIA EMPRENDE; the Andalusia Entrepreneur Confederation (CEA; the Andalusia Innovation and Development Agency (IDEA;
and entrepreneurship support system by a diagnostic report prepared by Prof. Vicente Granados-Cabezas of the University of Malaga.
Entrepreneurship and start-ups, by Ricardo Pinto. Chapter V: SME development, by Andrew Cumbers. Conclusions, by Marco Marchese and Jay Mitra.
7 Entrepreneurship...9 SME development...10 RETA...12 Policy recommendations...13 INTRODUCTION...15 CHAPTER I:
ENTREPRENEURSHIP AND START-UPS...83 Introduction...83 Policy issues...83 Assessment of the region...86 Policy recommendations...
128 Entrepreneurship and start-ups...130 SME development...131 RETA...132 Policy recommendations...135 EXECUTIVE SUMMARY The OECD Local Economic and Employment Development Programme (LEED) has undertaken a review on entrepreneurship, SMES and local development in Andalusia,
Spain, working in collaboration with RETA (Red de Espacios Tecnológicos de Andalucía Andalusia Technology Network). The present document summarises the key results of the review,
The overall review objective was to analyse the capacity of Andalusia to support entrepreneurship and SME development and how such capacity is affected by regional and local policies.
ii) analyse the set of policies implemented by regional and local organisations to support entrepreneurship and SME development;
In addition, the review has examined the role of RETA in supporting entrepreneurship and SME development, and how its impact can be enhanced.
i) the impact of human capital and the labour market on entrepreneurship and SME development; ii) the contribution of research organisations to entrepreneurship and SME development;
iii) direct policies for entrepreneurship and start-ups; iv) direct policies for SME development. The key findings for each theme are summarised below, together with the main observations on the role of RETA in entrepreneurship and SME development.
Human capital and the labour market The Andalusia labour market is affected by structural weaknesses High levels of unemployment,
large numbers of temporary workers and low productivity undermine the performance of Andalusia‘s labour market. Although the overreliance of the region on the construction industry and the subsequent housing bubble has contributed clearly to these problems,
a separation between ministries concerned with entrepreneurship, education, and employment; and the lack of a workforce strategy tied to business cluster strategies.
Entrepreneurship Entrepreneurial culture is improving in the region There is a low but growing level of entrepreneurial culture in the region.
the sharp economic downturn in Andalusia may stimulate a greater willingness to embrace self employment and other forms of entrepreneurship.
This is clearly something to build on in the region via a greater focus on developing a culture of entrepreneurship at all levels of the education system:
The current extensive entrepreneurship support framework results in institutional overlaps An extensive network of institutions, policies, programmes and projects exists that supports entrepreneurship in the region.
RETA RETA has played an important twofold role RETA has played an important twofold role in the Andalusian system of support to entrepreneurship and SME development Firstly,
and the policy support to entrepreneurship and SME development provided by all the actors of the Andalusian innovation system,
and this will avoid some of the institutional overlaps that have characterised the entrepreneurship and SME support system in the past.
Policy recommendations The analysis of the international review panel has led to the formulation of the following key policy recommendations to strengthen the entrepreneurship and SME development system of Andalusia.
Refocus entrepreneurship education along the models of the best business schools, trying to attract immigrants and to exploit the advantage of Andalusia s geographical location.
Entrepreneurship and start-ups Further develop entrepreneurial culture in the region, including by targeting the new unemployed through self employment programmes.
and entrepreneurship support system and ensure coherence in policy design and delivery. Ensure that best-practice policy principles are applied in local technology parks,
It is against this background of the Andalusian economy that a review on Entrepreneurship, SMES and Local Development has been carried by the OECD Local Economic and Employment Development (LEED) Programme in partnership with the Andalusian Technology Network (Red de Espacios Tecnologicos de Andalucía RETA).
Scope and approach of the review The review focuses attention on entrepreneurship, SMES and local development.
which entrepreneurship and SMES contribute to innovation, the review aims to investigate the capacity of the region to support new firm formation, the sustainable growth of existing firms,
Four of the input factors together with their effect on SME development and entrepreneurship constitute individual chapters for this report
Framework and Governance Start-ups/New Firm Formation Existing Firms Innovation, Entrepreneurship and Economic Development Networks Input Factors for Framework Conditions Key Drivers of Innovation
A combination of the two forces (education and experience) might be more appropriate for encouraging adaptiveness to entrepreneurship.
there are four labour market-related factors most critical to entrepreneurship in all its forms:(1) higher education;(
Entrepreneurship and SME development Entrepreneurship covers a huge territory of theory and practice concerned with opportunity identification and realisation, innovation in the form of new products and services,
Entrepreneurship is evident in both small and mediumsized enterprises (SMES as well as large ones, in the formal and informal economy;
This spectrum of involvement can lead to both productive and unproductive or even destructive entrepreneurship (Baumol, 2006.
Entrepreneurship is local in the sense that new firms are formed in specific locations. It is national and global in that new firms make new products and services in these markets and often source technologies and other resources from across a country and sometimes globally.
Increasingly even economically less prosperous regions such as Andalusia are being exhorted to court entrepreneurship as part of an effective economic development strategy.
Methodology This report provides advice from an international perspective on how to strengthen SME and entrepreneurship policies in Andalusia.
i) human capital and labour market issues affecting entrepreneurship and SME development; ii) the contribution of research organisations to entrepreneurship and SME development;
iii) policies for entrepreneurship and start ups; and iv) policies for SME development. The governance aspect is embedded in each of the four thematic chapters.
The report is based on observations, discussions and recommendations collected through an OECD peer review process which took place in April 2010,
Granados, University of Malaga) to provide an initial analysis of the key facts about the Andalusia economic system and the entrepreneurship and SME policy context.
During the study visit, the expert team interviewed regional policy makers and other relevant actors in the entrepreneurship and SME development system
and obtained their views on issues to entrepreneurship and SME development. A wide range of issues were discussed with stakeholders,
iii) entrepreneurship and new start ups; iv) SME development. Each thematic chapter contains a description of general policy issues;
A final chapter summarises main conclusions and policy messages on entrepreneurship promotion and SME development for the region of Andalusia.
References Acs Z.,2008, Foundations Of high Impact Entrepreneurship, Jena Economics Research Papers, n. 2008-60.
Baumol W.,Entrepreneurship: Productive, Unproductive, and Destructive, Journal of Political economy, n. 98, pp. 893-921.
Florida R.,2002, The Rise of the Creative Class, Basic books, New york. OECD, 2001, Fostering Entrepreneurship, OECD, Paris. CHAPTER I:
This decision signals the decision of the regional government to better coordinate its economic policies as well as the importance given to business innovation and entrepreneurship as the main drivers of local development.
and more specifically of the Department of Science and Innovation, fall some of the main regional organisations committed to the promotion of economic development, among which the regional development agency IDEA, the trade promotion agency EXTENDA, the entrepreneurship agency ANDALUCIA
which was given by the regional government an important function of coordination and governance of the entrepreneurship and innovation system.
unfolding entrepreneurship programmes aimed at specific social groups (e g. women, youth, university graduates, disadvantaged people, etc.),
and business innovation centres These three different institutions are important players in the entrepreneurship and innovation system of Andalusia.
Finally, in the current decade, the 2000 EU Lisbon Agenda has ushered Andalusia to the whole new theme of entrepreneurship and innovation,
The four most relevant to entrepreneurship and SME development are listed those below which with the exception of PIMA (2005-2010), cover the period of EU structural funds 2007-2013.
6. 3%.Based on these figures, the regional government directly devotes EUR 3. 5 billion to entrepreneurship and SME development over six years, with other complementary areas such as=knowledge
Interestingly, PAIDI sets out the role and functions of the key actors of the Andalusia entrepreneurship and innovation system,
However, the emphasis is here on entrepreneurship, including reduced barriers to business creation (administrative burdens, start-up finance, etc.),
and entrepreneurship training specifically, in Andalusia. Though the system is hampered by many redundancies in training programmes,
Policy issues A rich literature debates the role of human capital formation and labour market dynamics in fostering entrepreneurship and innovation.
then turning to the debates about labour market preparation for entrepreneurship. A final section describes the Spanish context.
Role of human capital in entrepreneurship and innovation Although research has confirmed long the importance of human capital to business productivity,
less is known about the role of human capital in fostering entrepreneurship. From the few studies that exist,
it is clear that successful entrepreneurship stems from a relatively broad conception of human capital as not just education and training,
Not surprisingly, then, investment by firms in their employees‘human capital has been shown to encourage innovation and entrepreneurship (Sevilier, 2006.
Human capital that combines education and experience gives employees the adaptiveness so key to entrepreneurship (Wright, Hmieleski, Siegel and Ensley, 2007.
To wrap up, the four labour market-related factors most critical to entrepreneurship appear to be: 1) higher education;
The local landscape of education and training related to entrepreneurship and SMES The educational system in Andalusia is currently experiencing a restructuring that will affect not only the future of education and human capital in the region but also the entire Andalusian system of innovation.
The 2003 Plan for the Second Modernization of Andalusia revealed the regional government‘s focus on promoting scientific research, technology transfer and entrepreneurship culture as engines of growth and economic development.
entrepreneurship education (partly), and integration of immigrant workers. Figure 8. Regional Agencies involved in human capital development Source:
Finally, the region might support the local residents who are increasingly choosing vocational over university training to obtain skills that will improve entrepreneurship.
The II Andalusia Plan for Vocational training will address several gaps in the system that can help link vocational training better to innovation and entrepreneurship for instance
Entrepreneurship education The EU generally lags in entrepreneurship education, and Andalusia is no exception (Twaalfhoven and Wilson, 2004).
Different public and private actors in Andalusia from across the regional innovation system promote entrepreneurship education in the region (see Annex 1)
. While the university offerings focus mostly on connecting high-tech workers and start-ups to entrepreneurship skills,
what some main regional actors do in the field of entrepreneurship education and training. Public universities Universities support entrepreneurship in four ways:(
1) providing workshops on starting a business for free or at very low rates;(2) at seven of the ten universities, supporting the Bancaja Young Entrepreneur Chairs,
3) offering entrepreneurship fairs to connect different stakeholders; and (4) conducting research on promoting entrepreneurship in higher education (Laurent, Periáñez,
and Petit de Gabriel, 2010). Each university has created also specific initiatives and courses to promote entrepreneurship.
For instance, the Economics department at the University of Malaga (UMA) started offering a course on entrepreneurship in 2009.
This is an elective course that all university students can take, although only 200 students took and most of them came from the Economics department.
Andalusia has lacked high quality education in business and entrepreneurship and even more so at the graduate level.
Most of them offer courses on entrepreneurship and business leadership, but not official degree programmes. 8 Technology Transfer Offices (OTRIS) Andalusia Technology Transfer Offices (OTRIS) have seen their responsibilities
It is the main provider of entrepreneurship training in the region. The main target is the entrepreneur,
They also have a very extensive catalogue of entrepreneurship education. For youth, their training programs promote entrepreneurship culture in primary schools
high schools, baccalaureate programs, and vocational training schools, teaching students how to create and manage cooperative firms.
which promotes entrepreneurship in vocational training schools and secondary schools. Their training is based on improving the skills of employed people (in collaboration with the Ministry of Education)
and 2) a university program promoting entrepreneurship, held at all public universities in Andalusia. They also host gatherings called Let s Speak about Enterprise in different educational institutions in Andalusia, with 99 000 people taking part in 2007 and 2008.8.
For instance, in 1999, the San Telmo Institute with the support of MIT created the CREARA program to promote entrepreneurship and the creation of innovative companies in the region.
Opportunities in entrepreneurship education Andalusia has a significant infrastructure for entrepreneurship training in place, providing a foundation upon
Many of the region‘s public universities are engaged already in entrepreneurship education, from special workshops to support for MBA PROGRAMS to internship programs at the technology parks.
Another key strength that the region might develop more is FUNDACION EMPRENDE's extensive entrepreneurship training programmes,
a separation between ministries concerned with entrepreneurship, education, and employment; and the lack of a workforce strategy tied to=cluster‘strategies.
entrepreneurship training in Andalusia takes place in multiple venues. But most commonly emphasized by stakeholders in the Andalusian regional innovation system is the training available at the universities.
There are certainly training efforts in the region that are coordinated with sectors, for instance The english and entrepreneurship education available at technology centres like the Andalusian Stone Technology Centre.
But for the most part, the agencies that offer different types of entrepreneurship training do not target the region‘s 25 clusters,
so had to receive some training in entrepreneurship from RETA. Yet given the breadth of agent involvement in the Andalusian economy,
Thus, they worked with many different types of industries, each with different entrepreneurship opportunities and constraints.
Opportunities for RETA Despite the challenges the redundancy in overall education and training system, the lack of university savvy about technology and entrepreneurship,
With several agencies offering different forms of entrepreneurship training in the region, there is a real need for an intermediary to assist with strategic planning that links the training better with the region‘s other flagship programs,
As the literature on entrepreneurship and human capital indicates RETA is suited particularly well for this role because of the breadth of its networks,
The university system is committed to support labour policy, technology, and entrepreneurship. While most effort of the regional government to promote entrepreneurship
and talent seem to be focused in improving sending Andalusian students to top universities abroad (as in the Talentia program),
by helping them obtain legal residency and connecting them to entrepreneurship resources (for instance in the technology parks).
Thus far, RETA has struggled to find a niche in training, offering small-scale entrepreneurship and IT training programs typically in collaboration with other agencies.
but should help coordinate the regional conversation about human capital development related to entrepreneurship. In particular it can play a pivotal role by helping to link vocational training to the many other efforts.
already the leader in regional entrepreneurship training, to promote innovation and IT training in low-tech SMES.
RETA could help build this link by conducting a strategic planning process for the region‘s entrepreneurship training system.
Fostering entrepreneurship alone does not guarantee that Andalusia can capture the benefits for its distressed labour market.
Refocus entrepreneurship training Refocus entrepreneurship training along the models of the best business schools, with a particular focus on attracting immigrant exchange students (though retaining immigrant entrepreneurs remains out of the region‘s purview.
www. ebgreencorridor. org Entrepreneurship training in Gothenburg, Sweden As described above, the Andalusian public universities offer a few entrepreneurship training programs,
and have plans for entrepreneurship chairs, but in general the offerings are undersubscribed. Given the region‘s interest in entrepreneurship,
as well as the concentration of foreign students and immigrant entrepreneurs, there may be potential to expand the offerings at the university level.
as it invested in technology-based entrepreneurship at the University of Gothenburg and the nearby Chalmers University of Technology (Jacob, Lundqvist, and Hellmark 2003.
The Gothenburg model of entrepreneurship training is based an action entrepreneurship education program, i e.,, the project-based learning model (Rasmussen & Sørheim, 2006.
Programs at both the Chalmers School and the School of economics and Commercial law at the University of Gothenburg are highly selective. 12 A small class of students engage in the entrepreneurship process,
The universities offer office 12 More recently, Chalmers University of Technology and the University of Gothenburg have joined forces to teach entrepreneurship at the higher education level in the region, with the support of the Swedish government
creating the Institute for Innovation and Entrepreneurship (IIE)( http://www. hgu. gu. se/item. aspx?
at present they are trying to integrate their entrepreneurship schools under the project G4e (Gothenburg for Entrepreneurship.
The Gothenburg model provides a useful model for a region that has struggled to launch entrepreneurship programs at the universities.
RETA might play a role in targeting entrepreneurship training resources, specifically a new learning-by-doing program as has been so successful in Gothenburg, at one of the biggest universities.
For further information Chalmers School of Entrepreneurship, http://www. entrepreneur. chalmers. se/cse/School of economics and Commercial law at Gothenburg University, http://www. hgu. gu. se
Although entrepreneurship programs have offered training in e-commerce for many years, experience with global markets has shown that many websites are not appropriate to attract consumers in foreign markets.
Cuadrado-Roura, J. R. & Garcia-Tabuenca, A. Innovative and Creative Entrepreneurship in Spain. International Journal of Foresight and Innovation Policy 5, 1-3: 113-135.
Knowledge-intensive entrepreneurship and human capital. Journal of Small Business and Enterprise Development 10,4: 426-434.
A Longitudinal Study of Technology-Based Academic Entrepreneurs Entrepreneurship: Theory & Practice 31,6: 909-935.
Action-based entrepreneurship education. Technovation 26,185 194. Saxenian, A. 1994. Regional advantage: Culture and competition in Silicon valley and Route 128.
Human Capital Investment, Entrepreneurship and New Firm Creation. Unpublished paper. Shrader, R c. & Siegel, D. 2007.
Entrepreneurship: Theory & Practice 31,6: 936-950. Singh, N & Pereira, A. 2005. The culturally customized Web site:
The role of human capital in technological entrepreneurship. Entrepreneurship Theory & Practice 31,6: 900-910.
Zandniapour, L. & Conway, M. 2003. Gaining Ground: The Labor market Progress of Participants of Sectoral Employment Development Programs.
THE CONTRIBUTION OF RESEARCH ORGANISATIONS Introduction Universities and public and private research organizations play a crucial role in regional economies that rely upon growth-oriented entrepreneurship and business innovation.
one for technology commercialization, one to support research projects and the application process and one for entrepreneurship in the University of Seville.
As a consequence, government programs targeted at promoting entrepreneurship and innovation among Canadian SMES takes on greater significance than it does in many other OECD countries.
and entrepreneurship to grow their future tenant base; strategically planned mixed-use campus expansion is emerging as a key trend that includes space for academic and industrial use
ENTREPRENEURSHIP AND START-UPS Introduction This chapter focuses on two interrelated issues: entrepreneurship and start-ups. It starts with a general policy analysis of the importance of entrepreneurship at national and regional levels.
The next section focuses directly on the current situation in the Andalusia region, concentrating on the stiff challenges that it is currently facing,
as well as the opportunities that can be utilised more effectively. The third section highlights a series of policy recommendations.
The chapter concludes with a set of international=learning models‘which are designed to illustrate what is being done in other regions to face up to the entrepreneurship and start-up challenges
Policy issues Developing a culture of entrepreneurship, including start-ups, continues to be the focus of policy debate.
This section concentrates on the reasons why a culture of entrepreneurship combined with the development of new enterprises are important.
Entrepreneurship policy It is acknowledged widely that entrepreneurship plays a key role in relation to economic development and that entrepreneurs are key agents of change in market economies.
what constitutes entrepreneurship is pinned not easily-down: it is evident in both small and medium-sized enterprises (SMES), as well as large ones;
If Governments were increasingly emphasising the importance of the development of a=culture of entrepreneurship,
The European commission‘s (EC) main policy document, the Entrepreneurship in Europe Green Book (2003) associates entrepreneurship with certain types of behaviour,
At the level of local, regional, national and supernational economies, the EC highlights the importance of entrepreneurship in terms of its contribution to job creation and growth
the EC has committed itself to stimulating entrepreneurship across all EU nations and regions: entrepreneurship is considered to be a major driver of innovation, competitiveness and growth.
Consequently, entrepreneurship is promoted and supported by the EC via a plethora of strategies, policies, programmes and funding regimes, not the least
of which are the structural and cohesion funds, which focus on improving the entrepreneurial environment for start-ups and SMES.
Because a broad policy agenda can be addressed through an emphasis on entrepreneurship, national, regional and local policy-makers increasingly recognise that the task of stimulating a culture of entrepreneurship is driven a politically one.
At the same time, there is general acknowledgment that there are no ready-made models for this. Each nation region and city must experiment
in order to identify the right formula to reap the benefits of stimulating a culture of entrepreneurship in their locality.
EU Strategies affecting entrepreneurship and regions The EU meeting in Lisbon (2000) to respond to the challenges of globalisation and technologic revolution,
which in turn, requires greater levels of entrepreneurship, improved business environments, and development of a strong and sustainable economic base.
The PIMA focus on innovation includes an entrepreneurship and start-up element: For Andalusia, encouragement of an entrepreneurial culture, spirit and activity is a basic strategy for its business development(..
including entrepreneurship and start-ups. At this point it is important to note that Andalusia is expected to lose its Objective 1 status in the next EU funding round;
Assessment of the region This section examines the nature of entrepreneurship in the Andalusia region,
This is followed by a brief analysis of the key institutions responsible for stimulating entrepreneurship and start-ups.
Entrepreneurial profile There are a number of aspects of the Andalusian economy that are relevant from the viewpoint of entrepreneurship and start-ups.
Estadisticas de Sociedades Mercantiles, INE Andalusia‘s entrepreneurship level was assessed by the Global Entrepreneurship Monitor (GEM) in 2006.
The GEM highlights some of the most pertinent entrepreneurship features of the region: Highest scoring aspects:
absence of entrepreneurship in universities and in primary and secondary education, technology transfer, and the role of the universities.
A key issue addressed in the GEM is the entrepreneurship potential or, more specifically, whether the adult population plans to establish a firm in the next 3 years.
and other limitations, there is a need for broader support to entrepreneurship and job creation. Institutions and policies for entrepreneurship Prior to assessing the challenges
and opportunities facing Andalusia, it is helpful to recall the main actors in the entrepreneurship support framework in the region.
Ministry of Economy, Innovation and Science The regional Ministry of Innovation, Science and Enterprise merged in 2010 with the Regional Ministry of Economy,
does seek to promote entrepreneurship and start-ups in its development model. This political commitment springs from awareness that a culture of entrepreneurship is the driving force for innovation
competitiveness and economic growth in all regions, including Andalusia. The region has deployed numerous public instruments and resources to boost the competitiveness and innovative capacity of enterprises.
and entrepreneurship centre as a cross-industry catalyst to accelerate the innovation rate and the creation of high-tech start-ups in the region.
The main institution responsible for the implementation of the approach with regard to entrepreneurship is the ANDALUCIA EMPRENDE Foundation,
and promoting entrepreneurship throughout the region. It has two main goals: Promote a culture of entrepreneurial activity through awareness-raising,
cooperate with other institutions at local, provincial, regional and national level in the design and implementation of entrepreneurship-related projects.
Curiously, for a region which has an extensive range of policies and tools to support entrepreneurship,
Entrepreneurship support: two main issues Two main points are worth reiterating to conclude this section:
Firstly, Andalusia does recognise the importance of entrepreneurship and start-ups. However, there is a strong emphasis on research and development and innovation (R+D+I),
which amounts to a technological biased view of entrepreneurship. The problems connected with current recession,
and youth unemployment, suggest a need for a wider focus on entrepreneurship, including education, vocational educational training, self employment, assistance to all forms of start-ups,
While the main actor with regard to the implementation of entrepreneurship programmes is certainly ANDALUCIA EMPRENDE, there are some overlaps with other institutions,
this being a common feature of the regional support framework for entrepreneurship and SME development.
and opportunities facing Andalusia with regard to entrepreneurship and start-ups. The analysis conducted so far has dwelled on already implicitly the main strengths and weaknesses,
In this context, the regional government should periodically assess the extent to which its entrepreneurship support activities are achieving the desired policy objectives;
The sheer levels of unemployment require the region to support all forms of entrepreneurship and start-ups in all sectors of activity (not simply those closely connected with R&d&i) and by all social groups,
it should initiate as soon as possible a process of transitioning to a more market-oriented and sustainable entrepreneurship and SME development policy.
Based on the 2006 Global Entrepreneurship Monitor (GEM) data, the density of enterprises was approaching the national level.
the sharp economic downturn in Andalusia may stimulate a greater willingness to embrace self employment and other forms of entrepreneurship.
This is clearly something to build on in the region via a greater focus on developing a culture of entrepreneurship at all levels of the education system:
Develop the local entrepreneurial culture The Andalusia government does recognise the need to promote entrepreneurship as the basis for the development of the economic model being pursued by the region.
the Andalusia Innovation and Modernisation Plan (PIMA) and the Research, Development and Innovation Plan of Andalusia (PAIDI) include a set of actions designed to encourage entrepreneurship in universities.
and yet there is a need to develop a stronger culture of entrepreneurship in a region
This should not be restricted to a technologically-oriented view of innovation and entrepreneurship. The high and rising levels of general and youth unemployment necessitate the harnessing of all ideas, talents, sectors, etc. for the future of the region.
Moreover, the focus on entrepreneurship should not be restricted to future labour market entrants. The region could promote the establishment of dedicated (re) training programmes for existing business people (in employment
ANDALUCIA EMPRENDE seems the agency best suited to implementing an integrated approach to developing a culture of entrepreneurship in the region,
including through awareness raising campaign, high profile public events, entrepreneurship competitions, entrepreneurship awards, support (financial and nonfinancial) for start-ups, etc.
Promote self employment to tackle unemployment and diversify the economy The rising levels of unemployment, the need to diversify the economy (e g. away from construction, real estate, etc.)
The current economic situation means that entrepreneurship should be promoted widely. Most people, including Andalusians, recognise the benefits of being their own boss.
However, there might be need a for some new programmes specifically focusing on this type of entrepreneurship.
The Entrepreneurship Action Plan for Wales: Developing a culture of entrepreneurship Description of the approach The Entrepreneurship Action Plan for Wales (EAP) seeks to promote a culture of entrepreneurship in Wales through three key elements:
i) recognising the opportunity: creating a greater awareness of the opportunities and benefits of entrepreneurship in order to encourage more people to start a business
or to grow the business they are in, and to develop a greater entrepreneurial culture within our institutions, communities and businesses;
Rationale for the intervention Although the Andalusia region has recognised the importance of entrepreneurship and has implemented a range of activities,
the approach to developing a culture of entrepreneurship in the region is not as comprehensive,
The Entrepreneurship Action Plan for Wales offers concepts which are suitable for replication by a large region such as Andalusia
i) fostering a culture for entrepreneurship ii) unlocking the potential iii) enterprising communities iv) investing in knowledge
The strategy of the programme was guided by a private sector-led Entrepreneurship Implementation Panel; the operational part of the project was managed by a special enterprise team established within the Welsh Development Agency.
By coordinating the role of different organisations and providing the funding for activities, a coherent approach to the development of entrepreneurship across Wales was established.
if there is effective implementation by all the organisations responsible for delivering the Entrepreneurship Action Plan. The EAP also requires significant levels of medium term political support backed up by financial resources such as through the Structural Funds.
as shown by the Global Entrepreneurship Monitor for Wales, include a noticeable change in the attitudes of the people in Wales towards entrepreneurship and a public sector that increasingly and explicitly supports entrepreneurship across its activities.
Its success has resulted in an increase in new business start-ups. This type of approach would be advantageous in the Andalusia region:
entrepreneurship in its widest sense would be supported, rather than being restricted to an R&d&i focus. For further information Department of Enterprise Innovation and Networks Welsh assembly government Plas Glyndwr, Kingsway Cardiff CF10 3ah Tel:++
The new entrepreneurs also need to be given support both before the start-up phase (entrepreneurship training, business plan, etc.
Rationale for the intervention One of the key initiatives that the Andalusia authorities have pursued in relation to entrepreneurship
However, incubators are not a panacea for entrepreneurship and job creation. The experience of incubators in the EU has been mixed.
as far as entrepreneurship and start-ups are concerned. The proposed evaluation against quantitative benchmarks would enable the region to assess the current incubator policy
Entrepreneurship in Europe, Brussels. EU (2010) Europe 2020: A European strategy for smart, sustainable and inclusive growth.
Global Entrepreneurship Monitor (2006) Andalusia. OECD (2001) Fostering Entrepreneurship, OECD, Paris. OECD (2003) Entrepreneurship and Local Economic Development:
Programme and Policy Recommendations, OECD, Paris. OECD (2009) Fostering Entrepreneurship in Eastern Germany, OECD, Paris. Granados-Cabezas (2010) Diagnostic Report Chapter, this publication.
Wolfe, D. 2010) University Industry Collaboration, this publication. CHAPTER V: SME DEVELOPMENT IN ANDALUSIA Introduction SME development and growth is critical to fostering entrepreneurship, job creation and economic development in Andalusia as a result of the dominance of SMES in the regional economy.
However, the region is currently characterised by a small number of innovative and internationally competitive SMES and a broader mass of firms operating in traditional sectors and supplying local markets.
hence, it emphasises the role of public and private investments in R&d, improved tertiary education, fostered co-operation between industry and university, stronger entrepreneurship, etc.
i e. the entrepreneurship and SME development support system of Andalusia, focusing on four main areas that are relevant for a thriving knowledgebased economy:
iii) entrepreneurship and start-ups; iv) SME development. The main conclusions and policy recommendations for each of these themes make up the remainder of this chapter. 14.
ii) the potential contribution of vocational education and technical skills to entrepreneurship and innovation is appreciated not sufficiently in the region;
iii) entrepreneurship education is still at an incipient stage, in spite of the wide offer of training programmes for entrepreneurs.
Being the current entrepreneurship and innovation strategies mainly based on the promotion of R&d and industry-university technology transfer
This is shown, for instance, by the fact that the ministry of employment is involved not actively in the design of regional innovation and entrepreneurship strategies,
Entrepreneurship education is not as strong in the region as it could be expected, given the emphasis placed by the regional government on entrepreneurship and business innovation.
There is indeed a broad supply of entrepreneur training provided by a very heterogeneous array of actors (universities, technology centres, agencies such as ANDALUCIA EMPRENDEAND RETA),
There is a lack of programmes that tackle entrepreneurship in a more comprehensive and integrated way,
but amongst the ten public universities of Andalusia only the University of Malaga has established recently an elective entrepreneurship course that has, inter alia, poor attendance.
Contribution of research organisations The three key aspects with regard to the role of universities in the regional entrepreneurship and SME development system can be synthesised as follows:
Entrepreneurship and start-ups Andalusia innovation and modernisation strategies (i e. PIMA and PAIDI) stress the importance not only of R&d investments and technology transfer
Entrepreneurship promotion is therefore rightly at the top of Andalusia‘s concern, and one organisation in the regional institutional setting is devoted specifically to this aim (i e.
i) despite remarkable strides in key entrepreneurship indicators, Andalusia has still margins for improvement as regards both business creation and entrepreneurial culture.
The entrepreneurship performance of Andalusia has improved significantly over the last decade, with business density increasing from 51.3%to 63.7%between 1999 and 2007 (Spain:
Total entrepreneurial activity (i e. the entrepreneurship potential measured as the number of people actively engaged in launching a new business) is also still lower in Andalusia than in the whole Spain.
Key future opportunities Developing entrepreneurship skills to upgrade local industries Universities are being geared up to be conduits for knowledge and innovation in the new economy but as the OECD study reports, inappropriate
and the experience of the University of Malaga‘s entrepreneurship programme show how entrepreneurship courses in the region tend to go undersubscribed.
Balancing generic entrepreneurship development programmes with tailor-made initiatives aimed at Andalusia‘s strategic sectors is imperative.
This means creating new entrepreneurship and innovation programmes for Andalusia‘s strong tourism industry together with the need to offer schemes that can help scale up its traditional agricultural industry
Harnessing the entrepreneurship potential of the youth and migrant population The need for greater strategic direction becomes more significant
Entrepreneurship works when new firms are formed, when new skills are developed and deployed, and when new talent is able to work with new products and services.
Wasted youth potential can have a profound adverse impact on entrepreneurship and economic development in the future.
Refocus entrepreneurship education along the models of the best business schools, trying to attract immigrants and to exploit the advantage of Andalusia s geographical location.
Entrepreneurship and start-ups Further develop entrepreneurial culture in the region, including by targeting the new unemployed through self employment programmes.
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