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
Entrepreneurship and SMES Innovation in Romania Nelu Eugen Popescu a *alucian Blaga University of Sibiu, Faculty of Economic sciences, 17 Dumbrä vii Avenue, Sibiu 550324, Romania
The aim of this article is to present some theoretical connections between entrepreneurship, innovation and small and medium
Entrepreneurship, Innovation, SMES (Small and medium enterprises 1. Introduction Entrepreneurship is a term that does not have accepted an general definition,
the concept evolved over time from Cantillon (1775), to whom the first academic mention are attributed, to Schumpeter and its creative destruction
specific instrument of entrepreneurship. He defined entrepreneurship as â€oean 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.
Both entrepreneurship and innovation are 2 broad concepts without a unanimously accepted definition and are
Schumpeterian theory about entrepreneurship were the entrepreneur was seen as the personification of the innovation (Hagedoorn, 1996),
connections between entrepreneurship, innovation and small firms has been studied over time by various scholars and some even defined entrepreneurship as follows â€oeinnovation by newly formed independent firms (Kirchhoff
1994 The recent economic downturn is regarded as one of the worst since the 1930s crisis and its effects are still
and job creation by SMES issues generated an interest in the study of entrepreneurship (Wennekers & Thurik, 1999
A number of obstacles may limit entrepreneurship, the creation and development of innovative start-ups and
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
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: 10.1787/736170038056 CNIPMMR (2013)( coord. Nicolescu O.),Carta Albä a IMM-urilor din Romã¢nia †ediå£ia a XI-a, White Charter of Romanian SMES †11th
Drucker, P. F. 1985) Innovation and Entrepreneurship; Practice and Principles, New york: Harpercollins Publishers Inc.,NY 10022
Entrepreneurship, SMES and Local Development in Andalusia, Spain A REVIEW BY THE LOCAL ECONOMIC AND
ENTREPRENEURSHIP, SMES AND LOCAL DEVELOPMENT IN ANDALUSIA, SPAIN A review by the Local Economic and Employment Development (LEED) of the Organisation for
This case study on †Entrepreneurship, SMES and Local Development†in Andalusia, Spain, has been undertaken by the Local Economic and Employment Development (LEED) Programme of the
and provided invaluable insights on the Andalusia entrepreneurship and SME development system: the Andalusia Technology Park (PTA) of Malaga;
Entrepreneurship Agency (ANDALUCIA EMPRENDE; the Andalusia Entrepreneur Confederation CEA); ) the Andalusia Innovation and Development Agency (IDEA;
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 ï Chapter V: SME development, by Andrew Cumbers ï Conclusions, by Marco Marchese and Jay Mitra
Entrepreneurship...9 SME development...10 RETA...12 Policy recommendations...13 INTRODUCTION...15 CHAPTER I: ECONOMIC AND INSTITUTIONAL OVERVIEW OF ANDALUSIA...
ENTREPRENEURSHIP AND START-UPS...83 Introduction...83 Policy issues...83 Assessment of the region...86 Policy recommendations...
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 Tecnolã gicos de Andalucã a †Andalusia Technology
entrepreneurship and SME development and how such capacity is affected by regional and local policies. Further specific objectives were to:
organisations to support entrepreneurship and SME development; iii) assess how to fill policy gaps and improve existing policies
entrepreneurship and SME development, and how its impact can be enhanced The study was carried out by an international review panel consisting of 6 international experts
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
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.
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: primary, secondary, vocational and tertiary Immigration is an entrepreneurial resource that should be exploited better
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. This can lead to confusion for the business sector (multiplicity of organisations, programmes, etc.
entrepreneurship and SME development. Firstly, it has connected coordinated and the policy support to entrepreneurship and SME development provided by all the actors of the Andalusian innovation
system, including technology parks, technology centres and universities, and ensured that their support is coherent,
institutional overlaps that have characterised the entrepreneurship and SME support system in the past The experience of RETA should be capitalised on
policy recommendations to strengthen the entrepreneurship and SME development system of Andalusia Box 1. Main policy recommendations
ï 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 ï Further develop entrepreneurial culture in the region, including by targeting the new unemployed
ï Continue to coordinate policy actors in the Andalusian SME and entrepreneurship support system and ensure coherence in policy design and delivery.
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
The review focuses attention on entrepreneurship, SMES and local development. In examining these components of the regional economy and the extent to which entrepreneurship and SMES
contribute to innovation, the review aims to investigate the capacity of the region to support new firm
entrepreneurship constitute individual chapters for this report, while the aspect of governance is mainstreamed in all four thematic chapters
Entrepreneurship and Economic Development Networks Input Factors for Framework Conditions Key Drivers of Innovation and
entrepreneurship. Experience also generates other intangible assets, such as social capital and networks vital to both the creation and growth of firms in regions dominated by a high concentration
market-related factors most critical to entrepreneurship in all its forms:(1) higher education;(2 extensive work experience;(
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, as well as new forms of organisation to realise opportunities,
Entrepreneurship is evident in both small and medium -sized enterprises (SMES), as well as large ones, in the formal and informal economy;
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
being exhorted to court entrepreneurship as part of an effective economic development strategy According to the revised Lisbon Strategy, this is possible through a focus on making a place attractive
entrepreneurship policies in Andalusia. It identifies the major considerations for policy development in this field, assesses the current performance of 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
entrepreneurship and SME policy context. This report has contributed to chapter 1, outlining the main economic and institutional aspects of Andalusia
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, providing a variety of perspectives on the region and its policies
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
Baumol W.,†Entrepreneurship: Productive, Unproductive, and Destructiveâ€, Journal of Political Economy, n. 98, pp. 893-921
OECD, 2001, Fostering Entrepreneurship, OECD, Paris CHAPTER I: ECONOMIC AND INSTITUTIONAL OVERVIEW OF ANDALUSIA Table 1. Key statistics of Andalusia
its economic policies as well as the importance given to business innovation and entrepreneurship as the main drivers of local development
EXTENDA, the entrepreneurship agency ANDALUCIA EMPRENDE, the R&d-oriented CTA Corporaciã n Tecnolã gica de Andalucã a) and RETA (Red de Espacios Tecnologicos de Andalucã a
the entrepreneurship and innovation system. The table below provides a glimpse on the main activities
entrepreneurship programmes aimed at specific social groups (e g. women, youth, university graduates disadvantaged people, etc. emerging and strategic industries (e g. technology-based firms, creative industries
These three different institutions are important players in the entrepreneurship and innovation system of Andalusia.
to the whole new theme of entrepreneurship and innovation, and the 2003 Second Modernisation Plan
The four most relevant to entrepreneurship and SME development are listed those below which, with the exception of PIMA (2005-2010), cover the period
billion to entrepreneurship and SME development over six years, with other complementary areas such as †knowledge society†and †human capital†that also benefit local firms
entrepreneurship and innovation system, which are garnered in four categories: i) technology and knowledge spaces (e g. technology parks;
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,
fostering entrepreneurship and innovation. The following sections examine these debates, with particular focus on the role of education and labour policy in regional innovation.
entrepreneurship. A final section describes the Spanish context Role of human capital in the knowledge economy:
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
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. The more prior business ownership experience an entrepreneur brings,
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
research, technology transfer and entrepreneurship culture as engines of growth and economic development. This new economic development paradigm is reflected also in the 2007 Andalusia Plan
unemployed and employed workers (Formacã on Profesional por el Empleo †FPL), entrepreneurship education (partly),
over university training to obtain skills that will improve entrepreneurship. The II Andalusia Plan for
better to innovation and entrepreneurship †for instance, offering expanded on-line and foreign language training 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, a variety of other programs help traditional businesses and low-skilled workers
gain the capabilities they need to innovate more effectively. Below is a description of 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
(3) offering entrepreneurship fairs to connect different stakeholders; and (4) conducting research on promoting entrepreneurship in higher education (Laurent, Periã¡
à ez, 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.
quality education in business and entrepreneurship and even more so at the graduate level. Economics and business administration departments in public universities are disconnected often from the local
Most of them offer courses on entrepreneurship and business leadership, but not official degree programmes 8
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. For the highest level of vocational training students, ANDALUCIA EMPRENDE offers a
which promotes entrepreneurship in vocational training schools and secondary schools. Their training is based on improving the skills of
entrepreneurship, held at all public universities in Andalusia. They also host gatherings called †Let†s
to promote entrepreneurship and the creation of innovative companies in the region Corporaciã n Tecnolã gica de Andalucã a (CTA
Opportunities in entrepreneurship education Andalusia has a significant infrastructure for entrepreneurship training in place, providing a
foundation upon which the region and RETA can build. Many of the region†s public universities are
already engaged in entrepreneurship education, from special workshops to support for MBA PROGRAMS to internship programs at the technology parks.
might develop more is FUNDACION EMPRENDE€ s extensive entrepreneurship training programmes, including its collaborations with the Talentia programme and the agency EXTENDA to
entrepreneurship, education, and employment; and the lack of a workforce strategy tied to †clusterâ€
As described above, entrepreneurship training in Andalusia takes place in multiple venues. But most commonly emphasized by stakeholders in the Andalusian regional innovation system is the
coordinated with sectors, for instance The english and entrepreneurship education available at technology centres like the Andalusian Stone Technology Centre.
that offer different types of entrepreneurship training do not target the region†s 25 clusters, or even the
receive some training in entrepreneurship from RETA. Yet, given the breadth of agent involvement in
Thus, they worked with many different types of industries, each with different entrepreneurship opportunities and constraints.
university savvy about technology and entrepreneurship, and the many disconnects in the system †there are opportunities for RETA to assume a new role in the region.
entrepreneurship training in the region, there is a real need for an intermediary to assist with strategic
As the literature on entrepreneurship and human capital indicates, RETA is suited particularly well for this role because of the breadth of its
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), there is also a remarkable opportunity to retain the large number of foreign
for these students, by helping them obtain legal residency and connecting them to entrepreneurship resources (for instance in the technology parks
offering small-scale entrepreneurship and IT training programs typically in collaboration with other agencies. RETA need not conduct training itself,
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.
FUNDACION EMPRENDE, already the leader in regional entrepreneurship training, to promote innovation and IT training in low-tech SMES.
for the region†s entrepreneurship training system. Ultimately, however, better information and planning will not lead to results
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.
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
Developing an entrepreneurial university takes time, and with limited resources, it may be best to focus on just one of the public universities.
as it invested in technology-based entrepreneurship at the University of Gothenburg and the nearby Chalmers University of Technology (Jacob, Lundqvist, and Hellmark
The Gothenburg model of entrepreneurship training is based an action entrepreneurship education program, i e.,, the project-based learning model (Rasmussen & Sørheim, 2006.
A small class of students engage in the entrepreneurship process from idea development, team building,
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?
entrepreneurship schools under the project G4e (Gothenburg for Entrepreneurship space and access to a network of mentors.
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.
Chalmers School of Entrepreneurship, http://www. entrepreneur. chalmers. se/cse /School of economics and Commercial law at Gothenburg University
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
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
Technology-Based Academic Entrepreneurs Entrepreneurship: Theory & Practice 31,6: 909 -935 National Center on Education and the Economy, 2007, Under One Roof:
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:
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. WASHINGTON DC: Aspen Institute
economies that rely upon growth-oriented entrepreneurship and business innovation. The funding infrastructure and commercialization activities of research organizations within these economies are
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
changing with the parks placing greater emphasis on supporting incubation and entrepreneurship to grow their future tenant base;
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
face up to the entrepreneurship and start-up challenges, as a means of reinforcing the preceding policy
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.
It has also become apparent that what constitutes entrepreneurship is pinned not easily-down: it is evident in both small
and medium-sized enterprises (SMES), as well as large ones; in the formal and informal economy; in
The European Commission†s (EC) main policy document, the Entrepreneurship in Europe Green Book (2003) associates entrepreneurship with certain types of behaviour,
such as a willingness to engage in risk-taking, desire to achieve independence, and self-fulfilment of the entrepreneur.
entrepreneurship in terms of its contribution to job creation and growth, competitiveness, unlocking individual potential and wider benefits to society as a whole
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.
identify the right formula to reap the benefits of stimulating a culture of entrepreneurship in their
EU Strategies affecting entrepreneurship and regions The EU meeting in Lisbon (2000) to respond to the challenges of globalisation and technologic
which in turn, requires greater levels of entrepreneurship, improved business environments, and development of a strong and sustainable economic base.
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
amount of funding for its activities, including entrepreneurship and start-ups. At this point it is
This section examines the nature of entrepreneurship in the Andalusia region, such as the number of births and deaths of firms,
followed by a brief analysis of the key institutions responsible for stimulating entrepreneurship and start-ups. It terminates with an analysis of the key challenges
entrepreneurship and start-ups. Firstly, Andalusia has traditionally been underdeveloped an region of Spain, although in recent decades there has been a remarkable catch up effect,
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
ï Highest scoring aspects: access to physical infrastructure, promotion of growth, government programmes, and commercial/services infrastructure
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
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
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 entrepreneurship centre as a cross-industry catalyst to accelerate the innovation rate and the creation of high-tech start-ups in the
entrepreneurship is the ANDALUCIA EMPRENDE Foundation, which is discussed below ANDALUCIA EMPRENDE Since 1999 ANDALUCIA EMPRENDE has been responsible for creating and consolidating
enterprises and promoting entrepreneurship throughout the region. It has two main goals ï Promote a culture of entrepreneurial activity through awareness-raising,
design and implementation of entrepreneurship-related projects. To accomplish its extensive remit EMPRENDE has a network of:
which has an extensive range of policies and tools to support entrepreneurship, there does not appear
Entrepreneurship support: two main issues Two main points are worth reiterating to conclude this section
ï 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, not least the steep rise in general
need for a wider focus on entrepreneurship, including education, vocational educational training, self employment, assistance to all forms of start-ups,
with regard to the implementation of entrepreneurship programmes is certainly ANDALUCIA EMPRENDE, there are some overlaps with other institutions,
common feature of the regional support framework for entrepreneurship and SME development. The significant levels of resources currently available appear to have spawned
Andalusia with regard to entrepreneurship and start-ups. The analysis conducted so far has already implicitly dwelled on the main strengths and weaknesses,
which its entrepreneurship support activities are achieving the desired policy objectives; this would enhance the targeting of activities and resources
levels of unemployment require the region to support all forms of entrepreneurship and start-ups in all
sustainable entrepreneurship and SME development policy. It is extremely unlikely that the current extensive and dense institutional network of enterprise support will continue in the new emerging
Global Entrepreneurship Monitor (GEM) data, the density of enterprises was approaching the national level. The same report also suggested that the population of the region has a fairly high level of
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: primary, secondary vocational and tertiary
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.
PAIDI) include a set of actions designed to encourage entrepreneurship in universities. The above is a
and yet there is a need to develop a stronger culture of entrepreneurship in a region which
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
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 current economic situation means that entrepreneurship should be promoted widely Most people, including Andalusians, recognise the benefits of being their own boss.
specifically focusing on this type of entrepreneurship. ANDALUCIA EMPRENDE is placed well to take responsibility for a more targeted programme of support for self employment.
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; ii) creating enterprises: creating a greater number of sustainable start-up businesses with potential for further growth, particularly by under
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, subject to the
i) fostering a culture for entrepreneurship ii) unlocking the potential iii enterprising communities iv) investing in knowledge and experience v) bridging the funding gap and
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
activities, a coherent approach to the development of entrepreneurship across Wales was established A multi-million Euro programme for funding was made available through European structural funds to
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
entrepreneurship training, business plan, etc. as well as after initiation of activities (coaching mentoring, consultancy, etc Relevance to Andalusia and considerations for adoption
entrepreneurship and start-ups is the establishment of business incubators. International best practice has demonstrated their value.
However, incubators are not a panacea for entrepreneurship and job creation. The experience of incubators in the EU has been mixed.
Andalusia, 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 and whether
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
university, stronger entrepreneurship, etc As a result, these themes have assumed top importance in the policy agenda of the regional
i e. the entrepreneurship and SME development support system of Andalusia, focusing on four main areas that are relevant for a thriving knowledge
iii) entrepreneurship and start-ups; iv) SME development. The main conclusions and policy recommendations for each of
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 The number of Andalusia†s people aged between 25 and 34 with university and post-compulsory
Being the current entrepreneurship and innovation strategies mainly based on the promotion of R&d and industry-university technology transfer, the regional government
actively involved in the design of regional innovation and entrepreneurship strategies, although it is responsible for vocational education, self employment programmes,
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
There is a lack of programmes that tackle entrepreneurship in a more comprehensive and integrated way, looking at the broad set of skills that new entrepreneurs need to
established an elective entrepreneurship course that has, inter alia, poor attendance. The low take-up rate of this course may also flag that Andalusia†s entrepreneurial culture remains feeble, although the
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
Entrepreneurship promotion is therefore rightly at the top of Andalusia†s concern, and one organisation in the regional institutional
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
Developing entrepreneurship skills to upgrade local industries Universities are being geared up to be conduits for knowledge and innovation in the new
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 and its fledging
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.
profound adverse impact on entrepreneurship and economic development in the future. Diversity through immigration can also be a positive feature of regions as the success of Silicon Valley†s many
ï 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 ï Further develop entrepreneurial culture in the region, including by targeting the new unemployed
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