Author: Francois
When we speak about the determinants of one country’s level of entrepreneurship, the first thing which comes to my mind is the state intervention. Indeed the state, with the aim of fostering entrepreneurship, can establish a more or less favourable entrepreneurial climate with for example a low rate of taxation, a flexible labour market or an easy access to capital.
But surprisingly, when we compare two countries such as France and the USA which both try to foster entrepreneurship through state intervention, it’s quite amazing to see that the results of those policies are very different. Indeed the USA have the highest rate of business ownership in the total workforce and the highest TEA (Total Entrepreneurial Activity) among the OECD countries with 10%, whereas on the opposite France’s TEA is lower at around 4%.
Thus the state intervention isn’t the only determinant of entrepreneurship, albeit it is very important.
So, what else can influence entrepreneurship? What else can drive people to start their own business?
Maybe it’s people themselves! Indeed one country’s culture can partly explain the level of entrepreneurship. Thus, if we still compare France and the USA, we can understand why there is such a different TEA. The US culture claims to encourage risk-taking. Failure is considered as a step for the success, whereas in France, the culture does not encourage risk-taking, and French are afraid of failure. A quite impressive figure confirms this: for 50% of French, the fear of failure is a barrier for starting a new business. Whereas in the USA, entrepreneurs are considered an important part of the economy’s foundation. In France they are not; they are even sometimes considered no better than thieves.
Finally, it emerges from this that even if the state intervention is important for determining the level of entrepreneurship, culture plays a huge role. Thus it can be interesting for France and its president Nicolas Sarkozy to think about trying to change the negative perception of entrepreneurship and entrepreneurs and be inspired by the American model where “entrepreneurship is woven into the fabric of North American Society” (Alison Morrison).
Monday, February 25, 2008
Sunday, February 24, 2008
Entrepreneurship and the academy
Author: Charles
According to Francois, entrepreneurship is partly explained by culture and I think that he offers a good example in his article to prove this trend: “the USA have the highest rate of business ownership in the total workforce and the highest TEA (Total Entrepreneurial Activity) among the OECD countries with 10%, whereas on the opposite France’s TEA is lower at around 4%.“ We find this same trend in the way entrepreneurship is taught in school. The teaching of entrepreneurship is not the same in France as it is in the USA, or for that matter in other countries in Europe such as the UK, Spain, Italy, Netherlands, and Scandinavia. According to Ingrid Verheula, Niels Bosmaa, Fonnie van der Nol and Tommy Wong, to create one's own business is encouraged earlier in the USA than in France and American teachers tackle this topic also at high school. In fact high school students have classes and projects about entrepreneurship. In France it is not true, French students begin to tackle the question of entrepreneurship only in the university or in business school. Moreover, this teaching varies depending on whether the student is in a particular component of the French education system. It emerges from many studies on this topic that the entrepreneurship teaching in France is not structured or only a few. Indeed it stays the most of the time the work of solitary teachers and without results on the students. Actually, the entrepreneurship’s teaching in France lacks recognition and it is not regards as real matter. So I do not know if you have the same opinion as me but I think that if we introduce as early as possible the entrepreneurship’s teaching in the education system, that will change student’s mentality, their aversion to the risk and we could see come out a whole new generation of entrepreneurs ready to create and to set up new businesses. What do you think about that?
According to Francois, entrepreneurship is partly explained by culture and I think that he offers a good example in his article to prove this trend: “the USA have the highest rate of business ownership in the total workforce and the highest TEA (Total Entrepreneurial Activity) among the OECD countries with 10%, whereas on the opposite France’s TEA is lower at around 4%.“ We find this same trend in the way entrepreneurship is taught in school. The teaching of entrepreneurship is not the same in France as it is in the USA, or for that matter in other countries in Europe such as the UK, Spain, Italy, Netherlands, and Scandinavia. According to Ingrid Verheula, Niels Bosmaa, Fonnie van der Nol and Tommy Wong, to create one's own business is encouraged earlier in the USA than in France and American teachers tackle this topic also at high school. In fact high school students have classes and projects about entrepreneurship. In France it is not true, French students begin to tackle the question of entrepreneurship only in the university or in business school. Moreover, this teaching varies depending on whether the student is in a particular component of the French education system. It emerges from many studies on this topic that the entrepreneurship teaching in France is not structured or only a few. Indeed it stays the most of the time the work of solitary teachers and without results on the students. Actually, the entrepreneurship’s teaching in France lacks recognition and it is not regards as real matter. So I do not know if you have the same opinion as me but I think that if we introduce as early as possible the entrepreneurship’s teaching in the education system, that will change student’s mentality, their aversion to the risk and we could see come out a whole new generation of entrepreneurs ready to create and to set up new businesses. What do you think about that?
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