Encouraging Entrepreneurship: Britain's New Enterprise Program

Abstract

ENCOURAGING ENTREPRENEURSHIP: BRITAIN'S NEW ENTERPRISE PROGRAM Along with most western countries, Britain experienced severe economic turbulence in the 1970s. Companies fought to survive as costs rose and competition from low labor-cost centers increased. Many businesses experienced insolvency and subsequent liquidation; other closed down corporate headquarters and contracted operations. As a result, unemployment grew to a level never before believed politically acceptable. The significance of small firms as providers of new jobs, new services, and new products became more apparent, along with the need, highlighted by the Bolton Report of 1971, to harness the entrepreneurial spirit by encouraging people to start new firms and, moreover, to help them to survive. The problem was how to do it. Clearly, since the number of potential new firms is, by definition, very large, and since resources are limited, it was important to identify the specific needs of particular groups and to design appropriate assistance. Schemes were set up by government, by local authorities, by companies, and by educational institutions. The New Enterprise Program (NEP) is one of these cooperative efforts. This program offers courses aimed at helping the potential entrepreneur to succeed, and the success rate is dramatic. Of the 252 people who attended the first 19 programs, 96 percent started a business following graduation. The program and the extent to which it fits the needs of participants are discussed in this article. BACKGROUND The first New Enterprise Program was held in Manchester Business School in 1977, sponsored by the Manpower Services Commission (MSC). Encouraged by the apparent success of the program, the MSC determined to expand it nationwide. Two course levels emerged. The first, typifying the NEP as originally envisaged, attempted to identify employment. These courses would be placed in the University Business Schools. The second type of course, called the Small Business Course, was aimed at those who sought self-employment or who wished to develop small businesses that employed only one or two people. These were placed in the more practically oriented Polytechnics and Colleges, similar to junior and community colleges in the United States. Patterned closely on the original Manchester Programs, NEPs were established in Durham University Business School in 1978, London Business School (LBS) in 1979, and the Scottish Business School in 1980. The initial format of the program was the same in each institution: four weeks of full-time residence followed by twelve weeks of field work with three two-day feedback sessions at equal intervals. The MSC paid all tuition and gave a training or living allowance to each participant. Although the programs were similar in outline, the format and philosophy varied substantially according to the styles and attitudes of the program directors. Despite the differences, common issues emerged. The major ones to be discussed in the first part of this article are: * identifying the type of person who would benefit most * selecting participants * timing of the intervention * course design and content * the program director THE NEW ENTERPRISE PROGRAM The Participants Any program must focus on the needs of its target group, and the extent to which they are likely to be willing to participate. For many educators and participants, the idea of a course for entrepreneurs is a contradiction in terms, since entrepreneurs are thought to avoid educational institutions. It is, therefore, especially important to understand the characteristics of those who would apply for a course in entrepreneurship, particularly a fairly long one, and to decide which applicants are most likely to benefit from the experience. One of the reasons for the view that an educational experience could be unattractive to entrepreneurs is that they are often viewed as having low educational attainment, a characteristic which Stanworth and Curran describe as contributing to their social marginality. …

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