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Vassiliou: European kids must learn to be risk-takers

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Published 03 May 2012

European schools must teach students to become more entrepreneurial and develop a positive attitude towards risk-taking, EU Commissioner Androulla Vassiliou said in an exclusive interview with EurActiv.

Androulla Vassiliou is the EU commissioner in charge of education, culture, multilingualism, youth and sport. She has been representing Cyprus in the College of EU Commissioners since 2006, when she was appointed health commissioner in place of the departing Markos Kyprianou, who in turn became Cypriot foreign minister.

She spoke to EurActiv Managing Editor Daniela Vincenti. To read a shortened version of this interview, please click here.

Europe is currently facing a number of economic, social, and environmental challenges; the most critical perhaps is high unemployment among young people. What measures need to be taken to respond to these problems and challenges?

Unemployment, especially among young people, is a major challenge for Europe. Among the young, it is over 22 % on average; in six member states [Spain, Italy, Greece, Portugal, Slovakia, Lithuania] it is between 30 % and 50%. This is not only a terrible waste of talent and resources but also a major obstacle to growth and social cohesion. That is why the EU has put youth unemployment at the top of its agenda. On 18 April, the Commission approved a major new employment package, which sets out ways for member states to encourage hiring by reducing taxes on labour or supporting more business start-ups.

It also identifies the areas with the biggest job potential for the future: the green economy, health services and ICT [information and communications technology].

Our estimates show that 20 million jobs could be created by 2020 in the green economy and 8 million in the health sector. Jobs for ICT specialists have been growing by 3% a year, even during the crisis, and Europe will be short of 700,000 ICT practitioners by 2015 according to current trends.

We need to better prepare our young people to fill these jobs and create new ones. Having the right skill set is crucial. Studying abroad or taking up a work placement in a foreign company, for example, improves language skills, adaptability and self-confidence.

That is why, in parallel to the employment package, I launched a new awareness-raising campaign, 'We Mean Business', which aims to encourage companies to create more trainee placements to boost young people's skills and employability.

The Commission will provide at least €275 million this year in funding from our Leonardo Da Vinci and Erasmus programmes to support 130,000 job placements abroad. We hope to fund a further 150,000 placements in 2013. 

What can Europe do to help develop more young entrepreneurs?

According to our Eurobarometer survey, only 45% of European citizens prefer to be self-employed. Attitudes are shaped from an early age and this is why the EU is committed to fostering the entrepreneurial mindsets and skills of young people through education at all levels, from primary school to university.

We are supporting various projects to encourage this. For example, Erasmus for Young Entrepreneurs offers EU funding for new or aspiring entrepreneurs who want to learn from business experiences in other European Union countries.

The EU has also set up the European Institute of Innovation and Technology [EIT] which aims to increase European sustainable growth and competitiveness by strengthening innovation in the EU. The EIT brings together excellent higher education institutions, research centres and innovative business in hubs known as knowledge and innovation communities [KICs].

The KICS support start-up businesses and offer masters and PhD programmes with a strong entrepreneurial component, giving students access to real business experience during their studies. The support offered by the EIT's innovation centres ranges from business plan coaching to seed funding and finding clients.

The first successful start-up companies were recently honoured at the first EIT Entrepreneurship Awards and a team of students from the 'Inno Energy' KIC presented their project to a distinguished audience including former US President Bill Clinton at the New York finals of the third annual Hult Global Case Challenge on 26 April.

The team, which competed against thousands of students, representing over 130 countries and six continents, epitomises the ideas and entrepreneurial drive which we want to foster through the EIT.

Mario Monti proposed in Italy that young people starting a business could do so with €1, instead of €10,000. He said he was trying to make it easier for the young Italian ‘Bill Gates’ to come to the fore. Do you think this is the kind of measures we need?

Reducing the cost of starting up a business is a good first step but it is not enough. The Commission is urging member states to introduce simpler and faster administrative procedures to encourage new business start-ups and to make entrepreneurial careers more attractive for young people.

Our Europe-wide objective is to reduce the start-up time for new enterprises to three days and the cost to €100 by the end of this year. A lot of progress has already been achieved: in 2011, the average time and cost to start up a private limited company was 6.5 days and €397. In 2007, it was 12 days and € 485 and, in 2002, it took an average of 24 days to launch a firm at a cost of € 827.

In complement to such measures, we are working on measures to make it easier to sell a business as well as to restart after a business failure.

What steps can educational systems take to promote entrepreneurship?

Entrepreneurship education is rarely based on a textbook course and there is much more to it than teaching someone to run a business.  Educational systems should continue to embed entrepreneurship. We need to instil our young people with a positive attitude towards risk-taking and not to be afraid to start again if they experience failure.

The EU will continue to support entrepreneurship education initiatives through the EIT and our new 'Erasmus for All' programme, which is due to start in 2014. Our Erasmus for All proposals, which are now under discussion in the European Parliament and Council, would allocate more funding for investment in entrepreneurship, employability and creativity, as well as enhancing cooperation between educational institutions, youth organisations, businesses, local and regional authorities and NGOs.

The new programme would create 400 'Knowledge Alliances' and 'Sector Skills Alliances'. The former are large-scale partnerships between higher education institutions and businesses to promote creativity, innovation and entrepreneurship by offering new learning opportunities and qualifications.

The sector skills alliances will promote partnerships between education and training providers and businesses to promote employability by creating new sector-specific curricula and innovative forms of vocational teaching and training.

How is the Commission funding entrepreneurship education and programmes to equip young people with better employability skills under the Erasmus initiative?

The Erasmus programme supports entrepreneurship education in higher education institutions and through individual grants for students to experience education and job placement opportunities abroad. I hope to increase this support under the new Erasmus for All programme.

Universities and enterprises can apply for projects to develop new curricula and/or to improve cooperation to better equip students with the skills needed in the world of work. In the 2012 'call' [invitation to present project bids for funding] that closed in February, 250 applications were submitted.  This represents an increase of 60% compared to 2007.

More than 230,000 students are supported through Erasmus grants each year. While the majority opt to study abroad for up to 12 months, one in six (around 40,000) are choosing to take up work placements abroad (this number has doubled since this possibility was introduced in 2007).

Some of the study courses are more entrepreneurial in nature, such as business administration. But the knowledge acquired through all Erasmus courses deliver valuable skills, such as the ability to speak a foreign language and to work in multicultural teams, where adaptability, problem solving and interpersonal skills are paramount.

In addition, teaching staff from the higher education institutions can receive funding for training to develop innovative teaching methods.

Does this also mean that there should be more cooperation and co-funding between DG Education and DG Enterprise and Industry?

The Commission Directorate General for Education and Culture [DG EAC] has a strong tradition of collaboration with their counterparts in the Enterprise and Industry DG  – especially in the field of entrepreneurship education. 

Examples of this collaboration include the 2006 Communication on "Fostering the Entrepreneurial Mind-set through Education and Learning", 2008 survey on Entrepreneurship in Higher Education, 2009 European Year of Creativity and Innovation, and the setting up of high-level reflection groups on entrepreneurship education. My own counterpart, Vice President Antonio Tajani [Industry and Entrepreneurship], is very supportive of our 'Youth on the Move' and 'We Mean Business' campaigns.

Very recently, DG EAC established a new working group on entrepreneurship education, which involves the Enterprise and Employment DGs, as well as the European Centre for the Development of Vocational Training, European Training Foundation and 33-country Eurydice network, which provides information on and analyses of European education systems and policies. One of the aims of this group will be to create a handbook on entrepreneurship education to support member states' policies in this area. DG Enterprise, in collaboration with DG EAC, will also organise two workshops for teachers on this theme.

What else can be done to make sure this generation is not lost? Is there a case for more harmonisation on education?

Our new Erasmus for All programme will make an important contribution to improving young people's skills, personal development and employability. Under my proposal, up to 5 million people will receive EU grants to study, train or volunteer abroad in 2014-2020 which is nearly twice as many as today.

The Commission has no intention, or competence, to harmonise education in Europe. But I feel very strongly, especially in the current political and economic context, about the need to facilitate the exchange of information so that countries can better learn from each other.

This will improve the skills-base and reduce imbalances in labour markets. I am committed to working with governments to achieve these objectives. The young people of today are responsible for the future prosperity of Europe; we cannot afford to have a 'lost generation'. There is no time to lose in addressing our future needs now – and getting Europe back on the path of sustainable growth and job creation.

COMMENTS

  • As a culture that the EU should be more open to risk. Telling kids to take more risk, while no one will take the risk to hire them, or use their services, is double think.

    I actually was a policy officer for EAC in the Youth Unit, As a US citizen at 25 yrs old after I worked in the Parliament. After, I tried to start a communications consulting business but found that EU business was so opposed to Advanced data and analytics based methods for communications, I was forced to head back to the US. Ironic those methods were the reason I was granted exception to work in the institutions in the first place.

    Cheers,

    Chandler T Wilson
    ct@chandlerthomas.com

    By :
    Chandler
    - Posted on :
    05/05/2012
  • As a culture I think the EU should be more open to risk. Telling kids to take more risk, while no one will take the risk to hire them, or use their services, is double think.

    I actually was a policy officer for EAC in the Youth Unit, as a U.S. citizen at 25 yrs old. After the EC I worked in the Parliament. After that, I tried to start a communications consulting firm. I found EU business was so opposed to new methods and ideas, such as an analytics based strategy, I was forced to head back to the USA, where these skills are in high demand. Ironically, the former methods were the reason I was granted exception to work in the institutions in the first place.

    Cheers,

    Chandler T Wilson
    ct@chandlerthomas.com

    By :
    Chandler
    - Posted on :
    05/05/2012
  • I am not convinced that the main barrier is the cost and time to start a company, although is some EU countries, it was prohibitive at some point.

    To me, there are two big questions.

    Is starting a new initiative worth it? It will certainly require years of very hard work and personal sacrifices. Consequently, the result of success must be compelling. In France, tne Francois Hollande has announced intentions to tax the very rich heavily; France is also the country where a majority of yound people polled say that their dream is to become civil servants.

    The Commissioner also proposes schools to teach a risk positive attitude. But in reality, society around us is becoming more and more risk adverse.

    It will take a massive effort by schools to counter a prevailing "risk aversion culture"

    As a consumer, in dealing with the service arm of larger companies, I perceive an increasing tendency to "play it by the book" in spite of common sense saying it is nonsense.

    We are obliged to "sign" ever increasing reams of terms and conditions to get access to simple internet based services.

    The UK goverment has felt the need to review and reduce a set of health and safety rules that have run amok, leading restaurants to bar toothpicks and schools to oblige children to wear safety googles for simple games.

    By :
    Martin Suenson
    - Posted on :
    07/05/2012
  • As usual Commissioner Vassiliou, like other EU Commissioners, puts the cart before the horse again. Risk is fine to adopt and is needed to create profit from business opportunities both domestic and global. But before all that we need the markets to apply the risk to. In this respect we have to create new industrial and business markets first in the EU. Without this in place there is nothing to even start with. Currently within the EU we have not invented and brought into being any major global industries over the past 25 years. That is, not those that have had a new global reach and multi-billion EURO turnover. Therefore there is something vitally missing with EU innovation policy as it does not create any new wealth of any major significance. In this respect no new products or jobs. Indeed contrary to this we are buying more goods and services now than we ever did and we have lost millions of jobs to the East in the process. Some say this is a rebalancing of the world order due to globalization. I say that it is due to incompetence through the so-called 'elitist' class that runs the EU. For they can never see the woods for the trees and they always know best. What is needed more than anything else therefore before we talk of risk or anything is the release of world-changing ideas and thinking in terms of the creation of new technological products that the world markets will import. We have the best brains in the world according to Japanese and German research so why are we in the constant mess that we are? It must be that we have a stagnant system of innovation within the EU that does little to create new industries and export markets. If this were not the case, why are we in this horrible mess? Therefore the EU's elites must start listening to the 'change' thinking that is needed for the economic health of the EU and the 750 million EU citizens in the world of tomorrow. In this respect we must put in place the creative infrastructure where our inventive minds and ideas can flourish throughout the EU for our own good. If not, the EU will definitely disintegrate over the next 25 years as there will be little economic point in keeping it together. That creative infrastructure can only be the EU’s ORE-Incubator network that interlinks the creative minds and thoughts of the people with our leading universities and innovative EU business community. Once these ORE incubators are installed we can then start to create new wealth through new technological industries for a predominantly based export driven EU. Until this is done we are literally going nowhere except backwards in economic terms. Therefore until people like Commissioner Vassiliou understands this there is no hope at all that significant business risk will play a part in the EU's drive for economic wellbeing and eventual supremacy. The logic is just not there and that is why I say we have the cart before the horse as usual in the EU with our thinking. The very same thinking that will go absolutely nowhere and that is fact. If you do not believe me just see where the EU will be in another decade from now when its only recourse is to grasp at the skirt of the East for the crumbs coming off the table from the world's economic pie. You don’t think that it will happen without this needed installation, then just watch the picture unfold and where it will have nightmarish conclusions for us all and especially for our young.

    Dr David Hill
    Chief Executive
    World Innovation Foundation

    By :
    Dr David Hill - World Innovation Foundation
    - Posted on :
    07/05/2012
  • "we cannot afford to have a 'lost generation'." Too late! The high rates of unemployment has already created a 'lost generation'.

    By :
    Ekaterina
    - Posted on :
    16/05/2012
  • You are so right Ekaterina. We have already lost another generation to unemployment. Those in power never lose out and their young always have a good life, both socially and economically. That is why they do not understand the problems that the 95% of us in the EU experience. Get people in power within the EU system who know what the grass-roots is like and the EU might start listening to others instead of themselves. That is where they always get it so terribly wrong and where their so-called elitism and the we know best mentality destroys our future time and time again. Unfortunately now if they do not start thinking differently and out of the box, the standard of living of the 95% will suffer greatly over the next quarter of a century. But where also the 5% elite will not see any change other than unparalleled upheaval that will last indefinitely once the greater downward spiral starts - not too far away now.

    Therefore the EU elites have to start to think differently or the vast majority shall see their living standards totally decimated. Indeed the way things are, we shall have yet another generation in the EU without meaningful jobs or jobs at all. That will mean 40 years of economic stagnation that the EU's elitist class has created but with no effect on themselves of course. It is time therefore that our EU leaders and EU Mandarins thought of the whole and not of the very few, as if not, the EU will implode over the next decade, or even sooner. Things may look bad now but if they do not start to think in different ways, today will look like rose garden in retrospect. Without change we are definitely in for very hard times. Indeed, and our elitist leaders will all be to blame as their thinking will have determined this future scenario for the EU!

    Dr David Hill
    Chief Executive
    World Innovation Foundation

    By :
    Dr David Hill - World Innovation Foundation
    - Posted on :
    23/05/2012
  • Look around you ? Do you think that the majority of these young men and women are unaware of what is there ? Do you think that they are waiting for policy measures that aim at bringing them back to an outdated model ?
    I believe that they have already understood that the paradigm has shifted. One single life time job ? Gone. Build businesses for long term profit ? Old model ! Work hard for a hypothetical pension, a big house and a fat car ? Not worth it ! Innovation : yes, in lifestyles, not necessarily in technology.
    I believe that effective policy measures should also consider new forms of living/working/sharing, rather than focus exclusively in fixing the continuously breaking pipe of an aging, if not obsolete model.

    By :
    Jean Schneider
    - Posted on :
    28/05/2012

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