Should Romania Regard the Young Entrepreneurs as a New Driving Force in the Economy?

The Journal of Sustainable Development and

Entrepreneurship

Should Romania regard the young entrepreneurs as a new driving force in

the economy?

Andra RDULESCUa, Marius-Eugen ROGOZb

Abstract

The paper aims to analyze the students determination to become

entrepreneurs and the level of entrepreneurship education in the faculties

belonging to the Bucharest University of Economic Studies, using data

collected from a sample of 656 third-year students. The results of the study

reveal the fact that entrepreneurship education is a reality in the nowadays

education system, and its presence is increasingly important in a reality

where the economic growth and the employment rate are representative

indicators regarding a country's economy.

Each university can help students by establishing partnerships with

entrepreneurial companies offering internships for students, simulations of

how to create and manage a business, courses for entrepreneurs and by

establishing a business incubator.

Keywords: entrepreneurship, entrepreneurial education, economy, higher education system,

statistical survey, students.

JEL Classification: L26

Authors/Authors Affiliation

a - University of Economic Studies Bucharest, Faculty of Cybernetics, Statistics and Economic Informatics,

[email protected] b - University of Economic Studies Bucharest, Faculty of Accounting and Management Information Systems,

[email protected]

Should Romania regard the young entrepreneurs as a new driving force in the economy?

1. Introduction

The entrepreneurship can be considered an important pillar of innovation,

competitiveness and economic growth. For both Romania and Europe, the small enterprises

represent an important source of jobs and dynamic business considering that in Europe there

are approx. 23 million small and medium enterprises that provide 67% of the total number of

jobs, approx. 75 million jobs (European Commission, Small Enterprises have priority,

Edition 2008). Taking into consideration that the employment and economic growth represent

important indicators for each country, it arises clear the necessity of an entrepreneurship

culture from the first years of school. Teachers have a central role, as they have a strong

impact of the attainment of learners. Entrepreneurship requires a way of teaching in which

experiential learning and project work have a main role. Teachers do not provide students

with the answers, but help them to research and identify right questions and find the best

answers. (Entrepreneurship Education: A Guide for Educators, 2013).

The paper is structured in three parts: a theoretical part that emphasizes the

importance of entrepreneurship education, a part where the empirical results of the study are

presented and a final part which includes the conclusions and some recommendations.

2. Literature review and general framework

The entrepreneurship education represents a lifelong learning process, starting at the

elementary school and continuing through all levels of education, including university

education or adult education. The benefits of the entrepreneurship education can be

highlighted in all levels of education, by mentioning that it increases attendance and the sense

of locus of control for elementary students or improves financial literacy for middle school

students. As for the adults it easily can mean a changing in attitude toward the

entrepreneurship as a means of making a living or can reveal new components for a business

plan. As can be seen, Entrepreneurship education can positively impact a learner at all levels

in a wide number of contexts.

Regarding labor indicators for 2014, according to Eurostat, the situation of Romania is

the following: the unemployment rate reached a level of 6.6%, lower that the EU average of

9.9%. From this point of view, Romania is one of the countries with a small unemployment

rate comparing to Spain, for example , which has an unemployment rate of 23.6%., but at a

difference of 1.8 points percentage to the country with the lowest unemployment rate,

Germany.

The level of unemployment among young people under 25 places Romania among the

last places among EU countries, with a value of 23.4%, higher than the UE average of 21.6%,

but far away from Spain, for example, which has an unemployment rate among people under

25 of 51.6%. With a percentage so large of young people who cannot find a job, it can be said


that entrepreneurship is one of the key factors that can lead both to the improvement of

living standards among young people and economic growth beneficial to all categories of

age.

The entrepreneurship has an essential role in promoting the competitiveness of small

businesses and improving the situation of employment in Europe. According to official

statistics, the small and medium enterprises sector creates more jobs than the big enterprises

sector does and in the same time they are more flexible and innovative. Thus, it can be said

that a successful entrepreneur is the one that can assure the competitiveness of the small and

medium enterprises (Liviu Ciucan Rusu, Entrepreneurship Theory and Practice Technical

Univ. Kosice Publishing House, Slovakia, 2009, pp. 282- 290).

In accordance with a Post Privatization Foundation study, referring to Romania, in

2012, there were only 23 small and medium enterprises at 1000 citizens, with almost 60%

less than the European average. We can observe a possibility of development for this sector

that would bring a lot of benefits for the national economy. In 2002, The Ministry of

Education and Research, introduced in the curricula a new study object entitled

Entrepreneurship education, thanks to international programs that required this. A version

of entrepreneurship education that supports the education system is the one provided by the

nongovernmental organization) Junior Achievement Romania (JAR). It started under a

Protocol for implementation in public schools and higher education of the Entrepreneurship

and Economic Education and the program is conducted by the Ministry of Education and

Junior Achievement Romania. In May 2003, it was set the implementation of economic and

entrepreneurial education programs offered by JAR also in the educational system in

Romania on curriculum on Man and Society - economic and entrepreneurial education,

Professional/Vocational Advice, programs for both schoolchildren and students. It was

developed a curricula for the interaction between theory and practice in order to increase

learning efficiency. In the same project, a notebook entitled learning by doing was

developed. This program was implemented in several universities in Romania, as a series of

optional courses related to business environment (Business World, Connections, and

Business Class). Programs were given a special interest from the academic environment for

entrepreneurship education, but, so far, the introduction into university curricula was not

achieved. (Liviu Ciucan Rusu, Entrepreneurship Theory and Practice Technical Univ.

Kosice Publishing House, Slovakia, 2009, pp. 295-296)

No matter how many employees a company would have, the founder entrepreneur

remains the person who will manage the company. Running a successful business requires a

highly developed sense of leadership. A leader is a person who determines the tasks by

exercising its influence through guidance or inspiration to others. Sense of leadership comes

from self-esteem due to the theoretical knowledge and practical skills acquired over the time.


The entrepreneurs personal values will set the tone for business ethics for the entire

company and all the employees. Ethics is a system of morality and standards of behavior and

judgment that helps to distinguish the good from the bad. The Golden Rule known in ethics is

"Treat others as you want to be treated". Employees who feel used by employers will not be

as productive as they could. The most successful companies are those in which the interests

of employees correspond with what is better for the company. (Steve Mariotti, Caroline

Glackin, Entrepreneurship, Bizzkit Publishing, 2012, pp. 362-367)

Summarizing, we can say that there are significant proves brought by the literature to

support the idea that between the entrepreneurship level of a country and its level of

economic development there is a direct and powerful correlation. Further we can argue that

entrepreneurship education is one of the main determinants for entrepreneurship, playing an

important role in the acquisition of entrepreneurial skills, having a positive impact on future

generations entrepreneurial spirit and on the attitude and willingness to entrepreneurship

initiative.

3. Methodology, research goal and data issues

3.1. Methodology

The research entitled The barometer of entrepreneurship education in the Bucharest

University of Economic Studies (ASE)" aims to analyze the level of entrepreneurship

education in the faculties belonging to the ASE and outlining the student's profile. The study

was conducted in the period May-June 2014 in collaboration with EY Romania. The target

collectivity consists of 3rd year students from the Bucharest University of Economic Studies.

Data were collected using indirect collection methods: questionnaires were distributed to

students both in homes and at the faculty during the courses and also online methods for

promoting the study were involved: online survey available on platform EY Romania, shares

on Facebook groups and distribution through student organizations: SISC, AKCEES, ASGIC,

ASER and USASE for a high visibility among students.

3.2. Research results

3.2.1. Sample profile

The study involved a sample of 656 third-year students from the Bucharest University

of Economic Studies, belonging to 10 faculties. The structure of the sample is the following:

Faculty of Cybernetics, Statistics and Informatics (CSIE) - 10.5%;


Faculty of Accounting and Management Information Systems (IGC) - 13.1%;

Faculty of Management (MAN) - 13%;

Faculty of Business Administration in foreign languages (FABIZ) - 7.9%;

Faculty of Economy (ECO) - 5.5%;

Faculty of Commerce (COM) - 9%;

Faculty of Economics of Agrifood and Environment (EAM) - 5.5%;

Faculty of Finance, Insurance, Banking and Stock Exchange (FABBV) - 13.3%;

Faculty of Marketing (MK) - 9.1%;

Faculty of International Economic Relations (REI) - 13.1%.

In terms of gender of the respondents, 58.4% are female and 28.2% are male. The age

of the respondents ranges from 20 to 24 with the modal value 21.

3.2.2. Data Analysis

Analyzing the answers of respondents in order to evaluate the level of entrepreneurship

education in the faculties belonging to the Bucharest University of Economic Studies, it can

be said that from the 656 students, 57.2% want to become entrepreneurs in the future.

Fig 1: The percentage of students who want to become entrepreneurs

Fig 2: Percentage of students who want to become entrepreneurs divided by faculty


Regarding to the graphic, the most students who want to become entrepreneurs are

from The Faculty of Accounting and Management Information Systems.

Regarding the financing source of their business, 26% of the students would use

European funds, 21% would borrow money from their parents or friends, 20% would use

grants, 17% their salary, 11% bank loans and 5% would decide on a business angel.

Regarding the opinion about how entrepreneurship education in ASE has developed

during the last year, approximately 45% of students agree that the situation has improved

most of them being from REI Faculty (the largest number for the ten analyzed faculties).

From all respondents, only 40% are aware of the fact that there is no university business

incubator located in their university, but 80% believe that its existence would be important

for the development of entrepreneurship education.

Fig 3: Entrepreneurship education has improved in the last year in ASE?

The perception of failure is different among the students, 22% seeing it as a learning

opportunity, 23% considering it as a career failure, 20.5% a significant disadvantage when

discussing about future and 20% agree that failure indicates a lack of entrepreneurship skills.

Another important aspect is that 60% of the students would choose a career in

entrepreneurship after accumulating work experience, which may suggest that they do not

believe that they are prepared for running a business yet. Thus, implementing some special

business courses into the University curricula would be of significant help in eliminating or

diminishing this problem.


Fig 4: When is the right time to start your own business?

As a result of the analysis on students who have expressed a desire to start a career in

entrepreneurship, it has been shaped the entrepreneur student's profile.

Thus, it can be said that the entrepreneur student is a person from the Faculty of

Accounting and Management Information Systems, female gender, with a monthly budget

between 1000 and 1500 RON.

Among the most commonly used financial resources that a student would user to

finance their business can include money from parents and friends, attracting European funds

and grants.

The entrepreneur student believes that idea, starting capital and business plan are the

most important elements to ensure the success of a business. Useful, but not with a great

importance are luck and networking.

The entrepreneur found at the beginning, choose this career because of the possibility

to implement their own ideas and sense of self-fulfillment that gives him his career in

entrepreneurship, because it can get additional income and Entrepreneurship ensure their

independence from employers. He also believes that the biggest barricade in starting a career

in entrepreneurship is the lack of capital.

The entrepreneur student considers that the spirit of the entrepreneurship is sustained by the

typical mentality of the Romanians and that the entrepreneurship education and training have

been improved in the last year in ASE. Also it is believed that the University has to help and

encourage students to study entrepreneurship by establishing different partnerships with

entrepreneurial companies and offering internships. Another way to embolden students could

be represented by introducing create and manage your own business classes. An important

aspect in developing entrepreneurship education could be considered to be the establishment

of a business incubator.


Asked what are the most 3 important qualities of a successful entrepreneur, the

entrepreneur student answered that vision, passion for investment and motivation for success

represent defining skills. It is also considered that a person should start up a business only

after gaining experience in the work field.

4. Conclusion

In conclusion, is it the entrepreneurial education a reality in the Romanian higher

education system and should Romania regard the young entrepreneurs as a new driving

force in the economy?

After developing a research on the 3rd

year students from Bucharest University of

Economic Studies we can affirm that the entrepreneurial education is a reality in the

Romanian system, and its presence gains more and more importance in the actual economic

context where unemployment and economic growth represent crucial indicators for analyzing

the economic status of a country.

The students get more and more interested in an entrepreneurial career, choosing this

field only after spending a few years as an employee, because they want to become

independent from any employer, because the entrepreneurship offers the perspective of a

bigger income, the possibility of applying their own ideas and the feeling of personal

achievement. The University can help them, among others, by establishing partnerships with

entrepreneurial companies for offering internships, by taking create and manage your own

business classes and establishing a business incubator.

Thus, we can say again that entrepreneurs are the force that moves the world and the

purpose of worldwide education should be developing entrepreneurial skills so necessary

nowadays. Promoting entrepreneurship will help to develop both students and University, and

last but not least our society and also increasing living standards, something desired by each

of us.


5. Reference

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Should Romania Regard the Young Entrepreneurs as a New Driving Force in the Economy?

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