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Capturing the enterprise of young people


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Capturing the enterprise of young people

  1. 1. Capturing the Enterprise Potential of Young People across the Yorkshire & Humber RegionInside BusinessLink ResearchEnterprise Potential of young people Dubit were commissioned to improve understanding of the attitudes andstill to be fully realised perceptions of 14-25 year olds, with a view to helping target key6 out of 10 have business ideas they could groupings and strengthening service delivery, especially onlineexplore, but only 3 out of 10 have ever lookedfor information or support. 63% have neverlooked for information on taking an idea This document highlights the main real action in the business arena.further findings from a survey of 1,261 young Pg. 5 people aged between 14 and 25, across all Part One profiles the region’s youth educational and occupational groupings, landscape in terms of their potential - whoBusinessLink awareness relatively high backed up with 9 focus groups, 20 teacher is more suited to enterprise, and theamongst youth audiences interviews, and stakeholder opinion and influences on this. This allows us to assess54% of the survey knew of the service, yet68% of young people don’t know where to go involvement. the main opportunities to inspire potentialwith business ideas. More than half would go into action. Part Two then gives ato their careers adviser Through the research, conducted in April segmentation of the population by Pg. 8 and May 2009, Dubit and BusinessLink potential, and we also look at howDoes FE and HE take the edge off developed three key indicators across the education and occupation groupingsenterprise? youth population. These provide insights may form a channel strategy for futureUni & college students the least likely to go into young people’s inherent enterprise delivery, and the opportunities within eachinto business, but school pupils and young potential; their aspiration to set up in to engage young people.people in employment have high potential, business; and actual engagement withaspiration and business engagement enterprise. Together, these provide a Normal distribution of Pg. 12 pathway to business - from their natural enterprising characteristics skills, their readiness, and through to their 1
  2. 2. Table of ContentsPart OneYouth Enterprise Landscape Young People’s Enterprise Potential across the region 3 Business Aspiration scale 4 Business Engagement scale 5 Influences on Enterprise 6 Enterprise Education 7 8 Business Information - young people’s needsPart TwoSegmentation & Channel Strategies Enterprise Potential segments: EPS1-4 10 Segmentation by Educational & Occupational Status 12 Employed (16-25s) 14 School Students (14-16s) 14 College / 6th Form Students (16-18s) 15 University Students (18-25s) 15 16 NEETs (16-25s) 16 Recommendations 2
  3. 3. The Youth Landscape:Part One Enterprise Potential Frequency Mean Average 212Enterprise PotentialThe Enterprise Potential (EP) model measures ayoung person’s enterprise profile by assessingresponses to a series of 34 questions related topositive factors for entrepreneurship, coveringtheir understanding of, and interest in business;their ambitions about starting up; personality traits;personal contacts; attitudes to risk; and perceptionsof their skillset and confidence.The higher the EP score, the more enterprisingthe young person is likely to be. Importantly, theEP score directly correlates with the BusinessEngagement Scale (p4), meaning that those withhigher EP scores also tend to follow through their Enterprise Potential Scoreactions, or at least explore the possibility of takingtheir idea further. Those at the upper end of the EP across the youth population in the Regionscale are more likely to be looking at setting up in Through the Enterprise Potential scale we can measure the extent to whichbusiness. young people are switched on to setting up in business, and measure the qualities they display that could enable this.The consequent “bell curve” or normal distributionof enterprise potential across the sample reflects Across the Yorkshire & Humber region, we have found the followingthe number of factors that have been taken into comparative statistics, exhibited in the tables to the left:account - but it is interesting to observe that thereis a slight skew towards a lower mean value. This Males exhibit higher EP than females: 221 v 203scale allows us to compare different groupings and No significant differences by age: each follows the same patterndemographics, and assess their propensity tobecome self-employed or establish a business. Young people from BME groups are more switched on to enterprise, especially when compared with white males East Riding is the least enterprising region: North & West Yorkshire youth have the most potential Employed young people display more potential to set up in businessEP Score than any other grouping Apart from the low NEET scores, higher education seems to reflect poorly on scoring, but here is no causal relationship established. Do those with low EP choose to stay on at school and pursue a “career”? Or does HE take the edge off enterprise potential? 3
  4. 4. Business Aspirations:seize the day?Once we have assessed the population’s enterprise potential, it is interesting tomeasure the thirst for setting up in business in the future, and compare resultsacross and within groups. Plus, whether they see enterprise as a viablealternative to mainstream employment: 7 out of ten young people in the survey believe that anyone can set up in business 8 out of ten believe that anyone can be self-employedThere is no shortage of positive thinking about the concept of enterprise Nearly 60% of 14-19 year olds feel that becoming self-employed is a possibility for people in their 20s or even before. Nearly 40% of 14-19 year olds feel that setting up in business is a Self-employment vs possibility for people in their 20s or even before. Setting up in BusinessThe critical question, however, is whether they think that they could do thatthemselves. The Business Aspiration (BA) scale measures the likelihood of Different perceptions of setting up ayoung people becoming self employed or setting up in business. business and becoming self-employed: young people believe the former involvesBusiness Aspiration scale starting from scratch, employing otherThrough rating their likelihood of becoming self employed or establishing a people and having good business ideasbusiness in the future - from 1 (highly unlikely) to 10 (highly likely), we obtainan overview of the youth population. Setting up a business seen as riskier, involving higher amounts of investment andOverall, the three peaks indicate that there are some totally disconnected with more complicated registration processes –the idea (1-2); some definitely looking to set up in the future (8-10); and then a nonetheless it is still the most desirable ofhuge amount of young people who are unsure (5), unprepared to make any the twocommitment. Employed young people and school pupils have much higher business aspirations than those at University or College (p12) “Self employed is more for people who work alone eg plumbers, consultants. Setting up a business implies other people would be involved” “Being self-employed could simply involve being, for example, a freelance language or music teacher whereas really „setting up your own business‟ involves registering the business, setting up offices etc etc” 4
  5. 5. Business EngagementTaking the hopes or aspirations one step further and intoaction: just how many are prepared to jump in and giveenterprise a go?The research investigated to what extent young people from the survey groupare actually engaging with enterprise - from having some vague business ideas,through increasing stages of development, up to having already established aVAT-paying business. 6 out of 10 respondents have business ideas they wish to explore However only 3 out of 10 have ever looked for support or information on how to progress their idea 63% of those with business ideas have never looked for further information on taking their idea further Only 1 in 10 specifically exclude setting up in business or becoming self employedBusiness Engagement scale I run my own business / self-employed and pay VAT I run my own business / self-employed and do not pay VAT I am in the process of setting up my own business / self-employed I am thinking about setting up and have spoken to people about it I have some ideas but have not followed them up I have some very vague business ideas I have never thought about business ideas or setting up in business I would never want to set up in business or become self-employed Opportunity Huge potential for enterprise within young people’s minds which is lying dormant: can BusinessLink harness this? 5
  6. 6. Influences on Enterprise The Positive Factors The factors collected from Dubit’s desk research and stakeholder consultation included: Personality traits that that make it more likely to set up in business, or do it successfully: risk profile; determination; ambition; goal- setting and so on Proximity to people in business (Friends or relatives) Future planning: vision of the future Access to capital / finance Other circumstantial conditions such as being made redundant, pressure of a more dynamic partnerThe Negative FactorsBut when we asked what has prevented the young people taking a business idea further - or what has put them off setting up in business,the young people in the survey pinpointed finance and information as key barriers: 74% stated that it is hard to find money to back their ideas 7 out of 10 do not know where to get started Over half think it is too risky and prefer to settle for a job 6
  7. 7. Business Information (cont.)Enterprise EducationOne of the key positive influences on enterprise potential, businessaspiration and business engagement has been Enterprise Education (EE).On splitting the data between those who had experienced EE and thosewho hadn’t, a clear effect was revealed: Young people exposed to Enterprise Education exhibit higher levels of aspiration (see bottom chart, left) 67% of those who have received EE are thinking about business ideas or have taken them further, compared with only 57% of those who have not received EE 18% of those who received EE are talking to people about their ideas, compared with only 10% of those without EE Longer term activities with “real” outcomes such as School Enterprises and Business Challenges are most highly rated by young people and teachers EP Score Business Engagement scale (EE/No EE) EP Score Business Aspiration scale (EE/No EE) Opportunities PR the measured effects of Enterprise Education to increase take-up and reach Integrate BusinessLink offer and branding with Enterprise Education resources Explore which EE programmes impact EP most through applying the EP scale within schools and 1 = highly unlikely: 10 assessing differential results = highly likely 7
  8. 8. Business InformationYoung people’s resourcesGiven that some of the key barriers to progressing a business idea implied alack of information and knowledge about business, the young people in thesurvey were asked where they currently would start to find such support. Thetop three destinations were polled and these reveal that: Careers advisers feature second in the list as the person 50% of young people would go to for advice about setting up in business. How equipped are they to advise young people about setting up a business? Over half would visit someone they knew that was already in business, and just under half would speak with a friend or family member. Business websites and business support services were less likely to be visited, but amongst older respondents these became more relevant. Such websites were a clearer choice for those who had BusinessLink Respondents were asked specifically about a range of already looked for information (see full report). business websites , revealing scattered awareness and low levels of usage of support services amongst the young people. Prince’s Trust and BusinessLink had highest awareness (54% were aware or had used BusinessLink) However, 46% of the total young people surveyed had not heard of BusinessLink NEET groups had double the awareness (72%) of Prince’s Trust than BusinessLink BusinessLink was most recognised (and most used) by young people in employment (62%) All other youth business support services had less than 20% awareness amongst the target audience Teachers/Tutors were obviously much more relevant to students at school Employed young people were much more likely to talk to friends in Opportunities business and also access business information services. Create a youth-friendly BusinessLink destinationWe surveyed a wide range of subjects or topics which young people site for enterprising youthfelt would help them engage with enterprise and take an idea further. In Create resources and introduce training forother words, if they were to look for information on something, what Careers Adviserswould help most (1 is not all all, 10 is very much): Leverage contact with employed young peopleWhat the young people and teachers told us in the focus through “mini MBA” business clubs? 8
  9. 9. Business Information (cont.) groups: Finance and money, seen as one of the key barriers to entry, is the most important topic to lead with in any resource (attracting more users) However school pupils felt that information on startups was more important than access to finance Case studies seen as less important overall, although teachers felt these motivated young people more than anything else Access to a mentor network appealed more to young people - but they didn’t know where to go for thisGoogling It was felt that existing resources catered for those “already engaged” - reflected in the low usage of business support websites. There is aThe most common terms that young people would need for a comprehensive but simple, jargon-busting, siteuse for searching for local business informationand support often did not include the town, city or Young people and teachers suggested interactive applications andcounty name. Here are a few of the most common networks for young enterprising people to share experiences, besearch strings they used in Google or yahoo!: introduced to mentors, learn from advice local business help (or information) how to set up my own business startup business information Doncaster setting up a business setting up self employed Opportunities Youth Business Portal where Finance information is lead “content” Youth Enterprise Network with mentor access and personal business pages: eg MySpace for MyBusiness Further detail on potential site content and design is explored in the full document, but warrants further testing of recommendations 9
  10. 10. Segmentation Studies &Part Two Channel Strategies Frequency Mean Average 212RationalePart One reviewed the total youth landscaperepresented by the different groups surveyed.Across the 1261 respondents, although there arecommon touchpoints and needs, the EP curvedemonstrates that different young people havedifferent levels of ambition and perceive businessin different ways, resulting in their subsequentplace on the EP scale. EPS1 EPS2 EPS3 EPS4Within this scale, then, will be certain typologieswhich may be uncovered, with specific needs andpotential, and in segmenting the EP scale we maybe able to target BusinessLink communications ina more effective way, by segment. This is the Enterprise Potential Scoresubject of the first section of Part Two.Additionally, by looking at the five Segmentation by Enterprise Potentialeducational/occupational groupings present within Based on the Enterprise Potential scores, the population sample was segmentedthe sample - in turn - we may be able to discover into two groups, based on below average scores and above average scores.common needs and opportunities for BusinessLink These groups were then split again in half, with the split occurring at the mid-within each grouping. This will be covered in the points between mean average and minimum/maximum score recorded. Thusfinal section, together with recommendations for we have four groups (as above), EPS1 (low potential) through to EPS4 (highengaging with each grouping. potential). When these groups were correlated against their respective scores in Business Aspiration and Business Engagement, this not only corroborated the rationale behind the EP scale, but also revealed significant differences between the groups. Business Engagement scale 10
  11. 11. Segmentation by Enterprise Potential (cont.)Business Aspiration scaleIt is also possible to analyse each of the EPS segments by Business Aspirationscale (below) - once again, this demonstrates the validity of the EP scale at thesame time as defining the characteristics of young people in each EPS segment.(10 is highly likely, 1 is highly unlikely) EP Summary Respondents have been segmented into specific groups that reflect their overall propensity to enter business,Differential Influences on Enterprise providing BusinessLink with the potential for targeted strategies in each segment.A word cloud for each group was generated from responses to the questionsabout main barriers to thinking about, or actually going ahead, and setting up a Higher EPS groups are much more of a targetbusiness. The larger the phrase, the more it was mentioned by the respondents market for BusinessLink services: however 4in that EPS group. in 10 of the top group have never looked for Business InformationMain barriers for low EPS groups Access to money is the biggest barrier for the highest group, who may have already overcome most other barriers Lower groups are more risk-averse and worried about not having any good ideas Careers advisers are key contacts for low EPS groups: higher EPS groups look for mentorsMain barriers for high EPS groups closer to home Opportunities Further investigation into the characteristics of EPS4 (and EPS3): typologies, skills, media etc Launch a BusinessLink “EPS4 Club” for high potential entrepreneurs: nurture, encourage Run the EP scale across the Region’s schools to identify future high-flyers and streamline their access to resources Different web resource/access by segment? 11
  12. 12. Segmentation by Educational &Occupational StatusEnterprise Potential scaleThis section of the research takes each grouping and sample population fromwithin that, and runs the previous analysis within each grouping:- School Pupils (14-16s)- College / 6th Form Students (16-19s)- NEET (16-25s)- University Students (18-25s)- Employed (16-25s)This resulted in different EP graphs for each grouping: Business Aspiration scale Does FE/HE take the edge off enterprise? School and Employed groups most interested in theand the line below summarises the mean scores for each grouping: choice of enterprise in the future University students have significantly lower high enterprise aspiration (even lower than NEET) College students also seem to be on “career path” and do not consider enterprise as a serious option Young people in employment register the highest EP scores School and College students higher than University scores NEETs register the lowest scoresHowever it is important to note that the shape of the curves indicates thatwithin each group there is still a range of EP scores, meaning that even NEETrespondents had some in the top (EPS4) segment. Indeed, University studentshave one of the highest proportions of EPS4 scores: this may point in thedirection of a more rigorous “EPS3/4 segment” strategy as opposed to achannel/grouping strategy. 12
  13. 13. Segmentation by Education/Occupation (cont.)Business Engagement scaleIt is also possible to analyse each of the Educational and Occupational segmentsby Business Engagement scale (below), revealing how far each grouping isactive in entrepreneurial “activity”. Educ/Occup Summary Targeting key educational routes or the employed appear to be worthwhile strategies for BusinessLink - and perhaps to create specific communications that “speak” to the barriers/worries/aspirations of each grouping Key stage to harness entrepreneurial expectations is at School Employed young people are the most switched on to enterprise: can BL encourage “Intrapreneurship”? Employed grouping has more ideas, more activity in the enterprise Employed grouping has highest engagement arena than any other grouping with business, most ideas, highest potential to progress with help Schools and colleges have relatively high (over 20%) proportions of people with ideas who are beginning to talk with others about University languishing in lack of aspiration, enterprise but with high potential, and more EPS4 characteristics University grouping much less interested in self-employment as a route (only 15% scored 8-10) NEETs represent lowest engagement levels overall (and yet still have EPS4 representation) Opportunities Unexplored ideas found in every occupational group Reduce focus on Universities as centres for Entrepreneurship? Perhaps this insight directs action to younger, more aspirational youth?The next section looks at each grouping in turn as part of an Create “Young Worker” resources for theoverview of each potential target for BusinessLink. We employed workforce with enterprise potentialhave provisionally looked at these in some order of priority, Engage more directly with school pupils in theaccording to the insights received. early years and present enterprise as a “real” alternative to conventional FE/HE routes 13
  14. 14. Employed (16-25s)Enterprise PotentialHighest overall (219) and largest slice of EPS4 (high potential group)Business Aspiration & EngagementHighest at top level (25% 8-10s) and most engaged: most business ideas topursue (70%) and most likely to speak to others about these. Highest level ofcurrent business start-ups.Perceived Barriers OpportunitiesMoney and access to finance stands out from other factors (risk is the second): Out-of-hours resources (such as websites,seem to be more confident; less need to know “how to get started” than other helplines, mobile units) and “outreach” moregroupings, but startup support still an issue. relevant to this groupingInformation Needs Create “Young Worker” resources for theBusiness websites the key focus for their search, as well as family and friends. employed workforce with enterprise potentialAccess to finance, and business planning information cited as keyrequirements. Over half felt that Business Clubs were a good idea in the Assess accessibility and “youth-friendly” naturesurvey. of BusinessLink resources. Can we do more to encourage those in employment?BusinessLink Business Clubs and online networksHighest awareness and usage: but still only 20% have contacted.School Students (14-16s)Enterprise PotentialSecond highest level (212) and good penetration of EPS3 & 4.Business Aspiration & EngagementHighest overall aspirations to enter business of all groups: one third have ideasbut not pursued them. Nearly 20% are speaking to people about their ideas.Enterprise Education has had a huge impact on their confidence - and they arestill exposed to it at this stage. OpportunitiesPerceived Barriers High aspiration can be harnessed by moreOnly group for whom money and finance are not the most important barriers: directional as well as experiential Enterpriseneither is risk a big concern. Key barrier is “not knowing how to start”. (Plus, Education (eg. showing how to “start up”)does FE/HE route dampens the potential of enterprise?) Provide effective training and resources toInformation Needs Careers Advisers & TeachersMain sources are currently friends & family, websites and teachers / careersadvisers. They seek access to mentors (and to a lesser extent, finance). More Create more interactive online resources &interactive online applications & networks could provide key information & networks for young entrepreneurslearning resources. Engage more directly with school pupils in the early years and present enterprise as a “real”BusinessLink alternative to conventional FE/HE routesOver 50% of pupils had never heard of BusinessLink 14
  15. 15. College / 6th Form Students (16-18s)Enterprise PotentialJoint second highest score (212) and second largest slice of EPS4 groupBusiness Aspiration & EngagementSecond largest engagement factor: 2 in 5 have vague ideas; 1 in 5 areexploring ideas; and less than 1 in 10 exclude business as an option. However,their aspirations are less than those in school or employment, implying a lossof interest, and in spite of high potential and many ideas.Perceived Barriers OpportunitiesRisk and “knowing how to get started” are less of an issue here, but money Engage tutors/teachers/careers advisers with keyresurfaces as a concern (perhaps linked to risk, unconsciously) enterprise messages: provide resources Direct online resources to those in FE toInformation Needs encourage engagement and widen horizons:Business websites and family and friends are the main sources of information. educate about business opportunities in eachAccess to finance, business planning information and a mentor network are subject areamost needed. 60% of those who have never looked for information seeCareers Advisers as a key source of information. Provide more directive enterprise education for 6th forms and collegesBusinessLinkHigh awareness (44%) but in spite of many ideas, little contact (12%)University Students (18-25s)Enterprise PotentialBelow average levels of EP (210), nonetheless one of the highest proportionsof the highest potential group (EPS4)Business Aspiration & EngagementVery low likelihood to have business ideas: 20% have had ideas but neverfollowed them up; 30% have never had any ideas; 10% never want to involvedin enterprise. 2nd lowest aspiration level. OpportunitiesPerceived Barriers Reduce focus on Universities as centres forMoney less of a barrier - but highest level of concern is around risk. Career Entrepreneurship? Abandon efforts in preferenceand academic requirements may interfere with other aspirations. to other areas?Information Needs Understand more about Enterprise opportunitiesBusiness websites are as important as careers advisers, and networks of for University students: eg business modulesmentors are more highly desired, as well as business planning. For those in within academic coursesEPS4 groupings, access to finance is a particular motivator. Recruit EPS4 students for Business Clubs,BusinessLink incubator units, and networking opportunitiesHighest awareness but almost as low a usage as NEETs: 5%. 53% have neverheard of BusinessLink 15
  16. 16. NEET (16-25s)Enterprise PotentialLowest overall (191) and yet some potential in higher EPS quadrantsBusiness Aspiration & EngagementThey link enterprise to good ideas but less likely to think that they have them.Most believe that business is not something people would like them would do,but 10% are progressing their business ideas and 20% have ideas they havenever shared with anyonePerceived BarriersAccess to money, but mainly their ideas and how to get started. People they Opportunitiesknow also are more likely to put them off thinking about enterprise Improve mentor network for NEETs, especially profiling those from NEET backgrounds whoInformation Needs have started in businessCareers advisers seen as major sources of information and support: those who Profile NEET population & find those with highhave actively looked for information (a minority) have used websites and EP scores: recruit for dedicated programmepeople they know in business Engage more directly with school pupils in theBusinessLink early years with enterprise resources & guidanceLowest awareness and usage: 58% have never heard of BusinessLink Summary Recommendations OVERALL Huge potential for BusinessLink to harness dormant ideas within young people’s minds: 63% of ideas unexplored. Introduce BusinessLink branding and resources at younger ages to improve awareness and engagement Improve online resources for young people: create interactive modules & (mentor) support networks: social networking for young entrepreneurs. Tailor to different stages of Business Engagement scale. “MySpace for MyBusiness” Careers Advisers are key sources of enterprise information: may require more resources, training, BLink contacts EPS Segments Investigate key typologies within EPS3/4 to tailor BusinessLink communications to these groups “EPS4 Club” - recruit high flyers into BusinessLink Elite Club through profiling across the region. Create enterprise “prize fund” for top achievers (access to finance the main psychological barrier for this group) Educational / Occupational Groupings Employed young people a key target group: Create “Young Worker” resources and networks (miniMBA club?) Run EP score across region’s schools to investigate differential impact of Enterprise Education programmes on pupils: which modules are most effective at increasing EP? Potential for more “directive” as well as experiential programmes to improve follow-through of ideas Reduce focus on Universities as centres for Entrepreneurship? Abandon efforts in preference to other areas? OR increase investment in University programmes and integration with academic courses 16