What is being ‘entrepreneurial’ all about?

In response to this year's Vocational Rich List David Pardey, Senior Manager of Policy & Research at the Institute of Leadership and Management (ILM) comments on what being entrepreneurial should mean to colleges and training providers in tough times:

'It’s partly about being sensitive to the market, partly about taking risks, and partly about being driven by a ‘big idea’. For colleges, being market sensitive is no big deal. After all, nobody has to go to college (unlike school) and with an annual churn rate (proportion of new customers to retained customers) of around 50% – because most programmes don’t last for longer than two years, and many are for one year or less - colleges are constantly having to make themselves attractive to new learners.'

'Taking risks is the big challenge. For an individual setting him- or herself up in business, the risk is personal, or at least confined to the immediate family. In larger organisations, the risk is to many people’s livelihoods, and in colleges to learners’ future careers as well. The FE sector prides itself on being the second chance sector, but if people are failed there will be no third chance, so colleges have to take a managed approach to risk. The challenge is often in building up business where little or none currently exists, and making an investment in business developments which may take several months or more to make a payback.'

'This is where the third element of entrepreneurship comes in – commitment.  The commitment has come from the top, from the Board and the senior management, and it has to be based on a realistic assessment of the investment needed to build the business, of the risks that are involved, and a clear strategy to develop the business and manage the risks.'

How do you develop the skills needed?

Start with the ‘will’ – with the people who are keen to engage in entrepreneurial activity – because the skills can only be developed if that will exists. Then focus on developing the combination of soft skills (communication, relationship-building and negotiating skills) and hard skills (market analysis, data-based planning and forecasting, and financial management skills) that helps make entrepreneurs successful.

Given the rapid switch from plan-driven to market-driven funding (such as Train to Gain) and the increasing emphasis on fully employer-funded provision, colleges will need to be even more entrepreneurial than they have had to be up to now. The biggest challenge is to develop the ‘offer’ to be more sensitive to the market. This is one area in which the development of unitised, credit-bearing qualifications (as a result of the Qualifications and Credit Framework) can make a real contribution. By enabling learners to build up to full qualifications by gaining credit from individual units, colleges can offer far more flexibility, learners can work towards qualifications and employers can minimise their financial commitment.

For more information on building the entrepreneurial skills of your college, visit ILM