capturing the enterprise of young people

1

This document highlights the main

findings from a survey of 1,261 young

people aged between 14 and 25, across all

educational and occupational groupings,

backed up with 9 focus groups, 20 teacher

interviews, and stakeholder opinion and

involvement.

Through the research, conducted in April

and May 2009, Dubit and BusinessLink

developed three key indicators across the

youth population. These provide insights

into young people’s inherent enterprise

potential; their aspiration to set up in

business; and actual engagement with

enterprise. Together, these provide a

pathway to business - from their natural

skills, their readiness, and through to their

real action in the business arena.

Part One profiles the region’s youth

landscape in terms of their potential - who

is more suited to enterprise, and the

influences on this. This allows us to assess

the main opportunities to inspire potential

into action. Part Two then gives a

segmentation of the population by

potential, and we also look at how

education and occupation groupings

may form a channel strategy for future

delivery, and the opportunities within each

to engage young people.

Normal distribution of

enterprising characteristics

Capturing the Enterprise

Potential of Young

People

across the Yorkshire & Humber Region

BusinessLink Research Dubit were commissioned to improve understanding of the attitudes and

perceptions of 14-25 year olds, with a view to helping target key

groupings and strengthening service delivery, especially online

Inside

Enterprise Potential of young people

still to be fully realised

6 out of 10 have business ideas they could

explore, but only 3 out of 10 have ever looked

for information or support. 63% have never

looked for information on taking an idea

further

Pg. 5

BusinessLink awareness relatively high

amongst youth audiences

54% of the survey knew of the service, yet

68% of young people don’t know where to go

with business ideas. More than half would go

to their careers adviser

Pg. 8

Does FE and HE take the edge off

enterprise?

Uni & college students the least likely to go

into business, but school pupils and young

people in employment have high potential,

aspiration and business engagement

Pg. 12

2

Table of Contents

Part One

Youth Enterprise Landscape Young People’s Enterprise Potential across the region

Business Aspiration scale

Business Engagement scale

Influences on Enterprise

Enterprise Education

Business Information - young people’s needs

Part Two

Segmentation & Channel Strategies Enterprise Potential segments: EPS1-4

Segmentation by Educational & Occupational Status

Employed (16-25s)

School Students (14-16s)

College / 6th Form Students (16-18s)

University Students (18-25s)

NEETs (16-25s)

Recommendations

3

4

5

6

7

8

10

12

14

14

15

15

16

16

3

Enterprise Potential

The Enterprise Potential (EP) model measures a

young person’s enterprise profile by assessing

responses to a series of 34 questions related to

positive factors for entrepreneurship, covering

their understanding of, and interest in business;

their ambitions about starting up; personality traits;

personal contacts; attitudes to risk; and perceptions

of their skillset and confidence.

The higher the EP score, the more enterprising

the young person is likely to be. Importantly, the

EP score directly correlates with the Business

Engagement Scale (p4), meaning that those with

higher EP scores also tend to follow through their

actions, or at least explore the possibility of taking

their idea further. Those at the upper end of the EP

scale are more likely to be looking at setting up in

business.

The consequent “bell curve” or normal distribution

of enterprise potential across the sample reflects

the number of factors that have been taken into

account - but it is interesting to observe that there

is a slight skew towards a lower mean value. This

scale allows us to compare different groupings and

demographics, and assess their propensity to

become self-employed or establish a business.

The Youth Landscape:


across the youth population in the Region

Through the Enterprise Potential scale we can measure the extent to which

young people are switched on to setting up in business, and measure the

qualities they display that could enable this.

Across the Yorkshire & Humber region, we have found the following

comparative statistics, exhibited in the tables to the left:

Males exhibit higher EP than females: 221 v 203

No significant differences by age: each follows the same pattern

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 business

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?

Part One

Frequency Mean Average 212

Enterprise Potential Score

EP Score

4

Once we have assessed the population’s enterprise potential, it is interesting to

measure the thirst for setting up in business in the future, and compare results

across and within groups. Plus, whether they see enterprise as a viable

alternative 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-employed

There 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

possibility for people in their 20s or even before.

The critical question, however, is whether they think that they could do that

themselves. The Business Aspiration (BA) scale measures the likelihood of

young people becoming self employed or setting up in business.

Business Aspiration scale Through rating their likelihood of becoming self employed or establishing a

business in the future - from 1 (highly unlikely) to 10 (highly likely), we obtain

an overview of the youth population.

Overall, the three peaks indicate that there are some totally disconnected with

the idea (1-2); some definitely looking to set up in the future (8-10); and then a

huge amount of young people who are unsure (5), unprepared to make any

commitment.

Employed young people and school pupils have much higher

business aspirations than those at University or College (p12)

Self-employment vs

Setting up in Business

Different perceptions of setting up a

business and becoming self-employed:

young people believe the former involves

starting from scratch, employing other

people and having good business ideas

Setting up a business seen as riskier,

involving higher amounts of investment and

more complicated registration processes –

nonetheless it is still the most desirable of

the two

“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”

Business Aspirations:

seize the day?

5

Business Engagement Taking the hopes or aspirations one step further and into

action: just how many are prepared to jump in and give

enterprise a go?

The research investigated to what extent young people from the survey group

are actually engaging with enterprise - from having some vague business ideas,

through increasing stages of development, up to having already established a

VAT-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 employed


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?

6

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 partner

Influences on Enterprise The Positive Factors

The Negative Factors

But 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

7

Business Aspiration scale (EE/No EE)

Business Engagement scale (EE/No EE)

One of the key positive influences on enterprise potential, business

aspiration and business engagement has been Enterprise Education (EE).

On splitting the data between those who had experienced EE and those

who 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

Enterprise Education

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

assessing differential results

Business Information (cont.)

1 = highly unlikely: 10

= highly likely

EP Score

EP Score

8

Given that some of the key barriers to progressing a business idea implied a

lack of information and knowledge about business, the young people in the

survey were asked where they currently would start to find such support. The

top 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

already looked for information (see full report).

Teachers/Tutors were obviously much more relevant to students at

school

Employed young people were much more likely to talk to friends in

business and also access business information services.

We surveyed a wide range of subjects or topics which young people

felt would help them engage with enterprise and take an idea further. In

other words, if they were to look for information on something, what

would help most (1 is not all all, 10 is very much):

What the young people and teachers told us in the focus

BusinessLink Respondents were asked specifically about a range of

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

Business Information Young people’s resources

Opportunities Create a youth-friendly BusinessLink destination

site for enterprising youth

Create resources and introduce training for

Careers Advisers

Leverage contact with employed young people

through “mini MBA” business clubs?

9

Googling

The most common terms that young people would

use for searching for local business information

and support often did not include the town, city or

county name. Here are a few of the most common

search strings they used in Google or yahoo!:

local business help (or information)

how to set up my own business

startup business information Doncaster

setting up a business

setting up self employed

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 this

It was felt that existing resources catered for those “already engaged”

- reflected in the low usage of business support websites. There is a

need for a comprehensive but simple, jargon-busting, site

Young people and teachers suggested interactive applications and

networks for young enterprising people to share experiences, be

introduced to mentors, learn from advice

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

10

Rationale

Part One reviewed the total youth landscape

represented by the different groups surveyed.

Across the 1261 respondents, although there are

common touchpoints and needs, the EP curve

demonstrates that different young people have

different levels of ambition and perceive business

in different ways, resulting in their subsequent

place on the EP scale.

Within this scale, then, will be certain typologies

which may be uncovered, with specific needs and

potential, and in segmenting the EP scale we may

be able to target BusinessLink communications in

a more effective way, by segment. This is the

subject of the first section of Part Two.

Additionally, by looking at the five

educational/occupational groupings present within

the sample - in turn - we may be able to discover

common needs and opportunities for BusinessLink

within each grouping. This will be covered in the

final section, together with recommendations for

engaging with each grouping.

Segmentation Studies &

Channel Strategies

Segmentation by Enterprise Potential Based on the Enterprise Potential scores, the population sample was segmented

into two groups, based on below average scores and above average scores.

These groups were then split again in half, with the split occurring at the mid-

points between mean average and minimum/maximum score recorded. Thus

we have four groups (as above), EPS1 (low potential) through to EPS4 (high

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.


Part Two

EPS1 EPS2 EPS3 EPS4

Frequency Mean Average 212

Enterprise Potential Score

11

Business Aspiration scale It is also possible to analyse each of the EPS segments by Business Aspiration

scale (below) - once again, this demonstrates the validity of the EP scale at the

same time as defining the characteristics of young people in each EPS segment.

(10 is highly likely, 1 is highly unlikely)

Differential Influences on Enterprise A word cloud for each group was generated from responses to the questions

about main barriers to thinking about, or actually going ahead, and setting up a

business. The larger the phrase, the more it was mentioned by the respondents

in that EPS group.

Main barriers for low EPS groups

Main barriers for high EPS groups

EP Summary Respondents have been segmented into specific groups

that reflect their overall propensity to enter business,

providing BusinessLink with the potential for targeted

strategies in each segment.

Higher EPS groups are much more of a target

market for BusinessLink services: however 4

in 10 of the top group have never looked for

Business Information

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 mentors

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?

Segmentation by Enterprise Potential (cont.)

12

Segmentation by Educational &

Occupational Status

Enterprise Potential scale

This section of the research takes each grouping and sample population from

within 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:

and the line below summarises the mean scores for each grouping:

Young people in employment register the highest EP scores

School and College students higher than University scores

NEETs register the lowest scores

However it is important to note that the shape of the curves indicates that

within each group there is still a range of EP scores, meaning that even NEET

respondents had some in the top (EPS4) segment. Indeed, University students

have one of the highest proportions of EPS4 scores: this may point in the

direction of a more rigorous “EPS3/4 segment” strategy as opposed to a

channel/grouping strategy.

Business Aspiration scale

Does FE/HE take the edge off enterprise?

School and Employed groups most interested in the

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

13

Business Engagement scale It is also possible to analyse each of the Educational and Occupational segments

by Business Engagement scale (below), revealing how far each grouping is

active in entrepreneurial “activity”.

Employed grouping has more ideas, more activity in the enterprise

arena than any other grouping

Schools and colleges have relatively high (over 20%) proportions of

people with ideas who are beginning to talk with others about

enterprise

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)

Unexplored ideas found in every occupational group

The next section looks at each grouping in turn as part of an

overview of each potential target for BusinessLink. We

have provisionally looked at these in some order of priority,

according to the insights received.

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 highest engagement

with business, most ideas, highest potential to

progress with help

University languishing in lack of aspiration,

but with high potential, and more EPS4

characteristics

Opportunities Reduce focus on Universities as centres for

Entrepreneurship? Perhaps this insight directs

action to younger, more aspirational youth?

Create “Young Worker” resources for the

employed workforce with enterprise potential

Engage more directly with school pupils in the

early years and present enterprise as a “real”

alternative to conventional FE/HE routes

Segmentation by Education/Occupation (cont.)

14

Employed (16-25s)


Highest overall (219) and largest slice of EPS4 (high potential group)

Business Aspiration & Engagement

Highest at top level (25% 8-10s) and most engaged: most business ideas to

pursue (70%) and most likely to speak to others about these. Highest level of

current business start-ups.

Perceived Barriers

Money and access to finance stands out from other factors (risk is the second):

seem to be more confident; less need to know “how to get started” than other

groupings, but startup support still an issue.

Information Needs

Business websites the key focus for their search, as well as family and friends.

Access to finance, and business planning information cited as key

requirements. Over half felt that Business Clubs were a good idea in the

survey.

BusinessLink

Highest awareness and usage: but still only 20% have contacted.

School Students (14-16s)

Opportunities Out-of-hours resources (such as websites,

helplines, mobile units) and “outreach” more

relevant to this grouping

Create “Young Worker” resources for the

employed workforce with enterprise potential

Assess accessibility and “youth-friendly” nature

of BusinessLink resources. Can we do more to

encourage those in employment?

Business Clubs and online networks

Opportunities High aspiration can be harnessed by more

directional as well as experiential Enterprise

Education (eg. showing how to “start up”)

Provide effective training and resources to

Careers Advisers & Teachers

Create more interactive online resources &

networks for young entrepreneurs


early years and present enterprise as a “real”

alternative to conventional FE/HE routes


Second highest level (212) and good penetration of EPS3 & 4.


Highest overall aspirations to enter business of all groups: one third have ideas

but not pursued them. Nearly 20% are speaking to people about their ideas.

Enterprise Education has had a huge impact on their confidence - and they are

still exposed to it at this stage.

Perceived Barriers

Only group for whom money and finance are not the most important barriers:

neither is risk a big concern. Key barrier is “not knowing how to start”. (Plus,

does FE/HE route dampens the potential of enterprise?)

Information Needs

Main sources are currently friends & family, websites and teachers / careers

advisers. They seek access to mentors (and to a lesser extent, finance). More

interactive online applications & networks could provide key information &

learning resources.

BusinessLink

Over 50% of pupils had never heard of BusinessLink

15

College / 6th Form Students (16-18s)

University Students (18-25s)

Opportunities Engage tutors/teachers/careers advisers with key

enterprise messages: provide resources

Direct online resources to those in FE to

encourage engagement and widen horizons:

educate about business opportunities in each

subject area

Provide more directive enterprise education for

6th forms and colleges

Opportunities Reduce focus on Universities as centres for

Entrepreneurship? Abandon efforts in preference

to other areas?

Understand more about Enterprise opportunities

for University students: eg business modules

within academic courses

Recruit EPS4 students for Business Clubs,

incubator units, and networking opportunities


Below average levels of EP (210), nonetheless one of the highest proportions

of the highest potential group (EPS4)


Very low likelihood to have business ideas: 20% have had ideas but never

followed them up; 30% have never had any ideas; 10% never want to involved

in enterprise. 2nd lowest aspiration level.

Perceived Barriers

Money less of a barrier - but highest level of concern is around risk. Career

and academic requirements may interfere with other aspirations.

Information Needs

Business websites are as important as careers advisers, and networks of

mentors are more highly desired, as well as business planning. For those in

EPS4 groupings, access to finance is a particular motivator.

BusinessLink

Highest awareness but almost as low a usage as NEETs: 5%. 53% have never

heard of BusinessLink


Joint second highest score (212) and second largest slice of EPS4 group


Second largest engagement factor: 2 in 5 have vague ideas; 1 in 5 are

exploring 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 loss

of interest, and in spite of high potential and many ideas.

Perceived Barriers

Risk and “knowing how to get started” are less of an issue here, but money

resurfaces as a concern (perhaps linked to risk, unconsciously)

Information Needs

Business websites and family and friends are the main sources of information.

Access to finance, business planning information and a mentor network are

most needed. 60% of those who have never looked for information see

Careers Advisers as a key source of information.

BusinessLink

High awareness (44%) but in spite of many ideas, little contact (12%)

16

NEET (16-25s)

Opportunities Improve mentor network for NEETs, especially

profiling those from NEET backgrounds who

have started in business

Profile NEET population & find those with high

EP scores: recruit for dedicated programme


early years with enterprise resources & guidance

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


Lowest overall (191) and yet some potential in higher EPS quadrants


They 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 have

never shared with anyone

Perceived Barriers

Access to money, but mainly their ideas and how to get started. People they

know also are more likely to put them off thinking about enterprise

Information Needs

Careers advisers seen as major sources of information and support: those who

have actively looked for information (a minority) have used websites and

people they know in business

BusinessLink

Lowest awareness and usage: 58% have never heard of BusinessLink

capturing the enterprise of young people

Education

enterprise potential

high potential

business ideas

business arena

young people dont

s school students

s college

s university students