centres - evaluation of pilots - estonia

CENTRES

CENTRES (Creative Entrepreneurship in Schools) project has been funded with support from the European Commission.

This publication reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein.

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With the support of the Lifelong Learning Programme of the European Union

ENTRUM Foundation: Pilots Evaluation Report in Estonia

1. Context

Estonia is a small country in Northern Europe with less than 1,4 m inhabitants. Nevertheless Creative Industries (CI) have an increasing role in strengthening the state’s competitiveness and developing a knowledge-based economy. Creativity is becoming the key component in several sectors and this has a focal role in achieving not only economic objectives, but also improving our environment, quality of life, innovation and competitiveness. As a result, creative industries play a considerable role in regional development, tourism and increasing the state’s export capacity. A special study has shown that in 2007 over 5000 companies and institutions operated in the creative industries sector, amounting to 9,4% of the total number of companies in Estonia. The total income of CI companies per year in 2009 amounted to 1 146,42.- EUROs. The creative sector is growing constantly so that in 2011 the sector accounted for 3% of the Estonian economy1. To move forward Estonian Creative Industries needs highly motivated young people with an enterprising mind-set and well-developed social and business skills, as well as professional contacts. The main challenge is that the alumnus of Estonian schools does not fit those requirements. So they experience difficulties in fulfilling themselves as professionals, as well as establishing their own enterprises. Nevertheless of the fact that Estonia already have Junior Achievement students company programme for the last 20 years, as well some short-term project based initiatives around Estonia. We still had in 2009 more then 10 000 unemployed young people aged 16-24. That means young people in Estonia still constitute serious challenge for country social system instead of creating additional value for the country.

2. Approach In 2010 the Estonian Chamber of Commerce and Industry developed a concept of an ideal of a personality with an enterprising mind-set that became a basis for the framework document “National Entrepreneurship Development Plan” that was signed by the Ministry of Education and the Ministry of Economics of Estonia. In the same year the Youth Entrepreneurship Development Programme and Contest ENTRUM was launched by Eesti Energia (Enefit). The programme was also based on the concept of an ideal of a personality with an enterprising mind-set mentioned above and this purpose was to create a generation of young Estonians with an enterprising mind-set and appropriative social and business skills, as well as contacts among professionals and entrepreneurs, that will support youngsters’ self-fulfilment in such economy sectors as IT, energy, engineering, social entrepreneurship and creative industries. CENTRES pilot activities helped the Entrum Foundation to test the “ENTRUM 4-steps enterprising mind-set creating” methodology2 on Creative Industries (CI) 1 Creative Industries in Estonia (2011), Loov Eesti

2 ENTRUM 4-steps methodology: 1 step – bring youngster out from her/his everyday environment (school and

home), inspire and encourage, bring outside of everyday environment; 2 step – teach practical skills social and



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start-up’s, including creation of links and professional contacts between youngsters and CI business-incubators and entrepreneurs by visiting business-incubators and mentorship by CI entrepreneurs. Parallel to the abovementioned pilot activities we decided to create a new methotodology for boosting youngsters immediate readinees to act, as well improve their knowledge related to logic of creative industries functioning (production, post-production, marketing) and launched “Music video production action” (limited time and resources approach). So actually the Entrum Foundation has carried out two different pilot activities.

3. Rationale The education system in general experiences a gap in providing to youngsters real life experience, where youngsters can explore what it means to initiate, manage resources, take responsibility for decisions in collaboration with concrete economy sector partners such as business-incubators, the regional development sector, entrepreneurs. Creative industries are not an exception in this sense. That is it is so important that the learning by doing process would be accomplished in cooperation with CI business-incubators and entrepreneurs, who will explain and show in practice how creative industries work in reality including business and production processes. So the main emphases was put on bringing 13-19 year old school students outside of their everyday environment (school and home) and giving them the chance to taste real life. In the case of the second pilot activity (music video production) it was important that youngsters get production experience, where the final result will reach a much broader audience than just their own school and family. It must be something that will reach a national TV channel audience and public. So that young people can feel the connection between the initiation, production and delivery process of the product that would be consumed by more then 30 000 people. So this will give them the feeling that they do something real, something that other people really need, not just doing things as part of a study process.

4. Pilot Description Pilot activity 1: ENTRUM enterprising mind-set creation 4-steps methodology application to CI start-up’s (17.10.2013 – 22.05.2014) The participants of pilot activities: 13-19 year old students from different schools around Saaremaa, Hiiumaa, Pärnumaa and Viljandimaa counties in Estonia. Students were selected on the basis of preliminary registration. First they were invited to participate at the ENTRUM Opening Show in Pärnu Concert Hall in October 2012, where they meet with the ENTRUM patrons (Estonia’s most successful and famous celebrities), mentors (entrepreneurs), as well as representatives of business-incubators and regional development centres. Youngsters got inspiration and the opportunity to brainstorm with the help of the entrepreneurs on their first ideas for start-up’s that they would like to launch. They also learned to use out-of-the-box

business skills that will support enterprising mindset (teamwork, goal setting, action plan, resources management, business model generation); 3 step – integrate youngsters to the network of entrepreneurs, one-to-one mentoring and colloboration with business incubators; 4 step – create entrepreneurial lifestyle (including what to read, what events to visit) by socialising.



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thinking, skills and interests self-assesment, identification of creative passion, other people needs (business opportunity and market research).

To participate in the 4-month incubation programme youngsters needed to electronically register their idea and team. It was a compulsory condition to pass to the incubation programme that lasted from November 2012 to February 2013 and had 3 one-day sessions and 1 Night Session:

One-day session “Define your idea!” November 2012

Team-bulding, different types of business models, business planning, introduction of Estonia’s entrepreneurship and creative industries ecosystem.

Night session “Think smart!” December 2012

Financial planing, budgeting, accounting, product costing and pricing, start-up capital, sales pitching.

One-day session “Act wisely!” January 2013

Marketing and communication planning Marketing products (press-realise, video) contest.

One-day session “Take responsibility!” February 2013

Analysis of business idea launching results, pitching exercises, business ethics, collobration with Estonia’s entrepreneurship development and creative industries ecosystem.

Sessions took place one time per month. Each session had 3 different parts:

1. Hour of Inspiration (1 hour) – talk-show in a large Concert Hall with some famous entrepreneur or celebrity on some particular topic related to the business model generation.

2. Entrepreneurship LAB (4 hours) – practical work on start-up’s development by economy sectors.

3. Quality time with mentor (1 hour) – start-up team used that time to agree with their personal mentor the next steps or discuss any difficulties. Each team had their own personal mentor.

Altogether 177 youngsters and 61 start-ups entered the ENTRUM incubation programme in the field of Creative Industries. Each start-up team could consist of 1-6 members.



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Economy sector Number of participants and start-up’s

Creative industries: design, theatre, movie, cross-media

35 start-ups (107 youngsters) 35 mentors

Creative industries: music industry and events management

26 start-ups (70 youngsters) 26 mentors

Overview of pilot activities events:

After incubation programme altogether 10 “CI: design, theatre, movie, cross-media” start-ups and 6 “CI: music production and events management” qualified for participation in the ENTRUM Superfinals in March 2013 at Pärnu Concert Hall.

“Creative industries: design, theatre, movie, cross-media” finalists

»Creative industries: music industry and events management« finalists

1. “Amberella” - Fashionable raincoats; 2. “Arting grupp” – Indoor painting service; 3. “E-Talentbank” – creative industries young professionals labour exchange; 4. “Kenert Tamm Photography” – nature photography service; 5. “MIREMBE kleepsud” – disian stickers; 6. “Noorte Avastamata Kunstnike; Näitused” – young artists exhibitions and art sale; 7. “Põnev Tootsi Noortepark” – Free time and Entertainment Park; 8. “Sierra” – Design Clothing to Martial Arts Enthusiast with reasonable price; 9. “Tegude Päevik” – diaries for youngsters; 10. “Tervisliku toitumise ja spordi lehekülg” – healthy lifestyle promoting webpage.

1. “ArtJam” – Summer camp for artists; 2. “Hiiumaa Muusika- ja Tantsulaager” - creative industries summer camp for youngsters on Hiiumaa island; 3. “Kinu peab saama!” – 5D movie theatre; 4. “Stuudio MSN-I Musuikute võrgustik” – record label; 5. “Muusikabänd The True Smile” – music band; 6. “Ulatame käe läbi meloodia” – Charity Concert with Estonia’a most famous pop singers



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To qualify for the Super finals it was necessary to present a prototype (min results) and first sale results (max programme). Next you can find comparison of CI start-ups statistics to the others sectors of the economy:

Sector of economy Number of participants and launched start-ups

Number of finalists and implemented ideas

%3

1. IT ingenuity 16 start-ups (39 youngsters) 5 start-ups (16 youngsters)

41%

2.Social entrepreneurship 29 start-ups (102 youngsters)

9 start-ups (35 youngsters)

34%

3. Service economy 55 start-ups (155 youngsters)


32%

4. CI: music production 26 start-ups (70 youngsters) 6 start-ups (22 youngsters)

31%

5. CI: design 35 start-ups (107 youngsters)


30%

As we can see from the results CI are quite popular among youngsters. One third of all initiated ideas (61) are under CI. The total amount of enterprising ideas (total 161 ideas). At the same time start-ups survival index show that CI start-ups are not so successful in creating a real product or service in a 4-month period of time. “CI: music production” and “CI: design” are in the last places in start-ups rankings. Nevertheless the strongest CI start-ups were awarded at the ENTRUM Awards Gala on 22 May 2013 in Pärnu Concert Hall with the participation of Estonia President Toomas Hendrik Ilves:

1. Best Creative Industries: design, theatre, movie, cross-media start-up – “Tegude päevik” (diaries for youngsters). Start-up “Tegude päevik” is now profitable enterprise, which produces calendars and notebooks for school students and sells them over all Estonia.

2. Best Creative Industries: music production and event management start-up – “Ulatame käe läbi meloodia” (Charity Concert with Estonia’s most famous pop singers).

All CI start-ups finalists have received a certificate certifying their skills to potential future employers, as well as giving them the right to be entrepreneurial in their own right.

3 Start-ups survival % - how many youngsters started with their start-ups launching and how many of them

qualified for Superfinals (realised their idea).



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In the case of this particular pilot activity the following institutions can be considered as indirect beneficiaries:

Estonian Business Incubators and institutions promoting CI(3):

1. Tallinna Ettevõtlusinkubaatorid;

2. Tartu Loomemajanduskeskus;

3. LOOV EESTI

Better awareness of youngsters about CI in general, as well as about the role and services of business-incubators, including conditions of incubation services, events.

Regional Entrepreneurship Development Centres (4):

1. Hiiumaa MAK 2. Saaremaa MAK 3. Pärnumaa MAK 4. Viljandimaa MAK

Better awareness among youngsters of entrepreneurship in general, as well as about the role and services of regional entrepreneurship development centres, including conditions of incubation services, events. Ready to use methodology that could be adopted for county needs.

Creative industries SME-s and entrepreneurs

Better understanding among entrepreneurs of methodology of how to develop necessary skills for a successful professional life among young people. Overview of current situation with school students’ readiness to join labour market as employees or entrepreneurs. Contacts with talented youngsters they would like to cooperate with further.

Local (48) and regional (4) governments

Local and regional governments have got experience, motivated young people, who will soon become leading members of local communities as professionals, entrepreneurs and responsible citizens.

Pilot activity 2: Night Music Video Action (8th - 9th December 2013) Altogether 300 participants were selected to participate in the Night Music Video Action. The ages of participants were 13-19 year old. There was no any previous experience or special knowledge required. The synopsis of the music video was created and conducted by ENTRUM youngsters themselves under supervision of a professional production team High Roller Films. The aim was to develop the youngsters’ creativity and raise their awareness and practical skills in the field of the production process in creative industries, including event management, music production, video production and marketing. The main feature of the “Music video production” methodology is stressful conditions: constraints of time and limited resources: one location and specific technical equipment (camera Phantom FLEX), as well as a special condition – all 300 participants must be involved in the production process of the music video.



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Before the action the youngsters organised a public poll with the purpose of choosing most popular pop song to produce a video for. As results of the public survey the Teele Viira, Tuuli Rand and ULA – song “Ring the Alarm” was chosen to make the music video. The music video produced by the youngsters was broadcast on the national TV channel ETV2 and stayed in the music charts for 3 weeks. The video has been viewed more than 30 000 times on YouTube and shared 200 times on Facebook.

TV interview http://etv2.err.ee/videod/eestitop7/35505947-fcc8-4593-81ac-79abd64a6780 starting 27:01

5. Impact & Legacy Pilot activity 1: ENTRUM enterprising mind-set creation 4-steps methodology application to CI start-up’s (17.10.2013 – 22.05.2014) According to the evaluation forms4, as well as start-ups public pitches5 in the ENTRUM Super finals on 22 March 2013 the “ENTRUM 4-steps” methodology impact was very serious:

1. Instant “infection” by enterprising mind-set “virus” – mind-set and lifestyle. Even those

youngsters (CI start-ups members) who dropped out admitted a direct impact of methodology on their mind-set. Some of the CI alumni continued their activity as legally registered enterprises.

2. Direct connection of ENTRUM CI start-ups to creative industries business-incubators

and entrepreneurs helps avoid “putting students in the bubble” and created direct links between students and all creative industries ecosystem.

4 16 start-up hard copy diary with section identifying start point of the team, final results and progress evaluation

by participants themselves, mentors, regional and professional evaluation commissions. 5 3-minute pitch, where participants speak about their results, study experience and insights. You can find

example here: www.youtube.com/watch?v=KubMiO2bvR4

http://etv2.err.ee/videod/eestitop7/35505947-fcc8-4593-81ac-79abd64a6780

http://etv2.err.ee/videod/eestitop7/35505947-fcc8-4593-81ac-79abd64a6780

http://www.youtube.com/watch?v=KubMiO2bvR4



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3. The “ENTRUM 4-steps” methodology has a similar effect (creation of enterprising mind-set, social and entrepreneurial skills) on creative industries’ start-up members as to youngsters launching start-ups in high technology, social entrepreneurship and service economy. At the same time the number of students who drop out is higher in comparison to other economy sectors start-ups.

4. The “ENTRUM 4-steps” methodology’s successful implementation in CI start-ups development requires support for youngsters from their school administration, teachers, local governments, regional entrepreneurship development centres.

5. The impact of the “ENTRUM 4-steps” methodology was really remarkable if we speak about mentors and business-incubators: 1/3 of the entrepreneurs were ready to contribute on a regular basis next year. Most of them admitted revitalising energy of young people that motivated entrepreneurs to make changes in their own businesses.

6. Creative industries business-incubators expressed readiness to continue and intensify collaboration in the field of creative industries start-ups training by contributing their own resources. Already next season “Tallinna Ettevõtlusinkubaatorid” (Tallinn Business Incubators) and LOOV EESTI (Creative Estonia) will become ambassadors and supervisors of the appropriative entrepreneurial LAB-s:

Tallinna Ettevõtlusinkubaatorid – Creative industries: design, printed and digital media, advertising.

LOOV EESTI – Creative industries: music production, event management, theatre, movie, broadcasting.

Under supervision of the institutions mentioned above the curriculum of the incubation programme was revised and improved taking into consideration needs of the creative industries.

Viljandimaa Regional Entrepreneurship Development Centre launched its own county programme based on the “ENTRUM 4-steps” methodology.

Saaremaa Regional Entrepreneurship Development Centre improved its existing programme for school students taking as the example the “ENTRUM 4-steps” format and methodology.



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Pilot activity 2: Night Music Video Production Action (8th - 9th December 2013)

1. Youngsters respond well to actions, where they can create value in a very short time and on a large scale – visible results in a very short time and having a real impact not only in their own network, but on a national level;

2. Youngsters, in the opposite way to perceptions in Estonian society, are ready to take initiative and responsibility for projects they really care about. This means that study activities must be meaningful for them, not just for the aim of fitting a curriculum;

3. Creative industry production process must be learned via practical activities and

followed by seminar, where youngsters can analyse what they have done and how they have done it6.

4. Youngsters created CI products are a valuable contribution to market diversity and

the different client age groups needs satisfaction (Justin Bieber efect).

5. Night music video action is also organised for next season in Tallinn.

6. Tallinn city is planning to organise their own teenagers’ Night Music Video action in September 2014.

7. Quality

According to the feedback of participants and partners the “ENTRUM 4-steps” and “Night Music Video action” approaches are perfect to inspire and empower youngsters to get started, discover creative industries inside life and with people around, take responsibility for the project success. “The participation in the ENTRUM programme “Creative Industries: design LAB” gave impetus to starting action, as well as knowledge of how to act. It gave us so much self-confidence”.

6 Impact and insights summary is based on 300 youngsters electronic questionnaires before action and after

action.



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Start-up “Arting group”, CI: design: “We already had the “enterprise virus”, when we joined the ENTRUM programme “Creative Industries: design LAB”, but ENTRUM was a real opportunity and gave us the courage to start do real things. Thanks to “Creative Industries: design LAB” we can face the challenges and find creative and sensible solutions. We have got very important experience. We believe that this experience is the foundation of our success in the future. Start-up “Mirembe stickers”, CI: design. “When you learn how a music video is made and at the same time are contributing into this process yourself, it gives way more than listening to yet another boring lecture and taking a test. This definitely motivated me to put more effort into my own business project.” Magnus Liir, Night Music Video Action participant. What might be improved? 1. The quality of mentors. Entrepreneurs involved in mentoring must understand their

responsibility and be determined. Improvement of mentors selection and scholarship.

2. Very important is collaboration of mentors and students between the sessions. It is much more effective when a mentor is able to supervise the work of a start-up between one-day sessions once a month. Continuous contact between mentor and students is necessary.

3. The number of “Creative industries LAB-s” must be smaller, so supervisors can pay

more attention to each start-up. 4. Sessions must be accomplished by working visits to Creative Industries business-

incubators and regional development sectors, as well as creative industries enterprises. 5. Creative industries start-up members needs environment, where they meet their teams

and develop their products, services – hubs designed for creative industries youngster’s start-ups needs.

8. Insight

The “ENTRUM 4-steps” approach implementation to development of creative industries start-

ups and “Night Music Video Action” demonstrate that creative industries can be successfully

learned and practiced by 13-19 year old youngsters outside of school. At the same time it

requires intense collaboration between institutions of the educational sector (schools), local

communities, regional development centers, a neutral platform (ENTRUM programme), as

well as creative industries business-incubators and entrepreneurs to make it happen. That

model and approaches could be implemented in other countries. Direct reference to the

necessity of particular initiatives can be found in the European Commission action plan

“Entrepreneurship 2020”7. To make the abovementioned approaches continuously work in

7 http://ec.europa.eu/enterprise/policies/sme/entrepreneurship-2020/index_en.htm (pp 5-7; 21-22)

http://ec.europa.eu/enterprise/policies/sme/entrepreneurship-2020/index_en.htm



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Estonia and other countries in future there are a number of measure that must be

implemented:

The policy issue The best policy option

The high level of unemployment among young people in Europe (young people, who prefer to stay in their comfort zone or do not have enough entrepreneurial social skills).

Entrepreneurial formal and informal education must become an important and compulsory part of every member-state educational system. “Entrepreneurship” or “Entrepreneurial Learning” including development of entrepreneurial mind-set and appropriate skills, as well as contacts in the system of the national entrepreneurship development ecosystem must become a mandatory part of the secondary school curriculum from 7th grade (12-13 year old youngsters). Every secondary school student must participate in at least one non-formal educational programme or contest directed to develope pratical skills (mini-company programme, ENTRUM start-up programme, Aflatun). It must be a mandatory condition for graduation.

Insufficient number of teachers

with entrepreneurial mind-set

Entrepreneurial education must became a mandatory part

of high school education for all teachers (please see

European Commission action plan page no 7)

Insufficient number of teachers,

who are specialised in

Entrepreneurship education

Universities must start to prepare “Entrepreneurship

teachers” for secondary schools. To guarantee young

teachers’ practical education all teachers must pass

practice in non-formal national entrepreneurship

educational programmes.

Lack of cooperation between educational system and entrepreneurship development systems:

-Youngsters have no idea how national entrepreneurship development system works and what kind of services can be provided to them; - Formal entrepreneurship education does not create links to a national entrepreneurship development system (business-incubators, regionaldevelopment centres, HUB-s, accelerators).

1. Funds for business-incubators to provide to schools and non-formal education programmes additional assistance and consultants on how to coach young people and introduce them to the work and services of business-incubators.

2. Funds for national mentors network consisting of active entrepreneurs with purpose to recruit and educate entrepreneurs-mentors.

3. Funds to regional entrepreneurship development centres to recruit additional consultants, who will provide consultancy and assistance to school students as part of their participation in mini-company programme, ENTRUM or Aflatun.

We do not have a high enough Tax reductions for enterpreneurs volounteering as



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number of active entrepreneurs, who are motivated to contribute their personal time and efforts to coaching secondary school students

mentors.

Lack of private sector financial

contribution to youngsters

creative entrepreneurship

development activities

To make financial contribution to entrepreneurship

education more attractive to big corporations’s CSR

activites it is necessary to implement tax reductions and

fiscal regulation at an EU and a national level.

Lack of infrastructure for

youngsters with an

entrepreneurial mind-set

Create youngsters HUB-s and business-incubators, that will provide mentorship and funding for kids and youngsters-entrepreneurs.

For example: http://businessincubatorforkids.org/

centres - evaluation of pilots - estonia

Documents

creative industries

creative industries

creative sector

estonian creative industries

logic of creative industries

ci entrepreneurs

ci businessincubators

social entrepreneurship