Skills and Attitudes for the Future

- Entrepreneurship in schools

“Innovation and Creativity in the Hands of the Young”

Des. 3. 2009 Reykjavik, Iceland

Johan H. Andresen

www.ferd.no

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Agenda

• Ferd – an overview – Who and what we are

• The rationale for investing in young people– The future of the Welfare State– Social Entrepreneurs

• An example: The Science Factory

• Junior Achievement – Young Enterprise– Europe– The Norwegian Model (Ungt Entreprenørskap)– Results

• Students and teachers• Start-up rates• Drop- out rates

• The demands of the market

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Vision, Corporate Mission Statementand Value Platform

VISIONWe will create enduring value

and leave clear footprints

POSISIONAn owner and partner who seeksnew avenues for turning bright

ideas into sound business

Corporatevalues

Operationalvalues

Capital

Networking

Expertise

Teamwork

Spirit of adventure

Credibility

Long-term view

CORPORATE MISSION STATEMENTFerd will focus on being a proactive

long-term owner of strongcompanies with international

potential as well as operating asa financial investor, making useof its core expertise in finance,

business development and networking

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Turnover EUR 2.7 bill, 19.000 employees*

*Incl. >50 % controlled companies

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Ferd investments in 50%+ controlled companies

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A privately held Norwegian investment company

Elopak (100%)

Swix Sport (100%)

Aibel (49,9%)

Nordic listed stocks

Hedgefond

Private Equity fond

Herkules Private Equity Fund I, II og III

Herkules Capital (40%)

Special Opportunities

Development

Investments

Management

Directinvestments

Energy Ventures Fond I, II og III

Energy Ventures AS (25%)

FerdExternal

Managers

FerdReal Estate

FerdVenture

FerdInvest

FerdCapital

Ferd

FerdSocial

Entrepreneurs

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Social Entrepreneurs

• People with innovative solutions to some of societies most pressing social problems

• Using business methods to achieve a ”double bottom line”

– A social and a financial bottom line

• Wish to change beliefs and thereby whole systems

• Visionary and realists – the implementation of the vision is their primary object

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• Ferd must be socially responsible in our daily activities, i.e. this is not part of a CSR policy

• Ferd invests in selected organizations, project and leaders who give people, and especially children and youth, the possibilities to develop their own ideas and full potential

• Ferd’s investments should make a measurable impact and a real difference

• Ferd’s human resources and competencies are especially valuable to social entrepreneurs

Establishment of Ferd Social Entrepreneurs

Ferd Social Enterpreneurs

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Research and Technology – for Young and Old (teachers)

Outside

Children

Inside

Youth

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Entrepreneurship & The Welfare State

• The Welfare State assumes value creation resulting in employment, taxes and fees

• Value creation assumes increased productivity due to global competition and smaller workforce

• Productivity assumes entrepreneurship, i.e. values, knowledge, skills, creativity, innovation, risk taking, execution and hard work

• Ergo:The Welfare States assumes entrepreneurship

- If you disagree, you can change your own diapers when you lie there with dementia at the age of 92…….

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1 out of 3 does not complete secondary school

Studies % whodrop out

% whofails

Language, business and admin. studies

4,9 14,7

Sports Education studies

3,0 19,6

Building studies 24,3 17,7

Electro studies 26,7 20,2

Mechanical studies 35,5 20,0

Carpenter studies 47,1 20,6

Hotel & food studies 49,2 21,4

Source: ”Selection and competance”, NifuStep, report 13/2008

A sorrycontributor to the almost700.000 Norwegianswho areoutside theworkforce –on welfare, sick leave, jail, etc….

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The Solution: Entrepreneurship in schools

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JA Worldwide®

4,098,366

1,092,005

132,908

1,209,447

3,105,753

159,418

2008-09 Enrolment Totaled 9,797,897

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Enterprisein education

JA-YE Norway

Education

Start up

Private Public

Partners in entrepreneurship

education

Support from the Government app 3 mill €

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Entrtpreneurship in schools – important to whom?

• School Administration

– Leadership and positioning

• Teachers

– Getting across, learning and celebrating

• Students

– Relevance, self worth and skills

• Employers

• Society

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By doing the JA-YE Company Program, the former students answered:• Made the schoolwork more interesting and stimulating: 80%• Influenced on the relations between students and teachers

in a positive way: 64%• Influenced on the friendship between the students in a positive way 70%

By doing the JA-YE Company Program, the teachers answered:• Meant a lot for the students abilities to solve problems: 89%• Made the schoolwork more interesting and stimulating for students: 87%• Meant a lot for the students motivation to start their own business: 73%• Meant a lot for their cooperation skills: 91%• Meant a lot regarding their attitudes to start their own business: 73%• Teaching this way, was a very positive experience for me as teacher:81%

…the “soft” skills…students 1990 - 2003

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Norwegian survey 2005

Below 21 years 0,0 %

21 - 24 years old 14,8 %

25 - 28 years old 10,4 %

29 + 26,6 %

Total 16,6 %

Start-up rate among students who have participated in the JA-YE Company Program – Upper Secondary Level - the hard facts: Students from 1990 to 2003

The average start-up rate in Norway among non-participants is 7,0 %

Effects of entrepreneurship education in Norway and Sweden on start-up rates

Study done twice in Norway and three times in Sweden.

The conclusions are the same: The level of entrepreneurial activity among students who have participated in the Company Program is at least the double of the average population…

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Reduction in drop-out rates = Increased value creation

• Reduced absence #

• Increased motivation

• Higher self confidence in selection of subjects in secondary schools

• Increases establishment of own business*

• Return: 15-23 x your money – by keeping a student in school, out of the welfare line, and

on track to employment or own start-up

* ”Promoting the entrepreneurs of tomorrow:entrepreneurshipeducation and start-up intentions among schoolchildren”- Authors Johansen and Clausen (article to be published in 2010)

# ”Company Program as mean to reduceunauthorized absence”- Authors: Johansen and Schanke, 2009

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Employers - today

• Risky to employ students who has no work experience

• But to keep cost down while competing for talent, companies do it anyway…

• Extremely valuable therefore that students get:

– Academic knowledge, combined with,

– Understanding of elementary tools and skills needed to create value.

– And this is what entrepreneurship in school does today

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What does Ferd look for when we recruit ?

• Attitudes

– Values, personal and Ferd’s, sharing the vision

– Likes challenges and responsibility

– Understands own strengths and weaknesses

– Enjoys making others excel

– Risk – understanding of and willingness

– Execution

– Sense of humor and self-irony

• Abilities

– Ability to understand complex issues quickly

– Ability to make decisions that create value

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Employers - tomorrow• The Future

– Companies know less about the future than ever before

– Even expected changes occur unexpectedly fast

– Overflow of information

– Tomorrows businesses have not been created yet

• But we do now

– Knowledge can become outdated, but the attitude to seek new understanding can last a lifetime

• The most important aspect for business:

– Students who have discovered the ability and willingness to learn continuously – and do it

– And it is this that entrepreneurship in schools must do in the future.

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Entrepreneurs are made, not born