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Guidance supporting Europe’s aspiring entrepreneurs
Policy and practice to harness future potential

CHAPTER 1
Introduction

1.1. Background: rationale, aims and objectives

Globalisation has increased pressure on economies to compete and innovate,
leading to a critical need for a vibrant base of creative and innovative
entrepreneurs (European Commission, 2003; McCoshan et al., 2010). As well as
meeting the challenges of globalisation and taking advantage of the opportunities
that arise from it, entrepreneurial people can act as an engine for growth through
job and wealth creation, boosting economic growth and supporting welfare. Other
challenges facing Europe today, including environmental sustainability and
ageing populations, also demand innovative and entrepreneurial responses
(Herrman et al., 2008). At the same time, the shift to service and knowledge-
based economies has led to opportunities for new entrepreneurial initiative,
particularly in the area of services (European Commission, 2003).
It has been argued that entrepreneurship has never been more important
than it is today. The complex and insecure economic environment requires
capabilities for solving new problems through independent and responsible action
(Mittelstädt and Cerri, 2008a; Volkmann et al., 2009). Innovative and
entrepreneurial people can contribute to all domains and sectors of society,
possessing skills and attitudes which reach further than an ability to launch and
grow new companies. Qualities, such as creativity, problem-solving and a spirit of
initiative, can be useful in all aspects of work and daily life (European
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Commission, 2004b) ( ).Individuals armed with entrepreneurial skills are more
likely to commercialise research, create research based spin-off companies,
restructure and innovate within larger companies/organisations, and seek new
solutions in the public and third sector. It has been argued that Europe’s
competitiveness, innovation and economic growth depend on being able to
produce future leaders ‘with the skills, attitudes and behaviour to be
entrepreneurial and to act at the same time in a socially responsible way’
(Volkmann et al., 2009, p. 42).
Europe does not need only new business: there also needs to be a focus on
increasing the success rate of new enterprises. One of the main reasons for the

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( ) Note: From here on, the abbreviation EC will be used to describe the European Commission
when it is referred to as a source.

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