BEST PRACTICES IN TEACHING AND TRAINING ENTREPRENEURSHIP AT UNIVERSITIES

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BEST PRACTICES IN TEACHING AND TRAINING
ENTREPRENEURSHIP AT UNIVERSITIES
The Case of Montenegro
Maja Drakic, PhD, School of Economics, University
of Montenegro, PodgoricaNatasa Masonicic,
Institute for Strategic Studies and Prognoses,
Podgorica

• Novi Sad, May 25th 2007

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Entrepreneurship conceptual issues

• Entrepreneurs only 3-5 of population
• Entrepreneurship and business in transition
  processes
• Entrepreneurship and prevailing way of thinking

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Idea of Entrepreneurial Economy at the School of
Economics in Podgorica

• School of Economics established in 1960
• The old socialist system starts to fall apart
  80s
• The discussions on democracy and private
  initiatives
• Reforms in SFRJ
• School of Economics in Podgorica The future
  lies in new way of thinking
• Young people create new way of thinking

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New ideas

• How to implement free market idea in education
  system environment students and teachers?
• Sovereignty of consumer (student) freedom of
  choice
• Motivation and incentives how to motivate a
  student
• Success is not a sin
• Theoretical basis of the studies free market vs.
  state

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School of Economics of University of Montenegro

• Radical changes of curricula in 1989/1990
• Students Club of Entrepreneurs and its
  importance
• Postgraduate Studies Entrepreneurial Economy
  founded by professor Veselin Vukotic in 1992
• Free market ideas
• Introduction of PMB studies in 1995
• Center for Entrepreneurship founded in 1996
  (CEED, Podgorica)

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Economics can not be explained by economics only!

• Curricula are based on free market ideas
• Theoretical foundation of studies
  entrepreneurial economy and free markets

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Entrepreneurial Economy

• Importance of entrepreneurship (individual
  entrepreneurs)
• Importance of freedom (economic and political)
• Importance of institution (property, contract,
  protection of property rights and contracts)
• Importance of an individual (student ? student)
• Importance of voluntary exchange
• Importance of internationalization
• Importance of giving incentives to an individual

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• PMB concept
• P stands for entrepreneurship
• M stands for management
• B stands for Business
• If you dont study economics in this school to
  acquire KNOWLEDGE how to earn money, you waste
  your time!!!
• Easy transfer to ECTS system
• Concept of PMB Studies enabled easy transition to
  ECTS
• School of Economics (academic studies) - 41, 42
• School for Management (applied studies) 32

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Course Business

• Business required course at first year of
  studies
• Students learn how to prepare business plan
• Attitude toward entrepreneurship and business
• Changes in the way of thinking

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Department for Entrepreneurship and
Entrepreneurial Finance

• 8th semester students choose one of eight
  departments - field of specialization
• Theoretical foundation of the Department
  economic liberalism and free market ideas
• Main principle theory is the best practice
  practice is the best theory Hayeks concept of
  learning through attempts and mistakes
• Freedom of choice brings responsibilities

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Entreprenereurship I t i s G R E A T!
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See the world from different angle!
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The year of 2007/08 new beginning in
entrepreneurial education in Montenegro?
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Economic Reform Network
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Concept Based on Clear Vision
Economic Reform Network (ERN)
Business Consulting
Business Services
ISSP
CEED
The Center for Entrepreneurship and Economic
Development
The Institute for Strategic Studies and Prognoses
CARA data center
MBA
MLFI
Montenegro Leasing and Finance
Montenegro Business Alliance
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• The Center for Entrepreneurship
• Economic Development
• (CEED)

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CEED Background

• CEED is the first independent consulting center
  in Montenegro established in 1993 within the
  School of Economics.
• Since 1998 CEED has operated as an independent
  organization.
• CEED has 5 offices and staff of 21 people.

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CEED Structure
1
2
3
4
Service Activities CEED
Business Consulting CEED
Business Associations Development Montenegro
Business Alliance (MBA)
SME Financing Montenegro Leasing
Fund (MLF)
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Development of services
Elements of the Service Activities
Policy Recom- mendation
Research and Analysis
Advocacy
Media
Media
Education and Training
Publishing
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Achieved results

• Around 30 surveys prepared, conducted, results
  printed and distributed. Many of them have become
  regular surveys (e.g., Barriers to Doing Business
  in Montenegro).
• CEED experts were involved in drafting 8
  business-related laws. All of them were passed
  and are being implemented.
• New quarterly edition titled Montenegro Business
  Outlook was launched and 20 issues were published
  and distributed.
• Fruitful edition was launched 9 leaflets that
  briefly explain business laws were published and
  distributed.
• 6 conferences and 35 round-tables were held to
  help the business community increase its
  influence on the major issues related to economic
  development.
• 12 reform-related publications were printed and
  distributed.

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Development of consulting

• CEED originally offered consulting services to
  entrepreneurs and small businesses.
• The need to offer more complex consulting
  services led to a diversification of our
  portfolio.
• Currently, CEED has 12 consultants working on 11
  major projects in addition to on-going
  consulting.
• CEED clients are Control Risk EBRD, JT
  Investment Sarbor (Slovenia), North Atlantic
  International Inc., UNDP Afghanistan, etc.
• CEED is constantly providing training to its
  staff. Now we have 9 people that are certified by
  SGS (Swiss base company) for ISO 9000
  pre-certification in Montenegro.

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Achieved results

• 500 business plans for individual entrepreneurs
  developed focusing on specific sectors tourism,
  services, manufacturing, etc.
• 70 business plans for women entrepreneurs
  developed.
• 15 investment plans prepared.
• 20 market researches projects completed.

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Montenegro Business Alliance
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MBA Development

• MBA was founded in 2001 and had 10 members.
• MBA is a coalition of Montenegrin companies,
  entrepreneurs, business associations and foreign
  investors.
• MBA has established as the first private,
  voluntary, business umbrella association, whose
  membership is open to entrepreneurs, business,
  and associations.
• Today MBA has around 500 due paying members,
  employs over 15,000 workers.

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Achieved results

• 12 Business-to-Business meetings 4 Business
  forums and 6 regular Assembly meetings have been
  held.
• 12 seminars throughout the country on the
  implementation of the new Enterprise Law have
  been conducted.
• As a result of the advocacy to pass the new Law
  on Accounting, the MBA gained membership on the
  Board of the Accounting Institute.
• MBA managed to increase concession to private
  sector in the area of wood processing by 5.
• As a result of MBAs advocacy effort, Ministry of
  Finance reduced by 10 the employer tax and
  reduced corporate tax from 20 to 9
• MBA has been accepted as a legitimate
  representative of the Montenegrin private sector
  by the WB group, IMF, WTO and other international
  financial organizations.

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Overview of CEED Activities
Independent organization. Self-financed through
shareholders fees/payments.
Training and education
Business Consulting
Leasing Fund
MBA Development
Advocacy and Media
Services Research, Publishing, Corporate
Governance
Independent organization. Self-financed through
collection of dues.
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• The Institute for Strategic Studies and Prognoses
• (ISSP)

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Background

• ISSP was established in 1998.
• Today ISSP is an indispensable partner to the
  Montenegrin Government and to various
  international organizations (including USAID, EU,
  World Bank and IMF) involved in promoting
  economic reform.
• ISSP is looked to as the most trusted source of
  economic statistics, economic analysis, and
  policy recommendations.
• We established a new Center for Applied Research
  and Analysis (CARA) which provides regular
  research and analytical support to ISSP, and
  which has developed the biggest economic data
  base in Montenegro, and conducted the first
  measurement of economic freedom in Montenegro.
• ISSP and CARA have staff of 21.

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Achieved results

• ISSP published 22 Working Papers on different
  topics to promote reform efforts.
• ISSP organized 25 roundtables and 20 seminars on
  different topics and launched a series of
  publications summarizing the roundtables called
  the Roundtable Edition.
• After 3 years of gathering data, doing
  calculations and analyses, ISSP produced the
  first accurate GDP calculation for Montenegro. It
  was accepted by the GoM, Central Bank and the key
  international organizations, such as the World
  Bank, IMF, and EU.
• ISSP co-organized a regional conference on energy
  with 100 participants from Albania, Bosnia,
  Croatia, Kosovo, Republic of Srpska, Romania,
  Serbia, and Slovenia and regional Conference
  Economic policies for Viable Micro-State (Jun
  2003).
• ISSP published 25 issues of Monet, which now
  consists of approximately 100 pages of economic
  statistics and analysis and has a circulation of
  approximately 250 decision-makers in Montenegro
  and another 500 in the region.

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Continuing from previous page

• ISSP published 12 Household Survey Reports.
• Macroeconomic Policy for the Central Bank was
  prepared by ISSP at the request of the Central
  Bank, on a variety of topics. This policy agenda
  was adopted by the governing board of the Central
  Bank.
• Economic Reform Agenda - ISSP supported GoM by
  managing the key economic areas and participating
  in the relevant working groups.
• ISSP assisted FIAS in preparing a diagnostic
  study on the investment environment for
  Montenegro.
• Completed the first Transition Report in
  cooperation with the G-17 Institute from
  Belgrade.
• Completed work on sectoral analyses in trade,
  banking and tourism, IT sector, maritime sector,
  agriculture and forestry.

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What we believe is important?

• Helping the recovery of the middle class.
• Trying to keep young people in Montenegro by
  offering them opportunities in the private
  sector.
• Supporting a new class of entrepreneurs and new
  segment of firms that arise from the bottom.
• Supporting the Montenegro Business Alliance as a
  future private Chamber of Commerce.
• Moving towards greater regional cooperation.
• Increasing training and education of
  entrepreneurs and mid-level managers.
• Increasing SME financing through leasing.

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• THANK YOU FOR YOUR ATTENTION!

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Please Visit

• www.psee.edu.cg.yu
• www.isspm.org
• www.visit-ceed.org
• www.visit-mba.org
• Maja Drakic
• School of Economics, University of Montenegro
• Institute for Strategic Strudies and Projections
• majad_at_cg.yu
• Natasa Masonicic
• Institute for Strategic Strudies and Projections
• n.a.masonicic_at_cg.yu
• issp_at_cg.yu