Economic And Entreprenurial Education In Romanian In The European Contextdoc

=== Economic and entreprenurial education in Romanian in the European context ===

Economic and entrepreneurial education in Romanian in the European context

Csaba CSINTALAN PhD student, University of Oradea – Faculty of Economic Sciences e-mail: [anonimizat]

Alina BĂDULESCU Professor PhD, University of Oradea – Faculty of Economic Sciences e-mail: [anonimizat]

Otilia CADAR PhD student, University of Oradea – Faculty of Economic Sciences e-mail: [anonimizat]

Abstract: Economic and entrepreneurial education in Romania represents both an absolute necessity at individual level, and an opportunity which requires to be followed in the present European context of an increasingly important role attributed to entrepreneurship. Economic education, if started at young ages, could contribute to better preparing the individual for an autonomous life, by endowing him or her with knowledge and abilities related to personal budget administration, better understanding of financial mechanisms, role and opportunity of credit and lending, efficiency of personal expenditure etc. Meanwhile, it is an opportunity in the present conditions, when a strong discussion of new curricular architecture has emerged. We strongly consider that economic and entrepreneurial education should be a mandatory study object. This opportunity is also a challenge, given the actual trend of global economic development, when the knowledge of the economic and entrepreneurial environment should become an activity of modelling individuals through different economic and entrepreneurial game scenarios, starting from the school age, as to eventually become a successful entrepreneur. We argue in this paper why Romania should benefit from this opportunity and align its curriculum to European standards and finally recognise the importance of economic education for promoting the welfare of our future society and educate individuals who are responsible for their decisions.

Key words: economic development, entrepreneurship, Europe 2020, European Commission, creative economic education.

Jel Code: A2, O1, O15, F5

Introduction

The concept of education must be based upon a strong cooperation between teachers and students, by providing an academic mentorship able to come forward with new forms of education. Therefore I think that economic and entrepreneurial education in the 21st century must not be an optional one, but rather a compulsory one from the lowest possible level (secondary school). In the educational system, everything that has an optional character is perceived as not having a necessary character and that doesn’t last. We must not see economic and entrepreneurial education from a future point of view, nor should we postpone things. We must see it as present opportunity, as something that we are doing today for the future. What we are doing today as an economic entrepreneurial theory in the educational system as a strong foundation meant to lead to the creation of new entrepreneurs whose role is to bring about economic growth and development. Economic and entrepreneurial education assimilated within the educational system becomes, for an individual, a possibility for self-government. He can understand the economic and financial mechanisms form winning to losing and from winning to paying taxes. Thus, our business grows in accordance with economic growth and development.

Through the perspective of life lived in society, „education makes democracy to be possible and, together with the economic development, to become necessary, even unavoidable.” (Galbraith, 1997) „There is no population well educated – John K. Galbraith said – to accept a dictatorship regime or, at least not in the measure that the fact can produce revolt. On the other side, dictatorship government of poor and illiterate people is more than obvious.” (Galbraith, 1997).

Doctor Albert Szent Gyorgyi had a similar view: “A good education could also solve another important problem that man has : what to do with himself once he starts produces more than he consumes” or that “education is one of the most important activities of humankind.” Therefore I consider that education can solve a problem that belong to the educational system, but which requires cooperation between all decisional factors at a precise moment. Education is “neither mine, nor yours”, it belongs to the past, present and future, it is within ourselves, from behavior to solidarity. Therefore, education is more than a theory. It has to manifest itself permanently and theory must be put into practice. There’s nothing more clear and appropriate nowadays in order to become a compulsory subject than economic entrepreneurial education taught in secondary school. Today’s economy cannot be viewed without entrepreneurship, economy, marketing or management. Besides the fact that it is crucial to economic growth and development, it contributes to the development of self consciousness, of positive esteem, it encourages independence and leads to the development of those abilities of taking decisions, and lastly it ensures a proper climate for integration in a successful business.

1. The concept of economic and entrepreneurial education

Economy must not be seen as a simple notion over witch we stumble daily. It is present in our personal as well as social life. But we must focus on it in the future in order for it to have a well defined presence in the educational system, since it is a known fact that economy profoundly influences our life ever since childhood. The rhythm of changes in the economic environment, and not only there, has become more and more organized. It is better defined from the economic point of view. In order for the economic environment to be better understood and supported, the deciding factors must tackle economy in the educational system. We define the notion of education as a continuous process of education which contributes to the education of a person, to the development of the society thanks to the work carried out, assimilated by some form of education. When we think about economy, saving, economical, we tend to think about money, remuneration, making profit or calculating savings. From this perspective, we coined the notion of “economic education” and we defined it as follows: “the educational institutional place called school where money should be known under its virtual aspect, through different practical activities taking place in the classroom in order for the pupils to better understand financial mechanisms in the future. Through economic education one must understand the aspect through which pupils will be able to realize at some point the necessity of respecting every amount of money obtained. Therefore I consider that economic education plays an important role in the development of the pupils envisage certain aspects that depend on financial mechanisms (selling, buying, earning, losing). Pupils must discover within themselves certain economic skills that can be put into practice through different role plays, ever since the first level of education (preparatory class). Therefore, personally I think that one of educational projects taught at all levels should be “the educational economic project” as a form of early education, one meant to persuade the pupil to contribute to his financial and economic support. Economic education, declared by UNESCO as one of the new forms of education, makes the pupil understand daily problems, identify solutions and evaluate the consequences of the personal decisions, but also those of his parents or those taken by the authority. Economic and entrepreneurial education constitutes itself in modern dimensions of education which influences the future entrepreneur. It aims at an early forming of entrepreneurial knowledge which will, at some point, have an impact on the economic and growth and development.

Table no.1 The strategic targets of the economic and entrepreneurial education

Source: created by the author.

Educating people, generally, and young people, particularly, in the spirit of the market economy, is benefic for every day life, but also for their professional evolution, being an indirect preparation for work and private initiative, and it helps personal and social development. The need for economic and entrepreneurial education is a nowadays reality. From a current need until its fulfillment, all parties must get involved. Current needs must be applied in everyday practice, within new educational subjects. The syllabuses concerning economic and methodological education in our countries have been reconsidered and considerably improved from the qualitative and methodological points of view, but there was no further interdisciplinary direction in the post/secondary school education system. Not to mention the information content which is not suitable for the class level intended for or the information is common to other subjects as well. Not lastly I would like to remind to reiterate the insufficient number of classes allotted for this subject (one per week). It is completely insufficient, taking into account the importance of the economic subject. For high school and vocational school, the educational framework mentions “Man and society”, economic subjects such as: Economy, Entrepreneurial Education, Methods and Techniques of Economic Analysis.

Therefore, education in the economic field is shaped as a system with different components demanding specific approaches, meant to offer to those with real entrepreneurial abilities, the necessary information to achieve success. In 2006, the European Parliament and the Council from 18 December 2006, proposed the Key Competences for Lifelong Learning- a European Framework. It is recommended that the educational system be centered on key-competences, (the concept of competence is extensive. It represents professional competences and abilities, but also knowledge with an instrumental function); communication in Romanian and if necessary in the mother tongue language,; communication in foreign languages; competences in mathematics, fundamental competences in science and technology, digital competences; the capacity of learning to learn; social and civic competences; initiative and entrepreneurship (the abilities of discovering, of team work, of creating projects and taking decisions regarding the objectives of the project, risk taking in different situations. The Ministers of Education, through the declaration of Louvain la Neuve, in 2009, stated that: “ the educational system centered on the student and mobility will help the latter develops necessary competences in a work market that is in a continuous change and will help for become an active, responsible citizen in the society.” But in order for the economic information to be easily assimilated in the academic system, the post secondary school education system must focus on the opportunity of introducing economic classes in school as early as possible(secondary school).

2. Economic education: its role and functions

Economic education is meant to educate current pupils in the economic and democratic field and spirit, in the entrepreneurial spirit, shaped as a system with different components demanding specific approaches, offering those who have real entrepreneurial abilities the necessary knowledge to be successful. Economic education is meant to make nowadays world realize its economic role in society, but also the role economy plays in people’s personal development, that of mutual support entrepreneur-economy and economy (legislative stability)- entrepreneur. In his work “Education and its role in the social economic development”, professor Emil Paun stressed that “the educational system is at the basis of economic development”, creating in the ’70 s a point of departure in tackling from a different perspective the importance of that period. (Paun 1974, p 56)

The educational system has direct and indirect effects, professor Paun stated in his work. The direct effects have to do with preparation for a certain field, profession, activity, while the indirect ones are economic and social advantages. Investment in quality education is the one that generates “profitability in a strictly economic sense”, because it “can generate economies by diminishing the costs of these negative social phenomena generated or influenced by the lack of education or by a precarious one characteristic of most members of society”. (Voiculescu, 2008, p 34.) By the functions of education we understand the roles it has in forming and developing the personality of an individual and his preparation for a possible future entrepreneurial ability. The importance of economic education doesn’t have to do only with economic fundamental principles or with the way in which the economy of a certain state functions. Economy studies the way decisions are adapted, the way market functions but most of all it advises young people as to managing their business through existing resources they dispose of or they might dispose at a certain point, knowing that there will be more and more business opportunities and young people must be prepared as soon as possible. It’s schools responsibility to provide the instruments they need in order for them to take the best decision at the proper time. Therefore I consider that economic education must be a compulsory subject matter with well defined themes, with clear contents that must be debated after theoretical and practical evaluations. Economic education must be a synergy of interdisciplinary activities aiming at assimilating economic and financial information not only from a subject matter to another one. Here is how the famous thinker Jean Jacques Rousseau defined the importance of economy in his book “Emile”: “Everything that we are not born with but that we need once we grow up is given to us through education. This education comes to us from nature, people or things. (Rousseau ’79, p 139). Therefore I think that we have to take the first step towards realizing the importance of economic education as a high priority of primary level of education. The functions of education are the social consequences of forming and development of the human personality, from the level of the educational system and process. The functions of education, through the action of the subjective factor existing at the level of pedagogical politics are rendered as finalities of education: ideal, purpose and objectives. Thus he functions of education consists of the educational operations and actions leading to the activity of forming and development of human personality at the educational level.

3.The objectives of economic education

With a future perspective of the market economy in particular, economic education must be a necessary and essential component of the socio-cultural environment, of the formation of all human personalities and not lastly of their economic responsibilities. In this context, family life, as well as activities belonging to al fields of the socio-economic life, without exception, must include, to a higher or lesser degree, economic problems that must be known through some form of education and that must significantly contribute to economic growth and development. Closely linked to this reality, it is necessary to have a minimum of economic knowledge that must be taken into account in the framework of the pupils’ economic educational system, regardless of the profession they will choose after graduating from school or university. This kind of necessary knowledge belongs to fields such as: political economy, national economy, economy and entrepreneurship, international economic relations, economic competition, merchandise, goods and services, trade, marketing, etc.

Table no.2 The objectives of economic education from the European perspective

Source: taken by the author from The European Commission/ Europe 2020/ Intelligent Growth

Of course, theory is the mother of knowledge, while its father is its practical coordinator, Both actors want the welfare of the family as well as to generate incomes in order to fulfill economic familial objectives and not only. The pupil must assimilate these things within the framework of the educational system, at the practical classes belonging to economic education, as an early economic ability acquired even since preschool. Studies show that a significant percent of the recently opened companies in our country go bankrupt in a very short period of time, not having enough economic entrepreneurial knowledge. It must be said, as well, that young entrepreneurs are not sufficiently guided, monitored and evaluated economically and financially by the state without “sanctioning” them, in order for them to get accustomed to the business on the market. Economic prevention must be better evaluated as a way of supporting young entrepreneurs, before unpleasant events happen, due to poor knowledge of the economy levers.

4. Promoting the entrepreneurial spirit in the European Union

Different experts, specialists in the economy, agree that promoting entrepreneurship is very important, because it generates prosperity in the business environment, leading to economic growth and development, but also to the creation of new jobs. Therefore, I consider that by studying an economic-entrepreneurial subject, it can enlarge the horizon of assimilation, perception, taking decisions and, not lastly, it is a priority for exiting the crisis, by creating new jobs. Entrepreneurial education at all levels, secondary school, high school, university and continuous learning, plays an essential part in acquiring key entrepreneurial competences. According to a study of a recent study made by the European Commission, entrepreneurial education has a positive impact on the entrepreneurial spirit of the young generation, on the attitude and disponibility for private initiative and finally on its role in society and economy.

Entrepreneurial education represents a major matter for the European Union, being sustained by the policies developed in the last decade. In Europe, an important role in entrepreneurial education is played by the governments, by the different organizations, institutions, associations. The entrepreneurial activity is not considered a professional option by the majority of the population, not being fully aware of the importance of entrepreneurial education. There is still an entrepreneurial common action plan in Europe. It proposes three areas of immediate intervention:

Table No. 3 Entrepreneurship 2020 Action Plan

Sursa: Entrepreneurship 2020 Action Plan, p.5 or http://eur-lex.europa. eu/LexUri Serv/Lex UriServ. do?uri= COM:2012:0795:FIN:EN:PDF

The development of entrepreneurial education was one of the key elements of the policy of entrepreneurial education in the last years, on a legislative level in the European Union, according to legislative documents. In 2000, the European Charter for Small Enterprises drew attention to the general and specific modules of business and entrepreneurship which must be taught at all levels of education. The Lisbon Special European Council (March 2000) – Towards a Europe of Innovation and Knowledge- has identified the necessary components of a knowledge based economy as follows: the technology of information and communication, the technological culture, entrepreneurship, foreign languages, social abilities. Moreover European Commission Vice-President Antonio Tajani, responsible for industry and entrepreneurship said: 

“Let’s be very clear more entrepreneurs mean more jobs, more innovation, more competitiveness. Becoming entrepreneur and putting your vision into practice requires assuming more personal risks and many efforts. The entrepreneurs are the heroes of our times. Entrepreneurship is the most

powerful catalyst for growth in economic history . Therefore , we must make entrepreneurship an attractive prospect and accessible for European citizens . This is the main message of our action plan . If we can harness Europe's entrepreneurial potential , we can boost economic growth in Europe” (Pruteanu, Ciubotariu, 2014 year VII, No.5).

Against this background, the European Commission has undertaken a plan which is mainly aimed at increasing and encouraging young entrepreneurs, operating in six key areas:

Table No. 4 The European Commission’s plan of encurageing young entrepreneurs

Source: Pruteanu, Ciubotariu, 2014, Electronic information bulletin, year VII,No.5/2014.

Brussels, 13 April 2012 – Entrepreneurship education is being increasingly promoted in most European countries, according to a new report published by the European Commission. Eight countries (Denmark, Estonia, Lithuania, the Netherlands, Sweden, Norway, Wales and the Flemish part of Belgium) have launched specific strategies to promote entrepreneurship education, while 13 others (Austria, Bulgaria, the Czech Republic, Finland, Greece, Hungary, Iceland, Liechtenstein, Poland, Slovakia, Slovenia, Spain and Turkey) include it as part of their national lifelong learning, youth or growth strategies. Half of European countries are engaged in a process of educational reforms which include the strengthening of entrepreneurship education. A total of 31 European countries and 5 regions were surveyed for the report, entitled “Entrepreneurship Education at School in Europe”.

Androulla Vassiliou, Commissioner for Education, Culture, Multilingualism and Youth, said: 

"Entrepreneurship education is a driver for future growth and will help us to inspire the entrepreneurs of tomorrow. If Europe wants to stay competitive, it must invest in its people, in their skills, in their ability to adapt and in their ability to innovate. This means that we need to encourage a real change of mind-set in Europe towards entrepreneurial attitudes and this starts by instilling a spirit of entrepreneurship from early education onwards."

Fig No.1 The identification of the national/regional strategies and initiatives of implementing the entrepreneurship education for each country.

As it can be seen from the figure above Romania is among the few countries in Europe where it is regarded as an activity in phase of initiative, however, it can be seen that in some countries entrepreneurship is part of an educational strategy much larger even part of general education .

At the same time one of the most influential entrepreneurs in Romania Mr. Marius Ghenea , the man who builds brands by investing in smart business , which he sells to incredible amounts , says that ‘’Romania has great need for entrepreneurship education, this type of education is not still substantially included in the national strategy of education. In western education systems, the entrepreneurial education begins in early school years , while in Romania , in our education system , the first hours of entrepreneurial education appear only in the last years of high school, even those not well anchored and taught.’’(Marius Ghenea, Romania needs entrepreneurship education, revistavip.net). I fully support the above statements of Mr. Marius Ghenea and more than that, I share the idea that entrepreneurship education must become a national priority mentioning that it should be included at the secondary level of education. Knowing that not all learners have their theoretical capacities, that does not mean they can not be very good entrepreneurs at some point in time.

Entrepreneurship is an essential condition of economic growth and development. The European Union , under pressure due to the going of the global economy, in order to increase the social dynamism so it can still remain between communities with a high standard of living initiated major priority programs for developing entrepreneurship education in all countries including Romania. Entrepreneurship education in Romania is performed through both formal curriculum/official curriculum and through informal/non-formal. The current economy can not be conceived without entrepreneurship and the future will be marked by a more powerful development of it. Sense for initiative and entrepreneurship can be formed through education. The study on the impact of the entrepreneurship education on skills and entrepreneurial intentions is becoming increasingly important in the curriculum centering on the eight key competences recommended, used and agreed by The Council and The Parliament of the European Union (Education Council, 2006). According to the figure below we can observe the orientation and the supplying of the materials for entrepreneurship education.

5. Conclusions

As it can be deduced from the above context, respectively from the tables or figures described both the economic education and the entrepreneurship should be a national priority to education, taking into account the trend of socio – economic development of the EU. I believe that the two ,, economy and entrepreneurship’’ must be more than a theoretical concern, one rather based on its applicability of the theory in practice, from the lowest possible level of education (ISCED 1 + 2 + 3 ) , having the obligation to continue with the other possible levels that learners could cope with. Given the trend of socio – economic development he can not become a better , more developed than the one to which we refer to, if ever we will think the opportunities of the future, by providing labor that relies on an creative economic education by simulating educational economic – entreprenorial risk games in which they could even be the managers of a company . We almost always hear of solidarity within various actions , activities , events (desired or undesired).

At one point I was thinking : ,, what should I do to become more sympathetic to economic education ? '' -for it to become a compulsory subject . Certainly not me or your would change the trend of the education system in terms of the subjects , the number of hours allocated, teaching methods , content, etc , yet the only way of growth and development the economy has relies in education . That system that teaches you how to read, how to reckon, but which should teach you how to prevent an economic-financial- entrepreneurial failure through various game scenarios, before making a hasty decision on economy.

Of course, the role of the state in economy should be encouraging , supporting , monitoring young entrepreneurs, even by providing mentoring opportunities to start entrepreneurial career . Aspect which unfortunately in Romania seems not to be, or is really not promoted , where the young entrepreneur if in the first month or in early ears mistakes ,, is charged with two hands '', which is taken from the craving of ,, A second chance ''.

Surely if within the prevention hours of ,, economic – financial – entrepreneurial”' by the familiarization of some legislative packages both in terms of rights and obligations of the young entrepreneurs would come from the education system , a country's economy would be the first beneficiary and would ensure economic growth and development of that country.

References

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