HISTORIC PRESS RELEASE : ´From the classroom to the boardroom´, Davies Review of enterprise and the economy in education [February 2002]

The press release issued by HM Treasury on 14 February 2002.

Proposals to train Britain’s next generation of entrepreneurs were welcomed by business leaders at a Downing Street press conference today.

“Enterprise and the Economy in Education”, an independent review into enterprise and education conducted by Howard Davies, chairman of the Financial Services Authority, found that, although links between schools and industry are good in areas, fewer than 30 per cent of young people gain any experience of enterprise.

The review recommends that every pupil spends five days gaining experience of enterprise, has the chance to set up and run their own mini-company and carries out specific projects in local companies with real experience of designing, marketing, pricing and selling products.

The report also recommends that the two-weeks work experience fifteen and sixteen year-olds currently undertake, provides more enterprise and business experience, and proposes that every school links up with local businesses, with business people spending time encouraging pupils to pursue careers in business.

Howard Davies’ recommendations include:

• An £56 million contribution from Government and £30 million contribution from business, with Government piloting a range of different approaches;
• Special emphasis should be given to young people in economically deprived areas where existing links with business may be less well developed; and
• New teaching materials should be developed for enterprise learning and personal finance education.

Chancellor Gordon Brown said:

“Budget 2002 will send a message to entrepreneurs in every part of the country that this Government wants to open up the opportunities of enterprise to all. If we are to have a deeper and wider entrepreneurial culture we must start in our schools and colleges.

“I want every young person to hear about business and enterprise in school; every college student to be made aware of the opportunities in business, even to start a business; and every teacher to be able to communicate the virtues of business and enterprise.

“Providing this opportunity for young people, and especially for those in disadvantaged areas, is critical if we are to build a Britain where every community celebrates and rewards enterprise and where the chance to start and succeed in business is genuinely open to all.

“I welcome the Davies report as an important step in making this happen and spreading the spirit of enterprise from the classroom to the boardroom.”

Howard Davies said:

“The time is right for a step change both in enterprise activities, and in the promotion of economic and financial literacy. The reorganisation of the 14-19 curriculum offers an opening to revisit the place of enterprise learning in schools.”

Estelle Morris said:

“This is an interesting, independent review which makes some valuable observations about the development of enterprise, knowledge and understanding of the economy in our education system. But we need to consider the recommendations within the broader outcomes of the current Spending Review, and our other priorities in the education system. The review reflects our approach, published this week in our 14-19 Green Paper, of delivering good quality vocational learning and supporting work-based learning for all our young people.”

Patricia Hewitt said:

“Entrepreneurs are the lifeblood of a rich, thriving economy and it is vital that we nurture the talent and business flair of all our students by getting enterprise on the education agenda. Britain already leads the way in Europe in supporting budding entrepreneurs. A recent Commission report singled Britain out for our low business start-up costs and speedy registration.

“Today’s proposals will instil in our students the self-belief and confidence to achieve their ambitions of becoming entrepreneurs of the future.”

Business leaders today gave the proposals strong support. Details of their comments can be found in the attached paper.

The Chancellor, Estelle Morris and Howard Davies this morning visited IBM offices in London, and met pupils from the Aylwin School, Southwark, who have been involved in an enterprise project organised by businessdynamics and IBM.