Impact of Enterprise & Financial Education

What are the impacts of enterprise education, non-formal learning, employer engagement and financial education on young people?

Enterprise education is a proactive learning process where participants apply creative ideas and innovation to practical situations. It aims to produce  individuals with the mind-set and skills necessary to respond to opportunities, needs and shortfalls, and with well-developed key employability skills such as decision making, problem solving and personal effectiveness.

To find out more about the effectiveness of our programmes, please see evaluating our work.

 

Department of Business Innovation and Skills, Enterprise for all: The relevance of enterprise in education – Lord Young¹:

This report made recommendations on entrepreneurship in education which included:

  • The publication of a Future Employment and Earnings Record after leaving education.
  • introduction of a new Enterprise Passport – a digital record of all extra-curricular and enterprise-related activities that students take part in throughout their education
  • A new national volunteer network of Enterprise Advisers co-ordinated by LEPs, working closely with school heads

 

Demos, Learning by Doing²

9 out of 10 teachers have favourable attitudes towards non-formal learning

  • 9 out of 10 teachers have favourable attitudes towards non-formal learning
  • Half of respondents (51%) strongly agreed that their students would benefit from nonformal education opportunities
  • Large numbers of young people in the UK – particularly from disadvantaged backgrounds – do not have enough opportunity to take part in non-formal learning and are therefore at risk of not developing key skills important for success

 

Pearson / University of Exeter, Employability and Higher Education: A review of practice and strategies around the world³

  • Soft skills are by far the most desired attributes in graduates around the world such as an individual’s ability to listen well, communicate effectively, be positive, manage conflict, accept responsibility, show respect, build trust, work well with others, manage time effectively and work under pressure.
  • Enterprise education provides individuals with the skills, tools and insights to enable them to create ideas and make them happen

 

All Party Parliamentary Group, APPG Report on Financial Education for Young People

  • Only 17% of secondary school teachers have personally received, or are aware that a colleague has received, training or advice on teaching financial education
  • 58% of secondary school teachers in England would like to receive more training in this area
  • Only 28% of secondary school teachers in England believe their school has put more emphasis on financial education since it became statutory. 42% feel there has been no change in emphasis at all
  • The report suggest that there are 4 main areas that should take priority for policy makers in order to strengthen financial capability in the UK: Strengthening primary and secondary provision, improve teacher confidence and skillset, encourage coordination across the sector by signposting best practise, measuring long term impact

 

ONS, Young people’s well-being and personal finance: UK 2013 – 2014

  • 8% of young people (aged 16 to 24) found it difficult or very difficult to get by financially in 2013 to 2014, down from 15% in 2009 to 2010.
  • Young people who were students in 2013 to 2014 were least likely to be dissatisfied with their household income (22%), but most likely to consider they will be worse off financially in the future (13%)

 

 

Money Advice Service, Habit Formation and Learning in Young Children

Adult money habits are set by the age of 7 years old

  • Children under 8 years old have not developed an understanding of the difference between ‘luxuries’ and ‘necessities’

See also: The Financial Capability of Children and Young People (MAS, 2016)

 

Money Advice Service, Young Adults’ Financial Capability

financial-capability-stat2

  • Young adults were both more likely to have financial goals over the next five years (69%) and to have plans to achieve those goals (41%) (compared to all adults aged 18+)
  • 69% of young adults reported having financial goals over the next five years (compared to 53% of all adults aged 18+)
  • 41% had plans for their financial goals (compared to 36% of all adults 18+).
  • Young adults had the lowest levels of financial confidence compared to other age groups. Only 45% rated themselves as ‘very confident’ (compared to 58% of all adults aged 18+)

More details:

¹ Department of Business Innovation and Skills, Enterprise for all: The relevance of enterprise in education – Lord Young, release date: 19 June 2014. This report focuses on entrepreneurial spirit in education and how it can help young people leave education ready to work, with the skills and experience employers are after.

² Demos, Learning by Doing:  “Non-formal learning could help to build character and close the attainment gap…”, release date: 2015. This report presents research into whether non-formal learning is sufficiently embedded into the British education system.

³ Pearson / University of Exeter, Employability and Higher Education: A review of practice and strategies around the world, release date: March 2016. Provides a review of the strategies in place around the world to improve the employability levels of students and graduates upon leaving HE.

⁴ All Party Parliamentary Group, APPG Report on Financial Education for Young People, release date: 23 May 2016. This follows an inquiry that Young Enterprise have run in Parliament (as secretariat for the APPG) into the effectiveness of financial education and policy recommendations for strengthening this area.

⁵ ONS, Young people’s well-being and personal finance: UK 2013 – 2014, release date: 11 May 2016. This report measures young people’s well-being and in relation to their financial situation.

⁶ Money Advice Service, Habit Formation and Learning in Young Children, release date: 23 May 2013. The report highlights the power of parents to foster money skills at home – core behaviours which they will take into adulthood will affect financial decisions they make during the rest of their lives.

⁷ Money Advice Service, Young Adults’ Financial Capability, release date: 2016.This report provides insights into the factors that influence young adults’ financial goals and planning, financial confidence and engagement in financial matters.

 

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