Policy analysis for entrepreneurship education in necessity-based contexts: a Sri Lankan case study

Abstract

The development of entrepreneurs in order to stimulate economic growth is a key component of government policies (Hannon, 2006), and policy makers appear to consider entrepreneurship education and training as ‘an efficient mechanism for increasing entrepreneurial activity’ (Martinez, Levie, Kelley, Sæmundsson and Schøtt, 2010, p. 43). Government policies encouraging the education and development of entrepreneurs are evident in countries around the globe (Xavier, Kelley, Kew, Herrington and Vorderwülbecke, 2012), however evaluating the contribution of entrepreneurship education to a country and its economy has proved challenging (O’Connor, 2013). In this chapter we analyze policies for entrepreneurship education in a country that exhibits a high level of necessity-based entrepreneurship. Necessity-driven entrepreneurs are defined as ‘those who are pushed into starting businesses because they have no other work options and need a source of income’. This is contrasted with opportunity-driven entrepreneurs who undertake entrepreneurial activities in order to pursue a perceived opportunity (Xavier et al., 2012, p. 8). There is very little academic research regarding necessity-driven entrepreneurs, and even less so in countries that are in relatively early stages of development.