Concept: Using E-Learning Platforms in Economical and Entrepreneurial Development

Abstract

Business failure is an intrinsic characteristic of entrepreneurship. Given its dimension and repercussions, we consider that entrepreneurial education, in particular entrepreneurial e-learning platforms should include a module on business failure covering in addition to the national legal framework and EU policies, the key barriers faced by and causes of business failure and other such elements. Thus, we propose to develop a platform based on open source software, such as Moodle in which modules based on SCORM and in-teractive teaching have been developed, with all the tools that are needed to simulate classic teaching.Keywords: Business failure, Bankruptcy, e-Learning Platforms, Moodle, Learning Objects1 IntroductionSMEs are the backbone of the European Union economy, according to the Annual report on small and medium-sized enterprises in the EU, 2011/12 [1] they account in 2012 for more than 98% of total enterprises active in the European Union. Moreover, SMEs contribute to almost 60% of gross added val-ue and ensure up to 67% of jobs. Considering the aforesaid and the Europe 2020 strategy for smart, sustainable and inclusive growth, entrepreneurship plays a key role. Thus, for achieving these, three areas of intervention have been considered in the Entrepreneurship 2020 Action Plan [2] as follows: extending entrepreneurial education and training; en-couraging business formation by providing a supportive business environment, promoting new business formation and fostering an en-trepreneurial culture.In this context and as a continuity of the Lis-bon Strategy, business failure, defined in this paper as bankruptcy or business closure, is considered to be a key aspect as it entails stigma of failure, which represents a barrier in creating a supportive entrepreneurial envi-ronment. Therefore, in order to encourage en-trepreneurship at EU level it is important to raise awareness that failure represents a learning opportunity for entrepreneurs. Bankruptcy is a burden on business owners, and alongside the legal and financial burden, hangs stigmatization by the business commu-nity and society in general. One cause of stigma is associating business failure with fraud [2].Offering a second chance to honest entrepre-neurs who have gone through bankruptcy, implies more efficient use of available re-sources, higher growth rates of business and a lower probability of failure due to their ex-perience as [9].These can be considered as resource, considering the Entrepreneurship 2020 Action Plan, and it is essential not to lose such a resource by not giving them a second chance to overcome stigma, while concentrating only on nurturing the new generation of entrepreneurs [2].Moreover, it is important to emphasize that despite the negative impact that business failure has at a social level [3], psychologi-cal level [4][5] and on the business envi-ronment [3], business failure is also linked to economic growth and to progress [6][7].Business failure is a natural event through which who do not have the ability to optimize the use of resources exit the market. An inefficient business provides certain warning signs, however it depends on the ability of management to perceive these signals and react in time to redress the business. Otherwise, it can lead to business failure and transfer of resources towards more productive activities. McKenzie & Lee [8] state that failure, as business closure, is both an output for unsuccessful enterprises and an input of economic success. Econom-ic growth and long-term progress are not possible without encouraging business growth and innovation.Taking into account the need to learn about entrepreneurship and business management including business failure, we propose the development of an e-learning module on business failure, while also considering the fact that the advantages of e-learning plat-forms outweigh their disadvantages. …