Creative Education
2012. Vol.3, No.5, 666-670
Published Online September 2012 in SciRes (
Copyright © 2012 SciR e s . 666
Entrepreneurship Education at the Crossroad in Hong Kong
C. K. Cheung
Faculty of Education, Uni ve rsity of Hong Kong, Hong K on g , China
Received July 18th, 2012; revised August 20th, 2012; accepted September 2nd, 2012
While Hong Kong is one of the world’s leading financial and business centres in the Asia-Pacific region,
a recent survey conducted noted that only 3 out of every 100 people in Hong Kong had started their own
business in the previous 42 months. As entrepreneurs are so important to our economy, schools should be
responsible for cultivating in students a suitable entrepreneurial spirit and skills. Unfortunately, entrepre-
neurial training in secondary school does little to pave the way for students to pursue their future career
planning and is unable to match the future needs of society. With the recent introduction of the New Sec-
ondary School Curriculum (NSSC), this article questions if entrepreneurship education could be taught
through the introduction of a new course: Business, Accounting, and Financial Studies (BAFS). This re-
search was conducted, through the eyes of business subject panel chairs, to determine a) the importance of
entrepreneurship education and b) whether the new BAFS initiative can fulfill the role of promoting en-
trepreneurship education in Hong Kong.
Keywords: Business; Accounting and Financial Studies; Education Reform; Entrepreneurship Education;
Hong Kong; New Secondary School Curriculum
From its beginnings as an entrepot in 1841, Hong Kong has
become one of the world’s leading financial and business cen-
tres in the Asia-Pacific region, a leading financial and commer-
cial “hub” and a gateway between China and the rest of the
world. Despite the abrupt changes resulting from globa l as well
as local economic downturns in the past such as the Asia finan-
cial crisis in 1997, severe acute respiratory syndrome (SARS)
in 2003, the US financial tsunami in 2008, and the recent catas-
trophic earthquake in Japan, Hong Kong still excels and con-
tinues to prosper. This is partly because there is a pool of entre-
preneurial talents able to meet changing economic situations.
At present, small and medium-sized enterprises represent 98%
of all local enterprises. It is no exaggeration to say that entre-
preneurs are vitally important to the sustainable economic de-
velopment of Hong Kong.
Despite this, a survey conducted for the Global Entrepre-
neurship Monitor noted that only 3 out of every 100 people in
Hong Kong had started their own business in the previous 42
months—ranking the city third last among the 35 economies
surveyed (Thomas, 2010). This is a substantial decrease in en-
trepreneurship compared to the same survey conducted in 2007,
where 1 in every 10 Hong Kong people had just started up a
business. As entrepreneurs are so important to our economy,
Cheung and Au (2010) argue that schools should be responsible
for cultivating in students a suitable entrepreneurial spirit and
skills. Unfortunately, the existing business curriculum in Hong
Kong secondary schools lacks significant programs in entre-
preneurship. Entrepreneurial training in secondary school does
little to pave the way for students to pursue their future career
planning and is unable to match the future needs of society.
Teenagers wishing to learn about entrepreneurship and teachers
wanting their students to receive training in this area have to
turn to programs outside the formal curriculum. With the recent
introduction of the New Secondary School Curriculum (NSSC),
it is timely to see if entrepreneurship education could be taught
through the introduction of a new course: Business, Accounting,
and Financial Studies (BAFS). This research was conducted,
through the eyes of business subject panel chairs, to determine
a) the importance of entrepreneurship education and b) whether
the new BAFS initiative can fulfill the role of promoting entre-
preneurship education in Hong Kong.
The Importance of Entrepreneurship Education
Entrepreneurship education is important in many aspects. It
can provide students with an understanding of business—its
purposes, its structure, and its interrelationship with other seg-
ments of the economy and society. Many studies have noted
that an entrepreneurship course has a positive impact on stu-
dents’ views of entrepreneurship. Mohan-Neill (2001) sug-
gested that students exposed to entrepreneurship education have
more favourable views of small businesses. A study conducted
by Waldmann (1997) indicated that entrepreneurship education
at the high school level would have a great impact on the num-
ber of students who would seriously consider starting a busi-
ness sometime after graduation. Kolvereid and Moen (1997)
argued that entrepreneurship graduates have stronger entrepre-
neurial intentions than other business graduates. In Hong Kong,
the study by Cheung (2008) confirmed the effectiveness of
entrepreneurship education in teaching secondary pupils about
many aspects related to work.
We live in an era in which the effects of globalization on the
structure of large corporations and governments are felt world-
wide. Large companies are downsizing and are outsourcing
their functions. Strong global competition accelerates the work
processes, causing the loss of many jobs. The crisis is there, but
so are the opportunities. When working for a company becomes
insecure, people start to become their own boss. When tech-
nology is advanced, jobs are without boundaries. This increases
the number of small-to-medium-sized entrepreneurs. Evidence
in Europe has shown that a change in economy will lead to a
growth in small enterprises and naturally the demand for entre-
preneurship programmes (Hayward & Sundes, 2000). A similar
situation can be seen in the US, and Kourilsky (1995) noted
that these enterprises are the driving force for economic growth
through the creation of jobs and innovative products and ser-
Entrepreneurship education focuses on life. A successful en-
trepreneur must not only have knowledge of the business world,
but also possess a set of generic attributes, skills and behav-
iours—such as those related to communication, creativity, and
problem-solving—that are important to life as well as to busi-
ness. Therefore, if entrepreneurship education is conducted
with a view to promoting students’ personal attributes, then it
can have a substantial impact on students’ careers, regardless of
whether they plan to become entrepreneurs. Entrepreneurship
education can also be a societal change agent. The research by
Danko (2005) found that entrepreneurship education is a great
enabler. Entrepreneurship education equips students in many
aspects like self-empowerment, values clarification, role mod-
eling, and systems thinking. This is important for all students,
not only those who aim to become entrepreneurs. The value of,
and need for, entrepreneurship education can be summed up in
a report by the Global Education Initiative of the World Eco-
nomic Forum (Wilson & Sepulveda, WEF, 2009: pp. 7-8):
While education is one of the most important foundations
for economic development, entrepreneurship is a major
driver of innovation and economic growth. Entrepreneur-
ship education plays an essential role in shaping attitudes,
skills and culture—from the primary level up. We believe
entrepreneurial skills, attitudes and behaviours can be
learned, and that exposure to entrepreneurship education
throughout an individual’s lifelong learning path, starting
from youth and continuing through adulthood into higher
education—as well as reaching out to those economically
or socially excluded—is imperative.
At the close of a conference on entrepreneurship education
that took place in Hong Kong recently, a list of actions was
called upon, and Byers (2010: p. 22) asserted:
Entrepreneurship education is essential for developing the
human capital necessary for the society of the future. It is
not enough to add entrepreneurship on the perimeter—it
needs to be core to the way education operates. Educa-
tional institutions, at all levels (primary, secondary and
higher education) need to adopt 21st century methods and
tools to develop the appropriate learning environment for
encouraging creativity, innovation and the ability to
“think out of the box” to solve problems. This requires a
fundamental rethinking of educational systems, both for-
mal and informal, as well as the way in which teachers or
educators are trained, how examination systems function
and the way in which rewards, recognition and incentives
are given.
The Case of Hong Kong
Before 2009 in Hong Kong, at the end of primary school,
students were allocated Form One places in junior secondary
schools. Three “bands” in order of merit were formed based on
the scaled internal assessment of students in the same school
net. The top one-third of students in the same school area went
into the first band in the school area, the next into the second
band, and so on. The main part of secondary education lasted
for five years, and was made up of a junior cycle of thre e years,
which was compulsory, and a senior cycle of two years, which
was not compulsory but almost universal. Students had to take
an examination in S.5, and those who obtained sufficient marks
could continue their studies in S.6, preparing them for the uni-
versity entrance examination. Commerce and Principles of
Accounts were offered for S.4 and 5 students, while Business
Studies and Principles of Accounts were offered for students in
S.6 and S.7. However, as a result of the curriculum reform in
2010, every student now has to take 6 years of secondary
school education, and the subject Business, Accounting, and
Financial Studies is now the only business subject in the senior
secondary school curriculum. In addition, whereas in the past,
only around 65,000 candidates competed for a place in univer-
sity, now the figure is over 220,000.
School leavers who cannot find a place in a university or
other tertiary institutions are most likely required to find jobs.
However, there are not many suitable jobs for them, given their
low educational background. Although the Hong Kong gov-
ernment has spent a lot of money in creating temporary jobs in
order to reduce the unemployment rate, this measure has been
unsuccessful. People will become jobless again after the tem-
porary jobs disappear. In view of this, there have been calls for
the introduction of entrepreneurship education into the business
curriculum (Cheung, 2008a). However, entrepreneurship edu-
cation is not developing in Hong Kong at a rate that it should be.
While there is little entrepreneurship taught in the secondary
school curriculum, private and public organizations play a sig-
nificant role in the development of entrepreneurship education.
They give schools support of various kinds including the provi-
sion of seed capital and first hand and the latest information
about the business sector. Programs like the Business and En-
trepreneur Enhancement Programme; the Teen Entrepreneur
Competition; the Young Entrepreneurs Development School-
Company Partnership; and Junior Achievement Hong Kong,
are provided by tertiary institutions and private companies to
help students acquire the knowledge and skills related to entre-
preneurship education. Although private and public organiza-
tions play an important role in entrepreneurship education,
relying on them totally may not be the way forward. Cheung’s
study (2008) found that while the supporting organizations
claimed that they would still play a significant role in the pro-
motion of entrepreneurship education, they hoped that schools
themselves would be more active in the promotion of entrepre-
neurship education. In recent years, schools start to offer entre-
preneurship activities with convincing evidence. For example,
the study by Cheung and Ng (2010) clearly indicate that con-
ducting entrepreneurship activity learning in business subjects
created a positive atmosphere, which enhanced students’ moti-
vation to learn and develop generic skills. Furthermore, the
study by Cheung and Chan (2011) suggest that Entrepreneur-
ship Education would have a positive impact on the strength of
the students’ entrepreneurial spirit in terms of starting-up a new
business, and a high percentage of students acknowledged that
the entrepreneurial knowledge they had acquired would be
useful to them.
Business subjects were first introduced into schools to pro-
vide training for the low sector of the labour market and for
prevocational schools. However, their depth and breadth are
questionable, and the status of business education is low. It is
Copyright © 2012 SciRe s . 667
Copyright © 2012 SciRe s .
said (Cheung, 2008c) low-ability students will study business
education However, as time goes by, more and more students
are recognizing the importance of business education. Not only
students in prevocational schools, but also students in grammar
schools take business subjects, and the number of students tak-
ing business subjects continues to rise. In universities, business
subjects are the most sought after among university applicants,
and Cheung (1997) many years ago observed this phenomenon
and called for the introduction of entrepreneurship education
into the business curriculum.
This being the case, how could people learn how to become
entrepreneurs, especially school leavers who may not have the
passion to further their studies in tertiary institutions, but who
want to try their luck through starting a small business? Could
schools provide entrepreneurship education for them?
There are altogether 533 secondary schools in Hong Kong
divided into 3 bands. In this research, stratified sampling was
used to identify potential interviewees from schools of different
bands. Schools were grouped into three strata based on the
bandings, and 10 schools were randomly sampled from each
stratum. After a total of 30 schools had been identified, the
following criteria were adopted to select the appropriate per-
sons for the interviews.
a) The sampled schools must have taught business subjects in
the past and are now teaching BAFS in the NSS.
b) Only panel chairpersons will be invited for interview.
Out of these 30 schools, twenty-two schools fulfilled crite-
rion a), and 14 panel chairpersons agreed to be interviewed.
Please see the below (Table 1) profile of the 14 interviewees.
The interviews were conducted by telephone. Cantonese was
used as a medium of conversation, and the interviews were
transcribed and translated into English. Each interview took
around 30 minutes, and the following two questions were
Is entrepreneurship education important and why?
Does the current secondary school curriculum support en-
trepreneurshi p education?
Is Entrepreneurship Education Important?
Findings from the interviews showed that entrepreneurship
education is important in Hong Kong secondary schools for the
following reasons.
Policy in China
In order to promote the joint economic prosperity and devel-
opment of the Mainland and the Hong Kong Special Adminis-
trative Region, and to facilitate the further development of
economic links between the two sides and other countries and
regions, China and Hong Kong signed the Closer Economic
Partnership Arrangement (CEPA) in 2003. This policy gives
more opportunities to Hong Kong people to do business in
mainland China, and entrepreneurship education will equip our
students to pursue this.
Teacher E: Hong Kong returned to the sovereignty of China
in 1997. In the past, when mainland China was poor, people in
Hong Kong helped a lot in terms of remitting money to family
members and relatives in mainland china. Now, when the
economy in China is beginning to prosper, young people can
seek opportunities there and entrepreneurship education can
better equip them.
Teacher C: Because of the keen competition in Hong Kong,
our government is always encouraging young people to seek
career opportunities in mainland China, but even if they are
willing to do so, they need the knowledge and skills to make it
happen. Entrepreneurship education is a must.
Preparing Young People for Economic Change
The changing workplace environment is providing many
reasons for entrepreneurship education. Self-employment is an
on-going trend as more organizations contract out work rather
Table 1.
Profile of the 14 interviewees.
Teacher Gender Number of Years in Teaching Subjects Taught Banding of School
A M 10 BAFS 1
B M 12 BAFS 1
C F 14 BAFS, Liberal Studies 1
D M 14 BAFS 1
E F 14 BAFS 1
F M 8 BAFS, Liberal Studies 2
G M 10 BAFS 2
H F 10 BAFS, Libera l St udies 2
I M 11 BAFS, Liberal Studies 2
J M 6 BAFS, Liberal Studies 3
K M 8 BAFS 3
L M 9 BAFS, Liberal Studies 3
M M 10 BAFS 3
N F 10 BAFS 3
than employing permanent employees. Big firms are unbun-
dling their various activities and farming them out to small
firms that are better at creating profit. Public services are being
privatized as governments seek to cut spending and decrease
financial deficits. People need to be more flexible and creative
regarding their working livelihoods in order to cope with this
changing labour market. Furthermore, they need to be enter-
prising and able to work autonomously, take responsibility and
make decisions, work in small teams and continually update
their job skills. Entrepreneurship education can play an impor-
tant role in providing training in these multiple skills that are
characteristic of these new work trends, and the education sys-
tem must be responsible for training enough well-equipped
people to sustain the development of the economy.
Teacher G: This is a tougher world now. Long gone are the
days when you possessed one skill that helped you work in one
job for the rest of your life. Faced with enormous changes in
the very competitive world of work today, employees have to
learn the importance of continuous development of skills be-
yond those required for a particular job. To survive, young
people must possess some competencies, identified as “em-
ployability skills,” to work in a company, or even to start their
own business after receiving entrepreneurship education.
Teacher J: University education is seen to be a vehicle for
students to get jobs, but only around 18% of the young people
in Hong Kong can find a place in tertiary institutions. School
leavers, because of their low academic background, may not be
able to find a job easily, and starting their own business is an
option for them. Entrepreneurship education can prepare them
for this.
Teacher E: I have been teaching business subjects for many
years, and I can see the importance of entrepreneurship educa-
tion in helping the future economy in Hong Kong. Hong Kong
is a free economy, and we are not just facing local competitors,
but also competitors all over the world.
Teacher F echoed this: The Hong Kong government should
train people how to be independent and create their own jobs
rather than continuously increasing its own financial burden.
Entrepreneurship education is the answer.
Teacher B: Education in Hong Kong has always been aca-
demically oriented with a focus on further studies, but little on
students’ career aspirations. However, not every student can go
to university, and I believe that entrepreneurship education
could equip them to be better employees, if not even to start
their own business.
Teacher K: The answer is obviously yes. Hong Kong has no
natural resources, and human resources are what we have.
Since Hong Kong is a major financial centre in the world, you
should train more entrepreneurs.
The Role of SME in Hong Kong
According to the Census and Statistics Department (C & SD)
of the HKSAR Government, there were about 299,000 SMEs in
Hong Kong as of March 2011. They accounted for over 98% of
the total business units and provided job opportunities to over
1.2 million persons, about 48% of the total number of people
employed (excluding Civil Service). The statistics show that a
high percentage of people would like to set up their own busi-
nesses. The Hong Kong government has been very supportive
and has set up various measures set up for SMEs to:
a) promote and maintain a business-friendly environment;
b) provide them with more ways of raising finance;
c) raise the level of their human sources and;
d) expand their markets.
While all the above measures have been done, the question is:
Could schools do anything to help as well?
Teacher H: Before I became a teacher, I worked for the SME
for 5 years and I noticed that quite a number of people wanted
to take the opportunity to start their own business, but lacked
the knowledge and skills to do it. Schools should teach students
entrepreneurship, giving them a choice to start their business
with or without receiving university education.
Teacher G: I can see that entrepreneurship education could
teach students numeracy skills, communication skills, co-op-
eration skills, information technology skills, problem-solving
skills and language skills, which are important to their future
career, whether it be in the field of business or not.
Does BAFS Help?
While the interviewees supported entrepreneurship education,
they were uncertain about the way forward. The recent intro-
duction of BAFS has not been able to solve the problem. Rather,
according to many interviewees, it has disturbed what has been
done in the past.
Although many young people are interested in starting their
own business, they usually do not possess the experience and
entrepreneurial skills to do so. The existing secondary curricu-
lum does not provide any training for young people to acquire
the knowledge or skills to start a new business. Even for stu-
dents taking the business stream in secondary schools, the pre-
sent curriculum does not encompass much of the related entre-
preneurial training program. There are complaints that today’s
students do not possess real business knowledge, and that they
are risk-averse, non-creative, passive, and are unwilling to take
up responsibility. How can this situation be improved? Today,
the business curriculum should be redefined to narrow the gap
between the demands of the business sector and the school
curriculum. According to Gormon et al. (1997), citing Bandura
(1986), “education can serve as a preparatory function in rela-
tion to new venture initiation or start-up, whereby the transfer
of knowledge and acquisition and development of relevant
skills would be expected to increase the self-efficacy and effec-
tiveness of the potential entrepreneur” (p. 56). Therefore, why
not foster entrepreneurial training for young people as early as
in secondary education? Entrepreneurship education is impera-
tive as today young people are living in a market where unsta-
ble jobs, contract work, and unemployment will be the norms.
However, with the introduction of BAFS in the NSS, the situa-
tion doe not seem to have improved.
Teacher D: There is no improvement at all. Students in sen-
ior secondary schools can opt for different streams of study,
namely Arts, Science, and Business. If you study in the Arts
stream, you could take Geography, History, Chinese History,
and/or Economics. Science students will choose Physics,
Chemistry, and Biology. How about business students? The
only subject for them is BAFS. What a joke!
Teacher B: the only way to make people take entrepreneur-
ship education seriously would be to include it in the formal
curriculum; otherwise, schools and parents would prefer stu-
dents to put aside entrepreneurship education and focus on
Copyright © 2012 SciRe s . 669
Teacher N shared a similar sentiment. She asserted: Besides
equipping students to become entrepreneurs, entrepreneurship
education is also about developing future leaders for society
and providing them with the life skills necessary for navigating
in the rapidly changing world.
Teacher J: The development of business education is prob-
lematic. Long ago it was seen as inferior because of its associa-
tion with vocational education. Then, I do not know why, it was
put under the Technology Key learning Area some years ago,
associating it with subjects like Health Management and Social
Care, Home Economics, and Electronics and Electricity. So
unrelated! There should be a special stream for business sub-
jects, and entrepreneurship education should be seen as an im-
portant element.
Teaching Force
Teacher C: It should be noted that the teaching of accounting
is very different from the teaching of finance. While the former
focuses on the precision of balancing the numbers, the latter
requires a bit more mathematics and statistics. It is difficult to
have a teacher who is an expert in both areas. Furthermore,
when the many business subjects were combined into one,
namely BAFS, the number of teachers required dropped sig-
nificantly. This has to be put right before dealing with the issue
of entrepreneurship education.
Teacher F: When BAFS was introduced to replace other
business subjects, the number of business teachers was reduced,
and some of the business teachers had to teach a new compul-
sory subject offered in the NSS, Liberal Studies. This is not
right; and the spirits of many business teachers are low.
Hong Kong is famously rich. Its per capita income was
US$31,709 in 2010. At present, small and medium-sized enter-
prises represent 98 percent of all local enterprises, and it is no
exaggeration to say that entrepreneurs are one of the territory’s
most important assets. As entrepreneurs are so important to our
economy, should schools be responsible for cultivating students
with suitable entrepreneurial spirit and skills? From this re-
search, teachers recognize the significance of entrepreneurship
education, but unfortunately, the existing business curriculum
in Hong Kong secondary schools lacks significant programs in
entrepreneurship. Entrepreneurial training in secondary school
does little to pave the way for students to pursue their future
career planning and is unable to match the future needs of soci-
ety. Teenagers wishing to learn about entrepreneurship and
teachers wanting their students to receive training in this area
have to turn to programs outside the formal curriculum. The
number of schools wanting to engage in entrepreneurship edu-
cation has increased rapidly, and the number of enterprises
willing to commit to these programs is also on the rise.
Society is dynamic and is changing at an increasingly rapid
pace. Education in Hong Kong must keep abreast of this accel-
erated pace of change and provide opportunities for students to
learn beyond the confines of the classroom. The New Secon-
dary School Curriculum was seen as a way to improve the
situation, but this research suggests that this is not the case.
When the previous business subjects were integrated into one
subject BAFS, the difficulties were many. I would like to con-
lude with the words of Ken Robinson, an academic with great
achievements in creativity, education, and the arts. He asserted:
Current systems of education were not designed to meet
the challenges we now face. They were developed to meet
the needs of a former age. Reform is not enough: they
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