Building an enterprising culture

By SIMON HENDERY

Onehunga High School old boy Tony Falkenstein's vision came when he was half a world away from his old stomping ground.

Falkenstein, an entrepreneur whose business empire includes Bartercard NZ and the country's largest water cooler business, Just Water, was part of the way through a year-long sabbatical in Britain.

The self-imposed timeout with his family in a rented London house last year was a chance for Falkenstein to take a breather from the hurly-burly of daily business life, contemplate directions and decide where he could make a difference.

Work and the latest New Zealand news were only a mouse click away.

One November morning, an online Business Herald report about the Global Entrepreneurship Monitor (GEM) report caught his eye.

When Falkenstein read the report, headlined "A land of plenty is not enough", he kicked off a chain of events which will culminate in the opening of New Zealand's first business high school next February.

The GEM report ranked New Zealand second only to Mexico in a 29-country entrepreneurship table. But at the same time our survival rate for businesses is low.

The question Business Herald editor Jim Eagles posed in the article Falkenstein was reading was: "If New Zealanders are among the most entrepreneurial people in the world, then why are we sliding down the league table of rich countries?"

Those interviewed during the GEM process said there was inadequate business education in this country.

Primary and secondary schools were rated below the global average for their teaching about market-economy principles and focus on entrepreneurship.

The GEM report also rated the quality of management education in New Zealand as well below the global average, and close to the bottom of the 29 countries in the survey.

"The education system needs to find the capacity to fill the gaps that aspiring Kiwi entrepreneurs might have, especially their ignorance about the global market, their lack of business understanding, and the lack of experienced management and staff," it said.

The GEM article got Falkenstein thinking. At the time, British Prime Minister Tony Blair was on a campaign to turn several of the country's schools into technical centres.

Falkenstein, who attended Onehunga High in the 60s, saw no reason a similar initiative could not be started in New Zealand to enthuse students early in life about the possibilities of entrepreneurship.

"If you don't come from a corporate family, you don't get your eyes opened until later in life. I just want to start the learning process a lot sooner when these kids have got the drive and energy."

Falkenstein says he was a late-starting entrepreneur who began his career working for others. "I came out of university [having studied commerce] and didn't even understand what all this was about. You're just so naive, I suppose, unless you're maybe immersed in a family that's involved in big business."

S IX months after reading the GEM article, Falkenstein is settled back in New Zealand and Onehunga High School is about to become the country's first business high school.

Next year it will offer business courses to students from around the Auckland region, international students, and adults.

As part of their studies, Year 10 to 13 (Form 4 to 7) students will be offered courses covering international and entrepreneurial business skills.

By Years 12 and 13, students will be taking tertiary-level papers, likely to include commercial law, marketing, management studies and economics.

A project document says the aim is "to position Onehunga High School as the business secondary school, and the model adopted by other schools, and/or Government, to assist putting New Zealand at the forefront of entrepreneurial and business education".

It will start with up to 100 students, a maximum of 20 from overseas, an executive director and two lecturers.

Falkenstein's Red Eagle Corporation, the umbrella company for Bartercard, Just Water and sister company Cool Water are underwriting the programme by up to $300,000 over two years.

The project received a big boost this week, gaining $386,000 from Industry New Zealand's Enterprise Culture and Skills Activities Fund.

Ten projects received a total of $1.7 million in initial allocations from the fund this week, providing, says Economic Development Minister Jim Anderton, "a kickstart to our efforts to build a truly enterprising culture among young people".

An executive director for the Onehunga business school is expected to be appointed next month. That person would be part of the project's foundation board, which will also include Falkenstein, Onehunga High principal Chris Saunders, and two other prominent past pupils: former National Party president Sue Wood and Andrew Grant, New Zealand principal of consulting firm McKinsey & Co.

Falkenstein says the project's business plan aims to break even in its third year and then turn a pretty good profit.

Saunders, Onehunga's principal of 13 years, is enthusiastic about the project, as is the school's board of trustees, which has given its blessing.

Saunders says Government funding will not be sufficient for the type of education schools will have to deliver in the future, and schools will have to build strategic partnerships with businesses.

"If this model works this is going to be a big way to the future for secondary schools."

Overseas students will be charged $20,000 a year, twice the regular rate for a year's education, but Falkenstein says there have been no objections because parents recognise the value of what the school is offering.

It is easy to believe that Falkenstein's enthusiasm will propel the Onehunga project to success.

The flipside of his business card is devoted to a 15-year potted history of Red Eagle, until it acquired 90 per cent of Bartercard NZ last year.

"But Red Eagle hasn't stopped there," the card blurb says. "In fact, we are ready to fly again. Where to? Read my next card."