Speaking at the Scottish Labour conference in Inverness, Jack McConnell urged the party to "embrace enterprise" and give teenagers ambition and the opportunity to realise their aspirations. He told delegates that he wanted Scottish Labour to be the party of economic growth.
In his speech, which was greeted with a standing ovation, the first minister argued that devolution had given Scotland a new confidence.
"Devolution is much more than just finding Scottish solutions to Scottish problems," he said.
And the opportunity to realise those ambitions must be real for all," he said.
He declared that no young Scot should be told that they have ideas above their station.
"Poverty of ambition and poverty of expectation is the most damaging poverty of all.
"I want to end the Scottish cringe," he said.
He said there were "glimmers" that Scotland might be starting to find its feet again and that its people were discovering a renewed confidence.
"Maybe Scotland's greatest successes are no longer in the past - they just might be right in front of us," he said.
Mr McConnell said he wanted Scotland to become the green enterprise capital of Europe.