Business start-up support in Higher Education Institutions - Jonathan Potter
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This document summarizes current practices and objectives around business start-up support in higher education institutions. It finds that the most important objectives for HEIs are supporting business start-ups by staff (58%) and students (67%). To create an entrepreneurial culture, HEIs use strategies like staff incentives, strategic communication, and entrepreneurship centers. The most common teaching methods for entrepreneurship education are business plan writing, case studies, and lectures. The most offered start-up support measures are referrals to external organizations and assistance with business plans and funding applications. HEIs frequently partner with other HEIs, regional/local governments, technology parks and entrepreneurs to support nascent entrepreneurs.
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Business start-up support in Higher Education Institutions - Jonathan Potter
- 1. BUSINESS START-UP SUPPORT IN HIGHER EDUCATION INSTITUTIONS OECD LEED Forum on Partnerships and Local Development Prague, 11 April 2017 Presentation by Jonathan Potter, Senior Economist, OECD
- 2. Current practices in business start up support in HEIs Creating an entrepreneurial culture across the HEI Training for nascent entrepreneurs Joining resources across HEIs and with local business support providers Supporting nascent entrepreneurs in HEIs Targeted support services
- 3. Entrepreneurship objectives of HEIs 37% 58% 67% 79% 33% 25% 20% 14% 20% 7% 5% 2% 9% 9% 7% 4% Supporting business start-ups by staff Supporting business start-ups by students Promoting self-employment and business start-up as a viable career option to students Developing entrepreneurial competencies of students Important/very important Somewhat important Little importance Not important Source: OECD (2015-2017), HEI Leader Surveys: IRE,NLD,HUN,POL; n=100 HEIs. Question: How important are the following objectives for your HEI?
- 4. Creating an entrepreneurial culture • Why: Awareness creation and resource mobilisation to increase participation of staff and students in the entrepreneurial agenda • How: – Staff incentives – Anchoring the entrepreneurial agenda in core budget – Strategic communication – Entrepreneurship Centres for co-ordination and outreach – Involvement of students – Documentation of acquired competencies and skills
- 5. Entrepreneurship education: 4 most practiced teaching methods Question: To what extent are the following teaching methods currently used in the entrepreneurship education activities at your HEI? Regularly / primarily used: Source: OECD (2015-2017), HEI Leader Surveys: IRE,NLD,HUN,POL; n=77 HEIs offering entrepreneurship education activities. 70% 77% 77% 84% Business plan writing Case studies Student-centred learning Lectures and frontal teaching
- 6. Entrepreneurship education: 4 least practiced teaching methods 58% 60% 65% 66% Prototype development Case studies about enterprise failure Experience reports by start-ups Simulations or direct application: How to internationalise an entrepreneurial initiative (i.e. business, project, association) Rarely / not used: Source: OECD (2015-2017), HEI Leader Surveys: IRE,NLD,HUN,POL; n=77 HEIs offering entrepreneurship education activities.
- 7. Start-up support: 4 most practiced support measures Source: OECD (2015-2017), HEI Leader Surveys: IRE,NLD,HUN,POL; n=59 HEIs offering start-up support. 83% 83% 85% 90% Referral to external business support organisations Access to infrastructure (incubators, co- working space, laboratories) Assistance with applications for public funding Assistance with preparing business plans Question: What special support measures do you currently offer?
- 8. Start-up support: Top 4 measures with increased demand Source: OECD (2015-2017), HEI Leader Surveys: IRE,NLD,HUN,POL; n=59 HEIs offering start-up support. 68% 71% 71% 76% Access to infrastructure (incubators, co- working space, laboratories) Assistance with internationalisation Assistance with applications for public funding Mentoring by experienced entrepreneurs Question: How has the demand for the special support measures developed over the last two years? Increased:
- 9. HEI partners in start-up support 35% 37% 42% 47% 49% 53% 53% 54% 54% 61% 61% 67% Banks Venture capitalists, business angels Chambers Managers and staff of large enterprises Consultants, tax advisors, lawyers Other HEIs Alumni National government Other business support organisations Regional/local govt Technology park, incubator Entrepreneurs Source: OECD (2015-2017), HEI Leader Surveys in IRE,NLD,HUN,POL; n=59 HEIs offering start-up support. Question: With regard to start-up support, does your HEI maintain strategic contacts with …?
- 10. • What kinds of business start-up support should HEIs provide to nascent entrepreneurs? • How could HEIs best collaborate with external partners in supporting nascent entrepreneurs? Guiding questions for the discussion
Hinweis der Redaktion
- Current practices of HEIs in entrepreneurship support can be grouped in four areas. Creating an entrepreneurial culture to create awareness and mobilise resources to reach out to all potential nascent entrepreneurs amongst students and staff. Training for nascent entrepreneurs: The “sparkle of genius” matters somehow, but most of what is needed to succeed as a nascent entrepreneur can be learned and HEIs can significantly influence initial phases of competence development in opportunity refinement and marshalling resources. Targeted support services: The HEI’s reputation & networks can help nascent entrepreneurs to overcome double-constrain of lacking internal sources and access to external resources. Key support measures are for example mentoring, providing access to incubation facilities. Joining resources across HEIs and with business support providers is important to facilitate the formation of start-up teams from multiple HEIs in close proximity or in same city and to connect basic start-up support offered by HEIs with more specialised support services.
- Question: How important are the following objectives for your HEI? Please give your answer by using a scale from 0 ‘Not important at all’ to 4 ‘Very important’ We have asked 100 HEIs in Ireland, Hungary, Poland and the Netherlands as part of the HEInnovate country reviews about the importance of entrepreneurship objectives. Top rated was developing entrepreneurial competencies of students; followed by the promotion of self-employment and business start-up as a viable career option for students. Supporting business start-ups by students was considered somewhat less important, whereas the least importance was assigned to supporting staff members to start-up a business. HEI Leader surveys: Ireland 2015: The survey was sent to universities and institutes of technologies in Ireland. From the 21 HEIs, a total of 17 HEIs completed the survey. The overall survey response rate was 81%. Poland 2016: The survey was sent to 434 public and private HEIs in Poland. A total of 27 HEIs completed the online survey. The overall survey response rate was 6%. Hungary 2016: The survey was sent to all 53 accredited HEIs in Hungary. From the 53 HEIs, a total of 27 HEIs completed the survey. The overall survey response rate was 51%. Netherlands 2016-17: The survey was sent to public universities and universities of applied sciences in the Netherlands. From the 57 HEIs, a total of 25 HEIs completed the survey. The overall survey response rate was 44%.
- Definition of entrepreneurship education activities in the survey: Entrepreneurship education activities, which aim at fostering entrepreneurial behaviour (i.e. opportunity recognition, idea generation, being able to analyse the environment in one owns business or as an employee or in everyday life), and/or increase the motivation and knowledge about selfemployment and business startup. Question: To what extent are the following teaching methods currently used in the entrepreneurship education activities at your HEI? [Not used Rarely used Regularly used Primarily used] What does the slide show: Looking into training for nascent entrepreneurs we noted from the HEInnovate country reviews that a wide range of teaching methods are used in the entrepreneurship education activities. The four most practiced teaching methods as reported by the surveyed HEIs in Ireland, Hungary, Poland and the Netherlands are lectures and frontal teaching, student-centred learning, case studies and business plan writing.
- The 4 least practiced teaching methods in entrepreneurship education are simulations or direct applications of how to internationalise and entrepreneurial initiative (be it a business, a project or an association). 66% of the surveyed HEIs reported that this is a teaching method which their rarely or not use. Also experience reports by start-ups are rarely used as are case studies about enterprise failure and prototype development.
- When looking into what specific start-up suppport measures HEIs use to give a helping hand to nascent entrepreneurs, the 4 most practiced support measures are assistance with business plans – practiced by 90% of the surveyed HEIs – assistance with the application for public funding, access to infrastructure, such as incubators, co-working spaces and laboratories. Also, well practiced is the referral to external business support organisations. We will come back to this point in a later slide. What special support measures are currently offered at the HEI?
- Interesting to note is that amongst the support measures with increased demand over the last 2 years, mentoring by experienced entrepreneurs leads the list, followed by assistance with accessing public funding and internationalisation. Providing assistance with internationalisation appears to be on the rise if we consider its increased demand over the last two years. In terms of current practice internationalisation support is practiced by less than 2/3 (59%) of the surveyed HEIs. Also in entrepreneurship education activities, internationalisation training in the form of simulations or direct applications is one of the least practiced teaching methods. Access to infrastructure, for example incubation or co-working spaces and the utilisation of laboratories, are an important feature of start-up support on HEIs. More than 2/3 or the surveyed HEIs reported an increasing demand over the past 2 years and this was one of the most common start-up support practices. We will come back to incubation in the second part of the session.
- HEIs have a wide range of partners in their start-up support. Around two-third of the surveyed HEIs collaborate with entrepreneurs, technology parks, incubators and regional or local governments. Slightly above or around half of the HEIs collaborate business support organisations, national government, other HEIs, their alumni, and business consultants, tax advisors and lawyers. Only close to one-third of the HEIs collaborate for their start-up support with venture capitalists and banks.