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Integrating
education for
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Fernando Lourenco
Institute for Tourism Studies, Macau, China and Department of Management,
Manchester Metropolitan University Business School, Manchester, UK, and
Introduction
The financial crisis of 2007-2009 originating in the USA triggered a global recession
affecting many countries and businesses across the world. Although the UK is
showing signs of recovery, economic growth forecasts have been low and full recovery
is expected to take many years (Lane, 2010). Indeed, according to the National Institute
for Economic and Social Research (2012a, b) the UK economy technically entered a
double-dip recession in the first quarter of 2012, with growth for the year originally
anticipated to be close to zero, with later forecasts indicating a contraction in the
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economy this year and 1 per cent growth in 2013. The governments steep cuts in
public spending over the next five years is exacerbating the situation (Lane, 2010),
resulting in massive cuts in public sector jobs and rises in unemployment. The Office
for Budget Responsibility (OBR) forecasted 490,000 job losses by 2015 and 610,000 by
2016 (BBC, 2010a). A controversial report published by the Chartered Institute of
Personnel and Development (CIPD) correctly predicted that the impact of the
governments spending cuts and the rise in VAT to 20 per cent in January 2011 would
result in a loss of many public sector jobs and private sector jobs (BBC, 2010b;
Chartered Institute of Personnel and Development, 2010). This news added further
uncertainty to individuals and businesses across the UK.
In August 2012, there was a small improvement in the unemployment level in the
UK, but there were still 2.53 million out of work (Office for National Statistics, 2012).
Whilst there is expected to be a modest rise of 4.6 per cent in graduate recruitment in
the UK in 2012 (High Fliers Research, 2012), there will still be a significant shortfall of
graduate jobs. These statistics cast a shadow over university students entering the
jobs market (762,540 graduates in 2010/2011; 2.5 million engaging in higher education)
(Higher Education Statistics Agency, 2012). Entrepreneurship education is an
important intervention to tackle the recent economic downturn and reduce the level of
unemployment (Matlay, 2011). Higher education institutions (HEIs) play an important
role in helping students make the transition to being successful entrepreneurs who
create their own jobs and employment opportunities for others (Hannon, 2007;
Herrmann et al., 2008; Gibb et al., 2009; Volkmann et al., 2009; Gibb, 2010).
Two areas will be discussed in this paper:
(1) design principles for entrepreneurship education to facilitate graduate
entrepreneurship; and
(2) design methodology that allows multi-faculty collaboration in the provision of
entrepreneurship programmes.
In order to discuss these two areas, this paper will highlight a series of three
entrepreneurship units developed by a UK higher education institution to facilitate
graduate entrepreneurship and develop graduates with enterprising skills, and to aid
collaboration between different faculties in order to promote entrepreneurship
programmes to non-business students.
Following on from the introduction, the issue of unemployment is further explored
and the need to promote entrepreneurship education to enhance graduate
entrepreneurship is discussed. Then the design and methodology adopted for our
entrepreneurship education unit and multi-faculty collaboration are described. This is
followed by a discussion of the process of integrating such units into the business
school and non-business faculties. Our experiences of, and strategies for,
commercialisation are reviewed in light of the academic entrepreneurship literature.
We conclude by highlighting a number of best practices to aid educators who are
interested in adopting similar strategies to promote graduate entrepreneurship.
The graduates, unemployment and entrepreneurship education
In 1965, there were approximately 30,000 graduates entering the UK labour market
(Nabi et al., 2006). In 2010/2011 the number of graduates (undergraduate and
post-graduate) reached 762,540 in the UK (Higher Education Statistics Agency, 2012).
This growth is reflected in recent reports that state that the number of individuals
engaging in higher education grew to 2.5 million in 2011-2012 (Higher Education
Statistics Agency, 2012). This year the number of University applications reduced by 8
per cent but this follows on from a particularly strong rise of 12 per cent the previous
year (UCAS, 2012). This at a time when the overall jobs market for graduates is still
very uncertain (Nabi et al., 2006; Matlay and Carey, 2007) leaving graduates facing
difficult times (Lexmond and Bradley, 2010; Matlay, 2011).
In 2012, the worldwide recession increased global unemployment to over 200
million, 2.53 million in the UK (International Labour Organization, 2012; Office for
National Statistics, 2012). There has been a small rise of 6.4 per cent in graduate jobs in
the UK, following falls of 17.8 per cent and 6.7 per cent in the previous two years.
However, the jobs market for graduates is still very competitive with new graduates
entering the jobs market and one in three job applicants for graduate positions coming
from the previous years graduate cohort (High Fliers Research, 2012). A study of 502
SMEs found that recruitment of graduates was low in the last 12 months and their
intention to recruit was low for the next 12 months (Kewin et al., 2010). A report
published in 2007 indicated that almost a quarter of graduates were still struggling to
get full-time employment three and a half years after their graduation (Higher
Education Statistics Agency, 2007). The picture is even gloomier as further rises in
unemployment over the next two years are forecast (Chartered Institute of Personnel
and Development, 2010). Recovery of the private sector will be offset by the loss of
600,000 public sector jobs over the next five years (Chartered Institute of Personnel and
Development, 2010). As noted in Lexmond and Bradley (2010, p. 18), the combination
of a recessionary graduate job market, increasing numbers entering higher education
and a potential oversupply of graduates, top-up fees and spiralling student debt, has
led to recent graduates being described as generation crunch.
Traditionally, higher education institutions (HEIs) play the role of educating and
preparing individuals to become employees (Fletcher, 1999; Kirby, 2004; Nurmi and
Paasio, 2007). Self-employment or entrepreneurship has not been traditionally viewed
as the career choice for graduates (Hartshorn and Hannon, 2005). However, this
traditional role needs to be reformed because the world is changing (Kirby, 2004). In the
current economic climate with unemployment on the increase, graduate
entrepreneurship is ever more important (Draycott and Rae, 2011; Matlay, 2011).
HEIs play an important role in the development of the necessary behaviours and skills
that would enable graduates to create their own job (business start-up) or become an
effective job seeker (Lewis, 2005).
The Kauffman Foundation noted that new business start-up is crucial to the
renewal and restructuring on the economy (National Council for Graduate
Entrepreneurship, 2009a). One of their studies indicated that over half of Americas
Fortune 500 companies were formed during an economic downturn. This study
provides a silver lining to the dark cloud that is currently hanging over the economy
and shows that new businesses could lift [. . .] out of a recession (National Council for
Graduate Entrepreneurship, 2009a). During the 2001-2002 recession in the UK there
was an increase in business start-ups (National Council for Graduate
Entrepreneurship, 2009a). The people that are likely to take the risk of starting their
own business are not the employed, but rather it is the unemployed (National Council
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opportunities around which they can potentially create their own job whilst at the same
time enhancing their employability by being more enterprising (Draycott and Rae,
2011; Matlay, 2011). In 2007, we began our development of a three-year series of units
for entrepreneurship called Ideas, Creativity and Entrepreneurship (ICE). These units
aim to promote graduate entrepreneurship and improve graduate employability.
The literature noted that entrepreneurship education can be categorised into two
forms:
(1) education about entrepreneurship; and
(2) education for entrepreneurship.
Education about entrepreneurship is descriptive and it only provides students with the
knowledge about entrepreneurship. This type of education has been criticised for its use
of traditional pedagogical approaches that over-emphasise theory and treat functional
knowledge as an end rather than a means, such an approach restrains the
development of entrepreneurial skills, capabilities and attributes (Gibb, 1987a, 1993,
2010). Education for entrepreneurship is to support and facilitate students to become
entrepreneurial and/or to become an entrepreneur (Laukkanen, 2000). This form of
education adopts a more constructive learning pedagogy whereby learning is
constructed by learners through the process of doing (Gibb, 1987a, 1993; Smith et al.,
2006; Gibb, 2010). In the UK, Hannons (2007) review of entrepreneurship education
indicated that there is an emphasis on education about entrepreneurship (theoretical and
content driven courses), moderate provision of enterprise education (helping individuals
to become entrepreneurial), and there is a lack of education for entrepreneurship (helping
individuals to become entrepreneurs). To promote graduate entrepreneurship it is
particularly important to develop education for entrepreneurship, allowing students to
experience different stages within the entrepreneurship process (Gibb, 1987a; Plaschka
and Welsch, 1990), and develop enterprising attributes, skills and behaviours relevant to
each stage (Gibb, 1987a, b, 1993; Gibb et al., 2009). Therefore, education for
entrepreneurship is the preferred approach to support graduate entrepreneurship and to
promote the development of enterprising individuals.
The studies of Co and Mitchell (2006) and Lourenco and Jones (2006) noted different
types of pedagogical methods used in entrepreneurship education. However, Lourenco
and Jones (2006) argue that it is not the choice between traditional and enterprising
approaches which is important in entrepreneurship education. Rather, what matters is
how we integrate the functionalities offered by both approaches. It is important to use
instructive approaches (traditional methods) to introduce concepts and tools to
students, use constructive approaches (enterprising methods) to allow students to learn
by doing and use stimulants such as guest speakers and case studies, so linking
learning content to real world situations. The use of multiple pedagogical approaches
is a key design principle to guide the development of entrepreneurship education.
The ICE units adopt a constructivist methodology to teaching and are guided by the
use of multiple pedagogical approaches as guiding design principles. We have
developed a 30/70 session structure methodology (two-hour session). This structure
allocates 30 per cent of each training session for tutors to deliver training material
introducing concepts and tools, delivering case studies to create learning scenarios,
explaining assignments, and understanding in-class activities. The remaining 70 per
cent is designed to allow students to learn by doing through in-class activities. In order
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to support the 30/70 session structure design, three major pedagogical elements are
used (Table I). As depicted in Figure 1, each pedagogical approach is used in
combination to allow students to learn core concepts that are linked to real-world
scenarios and to learn by doing through activities and assessments. This methodology
encourages students engagement in the process of learning.
Recent development of entrepreneurship theories has focused on opportunity and
cognitive aspects (Gregoire et al., 2006). The field of entrepreneurship is defined as the
scholarly examination of how, by whom, and with what effects opportunities to create
future goods and services are discovered, evaluated, and exploited (Shane and
Venkataraman, 2000, p. 218). Ardichvili et al. (2003) argued similarly but replaced the
term opportunity discovery with opportunity recognition. They argue that an
opportunity is recognised via three distinct processes:
(1) sensing or perceiving market needs and/or underemployed resources (perception);
(2) recognising or discovering a fit between particular market needs and
specified resources (discovery); and
(3) creating a new fit between heretofore separate needs and resources in the
form of a business concept (creation) (Ardichvili et al., 2003, pp. 109-10).
These three processes require an individual to actively shape their initial ideas into
business concepts and business models. Within this development process,
opportunities are evaluated and screened through a feasibility analysis to a
full-blown business plan. In this process, opportunities will pass through a series of
screening gates where ideas are assessed, revised or aborted. Subsequently, the
development process may lead to the formation of business enterprise to exploit
opportunity. Opportunity development is crucial as the recognition of opportunity in
itself cannot become a business (Ardichvili et al., 2003).
In essence, the literature indicates two building blocks to influence the development
of our conceptual framework:
(1) stages of entrepreneurial opportunity (recognition, evaluation, formation and
exploitation); and
(2) development of enterprising behaviours, skills and attributes in relation to each
stage within the entrepreneurial process.
Table I.
Pedagogy and learning
mode
Figure 1.
Session format (30 per cent
input of academic staffs
and entrepreneurs and 70
per cent of the time is for
students to practise and
learn by doing)
Pedagogy
Mode of learning
Instructed to learners
Stimulus: creating learning scenario
Constructed: learn by doing
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Figure 2.
Framework for Ideas,
Creativity and
Entrepreneurship unit
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Table II.
Pedagogies and activities
Level
Pedagogies
Year 1
Year 2
Year 3
Non-curricular activities For example: student enterprise society, Students in Free Enterprise (SIFE)
society, working with Innospace business incubator, working with the our
universitys Enterprise Champion, National Council for Graduate
Entrepreneurs (NCGE), Shell Livewire, Shell Technology Enterprise
Programme, Make your Mark initiatives, Young Enterprise, Innoflux,
Flux500, Enterprise Days in schools, Innospace Business Planning
Competition, Xing Business Game, etc.
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Example of pedagogy
Type of design
Designed by
Standardised material
Flexible material
Standardised format with
changeable content/context
Standardised format with
changeable content/context
Standardised format with
changeable content/context
Non-business school
Business/non-business
Assignment
Table III.
Pedagogy, type of design
and faculties
Assessment
Business/non-business
Business/non-business
Figure 3.
Session format
(standardised, flexible and
semi-flexible material)
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Year 1
Year 2
516
Table IV.
Programme review,
2000-2009
Year 3
Programme review
Programme modifications
New Strategic Plan 2007-2020
2007
2008
2009
ICEa
ICEa
ICE 1
ICE 1
ICE 2
Notes: The ICE 80/20 scheme offers the entrepreneurship unit to non-business faculties; aICE Initial
unit that combines aspects of ICE 1 and ICE 2
Enterprising Management unit into what is now known as ICE. The first ICE unit was
initially accepted in the 2007 Programme Review and it was expanded through the
process of Programme Modification to introduce the three-year series of units, a
modified unit for our foundation colleges, and the 80/20 scheme for non-business
faculties.
While promoting and integrating entrepreneurship education in the curriculum is
emphasised in the literature, issues that may restrict the process are highlighted.
For example: there may be a lack of resources and/or an overload on the university
system (Sexton and Bowman, 1984; Hills, 1988); bureaucracy and political infighting
(McMullan and Long, 1987); a lack of flexibility in the use of resources and
hierarchical departmental structures in schools and universities (Gibb, 1993); and/or
restricted space for new courses and new ways of teaching (Smith et al., 2006). This
highlights the complication of implementing new initiatives and not to mention
enterprising approaches to support entrepreneurship education in HEIs (Herrmann
et al., 2008; Gibb et al., 2009; Volkmann et al., 2009; Gibb, 2010; Draycott and Rae,
2011). Many of these issues have affected the flow of our development and the
integration process. Nonetheless, many hurdles were passed with ease because our
development was in line with the overall strategic plan of the university, and the
timing coincided with the programme review in 2007 allowing us to integrate and
expand ICE at a faster pace. Timing and alignment to the strategic plan both
played a crucial role in our project.
The quick expansion of the ICE unit attracted criticism, non-believers, and
opposition to our approach and pedagogy. In order to deal with the internal politics and
build a credible foundation for ICE within our institution, we used positive feedback
from external sources and theoretical justifications from the literature. For example,
positive student and external examiner feedback/evaluation helped to overcome many
objections and doubts about our pedagogy. Our design methodology was recognised in
2009 by winning the National Enterprise Educator Awards (UK) which was judged by
well-known entrepreneurship educators in the field. This helped to develop a positive
perception towards ICE in the university and thus credibility was created. The
expansion and integration of ICE into external HEIs and colleges also indicated its
relevance and value to external partners. Finally, we helped create a clearer
understanding for management when we presented documents containing the
theoretical underpinning for our design principles and methodology.
2000 to 2003
Programme unit
Pedagogy
Traditional
Year 3 Enterprising
knowledge transfer
management
For Business
Enterprise degree only
Year
Enterprising
management
For the whole
school
Practical focus on
business start-up
2004 to 2006
Programme unit Pedagogy
Enterprising
management
For the whole
school
2007 to present
Programme unit Pedagogy
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Table V.
Initial Education for
Entrepreneurship unit
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In summary, the timing and alignment to the university-wide strategic plan were
crucial factors that supported the success of our project. Another critical factor was
effective team-working. Team roles and responsibilities were devised for each member
at the start of the ICE project (implicitly and explicitly). In brief, each team member
was responsible to work on areas that they are familiar with and therefore synergy and
effectiveness was created:
.
author 1 research and development;
.
author 2 internal affairs and strategies; and
.
author 3 marketing, sales and operations.
This small team, in part, acted like a business unit within a larger organisation.
Conclusion
This paper argues in response to the current economic downturn and unemployment
issues that graduate entrepreneurship is an important intervention. HEIs play an
important role in helping students make the transition to being successful entrepreneurs
who can create their own job and possibly jobs for others. We have set out to discuss two
major areas in this paper, i.e. design methodology for entrepreneurship education and for
multi-faculty collaboration. We have also highlighted the integration of ICE inside our
university and with our college partners, as well as our efforts toward academic
entrepreneurship. Our project (see the Appendix) resulted in the formation of a range of
businesses (over 120) and many graduate entrepreneurs.
This paper contributes to the entrepreneurship education community through the
sharing of our experiences, our design principles and methodology. In turn, we aim to
encourage the growth of graduate entrepreneurship in the UK to overcome the problem
of over-supply of university graduates in a very difficult employment market. Harvard
Business School has recently announced the reinvention of its MBA programme by
emphasising more on learning by doing and integrating business start-up as a
requirement of the course (The Economist, 2011). Harvard Business School is doing
this as part of its reinvention, and ICE in a small way is doing the same for our
university by helping our students to be more employable and entrepreneurial.
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Wittrock, M.C. (1978), The cognitive movement in instruction, Educational Psychologist, Vol. 13,
pp. 15-29.
Wittrock, M.C. (1986), Students thought processes in Wittrock, M.C. (Ed.), Handbook of
Research on Teaching, 3rd ed., Macmillan, New York, NY.
Wood, M.S. (2009), Does one size fit all? The multiple organizational forms leading to auccessful
academic entrepreneurship, Entrepreneurship Theory and Practice, Vol. 33 No. 4,
pp. 929-947.
Further reading
National Institute of Economic and Social Research (2011), press release: embargo, 3 November,
available at: www.niesr.ac.uk/pdf/031111_83237.pdf (accessed 30 November 2011).
Paton, G. (2010), Top A-level students could miss out on university, The Telegraph, 8 August.
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Appendix
The following is a list of examples of companies created via education for entrepreneurship:
.
eBay interface business;
.
fancy dress;
.
gadgets;
.
calendars;
.
laptop covers;
.
gifts;
.
websites;
.
consultants;
.
restaurant vouchers;
.
animal exercise;
.
health and fitness;
.
clothing;
.
parcel delivery;
.
smartphone applications;
.
personal attack alarms;
.
household security;
.
new student welcome packs;
.
childrens literature;
.
sports events;
.
PS3 and other gaming events;
.
revision guides;
.
event management;
.
second-hand books;
.
gas certification;
.
flat rental;
.
phone recycling;
.
portable massage;
.
yearbook;
.
cleaning equipment;
.
sandwich delivery;
.
student guides;
.
under-18 events;
.
magazine;
.
phone charge stations;
.
fancy dress;
.
music and culture magazine;
.
parcel delivery;
.
catering;
.
.
.
.
.
.
Corresponding author
Fernando Lourenco can be contacted at: f.lourenco@mmu.ac.uk or fernandolourenco@ift.edu.mo
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