Specialized Training for Innovative Entrepreneurs Needed in Higher Ed, Study Finds

Given the important contribution of innovative entrepreneurs, it is essential for colleges and universities to adopt effective programs to educate and train prospective business founders who will introduce new products and new production processes, find new markets, or innovate in other ways, finds a study released by the Small Business Administration Office of Advocacy.

Unlike traditional entrepreneurs who generally establish new firms of some conventional variety, innovative entrepreneurs are considered critical contributors to economic growth, bringing technological advances to market. The study notes that while business schools throughout the U.S. currently have well-designed, effective programs to train conventional entrepreneurs, there are few, if any schools with programs specializing in the education of innovative entrepreneurs.

To determine how prospective innovative entrepreneurs can be trained most effectively, the study is centered on a survey of undergraduate and MBA alumni at five universities conducted by a team of researchers from New York University. Participants were surveyed to identify the nature of the courses and their teaching approaches, and materials that were most useful, later on, in carrying out entrepreneurial activities. Major findings include:

• Graduates who have taken entrepreneurial courses are significantly more likely to select careers in entrepreneurship, which is defined as founding, running, or being employed in a startup or entrepreneurial team.
• Graduates who have taken entrepreneurial courses are more innovative, as quantified by the number of patented innovations, new production processes, and new services and products.
• Graduates who have taken entrepreneurial courses and those who have not taken such courses are equally likely to work for small businesses.
• There is no discernable relationship between overall educational achievement (as defined by GPA and SAT scores) and selection of a career in entrepreneurship.
• Students who have taken entrepreneurial courses are more likely to self-report stronger skills in areas related to entrepreneurship.

Approximately 62 percent of MBA alumni and 13 percent of undergraduate alumni reported having taken a course focused on entrepreneurship at some time during their educational careers. Additionally, results suggest a strong correlation between respondents having taken an entrepreneurial course and their self-reported skills in identifying new business-related opportunities, the study finds.

Another round of the survey is planned for 2010 and will involve additional universities in the U.S. as well as Europe, China, and the Middle East. As the study moves forward, the authors say the data will be focused on helping instructors to train prospective innovative entrepreneurs more effectively.

Toward Effective Education of Innovative Entrepreneurs in Small Business: Initial Results from a Survey of College Students and Graduates was funded through a challenge grant from the Ewing Marion Kauffman Foundation and is available at: http://www.sba.gov/advo/research/rs353tot.pdf