Description
This brief criteria pertaining to entrepreneurial education in scotland.
Entrepreneurial
Education
inScotland
ARoyal Society of Edinburghdiscussionpaper
AdvicePaper 15-09June2015
Contents
Foreword page 3
Executive Summary page 4
1 Introduction page 6
1.1 About this report page 6
1.2 Background and context page 6
1.3 A focus on the role of universities page 7
1.4 The roles of the Scottish Funding Council and Research Councils page 8
1.5 The roles of enterprise agencies and business support bodies page 9
2 Enterprise education, entrepreneurship education and skills for growth page 11
2.1 De?nitions and explanations page 11
2.2 Why entrepreneurial education is important page 13
3 Entrepreneurial education: current provision, challenges and opportunities page 15
3.1 Enterprise education page 15
3.2 Entrepreneurship education page 22
3.3 Skills for growth page 25
4 Emerging recommendations page 32
4.1 For the Scottish Funding Council and Research Councils page 32
4.2 For universities page 32
4.3 For enterprise agencies and business support bodies page 34
Appendix A: Organisations represented at roundtables page 35
Appendix B: References and literature review page 36
Additional Information page 37
Foreword
The Scottish Government has set out an ambitious vision for Scotland to become a ‘world-leading
entrepreneurial and innovative nation’. Such ambition is to be welcomed; indeed, it is necessary as
Scotland – like many of its global neighbours – continues to steer its way out of turbulent times.
Scotland’s economy must be driven by a skilled, ambitious and creative workforce if it is to achieve
truly sustainable growth and be able to rise to societal challenges on the horizon.
But much must be done to close the current gap between Scotland’s ambition and its reality
The rate of newbusiness creation in Scotland has increased in recent years, but it continues to
lag behind that of the UK, and even further behind the entrepreneurial front-runners it seeks to
emulate. Levels of commercialisation of the world-class research carried out within our
universities equally remain stubbornly low. We face a sizeable task.
An entrepreneurial culture requires a number of building blocks: strong support networks; a
ready supply of creation and growth ?nance; simple start-up procedures. But ?rst and foremost
it needs people with the ambition, vision, creativity, commitment and leadership ability to drive
venture creation and growth on a scale that will contribute to sustainable economic growth.
Scotland’s universities have a central role to play in supporting today’s young people to develop
not only the skills but also the mind-set needed to fuel, and to realise, entrepreneurial ambitions.
For this reason, the Business Innovation Forumof the Royal Society of Edinburgh set up a Working
Group to consider entrepreneurial education in Scotland, with an emphasis on the role of
universities. Ably led by Dr Olga Kozlova, who has many years of experience of entrepreneurship
development, most recently as Director of the prestigious Converge Challenge, the group met with
a number of key stakeholders fromthe Scottish education and entrepreneurial ecosystems to
start a discussion on the challenges and opportunities of the current system.
This paper sets out the picture that has emerged fromthose discussions. It ?nds that progress
has been made in embedding enterprise and entrepreneurship into higher education, but that
powerful opportunities remain for universities, working closely with enterprise support agencies
and others in the entrepreneurial ecosystem, to step up support for both potential and existing
business leaders.
We hope that this paper acts as a stimulus for further discussion and action by all stakeholders
that will support a fundamental culture shift in Scotland: one that prepares our young people
not just for life as an employee, but for a vibrant and fast-moving business landscape in which
opportunities are to be grasped and ambitions realised.
Finally, I would like to thank Olga and the members of the Working Group – Donna Chisholm,
Elizabeth Fairley and Fiona Godsman – for contributing their considerable expertise, experience
and time to this project.
IanRitchie CBEFREng FRSE
RSEVice-President for Business andChair, RSEBusiness InnovationForum
Entrepreneurial Education in Scotland PAGE 3
Executive Summary
The Scottish Government’s ambition is
for Scotland to become a world-leading
entrepreneurial nation. Scottish universities
have a pivotal role to play in achieving this
ambition, along with public and private
business support agencies, industry and
a range of other actors.
The Business Innovation Forumof the Royal
Society of Edinburgh (RSE) has produced this
discussion paper to provide an overviewof
entrepreneurial education: the skills and
experiences that will support Scotland’s students
of today to become an innovative and dynamic
workforce of the future; and howthese are
currently delivered. Focusing on the role of
universities, but with consideration also of the
wider entrepreneurial ecosystem, this paper sets
out emerging recommendations and points to be
considered to ensure Scotland-wide access to all
three levels of entrepreneurial skills training:
> Enterprise education (basic business
awareness and soft employability skills);
> Entrepreneurship education (applying these
skills to the creation of a newventure); and
> Skills for growth (scaling up an existing
venture).
It became clear fromour discussions that a
comprehensive, joined-up approach to the delivery
of entrepreneurship education is key to ensuring
consistency and quality. We therefore recommend
the creation of anEntrepreneurshipEducation
Forumwhich would bring together high-level
representatives of academic institutions, private
and public business support organisations and
industry practitioners, to oversee a comprehensive
programme for the delivery of entrepreneurial
education in Scotland. This Forummay most
appropriately be led and coordinated by a national
body such as Entrepreneurial Scotland, but it
would require strong endorsement fromthe
Scottish Government and the support of the
Scottish Funding Council to be effective.
There has been improvement in the delivery of
enterprise educationwithin Scottish Higher
Education Institutions over recent years, with
good practice developed across a wide range of
universities. However, provision is still patchy, both
within and between institutions, and there are
insuf?cient links between academic departments,
business schools and professional services such
as careers advisors, technology transfer of?ces,
alumni networks and student unions. An additional
challenge is the limited exposure of students
within Scottish universities to role models from
outwith academia.
In order to enhance the delivery of enterprise
education across Scottish universities, a concerted
effort should be made to support all academic staff
to understand its relevance and importance, and to
develop their capacity to introduce enterprise skills
into the curriculum. This may require:
> Strong and consistent endorsement from
senior management within universities;
> The development of a dedicated
Entrepreneurial Strategy by each institution;
> The allocation of funding available through
Knowledge Transfer Grants towards the
employment of Enterprise Champions;
> The use of metrics within Scottish Funding
Council Outcome Agreements to encourage
institutions to embed enterprise education
across all departments.
> Improved use of role models through the
engagement of non-academic lecturers and/or
the university’s professional services and
alumni networks.
The provision of entrepreneurshipeducation in
Scotland, supporting those who want to create a
newventure, is broadly satisfactory. There are both
internal university-based support mechanisms
such as Launch.Ed and Enterprise Gym, as well as
well-established pan-Scotland initiatives such as
the Converge Challenge, RSE Enterprise
Fellowships, the Scottish Institute for Enterprise
and the newly launched Enterprise Campus
initiative. However, given the wide range of
providers, there is a need for coordination and
awareness-raising of the support available.
Entrepreneurial Education in Scotland PAGE 4
Executive Summary
This may be achieved through:
> Improved coordination of activities between key
stakeholders and support agencies, by a
national umbrella organisation but with active
involvement of universities.
> A reviewby universities of the entrepreneurial
ecosystems that exist across their departments
to ensure that best practice is identi?ed and
shared and that students with entrepreneurial
inclinations are supported to progress their
ideas.
The scaling up of established ventures is
imperative to sustainable economic growth in
Scotland. However, at present some 94%of
businesses in Scotland have fewer than ten
employees. There is a gap in Scotland for
supporting existing business leaders to develop
growth ambitions by ensuring that they have an
excellent grounding in the fundamentals of
entrepreneurship fromwhich their business can
grow. While this overlaps with entrepreneurship
education, skills for growth, including world-class
leadership capacity, must be embedded at the
earliest stage of learning, and universities have
a powerful potential to step into this role.
Enterprise agencies will be central to supporting
the development of programmes suitable for
Scottish businesses and in ensuring that
businesses can access support. Private sector
training providers will continue to be an important
part of the ecosystemby adding value through
their expertise on speci?c skills for growth
and the ?exibility they can offer in the design
of training.
There is a varied and vibrant support landscape
in Scotland, with a wide range of agencies,
incubators and initiatives working to promote
business growth. However, there is clearly
signi?cant potential to spur growth among a
larger proportion of SMEs and to address
particular gaps around the provision of key growth
skills such as sales and international trade.
Universities, enterprise agencies and other
actors in the skills and support ecosystem
should continue to rise to this challenge,
by giving consideration to:
> the development of courses and executive
education programmes (such as those run by
MIT and Babson College in the US) suited to
Scottish SMEs, which can be delivered in a
business setting and made relevant to speci?c
businesses.
> howskills for growth training can most
effectively be delivered by business schools,
drawing on speci?c expertise available from
other public and private providers.
> national coordination and development of
networks between SMEs so that they can
support one another in a non-competitive
environment.
Entrepreneurial Education in Scotland PAGE 5
1 Introduction
The ‘Scotland Can Do’ agenda
1
, launched by
the Scottish Government in late 2013, sets
out an ambition for Scotland to become a
world-leading entrepreneurial nation. Realising
such an ambition, however, will largely depend
on equipping Scotland’s young people with the
mind-set and skills that will enable themto
take an entrepreneurial approach to their
future careers.
The Business Innovation Forumof the Royal
Society of Edinburgh has therefore taken a
timely look at whether and howentrepreneurial
education is currently embedded across Scotland.
A key focus of this reviewhas been the role of
Scottish Higher Education Institutions (HEIs) in
producing graduates with these skills and
mind-set. The emerging recommendations
set out in this paper are primarily directed
at the HE sector. However, the conversion of
entrepreneurial potential into real economic and
social bene?t for Scotland inevitably demands
effective partnership across the business support
ecosystem. This paper, therefore, also makes
some comment on the roles of other actors in
this ecosystemand highlights a number of
potential actions that would support Scotland
to achieve its entrepreneurial ambition.
1.1 About this report
This report is based on a number of roundtables
and interviews with key stakeholders from
the Scottish education and entrepreneurial
ecosystems (Appendix A), complemented by a
reviewof existing relevant literature (Appendix B).
It considers three ‘levels’ of entrepreneurial
education– basic enterprise skills, entrepreneurship
education and skills for growth – and comments
on the current provision, gaps and opportunities
for each. Looking to the future, it considers:
1 Howprovisions for enterprise education could
be expanded much more widely across the
spectrumof undergraduate courses.
2 Howdifferent stakeholders within the
entrepreneurial ecosystemcan improve
entrepreneurship education for interested
undergraduate and postgraduate students.
3 HowSMEs with high growth potential could
be provided with the necessary executive
education and training to develop key skills
for growth.
This report will be of interest to Scottish
universities, the Scottish Funding Council,
Research Councils, the Scottish Government,
Scottish enterprise agencies and business support
organisations, and to pro?t and not-for-pro?t
organisations within the entrepreneurial
ecosystemin Scotland.
1.2 Backgroundandcontext
A recent REAP(Regional Entrepreneurship
Acceleration Programme) Scotland report
2
examined the environment inwhichentrepreneurs
in Scotland operate. It identi?ed seven
weaknesses and bottlenecks in Scotland’s
entrepreneurial ecosystem:
> opportunity perception;
> start-up skills;
> networking;
> product and process innovation;
> high-growth aspirations;
> internationalisation; and
> risk capital.
It further identi?ed areas where Scotland has an
opportunity to strengthen its entrepreneurial base.
These include skills for growth, an enhanced role
for universities and more extensive use of role
models, as well as effective connections and
improved ?nancing for growth.
Entrepreneurial Education in Scotland PAGE 6
1 ‘Scotland CANDO: Becoming a World-leading Entrepreneurial and Innovative Nation’, Scottish Government, November 2013
2 ‘‘Increasing Innovation-Driven Entrepreneurship in Scotland’, The Regional Entrepreneurship Acceleration Programme (REAP) report,
REAPScotland Team, 2014
Introduction
1.3 Afocus ontheroleof universities
The REAPreport identi?ed the university sector as
crucial to the development and maintenance of a
strong entrepreneurial ecosystem. Citing MIT in
Boston as an exemplar, it suggests that “the
university sector has the opportunity to play a pivotal
role in the further development of Scotland’s
entrepreneurial ecosystemand an entrepreneurial
culture that is open to the world”
3
. A key question
that this report will seek to address, therefore, is
what the role of universities can and should be in
delivering entrepreneurial education.
A Universities Scotland report quotes the Institute
of Directors Scotland, highlighting that in today’s
world “There is no job security. Six to ten different
careers is the norm”
4
. This emphasises the need
for universities to equip their students with
employability skills (i.e., self-management,
problemsolving, teamworking, business
awareness, communication, information literacy,
the use of technology) as a central part of their
learning journey. Such skills, also referred to as
graduate attributes, are de?ned and embedded
across all of Scotland’s HEIs.
There is, however, less consistency across the
sector on what the role of universities can and
should be in going beyond employability skills,
in order to produce graduates with a truly
entrepreneurial mind-set. It is not expected that a
majority of undergraduates will start a business
straight after ?nishing their degree, but whether
they do set out to create their own venture,
to pursue a career in academia or to ?nd
employment within industry, their ability to be
?exible, to identify opportunities and to persuade
others of the value of their ideas, will be a key
pillar of an entrepreneurial culture and a
?ourishing Scottish economy. Therefore, the role
of universities in equipping graduates with these
skills is increasingly relevant.
Further, universities have unique resources,
in terms of knowledge and networks, to take
a powerful role in supporting both potential
entrepreneurs and existing business leaders in
Scotland to understand the importance of creating
a strong venture identity, purpose and offering
fromthe outset. This will be crucial to facilitating
successful growth in the future; an area in which,
to date, Scottish businesses have been weak.
There are, of course, challenges for universities in
delivering entrepreneurial education. The pace
with which science and technology move forward
makes it dif?cult, for STEM
5
subjects in particular,
to ?nd space within the curriculumto introduce
the teaching of practical/vocational skills. Arts and
humanities or theoretical subjects often face
another challenge, where the relevance of
enterprise skills is less obvious. Additionally,
course leaders and lecturers predominantly come
fromacademic backgrounds, limiting their ability
to bring experience and insight into the realities of
enterprise and entrepreneurship to the classroom.
Nevertheless, experience elsewhere suggests
that such challenges must be overcome if
Scotland is to realise its entrepreneurial
ambitions. Research by the Kaufmann Foundation,
for example, has found that MIT graduates have
set up so many companies that together they
create an economic output equivalent to that of
one of the top 20 countries in the world
6
. The
education that students receive at MIT, their
exposure to entrepreneurial role models and a
surrounding strong entrepreneurial ecosystem,
allows themto translate their academic
knowledge into commercial value. The lack of
such focus or entrepreneurial culture in Scotland
is likely to be one of the reasons why Scotland
lags signi?cantly behind the rest of the UKfor
R&Dexpenditure in business, despite being an
international leader in R&Dexpenditure in higher
education
7
.
Entrepreneurial Education in Scotland PAGE 7
3 ‘‘Increasing Innovation-Driven Entrepreneurship in Scotland’, The Regional Entrepreneurship Acceleration Programme (REAP) report,
REAPScotland Team, 2014, p33
4 ‘Taking Pride in the Job’, Universities Scotland, 2013 p7
5 Science, Technology, Engineering and Mathematics
6 ‘Entrepreneurial Impact: the role of MIT’, Edward BRoberts and Charles Eesley, MIT Sloan School of Management, 2009
7 ‘Increasing Innovation-Driven Entrepreneurship in Scotland’, The Regional Entrepreneurship Acceleration Programme (REAP) report,
REAPScotland Team, 2014, p19
Introduction
1.4 Theroles of theScottishFunding
Council andResearchCouncils
The Scottish Funding Council (SFC) is one of the
key stakeholders within the entrepreneurial
ecosystemin Scotland, working closely with the
Scottish Government, Universities Scotland and
others. Outcome Agreements signed between SFC
and each Higher Education Institution set out what
universities plan to deliver in return for the public
funding received fromSFC. These outcomes are
expected to contribute towards improving life
chances, supporting world-class research and
creating sustainable economic growth, each of
which ties strongly with the need for a ?ourishing
entrepreneurial culture in Scotland.
SFChas a central role in facilitating knowledge
exchange: ensuring that the research it supports
within universities can be accessed and used by
business and industry to create real economic and
social impact for Scotland. Much of this work
involves fostering partnership and interaction
between academia, the research community and
industry; an important factor in supporting
researchers to raise their awareness of business
needs and business opportunities. But further,
it involves encouraging researchers to consider
commercialising their own ideas and supporting
these entrepreneurs to create, and to grow, their
own ventures.
Entrepreneurial Education in Scotland PAGE 8
Case Study: SFCsupportinginnovationandentrepreneurshipinScotland
InnovationScotland
Innovation Scotland is the strategy of partners – SFC, Universities Scotland, Scottish
Enterprise and Highlands and Islands Enterprise – to increase the ef?ciency, effectiveness,
clarity, simplicity and sustainability of support for innovation and entrepreneurship
provided at the interface between universities and businesses in Scotland.
The Innovation Scotland Forum, consisting of senior representatives of universities and
industry, meets three or four times a year to provide advice to the boards of the partners
on the on-going implementation of the strategy.
InnovationCentres
SFClaunched the Innovation Centre programme in 2012 to support transformational
collaboration between universities and businesses, working in partnership with Scottish
Enterprise and Highlands and Islands Enterprise.
Supported by core SFCfunding of £120 million over the period 2013–2018, Innovation
Centres have been established across a number of key economic sectors, including digital
health, aquaculture, oil and gas and construction, to facilitate secondments, industrial
studentships, collaborative working, access to equipment and skills and training for
researchers and knowledge exchange practitioners.
Enterprise Campus
A joint initiative between the universities of Aberdeen, Edinburgh and Strathclyde, each
acting as a hub, Enterprise Campus supports postgraduate students fromany Scottish
university who want to set up their own business.
Funded by SFC, the initial focus of Enterprise Campus is on potential high-growth
businesses, providing business planning support, mentors, ?nancial, legal and IPadvice,
information on funding opportunities and more, tailored to the needs of the business.
Introduction
Similarly, the seven UKResearch Councils are
another important source of funding for HEIs and
research institutes, through the award of funding
to researchers based on the strength of their
proposals. They are tasked with core objectives to
contribute to the economic competitiveness of the
UKand to enhance the quality of life and creative
output of the nation. Research Councils, therefore,
have a distinctive role to play in the innovation
landscape, supporting exploitation of the research
they fund. This involves working closely with
industry, either directly or through Innovate UK, to
couple research to industry needs, to undertake
intensive knowledge transfer activities, to provide
industry access to cutting-edge facilities and to
support the creation and growth of innovative
ventures.
Both the Scottish Funding Council and the
Research Councils are therefore well-placed to
use available mechanisms to encourage every
university to develop entrepreneurial education
and an entrepreneurial culture. They are further
ideally placed to provide a link between realising
the potential of the research and innovation
ecosystemand supporting a vibrant
entrepreneurial ecosystem.
SFC, together with the Funding Councils of each of
the UKnations, also jointly conducts the Research
Excellence Framework exercise which aims to
assess the quality of research undertaken in HEIs
and to produce evidence of its impact. While this is
a valuable exercise that ensures accountability for
public investment in research, it also acts as a
driver for HEIs to prioritise the employment
of academic, research-active staff, and as a
disincentive to employ lecturers fromenterprise
and industry backgrounds.
1.5 Theroles of enterpriseagencies
andbusiness support bodies
Scotland has a vibrant landscape of business
support, with:
> two over-arching national enterprise agencies,
Scottish Enterprise and Highlands and Islands
Enterprise;
> industry-speci?c public bodies such as
VisitScotland and Creative Scotland;
> speci?c support for SMEs through Business
Gateway;
> speci?c support for different aspects of
business; e.g., Skills Development Scotland,
Talent Scotland and Scottish Development
International;
> a wide range of membership bodies, such as
Entrepreneurial Scotland, the Scottish Council
for Development and Industry, Scottish
Chambers of Commerce, the Federation of
Small Businesses Scotland, Scottish
Engineering and Scotland Food and Drink;
> business incubation centres and accelerators
focused on speci?c industries and/or
geographic locations, such as Entrepreneurial
Spark, Creative Clyde and Codebase;
> strategic infrastructure projects such as the
Edinburgh BioQuarter and Energetica in the
northeast of Scotland.
All of these bodies do and will have an
important role in the development of the strong
entrepreneurial culture envisaged in the Scottish
Government’s Scotland Can Do agenda. They
have a complementary role to play, alongside
universities and other educational institutions, in
supporting people with innovative ideas to access
the skills and resources required to put their ideas
into action and create their own venture.
Further, they have a principal role in supporting
those who have already established a viable
venture to growtheir operations, increasing the
economic and social bene?ts for Scotland.
Entrepreneurial Education in Scotland PAGE 9
“Wewill support Scotland’sentrepreneurial
ecosystem, supporting entrepreneurs,
spin-outs andstart-ups withambition,
signi?cant growthpotential andthe
capability andcon?dence to trade ona
global platform.
We will engage withpartners suchas
universities, Business Gateway, Scottish
EDGE, Entrepreneurial Scotland,
Informatics Ventures, EdinburghBioQuarter
anda growing range of emerging private
sector ‘accelerators’, to improve support
for companies startedby entrepreneurs.”
Scottish Enterprise,
2015–2018 Business Plan, p7
Introduction
The support available fromthese bodies to
potential entrepreneurs, and to business founders
looking to growtheir company, ranges fromonline
resources providing an introduction to aspects
of business management, to intensive account
management for potential high-growth
companies. Free advice on business planning;
identifying and sourcing necessary skills; legal,
?nancial and IPissues; fundraising opportunities;
mentoring services; and assistance with customer
and supplier contacts are among the services
on offer.
However, it is important that these services are
effectively designed, delivered and coordinated in
order to ensure that they generate maximum
impact and return on investment in support.
Entrepreneurial Education in Scotland PAGE 10
Case Study: Skills
Development Scotland
–Skills for Growth
In January 2015, Skills Development
Scotland (SDS), working in partnership with
Investors in People Scotland, launched an
innovative product to support companies
with ambitions for growth.
Through this initiative, SDS and Investors in
People Scotland can help businesses identify
their priorities and objectives, link these
to the people and skills needs of their
organisation and create a tailored action
plan.
The plan is then passed to an SDS Employer
Engagement Advisor, who can identify
appropriate training providers and advise
the employer on howthey can apply for any
public sector funding that may be available
to them.
Entrepreneurial Education in Scotland PAGE 11
2 Enterprise education, entrepreneurship
education and skills for growth
2.1 De?nitions andexplanations
8 ‘Enterprise and Entrepreneurship Education: guidance for UKHigher Education providers’, QAA, 2012, p2
9 ‘Enterprise and Entrepreneurship Education: guidance for UKHigher Education providers’, QAA, 2012, p2
> Generate an idea and
make it happen
> e.g., idea formulation,
teamwork
> Mainly undergraduate
students
Enterprise
Education
> Focus on setting up
a newventure
> e.g., business development,
fundraising
> Both undergraduate &
postgraduate students
Entrepreneurship
Education
> Provision of skills
for growth
> e.g., leadership, international
trade, growing a team
> Founders of existing companies
Skills for
Growth
2.1.1 Enterpriseeducation
Enterprise education is described by the Quality
Assurance Agency for Higher Education (QAA) as
“the process of equipping students (or graduates)
with an enhanced capacity to generate ideas and the
skills to make themhappen”
8
. This involves skills
such as creativity, a can-do attitude, networking
and a willingness to take risks without the fear
of failure. It aims to provide students with the
mind-set necessary to be enterprising, whatever
their future career.
It is important for Scotland’s economy that
companies of all sizes are able to recruit froma
strong, local talent base. Enterprise education
seeks to supplement and strengthen general
employability skills. It is not about studying
business, but rather about engagement with the
entrepreneurial ecosystem, exposure to role
models and building the skills to be ?exible and
adaptable. Enterprise education will, therefore, be
valuable and appropriate for most undergraduates
and is something that can take place at a more
generic level, embedded across the spectrumof
undergraduate degree courses.
2.1.2 Entrepreneurshipeducation
Entrepreneurship education is de?ned by the QAA
as equipping students with “the additional
knowledge, attributes and capabilities required to
apply these abilities in the context of setting up a
newventure or business”
9
. This may involve
enhancement of the skills covered under
enterprise education, as well as leadership skills,
business planning, fundraising, innovation and
business development.
Figure 1 Different types of entrepreneurial education.
Enterprise education, entrepreneurship education and skills for growth
This type of education targets a smaller audience,
as students are rarely ready to set up a business
immediately upon graduation. Instead, those
with entrepreneurial inclinations will be looking
to bank foundational skills that they can use later.
Entrepreneurship education should lay the
foundations of strong leadership, providing
students with an understanding of the role of
leader in creating and communicating their vision,
mobilising others to commit to and achieve that
vision, creating newopportunities and nurturing
growth. It should support students to develop an
enhanced self-awareness of their own leadership
strengths and areas for development.
But courses in entrepreneurship must also provide
students with more speci?c knowledge and skills,
including the tools and methodologies that will
enable potential entrepreneurs to establish the
‘?rst principles’ of their venture. Such ?rst
principles will involve de?ning the core offering,
developing a product plan, quantifying the value
proposition, identifying the customer base and
considering howmarkets can be reached, as well
as testing assumptions and undertaking primary
market research
10
.
More generally, entrepreneurship education
will also include practical aspects such as an
understanding of the economic and business
landscape in which businesses operate, the ability
to analyse relevant data and extract useful
information and the ability to understand market
trends. It will also provide students with an
understanding of the ?nancial aspects of
management; including, for example, an
understanding of intellectual property
management, reading a balance sheet and
howto use Companies House and HMRC.
Again, these are the minimal necessary skills for
anyone wishing to run their own business, and will
likely be particularly relevant to any student,
undergraduate or postgraduate, who is actively
considering the commercialisation of an idea or
product. However, many of these skills will also be
useful for graduates who want to have control of
their careers and to understand the business
context in which they are working.
2.1.3 Skills for growth
Skills for growth training is aimed at building the
skills, understanding and support networks of
existing SMEs and business leaders so that they
can expand and reach bigger markets. There is a
continuumin the entrepreneurial education system,
as the successful scale-up of a business will in part
depend on the strength of leadership abilities and
decisions made at the point of creation, and in
particular on the solidity of the ‘?rst principles’
that lie at the heart of the business. For many
businesses operating in Scotland today, including
those which have been established by owners
without any formal entrepreneurship education,
such an approach will not have been taken at the
outset. Therefore ‘skills for growth’ training will,
in fact, start at an earlier step, ensuring that the
business leader has access to high-quality
entrepreneurship education that places these
fundamentals at the heart of the process,
establishing a solid base fromwhich to grow.
Once this base has been established, skills for
growth training will include the delivery of in-depth
knowledge of a wide range of speci?c aspects of
business. These skills might include, for example,
broadening leadership abilities, understanding
international markets, increasing sales, growing
a teamor navigating merger or acquisition
opportunities.
There are a lot of ‘lifestyle businesses’ inScotland,
whichnever growbeyond a minimal size. In2014,
the Federationof Small Businesses estimated that
94%of Scottishcompanies are classi?ed as
micro-enterprises withfewer than10 employees
11
.
In order for Scotland’s economy to grow, there
is a need for newand established businesses to
continue expanding, providing jobs and training for
newgraduates and established professionals.
There is also a need to encourage overseas
businesses to open UKof?ces in Scotland, which
requires Scotland to have the skills and talent base
to support these businesses.
Entrepreneurial Education in Scotland PAGE 12
10 For an example of such methodologies, see www.disciplinedentrepreneurship.com
11 ‘Voice of Small Business Member Survey – Scotland’, The Federation of Small Businesses (FSB), 2014, p4
Enterprise education, entrepreneurship education and skills for growth
Skills for growth training will be delivered through
a range of partners, at a range of levels, including
universities (particularly through their business
schools), enterprise agencies, other business
support bodies and networks, and private training
providers. Given the range of bodies involved in the
delivery of skills for growth training, coordination
is key and such training may be delivered under
the banner of a dedicated body, bringing together
expertise fromprivate, public and academic
sources.
2.2 Why entrepreneurial education
is important
Without an entrepreneurial heart in Scotland,
there can be no growth or wealth creation.
Wealth creation is not just down to individual
entrepreneurs; we need to acknowledge that there
is a broad range of people, in organisations of all
sizes, who must also be ‘intrapreneurial’ in order
to make the companies they work for successful.
Enterprise skills, including the ?exibility to
overcome unanticipated challenges and to move
successfully between jobs, or indeed careers, are
vital to the success and resilience of the local
workforce. They should be embedded in university
curricula and in wider Scottish society.
Venture creation may always remain of interest to
a smaller subset of students, but universities can
create the ecosystems within which those who do
have entrepreneurial inclinations can ?nd their
own pathways. A fully developed ecosystem
(Figure 2) can provide the full pathway of support
for entrepreneurship in Scotland, fromthe
creation of an entrepreneurial mind-set in
undergraduate students, right through to the
growth and expansion of Scottish businesses
into global markets.
Entrepreneurial Education in Scotland PAGE 13
Figure 2 Scotland’s entrepreneurial ecosystem.
Figure providedby Converge Challenge.
Enterprise education, entrepreneurship education and skills for growth
Entrepreneurial Education in Scotland PAGE 14
What docurrent students think?
Do you think Enterprise Education
is important, and if so, why?
‘I thinkEnterprise Educationis particularly important for those who have not decided
what their ideal career looks like, althoughI thinkthat basic entrepreneurshipshould
be taught to everyone to ensure that everyone is aware of this potential career option’
Third-year Business &Management student
‘Yes, the economy is changing fast andit is muchharder to get a job, regardless
of amazing quali?cations! I thinkit is very important students learnanddo more
to do withenterprise; learning important skills suchas promoting andmarketing,
networking, learning to speakinfront of people, andof course coming upwith
newideas to helpinthe future.’
Second-year Business HNDstudent
‘Yes – because a lot of business skills (?nance, planning, tax) I feel are the biggest
reasonfor computing science students not to consider enterprise as anoption.’
Fourth-year Computer Science student
‘This depends…if youmeanan“academicised” versionof entrepreneurship
education, thenI don’t thinkit will be that successful inattracting andcreating
more entrepreneurs. If enterprise educationmeans using a range of methods and
means to attract andsupport budding entrepreneurs thenit wouldbe important.
Because enterprise gives youskills andoptions.’
Second-year International Relations student
Entrepreneurial Education in Scotland PAGE 15
3 Entrepreneurial education: current
provision, challenges and opportunities
12 ‘Helping entrepreneurs ?ourish: rethinking the drivers of entrepreneurship’, Economist Intelligence Unit, 2014, p12
13 ‘Taking Pride in the Job’, Universities Scotland, 2013 p86
3.1 Enterpriseeducation
For the reasons set out in Sections 1 and 2, we
believe that the soft skills comprising enterprise
education should be embedded within the
undergraduate curriculum, where they can reach
the majority of the future workforce, and where
they can lay the foundations for those who want
to pursue future entrepreneurial careers.
3.1.1 Demandandprovision
The Economist Intelligence Unit’s 2014 report
Helping Entrepreneurs Flourish conducted two
global surveys of young people and entrepreneurs
that demonstrated the importance of enterprise
education and the role of universities to provide it
(see Figure 3
12
). The data shows that only a ?fth of
young people consider that the existing provision
of enterprise education is suf?cient within the
universities and nearly 80%agree that more
needs to be done.
There is clear evidence that enterprise education
is relevant to the undergraduate community in
Scottish HEIs fromacross the disciplines. Some
18%of graduates were self-employed after
?nishing at Scotland’s Rural College (SRUC). For
graduates fromthe Edinburgh College of Art and
GlasgowSchool of Art, the number is even higher
at 25%, reaching 45%for graduates of the Royal
Conservatoire of Scotland
13
.
However, at present in Scotland there is patchy
integration of enterprise education into the
undergraduate curriculum.
“Whiletherearehot-spotsof
entrepreneurial activity[inScottish
Universities], thesector isgenerally
characterisedasprovidingadisciplined
intensiveeducation, rather thana
stronglyentrepreneurial experience.”
REAPScotland report
49%
19%
78%
Figure 3 Provisionof enterprise educationwithinhigher education
Academic degree
importance for future
entrepreneurs
Goodprovisionof
enterprise skills by
universities
Universities needto
give more support for
future entrepreneurs
“Wedon’t haveanythinglikeenough
[provisioninHEIs]…universitiestend
tobemuchsiloed.”
Roundtable with university representatives
and entrepreneurs, 7 October 2014
“It’sdif?cult toidentifyanyuniversities
that arebeaconsof goodpracticeacross
theboard. Bitsandpiecesof different
universitiesaregood…but theyarenot
embracingthisacrossall faculties”.
Roundtable with governmental bodies,
29 October 2014
Entrepreneurial education: current provision, challenges and opportunities
Entrepreneurial Education in Scotland PAGE 16
What docurrent students think?
Is there suf?cient provision of Enterprise
Education in Scottish universities? Could you
name some examples? What is missing?
“WithinStrathclyde University, yes; however, speaking to individuals at other
universities highlights a lackof entrepreneurshipwithsome. Strathclyde has many
budding entrepreneurs who oftenpresent as guest speakers as well as having
facilities to promote enterprise education, suchas the Hunter Centre andEnterprise
Hub. The ease of access to the helpavailable is missing, as many students are not
aware of the services available to themwithinthe university.”
Third-year Entrepreneurship and Marketing student
“I thinkthat business students do have suf?cient exposure to enterprise classes;
however, I thinkthat entrepreneurshipneeds to be emphasisedmore to
non-business students.”
Third-year Business and Management student
“InSt Andrews, there is anEnterprise andcreativity module whichgives you
hands-onexperience of starting upa business. What is missing is a broader
interventiononwhy entrepreneurshipis a viable, if not more of a pathto future
success. Before we canprovide opportunities for people who are already interested
inentrepreneurshipto pursue it, there needs to be more effort to attract people
to the idea.”
Second-year International Relations student
“I thinkit needs to be sharedacross different course areas. There are business
societies andorganisations, but we needmore examples of people fromdifferent
backgrounds inbusiness.”
First-year Philosophy student
Entrepreneurial Education in Scotland PAGE 17
Entrepreneurial education: current provision, challenges and opportunities
It largely depends upon the course director to
weave the teaching of these skills into the course,
and there is a challenge for course organisers
as to whether, and how, they can ?t this type of
education into the curriculum. For some courses,
enterprise education is far more naturally
incorporated than for others. For example, courses
such as theoretical physics and mathematics are
far less likely to incorporate soft skills related to
project management, team-working and product
or systemdesign, than subjects like engineering,
which have strong practical elements. From
the Arts and Humanities, the creative arts
and journalismare good examples of subject
areas in which enterprise education is more
readily incorporated into the curriculum.
At postgraduate level, there are more
opportunities emerging for students to gain
enterprise education as part of their courses.
The majority of Centres for Doctoral Training
(CDT) in Scotland embed aspects of enterprise
education into their programs. The CDT in
Integrative Medicine has a stated theme of
‘enterprise’ running throughout its work, so that
any students coming through the Centre will
develop an awareness of enterprise culture.
However, the inclusion of enterprise education
is not a stated requirement for the establishment
of a CDT’
14
.
The Scottish Institute for Enterprise (SIE) provides
workshops focused on equipping students with the
soft skills described under enterprise education,
and has seen signi?cant growth in demand for
these classes. SIE are scaling up their programs
to meet this demand through providing advice,
training and resources to allowteaching staff to
deliver enterprise education sessions themselves.
Strathclyde’s Hunter Centre is actively
establishing links with other departments,
identifying enterprise champions fromamong
the lecturers and educating colleagues about
howenterprise education can add value to
students. This, and similar provision of enterprise
education, should be tracked over time, so that
its impacts can be measured and its added value
demonstrated.
“Thebiggest uptakeof enterprise
educationwehaveseencamefrom
STEMsubjects; engineerscouldreally
seethedirect bene?t totheir careers.
Thereisincreasinginterest from
journalismstudents, sincetheyare
likelytobecomefreelancersafter
theygraduate.”
Professor Eleanor Shaw, Head of the Hunter
Centre for Entrepreneurship
“Therearepocketsof goodpractice,
for exampleat Edinburgh, Strathclyde
andHeriot-Watt, but thisisnot across
theboard…Inengineering, accreditation
requiresthat thesesoft skillsarebeing
taught, sotheyarealreadypart of the
course. Thisisnot soinall subjects.
Experiencesthat exposestudentstorisk
andfailureandwhichbuildcon?dence
aremissing.
Roundtable with university representatives,
27 October 2014
14 For example, see EPSRCCentre Requirementshttp://www.epsrc.ac.uk/?les/funding...raining-invitation-to-submit-a-full-proposal/
Case Study: Encouraginganenterprisingstudent ecosystem
The Scottish Institute for Enterprise, funded by the Scottish Funding Council (SFC) and
Scottish Enterprise (SE), works across every HEI in Scotland, supporting staff by delivering
enterprise workshops and engaging students via co-curricular events, competitions and
business advisors.
In 2013/14, nearly 1000 students (undergraduate and postgraduate) entered SIE’s
national Enterprise Competitions, with over 250 winning students participating in
competition-related workshops to help themdevelop their ideas. They also won prizes
ranging from£20 to £10,000 (totalling over £110k). The students are able to progress
fromearly-stage ideas to advanced business plans and start-ups. Many continue on to
bene?t fromthe support of Converge Challenge, EDGE (Encouraging Dynamic Growth
Entrepreneurs) funding, RSE Enterprise Fellowships and access to incubators.
SIE’s 20 student interns run many local events in every HEI, working with the universities’
enterprise hubs and student societies. SIE staff delivered 120 workshops to over 4000
students and provided one-to-one business advice to around 300 students.
In order to extend the availability of enterprise and entrepreneurial education to all
students in Scotland, SIE are launching an e-learning platform, which will be a practical
interactive resource based on sound online learning principles.
Entrepreneurial education: current provision, challenges and opportunities
3.1.2 Barriers andlimitations
The challenge facing Scotland’s HEIs is in ensuring
that exposure to enterprise education can be
embedded into undergraduate education, instead
of being seen as an optional bolt-on.
If enterprise education is presented to students as
an abstract ‘business skills’ module, then there
is likely to be limited uptake. Universities must
ensure that the soft skills pertaining to enterprise
education are taught in a way that will have
relevance to the subject area of the student. The
focus of enterprise education should be on making
each student more employable in their chosen
?eld of study. The common consensus is that
introduction of a separate enterprise module
into every course is unlikely to yield the desired
outcome.
A further challenge for the Scottish HE sector is
that the large majority of teaching staff in Scottish
universities are academics; while only a handful
of undergraduate students will go on to pursue
academic careers. This means that there is
signi?cant variation in the appreciation of the need
for enterprise skills and industry awareness
amongst teaching staff, and in their ability to
provide these skills to students.
Further, it means that undergraduate students do
not have access to role models in their ?eld who
are employed in a business or entrepreneurial
environment, and who can share their experiences
of entrepreneurship and industry. The Economist
Intelligence Unit identi?es access to role models
and mentors as the most useful source of
inspiration and advice for those considering
starting up a business
15
. However, the Research
Excellence Framework (REF) currently acts as a
disincentive to Scottish, and UK, universities
employing teaching staff fromoutside academia.
Entrepreneurial Education in Scotland PAGE 18
15 ‘Helping entrepreneurs ?ourish: rethinking the drivers of entrepreneurship’, Economist Intelligence Unit, 2014, p10
Entrepreneurial education: current provision, challenges and opportunities
Compounding this ‘closed environment’ are
the limited links between some academic
departments and universities’ professional
services such as technology transfer of?ces,
careers services and development and alumni.
Such links have the potential to provide students
with exposure to people with a wide range of
experience and expertise of the business and
entrepreneurial worlds. However, there is little
consistency in engagement with such services,
both across and within Scottish HEIs.
Finally, a further challenge identi?ed in our
discussions has been that it is still uncommon
for undergraduate students to collaborate on an
interdisciplinary basis. Rather, the vast majority
of their work is done within their speci?c schools
and departments, with limited interdisciplinary
working. A key aspect of developing an
entrepreneurial mind-set is the ability to identify
weaknesses in one’s own skill set, and to build a
teamthat complements, rather than mirrors,
individual strengths and weaknesses. Current
undergraduate curriculums do not readily
encourage this, although the co-curriculum
does provide opportunity for interdisciplinary
collaborations.
3.1.3 Opportunities
Universities are uniquely placed to overcome
the barriers discussed above, to deliver
undergraduate courses that support the
development of soft enterprise skills, to tap
into their own vast networks of alumni and
professionals and to promote interdisciplinary
links.
If teaching staff are supported and encouraged
to develop their own enterprise awareness and
skills, the delivery of the core undergraduate
curriculumoffers signi?cant scope to provide
opportunities for students to develop their
enterprise awareness through the application
of subject-relevant skills. Setting tasks based
on the core subject content, but that challenge
students to be adaptable, to develop creative
solutions to problems, to pitch their ideas and to
consider the practicalities of implementation, will
contribute to a solid foundation in enterprise
education. Modes of course-work and assessment
based on ‘live’ projects with public, private or third
sector organisations and various challenge-based
tasks could be supported by a variety of
workshops on intellectual property, creativity
or communications, delivered by potential role
models.
The ?nal-year project or dissertation undertaken
by the vast majority of undergraduates provides
an opportunity to build on this foundation: a
chance for students to apply the knowledge
gained during their course to the design of a
system, process or product that could be used
in the ‘real world’. It would be bene?cial for
such tasks to involve a panel consisting of both
academic staff and practitioners, who would be
able to ask pertinent questions about the
application of the project to a real-life scenario.
Entrepreneurial Education in Scotland PAGE 19
“Thereisdif?cultyinpullingtogether
cross-disciplinaryteams, especially
at theundergraduatelevel…It isabout
encouragingstudentstothinkoutwith
their classmates. Thecurriculumdoesn’t
currentlyencouragethat but extracurricular
activitieslocatedwithinuniversitiesdo.”
Roundtable with university representatives
and entrepreneurs, 7 October 2014
Case Study: EngineeringDesignProjects, Heriot-Watt University
For the last ?ve years, Heriot-Watt University has been working with companies on
Mechanical Engineering Design Projects. Taking part in this initiative bears no cost to
the business and enables 4th-year students within the School of Engineering and
Physical Sciences to make a real difference to Scottish companies.
Through the links of Research and Enterprise Services, a number of companies are
selected each year with a real-life project for students to work on. It could be anything
fromdeveloping a completely novel prototype for a start-up to a process optimisation
project for a medium-sized established business.
Students work in teams of 4–5 not only to solve the technical challenges, but also look
at the costs and supply chain management. They develop skills including: working in a
team; time management; liaison with a client; presenting a business case for adoption
of the innovation by the company.
There are signi?cant bene?ts for both sides:
> Bene?ts fromenergetic and enthusiastic engineering students who provide fresh
perspectives, newideas and viewpoints.
> Academic expert supervisors and technicians to assist companies in their R&Dactivity.
> Bridging the gap between academics and industry through input into the education
process of future professionals and innovators.
> Companies gain an extra set of hands for special projects with clear remits
and de?ned outcomes.
> Evaluation of engineering students for the possibility of employment after graduation.
> Students gain practical real-world experience and learn newskills.
Entrepreneurial education: current provision, challenges and opportunities
Indeed, in the US it is common practice for
students to be taught some of their classes
by current practitioners in the ?eld, who teach
as part of their professional portfolio but who
are not academics. In light of the signi?cant
bene?ts of exposure to role models, such as
enhanced business awareness and aspiration,
this is a model that Scotland should seek to
emulate, even in an informal way. However,
acknowledging the barriers in the current UK
model that make it dif?cult for this type of
industry/HEI interaction, universities and
departments should at least make the most
of the opportunities offered by their networks
of professional services and alumni to provide
accessible role models for their students.
Entrepreneurial Education in Scotland PAGE 20
Case Study: Engaginguniversity alumni –Strathclyde100
Strathclyde 100 is a network of entrepreneurial alumni and business people who,
through a series of events, support emerging University of Strathclyde entrepreneurs.
Entrepreneurs and businesses pitch their ideas to the audience with a viewto securing
help with speci?c asks. Chaired by the University Principal, Professor Sir JimMcDonald,
Strathclyde 100 events have been running in Glasgowsince 2003 with impressive results:
> Introductions to CEODesignates, Directors and Board members.
> Mentoring relationships and advice fromindustry experts.
> Substantial grant funding and ?nancial investment secured.
> Introductions to a global network of contacts.
Case Study: SaltireScholarships
The Saltire Scholars Undergraduate Internship Programme gives undergraduate students
– with huge potential and ambition – the chance to experience the working environment of
highly successful ?rms or high-growth entrepreneurial companies at home and abroad.
The programme enables talented students to realise their potential through:
> Challenging work experience – increasing skill sets and commercial knowledge.
> Global perspective – 70%of placements are outside Scotland and those in Scotland
are with globally-minded companies.
> Increased leadership capacity – a Leadership Development Day and other events
during and beyond Scholars’ internships to increase their leadership capabilities.
> Superb networking opportunities – before, during and beyond the internship and
as a lifetime member of the Alumni Programme.
> Greater independence – working in a commercial environment and typically living
away fromhome.
> Increased ambition and con?dence – fuelled by their experience, network and peers.
> Giving back – Scholars give back their time and resource to their host communities,
Scotland and the Saltire Foundation
Entrepreneurial education: current provision, challenges and opportunities
Outwith the delivery of the core curriculum,
student societies and elective courses provide
an arena within which students can work in
interdisciplinary teams, manage projects and take
risks. Universities have a role to play in enabling
students to recognise howthe things they are
doing outwith the curriculumare relevant to
the development of an entrepreneurial mind-set,
and to support continued opportunities for
students to get involved.
Gaining experience outwith Scotland would also
be a strength for undergraduate students, and
opportunities for this type of global exposure
could be widened by building upon the work of
current initiatives such as the Saltire Scholarship
programme.
Entrepreneurial Education in Scotland PAGE 21
Case Study: FormulaStudent
Formula Student (FS) is Europe's most established educational motorsport competition, run
by the Institution of Mechanical Engineers. Backed by industry and high-pro?le engineers
such as Patron Ross Brawn OBE, the competition aims to inspire and develop enterprising
and innovative young engineers. Universities fromacross the globe are challenged to design
and build a single-seat racing car in order to compete in static and dynamic events, which
demonstrate their understanding and test the performance of the vehicle.
FS is:
> A high-performance engineering project that is extremely valued by universities
and usually forms part of a degree-level project.
> Viewed by the motorsport industry as the standard for engineering graduates to meet,
transitioning themfromuniversity to the workplace.
> The kite-mark for real-world engineering experience.
The format of the event provides an ideal opportunity for the students to demonstrate and
improve their capabilities to deliver a complex and integrated product in the demanding
environment of a motorsport competition.
In Scotland, the Universities of Aberdeen, Edinburgh, Edinburgh Napier, Glasgow,
Heriot-Watt, Strathclyde and others participate in the programme.
Entrepreneurial education: current provision, challenges and opportunities
3.2 Entrepreneurshipeducation
As indicated previously, entrepreneurship
education will be relevant primarily to those
undergraduate and postgraduate students who
have themselves identi?ed an interest in pursuing
an independent career (whether in academia or
industry) or in pursuing entrepreneurial interests,
either in the immediate or long term.
Universities have a clear role in creating a strong
entrepreneurial ecosystemthat will both stimulate
students to consider an entrepreneurial approach
to their future careers (for example through
exposure to role models and by delivering core
courses in such a way that they relate to the
realities of their respective industries); and provide
clear and accessible support for those who wish to
take up entrepreneurship education on an elective
basis.
However, the demand for entrepreneurship
education stemming fromthis ecosystemwill be
met not only by universities, which will support
initial stages, but also by national intermediaries
which go further in supporting students to develop
their ideas, entrepreneurial skills and networks.
3.2.1 Demandandprovision
Demand for entrepreneurship education is broadly
currently well-served in Scotland, with a wide
range of programmes supporting business
creation across Scottish universities and a good
ecosystemfor entrepreneurs at the national level.
There is an identi?able but ?exible pathway for
students who wish to pursue entrepreneurial
careers, beginning with training and mentoring
opportunities within universities, and progressing
to competitions and fellowships with national
intermediary organisations (see Figure 4).
Entrepreneurial Education in Scotland PAGE 22
Entrepreneurial education: current provision, challenges and opportunities
The pathway that currently exists provides
opportunities for students with different
backgrounds and experience to become
entrepreneurial. The Launch.ed initiative
within the University of Edinburgh, for example,
is available to any Edinburgh student, regardless
of their course. SIE supports and complements
individual university initiatives such as Launch.ed,
providing a national platformfor students.
Informatics Ventures, formed by Scottish
Enterprise and the Scottish Funding Council,
supports Scottish technology entrepreneurs from
any university and the business community.
The Converge Challenge provides a step on
the pathway for entrepreneurially minded
researchers, who have the same end-goal as
other entrepreneurs, but whose mechanisms
and clientele are often different. It is particularly
important that those frommore academic,
research-intensive backgrounds are provided
with the skills and the opportunities to become
entrepreneurial, because this is one of the surest
ways to translate Scotland’s strong academic
research into social and economic value.
Entrepreneurial Education in Scotland PAGE 23
Internal training:
Including:
SIEworkshops,
elective courses,
careers services,
mentorship,
Saltire scholars,
Interface,
Equate Scotland
Development
opportunities:
Including:
Converge
Challenge,
Enterprise
Fellowships,
Saltire
Fellowships,
SIEcompetitions,
Centres for
Doctoral Training
Further support:
Including:
Entrepreneurial
Scotland,
Scottish
Enterprise
Highlands &
Islands Enterprise
Figure 4 Entrepreneurship educationproviders inScotland
Case Study: LAUNCH.ed
LAUNCH.ed provides free startup advice and business support to students at the University
of Edinburgh interested in starting a business. The key services it provides are:
> One-to-one appointments with a business advisor.
> Workshops, bootcamps and competitions.
> Mentoring.
> Access to University of Edinburgh labs and facilities.
> Patent support and funding.
> Free legal and accountancy advice.
These services are free, con?dential and available to any Edinburgh student for the duration
of their studies, as well as alumni up to two years after graduation. To datel LAUNCH.ed has
supported more that 50 students to launch newcompanies, including Puffer?sh, which
has developed innovative spherical projection and display systems, and Peekabu Studios,
which creates cutting-edge recognition software. LAUNCH.ed’s services contribute to the
development of an entrepreneurial ecosystemaround the University of Edinburgh campus.
Case Study: RSEEnterpriseFellowships
RSE Enterprise Fellows receive training in entrepreneurial skills, as well as mentoring
and one year’s salary to support the growth of their business.
The initial phase of the application is a formoutlining the business idea and the applicant’s
entrepreneurial potential. The next phase involves presenting to a panel of RSE Fellows,
including entrepreneurs, industrialists, scientists and marketers.
Case Study: ConvergeChallenge
Converge Challenge is a business competition for academics, researchers and practitioners.
The competition occurs in three phases:
Phase 1: Submit an idea
Phase 2: Pitch the idea
Phase 3: Submit a Business Plan
The ?rst prize is £60,000 for the development of the business.
Winners also receive mentoring, networking opportunities and business support.
Entrepreneurial education: current provision, challenges and opportunities
3.2.2 Barriers andlimitations
The ability of students to take advantage of,
and be successful in, pursuing the existing
opportunities for entrepreneurship education
is still largely dependent upon howwell their
university is able to make themaware of, and
prepare themfor, these next steps. While many
universities in Scotland have developed strong
entrepreneurial cultures, this is not uniform
across all university departments, or across all
universities. Even those universities which have
a strong culture of creating and supporting
spin-outs, such as Aberdeen, Edinburgh, Dundee,
Strathclyde and Heriot-Watt, are not doing
this across all subject areas. The University of
Edinburgh has created a strong entrepreneurial
culture around its Informatics department,
for example, but this culture does not exist
across all the other STEMsubject areas.
Entrepreneurial Education in Scotland PAGE 24
“Thereislotsof goodsupport for eachstage
of thebusiness. For example, LAUNCH.ed
pushesyoutowardstheright people, the
right grantsetc. andthen, whenyougrow
beyondthat support, theRSEEnterprise
FellowshipandConvergeChallengekick
inandyouget morelinkstoindustry.
Thesearemorefocusedonactually
runningabusiness.”
RSEEnterprise Fellow
Entrepreneurial education: current provision, challenges and opportunities
At the level of entrepreneurship education, there
are lots of opportunities available for students and
academic researchers who are pro-actively
seeking them. However, it is important that the
pathway is well sign-posted, so that students know
which stepping stone is most appropriate to their
skill set, client base and development needs.
As opportunities are currently offered by many
different providers, it may be the case that
universities are not aware of all of them, and
may only promote one or two to their students.
As a result, candidates may miss the access routes
best suited to them. The current provision would
serve demand better, therefore, if it was more
joined up and clearly signposted.
3.2.3 Opportunities
There is an opportunity for Scottish universities
to look at the cultures which exist around their
different departments, and to examine the degree
to which these support the development of an
entrepreneurial ecosystem. There are many
excellent examples of best practice across
Scottish HEIs, a rich source of learning and
guidance for those seeking to strengthen their
own entrepreneurial ecosystems. In all cases,
enterprise education and entrepreneurial
mind-sets in students must be key pillars from
undergraduate to postgraduate levels.
There is also an opportunity for an umbrella
organisation, such as Entrepreneurial Scotland, to
work with current players within the ecosystemto
stimulate entrepreneurship education and training
in Scotland, and to provide clear signposting of
pathways and opportunities, to ensure these are
not missed by promising candidates. A signi?cant
?rst step in this direction has been the creation of
A Guide to Networking for Entrepreneurs by Young
Company Finance Scotland
16
.
3.3 Skills for growth
The delivery of skills for growth has relevance for
most business owners who have already set up
their own ventures and who are nowlooking to
growthese to reach larger markets. But, as
discussed in Section 2, the foundations for
successful growth must be laid at the earliest
possible stage of venture creation. In reality,
therefore, there is a strong link between
entrepreneurship education and skills for growth
training. In order to produce entrepreneurs with
growth ambitions, strong leadership ability and
skills for growth must be embedded in their
education fromthe outset. Much of this core
education may take place in universities, and in
particular within business schools.
At the next step, for existing business leaders who
require access to very speci?c skills for growth
training, the delivery of such training needs to take
place in a different setting fromenterprise and
entrepreneurship education. The delivery of these
skills needs to be about supporting business in
Scotland, not only businesses that have come
out of the universities.
Entrepreneurial Education in Scotland PAGE 25
“If wecould?ndawayinwhichevery
universitycouldexaminetheir entrepreneurial
ecosystems, theywouldall ?ndgaps.”
Roundtable with university representatives,
27 October 2014
“Thereisahugecultural element…it is
veryhardtogeneraliseacrossinstitutions;
eachhasitsownecosystem. Universities
shouldlookat their culturesanddevelop
entrepreneurial ecosystemswhichsupport
enterprisingbehaviours”
Roundtable with university representatives
and entrepreneurs, 7 October 2014
“Thereisalot of support out therefor
studentswhowant tostart their own
businesses, but alot of studentsaren’t
reallyawareof thesupport.”
Roundtable with university representatives
and entrepreneurs, 7 October 2014
16 A Guide to Networking for Entrepreneurs, Young Company Finance Scotland, November 2014,http://www.ycfscotland.co.uk/tabid/107/default.aspx?article=Guide+to+Networking+for+Entrepreneurs%201844
Entrepreneurial education: current provision, challenges and opportunities
3.3.1 Demandandprovision
Our discussions with academics and
practitioners fromthe ?elds of enterprise and
entrepreneurship, combined with existing data
and literature, (see Appendices Aand B), raise
the provision of skills for growth as an area
in which there is potential for signi?cant
development in Scotland.
The growth of Scotland’s innovative ventures
is crucial to realising the economic and social
bene?ts of an entrepreneurial culture and has
been a key priority for support agencies for
many years. Yet, as previously noted, some
94%of Scottish businesses have fewer than
ten employees, and indeed, some 68%are sole
proprietors/partnerships consisting of only the
owner/manager(s)
17
. Between 2002 and 2013,
high-aspiration entrepreneurs (i.e., those
with signi?cant growth ambitions) comprised,
on average, only 10%of newbusiness
owner-managers and 3%of established
owner-managers in Scotland
18
. In 2011/12,
44%of SME owner-managers in Scotland were
satis?ed with the current size of their organisation,
signi?cantly higher than the UK?gure of 33%
19
.
These ?gures suggest that there is a signi?cant
opportunity in Scotland to address lowlevels of
ambition in business owners and a culture of
entrepreneurship, combined with the availability of
high-quality training in key entrepreneurial skills,
will help address this.
The GEMScotland 2013 report demonstrates
that there is “a link between being innovative,
international and engaged in the entrepreneurial
community and being ambitious for one’s
business”
20
.
The private sector is relatively underdeveloped in
this area, with many providers delivering speci?c
skills training on certain aspects of growth, rather
than fostering the ambition, mind-set, con?dence
and leadership abilities that will stimulate
entrepreneurs to consider scaling up their venture.
Entrepreneurial Scotland has a strong role in
advocating skills for growth and fostering
networks of contacts, but it does not itself provide
training. Scotland’s universities are powerful
centres of knowledge and expertise for
entrepreneurship, but primarily serve people
who have come through the university system:
a small proportion of Scotland’s business leaders.
Entrepreneurial Education in Scotland PAGE 26
Enterprise
Education
UNI VERSI TY
UNI VERSI TY + Private
UNI VERSI TY + PRIVATE
Entrepreneurship
Education
Skills for Growth
Figure 5 Delivery of different type of entrepreneurial education
17http://www.gov.scot/Topics/Statistics/Browse/Business/Corporate/KeyFacts
18 ‘Global Entrepreneurship Monitor (GEM), Scotland 2013’, J Levie, University of Strathclyde Business School, 2014, p23
19 ‘Business Growth Ambitions Amongst SMEs’, TBRand Qa Research for BIS, Invest NI, Scottish Enterprise and the Welsh Government, 2012
20 ‘Global Entrepreneurship Monitor (GEM), Scotland 2013’, J Levie, University of Strathclyde Business School, 2014, p30
“Inthebeginning, I spoketoeveryoneI could;
but asyour project growsyou?ndthat support
agenciesetc. donot havetheskillstohelpyou
tothenext level. Theycan’t focusonyour
business.”
RSEEnterprise Fellow
Entrepreneurial education: current provision, challenges and opportunities
A newly-launched initiative, developed by
Highlands and Islands Enterprise, Scottish
Enterprise and the Scottish Funding Council,
drawing in expertise fromMIT and Harvard
Business School, is a welcome step forward in
?lling this gap. The SCALE programme is a
?ve-year international development programme
that will offer high impact, internationally-focused
training for both potential entrepreneurs and those
looking to scale up. The programme intends to
drawon the experience of Scottish entrepreneurs
and world-leading academics to support the
development of global skills and networks
21
.
We look forward to following the progress
of this initiative as it develop.
Two speci?c issues were highlighted to us
regarding the provision of skills for growth;
these were the need for sales skills amongst
entrepreneurs, and the need for training in
tackling international markets.
Entrepreneurs need to understand sales and to
develop sales skills in order to growand increase
their markets. However, there is no professional
ladder for the learning of sales skills in the UK,
although there is for almost every other type of
professional training, including accounting and
?nance. There is demand in Scotland for tailored
sales training, which represents an ef?cient use
of small business owners’ time. The US has a
much more developed sector for providing these
skills and conducting research into consumer
psychology to feed into the teaching of sales skills.
Business growth is also heavily dependent upon
the ability of businesses to reach international
markets. Internationalisation is identi?ed as a key
pillar of economic growth in both the Scottish
Government’s March 2015 Economic Strategy
22
,
and Scottish Enterprise’s 2015–2018 Business
Plan
23
.
Scottish Development International (SDI), the
international armof Scotland’s enterprise
agencies, offers support to Scottish SMEs wishing
to export, including the assistance of expert
advisers, support with market research, trade
missions and access to networks. The type and
extent of support available vary across businesses
of different sizes, in different sectors and with
different growth potential. Nevertheless, Scottish
SMEs are not exporting at the rates that might be
expected. According to a 2010 report by Bank of
Scotland Commercial, two-thirds of Scottish SMEs
are not exporting to international markets
24
.
A recent survey of SMEs in the UK, conducted
by KPMGand YouGov, reported 19%of SMEs
surveyed cite poor understanding of the legal
requirements for export as a major barrier to
reaching international markets. A further 17%
report not having a ‘contact organisation’ abroad
to advise and introduce them, with 16%reporting
a lack of understanding of international markets
as a challenge to accessing these export
opportunities
25
.
To these issues could be added the skills to
explore merger andacquisitionopportunities
as pathways to growth. A better understanding
amongst entrepreneurs of howto navigate and
present themselves for IP, product or business
partnership and acquisition opportunities may
result in an increase in the number of companies
of scale for Scotland, particularly in a sector such
as life sciences.
Entrepreneurial Education in Scotland PAGE 27
21 For more information about the initiative, see www.hie.co.uk/scale
22 ‘Scotland’s Economic Strategy’, Scottish Government, March 2015
23 ‘2015 – 2018 Business Plan: Building Scotland’s International Competitiveness’, Scottish Enterprise, 2015
24 As reported in the Caledonian Mercury, 2 June 2010,http://caledonianmercury.com/2010/06/02/two-thirds-of-scots-smes-miss-out-on-exports/00776
25 ‘An agenda for growth’, KPMGEnterprise in association with YouGov, 2014
“Scotlandistoosmall togrowacompany
without exporting. Theonlywayistoexpand
marketsoutsideScotland. If youlookat the
UK’sexport performance, comparedwiththe
US, thisissomethingwearepoor at.”
Roundtable with enterprise support
organisations, 25 November 2014
Entrepreneurial education: current provision, challenges and opportunities
3.3.2 Barriers andlimitations
The current ecosystemin Scotland is not
structured to provide the rigorous, high
quality entrepreneurial education that is
needed to stimulate growth ambition, the
?rst step in creating ventures with scale-up
potential. Scottish universities and business
schools are not routinely engaged in providing
fundamental skills for growth training;
i.e., that which returns to the fundamentals
of entrepreneurship education, to business
leaders who have not come through the
university system. Additionally, most business
schools in Scotland, like other university
departments, employ mainly academic staff
who do not have a background in industry or
practical entrepreneurship.
At an advanced stage, Scottish Enterprise
and Highlands and Islands Enterprise, tasked
with supporting a small number of potential
high-growth companies, currently source
this support fromelsewhere (e.g., the MIT
Entrepreneurship Development Programme),
but the costs involved inevitably mean that
opportunities are limited and, of course, such
programmes are not tailored to Scottish
markets. The newSCALE programme builds
on the relationships between the enterprise
agencies, MIT and Harvard Business School,
attempting to overcome these issues. It
demonstrates the potential impact of a
comprehensive programme of training and
support which crosses the boundaries between
fundamental entrepreneurship education
and skills for growth training, and which brings
together practitioners and academic expertise.
But Scottish universities do not yet consistently
take a similar central, high-pro?le role in
delivering such education to entrepreneurs
outwith the HE sector.
Entrepreneurial Education in Scotland PAGE 28
Networkingand
training:
Including:
Entrepreneurial
Scotland,
Hunter Centre,
Saltire Fellowship,
EDP, EIE, ECCI,
Edinburgh
Bioquarter
Incubators:
Including:
Alba, Hillington,
CodeBase,
HWUresearch
park, BioCity,
Dundee University
Incubator, The
Centre for Health
Science, Creative
Exchange Leith,
Elevate
Innovation
Support:
Including:
Interface
InnovateUK
Scottish
Enterprise, HIE,
SDI, UKTI,
Innovation
Centres
Figure 6 Support for HighGrowthCompanies inScotland. EDP= Entrepreneurship Development Programme; EIE= Engage Invest Exploit;
ECCI = EdinburghCentre for CarbonInnovation; HIE= Highland andIsland Enterprise; SDI = ScottishDevelopment International;
UKTI = UKTrade andInvestment.
Entrepreneurial education: current provision, challenges and opportunities
Even once the fundamental foundations for
growth are in place, time is a serious limitation
to SMEs participating in the additional speci?c
skills training required to growtheir businesses.
Those running businesses are unlikely to have the
time to commit to attending the types of skills
workshops and seminars that are appropriate at
university level, or for newentrepreneurs. This
means that the provision of skills training at this
level needs to be tailored to suit those with limited
time to spend away fromthe running of their
businesses, and will need to reach a newlevel
of relevance and speci?city. It also means that
information about the support and training that
is available must be easy to ?nd.
A further requirement of skills for growth
training at this level is that it be centred around
the entrepreneur, rather than focusing too
heavily on business models. A limitation to the
delivery of skills for growth training occurs when
support is focused too much on the business
model of a company, rather than on the individuals
running it. The success of a business depends
to a large degree upon the individuals involved,
and their abilities to adapt, improve and progress.
Better support of leadership teams in SMEs is
needed. A well-supported entrepreneur could
create several businesses or innovations during
their lifetime, so nurturing the individual is
essential.
Entrepreneurial Education in Scotland PAGE 29
Case Study: EntrepreneurshipDevelopment Programme
Highlands and Islands Enterprise (HIE) and Scottish Enterprise (SE) support the most
ambitious businesses with high growth potential fromacross Scotland to participate in
the Entrepreneurship Development Program(EDP) course at the MIT Sloan School of
Management in Boston.
The MIT Entrepreneurship Development Programme is a week-long, high-level, intensive
executive education course teaching skills for high-impact entrepreneurship. It is held onsite
at the Massachusetts Institute of Technology (MIT) in Boston in January each year.
EDPis a globally-renowned course which blends cutting-edge academic learning with
practical teamwork exercises, live investment pitching, best-practice company visits and
international networking. The ?ve-day course takes participants through the entire Innovation
Based Enterprise (IBE) venture creation, growth, investment and exit process, teaching core
skills of entrepreneurship and the latest thinking in this space. The concepts are taught
through lectures, workshops and keynotes fromhigh-pro?le entrepreneurs, then participants
are encouraged to apply the learnings immediately in simulated exercises which test their
thinking. The course introduces participants to MIT’s vibrant entrepreneurial culture,
world-class commercialisation and technology transfer systemand connects participants
to a global entrepreneurial network. Participants learn howto break down the elements of
successful business growth into a step-by-step process and howthis formula for success
can be applied to their own business or organisation.
“Businesspeopleareshort of time. Theydon’t
want togotouniversity-styleclasses. They
needtofeel asthoughtheyarealsoworking
ontheir businesswhilst theyarereceivingthe
training. It hastobeveryrelevant.”
Roundtable with enterprise support
organisations, 25 November 2014
Entrepreneurial education: current provision, challenges and opportunities
3.3.3 Opportunities
Scottish Enterprise, in its Business Plan
2015–2018, recognises that meeting Scotland’s
ambitions for an innovative economy will require
a transformation shift, with the “need to adapt a
more radical and ?exible approach to supporting
sectors and companies…seeking newdelivery
models alongside others like Business Gateway,
to engage more companies and generate much
greater impact fromthat support”
26
.
We have identi?ed a gap in Scotland’s
entrepreneurial ecosystemfor supporting
Scotland’s business leaders to develop growth
ambitions, and ensuring that they have an
excellent grounding in the fundamentals of
entrepreneurship fromwhich their business
can grow. If universities were to step into this
gap, particularly by diversifying the experience
of their teaching staff and designing ?exible
programmes suitable for existing business leaders,
they would potentially have the power to create
real transformation across Scotland’s
entrepreneurial culture. With their extensive
knowledge bank, far-reaching alumni networks
and recognised excellence at international level,
universities are in a powerful position to foster
ambition and an international mind-set amongst
Scotland’s entrepreneurs, and to support themto
realise these ambitions. Where universities have
taken such a role (not only in Boston, but also, for
example, Aalto University in Helsinki), they are
already at the heart of ?ourishing entrepreneurial
cultures.
Of course, universities could not take on this role in
isolation. Scotland’s enterprise agencies will have
an important role in liaising between the business
community and universities (and other training
providers). They are in a strong position to advise
on the needs of business leaders, ensuring that
the training offered is rigorous, appropriate and
accessible. Private agencies will continue to be
key providers of skills for growth training in areas
where they have developed recognised expertise
and excellence; e.g., sales training, raising equity
investment, dealing with mergers and acquisitions
or in governance issues. In addition, they are in a
strong position to tailor support to individuals and
businesses, bringing a degree of ?exibility and
relevance that will be vital to potential high-growth
ventures.
Indeed, the authors of a 2014 Nesta Working Paper
on support for high growth ?rms suggested that
such ?rms required “more ?exible, responsive and
relational support, where peer to peer support and
specialised advice (e.g., support for management
buy-outs or acquisition of another company) are
prioritised”
27
.
As SMEowners are resource- and time-
constrained, the creation of a single source of
information about where they can get skills for
growth training and broader support would be
extremely useful. There are numerous courses
run by private and public organisations aimed at
delivering business skills, but it is not clear that
they are all appropriate or relevant to SMEs with
speci?c growth interests. It would be useful for
a reviewof such courses to be carried out and a
central point of information about what is
available to be created.
Auseful way to arrange information on the
support available would be to set out priority
themes, including sales skills, access to
international markets and mergers and
acquisitions, and to provide links to resources
and organisations providing information and
support around those themes. More courses
tailored to meet the needs of speci?c SMEs,
delivered on-site and addressing speci?c issues
within the business, are likely to be needed
to meet demand.
Entrepreneurial Education in Scotland PAGE 30
26 2015 – 2018 Business Plan, Scottish Enterprise, 2015, p6
27 ‘Increasing the Vital 6 Percent: designing effective public policy to support high growth ?rms’, RBrown, CMason, S Mawson, Nesta, 2014.
Entrepreneurial education: current provision, challenges and opportunities
There is a further opportunity for a national body
to develop networks between SMEs in Scotland
so that they can support one another in a
non-competitive environment. This may, for
example, build on the work of Interface, which
connects Scottish businesses and researchers
in certain industries with the aimof creating a
culture of innovation and collaboration
28
.
Some businesses will have collective ambitions,
such as reaching a global market with a local
product. If trusting relationships can be facilitated
between them, they will have a greater opportunity
to achieve their ambitions through collective
energies than alone.
As the export market represents a signi?cant
growth opportunity for SMEs, and as the Scottish
Government has set a target to increase the value
of Scottish exports by 50%by 2017, a global
outlook could also be supported through the
development of international networks for SMEs
and entrepreneurs. This type of network could be
grown out of communities such as GlobalScot and
Entrepreneurial Scotland.
Entrepreneurial Education in Scotland PAGE 31
28 For more information, seehttp://www.interface-online.org.uk/
“Entrepreneurial Scotlandcouldhelptobuild
andsignpost networks…Thereneedstobea
placewherebusinesseslookandcaninstantly
seetheroadmapfor wheretheygofor each
stageof support.”
Roundtable with enterprise support
organisations, 25 November 2014
Case Study: ScottishRapeseedOil
Scottish Rapeseed Oil, or Scottish Gold as it nowknown, is a group of eight independent
Scottish producers of cold-pressed rapeseed oil. Collectively they have created a vision
to growand expand the Scottish rapeseed oil market.
Interface Food &Drink and Scotland Food &Drink approached the companies to explore
the creation of a common interest group in which the producers could work together with
academia to identify and respond to any industry-wide challenges and opportunities.
Aims of the Group
> Develop market insight into the size of the market and track the performance of other
brands (both Scottish and non).
> Joint development of products and/or marketing to the mutual commercial bene?t
of participants.
> Encourage collaborative research projects with academia to improve competitiveness.
> Improve communication between industry and academia, giving industry the opportunity
to steer research.
Having launched at the Royal Highland Show2014, the group will work to continue to grow
and contribute greater value to the overall Scottish food and drink industry and drive
increased sales for all eight producers involved in Scottish Rapeseed Oil.
4 Emerging recommendations
The literature reviewand roundtable discussions
that have informed this paper have identi?ed a
number of issues in the current delivery of
entrepreneurial education. If Scotland is to
become a truly world-leading entrepreneurial
nation, further signi?cant and co-ordinated efforts
must be made to embed an entrepreneurial
mind-set in our students and graduates of today.
A number of opportunities have been presented in
the course of this paper, and we call on all actors
in the Scottish entrepreneurial ecosystemto
consider the next steps in grasping these
opportunities and strengthening Scotland’s
entrepreneurial culture.
4.1 For theScottishFundingCouncil
andResearchCouncils
We suggest that:
4.1.1
SFCuses the levers it holds to encourage the
formation of an Entrepreneurship Education
Forum, consisting of high-level representatives
of academic institutions, private and public
organisations and industry practitioners, tasked
with developing practical ways of enhancing
entrepreneurial education across Scotland.
This Forummay most appropriately be led by a
national body such as Entrepreneurial Scotland,
but strong endorsement by Scottish Ministers
and the support of the SFCwould be essential.
4.1.2
SFCencourages allocation of some of the funding
available through Knowledge Transfer Grants
to establishing entrepreneurial networks and
funding an Entrepreneurial Champion (Head of
Enterprise and Entrepreneurial Strategy) for
each institution.
4.1.3
SFCand Research Councils use Outcome
Agreements, criteria and conditions of grant to
encourage every university to develop a dedicated,
bespoke Entrepreneurial Strategy which takes
into account the speci?cs of teaching, research
and knowledge exchange strategies of each
institution. These strategies would embed
enterprise education into the core curriculum
and encourage stronger links with industry.
4.1.3
Funding and Research Councils recognise the
value of non-academic staff and industry experts
in delivering aspects of skills training and
employability skills, providing students with
exposure to a wider range of perspectives and
experiences relevant to their subject area.
Criteria should enable and encourage universities
to employ experts fromoutside academia.
This could be done by adding to ‘impact’
measurements on the diversity of staff.
4.2 For universities
We recommend that:
4.2.1
Universities support all academic staff to
understand what entrepreneurial education is and
its importance, and to develop their capacity to
introduce enterprise skills into the curriculum.
This will require a multi-level approach targeted
at different parts of complex university structures:
a) High-level endorsement fromthe Principal’s
of?ce, particularly involving the Deputy or
Vice Principals for Learning and Teaching
and for Research and Knowledge Exchange.
b) The establishment of enterprise champions
within each academic department to enable
the penetration of an entrepreneurial
mind-set. Champions may be identi?ed
fromamong participants of the Scottish
Crucible, members of the Young Academy
of Scotland or those who have experience
of business creation or industry. A key role
of enterprise champions would be to support
teaching staff to develop their capacity to
incorporate enterprise skills into the core
curriculum.
c) Entrepreneurship education providers
within each university (business schools,
entrepreneurship centres, technology
transfer of?ces, careers advisers, etc.)
provide workshops on the importance of
enterprise education to support champions,
participants of programmes such as Scottish
Crucible and staff.
Entrepreneurial Education in Scotland PAGE 32
Emerging recommendations
d) Business schools within each university
encouraged to consider becoming part
of the Small Business Charter
29
: an award
scheme designed to recognise business
schools with exceptional levels of engagement
with small businesses. This would enable initial
evaluation of the business schools’
engagement in supporting the growth of
small ?rms, engaging other stakeholders
in the growth agenda and providing their
students with relevant start-up support.
4.2.2
Universities build enterprise education into the
undergraduate curriculum, ensuring that all
students have suf?cient exposure to enterprise
skills and opportunities to practice such skills in
the context of their own subject area.
a) All undergraduate students have increased
opportunities within their respective courses
to access and practise basic employability
and enterprise skills, including identi?cation
of opportunities, creative problemsolving,
teamwork and pitch training.
b) Employability and enterprise skills training is
delivered by a wide range of role models from
among the alumni and business contacts of the
universities. This would serve the additional
purpose of bringing together different
professional services and academic
departments of a university.
c) Students are assisted to recognise the value
of the experience and skills they gain through
their activities in the co-curriculum, including
interdisciplinary learning, decision making,
teambuilding etc. The university’s careers
service could provide support by producing
resources and presentations that highlight the
skills sought by employers and examples of
howthese skills might be demonstrated within
the co-curriculum.
d) Final-year projects, where possible, provide
an opportunity for the application of
subject-relevant skills, challenging students
to apply their knowledge and understanding
to real-life problems. Demonstrating such
ability would make graduates vastly more
employable.
4.2.3
Universities create opportunities for
entrepreneurship and innovation and support
students at both under- and postgraduate levels
to develop their innovative ideas.
a) Universities facilitate or run elective courses
and one-off workshops on entrepreneurship
for interested students fromany academic
department. These may be delivered by
external agencies jointly with university staff.
b) Delivery of wider entrepreneurship training to
students across the university should be done
in collaboration between departments,
business schools, careers, alumni and
technology transfer services.
c) Enterprise societies created within each
university would help to engage the student
population. These societies could be linked to
the post of Entrepreneurial Champion, thus
providing continuity through changes of student
members.
4.2.4
Universities utilise experts fromindustry
to teach modules and engage with students,
providing access to role models who can
demonstrate routes to success and provide
inspiration.
a) Scotland should seek to replicate, even in an
informal way, the best parts of the US model
that provides a greater role for non-academic
staff. Practitioners may be invited to be involved
in mentoring students, marking project work or
delivering workshops and classes.
Entrepreneurial Education in Scotland PAGE 33
29 For more information seehttp://smallbusinesscharter.org/
Emerging recommendations
4.2.5
Universities develop a consistent entrepreneurial
ecosystemwith links outside the institution,
providing routes and pathways into industry that
will enable students to ?nd support to develop
their ideas and contacts.
a) Universities undertake a reviewof the cultures
that exist across different departments and
examine the degree to which these support the
development of an entrepreneurial ecosystem.
Best practice should be identi?ed and shared.
b) All departments supported to build links with
industry and external agencies, and to signpost
opportunities and experiences outside the
university to students on their courses.
c) Academic departments build closer working
relationships with business schools and
professional services within the university.
An entrepreneurial network with
representatives fromtechnology transfer
of?ces, incubators, careers and development
and alumni, as well as representatives from
learning and teaching boards and student
associations, could be an example of best
practice.
4.2.6
4.2.6 Universities, particularly through their
business schools, consider howthey can most
effectively play a role in providing Scotland’s
existing business leaders with high-quality
entrepreneurship education that fosters
world-class leadership capacity, growth
ambitions and creates strong foundations
for growth.
4.3 For enterpriseagencies
andbusiness support bodies
We suggest that:
4.3.1
Anational body, such as Entrepreneurial
Scotland, leads the creation and coordination
of an Entrepreneurship Education Forum(as
recommended in Section 4.1) to facilitate a
coordinated approach to entrepreneurship
education and skills for growth training.
a) That the Entrepreneurship Education Forum
consists of representatives fromacademic
institutions as well as enterprise agencies,
private business support agencies and industry
practitioners.
b) That this Forumtakes on responsibility for
coordinating entrepreneurship education and
skills for growth training to avoid confusion for
those seeking support. This will include
ensuring that pathways fromuniversity into
industry are well signposted and that agencies
are collaborating to deliver appropriate support
while avoiding duplication. Clear signposting to
support under key priority themes (e.g., sales
skills support, international growth) would be
useful.
4.3.2
Enterprise agencies work in partnership with
universities and private providers to deliver
targeted ‘skills for growth’ training for Scottish
businesses, assisting business leaders to develop
the skills and networks required for scaling up.
This may require that:
a) Enterprise agencies work closely with
universities to develop courses and executive
education programmes (such as those run by
MIT, Harvard and Babson College) suited to
Scottish SMEs, which can be delivered in a
business setting and made relevant. Sales
skills and accessing international markets
should be priority areas.
b) Enterprise agencies coordinate skills for
growth training delivered by universities,
drawing on private providers with speci?c
expertise to supplement and add value to
training programmes.
c) A national body coordinates and develops
networks between SMEs so that they can
support one another in a non-competitive
environment. Additionally, international
networks of SMEs would ease access to
global markets.
Entrepreneurial Education in Scotland PAGE 34
Entrepreneurial Education in Scotland PAGE 35
Appendix A:
Organisations represented at roundtables
The RSE would like to convey its thanks to the following organisations
and their representatives who took part in discussions that informed this report.
Entrepreneurial Scotland
Heriot-Watt University
The Hunter Centre for Entrepreneurship, University of Strathclyde
Interface Knowledge Connection
The Royal Society of EdinburghEnterprise FellowshipProgramme
The Saltire Foundation
ScottishEnterprise
The ScottishFunding Council
The ScottishInstitute for Enterprise
The University of Edinburgh
The University of EdinburghBusiness School
The University of EdinburghInformatics Forum
The University of EdinburghSchool of Engineering
The University of Strathclyde
The RSEwouldalso like to thankthe Saltire Fellows andScholars
andthe ScottishInstitute for Enterprise interns who provided their views
andexperiences by completing questionnaires.
Entrepreneurial Education in Scotland PAGE 36
Appendix B:
Organisations Represented at Roundtables
This paper has drawn upon the ?ndings of existing reports on entrepreneurship in Scotland and the UK,
including, but not limited to:
‘Scotland CANDO: Becoming a World-leading Entrepreneurial and Innovative Nation’,
Scottish Government, November 2013, available athttp://www.gov.scot/Publications/2013/11/7675
‘Increasing Innovation-Driven Entrepreneurship in Scotland’, The Regional Entrepreneurship Acceleration
Programme (REAP) report, REAPScotland Team, 2014, available athttp://www.hie.co.uk/business-support/entrepreneurship/mit-reap/
‘Taking Pride in the Job’, Universities Scotland, 2013, available athttp://www.universities-scotland.ac.uk/uploads/TakingPrideintheJobApril13.pdf
‘Entrepreneurial Impact: the role of MIT’, Edward BRoberts and Charles Eesley,
MIT Sloan School of Management, 2009, available athttp://www.kauffman.org/what-we-do/research/2009/08/entrepreneurial-impact-the-role-of-mit
‘Enterprise and Entrepreneurship Education: guidance for UKHigher Education providers’, QAA, 2012,
available athttp://www.qaa.ac.uk/en/Publications/Documents/enterprise-entrepreneurship-guidance.pdf
‘Voice of Small Business Member Survey – Scotland’, The Federation of Small Businesses (FSB), 2014,
available athttp://www.fsb.org.uk/member-survey-2014
‘An Agenda for Growth’, KPMGEnterprise in association with YouGov, 2014, available athttp://kpmg-22971.dev.iasprojects.com/knowledge-centre/report/an-agenda-for-growth/
‘Enterprise for All’, Lord Young for the Department of Business, Skills and Innovation, 2014, available athttps://www.gov.uk/government/publi...-all-the-relevance-of-enterprise-in-education
‘2015 – 2018 Business Plan: Building Scotland’s International Competitiveness’, Scottish Enterprise, 2015,
available athttp://www.scottish-enterprise.com/about-us/what-we-do/business-plan
‘Scotland’s Economic Strategy’, Scottish Government, March 2015, available athttp://www.gov.scot/Publications/2015/03/5984
‘Increasing the Vital 6 Percent: designing effective public policy to support high growth ?rms’,
RBrown, CMason, S Mawson, Nesta, 2014, available athttps://www.nesta.org.uk/sites/default/?les/working_paper_-_increasing_the_vital_6_percent.pdf
‘Global Entrepreneurship Monitor (GEM), Scotland 2013’, J Levie, University of Strathclyde Business School, 2014,
available athttps://www.strath.ac.uk/huntercentre/research/gem/
‘Business Growth Ambitions Amongst SMEs’, TBRand Qa Research for BIS, Invest NI,
Scottish Enterprise and the Welsh Government, 2012, available athttps://www.gov.uk/government/uploa...69-business-growth-ambitions-amongst-smes.pdf
Entrepreneurial Education in Scotland PAGE 37
Additional Information
Any enquiries about this DiscussionPaper shouldbe addressedto
SusanLennox, RSESenior Policy Of?cer, [email protected].
All RSE policy papers are published on the website www.royalsoced.org.uk.
Advice Paper (Royal Society of Edinburgh) ISSN2040–2694
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doc_757031103.pdf
This brief criteria pertaining to entrepreneurial education in scotland.
Entrepreneurial
Education
inScotland
ARoyal Society of Edinburghdiscussionpaper
AdvicePaper 15-09June2015
Contents
Foreword page 3
Executive Summary page 4
1 Introduction page 6
1.1 About this report page 6
1.2 Background and context page 6
1.3 A focus on the role of universities page 7
1.4 The roles of the Scottish Funding Council and Research Councils page 8
1.5 The roles of enterprise agencies and business support bodies page 9
2 Enterprise education, entrepreneurship education and skills for growth page 11
2.1 De?nitions and explanations page 11
2.2 Why entrepreneurial education is important page 13
3 Entrepreneurial education: current provision, challenges and opportunities page 15
3.1 Enterprise education page 15
3.2 Entrepreneurship education page 22
3.3 Skills for growth page 25
4 Emerging recommendations page 32
4.1 For the Scottish Funding Council and Research Councils page 32
4.2 For universities page 32
4.3 For enterprise agencies and business support bodies page 34
Appendix A: Organisations represented at roundtables page 35
Appendix B: References and literature review page 36
Additional Information page 37
Foreword
The Scottish Government has set out an ambitious vision for Scotland to become a ‘world-leading
entrepreneurial and innovative nation’. Such ambition is to be welcomed; indeed, it is necessary as
Scotland – like many of its global neighbours – continues to steer its way out of turbulent times.
Scotland’s economy must be driven by a skilled, ambitious and creative workforce if it is to achieve
truly sustainable growth and be able to rise to societal challenges on the horizon.
But much must be done to close the current gap between Scotland’s ambition and its reality
The rate of newbusiness creation in Scotland has increased in recent years, but it continues to
lag behind that of the UK, and even further behind the entrepreneurial front-runners it seeks to
emulate. Levels of commercialisation of the world-class research carried out within our
universities equally remain stubbornly low. We face a sizeable task.
An entrepreneurial culture requires a number of building blocks: strong support networks; a
ready supply of creation and growth ?nance; simple start-up procedures. But ?rst and foremost
it needs people with the ambition, vision, creativity, commitment and leadership ability to drive
venture creation and growth on a scale that will contribute to sustainable economic growth.
Scotland’s universities have a central role to play in supporting today’s young people to develop
not only the skills but also the mind-set needed to fuel, and to realise, entrepreneurial ambitions.
For this reason, the Business Innovation Forumof the Royal Society of Edinburgh set up a Working
Group to consider entrepreneurial education in Scotland, with an emphasis on the role of
universities. Ably led by Dr Olga Kozlova, who has many years of experience of entrepreneurship
development, most recently as Director of the prestigious Converge Challenge, the group met with
a number of key stakeholders fromthe Scottish education and entrepreneurial ecosystems to
start a discussion on the challenges and opportunities of the current system.
This paper sets out the picture that has emerged fromthose discussions. It ?nds that progress
has been made in embedding enterprise and entrepreneurship into higher education, but that
powerful opportunities remain for universities, working closely with enterprise support agencies
and others in the entrepreneurial ecosystem, to step up support for both potential and existing
business leaders.
We hope that this paper acts as a stimulus for further discussion and action by all stakeholders
that will support a fundamental culture shift in Scotland: one that prepares our young people
not just for life as an employee, but for a vibrant and fast-moving business landscape in which
opportunities are to be grasped and ambitions realised.
Finally, I would like to thank Olga and the members of the Working Group – Donna Chisholm,
Elizabeth Fairley and Fiona Godsman – for contributing their considerable expertise, experience
and time to this project.
IanRitchie CBEFREng FRSE
RSEVice-President for Business andChair, RSEBusiness InnovationForum
Entrepreneurial Education in Scotland PAGE 3
Executive Summary
The Scottish Government’s ambition is
for Scotland to become a world-leading
entrepreneurial nation. Scottish universities
have a pivotal role to play in achieving this
ambition, along with public and private
business support agencies, industry and
a range of other actors.
The Business Innovation Forumof the Royal
Society of Edinburgh (RSE) has produced this
discussion paper to provide an overviewof
entrepreneurial education: the skills and
experiences that will support Scotland’s students
of today to become an innovative and dynamic
workforce of the future; and howthese are
currently delivered. Focusing on the role of
universities, but with consideration also of the
wider entrepreneurial ecosystem, this paper sets
out emerging recommendations and points to be
considered to ensure Scotland-wide access to all
three levels of entrepreneurial skills training:
> Enterprise education (basic business
awareness and soft employability skills);
> Entrepreneurship education (applying these
skills to the creation of a newventure); and
> Skills for growth (scaling up an existing
venture).
It became clear fromour discussions that a
comprehensive, joined-up approach to the delivery
of entrepreneurship education is key to ensuring
consistency and quality. We therefore recommend
the creation of anEntrepreneurshipEducation
Forumwhich would bring together high-level
representatives of academic institutions, private
and public business support organisations and
industry practitioners, to oversee a comprehensive
programme for the delivery of entrepreneurial
education in Scotland. This Forummay most
appropriately be led and coordinated by a national
body such as Entrepreneurial Scotland, but it
would require strong endorsement fromthe
Scottish Government and the support of the
Scottish Funding Council to be effective.
There has been improvement in the delivery of
enterprise educationwithin Scottish Higher
Education Institutions over recent years, with
good practice developed across a wide range of
universities. However, provision is still patchy, both
within and between institutions, and there are
insuf?cient links between academic departments,
business schools and professional services such
as careers advisors, technology transfer of?ces,
alumni networks and student unions. An additional
challenge is the limited exposure of students
within Scottish universities to role models from
outwith academia.
In order to enhance the delivery of enterprise
education across Scottish universities, a concerted
effort should be made to support all academic staff
to understand its relevance and importance, and to
develop their capacity to introduce enterprise skills
into the curriculum. This may require:
> Strong and consistent endorsement from
senior management within universities;
> The development of a dedicated
Entrepreneurial Strategy by each institution;
> The allocation of funding available through
Knowledge Transfer Grants towards the
employment of Enterprise Champions;
> The use of metrics within Scottish Funding
Council Outcome Agreements to encourage
institutions to embed enterprise education
across all departments.
> Improved use of role models through the
engagement of non-academic lecturers and/or
the university’s professional services and
alumni networks.
The provision of entrepreneurshipeducation in
Scotland, supporting those who want to create a
newventure, is broadly satisfactory. There are both
internal university-based support mechanisms
such as Launch.Ed and Enterprise Gym, as well as
well-established pan-Scotland initiatives such as
the Converge Challenge, RSE Enterprise
Fellowships, the Scottish Institute for Enterprise
and the newly launched Enterprise Campus
initiative. However, given the wide range of
providers, there is a need for coordination and
awareness-raising of the support available.
Entrepreneurial Education in Scotland PAGE 4
Executive Summary
This may be achieved through:
> Improved coordination of activities between key
stakeholders and support agencies, by a
national umbrella organisation but with active
involvement of universities.
> A reviewby universities of the entrepreneurial
ecosystems that exist across their departments
to ensure that best practice is identi?ed and
shared and that students with entrepreneurial
inclinations are supported to progress their
ideas.
The scaling up of established ventures is
imperative to sustainable economic growth in
Scotland. However, at present some 94%of
businesses in Scotland have fewer than ten
employees. There is a gap in Scotland for
supporting existing business leaders to develop
growth ambitions by ensuring that they have an
excellent grounding in the fundamentals of
entrepreneurship fromwhich their business can
grow. While this overlaps with entrepreneurship
education, skills for growth, including world-class
leadership capacity, must be embedded at the
earliest stage of learning, and universities have
a powerful potential to step into this role.
Enterprise agencies will be central to supporting
the development of programmes suitable for
Scottish businesses and in ensuring that
businesses can access support. Private sector
training providers will continue to be an important
part of the ecosystemby adding value through
their expertise on speci?c skills for growth
and the ?exibility they can offer in the design
of training.
There is a varied and vibrant support landscape
in Scotland, with a wide range of agencies,
incubators and initiatives working to promote
business growth. However, there is clearly
signi?cant potential to spur growth among a
larger proportion of SMEs and to address
particular gaps around the provision of key growth
skills such as sales and international trade.
Universities, enterprise agencies and other
actors in the skills and support ecosystem
should continue to rise to this challenge,
by giving consideration to:
> the development of courses and executive
education programmes (such as those run by
MIT and Babson College in the US) suited to
Scottish SMEs, which can be delivered in a
business setting and made relevant to speci?c
businesses.
> howskills for growth training can most
effectively be delivered by business schools,
drawing on speci?c expertise available from
other public and private providers.
> national coordination and development of
networks between SMEs so that they can
support one another in a non-competitive
environment.
Entrepreneurial Education in Scotland PAGE 5
1 Introduction
The ‘Scotland Can Do’ agenda
1
, launched by
the Scottish Government in late 2013, sets
out an ambition for Scotland to become a
world-leading entrepreneurial nation. Realising
such an ambition, however, will largely depend
on equipping Scotland’s young people with the
mind-set and skills that will enable themto
take an entrepreneurial approach to their
future careers.
The Business Innovation Forumof the Royal
Society of Edinburgh has therefore taken a
timely look at whether and howentrepreneurial
education is currently embedded across Scotland.
A key focus of this reviewhas been the role of
Scottish Higher Education Institutions (HEIs) in
producing graduates with these skills and
mind-set. The emerging recommendations
set out in this paper are primarily directed
at the HE sector. However, the conversion of
entrepreneurial potential into real economic and
social bene?t for Scotland inevitably demands
effective partnership across the business support
ecosystem. This paper, therefore, also makes
some comment on the roles of other actors in
this ecosystemand highlights a number of
potential actions that would support Scotland
to achieve its entrepreneurial ambition.
1.1 About this report
This report is based on a number of roundtables
and interviews with key stakeholders from
the Scottish education and entrepreneurial
ecosystems (Appendix A), complemented by a
reviewof existing relevant literature (Appendix B).
It considers three ‘levels’ of entrepreneurial
education– basic enterprise skills, entrepreneurship
education and skills for growth – and comments
on the current provision, gaps and opportunities
for each. Looking to the future, it considers:
1 Howprovisions for enterprise education could
be expanded much more widely across the
spectrumof undergraduate courses.
2 Howdifferent stakeholders within the
entrepreneurial ecosystemcan improve
entrepreneurship education for interested
undergraduate and postgraduate students.
3 HowSMEs with high growth potential could
be provided with the necessary executive
education and training to develop key skills
for growth.
This report will be of interest to Scottish
universities, the Scottish Funding Council,
Research Councils, the Scottish Government,
Scottish enterprise agencies and business support
organisations, and to pro?t and not-for-pro?t
organisations within the entrepreneurial
ecosystemin Scotland.
1.2 Backgroundandcontext
A recent REAP(Regional Entrepreneurship
Acceleration Programme) Scotland report
2
examined the environment inwhichentrepreneurs
in Scotland operate. It identi?ed seven
weaknesses and bottlenecks in Scotland’s
entrepreneurial ecosystem:
> opportunity perception;
> start-up skills;
> networking;
> product and process innovation;
> high-growth aspirations;
> internationalisation; and
> risk capital.
It further identi?ed areas where Scotland has an
opportunity to strengthen its entrepreneurial base.
These include skills for growth, an enhanced role
for universities and more extensive use of role
models, as well as effective connections and
improved ?nancing for growth.
Entrepreneurial Education in Scotland PAGE 6
1 ‘Scotland CANDO: Becoming a World-leading Entrepreneurial and Innovative Nation’, Scottish Government, November 2013
2 ‘‘Increasing Innovation-Driven Entrepreneurship in Scotland’, The Regional Entrepreneurship Acceleration Programme (REAP) report,
REAPScotland Team, 2014
Introduction
1.3 Afocus ontheroleof universities
The REAPreport identi?ed the university sector as
crucial to the development and maintenance of a
strong entrepreneurial ecosystem. Citing MIT in
Boston as an exemplar, it suggests that “the
university sector has the opportunity to play a pivotal
role in the further development of Scotland’s
entrepreneurial ecosystemand an entrepreneurial
culture that is open to the world”
3
. A key question
that this report will seek to address, therefore, is
what the role of universities can and should be in
delivering entrepreneurial education.
A Universities Scotland report quotes the Institute
of Directors Scotland, highlighting that in today’s
world “There is no job security. Six to ten different
careers is the norm”
4
. This emphasises the need
for universities to equip their students with
employability skills (i.e., self-management,
problemsolving, teamworking, business
awareness, communication, information literacy,
the use of technology) as a central part of their
learning journey. Such skills, also referred to as
graduate attributes, are de?ned and embedded
across all of Scotland’s HEIs.
There is, however, less consistency across the
sector on what the role of universities can and
should be in going beyond employability skills,
in order to produce graduates with a truly
entrepreneurial mind-set. It is not expected that a
majority of undergraduates will start a business
straight after ?nishing their degree, but whether
they do set out to create their own venture,
to pursue a career in academia or to ?nd
employment within industry, their ability to be
?exible, to identify opportunities and to persuade
others of the value of their ideas, will be a key
pillar of an entrepreneurial culture and a
?ourishing Scottish economy. Therefore, the role
of universities in equipping graduates with these
skills is increasingly relevant.
Further, universities have unique resources,
in terms of knowledge and networks, to take
a powerful role in supporting both potential
entrepreneurs and existing business leaders in
Scotland to understand the importance of creating
a strong venture identity, purpose and offering
fromthe outset. This will be crucial to facilitating
successful growth in the future; an area in which,
to date, Scottish businesses have been weak.
There are, of course, challenges for universities in
delivering entrepreneurial education. The pace
with which science and technology move forward
makes it dif?cult, for STEM
5
subjects in particular,
to ?nd space within the curriculumto introduce
the teaching of practical/vocational skills. Arts and
humanities or theoretical subjects often face
another challenge, where the relevance of
enterprise skills is less obvious. Additionally,
course leaders and lecturers predominantly come
fromacademic backgrounds, limiting their ability
to bring experience and insight into the realities of
enterprise and entrepreneurship to the classroom.
Nevertheless, experience elsewhere suggests
that such challenges must be overcome if
Scotland is to realise its entrepreneurial
ambitions. Research by the Kaufmann Foundation,
for example, has found that MIT graduates have
set up so many companies that together they
create an economic output equivalent to that of
one of the top 20 countries in the world
6
. The
education that students receive at MIT, their
exposure to entrepreneurial role models and a
surrounding strong entrepreneurial ecosystem,
allows themto translate their academic
knowledge into commercial value. The lack of
such focus or entrepreneurial culture in Scotland
is likely to be one of the reasons why Scotland
lags signi?cantly behind the rest of the UKfor
R&Dexpenditure in business, despite being an
international leader in R&Dexpenditure in higher
education
7
.
Entrepreneurial Education in Scotland PAGE 7
3 ‘‘Increasing Innovation-Driven Entrepreneurship in Scotland’, The Regional Entrepreneurship Acceleration Programme (REAP) report,
REAPScotland Team, 2014, p33
4 ‘Taking Pride in the Job’, Universities Scotland, 2013 p7
5 Science, Technology, Engineering and Mathematics
6 ‘Entrepreneurial Impact: the role of MIT’, Edward BRoberts and Charles Eesley, MIT Sloan School of Management, 2009
7 ‘Increasing Innovation-Driven Entrepreneurship in Scotland’, The Regional Entrepreneurship Acceleration Programme (REAP) report,
REAPScotland Team, 2014, p19
Introduction
1.4 Theroles of theScottishFunding
Council andResearchCouncils
The Scottish Funding Council (SFC) is one of the
key stakeholders within the entrepreneurial
ecosystemin Scotland, working closely with the
Scottish Government, Universities Scotland and
others. Outcome Agreements signed between SFC
and each Higher Education Institution set out what
universities plan to deliver in return for the public
funding received fromSFC. These outcomes are
expected to contribute towards improving life
chances, supporting world-class research and
creating sustainable economic growth, each of
which ties strongly with the need for a ?ourishing
entrepreneurial culture in Scotland.
SFChas a central role in facilitating knowledge
exchange: ensuring that the research it supports
within universities can be accessed and used by
business and industry to create real economic and
social impact for Scotland. Much of this work
involves fostering partnership and interaction
between academia, the research community and
industry; an important factor in supporting
researchers to raise their awareness of business
needs and business opportunities. But further,
it involves encouraging researchers to consider
commercialising their own ideas and supporting
these entrepreneurs to create, and to grow, their
own ventures.
Entrepreneurial Education in Scotland PAGE 8
Case Study: SFCsupportinginnovationandentrepreneurshipinScotland
InnovationScotland
Innovation Scotland is the strategy of partners – SFC, Universities Scotland, Scottish
Enterprise and Highlands and Islands Enterprise – to increase the ef?ciency, effectiveness,
clarity, simplicity and sustainability of support for innovation and entrepreneurship
provided at the interface between universities and businesses in Scotland.
The Innovation Scotland Forum, consisting of senior representatives of universities and
industry, meets three or four times a year to provide advice to the boards of the partners
on the on-going implementation of the strategy.
InnovationCentres
SFClaunched the Innovation Centre programme in 2012 to support transformational
collaboration between universities and businesses, working in partnership with Scottish
Enterprise and Highlands and Islands Enterprise.
Supported by core SFCfunding of £120 million over the period 2013–2018, Innovation
Centres have been established across a number of key economic sectors, including digital
health, aquaculture, oil and gas and construction, to facilitate secondments, industrial
studentships, collaborative working, access to equipment and skills and training for
researchers and knowledge exchange practitioners.
Enterprise Campus
A joint initiative between the universities of Aberdeen, Edinburgh and Strathclyde, each
acting as a hub, Enterprise Campus supports postgraduate students fromany Scottish
university who want to set up their own business.
Funded by SFC, the initial focus of Enterprise Campus is on potential high-growth
businesses, providing business planning support, mentors, ?nancial, legal and IPadvice,
information on funding opportunities and more, tailored to the needs of the business.
Introduction
Similarly, the seven UKResearch Councils are
another important source of funding for HEIs and
research institutes, through the award of funding
to researchers based on the strength of their
proposals. They are tasked with core objectives to
contribute to the economic competitiveness of the
UKand to enhance the quality of life and creative
output of the nation. Research Councils, therefore,
have a distinctive role to play in the innovation
landscape, supporting exploitation of the research
they fund. This involves working closely with
industry, either directly or through Innovate UK, to
couple research to industry needs, to undertake
intensive knowledge transfer activities, to provide
industry access to cutting-edge facilities and to
support the creation and growth of innovative
ventures.
Both the Scottish Funding Council and the
Research Councils are therefore well-placed to
use available mechanisms to encourage every
university to develop entrepreneurial education
and an entrepreneurial culture. They are further
ideally placed to provide a link between realising
the potential of the research and innovation
ecosystemand supporting a vibrant
entrepreneurial ecosystem.
SFC, together with the Funding Councils of each of
the UKnations, also jointly conducts the Research
Excellence Framework exercise which aims to
assess the quality of research undertaken in HEIs
and to produce evidence of its impact. While this is
a valuable exercise that ensures accountability for
public investment in research, it also acts as a
driver for HEIs to prioritise the employment
of academic, research-active staff, and as a
disincentive to employ lecturers fromenterprise
and industry backgrounds.
1.5 Theroles of enterpriseagencies
andbusiness support bodies
Scotland has a vibrant landscape of business
support, with:
> two over-arching national enterprise agencies,
Scottish Enterprise and Highlands and Islands
Enterprise;
> industry-speci?c public bodies such as
VisitScotland and Creative Scotland;
> speci?c support for SMEs through Business
Gateway;
> speci?c support for different aspects of
business; e.g., Skills Development Scotland,
Talent Scotland and Scottish Development
International;
> a wide range of membership bodies, such as
Entrepreneurial Scotland, the Scottish Council
for Development and Industry, Scottish
Chambers of Commerce, the Federation of
Small Businesses Scotland, Scottish
Engineering and Scotland Food and Drink;
> business incubation centres and accelerators
focused on speci?c industries and/or
geographic locations, such as Entrepreneurial
Spark, Creative Clyde and Codebase;
> strategic infrastructure projects such as the
Edinburgh BioQuarter and Energetica in the
northeast of Scotland.
All of these bodies do and will have an
important role in the development of the strong
entrepreneurial culture envisaged in the Scottish
Government’s Scotland Can Do agenda. They
have a complementary role to play, alongside
universities and other educational institutions, in
supporting people with innovative ideas to access
the skills and resources required to put their ideas
into action and create their own venture.
Further, they have a principal role in supporting
those who have already established a viable
venture to growtheir operations, increasing the
economic and social bene?ts for Scotland.
Entrepreneurial Education in Scotland PAGE 9
“Wewill support Scotland’sentrepreneurial
ecosystem, supporting entrepreneurs,
spin-outs andstart-ups withambition,
signi?cant growthpotential andthe
capability andcon?dence to trade ona
global platform.
We will engage withpartners suchas
universities, Business Gateway, Scottish
EDGE, Entrepreneurial Scotland,
Informatics Ventures, EdinburghBioQuarter
anda growing range of emerging private
sector ‘accelerators’, to improve support
for companies startedby entrepreneurs.”
Scottish Enterprise,
2015–2018 Business Plan, p7
Introduction
The support available fromthese bodies to
potential entrepreneurs, and to business founders
looking to growtheir company, ranges fromonline
resources providing an introduction to aspects
of business management, to intensive account
management for potential high-growth
companies. Free advice on business planning;
identifying and sourcing necessary skills; legal,
?nancial and IPissues; fundraising opportunities;
mentoring services; and assistance with customer
and supplier contacts are among the services
on offer.
However, it is important that these services are
effectively designed, delivered and coordinated in
order to ensure that they generate maximum
impact and return on investment in support.
Entrepreneurial Education in Scotland PAGE 10
Case Study: Skills
Development Scotland
–Skills for Growth
In January 2015, Skills Development
Scotland (SDS), working in partnership with
Investors in People Scotland, launched an
innovative product to support companies
with ambitions for growth.
Through this initiative, SDS and Investors in
People Scotland can help businesses identify
their priorities and objectives, link these
to the people and skills needs of their
organisation and create a tailored action
plan.
The plan is then passed to an SDS Employer
Engagement Advisor, who can identify
appropriate training providers and advise
the employer on howthey can apply for any
public sector funding that may be available
to them.
Entrepreneurial Education in Scotland PAGE 11
2 Enterprise education, entrepreneurship
education and skills for growth
2.1 De?nitions andexplanations
8 ‘Enterprise and Entrepreneurship Education: guidance for UKHigher Education providers’, QAA, 2012, p2
9 ‘Enterprise and Entrepreneurship Education: guidance for UKHigher Education providers’, QAA, 2012, p2
> Generate an idea and
make it happen
> e.g., idea formulation,
teamwork
> Mainly undergraduate
students
Enterprise
Education
> Focus on setting up
a newventure
> e.g., business development,
fundraising
> Both undergraduate &
postgraduate students
Entrepreneurship
Education
> Provision of skills
for growth
> e.g., leadership, international
trade, growing a team
> Founders of existing companies
Skills for
Growth
2.1.1 Enterpriseeducation
Enterprise education is described by the Quality
Assurance Agency for Higher Education (QAA) as
“the process of equipping students (or graduates)
with an enhanced capacity to generate ideas and the
skills to make themhappen”
8
. This involves skills
such as creativity, a can-do attitude, networking
and a willingness to take risks without the fear
of failure. It aims to provide students with the
mind-set necessary to be enterprising, whatever
their future career.
It is important for Scotland’s economy that
companies of all sizes are able to recruit froma
strong, local talent base. Enterprise education
seeks to supplement and strengthen general
employability skills. It is not about studying
business, but rather about engagement with the
entrepreneurial ecosystem, exposure to role
models and building the skills to be ?exible and
adaptable. Enterprise education will, therefore, be
valuable and appropriate for most undergraduates
and is something that can take place at a more
generic level, embedded across the spectrumof
undergraduate degree courses.
2.1.2 Entrepreneurshipeducation
Entrepreneurship education is de?ned by the QAA
as equipping students with “the additional
knowledge, attributes and capabilities required to
apply these abilities in the context of setting up a
newventure or business”
9
. This may involve
enhancement of the skills covered under
enterprise education, as well as leadership skills,
business planning, fundraising, innovation and
business development.
Figure 1 Different types of entrepreneurial education.
Enterprise education, entrepreneurship education and skills for growth
This type of education targets a smaller audience,
as students are rarely ready to set up a business
immediately upon graduation. Instead, those
with entrepreneurial inclinations will be looking
to bank foundational skills that they can use later.
Entrepreneurship education should lay the
foundations of strong leadership, providing
students with an understanding of the role of
leader in creating and communicating their vision,
mobilising others to commit to and achieve that
vision, creating newopportunities and nurturing
growth. It should support students to develop an
enhanced self-awareness of their own leadership
strengths and areas for development.
But courses in entrepreneurship must also provide
students with more speci?c knowledge and skills,
including the tools and methodologies that will
enable potential entrepreneurs to establish the
‘?rst principles’ of their venture. Such ?rst
principles will involve de?ning the core offering,
developing a product plan, quantifying the value
proposition, identifying the customer base and
considering howmarkets can be reached, as well
as testing assumptions and undertaking primary
market research
10
.
More generally, entrepreneurship education
will also include practical aspects such as an
understanding of the economic and business
landscape in which businesses operate, the ability
to analyse relevant data and extract useful
information and the ability to understand market
trends. It will also provide students with an
understanding of the ?nancial aspects of
management; including, for example, an
understanding of intellectual property
management, reading a balance sheet and
howto use Companies House and HMRC.
Again, these are the minimal necessary skills for
anyone wishing to run their own business, and will
likely be particularly relevant to any student,
undergraduate or postgraduate, who is actively
considering the commercialisation of an idea or
product. However, many of these skills will also be
useful for graduates who want to have control of
their careers and to understand the business
context in which they are working.
2.1.3 Skills for growth
Skills for growth training is aimed at building the
skills, understanding and support networks of
existing SMEs and business leaders so that they
can expand and reach bigger markets. There is a
continuumin the entrepreneurial education system,
as the successful scale-up of a business will in part
depend on the strength of leadership abilities and
decisions made at the point of creation, and in
particular on the solidity of the ‘?rst principles’
that lie at the heart of the business. For many
businesses operating in Scotland today, including
those which have been established by owners
without any formal entrepreneurship education,
such an approach will not have been taken at the
outset. Therefore ‘skills for growth’ training will,
in fact, start at an earlier step, ensuring that the
business leader has access to high-quality
entrepreneurship education that places these
fundamentals at the heart of the process,
establishing a solid base fromwhich to grow.
Once this base has been established, skills for
growth training will include the delivery of in-depth
knowledge of a wide range of speci?c aspects of
business. These skills might include, for example,
broadening leadership abilities, understanding
international markets, increasing sales, growing
a teamor navigating merger or acquisition
opportunities.
There are a lot of ‘lifestyle businesses’ inScotland,
whichnever growbeyond a minimal size. In2014,
the Federationof Small Businesses estimated that
94%of Scottishcompanies are classi?ed as
micro-enterprises withfewer than10 employees
11
.
In order for Scotland’s economy to grow, there
is a need for newand established businesses to
continue expanding, providing jobs and training for
newgraduates and established professionals.
There is also a need to encourage overseas
businesses to open UKof?ces in Scotland, which
requires Scotland to have the skills and talent base
to support these businesses.
Entrepreneurial Education in Scotland PAGE 12
10 For an example of such methodologies, see www.disciplinedentrepreneurship.com
11 ‘Voice of Small Business Member Survey – Scotland’, The Federation of Small Businesses (FSB), 2014, p4
Enterprise education, entrepreneurship education and skills for growth
Skills for growth training will be delivered through
a range of partners, at a range of levels, including
universities (particularly through their business
schools), enterprise agencies, other business
support bodies and networks, and private training
providers. Given the range of bodies involved in the
delivery of skills for growth training, coordination
is key and such training may be delivered under
the banner of a dedicated body, bringing together
expertise fromprivate, public and academic
sources.
2.2 Why entrepreneurial education
is important
Without an entrepreneurial heart in Scotland,
there can be no growth or wealth creation.
Wealth creation is not just down to individual
entrepreneurs; we need to acknowledge that there
is a broad range of people, in organisations of all
sizes, who must also be ‘intrapreneurial’ in order
to make the companies they work for successful.
Enterprise skills, including the ?exibility to
overcome unanticipated challenges and to move
successfully between jobs, or indeed careers, are
vital to the success and resilience of the local
workforce. They should be embedded in university
curricula and in wider Scottish society.
Venture creation may always remain of interest to
a smaller subset of students, but universities can
create the ecosystems within which those who do
have entrepreneurial inclinations can ?nd their
own pathways. A fully developed ecosystem
(Figure 2) can provide the full pathway of support
for entrepreneurship in Scotland, fromthe
creation of an entrepreneurial mind-set in
undergraduate students, right through to the
growth and expansion of Scottish businesses
into global markets.
Entrepreneurial Education in Scotland PAGE 13
Figure 2 Scotland’s entrepreneurial ecosystem.
Figure providedby Converge Challenge.
Enterprise education, entrepreneurship education and skills for growth
Entrepreneurial Education in Scotland PAGE 14
What docurrent students think?
Do you think Enterprise Education
is important, and if so, why?
‘I thinkEnterprise Educationis particularly important for those who have not decided
what their ideal career looks like, althoughI thinkthat basic entrepreneurshipshould
be taught to everyone to ensure that everyone is aware of this potential career option’
Third-year Business &Management student
‘Yes, the economy is changing fast andit is muchharder to get a job, regardless
of amazing quali?cations! I thinkit is very important students learnanddo more
to do withenterprise; learning important skills suchas promoting andmarketing,
networking, learning to speakinfront of people, andof course coming upwith
newideas to helpinthe future.’
Second-year Business HNDstudent
‘Yes – because a lot of business skills (?nance, planning, tax) I feel are the biggest
reasonfor computing science students not to consider enterprise as anoption.’
Fourth-year Computer Science student
‘This depends…if youmeanan“academicised” versionof entrepreneurship
education, thenI don’t thinkit will be that successful inattracting andcreating
more entrepreneurs. If enterprise educationmeans using a range of methods and
means to attract andsupport budding entrepreneurs thenit wouldbe important.
Because enterprise gives youskills andoptions.’
Second-year International Relations student
Entrepreneurial Education in Scotland PAGE 15
3 Entrepreneurial education: current
provision, challenges and opportunities
12 ‘Helping entrepreneurs ?ourish: rethinking the drivers of entrepreneurship’, Economist Intelligence Unit, 2014, p12
13 ‘Taking Pride in the Job’, Universities Scotland, 2013 p86
3.1 Enterpriseeducation
For the reasons set out in Sections 1 and 2, we
believe that the soft skills comprising enterprise
education should be embedded within the
undergraduate curriculum, where they can reach
the majority of the future workforce, and where
they can lay the foundations for those who want
to pursue future entrepreneurial careers.
3.1.1 Demandandprovision
The Economist Intelligence Unit’s 2014 report
Helping Entrepreneurs Flourish conducted two
global surveys of young people and entrepreneurs
that demonstrated the importance of enterprise
education and the role of universities to provide it
(see Figure 3
12
). The data shows that only a ?fth of
young people consider that the existing provision
of enterprise education is suf?cient within the
universities and nearly 80%agree that more
needs to be done.
There is clear evidence that enterprise education
is relevant to the undergraduate community in
Scottish HEIs fromacross the disciplines. Some
18%of graduates were self-employed after
?nishing at Scotland’s Rural College (SRUC). For
graduates fromthe Edinburgh College of Art and
GlasgowSchool of Art, the number is even higher
at 25%, reaching 45%for graduates of the Royal
Conservatoire of Scotland
13
.
However, at present in Scotland there is patchy
integration of enterprise education into the
undergraduate curriculum.
“Whiletherearehot-spotsof
entrepreneurial activity[inScottish
Universities], thesector isgenerally
characterisedasprovidingadisciplined
intensiveeducation, rather thana
stronglyentrepreneurial experience.”
REAPScotland report
49%
19%
78%
Figure 3 Provisionof enterprise educationwithinhigher education
Academic degree
importance for future
entrepreneurs
Goodprovisionof
enterprise skills by
universities
Universities needto
give more support for
future entrepreneurs
“Wedon’t haveanythinglikeenough
[provisioninHEIs]…universitiestend
tobemuchsiloed.”
Roundtable with university representatives
and entrepreneurs, 7 October 2014
“It’sdif?cult toidentifyanyuniversities
that arebeaconsof goodpracticeacross
theboard. Bitsandpiecesof different
universitiesaregood…but theyarenot
embracingthisacrossall faculties”.
Roundtable with governmental bodies,
29 October 2014
Entrepreneurial education: current provision, challenges and opportunities
Entrepreneurial Education in Scotland PAGE 16
What docurrent students think?
Is there suf?cient provision of Enterprise
Education in Scottish universities? Could you
name some examples? What is missing?
“WithinStrathclyde University, yes; however, speaking to individuals at other
universities highlights a lackof entrepreneurshipwithsome. Strathclyde has many
budding entrepreneurs who oftenpresent as guest speakers as well as having
facilities to promote enterprise education, suchas the Hunter Centre andEnterprise
Hub. The ease of access to the helpavailable is missing, as many students are not
aware of the services available to themwithinthe university.”
Third-year Entrepreneurship and Marketing student
“I thinkthat business students do have suf?cient exposure to enterprise classes;
however, I thinkthat entrepreneurshipneeds to be emphasisedmore to
non-business students.”
Third-year Business and Management student
“InSt Andrews, there is anEnterprise andcreativity module whichgives you
hands-onexperience of starting upa business. What is missing is a broader
interventiononwhy entrepreneurshipis a viable, if not more of a pathto future
success. Before we canprovide opportunities for people who are already interested
inentrepreneurshipto pursue it, there needs to be more effort to attract people
to the idea.”
Second-year International Relations student
“I thinkit needs to be sharedacross different course areas. There are business
societies andorganisations, but we needmore examples of people fromdifferent
backgrounds inbusiness.”
First-year Philosophy student
Entrepreneurial Education in Scotland PAGE 17
Entrepreneurial education: current provision, challenges and opportunities
It largely depends upon the course director to
weave the teaching of these skills into the course,
and there is a challenge for course organisers
as to whether, and how, they can ?t this type of
education into the curriculum. For some courses,
enterprise education is far more naturally
incorporated than for others. For example, courses
such as theoretical physics and mathematics are
far less likely to incorporate soft skills related to
project management, team-working and product
or systemdesign, than subjects like engineering,
which have strong practical elements. From
the Arts and Humanities, the creative arts
and journalismare good examples of subject
areas in which enterprise education is more
readily incorporated into the curriculum.
At postgraduate level, there are more
opportunities emerging for students to gain
enterprise education as part of their courses.
The majority of Centres for Doctoral Training
(CDT) in Scotland embed aspects of enterprise
education into their programs. The CDT in
Integrative Medicine has a stated theme of
‘enterprise’ running throughout its work, so that
any students coming through the Centre will
develop an awareness of enterprise culture.
However, the inclusion of enterprise education
is not a stated requirement for the establishment
of a CDT’
14
.
The Scottish Institute for Enterprise (SIE) provides
workshops focused on equipping students with the
soft skills described under enterprise education,
and has seen signi?cant growth in demand for
these classes. SIE are scaling up their programs
to meet this demand through providing advice,
training and resources to allowteaching staff to
deliver enterprise education sessions themselves.
Strathclyde’s Hunter Centre is actively
establishing links with other departments,
identifying enterprise champions fromamong
the lecturers and educating colleagues about
howenterprise education can add value to
students. This, and similar provision of enterprise
education, should be tracked over time, so that
its impacts can be measured and its added value
demonstrated.
“Thebiggest uptakeof enterprise
educationwehaveseencamefrom
STEMsubjects; engineerscouldreally
seethedirect bene?t totheir careers.
Thereisincreasinginterest from
journalismstudents, sincetheyare
likelytobecomefreelancersafter
theygraduate.”
Professor Eleanor Shaw, Head of the Hunter
Centre for Entrepreneurship
“Therearepocketsof goodpractice,
for exampleat Edinburgh, Strathclyde
andHeriot-Watt, but thisisnot across
theboard…Inengineering, accreditation
requiresthat thesesoft skillsarebeing
taught, sotheyarealreadypart of the
course. Thisisnot soinall subjects.
Experiencesthat exposestudentstorisk
andfailureandwhichbuildcon?dence
aremissing.
Roundtable with university representatives,
27 October 2014
14 For example, see EPSRCCentre Requirementshttp://www.epsrc.ac.uk/?les/funding...raining-invitation-to-submit-a-full-proposal/
Case Study: Encouraginganenterprisingstudent ecosystem
The Scottish Institute for Enterprise, funded by the Scottish Funding Council (SFC) and
Scottish Enterprise (SE), works across every HEI in Scotland, supporting staff by delivering
enterprise workshops and engaging students via co-curricular events, competitions and
business advisors.
In 2013/14, nearly 1000 students (undergraduate and postgraduate) entered SIE’s
national Enterprise Competitions, with over 250 winning students participating in
competition-related workshops to help themdevelop their ideas. They also won prizes
ranging from£20 to £10,000 (totalling over £110k). The students are able to progress
fromearly-stage ideas to advanced business plans and start-ups. Many continue on to
bene?t fromthe support of Converge Challenge, EDGE (Encouraging Dynamic Growth
Entrepreneurs) funding, RSE Enterprise Fellowships and access to incubators.
SIE’s 20 student interns run many local events in every HEI, working with the universities’
enterprise hubs and student societies. SIE staff delivered 120 workshops to over 4000
students and provided one-to-one business advice to around 300 students.
In order to extend the availability of enterprise and entrepreneurial education to all
students in Scotland, SIE are launching an e-learning platform, which will be a practical
interactive resource based on sound online learning principles.
Entrepreneurial education: current provision, challenges and opportunities
3.1.2 Barriers andlimitations
The challenge facing Scotland’s HEIs is in ensuring
that exposure to enterprise education can be
embedded into undergraduate education, instead
of being seen as an optional bolt-on.
If enterprise education is presented to students as
an abstract ‘business skills’ module, then there
is likely to be limited uptake. Universities must
ensure that the soft skills pertaining to enterprise
education are taught in a way that will have
relevance to the subject area of the student. The
focus of enterprise education should be on making
each student more employable in their chosen
?eld of study. The common consensus is that
introduction of a separate enterprise module
into every course is unlikely to yield the desired
outcome.
A further challenge for the Scottish HE sector is
that the large majority of teaching staff in Scottish
universities are academics; while only a handful
of undergraduate students will go on to pursue
academic careers. This means that there is
signi?cant variation in the appreciation of the need
for enterprise skills and industry awareness
amongst teaching staff, and in their ability to
provide these skills to students.
Further, it means that undergraduate students do
not have access to role models in their ?eld who
are employed in a business or entrepreneurial
environment, and who can share their experiences
of entrepreneurship and industry. The Economist
Intelligence Unit identi?es access to role models
and mentors as the most useful source of
inspiration and advice for those considering
starting up a business
15
. However, the Research
Excellence Framework (REF) currently acts as a
disincentive to Scottish, and UK, universities
employing teaching staff fromoutside academia.
Entrepreneurial Education in Scotland PAGE 18
15 ‘Helping entrepreneurs ?ourish: rethinking the drivers of entrepreneurship’, Economist Intelligence Unit, 2014, p10
Entrepreneurial education: current provision, challenges and opportunities
Compounding this ‘closed environment’ are
the limited links between some academic
departments and universities’ professional
services such as technology transfer of?ces,
careers services and development and alumni.
Such links have the potential to provide students
with exposure to people with a wide range of
experience and expertise of the business and
entrepreneurial worlds. However, there is little
consistency in engagement with such services,
both across and within Scottish HEIs.
Finally, a further challenge identi?ed in our
discussions has been that it is still uncommon
for undergraduate students to collaborate on an
interdisciplinary basis. Rather, the vast majority
of their work is done within their speci?c schools
and departments, with limited interdisciplinary
working. A key aspect of developing an
entrepreneurial mind-set is the ability to identify
weaknesses in one’s own skill set, and to build a
teamthat complements, rather than mirrors,
individual strengths and weaknesses. Current
undergraduate curriculums do not readily
encourage this, although the co-curriculum
does provide opportunity for interdisciplinary
collaborations.
3.1.3 Opportunities
Universities are uniquely placed to overcome
the barriers discussed above, to deliver
undergraduate courses that support the
development of soft enterprise skills, to tap
into their own vast networks of alumni and
professionals and to promote interdisciplinary
links.
If teaching staff are supported and encouraged
to develop their own enterprise awareness and
skills, the delivery of the core undergraduate
curriculumoffers signi?cant scope to provide
opportunities for students to develop their
enterprise awareness through the application
of subject-relevant skills. Setting tasks based
on the core subject content, but that challenge
students to be adaptable, to develop creative
solutions to problems, to pitch their ideas and to
consider the practicalities of implementation, will
contribute to a solid foundation in enterprise
education. Modes of course-work and assessment
based on ‘live’ projects with public, private or third
sector organisations and various challenge-based
tasks could be supported by a variety of
workshops on intellectual property, creativity
or communications, delivered by potential role
models.
The ?nal-year project or dissertation undertaken
by the vast majority of undergraduates provides
an opportunity to build on this foundation: a
chance for students to apply the knowledge
gained during their course to the design of a
system, process or product that could be used
in the ‘real world’. It would be bene?cial for
such tasks to involve a panel consisting of both
academic staff and practitioners, who would be
able to ask pertinent questions about the
application of the project to a real-life scenario.
Entrepreneurial Education in Scotland PAGE 19
“Thereisdif?cultyinpullingtogether
cross-disciplinaryteams, especially
at theundergraduatelevel…It isabout
encouragingstudentstothinkoutwith
their classmates. Thecurriculumdoesn’t
currentlyencouragethat but extracurricular
activitieslocatedwithinuniversitiesdo.”
Roundtable with university representatives
and entrepreneurs, 7 October 2014
Case Study: EngineeringDesignProjects, Heriot-Watt University
For the last ?ve years, Heriot-Watt University has been working with companies on
Mechanical Engineering Design Projects. Taking part in this initiative bears no cost to
the business and enables 4th-year students within the School of Engineering and
Physical Sciences to make a real difference to Scottish companies.
Through the links of Research and Enterprise Services, a number of companies are
selected each year with a real-life project for students to work on. It could be anything
fromdeveloping a completely novel prototype for a start-up to a process optimisation
project for a medium-sized established business.
Students work in teams of 4–5 not only to solve the technical challenges, but also look
at the costs and supply chain management. They develop skills including: working in a
team; time management; liaison with a client; presenting a business case for adoption
of the innovation by the company.
There are signi?cant bene?ts for both sides:
> Bene?ts fromenergetic and enthusiastic engineering students who provide fresh
perspectives, newideas and viewpoints.
> Academic expert supervisors and technicians to assist companies in their R&Dactivity.
> Bridging the gap between academics and industry through input into the education
process of future professionals and innovators.
> Companies gain an extra set of hands for special projects with clear remits
and de?ned outcomes.
> Evaluation of engineering students for the possibility of employment after graduation.
> Students gain practical real-world experience and learn newskills.
Entrepreneurial education: current provision, challenges and opportunities
Indeed, in the US it is common practice for
students to be taught some of their classes
by current practitioners in the ?eld, who teach
as part of their professional portfolio but who
are not academics. In light of the signi?cant
bene?ts of exposure to role models, such as
enhanced business awareness and aspiration,
this is a model that Scotland should seek to
emulate, even in an informal way. However,
acknowledging the barriers in the current UK
model that make it dif?cult for this type of
industry/HEI interaction, universities and
departments should at least make the most
of the opportunities offered by their networks
of professional services and alumni to provide
accessible role models for their students.
Entrepreneurial Education in Scotland PAGE 20
Case Study: Engaginguniversity alumni –Strathclyde100
Strathclyde 100 is a network of entrepreneurial alumni and business people who,
through a series of events, support emerging University of Strathclyde entrepreneurs.
Entrepreneurs and businesses pitch their ideas to the audience with a viewto securing
help with speci?c asks. Chaired by the University Principal, Professor Sir JimMcDonald,
Strathclyde 100 events have been running in Glasgowsince 2003 with impressive results:
> Introductions to CEODesignates, Directors and Board members.
> Mentoring relationships and advice fromindustry experts.
> Substantial grant funding and ?nancial investment secured.
> Introductions to a global network of contacts.
Case Study: SaltireScholarships
The Saltire Scholars Undergraduate Internship Programme gives undergraduate students
– with huge potential and ambition – the chance to experience the working environment of
highly successful ?rms or high-growth entrepreneurial companies at home and abroad.
The programme enables talented students to realise their potential through:
> Challenging work experience – increasing skill sets and commercial knowledge.
> Global perspective – 70%of placements are outside Scotland and those in Scotland
are with globally-minded companies.
> Increased leadership capacity – a Leadership Development Day and other events
during and beyond Scholars’ internships to increase their leadership capabilities.
> Superb networking opportunities – before, during and beyond the internship and
as a lifetime member of the Alumni Programme.
> Greater independence – working in a commercial environment and typically living
away fromhome.
> Increased ambition and con?dence – fuelled by their experience, network and peers.
> Giving back – Scholars give back their time and resource to their host communities,
Scotland and the Saltire Foundation
Entrepreneurial education: current provision, challenges and opportunities
Outwith the delivery of the core curriculum,
student societies and elective courses provide
an arena within which students can work in
interdisciplinary teams, manage projects and take
risks. Universities have a role to play in enabling
students to recognise howthe things they are
doing outwith the curriculumare relevant to
the development of an entrepreneurial mind-set,
and to support continued opportunities for
students to get involved.
Gaining experience outwith Scotland would also
be a strength for undergraduate students, and
opportunities for this type of global exposure
could be widened by building upon the work of
current initiatives such as the Saltire Scholarship
programme.
Entrepreneurial Education in Scotland PAGE 21
Case Study: FormulaStudent
Formula Student (FS) is Europe's most established educational motorsport competition, run
by the Institution of Mechanical Engineers. Backed by industry and high-pro?le engineers
such as Patron Ross Brawn OBE, the competition aims to inspire and develop enterprising
and innovative young engineers. Universities fromacross the globe are challenged to design
and build a single-seat racing car in order to compete in static and dynamic events, which
demonstrate their understanding and test the performance of the vehicle.
FS is:
> A high-performance engineering project that is extremely valued by universities
and usually forms part of a degree-level project.
> Viewed by the motorsport industry as the standard for engineering graduates to meet,
transitioning themfromuniversity to the workplace.
> The kite-mark for real-world engineering experience.
The format of the event provides an ideal opportunity for the students to demonstrate and
improve their capabilities to deliver a complex and integrated product in the demanding
environment of a motorsport competition.
In Scotland, the Universities of Aberdeen, Edinburgh, Edinburgh Napier, Glasgow,
Heriot-Watt, Strathclyde and others participate in the programme.
Entrepreneurial education: current provision, challenges and opportunities
3.2 Entrepreneurshipeducation
As indicated previously, entrepreneurship
education will be relevant primarily to those
undergraduate and postgraduate students who
have themselves identi?ed an interest in pursuing
an independent career (whether in academia or
industry) or in pursuing entrepreneurial interests,
either in the immediate or long term.
Universities have a clear role in creating a strong
entrepreneurial ecosystemthat will both stimulate
students to consider an entrepreneurial approach
to their future careers (for example through
exposure to role models and by delivering core
courses in such a way that they relate to the
realities of their respective industries); and provide
clear and accessible support for those who wish to
take up entrepreneurship education on an elective
basis.
However, the demand for entrepreneurship
education stemming fromthis ecosystemwill be
met not only by universities, which will support
initial stages, but also by national intermediaries
which go further in supporting students to develop
their ideas, entrepreneurial skills and networks.
3.2.1 Demandandprovision
Demand for entrepreneurship education is broadly
currently well-served in Scotland, with a wide
range of programmes supporting business
creation across Scottish universities and a good
ecosystemfor entrepreneurs at the national level.
There is an identi?able but ?exible pathway for
students who wish to pursue entrepreneurial
careers, beginning with training and mentoring
opportunities within universities, and progressing
to competitions and fellowships with national
intermediary organisations (see Figure 4).
Entrepreneurial Education in Scotland PAGE 22
Entrepreneurial education: current provision, challenges and opportunities
The pathway that currently exists provides
opportunities for students with different
backgrounds and experience to become
entrepreneurial. The Launch.ed initiative
within the University of Edinburgh, for example,
is available to any Edinburgh student, regardless
of their course. SIE supports and complements
individual university initiatives such as Launch.ed,
providing a national platformfor students.
Informatics Ventures, formed by Scottish
Enterprise and the Scottish Funding Council,
supports Scottish technology entrepreneurs from
any university and the business community.
The Converge Challenge provides a step on
the pathway for entrepreneurially minded
researchers, who have the same end-goal as
other entrepreneurs, but whose mechanisms
and clientele are often different. It is particularly
important that those frommore academic,
research-intensive backgrounds are provided
with the skills and the opportunities to become
entrepreneurial, because this is one of the surest
ways to translate Scotland’s strong academic
research into social and economic value.
Entrepreneurial Education in Scotland PAGE 23
Internal training:
Including:
SIEworkshops,
elective courses,
careers services,
mentorship,
Saltire scholars,
Interface,
Equate Scotland
Development
opportunities:
Including:
Converge
Challenge,
Enterprise
Fellowships,
Saltire
Fellowships,
SIEcompetitions,
Centres for
Doctoral Training
Further support:
Including:
Entrepreneurial
Scotland,
Scottish
Enterprise
Highlands &
Islands Enterprise
Figure 4 Entrepreneurship educationproviders inScotland
Case Study: LAUNCH.ed
LAUNCH.ed provides free startup advice and business support to students at the University
of Edinburgh interested in starting a business. The key services it provides are:
> One-to-one appointments with a business advisor.
> Workshops, bootcamps and competitions.
> Mentoring.
> Access to University of Edinburgh labs and facilities.
> Patent support and funding.
> Free legal and accountancy advice.
These services are free, con?dential and available to any Edinburgh student for the duration
of their studies, as well as alumni up to two years after graduation. To datel LAUNCH.ed has
supported more that 50 students to launch newcompanies, including Puffer?sh, which
has developed innovative spherical projection and display systems, and Peekabu Studios,
which creates cutting-edge recognition software. LAUNCH.ed’s services contribute to the
development of an entrepreneurial ecosystemaround the University of Edinburgh campus.
Case Study: RSEEnterpriseFellowships
RSE Enterprise Fellows receive training in entrepreneurial skills, as well as mentoring
and one year’s salary to support the growth of their business.
The initial phase of the application is a formoutlining the business idea and the applicant’s
entrepreneurial potential. The next phase involves presenting to a panel of RSE Fellows,
including entrepreneurs, industrialists, scientists and marketers.
Case Study: ConvergeChallenge
Converge Challenge is a business competition for academics, researchers and practitioners.
The competition occurs in three phases:
Phase 1: Submit an idea
Phase 2: Pitch the idea
Phase 3: Submit a Business Plan
The ?rst prize is £60,000 for the development of the business.
Winners also receive mentoring, networking opportunities and business support.
Entrepreneurial education: current provision, challenges and opportunities
3.2.2 Barriers andlimitations
The ability of students to take advantage of,
and be successful in, pursuing the existing
opportunities for entrepreneurship education
is still largely dependent upon howwell their
university is able to make themaware of, and
prepare themfor, these next steps. While many
universities in Scotland have developed strong
entrepreneurial cultures, this is not uniform
across all university departments, or across all
universities. Even those universities which have
a strong culture of creating and supporting
spin-outs, such as Aberdeen, Edinburgh, Dundee,
Strathclyde and Heriot-Watt, are not doing
this across all subject areas. The University of
Edinburgh has created a strong entrepreneurial
culture around its Informatics department,
for example, but this culture does not exist
across all the other STEMsubject areas.
Entrepreneurial Education in Scotland PAGE 24
“Thereislotsof goodsupport for eachstage
of thebusiness. For example, LAUNCH.ed
pushesyoutowardstheright people, the
right grantsetc. andthen, whenyougrow
beyondthat support, theRSEEnterprise
FellowshipandConvergeChallengekick
inandyouget morelinkstoindustry.
Thesearemorefocusedonactually
runningabusiness.”
RSEEnterprise Fellow
Entrepreneurial education: current provision, challenges and opportunities
At the level of entrepreneurship education, there
are lots of opportunities available for students and
academic researchers who are pro-actively
seeking them. However, it is important that the
pathway is well sign-posted, so that students know
which stepping stone is most appropriate to their
skill set, client base and development needs.
As opportunities are currently offered by many
different providers, it may be the case that
universities are not aware of all of them, and
may only promote one or two to their students.
As a result, candidates may miss the access routes
best suited to them. The current provision would
serve demand better, therefore, if it was more
joined up and clearly signposted.
3.2.3 Opportunities
There is an opportunity for Scottish universities
to look at the cultures which exist around their
different departments, and to examine the degree
to which these support the development of an
entrepreneurial ecosystem. There are many
excellent examples of best practice across
Scottish HEIs, a rich source of learning and
guidance for those seeking to strengthen their
own entrepreneurial ecosystems. In all cases,
enterprise education and entrepreneurial
mind-sets in students must be key pillars from
undergraduate to postgraduate levels.
There is also an opportunity for an umbrella
organisation, such as Entrepreneurial Scotland, to
work with current players within the ecosystemto
stimulate entrepreneurship education and training
in Scotland, and to provide clear signposting of
pathways and opportunities, to ensure these are
not missed by promising candidates. A signi?cant
?rst step in this direction has been the creation of
A Guide to Networking for Entrepreneurs by Young
Company Finance Scotland
16
.
3.3 Skills for growth
The delivery of skills for growth has relevance for
most business owners who have already set up
their own ventures and who are nowlooking to
growthese to reach larger markets. But, as
discussed in Section 2, the foundations for
successful growth must be laid at the earliest
possible stage of venture creation. In reality,
therefore, there is a strong link between
entrepreneurship education and skills for growth
training. In order to produce entrepreneurs with
growth ambitions, strong leadership ability and
skills for growth must be embedded in their
education fromthe outset. Much of this core
education may take place in universities, and in
particular within business schools.
At the next step, for existing business leaders who
require access to very speci?c skills for growth
training, the delivery of such training needs to take
place in a different setting fromenterprise and
entrepreneurship education. The delivery of these
skills needs to be about supporting business in
Scotland, not only businesses that have come
out of the universities.
Entrepreneurial Education in Scotland PAGE 25
“If wecould?ndawayinwhichevery
universitycouldexaminetheir entrepreneurial
ecosystems, theywouldall ?ndgaps.”
Roundtable with university representatives,
27 October 2014
“Thereisahugecultural element…it is
veryhardtogeneraliseacrossinstitutions;
eachhasitsownecosystem. Universities
shouldlookat their culturesanddevelop
entrepreneurial ecosystemswhichsupport
enterprisingbehaviours”
Roundtable with university representatives
and entrepreneurs, 7 October 2014
“Thereisalot of support out therefor
studentswhowant tostart their own
businesses, but alot of studentsaren’t
reallyawareof thesupport.”
Roundtable with university representatives
and entrepreneurs, 7 October 2014
16 A Guide to Networking for Entrepreneurs, Young Company Finance Scotland, November 2014,http://www.ycfscotland.co.uk/tabid/107/default.aspx?article=Guide+to+Networking+for+Entrepreneurs%201844
Entrepreneurial education: current provision, challenges and opportunities
3.3.1 Demandandprovision
Our discussions with academics and
practitioners fromthe ?elds of enterprise and
entrepreneurship, combined with existing data
and literature, (see Appendices Aand B), raise
the provision of skills for growth as an area
in which there is potential for signi?cant
development in Scotland.
The growth of Scotland’s innovative ventures
is crucial to realising the economic and social
bene?ts of an entrepreneurial culture and has
been a key priority for support agencies for
many years. Yet, as previously noted, some
94%of Scottish businesses have fewer than
ten employees, and indeed, some 68%are sole
proprietors/partnerships consisting of only the
owner/manager(s)
17
. Between 2002 and 2013,
high-aspiration entrepreneurs (i.e., those
with signi?cant growth ambitions) comprised,
on average, only 10%of newbusiness
owner-managers and 3%of established
owner-managers in Scotland
18
. In 2011/12,
44%of SME owner-managers in Scotland were
satis?ed with the current size of their organisation,
signi?cantly higher than the UK?gure of 33%
19
.
These ?gures suggest that there is a signi?cant
opportunity in Scotland to address lowlevels of
ambition in business owners and a culture of
entrepreneurship, combined with the availability of
high-quality training in key entrepreneurial skills,
will help address this.
The GEMScotland 2013 report demonstrates
that there is “a link between being innovative,
international and engaged in the entrepreneurial
community and being ambitious for one’s
business”
20
.
The private sector is relatively underdeveloped in
this area, with many providers delivering speci?c
skills training on certain aspects of growth, rather
than fostering the ambition, mind-set, con?dence
and leadership abilities that will stimulate
entrepreneurs to consider scaling up their venture.
Entrepreneurial Scotland has a strong role in
advocating skills for growth and fostering
networks of contacts, but it does not itself provide
training. Scotland’s universities are powerful
centres of knowledge and expertise for
entrepreneurship, but primarily serve people
who have come through the university system:
a small proportion of Scotland’s business leaders.
Entrepreneurial Education in Scotland PAGE 26
Enterprise
Education
UNI VERSI TY
UNI VERSI TY + Private
UNI VERSI TY + PRIVATE
Entrepreneurship
Education
Skills for Growth
Figure 5 Delivery of different type of entrepreneurial education
17http://www.gov.scot/Topics/Statistics/Browse/Business/Corporate/KeyFacts
18 ‘Global Entrepreneurship Monitor (GEM), Scotland 2013’, J Levie, University of Strathclyde Business School, 2014, p23
19 ‘Business Growth Ambitions Amongst SMEs’, TBRand Qa Research for BIS, Invest NI, Scottish Enterprise and the Welsh Government, 2012
20 ‘Global Entrepreneurship Monitor (GEM), Scotland 2013’, J Levie, University of Strathclyde Business School, 2014, p30
“Inthebeginning, I spoketoeveryoneI could;
but asyour project growsyou?ndthat support
agenciesetc. donot havetheskillstohelpyou
tothenext level. Theycan’t focusonyour
business.”
RSEEnterprise Fellow
Entrepreneurial education: current provision, challenges and opportunities
A newly-launched initiative, developed by
Highlands and Islands Enterprise, Scottish
Enterprise and the Scottish Funding Council,
drawing in expertise fromMIT and Harvard
Business School, is a welcome step forward in
?lling this gap. The SCALE programme is a
?ve-year international development programme
that will offer high impact, internationally-focused
training for both potential entrepreneurs and those
looking to scale up. The programme intends to
drawon the experience of Scottish entrepreneurs
and world-leading academics to support the
development of global skills and networks
21
.
We look forward to following the progress
of this initiative as it develop.
Two speci?c issues were highlighted to us
regarding the provision of skills for growth;
these were the need for sales skills amongst
entrepreneurs, and the need for training in
tackling international markets.
Entrepreneurs need to understand sales and to
develop sales skills in order to growand increase
their markets. However, there is no professional
ladder for the learning of sales skills in the UK,
although there is for almost every other type of
professional training, including accounting and
?nance. There is demand in Scotland for tailored
sales training, which represents an ef?cient use
of small business owners’ time. The US has a
much more developed sector for providing these
skills and conducting research into consumer
psychology to feed into the teaching of sales skills.
Business growth is also heavily dependent upon
the ability of businesses to reach international
markets. Internationalisation is identi?ed as a key
pillar of economic growth in both the Scottish
Government’s March 2015 Economic Strategy
22
,
and Scottish Enterprise’s 2015–2018 Business
Plan
23
.
Scottish Development International (SDI), the
international armof Scotland’s enterprise
agencies, offers support to Scottish SMEs wishing
to export, including the assistance of expert
advisers, support with market research, trade
missions and access to networks. The type and
extent of support available vary across businesses
of different sizes, in different sectors and with
different growth potential. Nevertheless, Scottish
SMEs are not exporting at the rates that might be
expected. According to a 2010 report by Bank of
Scotland Commercial, two-thirds of Scottish SMEs
are not exporting to international markets
24
.
A recent survey of SMEs in the UK, conducted
by KPMGand YouGov, reported 19%of SMEs
surveyed cite poor understanding of the legal
requirements for export as a major barrier to
reaching international markets. A further 17%
report not having a ‘contact organisation’ abroad
to advise and introduce them, with 16%reporting
a lack of understanding of international markets
as a challenge to accessing these export
opportunities
25
.
To these issues could be added the skills to
explore merger andacquisitionopportunities
as pathways to growth. A better understanding
amongst entrepreneurs of howto navigate and
present themselves for IP, product or business
partnership and acquisition opportunities may
result in an increase in the number of companies
of scale for Scotland, particularly in a sector such
as life sciences.
Entrepreneurial Education in Scotland PAGE 27
21 For more information about the initiative, see www.hie.co.uk/scale
22 ‘Scotland’s Economic Strategy’, Scottish Government, March 2015
23 ‘2015 – 2018 Business Plan: Building Scotland’s International Competitiveness’, Scottish Enterprise, 2015
24 As reported in the Caledonian Mercury, 2 June 2010,http://caledonianmercury.com/2010/06/02/two-thirds-of-scots-smes-miss-out-on-exports/00776
25 ‘An agenda for growth’, KPMGEnterprise in association with YouGov, 2014
“Scotlandistoosmall togrowacompany
without exporting. Theonlywayistoexpand
marketsoutsideScotland. If youlookat the
UK’sexport performance, comparedwiththe
US, thisissomethingwearepoor at.”
Roundtable with enterprise support
organisations, 25 November 2014
Entrepreneurial education: current provision, challenges and opportunities
3.3.2 Barriers andlimitations
The current ecosystemin Scotland is not
structured to provide the rigorous, high
quality entrepreneurial education that is
needed to stimulate growth ambition, the
?rst step in creating ventures with scale-up
potential. Scottish universities and business
schools are not routinely engaged in providing
fundamental skills for growth training;
i.e., that which returns to the fundamentals
of entrepreneurship education, to business
leaders who have not come through the
university system. Additionally, most business
schools in Scotland, like other university
departments, employ mainly academic staff
who do not have a background in industry or
practical entrepreneurship.
At an advanced stage, Scottish Enterprise
and Highlands and Islands Enterprise, tasked
with supporting a small number of potential
high-growth companies, currently source
this support fromelsewhere (e.g., the MIT
Entrepreneurship Development Programme),
but the costs involved inevitably mean that
opportunities are limited and, of course, such
programmes are not tailored to Scottish
markets. The newSCALE programme builds
on the relationships between the enterprise
agencies, MIT and Harvard Business School,
attempting to overcome these issues. It
demonstrates the potential impact of a
comprehensive programme of training and
support which crosses the boundaries between
fundamental entrepreneurship education
and skills for growth training, and which brings
together practitioners and academic expertise.
But Scottish universities do not yet consistently
take a similar central, high-pro?le role in
delivering such education to entrepreneurs
outwith the HE sector.
Entrepreneurial Education in Scotland PAGE 28
Networkingand
training:
Including:
Entrepreneurial
Scotland,
Hunter Centre,
Saltire Fellowship,
EDP, EIE, ECCI,
Edinburgh
Bioquarter
Incubators:
Including:
Alba, Hillington,
CodeBase,
HWUresearch
park, BioCity,
Dundee University
Incubator, The
Centre for Health
Science, Creative
Exchange Leith,
Elevate
Innovation
Support:
Including:
Interface
InnovateUK
Scottish
Enterprise, HIE,
SDI, UKTI,
Innovation
Centres
Figure 6 Support for HighGrowthCompanies inScotland. EDP= Entrepreneurship Development Programme; EIE= Engage Invest Exploit;
ECCI = EdinburghCentre for CarbonInnovation; HIE= Highland andIsland Enterprise; SDI = ScottishDevelopment International;
UKTI = UKTrade andInvestment.
Entrepreneurial education: current provision, challenges and opportunities
Even once the fundamental foundations for
growth are in place, time is a serious limitation
to SMEs participating in the additional speci?c
skills training required to growtheir businesses.
Those running businesses are unlikely to have the
time to commit to attending the types of skills
workshops and seminars that are appropriate at
university level, or for newentrepreneurs. This
means that the provision of skills training at this
level needs to be tailored to suit those with limited
time to spend away fromthe running of their
businesses, and will need to reach a newlevel
of relevance and speci?city. It also means that
information about the support and training that
is available must be easy to ?nd.
A further requirement of skills for growth
training at this level is that it be centred around
the entrepreneur, rather than focusing too
heavily on business models. A limitation to the
delivery of skills for growth training occurs when
support is focused too much on the business
model of a company, rather than on the individuals
running it. The success of a business depends
to a large degree upon the individuals involved,
and their abilities to adapt, improve and progress.
Better support of leadership teams in SMEs is
needed. A well-supported entrepreneur could
create several businesses or innovations during
their lifetime, so nurturing the individual is
essential.
Entrepreneurial Education in Scotland PAGE 29
Case Study: EntrepreneurshipDevelopment Programme
Highlands and Islands Enterprise (HIE) and Scottish Enterprise (SE) support the most
ambitious businesses with high growth potential fromacross Scotland to participate in
the Entrepreneurship Development Program(EDP) course at the MIT Sloan School of
Management in Boston.
The MIT Entrepreneurship Development Programme is a week-long, high-level, intensive
executive education course teaching skills for high-impact entrepreneurship. It is held onsite
at the Massachusetts Institute of Technology (MIT) in Boston in January each year.
EDPis a globally-renowned course which blends cutting-edge academic learning with
practical teamwork exercises, live investment pitching, best-practice company visits and
international networking. The ?ve-day course takes participants through the entire Innovation
Based Enterprise (IBE) venture creation, growth, investment and exit process, teaching core
skills of entrepreneurship and the latest thinking in this space. The concepts are taught
through lectures, workshops and keynotes fromhigh-pro?le entrepreneurs, then participants
are encouraged to apply the learnings immediately in simulated exercises which test their
thinking. The course introduces participants to MIT’s vibrant entrepreneurial culture,
world-class commercialisation and technology transfer systemand connects participants
to a global entrepreneurial network. Participants learn howto break down the elements of
successful business growth into a step-by-step process and howthis formula for success
can be applied to their own business or organisation.
“Businesspeopleareshort of time. Theydon’t
want togotouniversity-styleclasses. They
needtofeel asthoughtheyarealsoworking
ontheir businesswhilst theyarereceivingthe
training. It hastobeveryrelevant.”
Roundtable with enterprise support
organisations, 25 November 2014
Entrepreneurial education: current provision, challenges and opportunities
3.3.3 Opportunities
Scottish Enterprise, in its Business Plan
2015–2018, recognises that meeting Scotland’s
ambitions for an innovative economy will require
a transformation shift, with the “need to adapt a
more radical and ?exible approach to supporting
sectors and companies…seeking newdelivery
models alongside others like Business Gateway,
to engage more companies and generate much
greater impact fromthat support”
26
.
We have identi?ed a gap in Scotland’s
entrepreneurial ecosystemfor supporting
Scotland’s business leaders to develop growth
ambitions, and ensuring that they have an
excellent grounding in the fundamentals of
entrepreneurship fromwhich their business
can grow. If universities were to step into this
gap, particularly by diversifying the experience
of their teaching staff and designing ?exible
programmes suitable for existing business leaders,
they would potentially have the power to create
real transformation across Scotland’s
entrepreneurial culture. With their extensive
knowledge bank, far-reaching alumni networks
and recognised excellence at international level,
universities are in a powerful position to foster
ambition and an international mind-set amongst
Scotland’s entrepreneurs, and to support themto
realise these ambitions. Where universities have
taken such a role (not only in Boston, but also, for
example, Aalto University in Helsinki), they are
already at the heart of ?ourishing entrepreneurial
cultures.
Of course, universities could not take on this role in
isolation. Scotland’s enterprise agencies will have
an important role in liaising between the business
community and universities (and other training
providers). They are in a strong position to advise
on the needs of business leaders, ensuring that
the training offered is rigorous, appropriate and
accessible. Private agencies will continue to be
key providers of skills for growth training in areas
where they have developed recognised expertise
and excellence; e.g., sales training, raising equity
investment, dealing with mergers and acquisitions
or in governance issues. In addition, they are in a
strong position to tailor support to individuals and
businesses, bringing a degree of ?exibility and
relevance that will be vital to potential high-growth
ventures.
Indeed, the authors of a 2014 Nesta Working Paper
on support for high growth ?rms suggested that
such ?rms required “more ?exible, responsive and
relational support, where peer to peer support and
specialised advice (e.g., support for management
buy-outs or acquisition of another company) are
prioritised”
27
.
As SMEowners are resource- and time-
constrained, the creation of a single source of
information about where they can get skills for
growth training and broader support would be
extremely useful. There are numerous courses
run by private and public organisations aimed at
delivering business skills, but it is not clear that
they are all appropriate or relevant to SMEs with
speci?c growth interests. It would be useful for
a reviewof such courses to be carried out and a
central point of information about what is
available to be created.
Auseful way to arrange information on the
support available would be to set out priority
themes, including sales skills, access to
international markets and mergers and
acquisitions, and to provide links to resources
and organisations providing information and
support around those themes. More courses
tailored to meet the needs of speci?c SMEs,
delivered on-site and addressing speci?c issues
within the business, are likely to be needed
to meet demand.
Entrepreneurial Education in Scotland PAGE 30
26 2015 – 2018 Business Plan, Scottish Enterprise, 2015, p6
27 ‘Increasing the Vital 6 Percent: designing effective public policy to support high growth ?rms’, RBrown, CMason, S Mawson, Nesta, 2014.
Entrepreneurial education: current provision, challenges and opportunities
There is a further opportunity for a national body
to develop networks between SMEs in Scotland
so that they can support one another in a
non-competitive environment. This may, for
example, build on the work of Interface, which
connects Scottish businesses and researchers
in certain industries with the aimof creating a
culture of innovation and collaboration
28
.
Some businesses will have collective ambitions,
such as reaching a global market with a local
product. If trusting relationships can be facilitated
between them, they will have a greater opportunity
to achieve their ambitions through collective
energies than alone.
As the export market represents a signi?cant
growth opportunity for SMEs, and as the Scottish
Government has set a target to increase the value
of Scottish exports by 50%by 2017, a global
outlook could also be supported through the
development of international networks for SMEs
and entrepreneurs. This type of network could be
grown out of communities such as GlobalScot and
Entrepreneurial Scotland.
Entrepreneurial Education in Scotland PAGE 31
28 For more information, seehttp://www.interface-online.org.uk/
“Entrepreneurial Scotlandcouldhelptobuild
andsignpost networks…Thereneedstobea
placewherebusinesseslookandcaninstantly
seetheroadmapfor wheretheygofor each
stageof support.”
Roundtable with enterprise support
organisations, 25 November 2014
Case Study: ScottishRapeseedOil
Scottish Rapeseed Oil, or Scottish Gold as it nowknown, is a group of eight independent
Scottish producers of cold-pressed rapeseed oil. Collectively they have created a vision
to growand expand the Scottish rapeseed oil market.
Interface Food &Drink and Scotland Food &Drink approached the companies to explore
the creation of a common interest group in which the producers could work together with
academia to identify and respond to any industry-wide challenges and opportunities.
Aims of the Group
> Develop market insight into the size of the market and track the performance of other
brands (both Scottish and non).
> Joint development of products and/or marketing to the mutual commercial bene?t
of participants.
> Encourage collaborative research projects with academia to improve competitiveness.
> Improve communication between industry and academia, giving industry the opportunity
to steer research.
Having launched at the Royal Highland Show2014, the group will work to continue to grow
and contribute greater value to the overall Scottish food and drink industry and drive
increased sales for all eight producers involved in Scottish Rapeseed Oil.
4 Emerging recommendations
The literature reviewand roundtable discussions
that have informed this paper have identi?ed a
number of issues in the current delivery of
entrepreneurial education. If Scotland is to
become a truly world-leading entrepreneurial
nation, further signi?cant and co-ordinated efforts
must be made to embed an entrepreneurial
mind-set in our students and graduates of today.
A number of opportunities have been presented in
the course of this paper, and we call on all actors
in the Scottish entrepreneurial ecosystemto
consider the next steps in grasping these
opportunities and strengthening Scotland’s
entrepreneurial culture.
4.1 For theScottishFundingCouncil
andResearchCouncils
We suggest that:
4.1.1
SFCuses the levers it holds to encourage the
formation of an Entrepreneurship Education
Forum, consisting of high-level representatives
of academic institutions, private and public
organisations and industry practitioners, tasked
with developing practical ways of enhancing
entrepreneurial education across Scotland.
This Forummay most appropriately be led by a
national body such as Entrepreneurial Scotland,
but strong endorsement by Scottish Ministers
and the support of the SFCwould be essential.
4.1.2
SFCencourages allocation of some of the funding
available through Knowledge Transfer Grants
to establishing entrepreneurial networks and
funding an Entrepreneurial Champion (Head of
Enterprise and Entrepreneurial Strategy) for
each institution.
4.1.3
SFCand Research Councils use Outcome
Agreements, criteria and conditions of grant to
encourage every university to develop a dedicated,
bespoke Entrepreneurial Strategy which takes
into account the speci?cs of teaching, research
and knowledge exchange strategies of each
institution. These strategies would embed
enterprise education into the core curriculum
and encourage stronger links with industry.
4.1.3
Funding and Research Councils recognise the
value of non-academic staff and industry experts
in delivering aspects of skills training and
employability skills, providing students with
exposure to a wider range of perspectives and
experiences relevant to their subject area.
Criteria should enable and encourage universities
to employ experts fromoutside academia.
This could be done by adding to ‘impact’
measurements on the diversity of staff.
4.2 For universities
We recommend that:
4.2.1
Universities support all academic staff to
understand what entrepreneurial education is and
its importance, and to develop their capacity to
introduce enterprise skills into the curriculum.
This will require a multi-level approach targeted
at different parts of complex university structures:
a) High-level endorsement fromthe Principal’s
of?ce, particularly involving the Deputy or
Vice Principals for Learning and Teaching
and for Research and Knowledge Exchange.
b) The establishment of enterprise champions
within each academic department to enable
the penetration of an entrepreneurial
mind-set. Champions may be identi?ed
fromamong participants of the Scottish
Crucible, members of the Young Academy
of Scotland or those who have experience
of business creation or industry. A key role
of enterprise champions would be to support
teaching staff to develop their capacity to
incorporate enterprise skills into the core
curriculum.
c) Entrepreneurship education providers
within each university (business schools,
entrepreneurship centres, technology
transfer of?ces, careers advisers, etc.)
provide workshops on the importance of
enterprise education to support champions,
participants of programmes such as Scottish
Crucible and staff.
Entrepreneurial Education in Scotland PAGE 32
Emerging recommendations
d) Business schools within each university
encouraged to consider becoming part
of the Small Business Charter
29
: an award
scheme designed to recognise business
schools with exceptional levels of engagement
with small businesses. This would enable initial
evaluation of the business schools’
engagement in supporting the growth of
small ?rms, engaging other stakeholders
in the growth agenda and providing their
students with relevant start-up support.
4.2.2
Universities build enterprise education into the
undergraduate curriculum, ensuring that all
students have suf?cient exposure to enterprise
skills and opportunities to practice such skills in
the context of their own subject area.
a) All undergraduate students have increased
opportunities within their respective courses
to access and practise basic employability
and enterprise skills, including identi?cation
of opportunities, creative problemsolving,
teamwork and pitch training.
b) Employability and enterprise skills training is
delivered by a wide range of role models from
among the alumni and business contacts of the
universities. This would serve the additional
purpose of bringing together different
professional services and academic
departments of a university.
c) Students are assisted to recognise the value
of the experience and skills they gain through
their activities in the co-curriculum, including
interdisciplinary learning, decision making,
teambuilding etc. The university’s careers
service could provide support by producing
resources and presentations that highlight the
skills sought by employers and examples of
howthese skills might be demonstrated within
the co-curriculum.
d) Final-year projects, where possible, provide
an opportunity for the application of
subject-relevant skills, challenging students
to apply their knowledge and understanding
to real-life problems. Demonstrating such
ability would make graduates vastly more
employable.
4.2.3
Universities create opportunities for
entrepreneurship and innovation and support
students at both under- and postgraduate levels
to develop their innovative ideas.
a) Universities facilitate or run elective courses
and one-off workshops on entrepreneurship
for interested students fromany academic
department. These may be delivered by
external agencies jointly with university staff.
b) Delivery of wider entrepreneurship training to
students across the university should be done
in collaboration between departments,
business schools, careers, alumni and
technology transfer services.
c) Enterprise societies created within each
university would help to engage the student
population. These societies could be linked to
the post of Entrepreneurial Champion, thus
providing continuity through changes of student
members.
4.2.4
Universities utilise experts fromindustry
to teach modules and engage with students,
providing access to role models who can
demonstrate routes to success and provide
inspiration.
a) Scotland should seek to replicate, even in an
informal way, the best parts of the US model
that provides a greater role for non-academic
staff. Practitioners may be invited to be involved
in mentoring students, marking project work or
delivering workshops and classes.
Entrepreneurial Education in Scotland PAGE 33
29 For more information seehttp://smallbusinesscharter.org/
Emerging recommendations
4.2.5
Universities develop a consistent entrepreneurial
ecosystemwith links outside the institution,
providing routes and pathways into industry that
will enable students to ?nd support to develop
their ideas and contacts.
a) Universities undertake a reviewof the cultures
that exist across different departments and
examine the degree to which these support the
development of an entrepreneurial ecosystem.
Best practice should be identi?ed and shared.
b) All departments supported to build links with
industry and external agencies, and to signpost
opportunities and experiences outside the
university to students on their courses.
c) Academic departments build closer working
relationships with business schools and
professional services within the university.
An entrepreneurial network with
representatives fromtechnology transfer
of?ces, incubators, careers and development
and alumni, as well as representatives from
learning and teaching boards and student
associations, could be an example of best
practice.
4.2.6
4.2.6 Universities, particularly through their
business schools, consider howthey can most
effectively play a role in providing Scotland’s
existing business leaders with high-quality
entrepreneurship education that fosters
world-class leadership capacity, growth
ambitions and creates strong foundations
for growth.
4.3 For enterpriseagencies
andbusiness support bodies
We suggest that:
4.3.1
Anational body, such as Entrepreneurial
Scotland, leads the creation and coordination
of an Entrepreneurship Education Forum(as
recommended in Section 4.1) to facilitate a
coordinated approach to entrepreneurship
education and skills for growth training.
a) That the Entrepreneurship Education Forum
consists of representatives fromacademic
institutions as well as enterprise agencies,
private business support agencies and industry
practitioners.
b) That this Forumtakes on responsibility for
coordinating entrepreneurship education and
skills for growth training to avoid confusion for
those seeking support. This will include
ensuring that pathways fromuniversity into
industry are well signposted and that agencies
are collaborating to deliver appropriate support
while avoiding duplication. Clear signposting to
support under key priority themes (e.g., sales
skills support, international growth) would be
useful.
4.3.2
Enterprise agencies work in partnership with
universities and private providers to deliver
targeted ‘skills for growth’ training for Scottish
businesses, assisting business leaders to develop
the skills and networks required for scaling up.
This may require that:
a) Enterprise agencies work closely with
universities to develop courses and executive
education programmes (such as those run by
MIT, Harvard and Babson College) suited to
Scottish SMEs, which can be delivered in a
business setting and made relevant. Sales
skills and accessing international markets
should be priority areas.
b) Enterprise agencies coordinate skills for
growth training delivered by universities,
drawing on private providers with speci?c
expertise to supplement and add value to
training programmes.
c) A national body coordinates and develops
networks between SMEs so that they can
support one another in a non-competitive
environment. Additionally, international
networks of SMEs would ease access to
global markets.
Entrepreneurial Education in Scotland PAGE 34
Entrepreneurial Education in Scotland PAGE 35
Appendix A:
Organisations represented at roundtables
The RSE would like to convey its thanks to the following organisations
and their representatives who took part in discussions that informed this report.
Entrepreneurial Scotland
Heriot-Watt University
The Hunter Centre for Entrepreneurship, University of Strathclyde
Interface Knowledge Connection
The Royal Society of EdinburghEnterprise FellowshipProgramme
The Saltire Foundation
ScottishEnterprise
The ScottishFunding Council
The ScottishInstitute for Enterprise
The University of Edinburgh
The University of EdinburghBusiness School
The University of EdinburghInformatics Forum
The University of EdinburghSchool of Engineering
The University of Strathclyde
The RSEwouldalso like to thankthe Saltire Fellows andScholars
andthe ScottishInstitute for Enterprise interns who provided their views
andexperiences by completing questionnaires.
Entrepreneurial Education in Scotland PAGE 36
Appendix B:
Organisations Represented at Roundtables
This paper has drawn upon the ?ndings of existing reports on entrepreneurship in Scotland and the UK,
including, but not limited to:
‘Scotland CANDO: Becoming a World-leading Entrepreneurial and Innovative Nation’,
Scottish Government, November 2013, available athttp://www.gov.scot/Publications/2013/11/7675
‘Increasing Innovation-Driven Entrepreneurship in Scotland’, The Regional Entrepreneurship Acceleration
Programme (REAP) report, REAPScotland Team, 2014, available athttp://www.hie.co.uk/business-support/entrepreneurship/mit-reap/
‘Taking Pride in the Job’, Universities Scotland, 2013, available athttp://www.universities-scotland.ac.uk/uploads/TakingPrideintheJobApril13.pdf
‘Entrepreneurial Impact: the role of MIT’, Edward BRoberts and Charles Eesley,
MIT Sloan School of Management, 2009, available athttp://www.kauffman.org/what-we-do/research/2009/08/entrepreneurial-impact-the-role-of-mit
‘Enterprise and Entrepreneurship Education: guidance for UKHigher Education providers’, QAA, 2012,
available athttp://www.qaa.ac.uk/en/Publications/Documents/enterprise-entrepreneurship-guidance.pdf
‘Voice of Small Business Member Survey – Scotland’, The Federation of Small Businesses (FSB), 2014,
available athttp://www.fsb.org.uk/member-survey-2014
‘An Agenda for Growth’, KPMGEnterprise in association with YouGov, 2014, available athttp://kpmg-22971.dev.iasprojects.com/knowledge-centre/report/an-agenda-for-growth/
‘Enterprise for All’, Lord Young for the Department of Business, Skills and Innovation, 2014, available athttps://www.gov.uk/government/publi...-all-the-relevance-of-enterprise-in-education
‘2015 – 2018 Business Plan: Building Scotland’s International Competitiveness’, Scottish Enterprise, 2015,
available athttp://www.scottish-enterprise.com/about-us/what-we-do/business-plan
‘Scotland’s Economic Strategy’, Scottish Government, March 2015, available athttp://www.gov.scot/Publications/2015/03/5984
‘Increasing the Vital 6 Percent: designing effective public policy to support high growth ?rms’,
RBrown, CMason, S Mawson, Nesta, 2014, available athttps://www.nesta.org.uk/sites/default/?les/working_paper_-_increasing_the_vital_6_percent.pdf
‘Global Entrepreneurship Monitor (GEM), Scotland 2013’, J Levie, University of Strathclyde Business School, 2014,
available athttps://www.strath.ac.uk/huntercentre/research/gem/
‘Business Growth Ambitions Amongst SMEs’, TBRand Qa Research for BIS, Invest NI,
Scottish Enterprise and the Welsh Government, 2012, available athttps://www.gov.uk/government/uploa...69-business-growth-ambitions-amongst-smes.pdf
Entrepreneurial Education in Scotland PAGE 37
Additional Information
Any enquiries about this DiscussionPaper shouldbe addressedto
SusanLennox, RSESenior Policy Of?cer, [email protected].
All RSE policy papers are published on the website www.royalsoced.org.uk.
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