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In this such a detailed outline pertaining to impact of entrepreneurship education alberta charney.
Alberta Charney
Gary D. Libecap
IMPACT OF
ENTREPRENEURSHIP
EDUCATION
A KAUFFMAN
RESEARCH SERIES
Alberta Charney is a researcher in the Economic and Business Research
Program at the Eller College of Business and Public Administration. She has
been with the University of Arizona since receiving her Ph.D. there. Her
academic publications cover a wide range of topics, including transportation,
taxation, econometric model building, forecasting accuracy, input-ouput
analysis, water issues, migration and manufacturing location. She is a member
of the American Economics Association, the Regional Science Association and
the International Regional Science Association.
Gary D. Libecap is the Anheuser Busch Professor of Entrepreneurship and
Director of the Karl Eller Center at the University of Arizona. He is also
Research Associate at the National Bureau of Economic Research. He received
his Ph.D. in 1976 from the University of Pennsylvania. Libecap has served in
numerous board and leadership positions, including the Economics Panel,
National Science Foundation; Board of Directors, Western Economics
Association; Board of Trustees, Economic History Association; and Co-Editor,
Journal of Economic History. Widely published, Libecap has received research
support from the National Science Foundation, World Bank, Earhart Foundation,
Center for Energy and Mineral Resources, Seagrant and the Pacific Institute.
He has held faculty positions at the University of Arizona, CalTech, USC, Texas
A&M, University of New Mexico and the Free University of Berlin. He is also
a member of the American Economics Association, Economic History
Association, Western Economics Association, Mont Pelerin and Cliometrics
Societies, National Bureau of Economic Research, American Law and Economics
Association, and International Society for the New Institutional Economics.
The Kauffman Center for Entrepreneurial Leadership is the nation’s
largest organization focused solely on developing, supporting and encouraging
entrepreneurship education and research. The Center’s nationally recognized
staff works with high-growth entrepreneurs, government policy makers,
entrepreneurial support organizations and leaders in entrepreneurship
education to develop and disseminate innovative, effective programs and
informational resources that enhance entrepreneurial skills and abilities at all
levels. The Center is fully funded by the Ewing Marion Kauffman Foundation
and was founded by Ewing Marion Kauffman, a successful entrepreneur whose
vision and values led to the creation of a $1 billion pharmaceutical company
from a start-up operation in the basement of his home. For more information,
visit the Center’s web site at www.entreworld.org.
The Researchers
Alberta Charney
Gary D. Libecap
The Kauffman Center for
Entrepreneurial Leadership
8
Today, no matter where you turn, stories abound of the enormous
social, economic and educational benefits of entrepreneurship. As a
result, entrepreneurship education programs are proliferating in
colleges and universities around the country. Whereas 15 years ago
only a handful of schools offered courses in entrepreneurship, today
more than 1,500 colleges and universities offer some form of
entrepreneurship training. There are currently more than 100 active
university-based entrepreneurship centers in the U.S. and more than
270 endowed positions in entrepreneurship, an increase of 120 percent
in just the last five years.
Despite the growing number of new and expanding educational
programs in this area, many schools have been slow to respond to
the increasing student and community interest. The growing number
of students shunning traditional employment opportunities to become
entrepreneurs has caught some business school faculty and
administrators off guard. Many are still questioning whether
entrepreneurship is worth the investment, whether entrepreneurship
training enhances their students’ abilities to compete in today’s job
market, and whether their entrepreneurship students make stronger
and more successful business leaders.
In 1999, Alberta Charney and Gary Libecap pondered these questions
as well. By all appearances, the Berger Entrepreneurship Program at
the University of Arizona was highly successful. But how had the
Program affected the entrepreneurship students it had graduated over
the years? Where were they now, what were they doing, and were they
faring better than other business school graduates? Charney and
Libecap further wondered how the entrepreneurship program had
impacted the University’s Eller College of Business and Public
Administration. What kind of return had the business school received
for its 16 years of investment in entrepreneurship education?
This report shares the findings from Charney and Libecap’s comparison
of University of Arizona business school graduates who completed the
Entrepreneurship
Education: Is the
Impact as Impressive
as the Demand?
1
“Entrepreneurship has become
one of the most sought-after
areas of study among collegiate
business students. Graduates of
these programs are not only
increasing in number, they are
reshaping our understanding of
market, technology and
management leadership. Bent
on realizing their own perceived
opportunities, they continue to
define the standard for business
innovation – and, by doing so,
will forever alter the competitive
landscape for future enterprise.”
— Michael Camp,
Director of Research,
Kauffman Center for
Entrepreneurial Leadership
Berger Entrepreneurship Program to other University of Arizona
business school graduates who were not involved in the Berger
Program. In short, the results of the investigation are stunning.
Whether you are a college dean seeking justification for the allocation
of limited resources ... an alumnus considering a donation for university
development opportunities ... a professor redesigning your course
curriculum ... or a student considering various majors and their prospects
for your professional career, you will find the results impressive.
The findings estimate that the Eller College of Business and Public
Administration at the University of Arizona received 34 percent more
outside funding – nearly $12 million – due to the existence and
activities of the Berger Entrepreneurship Program and its opportunity-
oriented, practical approach to business education. Surveys of deans,
department heads and development officers at the University of
Arizona also indicate that pedagogical innovations in entrepreneurship
have significantly improved the curriculum in other business disciplines,
including the MBA program.
On average, graduates of the Berger Entrepreneurship Program were
three times more likely to be involved in the creation of a new business
venture than were their non-entrepreneurship business school cohorts.
Controlling for the personal characteristics of the graduates and various
environmental factors, entrepreneurship education increased the
probability of an individual being instrumentally involved in a new
business venture by 25 percent over non-entrepreneurship graduates
(Figure 1). More specifically, entrepreneurship students were 11 percent
more likely than were non-entrepreneurship students to own their own
businesses after graduation (Figure 2).
Key Findings
Entrepreneurship
education attracts
substantial private-
sector financial
contributions.
Entrepreneurship
education produces
self-sufficient
enterprising
individuals.
Figure 1.
Entrepreneurship education
increases the formation of
new ventures
Figure 2.
Entrepreneurship education
increases the likelihood of
self-employment
2
Entrepreneurship education contributed to the growth of firms,
especially smaller emerging firms. On average, emerging companies
that were owned by or employed entrepreneurship graduates had
greater than five times the sales and employment growth than those
that employed non-entrepreneurship graduates (Figure 3). In addition,
larger firms paid entrepreneurship graduates significantly more than
they paid non-entrepreneurship graduates. Controlling for individual
factors, entrepreneurship graduates working for large firms earned
approximately $23,500 more per year than did other business
school graduates.
Entrepreneurship graduates received an average annual income
that was 27 percent higher than the average annual income of
non-entrepreneurship graduates. Controlling for personal characteristics,
entrepreneurship education at the University of Arizona increased annual
graduate income by $12,561. In addition, and perhaps more significantly,
entrepreneurship graduates accumulated 62 percent more in personal
assets after graduation than their non-entrepreneurship counterparts
(Figure 4). Entrepreneurship graduates who were employed with other
companies were more likely to be employed full-time, were generally
more satisfied with their employment opportunities and were less likely
to be employed in a government or non-profit organization.
Entrepreneurship graduates were significantly more apt to be involved
in developing new products than non-entrepreneurship graduates.
Entrepreneurship graduates spent more time in R&D related activities,
worked with products that had shorter life spans and were more often
employed full-time in high-tech industries. Controlling for other
Entrepreneurship
education produces
successful business and
industry leaders.
Entrepreneurship
education enhances a
graduate’s ability to
create wealth.
3
Entrepreneurship
education produces
champions of
innovation.
$50M $100M $150M $200M $250M $300M
$172,000
$278,000
Assets
A
v
e
r
a
g
e
s
Non-Entrepreneurship
Graduates
Entrepreneurship
Graduates
Figure 3.
Entrepreneurship education of
employee increases the sales
growth rate of emerging firms
(
In this such a detailed outline pertaining to impact of entrepreneurship education alberta charney.
Alberta Charney
Gary D. Libecap
IMPACT OF
ENTREPRENEURSHIP
EDUCATION
A KAUFFMAN
RESEARCH SERIES
Alberta Charney is a researcher in the Economic and Business Research
Program at the Eller College of Business and Public Administration. She has
been with the University of Arizona since receiving her Ph.D. there. Her
academic publications cover a wide range of topics, including transportation,
taxation, econometric model building, forecasting accuracy, input-ouput
analysis, water issues, migration and manufacturing location. She is a member
of the American Economics Association, the Regional Science Association and
the International Regional Science Association.
Gary D. Libecap is the Anheuser Busch Professor of Entrepreneurship and
Director of the Karl Eller Center at the University of Arizona. He is also
Research Associate at the National Bureau of Economic Research. He received
his Ph.D. in 1976 from the University of Pennsylvania. Libecap has served in
numerous board and leadership positions, including the Economics Panel,
National Science Foundation; Board of Directors, Western Economics
Association; Board of Trustees, Economic History Association; and Co-Editor,
Journal of Economic History. Widely published, Libecap has received research
support from the National Science Foundation, World Bank, Earhart Foundation,
Center for Energy and Mineral Resources, Seagrant and the Pacific Institute.
He has held faculty positions at the University of Arizona, CalTech, USC, Texas
A&M, University of New Mexico and the Free University of Berlin. He is also
a member of the American Economics Association, Economic History
Association, Western Economics Association, Mont Pelerin and Cliometrics
Societies, National Bureau of Economic Research, American Law and Economics
Association, and International Society for the New Institutional Economics.
The Kauffman Center for Entrepreneurial Leadership is the nation’s
largest organization focused solely on developing, supporting and encouraging
entrepreneurship education and research. The Center’s nationally recognized
staff works with high-growth entrepreneurs, government policy makers,
entrepreneurial support organizations and leaders in entrepreneurship
education to develop and disseminate innovative, effective programs and
informational resources that enhance entrepreneurial skills and abilities at all
levels. The Center is fully funded by the Ewing Marion Kauffman Foundation
and was founded by Ewing Marion Kauffman, a successful entrepreneur whose
vision and values led to the creation of a $1 billion pharmaceutical company
from a start-up operation in the basement of his home. For more information,
visit the Center’s web site at www.entreworld.org.
The Researchers
Alberta Charney
Gary D. Libecap
The Kauffman Center for
Entrepreneurial Leadership
8
Today, no matter where you turn, stories abound of the enormous
social, economic and educational benefits of entrepreneurship. As a
result, entrepreneurship education programs are proliferating in
colleges and universities around the country. Whereas 15 years ago
only a handful of schools offered courses in entrepreneurship, today
more than 1,500 colleges and universities offer some form of
entrepreneurship training. There are currently more than 100 active
university-based entrepreneurship centers in the U.S. and more than
270 endowed positions in entrepreneurship, an increase of 120 percent
in just the last five years.
Despite the growing number of new and expanding educational
programs in this area, many schools have been slow to respond to
the increasing student and community interest. The growing number
of students shunning traditional employment opportunities to become
entrepreneurs has caught some business school faculty and
administrators off guard. Many are still questioning whether
entrepreneurship is worth the investment, whether entrepreneurship
training enhances their students’ abilities to compete in today’s job
market, and whether their entrepreneurship students make stronger
and more successful business leaders.
In 1999, Alberta Charney and Gary Libecap pondered these questions
as well. By all appearances, the Berger Entrepreneurship Program at
the University of Arizona was highly successful. But how had the
Program affected the entrepreneurship students it had graduated over
the years? Where were they now, what were they doing, and were they
faring better than other business school graduates? Charney and
Libecap further wondered how the entrepreneurship program had
impacted the University’s Eller College of Business and Public
Administration. What kind of return had the business school received
for its 16 years of investment in entrepreneurship education?
This report shares the findings from Charney and Libecap’s comparison
of University of Arizona business school graduates who completed the
Entrepreneurship
Education: Is the
Impact as Impressive
as the Demand?
1
“Entrepreneurship has become
one of the most sought-after
areas of study among collegiate
business students. Graduates of
these programs are not only
increasing in number, they are
reshaping our understanding of
market, technology and
management leadership. Bent
on realizing their own perceived
opportunities, they continue to
define the standard for business
innovation – and, by doing so,
will forever alter the competitive
landscape for future enterprise.”
— Michael Camp,
Director of Research,
Kauffman Center for
Entrepreneurial Leadership
Berger Entrepreneurship Program to other University of Arizona
business school graduates who were not involved in the Berger
Program. In short, the results of the investigation are stunning.
Whether you are a college dean seeking justification for the allocation
of limited resources ... an alumnus considering a donation for university
development opportunities ... a professor redesigning your course
curriculum ... or a student considering various majors and their prospects
for your professional career, you will find the results impressive.
The findings estimate that the Eller College of Business and Public
Administration at the University of Arizona received 34 percent more
outside funding – nearly $12 million – due to the existence and
activities of the Berger Entrepreneurship Program and its opportunity-
oriented, practical approach to business education. Surveys of deans,
department heads and development officers at the University of
Arizona also indicate that pedagogical innovations in entrepreneurship
have significantly improved the curriculum in other business disciplines,
including the MBA program.
On average, graduates of the Berger Entrepreneurship Program were
three times more likely to be involved in the creation of a new business
venture than were their non-entrepreneurship business school cohorts.
Controlling for the personal characteristics of the graduates and various
environmental factors, entrepreneurship education increased the
probability of an individual being instrumentally involved in a new
business venture by 25 percent over non-entrepreneurship graduates
(Figure 1). More specifically, entrepreneurship students were 11 percent
more likely than were non-entrepreneurship students to own their own
businesses after graduation (Figure 2).
Key Findings
Entrepreneurship
education attracts
substantial private-
sector financial
contributions.
Entrepreneurship
education produces
self-sufficient
enterprising
individuals.
Figure 1.
Entrepreneurship education
increases the formation of
new ventures
Figure 2.
Entrepreneurship education
increases the likelihood of
self-employment
2
Entrepreneurship education contributed to the growth of firms,
especially smaller emerging firms. On average, emerging companies
that were owned by or employed entrepreneurship graduates had
greater than five times the sales and employment growth than those
that employed non-entrepreneurship graduates (Figure 3). In addition,
larger firms paid entrepreneurship graduates significantly more than
they paid non-entrepreneurship graduates. Controlling for individual
factors, entrepreneurship graduates working for large firms earned
approximately $23,500 more per year than did other business
school graduates.
Entrepreneurship graduates received an average annual income
that was 27 percent higher than the average annual income of
non-entrepreneurship graduates. Controlling for personal characteristics,
entrepreneurship education at the University of Arizona increased annual
graduate income by $12,561. In addition, and perhaps more significantly,
entrepreneurship graduates accumulated 62 percent more in personal
assets after graduation than their non-entrepreneurship counterparts
(Figure 4). Entrepreneurship graduates who were employed with other
companies were more likely to be employed full-time, were generally
more satisfied with their employment opportunities and were less likely
to be employed in a government or non-profit organization.
Entrepreneurship graduates were significantly more apt to be involved
in developing new products than non-entrepreneurship graduates.
Entrepreneurship graduates spent more time in R&D related activities,
worked with products that had shorter life spans and were more often
employed full-time in high-tech industries. Controlling for other
Entrepreneurship
education produces
successful business and
industry leaders.
Entrepreneurship
education enhances a
graduate’s ability to
create wealth.
3
Entrepreneurship
education produces
champions of
innovation.
$50M $100M $150M $200M $250M $300M
$172,000
$278,000
Assets
A
v
e
r
a
g
e
s
Non-Entrepreneurship
Graduates
Entrepreneurship
Graduates
Figure 3.
Entrepreneurship education of
employee increases the sales
growth rate of emerging firms
(