An Entrepreneurial Development Framework for Institutions of Higher Education

IntroductionWith increased globalization peoplenurturing of innovation and making skills. These
have seen the need to increase wealth creationinvolve designing, innovating, communicating in
especially within the underdeveloped Third World.groups, problem solving, face-to-face
It has also become evident that neither thecommunication, idea generation and group-work
government nor the formal sector can supply the(Ali, 2001:41). Brown and Duguid (1991) quoted by
necessary job creation without a sustained effortAli (2001:342) make use of the expression
and partnerships between all sectors of the"communities of practice" to describe the social
economy. One means of creating workcontext for developing work, learning and
opportunities will be the development ofinnovation. Lin, Li and Chen (2004:4) and Markman
entrepreneurial and innovative skills within theand Baron (2003:291) make use of the term
country. The creation of such job opportunities by"social capital" to describe the ability to establish
encouraging entrepreneurial innovation has beennetworks of supporting relationships. This ability is
well illustrated by Dana, Korot and Tovstigaseen as a means of mobilizing environmental
(2005:12) in Silicon Valley, Israel, Singapore and theresources to overcome obstacles and threats
Netherlands. These authors report that in thewithin the entrepreneurial process. Others have
narrow 35 mile by 10 mile corridor within Siliconnoted how important social capital is in the
Valley 6,500 technology enterprises are located.creation of new business ventures. Lin, et al.
Singapore is home to almost 100,000(2004:4) recognize the need for formal and
entrepreneurs and had a per capita GDP ofinformal funding relationships within the business
US$42,948.00 during 2004 and an annual growthenvironment. Such entrepreneurs are termed
rate of 8.8% (Singapore Statistics, 2006).In"business angels" for they gain access to required
addition higher education has become a primeresources, such as capital investors, suitable
export commodity of total world services trade,distributors and talented employees from the
amounting to a staggering 3% (Grundling &external environment. Lin, et al. (2004:6) thus
Steynberg, 2006:5). With the increased interest inregard social capital as "entrepreneurial social
entrepreneurial innovation as an economic driverinfrastructure". Harris, Forbes and Fletcher
there is a need to develop expertise within this(2000:125-126) suggest that planning "dampens"
area. Thus there is a need to developthe entrepreneurial spirit and that emergent
entrepreneurial innovation knowledge within higherproblems tended to be better training triggers
education institutions to ensure the maintenancethan planned approaches. It is proposed that the
of a competitive edge in an under developedlearning style for entrepreneurs should be one
market. Dana, et al. (2005:10) define knowledge asusing facilitators, learning by doing, interactive
"the integration of information, ideas, experience,classroom approaches, peer group work, problem
intuition, skills and lessons learned that createssolving, grasping opportunities and holistic
added value for a firm". In addition Dana et el.approaches. It is recommended that inputs should
(2005) define innovation as "the process by whichbe made by outside speakers and entrepreneurs
knowledge is transformed into new or significantly(Harris, et al., 2000:126). Johnson (1987:31, in Harris
modified products and/or services that establishet al., 2000) states that an entrepreneur's planned
the firm's competitive edge". It can thus be seenapproach to any problem should be problem
that it is imperative that higher education in Southawareness, problem diagnosis, the development
Africa actively pursue a policy to encourageof solutions and the selection of a solution. Once
entrepreneurial innovation to ensure the creationagain the need for "an emergent" approach rather
of expertise, the development of new industriesthan a "planned approach" is emphasized. In
and the empowering of students to establishaddition, Harris, et al. (2000:133) emphasize the
themselves within an entrepreneurial innovativeneed for long standing close relationships in the
culture. Higher education will be required todevelopment of the entrepreneur. Such partners
become a key player in domesticating knowledgecan share vision, and serve as sounding boards
and diffusing it into the economy in order tofor ideas and concerns. These relationships are
serve as engines for community developmentvital for the development of innovative thinking.
and social renewal (Grundling & Steynberg,The findings suggest that entrepreneurs must be
2006:6).Problem statementThe research questiontrained in a less structured way, which involve
under discussion is formulated as What minimumgroup work, class discussions, specialist input, a
requirements should be set in an entrepreneurialconcentration of social skills, communicating and
and innovation framework in order to supportconflict management. The methodology must
entrepreneurial and innovation knowledge creationinvolve face to face contact and the developing
at institutions of higher education?PurposeThisof lasting relationships.Another factor that should
article attempts to develop a framework tobe written into the curriculum is the ability to deal
encourage entrepreneurial thinking within a higherwith problems that arise and then to reschedule
education environment, taking into accountgoals so as to accommodate the new situation.
consideration policy and infrastructuralThis is clearly illustrated by Ireland, Kuratko and
requirements, knowledge creation fundamentalsMorris (2006:12) showing the presence of internal
and institutional arrangements.Policyand external triggers of corporate
interventionPolicy initiatives within higher educationentrepreneurship. External triggers that encourage
institutions are essential to establish guidance forentrepreneurship arise from developments in the
entrepreneurs, funding agencies, industry, labour inexternal environment. These include diminishing
general and for students and institutions of higheropportunities, rapid changes in technology, labour
education in particular. From a higher educationshortages, aggressive moves by competitors,
perspective government as well as institutionalchange in the market structure or regulatory
policy requirements will be discussed inthreats. Internal triggers include employee
brief.·Government policiesIf this is to berewards, directives from managers, tension
accomplished it will require governmentbetween staff, problems with cost control, etc.
intervention to construct policies which shouldIreland, et al. (2006:12). Triggers for
include the reduction of taxation in the form ofentrepreneurship may be summed up in the
capital gains tax rate, providing incentives forstatement "necessity is the mother of invention".
increased spending on research and development,This once again emphasis the need for trainers to
encouraging active venture capital markets, anconcentrate on the entrepreneurial process rather
alteration of the 'hiring and firing' labour regulations,than the content, with particular emphasis on
and encouraging the spending on new technologychange, the unexpected and resolving problems
shares (Da Rin, Nicodano & Sembenelli,that emerge within any particular
2005:8).·The higher education institutionprocess.Markman and Baron (2003:288) regard
policiesThe higher education institution mustself-efficacy as an important success factor in
provide a working atmosphere in whichdeveloping entrepreneurs. Self-efficacy is defined
entrepreneurship can thrive. Venkataramanas "the extent to which persons believe that they
(2003:154) proposes that it is not merely thecan organize effectively, execute actions to
injection of capital that enhances the developmentproduce given attainments" (Bandura, 1997 quoted
of entrepreneurship. Rather, it is the tangibleby Markman and Baron 2003:288). Successful
infrastructural essentials such as capital markets,entrepreneurs will have high self-efficacy and tend
advanced telecommunications, sound legal andto believe that their actions will lead to a
transportation systems. In addition, intangiblesuccessful venture. It is also suggested that
components must be in place. These intangiblesentrepreneurs need to recognize opportunities
are access to novel ideas, informal forums, rolefrom possible businesses. In addition it is
models, region specific opportunities, access tosuggested that entrepreneurs need perseverance
large markets, safety nets and executiveand need to be able to overcome adversity and
leadership. As policy within the institution isuncertainty. The curriculum should thus contain
developed it must consider and include a planningtraining on self esteem, reliability, perseverance,
process to accommodate these essentials.Policyovercoming setbacks, having a vision, setting
must also augment the entrepreneurial culturegoals and rescheduling if things go
within the higher education institution as a newwrong.Boussouara and Deakins (1999:204) suggest
mindset of students must be established fromthat a gradual approach into a high technology
one of expecting to be employed, to one ofbusiness can be an advantage in that it allows
providing work opportunities for others.time to develop contacts, strategy, and networks
Technology licensing offices (TLOs) must beas well as gives time to acquire funding and
established at the higher education institutions.income. The latter authors emphasize the need to
Stanford University sponsored researchacquire market-based knowledge for a successful
expenditures of US$391 million generated 25 TLObusiness (Boussouara & Deakins, 1999:205). It is
start ups in 1997 (Gregorio & Shane, 2003:209).thus recommended that networks and external
An investment in patent rights by the higherbusiness agents present relevant market research
education institutions will ensure future capitalto the trainees. These findings should be
investments into the institution. Intellectualbrainstormed and shared in the larger
property (IP) policies should be framed so as togroup.ConclusionIn this article an attempt has been
capture the wealth generated and to distribute itmade to develop a framework for the
equitably between investors, partners, thedevelopment of entrepreneurial thinking within a
university and the entrepreneur. Such rewards willhigher education environment. This framework
generate future interest for both the investorsneeds to be supported by government policy
and the entrepreneurs. Policies, procedures andinitiatives and include taxation incentives for
network contacts to capture venture capital mustentrepreneurs, encouraging investment in research
be established.Research and Development policiesand development, incentives for industry for
in entrepreneurship must be refined and focused.active venture capital and alterations to the labour
Currently, the focus of entrepreneurial research atlaw to accommodate small entrepreneurial
Tshwane University of Technology in South Africaindustries. In addition techno-parks should be
falls within the three niche areas of businessdeveloped in conjunction with government to
clustering, business development and managementexpose students to the entrepreneurial
of innovation. In each of these niche areas it willculture.Research should be done within the
be necessary to develop Masters and Doctoratebusiness development niche area to investigate
programmes in entrepreneurship and innovation.these policies and communicate the needs to
This in turn will mean a need for the improvementgovernment. If government officials are
of the staff qualification profile within these areas.participating in the knowledge node it might
Along with the Masters and Doctorateprovide the necessary exposure to
programmes, accredited research outputs mustgovernment.Policy initiatives from within the higher
be produced in entrepreneurship and innovationeducation institution should establish the knowledge
(Grundling & Steynberg, 2006:6). In addition to thenode which should include academic specialists,
Masters degrees in Entrepreneurship and theresearch foundations, relevant government
Masters degree in Comparative Localofficials, industrial partners, specialists from
Development, a Masters degree in Cognitiveindustry, foreign investors, community forums,
Reasoning should be considered for the future.labour unions, funding agencies, students and
Such a course should include a thoroughpotential entrepreneurs. Information networks
foundation in finance reasoning along with creativeconnecting entrepreneurs to venture capitalists
thinking and business planning.Institutionalshould be established within this knowledge node.
structures to be establishedThe higher educationIntellectual Property policies should be developed
institution will have to establish itself as a seamlessby the business development niche area to
knowledge node into which a variety of partiesensure that possible TLO start-ups within the
can contribute. Parties contributing to such ahigher education institution are protected and that
knowledge node might include industrial partners,patenting, marketing or other up-front costs are
specialists from industry, relevant governmentpaid by the higher education institution or
agencies, foreign investors, community forums,associated enterprises. The higher education
labour unions, academic specialists, researchinstitution could liaise with the Innovation Hub
foundations, funding agencies, students andestablished in conjunction with the CSIR. A
potential entrepreneurs. Such a node wouldcooperation agreement could benefit both parties.
provide the necessary contact betweenResearch should be carried out by the business
entrepreneurs, funding agencies, industry andclustering niche area to select the most
labour. This will ensure exposure of research andappropriate combinations and networking within
innovative ideas to the relevant parties. It wouldthe knowledge node.To ensure intellectual
also provide a relevant export/import platformeminence the correct researchers, academics and
for entrepreneurship within the country. In additionindustrialists should be chosen within the
to this, regular colloquia should be held to allowentrepreneurship cluster. Incubators and TLOs
potential entrepreneurs to expose their innovativeshould be founded to "ripen' developing
ideas to the funding agencies. An informationtechnologies and to form small innovative
network connecting entrepreneurs to ventureindustries. Research within this area could be done
capitalists should be established within thisby the niche areas business development and
knowledge node.Such forums would allow industrialmanagement of innovation.A funding agency for
partners to present commercially-orientedthe entrepreneurship innovation (previously
research proposals to the higher educationtermed the institutional foundation) could be
institution which funding agencies in turn would belocated close to the industry partners for
willing to fund. Gregorio and Shane (2003:212) alsofundraising. All three niche areas should be actively
emphasize the need for the higher educationnetworked with industries on an ongoing basis,
institution to demonstrate intellectual eminence. Itcommunicating needs and proposals.A teaching
is suggested that better quality researchers arestrategy should be developed to foster tacit
more likely to exploit inventions than lesserknowledge development. Group work, problem
qualified researchers. The intellectual eminence alsosolving, idea generation, innovating, designing and
makes it easier for researchers involved to startface to face communication should be extensively
enterprises and to exploit their inventionsused. Smaller classrooms need to be utilized
(Gregorio & Shane, 2003:212). In addition, moreallowing for group work. Curricula should include
eminent researchers provide a better knowledgetopics like self efficacy, perseverance and the
base and this in turn will attract better qualifiedneed to overcome adversity. In addition
researchers and students. To ensure an intellectualmarket-based knowledge should be presented by
eminence of their outputs, higher educationspecialists from the industry on an ongoing basis.
institutions should select students carefully.TheNetworking should be a normal part of the
higher education institution should also encouragecurriculum and will allow venture capitalists to be
the development of incubators, either close to theconnected to the innovations developed within the
institution or close to the involved industry. Thisknowledge node.If South Africa and institutions of
will certainly influence the start up capitalhigher education do not see the need to develop
expenditure. Gregorio and Shane (2003:213)entrepreneurship within all communities, people
suggest that such incubators would allowmay be delegated to a life of poverty, with no
entrepreneurs to "ripen" technologies in closeopportunity to work or to develop South Africa's
proximity to inventors and specialists.Therich natural resources for future
establishment of technology parks could begenerations.ReferencesALI, Y. 2001. The intranet
instituted at the institution. Dana, et al. (2005:12)and the management of making and using skills.
report that the first technology parks wereJournal of Knowledge Management,
established in the Netherlands. It is hardly5(4):338-348.BANDURA, A. 1997. Self-efficacy:
surprising that the Netherlands is one of theThe exercise of control. New York: W.H. Freeman
leading nations in promoting entrepreneurship,& Co.BOUSSOUARA, M. & DEAKINS, D. 1999.
comparing favourably with Israel, Singapore andMarket-based learning, entrepreneurship and the
Silicone Valley. Perhaps such parks could behigh technology small firm. International Journal of
established in conjunction with the governmentEntrepreneurial Behaviour & Research.
and serve to expose students to the5(4):204-223.BROWN, J.S. & DUGUID, P. 1991.
entrepreneurial culture.Information networksOrganisational learning and community-of-practice;
connecting entrepreneurs to venture capitaliststowards a unified view of working, learning and
should be established within the higher educationinnovation. Organization Science, 2(1):40-57.DANA,
institution. Dushnitsky and Lenox (2004:618)L-P., KOROT, L. & TOVSTIGA, G. 2005. A
reinforce this view. Gregorio and Shane (2003:214)cross-national comparison of knowledge
also recommend that in exchange for taking anmanagement practices. International Journal of
equity stake in TLO start-ups the institution shouldManpower, 26(1):10-22.DA RIN, M., NICODANO, G.
pay patenting, marketing or other up-front costs.& SEMBENELLI A. 2005. Public policy and the
These measures would encourage the formationcreation of active venture capital markets. Journal
of start-up enterprises. Furthermore, locating aof Public Economics. Article in press.DUSHNITSKY,
higher education institutional foundation presence inG. & LENOX, M.J. 2005. When do incumbents learn
physical proximity to the enterprises donating thefrom entrepreneurial ventures? Corporate venture
capital might be an advantage (Gregorio & Shane,capital and investing firm innovation rates.
2003:211).Strategy to develop an entrepreneurialResearch Policy, 34:615-639.GREGORIO, D.D. &
innovative culture·Re-curriculation of syllabiSHANE, S. 2003. Why do some universities
within Entrepreneurship programmesWhen traininggenerate more start-ups than others? Research
entrepreneurs two realms of knowledge should bePolicy, 32:209-227.GRUNDLING, J.P. &
recognized, "tacit" and "explicit". "Explicit knowledgeSTEYNBERG, L. 2006. MTech Entrepreneurship,
is easily identifiable, easy to articulate, capture andEntrepreneurial Techniques VA. Pretoria: Centre
share. By contrast, tacit knowledge consistsfor Entrepreneurship, Tshwane University of
predominately of intuition, feelings, perceptions andTechnology.HARRIS, S., FORBES, T & FLETCHER,
beliefs, often difficult to express and thereforeM. 2000. Taught and enacted strategic approaches
difficult to capture and transfer. Of the two, tacitin young enterprises. International Journal of
knowledge carries the greater value in that it isEntrepreneurial Behaviour & Research,
the essence of innovation" (Dana et al., 2005:10).6(3):125-145.IRELAND, R.D., KURATKO, D.F. &
Perhaps an illustration given by Ali (2001:339)AND MORRIS, M.H. 2006. A health audit for
serves to illustrate the difference between thecorporate entrepreneurship: Innovation at all levels.
skills involved in producing an artifact. The engineerPart 1. Journal of Business Strategy,
is a man of action developing mental skills but27(1):10-17.JOHNSON, J.M.G. 1987. Entrepreneurial
seldom having the opportunity to develop manualintentions and outcomes: A comparative causal
skills. The craftsman uses his hands more than hismapping study. Journal of Management Studies,
head, tools more than instruments and rarely uses34(6):895-920.LIN, B-W., LI, P-C. & CHEN, J.S.
science or mathematics. Both are geared towards2004. Social capital. Capabilities, and entrepreneurial
inventing. The engineer is concerned with ideasstrategies: A study of Taiwanese high-tech new
and artifacts, while the craftsman is concernedventures. Technological Forecasting and social
with the making of artefacts. The craftsman haschange. Article in press.MARKMAN, G.D. & BARON,
no ready made methods and the technique isR.A. 2003. Person-entrepreneurship fit: Why some
devised during the process. The engineer drawspeople are more successful as entrepreneurs than
mainly on explicit scientific skills while theothers. Human Resource Management Review,
craftsman draws on intuitive, tacit knowledge.13:281-301.SINGAPORE STATISTICS. 2006. www
This person is involved in the creation of/singstat.gov.sg/keystats/annual/indicators.html#
something new, an innovative skill. The engineer'seconomic%20indicators Accessed on 28/01
plans and blueprints might well involve tactic06.VENKATARAMAN, S. 2003. Regional
knowledge.In curriculum design one musttransformation through technological
recognize the difference between infrastructureentrepreneurship. Journal of Business Venturing.
supporting recursive skills which are typically19:153-167.
routine in nature and infrastructure supporting the