An Entrepreneurial Development Framework for Institutions of Higher Education

IntroductionWith increased globalization people haveinfrastructure supporting the nurturing of innovation and
seen the need to increase wealth creation especiallymaking skills. These involve designing, innovating,
within the underdeveloped Third World. It has alsocommunicating in groups, problem solving, face-to-face
become evident that neither the government nor thecommunication, idea generation and group-work (Ali,
formal sector can supply the necessary job creation2001:41). Brown and Duguid (1991) quoted by Ali
without a sustained effort and partnerships between all(2001:342) make use of the expression "communities
sectors of the economy. One means of creating workof practice" to describe the social context for
opportunities will be the development of entrepreneurialdeveloping work, learning and innovation. Lin, Li and
and innovative skills within the country. The creation ofChen (2004:4) and Markman and Baron (2003:291)
such job opportunities by encouraging entrepreneurialmake use of the term "social capital" to describe the
innovation has been well illustrated by Dana, Korot andability to establish networks of supporting relationships.
Tovstiga (2005:12) in Silicon Valley, Israel, SingaporeThis ability is seen as a means of mobilizing
and the Netherlands. These authors report that in theenvironmental resources to overcome obstacles and
narrow 35 mile by 10 mile corridor within Silicon Valleythreats within the entrepreneurial process. Others have
6,500 technology enterprises are located. Singapore isnoted how important social capital is in the creation of
home to almost 100,000 entrepreneurs and had a pernew business ventures. Lin, et al. (2004:4) recognize
capita GDP of US$42,948.00 during 2004 and anthe need for formal and informal funding relationships
annual growth rate of 8.8% (Singapore Statistics,within the business environment. Such entrepreneurs
2006).In addition higher education has become a primeare termed "business angels" for they gain access to
export commodity of total world services trade,required resources, such as capital investors, suitable
amounting to a staggering 3% (Grundling & Steynberg,distributors and talented employees from the external
2006:5). With the increased interest in entrepreneurialenvironment. Lin, et al. (2004:6) thus regard social
innovation as an economic driver there is a need tocapital as "entrepreneurial social infrastructure". Harris,
develop expertise within this area. Thus there is aForbes and Fletcher (2000:125-126) suggest that
need to develop entrepreneurial innovation knowledgeplanning "dampens" the entrepreneurial spirit and that
within higher education institutions to ensure theemergent problems tended to be better training
maintenance of a competitive edge in an undertriggers than planned approaches. It is proposed that
developed market. Dana, et al. (2005:10) definethe learning style for entrepreneurs should be one
knowledge as "the integration of information, ideas,using facilitators, learning by doing, interactive
experience, intuition, skills and lessons learned thatclassroom approaches, peer group work, problem
creates added value for a firm". In addition Dana et el.solving, grasping opportunities and holistic approaches. It
(2005) define innovation as "the process by whichis recommended that inputs should be made by
knowledge is transformed into new or significantlyoutside speakers and entrepreneurs (Harris, et al.,
modified products and/or services that establish the2000:126). Johnson (1987:31, in Harris et al., 2000) states
firm's competitive edge". It can thus be seen that it isthat an entrepreneur's planned approach to any
imperative that higher education in South Africaproblem should be problem awareness, problem
actively pursue a policy to encourage entrepreneurialdiagnosis, the development of solutions and the
innovation to ensure the creation of expertise, theselection of a solution. Once again the need for "an
development of new industries and the empowering ofemergent" approach rather than a "planned approach"
students to establish themselves within anis emphasized. In addition, Harris, et al. (2000:133)
entrepreneurial innovative culture. Higher education willemphasize the need for long standing close
be required to become a key player in domesticatingrelationships in the development of the entrepreneur.
knowledge and diffusing it into the economy in order toSuch partners can share vision, and serve as sounding
serve as engines for community development andboards for ideas and concerns. These relationships are
social renewal (Grundling & Steynberg, 2006:6).Problemvital for the development of innovative thinking. The
statementThe research question under discussion isfindings suggest that entrepreneurs must be trained in
formulated as What minimum requirements should bea less structured way, which involve group work, class
set in an entrepreneurial and innovation framework indiscussions, specialist input, a concentration of social
order to support entrepreneurial and innovationskills, communicating and conflict management. The
knowledge creation at institutions of highermethodology must involve face to face contact and
education?PurposeThis article attempts to develop athe developing of lasting relationships.Another factor
framework to encourage entrepreneurial thinking withinthat should be written into the curriculum is the ability to
a higher education environment, taking into accountdeal with problems that arise and then to reschedule
consideration policy and infrastructural requirements,goals so as to accommodate the new situation. This is
knowledge creation fundamentals and institutionalclearly illustrated by Ireland, Kuratko and Morris
arrangements.Policy interventionPolicy initiatives within(2006:12) showing the presence of internal and
higher education institutions are essential to establishexternal triggers of corporate entrepreneurship.
guidance for entrepreneurs, funding agencies, industry,External triggers that encourage entrepreneurship arise
labour in general and for students and institutions offrom developments in the external environment. These
higher education in particular. From a higher educationinclude diminishing opportunities, rapid changes in
perspective government as well as institutional policytechnology, labour shortages, aggressive moves by
requirements will be discussed incompetitors, change in the market structure or
brief.·Government policiesIf this is to beregulatory threats. Internal triggers include employee
accomplished it will require government intervention torewards, directives from managers, tension between
construct policies which should include the reduction ofstaff, problems with cost control, etc. Ireland, et al.
taxation in the form of capital gains tax rate, providing(2006:12). Triggers for entrepreneurship may be
incentives for increased spending on research andsummed up in the statement "necessity is the mother
development, encouraging active venture capitalof invention". This once again emphasis the need for
markets, an alteration of the 'hiring and firing' labourtrainers to concentrate on the entrepreneurial process
regulations, and encouraging the spending on newrather than the content, with particular emphasis on
technology shares (Da Rin, Nicodano & Sembenelli,change, the unexpected and resolving problems that
2005:8).·The higher education institution policiesTheemerge within any particular process.Markman and
higher education institution must provide a workingBaron (2003:288) regard self-efficacy as an important
atmosphere in which entrepreneurship can thrive.success factor in developing entrepreneurs.
Venkataraman (2003:154) proposes that it is notSelf-efficacy is defined as "the extent to which
merely the injection of capital that enhances thepersons believe that they can organize effectively,
development of entrepreneurship. Rather, it is theexecute actions to produce given attainments"
tangible infrastructural essentials such as capital(Bandura, 1997 quoted by Markman and Baron
markets, advanced telecommunications, sound legal2003:288). Successful entrepreneurs will have high
and transportation systems. In addition, intangibleself-efficacy and tend to believe that their actions will
components must be in place. These intangibles arelead to a successful venture. It is also suggested that
access to novel ideas, informal forums, role models,entrepreneurs need to recognize opportunities from
region specific opportunities, access to large markets,possible businesses. In addition it is suggested that
safety nets and executive leadership. As policy withinentrepreneurs need perseverance and need to be
the institution is developed it must consider and includeable to overcome adversity and uncertainty. The
a planning process to accommodate thesecurriculum should thus contain training on self esteem,
essentials.Policy must also augment the entrepreneurialreliability, perseverance, overcoming setbacks, having a
culture within the higher education institution as a newvision, setting goals and rescheduling if things go
mindset of students must be established from one ofwrong.Boussouara and Deakins (1999:204) suggest
expecting to be employed, to one of providing workthat a gradual approach into a high technology
opportunities for others. Technology licensing officesbusiness can be an advantage in that it allows time to
(TLOs) must be established at the higher educationdevelop contacts, strategy, and networks as well as
institutions. Stanford University sponsored researchgives time to acquire funding and income. The latter
expenditures of US$391 million generated 25 TLO startauthors emphasize the need to acquire market-based
ups in 1997 (Gregorio & Shane, 2003:209). Anknowledge for a successful business (Boussouara &
investment in patent rights by the higher educationDeakins, 1999:205). It is thus recommended that
institutions will ensure future capital investments into thenetworks and external business agents present
institution. Intellectual property (IP) policies should berelevant market research to the trainees. These
framed so as to capture the wealth generated and tofindings should be brainstormed and shared in the
distribute it equitably between investors, partners, thelarger group.ConclusionIn this article an attempt has
university and the entrepreneur. Such rewards willbeen made to develop a framework for the
generate future interest for both the investors and thedevelopment of entrepreneurial thinking within a higher
entrepreneurs. Policies, procedures and networkeducation environment. This framework needs to be
contacts to capture venture capital must besupported by government policy initiatives and include
established.Research and Development policies intaxation incentives for entrepreneurs, encouraging
entrepreneurship must be refined and focused.investment in research and development, incentives for
Currently, the focus of entrepreneurial research atindustry for active venture capital and alterations to the
Tshwane University of Technology in South Africalabour law to accommodate small entrepreneurial
falls within the three niche areas of business clustering,industries. In addition techno-parks should be developed
business development and management of innovation.in conjunction with government to expose students to
In each of these niche areas it will be necessary tothe entrepreneurial culture.Research should be done
develop Masters and Doctorate programmes inwithin the business development niche area to
entrepreneurship and innovation. This in turn will mean ainvestigate these policies and communicate the needs
need for the improvement of the staff qualificationto government. If government officials are participating
profile within these areas. Along with the Masters andin the knowledge node it might provide the necessary
Doctorate programmes, accredited research outputsexposure to government.Policy initiatives from within
must be produced in entrepreneurship and innovationthe higher education institution should establish the
(Grundling & Steynberg, 2006:6). In addition to theknowledge node which should include academic
Masters degrees in Entrepreneurship and the Mastersspecialists, research foundations, relevant government
degree in Comparative Local Development, a Mastersofficials, industrial partners, specialists from industry,
degree in Cognitive Reasoning should be consideredforeign investors, community forums, labour unions,
for the future. Such a course should include a thoroughfunding agencies, students and potential entrepreneurs.
foundation in finance reasoning along with creativeInformation networks connecting entrepreneurs to
thinking and business planning.Institutional structures toventure capitalists should be established within this
be establishedThe higher education institution will haveknowledge node. Intellectual Property policies should be
to establish itself as a seamless knowledge node intodeveloped by the business development niche area to
which a variety of parties can contribute. Partiesensure that possible TLO start-ups within the higher
contributing to such a knowledge node might includeeducation institution are protected and that patenting,
industrial partners, specialists from industry, relevantmarketing or other up-front costs are paid by the
government agencies, foreign investors, communityhigher education institution or associated enterprises.
forums, labour unions, academic specialists, researchThe higher education institution could liaise with the
foundations, funding agencies, students and potentialInnovation Hub established in conjunction with the CSIR.
entrepreneurs. Such a node would provide theA cooperation agreement could benefit both parties.
necessary contact between entrepreneurs, fundingResearch should be carried out by the business
agencies, industry and labour. This will ensure exposureclustering niche area to select the most appropriate
of research and innovative ideas to the relevantcombinations and networking within the knowledge
parties. It would also provide a relevant export/importnode.To ensure intellectual eminence the correct
platform for entrepreneurship within the country. Inresearchers, academics and industrialists should be
addition to this, regular colloquia should be held to allowchosen within the entrepreneurship cluster. Incubators
potential entrepreneurs to expose their innovativeand TLOs should be founded to "ripen' developing
ideas to the funding agencies. An information networktechnologies and to form small innovative industries.
connecting entrepreneurs to venture capitalists shouldResearch within this area could be done by the niche
be established within this knowledge node.Such forumsareas business development and management of
would allow industrial partners to presentinnovation.A funding agency for the entrepreneurship
commercially-oriented research proposals to the higherinnovation (previously termed the institutional
education institution which funding agencies in turnfoundation) could be located close to the industry
would be willing to fund. Gregorio and Shane (2003:212)partners for fundraising. All three niche areas should be
also emphasize the need for the higher educationactively networked with industries on an ongoing basis,
institution to demonstrate intellectual eminence. It iscommunicating needs and proposals.A teaching
suggested that better quality researchers are morestrategy should be developed to foster tacit
likely to exploit inventions than lesser qualifiedknowledge development. Group work, problem solving,
researchers. The intellectual eminence also makes itidea generation, innovating, designing and face to face
easier for researchers involved to start enterprisescommunication should be extensively used. Smaller
and to exploit their inventions (Gregorio & Shane,classrooms need to be utilized allowing for group work.
2003:212). In addition, more eminent researchersCurricula should include topics like self efficacy,
provide a better knowledge base and this in turn willperseverance and the need to overcome adversity. In
attract better qualified researchers and students. Toaddition market-based knowledge should be presented
ensure an intellectual eminence of their outputs, higherby specialists from the industry on an ongoing basis.
education institutions should select studentsNetworking should be a normal part of the curriculum
carefully.The higher education institution should alsoand will allow venture capitalists to be connected to
encourage the development of incubators, either closethe innovations developed within the knowledge node.If
to the institution or close to the involved industry. ThisSouth Africa and institutions of higher education do not
will certainly influence the start up capital expenditure.see the need to develop entrepreneurship within all
Gregorio and Shane (2003:213) suggest that suchcommunities, people may be delegated to a life of
incubators would allow entrepreneurs to "ripen"poverty, with no opportunity to work or to develop
technologies in close proximity to inventors andSouth Africa's rich natural resources for future
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