BRITISH INDIAN AND CHINESE STUDENT, GRADUATE ANDACADEMIC INTERNATIONAL ENTREPRENEURIAL ACTIVITY

Dr. Stella Mascarenhas-KeyesDepartment for Universities, Innovation and Skills and Centre for

Research in Ethnic Minority Entrepreneurship, de Montfort University12.3.2008

STRUCTURE OF PRESENTATION

• Aims of the Research and Concepts• Policy Context• Drivers of Productivity• Research Methods• Types of Entrepreneurial Activity• Characteristics of Entrepreneurial Activity• Cultural Capital and Social Networks• Barriers to Entrepreneurship and Solutions

AIMS OF THE RESEARCH

• Government sponsored research: inform policy• GENERIC: To contribute to the evidence base on student,

graduate and academic entrepreneurship• SPECIFIC: Focus on British Indian and British Chinese

– Identify patterns and processes of British Indian (BI) and British Chinese (BC) student, graduate and academic international entrepreneurship

– Role they play in promoting UK productivity– Facilitators and barriers to international entrepreneurship

CONCEPTS

• Entrepreneurship– Patents, trademarks, licensing, start ups

• Internationalisation– Born global, become global, aspire to become

global, start overseas first

• British Indian and British Chinese• UK domiciled• Mainly second generation

POLICY CONTEXT

• Prosperity for all• Productivity lower than USA, France, Germany

therefore need to close gap• Shift in the economy needed from

manufacturing to service-led economy and high value added industry – skilled people key to this (Leitch 2006)

• Universities have a role to play hence third stream funding

DRIVERS OF PRODUCTIVITY• ENTERPRISE - overall low levels of enterprise, BI and BC higher levels that WB

• COMPETITION (domestic and international) – less international business but Asian higher than WB

• SKILLS – overall low levels, BC & BI higher than WB• INNOVATION – overall low levels but ethnic minority businesses higher than non-EMB

business• INVESTMENT – overall less investment. BI and BC have less difficulty accessing finance

• “..... There is no single factor holding back UK productivity performance. The productivity bap is the cumulative result of a series of historic weaknesses. The result has been a failure to make the most of high value added business opportunities. If productivity is to improve, then the UK has to be more adept at seizing those opportunities” (DTI 2003:10)

RESEARCH METHODS• review of literature and policy documents

• commissioned further analysis of secondary datasets: Labour Force Survey, Annual Small Business Survey, Global Entrepreneurship Monitor, Destination of Higher Education Leavers but no robust national quantitative data on student entrepreneurship

• 150 interviews mainly in England, about 25 in China (Shanghai, Beijing, Shenzen, Hong Kong of students, graduates, academics, government officials, university staff – multi chain sampling

• Attendance at a number of conferences and conducted informal interviews – social anthropological techniques

• Self as Informant: Reflection on 40 incidents of knowledge transfer by researcher

TYPES OF ENTREPRENEURIAL ACTIVITY

• Science based: holistic health care centre; new cancer screening device

• Engineering: new device for blind people; environmental technology

• Computer services: data roaming; web design• Professional services: international business

support consultancy• Creative industries: designer retail

Chinese entrepreneurship examples

• Kenneth: Computer science graduate - data roaming business, 3 staff in UK, 16 in Beijing

• Philip: Life Science Professor – new cancer screening device – potential manufacture and trials in China

• Francis: UK graduate with computing business in Shanghai, wants to expand to UK

• Carla: UK graduate with translation business in Beijing, wants to expand to UK

CHARACTERISTICS: ENTREPRENEURSHIP AND INVESTMENT

• Entrepreneurship – Timing varies, with greatest among graduates– Opportunity entrepreneurship, some necessity

• Investment– Mainly resources of owner/partner/directors– Family and friends but want independence– Some debt and equity finance– Micro-finance through SPEED for students

CHARACTERISTICS: SKILLS AND INNOVATION

• Skills– Degree directly relevant– Degree has generic relevance– Enterprise skills through university/parents biz

• Innovation– Focus is on academic research– Innovation potential of non-research students and

graduates

CHARACTERISTICS: COMPETITION

BI and BC have advantages Cultural capital & strategic manipulation of

identity

Large endowment of social networks– Bonding: national/international/bilateral/multilateral– Bridging: networks with other communities– Linking: with people with power and influence

LEVERAGING SOCIAL NETWORKS: COMPETITIVE ADVANTAGE

• Choice of Location – less psychic distance, more conducive environment, ideological commitment

• Hospitality• Information and market intelligence• Partner and staff recruitment• Collaborative research

DRIVER: INVESTMENT BARRIER 1: LACK OF CO-ORDINATED POLICY

EVIDENCE

• Silo approach to university-generated entrepreneurship: student, graduate, academic

• Project approach which means staff supporting entrepreneurship always on short term contracts

RECOMMENDATION

• Co-ordinated and comprehensive approach to policy formulation and implementation. More joined up government

DRIVER: INVESTMENT BARRIER 2: LACK OF FUNDING

• Students/grads –ltd funds, no collateral, debt, attraction of good jobs

• BI/BC – more from poor backgrounds• Academics – lack of proof of concept fundingRecommendation• Develop micro-finance schemes/golden hellos• More SPEED programmes• More proof of concept funding -eg ICUK

DRIVER : ENTREPRENEURSHIP BARRIER 3: LACK OF SUPPORT FOR ENTREPRENEURSHIP

• Parents/tutors averse• Lack of sufficient mentoring support• BI/BC lower self-employment vs WBRecommendation• Raise parents awareness• Embed enterprise education in curricula• Re-examine BERR PSA 6 and 10

DRIVER : INNOVATION BARRIER 4: LACK OF AWARENESS, RECOGNITION, INCENTIVES

• Lack of incentives for academic staff• Lack of recognition of non-research students’

innovation potential• Lack of knowledge of IPRecommendations• Include entrepreneurship in promotion criteria• Increase central support for students• Provide awareness raising programmes

DRIVER : SKILLS BARRIER 5: LACK

OF POOL OF INDIGENOUS SCIENTISTS

• Lack of sufficient pool of indigenous scientists• India/China incentives for returnees• BI high proportion in SET but lower

progression to research vs BCRecommendation• continue interventions to increase A level SET• Encourage more progression of graduates to

research work

DRIVER: COMPETITION BARRIER 6: LACK OF

SUPPORT FOR INTERNATIONALISATION

• Lack of incubator space• Lack of eligibility for SPEED• Lack of reciprocal links with overseas• Lack of sufficient inter-disciplinary

collaborationRecommendations• Provide incubator space, soft landings, links,

exchanges, collaborative work

DRIVER: COMPETITION BARRIER 7: LACK OF NETWORKS FOR INTERNATIONALISATION

• Lack of relationship development with overseas students, alumni, visiting parents

• Lack of sufficient engagement of EM and global networks with universities

• Lack of awareness of Indian overseas citizenship

Recommendations• Promote networks & skills in leveraging

BARRIER 8: LACK OF RESEARCH EVIDENCE

• No evidence of scale of student ambitions, activities among home and overseas students

• No data on ethnicity and entrepreneurship education

• Little data on self-employment destinations• No evidence of impact of student debtRecommendationMore quantitative and qualitative research

CONCLUSIONS (1)

• Make better use of competitive advantage of BI and BC and investigate graduate s-e

• More recognition of non-research students – Cinderella of university entrepreneurship

• Provide infrastructure support including micro-finance

CONCLUSION (2)

• More recognition that overseas students/staff provide seedbeds of international entrepreneurship

• Promote networks & networking skills• More joined up policy making at all levels