DEVELOPING ENTREPRENEURIAL ENVIRONMENT

 The Context.  Current Policies and Practices  Typical Academic Entrepreneurship Activities  Issues and Challenges  World’s Best Practices  Suggestions  Q & A SCOPE SCOPE

 Only 1.3% - 1.6% of annually graduating students are entrepreneurs ( ).  In 2010, student entrepreneurs were highest among certificate holders, followed by diploma, post-graduate and basic degrees.  In 2010, graduate entrepreneurs were mainly from UiTM, to a lesser extent UTM, UM and UPM. Other IPTAs almost insignificant. UiTM has been consistently high, and increasing. THE CONTEXT

 About 3.5% of R&D are commercialized (10% in the world).  90% of IPTAs’ OPEX financed by the Government (Thailand:55%; Singapore: 75%; Australia/NZ (45%); and UK (25%). And 100% of CAPEX.  Malaysia spends 6.9% of GDP on education, or 2.9% on higher education. The highest in the world. THE CONTEXT (cont.)

 Under 10 th Malaysia Plan ( ), 1% of GDP is to be allocated for R&D. (South Korea:3.4%; USA: 3%; Japan: 2.7%, Singapore 2.7%; Taiwan: 2.4%).  Labour market is a buyer’s market. Graduate unemployment a permanent feature !  Democratization of higher education - without strict compliance to quality criteria – compromises the general quality of graduates. It makes them less employable. THE CONTEXT (cont.)

 Entrepreneurship subject is mandatory for all first year students in all IPTAs;  Up to 80% share of royalty on commercialisation of R&D goes to researchers.  Many IPTAs, especially RUs, have begun to intensify commersialisation / business activities, either on their own via incorporation of holding companies, and/or in collaboration with partner institutions. CURRENT POLICIES & PRACTICES

 MOHE has, since 2010, formulated and implemented a “Policy on the Development of Entrepreneurship” in HEIs;  Industrial PhD Programmes offered by a number of RUs would further develop entrepreneurship in universities.  The government has decided to give greater autonomy to IPTAs, and full autonomy to qualified IPTA by CURRENT POLICIES & PRACTICES (cont.)

 Under the 10 th Malaysia Plan (2011 – 2015)the government has doubled up allocation for R&D to 1% of GDP (9 th Malaysia Plan only 0.4%);  Some entrepreneurship programmes at IPTAs could be considered as local best practices and probably, are replicable to other institutions. CURRENT POLICIES & PRACTICES (cont.)

 Large scale research projects  Contract research  Consulting  Patenting/licensing  Spin off firms  External teaching  Sales  Testing  Source: M. Klofsten and D.J – Evans (2000) TYPICAL ACADEMIC ENTREPRENEURSHIP ACTIVITIES

 Public HEIs, like other public agencies, are risk-averse;  Objectives of entrepreneurship agenda (EA) lack of understanding, hence lead to misperception and lack of support  Misconception: EA only for students; only about entrepreneurship education; only to produce graduate entrepreneurs; graduate entrepreneurs equal entrepreneurial graduates;  Resistance to change from HEIs’ community members ISSUES AND CHALLENGES

 Lack concerted effort to drive EA;  Entrepreneurship are taught by lecturers who are not entrepreneurs  General mental mode that entrepreneurship as a profession lacks job security, involves huge risks, ISSUES AND CHALLENGES (cont.)

 In Babson College, 13-14% of students are involved in some kind of business activities while studying. And 28% of its alumni, have started their own businesses. 60% of its lecturers are entrepreneurs.  About 20-25% of the Harvard Business School graduates start their businesses upon graduation. WORLD’S BEST PRACTICES

 At MIT’s Sloan School of Management, faculty members are allowed to do outside work a day per week. They are also encouraged to establish starts-up, and take sabbatical leave or the maximum time allowable to run their businesses.  In Sweden (50%) and Ireland (63%), a high proportion of their faculty members have industrial experience prior to joining universities. Technical universities in Germany require at least 5 years industrial experience as prerequisite to possible appointment. WORLD’S BEST PRACTICES

 To undertake a baseline study to gauge and ascertain the extent, form and culture of entrepreneurship in IPTAs and other HEIs;  For visibility, relevancy, and role-model, to further encourage the engagement of qualified and successful entrepreneurs as visiting lecturers/professors;  To develop a systematic approach to identify yearly, newly enrolled students of their intended career choices particularly to becoming entrepreneurs as a vocation. SUGGESTIONS

 To consider and allow lecturers to take one day off every week for entrepreneurship activities;  To enable lecturers to take an unpaid leave for a specified period to run his start-up business;  To create a conducive eco-system: conducive culture, enabling policies and leadership, availability of finance, venture-friendly markets, and institutional as well as infrastructure support). SUGGESTIONS (cont.)

 To make the subject on entrepreneurship mandatory for all MBA programmes in IPTAs.  To establish closer relationship with local entrepreneurs community and other supporting institutions. Make them friends of universities.  To refine and review the “Policy on Entrepreneurship Development in IPTAs”.  To elevate entrepreneurship in HEIs as a national agenda. SUGGESTIONS (cont.)

 To make entrepreneurship as KPIs of public HEIs.  To introduce a National Entrepreneurship Competition among HEIs. SUGGESTIONS (cont.)

Q & A