12 th July 2006 Comparative analysis of the predictors of entrepreneurial intent and self-efficacy of UK engineering undergraduates Evidence from the CMI Education for High Growth Innovation (EHGI) Research Group Evidence Based Policies and Indicator Systems Conference

12 th July 2006 Policy Self-efficacy and entrepreneurial intent Survey and results Conclusions

12 th July 2006 Policy UK Government has funded several programmes for enhancement of entrepreneurship and enterprise HEIF, CMI, SEC HE Sector has responded by increasing number and variety of activities in this area Environment changing Economic changes Technological change Issue – how to measure effectiveness and guide policy?

12 th July 2006 Self-efficacy and entrepreneurial intent Self-efficacy is concerned with confidence Entrepreneurial intent indicates future ambitions and plans In general, people with self-efficacy are successful in a variety of areas A ‘virtuous spiral’ Make positive choices Attempt tasks Innovation, opportunity recognition, and entrepreneurship linked to self-efficacy

12 th July 2006 Self-efficacy and entrepreneurial intent Factors that increase self-efficacy Actual performance of the task Learning by failure Observing others Self-efficacy for entrepreneurship can be enhanced though Teaching Guest lectures Projects Work experience

12 th July 2006 Survey and results Education for High Growth Innovation Cambridge, Edinburgh, Lancaster, Sheffield, Strathclyde, York, MIT Spring 2004 – pilot work Autumn 2004 – initial survey 2711 replies 492 engineering undergraduates Assessed impact of the 3 rd year

12 th July 2006 Outcome metrics Self-efficacy items Know the steps you would take to place a financial value on a new business venture Work with a supplier to get better prices that help a new venture become successful Pick the right marketing approach for the introduction of a new kind of service Recruit the right employees for a new project or venture Estimate accurately the costs of running a new project Recognize when an idea is good enough to support a major business venture Survey and results

12 th July 2006 Survey and results Outcome metrics Entrepreneurial intent items “At least once I have to take a chance and start my own company;” “If I see an opportunity to join a start-up company in the next few years, I will take it.” “I often think about ideas and ways to start a business;” “The idea of high risk/high pay-off ventures appeals to me.”

12 th July 2006 Survey and results General Men consistently report higher levels of self-efficacy Respondents whose fathers run their own business have higher entrepreneurial intent These findings agree with literature on this subject and indicate the students in this survey are like others studied elsewhere

12 th July 2006 Survey and results Strong culture of using real-world examples 73.4% indicated industry examples were used in the classroom at least weekly 48% say their lecturers talked about jobs in industry. Both relate to self-efficacy 6.5% say their lecturer talked about personal start-up experience weekly 26.8% reported working on open-ended problems Both relate to entrepreneurial intent Examined impact of 3 rd year No significant relationships were found

12 th July 2006 Survey and results Students who take an enterprise course are more likely to be placed in industry work close to their course of study The strongest predictor of venturing self-efficacy is the closeness of study and work experience Closeness of the work experience to study area has no effect on entrepreneurial intent Taking courses in entrepreneurship, but not business courses, relates to higher levels of entrepreneurial intent More intensive courses relate more strongly

12 th July 2006 Conclusions The background factors of gender and a father who runs a business are important sources of entrepreneurial confidence and motivation Future studies should use these as controls The other factors which predict venturing self-efficacy represent authenticity of experience Authenticity appears to require a strong tie between the nature of the work experience and the area of study

12 th July 2006 Conclusions Innovation follows on from self-confidence therefore it would seem that industry placements are very important in an education context The average age of an entrepreneur is 35, how best to measure effectives of education programmes? Trajectory metrics