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A Focus on the West Midlands Region Williamson, T To what extent can universities create a sustainable system to support MSMEs? A focus on the West Midlands region Williamson, T. Submitted version deposited in CURVE May 2016 Original citation: Williamson, T. (2015) To what extent can universities create a sustainable system to support MSMEs? A focus on the West Midlands region. Unpublished PhD Thesis. Coventry: Coventry University Copyright © and Moral Rights are retained by the author. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders. Some materials have been removed from this thesis due to third party copyright. Pages where material has been removed are clearly marked in the electronic version. The unabridged version of the thesis can be viewed at the Lanchester Library, Coventry University. CURVE is the Institutional Repository for Coventry University http://curve.coventry.ac.uk/open To what extent can universities create a sustainable system to support MSMEs? A focus on the West Midlands region By Thomas Williamson Ph.D. August 2015 A thesis submitted in partial fulfilment of the University’s requirements for the Degree of Doctor of Philosophy To what extent can universities create a sustainable system to support MSMEs? A focus on the West Midlands region ii To what extent can universities create a sustainable system to support MSMEs? A focus on the West Midlands region Acknowledgements The competition of this study was the result of a long journey involving the contributions and support of many people. It has been an enduring process of mistakes and revelations that has resulted not only in this thesis, but in the discovery of a fulfilling career and capabilities I did not know I could possess. I owe a great deal to many people. To the business owners and university employees that participated in the study, I am thankful for your insights and contributions. I hope that the findings of this study will contribute towards a greater understanding of, and relevance of the MSME support provision available. My thanks to Dr Liz Miles for introducing me to academia and encouraging me to pursue a PhD, and to my colleagues in the wider Enterprise Education networks including EEUK for their support, guidance and friendships throughout and beyond the study. My appreciation and gratitude go to my Director of Studies, Dr Joan Lockyer, for her continuous support, advice, patience and understanding throughout my studies. Joan offered her time and guidance well above and beyond the call of duty, helping to challenge my perspective and develop my competences within this study and through my professional career. My sincerest thanks also go to Professor Gideon Maas who for a significant time during this study was my Director of Studies and helped to shape my views and understanding of the sector. His helpful explanations and insights enabled me to gain a grasp of the many dimensions of this study, whilst also pushing me to consider a broader perspective and interpretations. And to Dr Donald Finlay who supported me in the final year of my studies and write- up with his encouragement, insights and helpful discussions. Without the support of my supervisory team I would not have got to the point of submission. They each helped to build my confidence, my understanding, and provided much needed reality checks on numerous occasions. iii To what extent can universities create a sustainable system to support MSMEs? A focus on the West Midlands region I owe a debt of gratitude to my colleagues and friends at Coventry University, whose tolerance and encouragement provided the support network and focus required as a full-time academic, part-time student. Additionally, I will always be in debt to my personal friends, who have all provided me with motivation, support, encouragement and who are always there to help me de-stress, refocus and see the lighter side of life. Lastly, and most importantly, I am infinitely grateful to my family for their support, encouragement and patience. This process has been a long ordeal for them and without their constant support I most certainly would not have made it this far. Without their encouragement and guidance, on so many issues, I could never have dreamt of being where I am today. And finally, my wholehearted gratitude to my wife Jess who has had to endure the consequences of a struggling, and often grumpy, PhD student over the last 6 years. Without her love, support and patience this process would have been infinitely more difficult. iv To what extent can universities create a sustainable system to support MSMEs? A focus on the West Midlands region Abstract Micro, Small and Medium sized enterprises (MSMEs) represent 99.9% of businesses in the UK and they face significant challenges with regards to start-up, survival and growth. Their ability to deal with these challenges is assisted, in some cases, by the provision of business support funded by the public sector. Unfortunately, despite the volume of such businesses, there remains a significant lack of qualitative data into the MSME sector, and their use of university led business support. This thesis examined the business support agenda, the support needs of MSMEs, the role of universities in the provision of business support, and the needs of public funding bodies, with regards to economic sustainability and growth in the West Midlands. The choice to focus on the West Midlands region was largely pragmatic; the researcher has existing relationships with the small business community and University networks within the region allowing for a comparable study of stakeholders with similar environmental, political and economical challenges. Whilst the findings are therefore in relation to the West Midlands region, they have been compared to secondary data and theoretical frameworks in order to propose a contribution, which is applicable to a wider audience. The thesis adopted an exploratory, interpretivist methodology with an emphasis on the practical importance of the research results. Through an explanatory sequential mixed methods approach, surveys were used to collect data from MSME business owners, followed by in-depth interviews with university staff in order to produce institutional case studies. The surveys with MSME owners identified a need for support that was free, local, face-to-face and delivered by an organisation with a v To what extent can universities create a sustainable system to support MSMEs? A focus on the West Midlands region good reputation for delivering business support. The survey data also indicated confusion amongst MSME owners about the availability of support from universities, as well as questions around the quality of support provided by universities and its impact. The interviews, and case studies, revealed a significant level of interest, and a feeling of responsibility, from universities towards supporting the MSME community. However there were consistent challenges around funding, sustainability, resources, flexibility of delivery, and the longevity of any enterprise strategy. The research makes a useful contribution to knowledge through the development of multiple case studies and the development of a conceptual framework for a sustainable system of university led, MSME business support. The model, and analysis, considers the detailed experiences, challenges and opportunities from the stakeholders and proposed a sustainable support system. This contribution to literature provides a unique perspective for both practical application and for the research community to utilise further. vi To what extent can universities create a sustainable system to support MSMEs? A focus on the West Midlands region Table of Contents ACKNOWLEDGEMENTS III ABSTRACT V TABLE OF CONTENTS VII LIST OF FIGURES XII LIST OF TABLES XIV LIST OF ACRONYMS XVI CHAPTER 1 - INTRODUCTION 1 1.1 – INTRODUCTION 1 1.2 – AIMS AND OBJECTIVES 2 1.3 – THESIS STRUCTURE 3 1.4 – SCOPE OF THE RESEARCH 7 1.5 – THE IMPORTANCE OF THE TOPIC 9 1.6 – PERSONAL INTERESTS IN THE RESEARCH AREA 10 1.7 – SUMMARY 12 CHAPTER 2 – LITERATURE REVIEW 13 2.1 – INTRODUCTION 13 2.2 – SOURCES OF LITERATURE 15 2.3 – FOUNDATIONS OF ENTREPRENEURSHIP 17 2.3.1 – The Etymology of Entrepreneurship 18 2.3.2 – Theoretical Models in Entrepreneurship 27 2.4 – GOVERNMENTS AND ENTREPRENEURSHIP 33 2.4.1 – European Entrepreneurship Policy 34 2.4.2 – UK Entrepreneurship Policy 37 2.4.3 – Present Government HE interests 43 2.4.4 – Regional Government 49 2.5 – MICRO, SMALL AND MEDIUM SIZED ENTERPRISES 53 vii To what extent can universities create a sustainable system to support MSMEs? A focus on the West Midlands region 2.5.1 – MSMEs and Growth 58 2.5.2 – MSMEs Support Needs 63 2.6 – WEST MIDLANDS UNIVERSITY ENTREPRENEURSHIP STRATEGIES 66 2.6.1 – University Enterprise Support in the West Midlands 73 2.6.2 – Future Enterprise Support Trends 81 2.7 – SUSTAINABILITY 84 2.8 – ENTREPRENEURSHIP IN THE WEST MIDLANDS 89 2.8.1 – West Midlands Business Support Bodies 96 2.9 – THE APPLICATION OF CONCEPTUAL MODELS 100 2.10 – SUMMARY 104 CHAPTER 3 – METHODOLOGY 108 3.1 – INTRODUCTION TO THE METHODOLOGY 108 3.2 – KEY RESEARCH QUESTIONS 109 3.3 - RESEARCH PHILOSOPHY 114 3.3.1 – Policy Studies 118 3.4 - RESEARCH DESIGN 120 3.4.1 – Mixed Methods 122
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