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Graduate path to entrepreneurship Graduates should be encouraged to join the ranks of the self-employed. Help is available for those who know where to look. from Richard Pearson WITH the labour market picking up rapid­ their own businesses. Indeed, one in twelve vided by Cranfield and the scheme's spon­ ly from the doldrums of 1981-82, many had already started doing something about sors - Arthur Anderson, the accountants graduates will be looking again to the large it, either making preliminary enquiries, do­ who will provide financial counselling, and service and revitalized manufacturing ing basic design work, or developing a pro­ BP, who will undertake product develop­ employers for . But what about small totype or patenting an idea. ment advice and practical help, with Na­ firms and self-? As part of the study, I ,000 students were tional Westminster Bank providing help ln the late 1970s the services ac­ asked to rate themselves against a set of en­ and advice on financing problems. tively sought out opportunities for gradu­ trepreneurial attributes ranging from the As well as the programme of , ates in small firms. They did this both to 'desire for power' to 'the ability to work counselling and consultancy, the course widen the range of opportunities open to long hours'. The results were largely participants are also eligible for a £4,000 graduates and to try and help small firms positive, although they were Jess sure of cash package of allowances during the first develop by encouraging them to value a their ability to risk-take and, most 18 months, including a basic allowance of graduate recruit. With graduate unemploy­ significantly, to attract . £40 per week during training. ment rising to, and exceeding, 12 per cent There has been a lengthy debate as to With more institutions starting graduate in 1982, and scientists experiencing even whether entrepreneurs are born or made, enterprise initiatives, the number of higher rates of , there was and if the latter, then what factors can be graduates involved is likely to expand a growing urgency to find new oppor­ brought to bear to encourage and aid more significantly. Not all participants will even­ tunities for graduates both in terms of the people to follow the route through en­ tually turn out to be successful. lf, type of work they might undertake and by trepreneurship into self-employment and however, the business success rate of par­ finding new employers. As a result gradu­ starting their own businesses. ticipants is around the national norm, ates often displaced less-qualified person­ A preliminary vacation course on entre­ where the success rate for new business nel. The fact that graduate unemployment preneurship showed positive results in helped by an enterprise trust or similar is did not rise as steeply as overall unemploy­ terms of encouraging students towards self­ believed to be around two-thirds, they will ment levels and has subsequently fallen sig­ employment, although a subsequent work­ have proved their point - that entre­ nificantly as the economy has expanded is experience programme seemed to offer a preneurial skills can be developed and testimony both to the flexibility of gradu­ dose of reality and reduced the numbers business ideas nourished by an appropriate ates and to the fact that it has been the believing they were entrepreneurs. Thus training programme, and this will be of higher-skilled jobs that have benefited most while the report concluded that enterprise benefit to both the graduates and society. from economic expansion. attributes need to be encouraged by There are several incentives for self­ Indeed, of the half-million extra jobs developing educational programmes of the employment and starting your own created in the 18-month period to the end ' for enterprise' kind, to increase business. First is the contraction of alter­ of 1984, two-thirds were for the self­ awareness at the undergraduate level, more natives as the number of opportunities in employed, with many of the rest being for specifically, there was a need to develop 'big' business and in the public sector part-time workers. special training programmes for enterprise decline. Second, a national policy of To what extent have, or might, graduates or small business . favourable publicity and special support follow the path to such self-employment? To encourage graduates to consider start­ schemes. These include low-cost advice, lt has been estimated that only about 500 ing their own business and to foster the en­ premises and finance, support groups such graduates leave each year trepreneurial spirit, the Scottish Enterprise as enterprise trusts, and training program­ to launch their own businesses. On degree Foundation, an alliance of business, mes. Finally, the academic institutions courses in business studies and manage­ academic and governmental interests, laun­ themselves are being encouraged to follow ment, one might expect a reasonable pro­ ched Graduate Enterprise in 1982. Based a more commercially oriented policy. portion of graduates to start up their own at the University of Stirling, its aim is to Those graduates going into self­ business ventures, but this apparently is not provide a four-month training programme employment are still to some extent the case. ln fact, it is far more likely to find covering topics such as business planning pioneers and few are likely to hit the would-be entrepreneurs emerging from and strategy, and market jackpot immediately. However, such op­ courses in three-dimensional design and research, accounts and book-keeping and portunities do exist and with the continu­ other courses in the art and design field, sources of finance. ing constraint on traditional oppor­ after which self-employment is a normal Such has been the success of the Stirling tunities, students will be wise to widen their and expected outcome. scheme that the number of places has horizons in employment terms; if the Nevertheless, many graduates do see steadily increased from an initial 20 to 60 number of 'traditional' graduate jobs does themselves as having the necessary skills for in 1985. Significantly, there are plans to shrink in the future, the range of oppor­ entrepreneurship and have aspira­ adopt the Stirling idea in a number of tunities will surely widen. 0 tions which include the possibility of run­ English universities - the first, based at ning their own businesses. A study by Cranfield School of Management and I. Emrepreneurship ami Hi.cher Edu<·arion (Durham Univer "i i· Durham Business SchooJI has shown that directed jointly with the Manpower Ser­ ly Business School, 1984). as many students would like to work in vices Commission, will receive its first in­ small businesses as in large businesses, and take of 40 graduates this summer. This is Richard Pearson is at the Institute of Manpower that one in four of those with clear career for six weeks of formal training as part of Studies, Mantell Building, University of Sussex, plans wanted to be self-employed or run an 18-month programme of support pro- Brighton BNI 9RF, UK. © 1985 Nature Publishing Group