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European Journal of Social Sciences Volume 11, Number 3 (2009)

Strategies for Creating Entrepreneur University


Sayyed Reza Salehi Amiri Associated professor and Faculty Member of Islamic Azad University Faculty of Management and Economics I.A.U. Science and Research Branch Poonak st Hesarak Ave- I.A.U. Tehran-Iran E-mail:salehi@csr.ir Tel: +98-21-22884603; Fax: +98-21-22804622 Esmaeil Kavousy Associated professor and Faculty Member of Islamic Azad University Faculty of Management and Economics I.A.U. Science and Research Branch Poonak st Hesarak Ave- I.A.U. Tehran-Iran E-mail: ekavousy@yahoo.com Tel: +98-912-2712396; Fax: +98-21-44869663 Ali Shah Husseini Invited Instructor at Islamic Azad University Faculty of Management and Economics I.A.U. Science and Research Branch Poonak st. Hesarak Ave- I.A.U. Tehran-Iran E-mail: alishahhosseini@gmail.com Tel: +98-912-1785339; Fax: +98-21-44869663 Abstract In this article, according to the question "setting which strategies a university can change into an entrepreneur university?", after conducting exploratory studies, reviewing the current activities of entrepreneur universities in the world, and interviewing the experts, the five strategies of "entering the investigation field", "expanding the activities of industry offices and universities", "insurance services", "offering services related to credit", business activities" is selected, and considering this important issue that universities can create opportunities for technology and productivity for people, and guide them to use these opportunities effectively, and also considering the crises of unemployment in the country and the necessity of creating jobs , and since these kinds of investigations can be very helpful, this investigation has been emerged. At the first stage, the specific questionnaire for the elite is prepared, and 14 questionnaires are distributed among them to balance and determine the importance of each strategy and forming factors, and at the next stage, a special questionnaire is prepared for the members of the statistical society of each group to assess and eventually evaluate each of the five Strategies and forming factors, according to their past experience and their insight into the universities. The resulting outcomes of this research indicate that no difference is seen between the statistical population members perspectives on the priority of strategies of making the universities. entrepreneur. The statistical population believes that the best strategy for making the universities entrepreneur is entering the research field, and after that, the strategy of expanding activities of university and industry offices is more applicable. 496

European Journal of Social Sciences Volume 11, Number 3 (2009) Keywords: The entrepreneur university, strategies of the entrepreneur university, strategy of changing universities into entrepreneur ones

1. Introduction
Unfortunately, in our country, the common belief among students - that is you have to wait for employment jobs after graduation - has led authorities and policy makers of Azad University to set strategies, so that this scientific research center turns into an entrepreneur center, and high talents of the youth, which are developed through education is not wasted. Moreover, it is tried to make an effective use of physical equipments and facilities of the university, which are collected through years. On the other hand, global competitions have attracted the attention of some countries to the necessity of role changes and the range of university activities, so that they intend to review the university's role to react to internal and external forces, because today a new model of entrepreneurship is appearing and calling the attention of universities to: 1 Direct involvement of universities in commercializing research activities 2 Taking a more active approach to the regional economical development 3 More emphasis on the application of principals of quality management in university practices 4 Taking an approach based on educational program development according to problem solving and statistical analysis methods. At the end, it can be said that considering the importance of entrepreneurship in the development of the country, different countries' high education systems have taken some actions for training entrepreneurs. Bing lessons and teaching methods entrepreneur, holding entrepreneur courses and educational workshops, conducting researches on entrepreneurship and entrepreneurs, academic, consultative and financial supports to entrepreneur practices be performed by students, implementing educational programs, and are of these actions. Ministry of high education also has agreed on "the plan of entrepreneurship development in country universities" and has yielded the responsibility of its implementation to Measurement Organization of the country. The most important purpose of implementing this program is promoting, encouraging and increasing the entrepreneur sense and culture, increasing academicians' insight of entrepreneur goals and its role in growth, developing and creating jobs and welfare (karad code, 2002). Now this question is posed that compiling which strategies one can take effective decisions and policies against unemployment crisis to change Islamic Azad University as a scientific, educational and research center into an entrepreneur university, according to the capacity and facilities of this university and also benefiting from basic production factors and sources? In todays world, creative and initiative people as entrepreneurs are the source of enormous revolutions in field of industry, production and service and are mentioned as national champions. On the importance of entrepreneurship, it is enough to say that in India (1960-80) 500 entrepreneur institutions alone began to work, and even some huge companies in the world referred to entrepreneurs for solving their problems. The statistics available from the USA indicate that over 69% of inventions and initiations have been done by entrepreneurs of small and average industrial units. The role of entrepreneurs of economic development is not merely increasing output or annual income, but it also includes foundation of structural changes in economic and social activities. This revolution is accompanied by the growth and output increase, which provides the possibility of the division among various attendants. The importance of entrepreneurship in development is so much that it is called as "the engine of economic development". Investigation orientation is also one of entrepreneurship factors. High education by planning master and PhD courses can take step for training entrepreneurs. In these courses, developing entrepreneurship features and also increasing managing and entrepreneurship ability of people can increase entrepreneurship, and in this way high education considering the need of work market to 497

European Journal of Social Sciences Volume 11, Number 3 (2009) professionals with the managerial and entrepreneurship knowledge, can start planning entrepreneurship lessons for all fields of study. Offering credible services, such as establishing private banks, setting bank facilities, funding companies, or even some commercial activities can help to take effective actions for providing necessary conditions for the development and increase of entrepreneurship and changing a scientific research centre to an entrepreneur university. Therefore in this writing, based on the study of the theoretical framework of entrepreneurship and its challenges, following factors are selected as effective variables. These variables include investigation orientation, compiling non-educational strategies, relationship with industry, services, credible facilities and commercial activities.

2. Strategies for Entrepreneur Universities


2.1. Offering Entrepreneurship Trainings in Different Forms Entrepreneur growing university is a university whose graduated has received necessary trainings for entrepreneurship during his education, and the university, offering professional short term courses, and holding training workshops by related professionals, trains students in these fields. Of course, today, the dimensions of entrepreneurship are so various that some universities offer it in the framework of a multi unit lesson, and some offer it as a separate field of study. In this course of training, students learn basic concepts, the importance and the role of entrepreneurship in establishing small and average companies and economical development, and learn how to be the source of new jobs independent from governmental ones. 2.2. Creating Entrepreneurship Opportunities in Universities Universities should provide an environment that entrepreneur individuals or groups can practice applying it. These environments are often called growth centers, which of course can be established inside universities or outside. In growth centers entrepreneur individuals or groups are supported in different ways by soft wares or hard wares, such as environment or facilities, or even workshop and laboratories. They are also offered legal, scientific and technical advice by experienced people. They are taught marketing and financial affairs, providing "Business Plan" and are supported theoretically until they are independent. 2.3. Administrative Processes of Educational Environment for Growing Entrepreneurs Universities, by establishing investigation and development centers, have completed their task and have turned from being mere training oriented universities to entrepreneur and investigation oriented universities. 2.4. Considering Government's Role in Creating A Condition for Having an Entrepreneur Growing University The most important roles of governments are policy making, supporting, controlling and evaluating every affair. The government should make proper policy in this case too. One of the most important roles of the government is to promote entrepreneur culture and replacing it by job hunting and sitting at table culture. In Iran's economy, the government has the most fundamental role in employing graduated people from universities, and most of them have been employed in administrative affairs rather than productive. The important point of entrepreneurship is creating new ideas and taking risk for making them operational and economical. As another important role of the government, it should support entrepreneurs for investing, and this support can be through quality or quantity development. 498

European Journal of Social Sciences Volume 11, Number 3 (2009) 2.5. Effective use from Available Sources for Entrepreneurship Entrepreneurship can reach better result if it is accompanied by contributions of university and industry. In better words, growth centers are the contact points of university, industry and government contributions. It is only with the cooperation of these three sectors that entrepreneurship culture can be promoted and operational in the country. The government with its supportive policies ,the university with its energetic students and graduated interested in innovation and the industry with its investing possibilities and its ability in creating different markets can provide proper conditions for building small and average companies with fast productivity. Also there are people with different experiences in the fields of science, technology, industry and law an all three organizations, who can be very helpful at first stages of training and transferring experiences. Of course, making use of similar experiences of progressive countries in the field of entrepreneurship, reviewing experiences, localizing and entering them to the country, using advices of foreign outstanding people also can be very helpful and can increase the speed of work. 2.6. Creating new Markets to Offer Educational and Investigation Services In our country's economics, a very important part of industrial and economical and even managerial structures are not run yet with the use of scientific affairs, and its low results show the low quality of goods and services and its not being competitiveness in markets. Many mediator circles of the industry which can help raw material to change to mediator and final material with an increased value, has not shaped in our country. These mediator circles, if activated, can increase request for knowledge and create new markets for the education. Therefore, there are still many undiscovered and inactive markets inside the country that will be created by a movement toward the economic based on knowledge.

3. Quality Models in High Education


Harvey and Knight (1996) have explained their approach in the book "Change in Training" as follows: 3.1. Transformational Model Needs a clear process which creates a solid experience to enable students and develop them. Policies related to quality should be learning orientation and related to students' experiences. Learning experience is based on negotiations between attendants and the executer. This system needs to focus on the student's whole learning. All this means transferring focus from staffs' working method to students' learning. Clarity means making goals, processes, and learning methods clear. Solidity means that these experiences join together in an integrated whole. Negotiation includes discussions between learners and professors about natural looks and their learning methods and it also needs dynamic exchange among professors about training and learning processes. In general transformational approach is an approach of responsibility indeed. 3.2. Commitment to Program Quality Model Haworth and knwad (1997) present the "the theory of commitment" in program quality in their book, "mysteries of quality in high education", based on a broad and comprehensive interview with people working in high education system. This theory says that main executers, scientific board, students and managers should invest on high quality programs, in 5 different categories of program dimensions. Each of these dimensions should help students to enrich their learning experiences. Category1. Various and related attendants: College, students and managers 499

European Journal of Social Sciences Volume 11, Number 3 (2009) Category2. Culture of contribution: Planning and managing in a group Learners group Risk taking environment Category3. Mutual learning and teaching: Critical talk Inclusive learning Consult Cooperative learning of coequals After school activities Category4. Program related needs: Depth and range of planned class activities Professional training Tangible and visible products Category5. Proper sources: Supporting students, colleges and fundamental bases 3.3. Learning University Model Badoun and Morton (1998), in their book, "learning university", review the organizational features of high education from the educational point of view. They have proved that the main process is "learning" in all its supposed applications such as investigational training or dealing with society. As a result, according to them, quality in the context of a university is related to the learning quality. They consider learning quality in relation with the quality of different insights achieved by the learner, and they know its advantage as creating multiple views or richness of individual's insight (same source: 34). 3.4. Respondent University Model Tireny has collected some viewpoints of leading authors on "restructuring for better function" in a book called "respondent university" , in which he provided a model for improvement (of university). In this book, the stress is on building new relations through contributions among beneficiaries. Responding is the result of customer-oriented services; being student-oriented in programs, societyoriented in public services and people-oriented in researches. There is the need for changing the traditional way of training and production and use new tools to meet students needs. For being respondent, organizational systems need to be updated with the information. Being respondent would rather depend on outputs resulted from relations than inputs such as number of PhD certificates of groups, number of books in libraries Outside assessments are important only when they are supplementary for inside assessments. There may be common risks inside organizations though. In order to meet extensive needs of new dialogues, universities should provide local resources and common risks, based on wide ranged policies of the system.

4. Providing a Compound Model for the Quality of High Education


In all models, when judging the quality, there is a clear emphasis on students learning. All models stress on cooperation at the educational service level.

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European Journal of Social Sciences Volume 11, Number 3 (2009) Transformational model: Believes that learning should be based on a discussion on nature, domain and style of learning between students and professors, and on teaching and learning among professors. Commitment to program quality model considers teaching and learning as being based on critical discussions on cooperative teaching and learning of people of the same age. Learning university model: stresses on contemporaneous and increasing involvement of the academicians in an educational research team that provides a holistic perspective about students capabilities and collective knowledge on any current and complementary matter. Respondent university: stresses on a communication which needs new relation and cooperation. It seams that all these models focus on the main element of student learning supported by a kind of dynamic cooperation. Thus, the educational function of a university can be considered through a holistic model, which applies the useful information of different models.
Table 1: Comparison of quality models in high education
Model theoreticians Global organization of standards, 1990 Harvey & Knight, 1996 main content of the model Focus on offering models in university service sections Learning in universities should be based on inclusive experience Educational programs of universities should have quality in 5 categories: high education, contribution culture, exchanging education, needs and sources The main process is learning, and production, distribution and transformation must be based on organizations learning Stress on building new internal relations through contributions among beneficiaries Stress on a combination of models above, based on university regulations function Model criticism Not stable, and not compatible with university structure Does not care for investigational and service aspects Cares responding rather than responsibility

Quality models in high education TQM

Transformational quality model Commitment to program quality model

Haworth and knwad, 1997

Learning university model

Badoun and Morton, 1998

Respondent university model Holistic model

Tireny, 1998

Dandler, 1998

Does not consider capacities of high education, students learning and professors teaching methods Does not care for outside processes of the university Difficult to implement, and limited to act as a model rather than theory and practice

4.1. Clarifying the Models Details Ideally, two clear steps are essential for development: 1 Preferable features, as described in different models, should be produced and developed. 2 Issues of organizational behavior and structure should be discussed in details and based on rapid spread of learning organizations theories.

5. Preliminary Questions
1 2 3 Compiling which strategies Islamic Azad University can change to an entrepreneur university? How can opportunities be provided for a university to be entrepreneur by using a researchorientation method? Can we take steps toward making Islamic Azad University entrepreneur by expanding authorities and activity field of university and industry office? 501

European Journal of Social Sciences Volume 11, Number 3 (2009) 4 5 6 7 Can we change Islamic Azad University to an entrepreneur university by offering services such as insurance and , except educational services? Can we change Islamic Azad University to an entrepreneur university by offering credit services such as establishing private banks, investing agencies, offering bank facilities, Can we change Islamic Azad University to an entrepreneur university through commercial activities performed by Azad University? Can we change Islamic Azad University to an entrepreneur university through non-educational activities performed by Azad University?

6. Research Method
This research is operational in purpose, because it seeks for planning and offering strategies for making university entrepreneur. On the other hand, one can take this research a developing one, because for the time being, the university has no special problem in general, and this attempt is for preventing from future problems. This research is also descriptive (case study) in regard to research method.

7. The Statistical Population


The statistical population of this research consists from two groups. One group includes the elite who are offered questionnaires to weight and determine the importance of the dimensions and elements of the entrepreneur university, and the other includes professors and post graduates and students of PhD from the Economics and Management colleges of Islamic Azad University, Science and Research Branch and theorists who work on economics and management fields who are offered questionnaires to assess the extent of entrepreneurship of the universities. Hence the results from this research are only based on the opinions of these two groups and not on the ideas of the whole professors and students of the universities.

8. Designing the Quantitative Model of Compiling Strategies of Entrepreneur University


To determine the weight of each of the five strategies and their components, the opinions of 14 elite in entrepreneurship field are used, and the summary of resulted data is applied in calculating the technical index of quantitative model, and using the opinions of the groups in the statistical polulation (students of management and university managers and staff), the five strategies are measured and developed. 8.1. Quantitative Model of Changing the Universities to Entrepreneur Universities Strategies Finally the research measuring model is illustrated in the basis of figures, and the model is tested in the universities.

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European Journal of Social Sciences Volume 11, Number 3 (2009)


Chart 1: Research Quantitative Model
0.301 Research applicability 0.291 Stress on learning 0.279 Entering research field 0.235 Culture of contribution 0.226 Experimental productions 0.174 Strengthening the risk-taking sense 0.182 Professional gatherings strategy 0.261 Expansion of university and industry office 0.437 Entrepreneur specific insurance 0.165 Offering credit services 0.324 Property, insurance 0.239 Specific insurance rate 0.172 Funding agency 0.219 Private bank 0.149 Offering credit services 0.212 Financial facilities 0.202 Financial guarantee 0.194 Tax exemption 0.171 Growth centers 0.157 Professional consulting 0.154 Group research 0.111 Managers experiences

0.418 IT development 0.145 Offering commercial services 0.359 Market need measurement 0.223 Domestic projects and international

We are now testing the quantitative model out of its applicability from the point of view of the statistical population. 1 Measurement of the universities for entrepreneurship from the point of view of the statistical population.
Final weight of each strategy
Technical index of the model 0.291 0.174 0.235 0.301 * Score Professors, Students managers, 72 77 69 70 71 72 78 79 * *

Table 2:

Final Grade Professors, Students managers, 21 22 12 12 17 17 23 24 73 75

Factors: Stress on learning Risk taking sense Culture of contribution Research ability Entering research field mark

Measurement of "expansion of university and industry office" of the universities for entrepreneurship, from the point of view of the statistical population. 503

European Journal of Social Sciences Volume 11, Number 3 (2009)


Table 3: Final Weight of Each Strategy
Technical Index of the Model 0.226 0.182 0.171 0.157 0.154 0.111 Score Professors, Managers, 79 71 61 62 61 74

Final Grade Professors, Students Managers, 17 13 11 10 10 9 70 18 13 10 10 9 8 68

Students 76 70 65 64 66 78

Factors: Experimental productions Professional guttering Growth centers Professional consulting Group research Managers' experiences Expansion of university and industry office

Measurement of "credit services" of the universities for entrepreneurship from the point of view of the statistical population.
Final Weight of Each Strategy
Technical Index of the Model 0.219 0.267 0.207 0.16 0.147 Score Professors, Managers, 78 67 76 76 77

Table 4:

Final Grade Professors, Students Managers, 16 17 17 18 15 16 12 12 10 11 70 74

Students 73 63 72 73 71

Factors: Funding agency Private band Financial facilities Financial supports Tax exemptions Credit services

Measurement of "insurance services" of the universities for entrepreneurship from point of view of the statistical population.
Final Weight of Each Strategy
Technical Index of the Model 0.437 0.324 0.239 Score Students 68 64 67 Professors, Managers, 70 67 66 Factors: Entrepreneur Specific insurance Specific insurance rate Insurance services

Table 5:

Final Grade Professors, Students Managers, 30 13 21 12 16 16 66 68

Measurement of "commercial activities" of the universities for entrepreneurship from the point of view of the statistical population.
Final Weight of Each Strategy
Technical Index of the Model 0.437 0.324 0.239 Score Professors, Students Managers, 74 70 73 67 76 66

Table 6:

Final grade Professors, Students Managers, 32 31 24 22 18 16 74 68

Factors: Market need measurement Domestic and international projects IT development total

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European Journal of Social Sciences Volume 11, Number 3 (2009) 6 Measurement of the universities strategy for entrepreneurship from the point of view of the statistical population.
Final Weight of Each Strategy
Technical Index of the Model 0.28 0.26 0.149 0.165 0.145 Score Professors, Students Managers, 73 75 70 67 66 68 70 74 74 68

Table 7:

Final Grade Professors, Students Managers, 20 12 18 17 10 10 12 12 11 10 71 71

Factors: Entering research field Expansion of university and industry office Insurance services Credit services Commercial services strategy

9. Research Findings According to the Plan Questions and Goals


1) According to the research findings, for the I.A.U. to become entrepreneur, we can use the five mentioned strategies. The results from the research show that from the point of view of students, professors, managers and staff, "entering research field" and "expanding the university and industry office" are the most important strategies and "commercial activities" is the least important one. 2) For answering the second question of the research, the results from the questionnaires distributed among managers, staff of the I.A.U. (the studied society) shows that for implementing this strategy, making the risk-taking applicable is the most important and encouraging the risk-taking sense is the least important factor. Therefore the university should do its best to work scientifically on the first factor i.e. "making the research applicable", in order to implement this strategy. 3) For answering the third question of the research, which is can we take steps to change I.A.U. to an entrepreneur university by expanding university and industry office?, the results show that the statistical population members believe that this strategy of I.A.U. should consider experimental production as the most important factor, and managers experiences the least important one. 4) For answering the four the question, which is "can we make the I.A.U an entrepreneur university by offering insurance services?" Respondents believe that for implementing this strategy successfully, the I.A.U should consider "entrepreneur specific insurance rate" as the least important one. 5) For answering the fifth question, which is "can we change I.A.U an entrepreneur university by offering credit services?" the results from the research show that for implementing this strategy effectively, the I.A.U should consider "funding agencies" as the most important factor, and "tax exemption" as the least important one. 6) For answering the sixth question which is "can we change the I.A.U to an entrepreneur university through commercial activities?" it must be noted that respondents considered this strategy the least important one, hence if the university is to implement this strategy. "IT" is to be considered the most important factor and "domestic and international projects" is the least important one. 7) The first purpose of this research is making the I.A.U an entrepreneur university in order to offer services based on customer needs. Of course this purpose is on one hand ideal i.e. to what extend we can prefer customer priorities to organizational benefits? Especially when there is no financial support for a university, it can not reach this purpose easily. On the other hand, reaching this purpose needs time and everything should be done according to pre-determined plans. 505

European Journal of Social Sciences Volume 11, Number 3 (2009) 8) The second purpose of this research is identifying entrepreneur universities at global and regional levels, which leads to a desirable condition. Many works have been done in this research in other countries, which illustrate the desirable condition and in fact this is purpose has been reached by the researcher. It should be noted that the competition exist in other countries as in our own country on this issue. So, it can not be said that the desirable condition is reached completely. The third purpose is identifying (the present condition)'s good and weak points, capabilities and facilities and as the statistical polulation members of this research are I.A.U students, professors, managers and staff, as they offer their proposals, this purpose will be reached in itself.

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