Entrepreneurial activity is one of the leading factors of economic growth, deriving value from taking risks and innovating.

The fast-paced world, accelerated further by the pandemic, has needed a significant change in offering higher education that better copes with growing entrepreneurial aspirations. Rising interest in entrepreneurship education epitomizes this shift, representing the evolution of student attitudes.

Today’s generation of changemakers wish to carve their path in their society and achieve genuine change in the real world. Traditional modes of employment have lost their attraction when weighed against potential entrepreneurial pursuits.

To embrace this shift, universities must also evolve and adapt.

The World Economic Forum on the Future of Jobs projects that by 2025, entrepreneurial skills like critical thinking, problem-solving, and creativity will become essential. In a world continuously influenced by digitalization and automation, universities too, must maintain their relevance.

The astounding number of Higher Learning Institutions offering entrepreneurial courses globally is a testament to this growing demand. Malaysia alone recorded over 500,000 students undertaking entrepreneurship higher education studies in 2019. About 10% of students start business ventures during their studies, and over 7,000 become entrepreneurs after graduating.

This boon has led to the launch of the Ministry of Higher Education (MOHE) Guide to Entrepreneurship Integrated Education (EIE) Entrepreneurship Action Plan 2021 – 2025, With the guide, it can better pave the way for universities to develop young entrepreneurs and enhance the nation’s economic innovation.

This direction ensures students are empowered toward entrepreneurial careers and remain dominant contributors to economic innovations and societal developments through their respective endeavours. Universities are at the core of this, adapting their entrepreneurship programs to meet emerging globalized workforce requirements.

Fostering Entrepreneurship Through University Support

Universities’ importance stretches far beyond the mere stimulation of entrepreneurial nous. Its academics and faculties are essential in developing industry collaborations, establishing start-ups and creating spin-offs. Support is grouped into three main areas: establishment of ventures, innovation promotion, and sustaining growth.

The university is vital to establishing ventures, offering an array of collaborations with a vast external network to connect students, alumni, investors and practitioners. These help budding entrepreneurs with new business ventures, such as product development and market entry.

Promoting innovation includes using academic research as leverage to create products and services viable for commercial use. Sustaining growth focuses on supporting existing entrepreneurial projects, patenting the patents, and managing intellectual property for continued innovation.

The universities are critical in enabling the next generation of entrepreneurs and innovators, providing them with the tools and guidance needed for company formation, product commercialization, and protection of any resulting intellectual property.

The Way Forward

In exploring the intersection of entrepreneurship and academic institutions, it is vital to consider the broader implications beyond mere economic returns, emphasizing the wider social and economic contributions such as knowledge dissemination and overall societal progress. Three key areas are highlighted for universities to consider in honing and enhancing their entrepreneurial engagements.

(i) Well-crafted policies and strategies are fundamental to fostering and inhibiting academic entrepreneurial activities. Implementing supportive structures will help to bolster entrepreneurship not only among students but more importantly with academics to facilitate stakeholder engagement, creating a conducive environment for entrepreneurial ventures. Women and youth entrepreneurship should be given particular emphasis through the design of courses and programs.  

(ii) Tracking performance – Establishing a data bank to systematically collect and analyze data, aiding in developing formulated policies and strategies related to the university’s entrepreneurial initiatives. This ensures strategic planning is informed, objectives are clear, trends are monitored, and outcomes are thoroughly assessed. Such valuable information is essential in equipping and empowering budding entrepreneurs with a practical awareness of the market sectors in which they operate.

(iii) Human capital investment – Every university’s entrepreneurial success is underscored by its academic knowledge and tacit skills. These are the foundation of business opportunities that will be available to the institution. Given the varied entrepreneurial orientations among academics, targeted training programs are suggested to equip faculty members with the latest skills and competencies. Such initiatives aim to transform traditional educational settings into entrepreneurial hubs, fostering an environment where innovation and entrepreneurial visions thrive. This is fundamental for universities that wish to establish start-ups and spin-off companies through community collaborations with their faculty expertise at the core.

Ultimately, entrepreneurship needs to be harnessed through detailed, structured and well-supported frameworks. These conditions create conducive environments to instil individuals with innovative and risk-taking motivations to achieve their personal goals. Universities such as Swinburne University, need to invest or are already investing in these structures and resources and are gradually building the necessary platforms and be visionaries in cultivating the right entrepreneurial mindset.