BRITISH INDIAN AND CHINESE STUDENT, GRADUATE AND ACADEMIC INTERNATIONAL ENTREPRENEURIAL ACTIVITY

1. BRITISH INDIAN AND CHINESE STUDENT, GRADUATE ANDACADEMIC INTERNATIONAL ENTREPRENEURIAL ACTIVITY Dr. Stella Mascarenhas-Keyes Department for Universities, Innovation and Skills and Centre for Research in Ethnic Minority Entrepreneurship, de Montfort University 12.3.2008

2. STRUCTURE OF PRESENTATION • Aims of the Research and Concepts • Policy Context • Drivers of Productivity • Research Methods • Types of Entrepreneurial Activity • Characteristics of Entrepreneurial Activity • Cultural Capital and Social Networks • Barriers to Entrepreneurship and Solutions

3. AIMS OF THE RESEARCH • Government sponsored research: inform policy • GENERIC: To contribute to the evidence base on student, graduate and academic entrepreneurship • SPECIFIC: Focus on British Indian and British Chinese • Identify patterns and processes of British Indian (BI) and British Chinese (BC) student, graduate and academic international entrepreneurship • Role they play in promoting UK productivity • Facilitators and barriers to international entrepreneurship

4. CONCEPTS • Entrepreneurship • Patents, trademarks, licensing, start ups • Internationalisation • Born global, become global, aspire to become global, start overseas first • British Indian and British Chinese • UK domiciled • Mainly second generation

5. POLICY CONTEXT • Prosperity for all • Productivity lower than USA, France, Germany therefore need to close gap • Shift in the economy needed from manufacturing to service-led economy and high value added industry – skilled people key to this (Leitch 2006) • Universities have a role to play hence third stream funding

6. DRIVERS OF PRODUCTIVITY • ENTERPRISE - overall low levels of enterprise, BI and BC higher levels that WB • COMPETITION (domestic and international) – less international business but Asian higher than WB • SKILLS – overall low levels, BC & BI higher than WB • INNOVATION – overall low levels but ethnic minority businesses higher than non-EMB business • INVESTMENT – overall less investment. BI and BC have less difficulty accessing finance • “..... There is no single factor holding back UK productivity performance. The productivity bap is the cumulative result of a series of historic weaknesses. The result has been a failure to make the most of high value added business opportunities. If productivity is to improve, then the UK has to be more adept at seizing those opportunities” (DTI 2003:10)

7. RESEARCH METHODS • review of literature and policy documents • commissioned further analysis of secondary datasets: Labour Force Survey, Annual Small Business Survey, Global Entrepreneurship Monitor, Destination of Higher Education Leavers but no robust national quantitative data on student entrepreneurship • 150 interviews mainly in England, about 25 in China (Shanghai, Beijing, Shenzen, Hong Kong of students, graduates, academics, government officials, university staff – multi chain sampling • Attendance at a number of conferences and conducted informal interviews – social anthropological techniques • Self as Informant: Reflection on 40 incidents of knowledge transfer by researcher

8. TYPES OF ENTREPRENEURIAL ACTIVITY • Science based: holistic health care centre; new cancer screening device • Engineering: new device for blind people; environmental technology • Computer services: data roaming; web design • Professional services: international business support consultancy • Creative industries: designer retail

9. Chinese entrepreneurship examples • Kenneth: Computer science graduate - data roaming business, 3 staff in UK, 16 in Beijing • Philip: Life Science Professor – new cancer screening device – potential manufacture and trials in China • Francis: UK graduate with computing business in Shanghai, wants to expand to UK • Carla: UK graduate with translation business in Beijing, wants to expand to UK

10. CHARACTERISTICS: ENTREPRENEURSHIP AND INVESTMENT • Entrepreneurship • Timing varies, with greatest among graduates • Opportunity entrepreneurship, some necessity • Investment • Mainly resources of owner/partner/directors • Family and friends but want independence • Some debt and equity finance • Micro-finance through SPEED for students

11. CHARACTERISTICS: SKILLS AND INNOVATION • Skills • Degree directly relevant • Degree has generic relevance • Enterprise skills through university/parents biz • Innovation • Focus is on academic research • Innovation potential of non-research students and graduates

12. CHARACTERISTICS: COMPETITION • BI and BC have advantages • Cultural capital & strategic manipulation of identity • Large endowment of social networks • Bonding: national/international/bilateral/multilateral • Bridging: networks with other communities • Linking: with people with power and influence

13. LEVERAGING SOCIAL NETWORKS: COMPETITIVE ADVANTAGE • Choice of Location – less psychic distance, more conducive environment, ideological commitment • Hospitality • Information and market intelligence • Partner and staff recruitment • Collaborative research

14. DRIVER: INVESTMENT BARRIER 1: LACK OF CO-ORDINATED POLICY EVIDENCE • Silo approach to university-generated entrepreneurship: student, graduate, academic • Project approach which means staff supporting entrepreneurship always on short term contracts RECOMMENDATION • Co-ordinated and comprehensive approach to policy formulation and implementation. More joined up government

15. DRIVER: INVESTMENT BARRIER 2: LACK OF FUNDING • Students/grads –ltd funds, no collateral, debt, attraction of good jobs • BI/BC – more from poor backgrounds • Academics – lack of proof of concept funding Recommendation • Develop micro-finance schemes/golden hellos • More SPEED programmes • More proof of concept funding -eg ICUK

16. DRIVER : ENTREPRENEURSHIP BARRIER 3: LACK OF SUPPORT FOR ENTREPRENEURSHIP • Parents/tutors averse • Lack of sufficient mentoring support • BI/BC lower self-employment vs WB Recommendation • Raise parents awareness • Embed enterprise education in curricula • Re-examine BERR PSA 6 and 10

17. DRIVER : INNOVATION BARRIER 4: LACK OF AWARENESS, RECOGNITION, INCENTIVES • Lack of incentives for academic staff • Lack of recognition of non-research students’ innovation potential • Lack of knowledge of IP Recommendations • Include entrepreneurship in promotion criteria • Increase central support for students • Provide awareness raising programmes

18. DRIVER : SKILLS BARRIER 5: LACK OF POOL OF INDIGENOUS SCIENTISTS • Lack of sufficient pool of indigenous scientists • India/China incentives for returnees • BI high proportion in SET but lower progression to research vs BC Recommendation • continue interventions to increase A level SET • Encourage more progression of graduates to research work

19. DRIVER: COMPETITION BARRIER 6: LACK OF SUPPORT FOR INTERNATIONALISATION • Lack of incubator space • Lack of eligibility for SPEED • Lack of reciprocal links with overseas • Lack of sufficient inter-disciplinary collaboration Recommendations • Provide incubator space, soft landings, links, exchanges, collaborative work

20. DRIVER: COMPETITION BARRIER 7: LACK OF NETWORKS FOR INTERNATIONALISATION • Lack of relationship development with overseas students, alumni, visiting parents • Lack of sufficient engagement of EM and global networks with universities • Lack of awareness of Indian overseas citizenship Recommendations • Promote networks & skills in leveraging

21. BARRIER 8: LACK OF RESEARCH EVIDENCE • No evidence of scale of student ambitions, activities among home and overseas students • No data on ethnicity and entrepreneurship education • Little data on self-employment destinations • No evidence of impact of student debt Recommendation More quantitative and qualitative research

22. CONCLUSIONS (1) • Make better use of competitive advantage of BI and BC and investigate graduate s-e • More recognition of non-research students – Cinderella of university entrepreneurship • Provide infrastructure support including micro-finance

23. CONCLUSION (2) • More recognition that overseas students/staff provide seedbeds of international entrepreneurship • Promote networks & networking skills • More joined up policy making at all levels