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Citation Jones Paul Forbes-Simpson Kellie Newbery Robert and Maas Gideon (2015)Beta an experiment in funded undergraduate start up Industry and Higher Education 29(5) pp 405-418 ISSN 0950-4222

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Beta an experiment infunded undergraduatestart-up

Paul Jones Kellie Forbes-Simpson Gideon Maas andRobert Newbery

Abstract This paper reports on an evaluation of a funded undergraduateproject designed to enable student business start-up The programmeentitled lsquoBetarsquo provides undergraduate students with pound1500 of seed-cornfunding The key objective of the project is for the participants to exit itwith a viable and legal business entity through which they can start tradingon completion of the course The study adopts a case study approach andevaluates all aspects of the Beta programme the actors involved and itsprocesses and practices The authors examine the development of theproject and the challenges and hurdles that were identified and overcometo realize the projectrsquos goals

Keywords Beta funding seed-corn student start-up undergraduatebusiness

Paul Jones (corresponding author) is Professor in Entrepreneurship and Gideon Maas isProfessor of Entrepreneurship in the International Centre for TransformationalEntrepreneurship The Hub ndash Room 110 Coventry University Jordon Well CoventryCV1 5QR UK E-mail ac0359coventryacuk Robert Newbery is an AssociateProfessor in the Futures Entrepreneurship Centre Plymouth University Mast HouseDevon UK Kellie Forbes-Simpson is Graduate Tutor in Enterprise and EntrepreneurshipNewcastle Business School Northumbria University Newcastle Upon Tyne UK

As the UK emerges from recession entrepreneurshipactivity is being mooted by politicians as a panacea forgenerating employment and economic prosperity on aglobal basis (Kuratko 2005 Matlay 2005 Fayolle et al2006 Nabi et al 2006 Siegel et al 2007) Indeed itcould be argued that ongoing cuts to the UKrsquos public-sector provision makes increased entrepreneurial activityan economic necessity (Acs and Szerb 2007)Previously Baldassarri and Saavala (2006) haveidentified the need for more people to undertake businessstart-up while Rae et al (2011) and QAA (2012) havesuggested that all students need to acquire an enterprisingmindset and skillset to prepare them for employment

In recent years there has been increased globalinterest in entrepreneurship education which has

resulted in a proliferation of higher education (HE)programmes in the discipline (Klapper 2004 Pittawayand Cope 2007 Jones and Jones 2011 Raposo and DoPaccedilo 2011) Despite this growth there is ongoingdebate about the effectiveness of entrepreneurshipeducation and there are calls for further evidence tovalidate its impact (Matlay 2005)

Several studies have focused on measuring lsquosoftrsquoimpacts such as positive changes in entrepreneurialattitudes as a result of an entrepreneurial educationexperience (Krueger et al 2000 Peterman andKennedy 2003 Souitaris et al 2007 Packham et al2010 Jones et al 2013) While such studies areinformative economically sustainable graduatestart-ups as a consequence of an entrepreneurial

INDUSTRY amp HIGHER EDUCATION Vol 29 No 5 October 2015 pp 405ndash418 doi 105367ihe20150271

intervention will remain the key measurement forentrepreneurial education (Rasmussen and Soslashrheim2006) The literature remains nascent but it is essentialthat entrepreneurship programmes can clearly enableand support graduate business start-up as part of theiroffering In terms of entrepreneurship education thepresent study draws on the QAArsquos definition oflsquoenterprise and entrepreneurshiprsquo as focusing lsquoon thedevelopment and application of an enterprising mindsetand skills in the specific contexts of setting up a newventure developing and growing an existing businessor designing an entrepreneurial organisationrsquo (QAA2012 p 6)

This study presents an evaluation of anextra-curricular funded undergraduate project designedto enable student business start-up The project entitledlsquoBetarsquo provides undergraduate students with pound1500 ofseed-corn funding with which to initiate the businessstart-up process The key objective of the programme isfor the participants to exit Beta with an economicallyviable and legal business entity which will offer thegenuine prospect of a career in self-employmentpost-graduation The study offers an evaluation of thedevelopment and impact of this innovative project andthe challenges and issues that were encountered andovercome to realize its goal

Literature surveyGraduate unemployment rates in the UK remain high at4 whilst the inactivity rate (the percentage out of thelabour force ndash for example not employed orunemployed) is 9 (ONS 2013) The development ofentrepreneurial skills and knowledge is thus becoming apriority for economic policy makers seeking to generatean enterprising and innovative society (Henry et al2005 Autio et al 2014) Greene and Saridakis (2007)found that there was a mismatch between skills acquiredat university and those required of graduates and thatentrepreneurial skills were poorly developed in the HEsector Previously Deakins and Freel (1998) and Copeand Watts (2000) have discussed the need fororganizational learning including the capacity to reflectand learn from onersquos mistakes Negative experiencescan occur during entrepreneurial activities and have aneffect on the attitudes and emotions of ownerndashmanagers(Cope 2003) Entrepreneurship education musttherefore support and encourage students to experiencethese activities and learn from them (Shepherd 2003)New guidelines have emerged in the UK (QAA 2012)intended to guide the development of theentrepreneurship education curriculum with increasedemphasis on enhanced employability andself-employability career options post-graduation

Kothari and Handscombe (2007) and Andrews andHigson (2008) suggested that universities should offertheir graduates practical real-life skills that willempower them for their future careers In a UK contextDavid Cameron the British Prime Minister at the timeof the Coalition Government identified entrepreneurialactivity as the means of achieving economic recovery inthe UK envisaging

lsquo a country where new businesses are starting upon every street in every town where entrepreneursare everywherersquo (Cameron 2011)

Recent literature has proposed that universities shouldplay a central role in encouraging entrepreneurialactivity (Der Foo et al 2005 Clarysse et al 2011Grimaldi et al 2011) while Matlay and Carey (2007)suggested that most industrialized countries havewitnessed a significant proliferation of the provision ofentrepreneurship education (Morris et al 2013) Jonesand Iredale (2010) posit that this is necessary to helpaddress the need for a trained skilled workforce able tooperate in a more flexible labour market Universitiesmust therefore play a central role in encouragingentrepreneurial activity (Di Gregorio and Shane 2003Russell et al 2008)

Hannon (2005) identified that the HE sector has acritical role in developing the levels of motivation andcapabilities of graduates to engage effectively inentrepreneurial activity and the employmentdestinations of the graduate population thus remain asubject of interest (Holden and Jameson 2002)However Nabi et al (2006) and Holden et al (2007)identified the need for more detailed research in thegraduate entrepreneur area Kolvereid and Moen (1997)found that graduates with an entrepreneurship majorwere more likely to start new enterprises than othergraduates while Lange et al (2012) found that takingentrepreneurship courses increased the amount ofbusiness start-up capital raised although these authorsalso suggested that neither taking entrepreneurshipcourses nor learning how to write a business plan hadany effect on the subsequent operating performance ofthe business

Greene and Saridakis (2007) noted that graduateentrepreneurs were more likely to be male older andfrom the artshumanities disciplines and to have parentswith entrepreneurial experience Somewhat in contrastGalloway et al (2005) suggested that graduate start-upsare likely to have a longer term outcome in terms ofsurvival and growth for scienceengineering students

Low rates of graduate entrepreneurship (only about4 of UK graduates are entrepreneurs) could be a resultof a lack of awareness of the entrepreneurial career

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015406

option For example the CIHEndashNCGEndashNESTA (2008)report noted that because graduates will often attempt tostart an entrepreneurial venture around the age of 30universities should assist their alumni by providingsupport services such as marketing research Bennettand Robson (1999) noted that the use by smallbusinesses of external advice is often dependent on thesize of the business with micro-enterprises usingadvisory services least frequently Greve and Salaff(2003) recognized that social relations and networksplay a significant role in establishing an enterpriseRobson and Bennett (2000) suggested that family orfriends act as a regular source of advice for manymicro- and small business ownerndashmanagers inparticular where sensitive issues are involved Greeneand Saridakis (2007) Matlay (2008) and Pickernell etal 2011) confirmed this and suggested that the mostlikely sources of advice and guidance for graduateentrepreneurs are informal involving family workcolleagues and social networks as well as universities

However Hegarty and Jones (2008) suggested thatthere is still considerable work to be done to developsocial networks for graduate entrepreneurs They alsonoted that social networks for graduate entrepreneursare dependent on industry experience and the effectiveacquisition of capital The literature however claimsthat graduates have been poorly prepared for futurebusiness activity (McLarty 2003 Pittaway and Cope2007 Wilton 2008) Furthermore if graduates havedeveloped awareness of entrepreneurship they often donot have a support network for their enterprise Thismay be a considerable problem for young graduateentrepreneurs with minimal prior work experience withthe consequence that even if they have anentrepreneurial intention a lack of access to networkswill restrict business start-up options (Birley 1985)Chrisman and McMullan (2004) concluded that it ispossible to create awareness by substituting networksfor brokers

According to Robson and Bennett (2000) and CIHEndashNCGEndashNESTA (2008) there are several sources ofbusiness advice and resources both inside and outsideuniversities for graduate entrepreneurs These includecourses offered by universities and formal businesssupport agencies business associations banks solicitorsaccountants and external business professionals In theliterature access to and lack of finance is also cited as aparticular barrier to entrepreneurship (Fielden et al2000) Research by GEM UK on a sample of some32500 working age adults in the UK revealed thatobtaining finance was the largest barrier to graduatesstarting a business (GEM 2007) Fielden et al (2000)suggested that where entrepreneurs are unable to obtainfinance they often have to resort to personal loans and

where possible re-mortgaging their own homes Greeneand Saridakis (2007) however claimed that there doesnot appear to be a finance gap for graduate entrepreneursbecause such individuals may find it easier both to accessand raise finance than non-graduates due to graduateshaving enhanced skills and knowledge (Fraser 2005)There is a need for a greater understanding of the effectsof access to finance on graduate entrepreneurship Thereare many HE courses on how to start and finance a newbusiness (Shane 2003) and it has been found that forentrepreneurial knowledge prior to entrepreneurialeducation knowledge of finance was generally poor butthat awareness of finance improved considerablyfollowing entrepreneurial education (Matlay 2008) Wemust therefore consider what processes within thediscipline of entrepreneurship education enable businessstart-ups to occur

Entrepreneurship education processes toenable start-upAs already noted entrepreneurship educationprogrammes have proliferated in the last decade both inthe UK and globally Best practices have emerged askey mechanisms to support business start-ups Forexample Huffman and Quigley (2002) Russell et al(2008) and Jones and Jones (2011) noted that businessplan competitions provide a mechanism for newbusiness start-up and for encouraging entrepreneurialideas talents and potential Der Foo et al (2005) notedthe role of these competitions in the development ofteam-building skills and using new technologiesFurthermore Huffman and Quigley (2002) suggestedthat such competitions potentially link entrepreneurswith sources of funding Activities such as businessskills development team-building mentoring judgesrsquofeedback and networking are key elements of aneffective business planning competition (Russell et al2008) Atchison and Gotlieb (2004) noted that businessplan competitions offer the opportunity to acquire andenhance generic skills and practical knowledgeconcurrently The development of both is essential fordeveloping quality graduates with self-employabilitycompetencies valued by both the private and publicsector (Bowden and Marton 1999) Russell et al (2008)suggested entrepreneurial skills development increasedself confidence and risk-taking propensity access tomentors and networking opportunities as fundamentalcomponents offered by effective business planningcompetitions Equally Mason and Arshed noted that theacquisition of real world experience was important toboth SMEs and employers (Mason and Arshed 2013)

We can conclude that the provision of businesscompetitions can be considered beneficial to graduate

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 407

business start-up Jones and Jones (2011) summarizedbest practice as ensuring such competitions arecompulsory and embedded in and across the curriculumThe competition is thus made relevant and students willunderstand its importance and commit to it In additiondedicated university staff should support and managethe competition to help create institutional focusstakeholders and internal commitment There should beprovision of launch capital to incentivise and providerealism and appropriate business mentor support shouldbe provided with both internal and external advisorsUniversity systems should provide legal protection andappropriate advice regarding health and safetyimplications trading practices insurance intellectualproperty etc Finally with regard to business planningcompetitions best student practice should be recognizedby the award of prizes to reward innovation andcreativity It is therefore important that systemic bestpractice is imbedded into systems to facilitate graduatestart-up

Pre-incubator systemsPre-incubators are a facility for supporting nascententrepreneurs offering an environment in which todevelop and test a nascent business idea (Albert andGaynor 2006) The literature in this area suggests thebarriers to start-up are typically lack of capital limitedrelevant knowledge and skills including personal skillsinsufficient market research inferior management skillsincluding financial management and ignorance of theworth of intellectual property (USINE 2002) Thelsquopre-phase facilityrsquo or pre-incubation stage offers ameans of overcoming these obstacles Voisey et al(2013) noted that pre-incubation is the starting point ofa longer process of development consisting of threestages for a new business

(1) Pre-incubator stage ndash ideas and teams are nurtured(2) Incubator stage ndash once there a business plan is

prepared and(3) Post-incubator stage ndash when enterprises move out to

lsquogrow-on spacersquo (Broadfoot and Sheen 2002)

USINE (2002) confirmed the importance ofpre-incubators in serving as a mechanism for filteringout non-viable businesses The presence ofpre-incubation services linked to universities can alsoencourage an entrepreneurial awareness and stimulateentrepreneurial activity (Dickson 2004) Pre-incubatorsfocus on the entrepreneur with ideasinnovations ratherthan assisting businesses that are already established(USINE 2002) Pre-incubation facilities have been

initiated by many HEIs with as much diversity aslsquostandardrsquo incubators (Voisey et al 2013) Thepre-incubation process provides the nascententrepreneur with the support necessary for thedevelopment of the business idea and plan building upthe required resources for the creation of a viablebusiness and then testing the market

Typical pre-incubator services are summarized inFigure 1 as can be seen the incubator services provideminimal-cost services to support the business start-upprocess For HEIs such provision can be seen as anearly stage incubator to enable potentialownerndashmanagers to test and evaluate the viability of abusiness idea Such provision has become popular withwidespread deployment across HEIs (Jones et al 2013)Nascent entrepreneurs are admitted into pre-incubatorswith three potential aims First there is the acquisitionof the skills required to operate a business ventureeffectively and to perform a market test of their productor services before progressing either to independence orfurther incubation Second there is market testingwhich involves purchasing production and salesproviding an opportunity for the entrepreneur to test andenhance necessary business skills (USINE 2002Voisey et al 2006) Third there are benefits to begained from in-house advisory services ndash although otheragencies may be called on to provide advice or training(Voisey et al 2006)

On completion of the pre-incubation process theincubatees should be able to start a business given asuccessful outcome from market testing based on arobust and valid business plan and to monetize the ideaand if appropriate potentially seek an alliance with aventure capitalist (Halt et al 2014) Incubator facilitiesof all types are typically measured with regard toobjective outputs ndash for instance the number ofsuccessful enterprises lsquograduatingrsquo from the incubatorand the levels of income generated over a given periodare clear and necessary metrics Softer more subjectiveoutcomes manifest themselves through the positiveeffect the experience may have on the learning anddevelopment of entrepreneurs providing a basis forimproved employment opportunities and a possiblefuture return to enterprise (Voisey et al 2006)

Pre-incubators thus focus on enabling would-beentrepreneurs to learn about and engage with thefundamental aspects of business start-up businessincubators in contrast focus on taking up businessesthat have experienced these lsquobasicsrsquo and are ready tomove to the next level of development There istherefore a need to embrace best practice from businessincubation as part of experiential-focused enterpriseeducation It is clear that there is selection of literaturefrom business competitions and incubators illustrating

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015408

best practice in enabling graduate start-up This presentstudy will seek to identify the impact and best practiceinherent in the Beta project

ApproachmethodologyThe study used a case study approach and evaluated allaspects of the Beta project the actors involved and itsprocesses and practices Eisenhardt (1989) Yin (2003)and Eisenhardt and Graebner (2007) support the use of asingle case study methodology regarding it as acomprehensive rigorous and coherent approach whichcan add significantly to a body of knowledge The casestudy method enabled lsquohowrsquo and lsquowhyrsquo questions to beasked in order to understand the nature and complexityof the processes being undertaken (Benbasat et al 1987)due to its tradition of capturing rich contextual data(Levy and Powell 1999) and enabling in-depthexamination of the subject (Jones et al 2014)

A two-stage data collection process method wasused first an electronic survey of the participatingstudents was carried out to measure the effect of andattitudes towards the Beta project and secondsemi-structured interviews with academics the projectteam Entrepreneurs in Residence (EiRs) and students

were used to gain a more detailed appreciation of itsimpact A qualitative data collection process was usedkey actors interviewed included the Centre Director theProject Manager Academics (3) EiRs (3) andapplicants and participants (15) The EiRs are externalbusiness people employed on a part-time basis (one dayper week) by the Centre and act as mentors for Betaapplicants All of these participants were selectedbecause of their involvement in the development andday-to-day operation of the project The Beta applicantswere volunteers who chose to undertake the programmeas an extra-curricular activity

A web survey was developed using SurveyMonkeycopy software to examine the impact of andattitudes towards the study (Collins 2003) For thequalitative process two interview guides were createdusing a common template one for university staffinvolved with the project and one for applicants Thisenabled valid cross-group comparisons to be made(Jones et al 2013) Both the web and semi-structuredinstruments were evaluated by external academicsindependent of the research team (Beecham et al 2005)Suggested changes ndash typically to improve thereadability of the research instruments ndash weresubsequently adopted

Figure 1 Business incubator services

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 409

Face-to-face personal interviews were preferred overother data collection methods because they enabled theinterviewers to probe and clarify answers (de Leeuw2005) The research instruments were designed to elicitresponses from all parties on the value experience andimpact of the Beta project The data were collated andanalysed by the research team and used to develop anunderstanding of the impact and effectiveness of theprogramme

A semi-structured research instrument wasdeveloped with a set of open-ended questions whichallowed the respondents to talk at length about thetopics (Johannessen et al 1999) These questions wereused as prompts for each interview ensuring novariation from the research focus (Poon and Swatman1999)

Applicants were contacted by e-mail and invited toparticipate in the study 15 of 18 programme applicantsagreed to do so Respondents completed the electronicsurvey and then undertook the semi-structuredinterview interviews were typically between40ndash60 minutes in duration (Maznevski and Chudoba2000) Staff and programme applicants wereinterviewed by a team of independent researchers notinvolved in the Beta programme to avoid the possibilityof respondent bias (Dillman 1978) On request Betaparticipant anonymity was protected by the use of acoding system and so managers of the Beta programmewere not able to link quotations to individualparticipants (Fox and Tracy 1986) The coding systemused coded individuals thus

bull Beta participants (BP AndashO)bull Academics (A1ndash3) andbull EiRs (1ndash3)

The research study also secured internal ethical approvalby submitting the research proposal which confirmedthat participation in the study was optional and that allrespondentsrsquo contributions were anonymized (Bell andBryman 2007) to the university research committeeTo improve the validity of the research each respondentwas provided with a transcript of their interview andasked to confirm and approve its content (MacLellan2001) The contents of all the interviews were thencompared and contrasted to identify key themesassociated with the study This involved a process of

data reduction display and conclusion drawing andverification (Miles and Huberman 1994)

Description of the Beta projectThe project involves a two-stage process During thefirst stage the Centre promotes the Beta project throughpresentations to student groups and invites applicants toattend an informal interview regarding the possibility ofentering the scheme Applications are welcomed fromgroups and individuals it is recognized that a viablebusiness entity could require a collective or team effortto increase the levels of knowledge and expertiseinvolved During the initial interview earlyconversations focus on the personal attributes of theapplicant(s) their interests and potential business ideasIf participants remain interested following the interviewthey can progress to the second stage at which the Betaprogramme takes students through the process ofdeveloping a concept and turning it into a viablebusiness venture Applicants complete an applicationform outlining their business idea and a timescale forimplementation

Beta allows students to develop their entrepreneurialskills in a supportive environment with one-to-onementoring and the opportunity to receive anon-repayable grant of up to pound1500 to kick-start theirbusiness idea The programme also offers severaltraining sessions with experts for example they have asession with an intellectual property expert a marketingexpert and a financial advisor to help refine their idea

Beta currently runs once a year and had 20 studentson the programme for the 2013ndash2014 academic year Akey strength of the programme is the supportiveno-strings environment it provides for students in whichto experiment and take lsquosafe risksrsquo Business ideas areexpected to be innovative and able to meet a marketneed In the Beta programme mistakes are not seen as asetback but rather as part of a process for teachingstudents how to learn and recover from failure andsetbacks

Process detail

Figure 2 illustrates the operational processes involved inthe Beta programme The students join the programmewith an initial idea this is then developed by the student

Figure 2 The Beta programme process

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015410

with advice from a mentor each student in the schemebeing allocated a mentor (typically an Entrepreneur inResidence) When ready the student is asked to pitchthe business idea to an Advisory Panel (made up ofinternal and external members of the EntrepreneurshipCentre) whose purpose is to evaluate the validity of theidea If the idea is considered viable the idea isapproved and the student is given access to the pound1500funding If the idea is not approved recommendationsare made for improvement and the student is asked toreconsider the idea The idea can be rejected outright atthis stage and the student asked to improve it orconsider an alternative

If funding is granted the student must use the moneyto create a valid business entity which is then launchedStudents then have an opportunity to bid for a secondequity investment (up to pound50000) to facilitate furtherdevelopment and growth of their business The processfor this second tranche of funding involves an interviewwith a potential business angel or provision of access tocrowdfunding

Beta pedagogyThe programme uses a cycle of ongoing reflectivelearning derived from the models of experientiallearning developed by Schoumln (1987) and Kolb (1984)The core of the learning strategy consists ofencouraging the development of the business idea basedon development of development creativity andcognition (Corbett 2005) The Beta programmeencourages innovation by requiring participants todevelop a viable idea which has the potential to becomea growing entity Non-growth lsquolifestylersquo typeapplications are not supported In addition enterprisesmust be seen to meet a business need rather thanproviding additional supply (for example a standardservice-sector business would be discouraged unlesssignificant justification is provided) Theseconsiderations will be identified on the applicantrsquosinitial application

Part of this process is the requirement for receivingcontinuous feedback from EiRsacademic staff in anon-classroom environment regarding the developmentof the idea The learning space in this instance was anEntrepreneurial Centre with a flexible learningenvironment Participants were also encouraged to sharetheir idea and invite feedback from their peer group thefeedback promotes self-reflection and encourages theacquisition of new information to enhance the businessidea The flexible learning space enabled bothone-to-one and one-to-many tutor sessions with a focuson the facilitation of learning and knowledge exchangeParticipants would meet regularly with their mentor and

develop elements of the business idea After eachmentoring session the participants were asked toconsider and reflect on the session and its implicationsfor their idea The entire project was underpinned by thecore principle of developing a personalized creativepractical and collaborative ethos

FindingsThe key themes investigated were key driversmotivations programme benefits challengesknowledge and skill development attitudinal impact andbusiness support requirements

Key drivers

The Academic Director of the Entrepreneurship Centrewas asked to explain the purpose of the Betaprogramme The Director responded thus

lsquoThe purpose of Centre is to stimulatesocio-economic growth It is a hybrid structure ofacademia and business We aim for a seamlessstrategy towards socio-economic growth The Betaprogramme is a key enabler to closing the gapbetween academia and businessrsquo

Thus the key purpose of the Beta programme was tobridge the gap between academia and business andprovide an enabling system to allow students toundertake a business start-up within the universityinfrastructure

Motivations

Respondents were asked to identify their motivationsfor undertaking the Beta programme In descendingorder these were

bull To increase their chance of starting a business(67)

bull Gaining financial support (60)bull To have individual mentoring (60)bull To increase business knowledge (53) andbull To increase entrepreneurial skills (53)

It was thus apparent that the cohort was motivated toundertake the programme by the opportunities offered toboost their entrepreneurial competencies with the addedbenefit of acquiring seed-corn funding Individualmentoring support was also identified as an importantdriver in undertaking the programme

Benefits

The participants were asked what they had foundbeneficial in the programme In particular responseswere noted about the central role of the EiR and

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 411

provision of specific advice in intellectual property andbusiness insurance Representative comments were

lsquoReceiving the funding to help support our businessrsquo(Beta Participant A)

lsquoThe personalized help and support given but alsothe friendliness of the staff as encouragement toproceed forwardsrsquo (BP C) and

lsquo I feel that I have developed a lot of confidence inmy business idea as I came to the programme veryhesitant and shy to talk about my idearsquo (BP H)

The provision of funding was identified as of criticalimportance as were the individual support and adviceprovided by EIRs to build confidence and develop aviable business idea All the respondents recognized theimportance of the individual mentoring support they hadbeen offered which had built their confidence andself-belief EiRs commented

lsquoActing as a mentor to the students is extremelyrewarding I feel I benefit from their enthusiasm andthey benefit from my experiencersquo (EiR 1) and

lsquoI fill in the gaps a little there are things which theydo not consider and my knowledge helps them toproduce a more rounded business planrsquo (EiR 2)

Challenges

The respondents were asked to identify the challengingelements of the Beta programme Respondentsmentioned in particular their initial nervousness aboutgoing through the process of pitching their idea to apanel of Beta staff and the need to balance theextra-curricular Beta programme with their course ofstudy Typical comments were as follows

lsquoI think the most challenging part of the programmehas been overcoming my lack of confidence inmyself and my idea as it is pretty daunting startingup your own business Itrsquos never really beensomething I have seen myself doing But of courseIrsquom not as scared as I was I feel a lot more confidentdue to working with the EiR as he encouraged me tosee my idea from a different point of view instead ofme being critical he allowed me to see the fun sideto it again which was greatrsquo (BP N)

lsquoThe pitch very nerve-rackingrsquo (BP I)

lsquoWorking it around university and othercommitmentsrsquo (BP E)

The problem of nervousness is perhaps understandableThe participantrsquos emotional state was apparent inseveral comments and it was noticeable that Beta hadinitiated both positive and negative emotions This wasrecognized by the academic team who commented

lsquoWe recognized early on that we had to strike thebalance in challenging the participants to defend theiridea whilst providing a supportive and friendlyenvironmentrsquo (Academic B)

The Beta team did provide a supportive but professionalenvironment to enable the participants to reflect andevaluate their idea effectively The academic team andEiRs were known on a first-name basis by Betaparticipants although the relationship remainedrespectful and supportive throughout For their partstudents were prepared to undertake a business start-upactivity as an extra-curricular activity because theyappreciated the benefits the process would provide

Participants were also asked if any part of the Betaprogramme had resulted in a negative impact on settingup a business Fourteen said that this was not the casethere was one response otherwise

lsquoWhen I found out my first business idea was notlogistical [sic] and financially viable I lost allmotivation but with a new idea I liked I was back ontrackrsquo (BP N)

This statement identifies both the positive and negativepotential impacts of the Beta programme Theindividual concerned found that their idea was notfeasible this is an essential purpose of the programmein that it provides a safe environment in which toevaluate an idea In this case the student involved wasable to develop a fresh idea

Knowledge and skill development

The participants were asked to consider how theprogramme had affected the development of theirknowledge and skills using a five-point Likert-stylescale Table 1 presents the full data and the followingsummarizes the key findings

The students considered that the programme hadhelped them significantly in identifying opportunitieswith 13 (87) either agreeing or strongly agreeing withthe notion It is useful here to recall that as part of theBeta programme students were expected to undertake afeasibility analysis of a business idea and to progresswith valid ideas only

Some two-thirds of the students lsquostrongly agreedrsquo orlsquoagreedrsquo that the Beta programme had developed theircapacity to adopt innovative approaches and enhanced

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015412

their problem-solving capabilities The EiRs andacademic staff encouraged Beta participants to seekunique and innovative solutions that would createeconomically sustainable business start-ups

Participants were asked whether the programme hadhelped to build their resilience and ability to overcomechallenges again the results were positive with 12(80) recording lsquostrongly agreersquo or lsquoagreedrsquo

The next aspect considered was whether theprogramme had helped to develop their ability to limitand manage risk The results were positive with 10(67) in agreement and two (13) strongly agreeing

Respondents were asked to identify whether thecourse had helped them to evaluate issues and makedecisions The responses were positive with 10 (67)in agreement and two (13) strongly agreeing Withregard to the encouragement students had received todevelop networks with peers and external contacts usingthe Entrepreneurial Society and social media it wasapparent that the students had done so with 14 of the 15(93) answering positively

Reflection is a strong element of the Betaprogramme participants are required in particular toconsider the viability of their ideas 12 (80) agreedthat there was sufficient time to reflect generally on theirenterprising skills

Responses were less favourable when studentswere asked whether the programme had providedopportunities for collaborative working The majority ofideas in the first cohort were individual and so only four(26) agreed or strongly agreed with this and six (40)disagreed or strongly disagreed

When they were asked if the programme had helpedthem to develop their business idea 100 answeredfavourably a strong endorsement for the value of theprogramme

Participants were asked to indicate whether theprogramme had enhanced their understanding of thefinancial and legal implications of their businessproposal The responses were highly supportive with 13(86) agreeing or strongly agreeing

Equally 13 (86) thought that the programme hadhelped them to identify their target markets 14 (93)that it helped them to articulate their business ideas and14 (93) that it helped build their confidence Finally14 (93) agreed with the notion that the programmehad enabled them to understand what it took to start abusiness Overall 93 of students answeredfavourably with only one (7) negative responsesuggesting that the Beta programme was fit for purposeand enabled the participants to develop viable businessideas

Table 1 Skills and competencies developed

Question Stronglydisagree

Disagree Neitheragree nordisagree

Agree Stronglyagree

Developed your ability in identifying opportunities 0 0 2 (13) 6 (40) 7 (47)

Developed your capacity to take innovativeapproaches

0 1 (7) 4 (27) 2 (13) 8 (53)

Built your resilience and ability to overcomechallenges

0 0 3 (20) 5 (33) 7 (47)

Developed your ability to limit and manage risk 0 0 3 (20) 10 (67) 2 (13)

Helped you to evaluate issues and make decisions 0 1 (7) 3 (20) 10 (67) 2 (13)

Helped build your networks 0 1 (7) 0 8 (53) 6 (40)

Allowed you time to reflect on your enterprising skills 0 2 (13) 1 (7) 5 (33) 7 (47)

Developed opportunities for collaborative working 3 (20) 3 (20) 5 (33) 2 (13) 2 (13)

Helped you to develop your business idea 0 0 0 3 (20) 12 (80)

Helped you to recognize financial and legal implicationson a business proposal

0 0 2 (13) 5 (33) 8 (53)

Identify target markets 0 1 (7) 4 (27) 5 (33) 5 (33)

Helped you articulate your business ideas 0 0 1 (7) 6 (40) 8 (53)

Built your confidence to start a business 0 0 1 (7) 4 (27) 10 (67)

Understand what it takes to start your own business 0 0 1 (7) 8 (53) 6 (40)

Note sample size N=15 percentages have been rounded to integers

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 413

Self-employability intentions

The respondents were asked to identify whether theyrequired any further support for developing theirbusiness Overall 13 (87) said that they did notrequire any further support but two respondents felt theneed for further help

lsquoFurther financial and legal advice I need moreknowledge on how to set up partnerships legalaspectsrsquo (BP B)

lsquoThere will always be need for continuous supportrsquo(BP C)

Career intentions

Perhaps the most important question in a study such asthis is deals with the attitudes to an entrepreneurialcareer the results for this programme are presented inTable 2 As can be seen these responses based on afive-point Likert-style scale are generally favourablewith 14 of the 15 (93) indicating that they were likelyor very likely to continue with their business post-graduation and 13 (87) suggesting it was very likelythat they would look to set up a business at some stagein the future Equally only four (27) suggested thatthey would be likely to work for a large organizationand none of the cohort wanted to undertakepostgraduate study because they were more interested inthe prospect of an entrepreneurial career These resultssuggest that the programme achieved its stated aim ofpreparing students for an entrepreneurial career

DiscussionThis study responds to the calls for further research ingraduate entrepreneurship from Nabi et al (2006) and

Holden et al (2007) The increase in the number ofentrepreneurship education programmes has been drivenby policy makers and economic necessity howeverthere is a real need to confirm and exchange bestpractice to facilitate business start-ups This is the focusof this study and we believe its key contribution to thetopic

Overall the Beta programme can be judged assuccessful in enabling students to evaluate test andgrow their nascent ideas into viable business start-ups(Albert and Gaynor 2006) All the responses collectedregarding the various measures suggest that Beta had apositive impact on attitudes and skills Programmeparticipants were motivated to join Beta because of theattraction of starting a business obtaining start-upcapital accessing mentors and improving theirentrepreneurial competencies

In essence the Beta project is an amalgam of theconcepts regarding pre-incubators and businesscompetitions discussed in the literature consideredabove and elsewhere (Voisey et al 2013) The keyelements identified in Jones and Jones (2011) theprovision of dedicated staff (Stephens and Onofrei2012) and launch capital business mentors andspecialist advice (Allen and McCluskey 1990) are allcentral to the Beta programme

The provision of seed-corn funding to graduateentrepreneurs is critical in providing a real worldcontext and motivation for participation (Huffman andQuigley 2002 Kirby 2006) All Beta participantswelcomed this aspect and cited it as a contributoryfactor regarding their participation Lack of finance haspreviously been cited as a key barrier to entrepreneurialactivity (Fielden et al 2000) and Beta overcomes thisobstacle albeit with a limited level of initial capitalinvestment

Table 2 Future career intentions

Responses Very unlikely Unlikely Undecided Likely Very likely

How likely are you to continue with your business aftergraduation

0 0 1 (7) 6 (40) 8 (53)

How likely are you to set up another business aftergraduation

0 1 (7) 7 (47) 0 7 (47)

How likely are you to set up a business at some stagein the future

0 0 0 2 (13) 13 (87)

How likely are you to work for a small to medium-sizedenterprise after graduation

0 3 (20) 6 (40) 3 (20) 3 (20)

How likely are you to work for a large organization 3 (20) 3 (20) 5 (33) 4 (27) 0

How likely are you to take on a postgraduateprogramme after graduation

6 (40) 4 (27) 5 (33) 0 0

Note sample size N=15 percentages have been rounded to integers

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015414

The Beta programme recognizes the need to buildself-confidence and enterprise skills whilst allowing theparticipants to test and validate their business ideas Itwas apparent that the project allowed students toexperience both positive and negative emotionsNegative emotions (such as uncertaintydisappointment) arose when a business idea was judgednot to be viable following evaluation and reflection bythe participants and mentors (Cope 2003) On occasionparticipants experienced fear and trepidation at theprospect of having to present their idea to a panelalthough following the pitch all participants appreciatedthe experience and recognized its value in enhancing theidea and their own personal development Thesenegative experiences and emotions were just asimportant as the positive experiences because theyallowed the participants the opportunity to reflect andreconsider their actions (Shepherd 2003)

Beta also gave participants a chance to developsocial and formal networks with their peers andmentors The provision of experienced EiRs as businessmentors was recognized as a central tenet in theprogrammersquos success (as noted elsewhere see forexample Greene and Saridakis 2007 Matlay 2008Pickernell et al 2011) The EiRs offered regularprofessional advice and guidance that was used to shapethe studentsrsquo ideas from an early stage EiRs were aconstant presence for the participants throughout theproject and developed a strong and friendly relationshipbased on trust and understanding with each student

On completion of the programme the objective forparticipants is to create a legal fit-for-purpose entitywhich is ready to trade This is a realistic and justifiableproposition In terms of future development the Betaprogramme offers the potential of an intra-universityprocess of business start-up across and includingdifferent disciplines An expansion in its provisionthroughout the university would be a logical next step inits development In terms of future improvements theBeta team would like to create greater engagement withexternal business and crowdfunding networks Therewill be a need to expand the pool of mentors withrelevant expertise in the various disciplines to ensurethat growth across the university is successfullyachieved

ConclusionsThe initial pilot of the Beta project has provedsuccessful with positive feedback from the participantsAs noted above the Centre recognizes the need toembed the programme throughout the university Inaddition there is also a need to integrate the secondlevel of seed-corn funding into the scheme and to ensure

that the supporting entrepreneurs understand therequirements of the both the Centre and its applicants

In terms of best practice the authors recommend thefollowing main considerations

(1) A flexible learning environment should be providedwithin which experiential leaning creativity andinnovation can be effectively supported

(2) A standard classroom delivery should be avoidedbecause it will not produce the desired outcome

(3) Experienced mentors ideally in the form of EiRsshould be provided the mentors must be individualswho can support students effectively in thedevelopment of a viable business idea

(4) Initial seed-corn funding is critical in providing alsquoreal worldrsquo context for participants

(5) Participants must be encouraged to reflect evaluateand potentially rebuild their business idea at allstages of the process

In terms of implications for practice programmes suchas Beta offer a blueprint for entrepreneurship educationin HEIs University decision makers must understandthe importance of encouraging entrepreneurial activityin undergraduate programmes and providecross-university programmes such as Beta that enablein particular access to internal and external seed-cornfunding

The authors recognize that this research is limited toone university case study and the responses are drawnfrom a small cohort of students Generalizing the resultsmust therefore be treated with caution There is a needfor ongoing longitudinal research contrasting bestpractice from a range of universities In addition theissue of positive and negative emotions created bystart-up programmes also requires further examination

ReferencesAcs Z and Szerb S (2007) lsquoEntrepreneurship economic

growth and public policyrsquo Small Business Economics Vol 28No 2ndash3 pp 109ndash122

Albert P and Gaynor L (2006) lsquoTechnology businessincubation management lessons of experiencersquo inBernasconi M Harris S and Moensted M edsHigh-Tech Entrepreneurship Managing Innovation Varietyand Uncertainty Routledge London pp 131ndash143

Allen DN and McCluskey R (1990) lsquoStructure policyservices and performance in the business incubatorindustryrsquo Entrepreneurship Theory and Practice Vol 15 No2 pp 61ndash77

Andrews J and Higson H (2008) lsquoGraduate employabilitylsquolsquosoft skillsrsquorsquo versus lsquolsquohardrsquorsquo business knowledge a Europeanstudyrsquo Higher Education in Europe Vol 33 No 4pp 411ndash422

Atchison M and Gotlieb P (2004) lsquoInnovation and the futureof cooperative educationrsquo in Coll R and Eames C edsInternational Handbook for Cooperative Education AnInternational Perspective of the Theory Research and

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 415

intervention will remain the key measurement forentrepreneurial education (Rasmussen and Soslashrheim2006) The literature remains nascent but it is essentialthat entrepreneurship programmes can clearly enableand support graduate business start-up as part of theiroffering In terms of entrepreneurship education thepresent study draws on the QAArsquos definition oflsquoenterprise and entrepreneurshiprsquo as focusing lsquoon thedevelopment and application of an enterprising mindsetand skills in the specific contexts of setting up a newventure developing and growing an existing businessor designing an entrepreneurial organisationrsquo (QAA2012 p 6)

This study presents an evaluation of anextra-curricular funded undergraduate project designedto enable student business start-up The project entitledlsquoBetarsquo provides undergraduate students with pound1500 ofseed-corn funding with which to initiate the businessstart-up process The key objective of the programme isfor the participants to exit Beta with an economicallyviable and legal business entity which will offer thegenuine prospect of a career in self-employmentpost-graduation The study offers an evaluation of thedevelopment and impact of this innovative project andthe challenges and issues that were encountered andovercome to realize its goal

Literature surveyGraduate unemployment rates in the UK remain high at4 whilst the inactivity rate (the percentage out of thelabour force ndash for example not employed orunemployed) is 9 (ONS 2013) The development ofentrepreneurial skills and knowledge is thus becoming apriority for economic policy makers seeking to generatean enterprising and innovative society (Henry et al2005 Autio et al 2014) Greene and Saridakis (2007)found that there was a mismatch between skills acquiredat university and those required of graduates and thatentrepreneurial skills were poorly developed in the HEsector Previously Deakins and Freel (1998) and Copeand Watts (2000) have discussed the need fororganizational learning including the capacity to reflectand learn from onersquos mistakes Negative experiencescan occur during entrepreneurial activities and have aneffect on the attitudes and emotions of ownerndashmanagers(Cope 2003) Entrepreneurship education musttherefore support and encourage students to experiencethese activities and learn from them (Shepherd 2003)New guidelines have emerged in the UK (QAA 2012)intended to guide the development of theentrepreneurship education curriculum with increasedemphasis on enhanced employability andself-employability career options post-graduation

Kothari and Handscombe (2007) and Andrews andHigson (2008) suggested that universities should offertheir graduates practical real-life skills that willempower them for their future careers In a UK contextDavid Cameron the British Prime Minister at the timeof the Coalition Government identified entrepreneurialactivity as the means of achieving economic recovery inthe UK envisaging

lsquo a country where new businesses are starting upon every street in every town where entrepreneursare everywherersquo (Cameron 2011)

Recent literature has proposed that universities shouldplay a central role in encouraging entrepreneurialactivity (Der Foo et al 2005 Clarysse et al 2011Grimaldi et al 2011) while Matlay and Carey (2007)suggested that most industrialized countries havewitnessed a significant proliferation of the provision ofentrepreneurship education (Morris et al 2013) Jonesand Iredale (2010) posit that this is necessary to helpaddress the need for a trained skilled workforce able tooperate in a more flexible labour market Universitiesmust therefore play a central role in encouragingentrepreneurial activity (Di Gregorio and Shane 2003Russell et al 2008)

Hannon (2005) identified that the HE sector has acritical role in developing the levels of motivation andcapabilities of graduates to engage effectively inentrepreneurial activity and the employmentdestinations of the graduate population thus remain asubject of interest (Holden and Jameson 2002)However Nabi et al (2006) and Holden et al (2007)identified the need for more detailed research in thegraduate entrepreneur area Kolvereid and Moen (1997)found that graduates with an entrepreneurship majorwere more likely to start new enterprises than othergraduates while Lange et al (2012) found that takingentrepreneurship courses increased the amount ofbusiness start-up capital raised although these authorsalso suggested that neither taking entrepreneurshipcourses nor learning how to write a business plan hadany effect on the subsequent operating performance ofthe business

Greene and Saridakis (2007) noted that graduateentrepreneurs were more likely to be male older andfrom the artshumanities disciplines and to have parentswith entrepreneurial experience Somewhat in contrastGalloway et al (2005) suggested that graduate start-upsare likely to have a longer term outcome in terms ofsurvival and growth for scienceengineering students

Low rates of graduate entrepreneurship (only about4 of UK graduates are entrepreneurs) could be a resultof a lack of awareness of the entrepreneurial career

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015406

option For example the CIHEndashNCGEndashNESTA (2008)report noted that because graduates will often attempt tostart an entrepreneurial venture around the age of 30universities should assist their alumni by providingsupport services such as marketing research Bennettand Robson (1999) noted that the use by smallbusinesses of external advice is often dependent on thesize of the business with micro-enterprises usingadvisory services least frequently Greve and Salaff(2003) recognized that social relations and networksplay a significant role in establishing an enterpriseRobson and Bennett (2000) suggested that family orfriends act as a regular source of advice for manymicro- and small business ownerndashmanagers inparticular where sensitive issues are involved Greeneand Saridakis (2007) Matlay (2008) and Pickernell etal 2011) confirmed this and suggested that the mostlikely sources of advice and guidance for graduateentrepreneurs are informal involving family workcolleagues and social networks as well as universities

However Hegarty and Jones (2008) suggested thatthere is still considerable work to be done to developsocial networks for graduate entrepreneurs They alsonoted that social networks for graduate entrepreneursare dependent on industry experience and the effectiveacquisition of capital The literature however claimsthat graduates have been poorly prepared for futurebusiness activity (McLarty 2003 Pittaway and Cope2007 Wilton 2008) Furthermore if graduates havedeveloped awareness of entrepreneurship they often donot have a support network for their enterprise Thismay be a considerable problem for young graduateentrepreneurs with minimal prior work experience withthe consequence that even if they have anentrepreneurial intention a lack of access to networkswill restrict business start-up options (Birley 1985)Chrisman and McMullan (2004) concluded that it ispossible to create awareness by substituting networksfor brokers

According to Robson and Bennett (2000) and CIHEndashNCGEndashNESTA (2008) there are several sources ofbusiness advice and resources both inside and outsideuniversities for graduate entrepreneurs These includecourses offered by universities and formal businesssupport agencies business associations banks solicitorsaccountants and external business professionals In theliterature access to and lack of finance is also cited as aparticular barrier to entrepreneurship (Fielden et al2000) Research by GEM UK on a sample of some32500 working age adults in the UK revealed thatobtaining finance was the largest barrier to graduatesstarting a business (GEM 2007) Fielden et al (2000)suggested that where entrepreneurs are unable to obtainfinance they often have to resort to personal loans and

where possible re-mortgaging their own homes Greeneand Saridakis (2007) however claimed that there doesnot appear to be a finance gap for graduate entrepreneursbecause such individuals may find it easier both to accessand raise finance than non-graduates due to graduateshaving enhanced skills and knowledge (Fraser 2005)There is a need for a greater understanding of the effectsof access to finance on graduate entrepreneurship Thereare many HE courses on how to start and finance a newbusiness (Shane 2003) and it has been found that forentrepreneurial knowledge prior to entrepreneurialeducation knowledge of finance was generally poor butthat awareness of finance improved considerablyfollowing entrepreneurial education (Matlay 2008) Wemust therefore consider what processes within thediscipline of entrepreneurship education enable businessstart-ups to occur

Entrepreneurship education processes toenable start-upAs already noted entrepreneurship educationprogrammes have proliferated in the last decade both inthe UK and globally Best practices have emerged askey mechanisms to support business start-ups Forexample Huffman and Quigley (2002) Russell et al(2008) and Jones and Jones (2011) noted that businessplan competitions provide a mechanism for newbusiness start-up and for encouraging entrepreneurialideas talents and potential Der Foo et al (2005) notedthe role of these competitions in the development ofteam-building skills and using new technologiesFurthermore Huffman and Quigley (2002) suggestedthat such competitions potentially link entrepreneurswith sources of funding Activities such as businessskills development team-building mentoring judgesrsquofeedback and networking are key elements of aneffective business planning competition (Russell et al2008) Atchison and Gotlieb (2004) noted that businessplan competitions offer the opportunity to acquire andenhance generic skills and practical knowledgeconcurrently The development of both is essential fordeveloping quality graduates with self-employabilitycompetencies valued by both the private and publicsector (Bowden and Marton 1999) Russell et al (2008)suggested entrepreneurial skills development increasedself confidence and risk-taking propensity access tomentors and networking opportunities as fundamentalcomponents offered by effective business planningcompetitions Equally Mason and Arshed noted that theacquisition of real world experience was important toboth SMEs and employers (Mason and Arshed 2013)

We can conclude that the provision of businesscompetitions can be considered beneficial to graduate

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 407

business start-up Jones and Jones (2011) summarizedbest practice as ensuring such competitions arecompulsory and embedded in and across the curriculumThe competition is thus made relevant and students willunderstand its importance and commit to it In additiondedicated university staff should support and managethe competition to help create institutional focusstakeholders and internal commitment There should beprovision of launch capital to incentivise and providerealism and appropriate business mentor support shouldbe provided with both internal and external advisorsUniversity systems should provide legal protection andappropriate advice regarding health and safetyimplications trading practices insurance intellectualproperty etc Finally with regard to business planningcompetitions best student practice should be recognizedby the award of prizes to reward innovation andcreativity It is therefore important that systemic bestpractice is imbedded into systems to facilitate graduatestart-up

Pre-incubator systemsPre-incubators are a facility for supporting nascententrepreneurs offering an environment in which todevelop and test a nascent business idea (Albert andGaynor 2006) The literature in this area suggests thebarriers to start-up are typically lack of capital limitedrelevant knowledge and skills including personal skillsinsufficient market research inferior management skillsincluding financial management and ignorance of theworth of intellectual property (USINE 2002) Thelsquopre-phase facilityrsquo or pre-incubation stage offers ameans of overcoming these obstacles Voisey et al(2013) noted that pre-incubation is the starting point ofa longer process of development consisting of threestages for a new business

(1) Pre-incubator stage ndash ideas and teams are nurtured(2) Incubator stage ndash once there a business plan is

prepared and(3) Post-incubator stage ndash when enterprises move out to

lsquogrow-on spacersquo (Broadfoot and Sheen 2002)

USINE (2002) confirmed the importance ofpre-incubators in serving as a mechanism for filteringout non-viable businesses The presence ofpre-incubation services linked to universities can alsoencourage an entrepreneurial awareness and stimulateentrepreneurial activity (Dickson 2004) Pre-incubatorsfocus on the entrepreneur with ideasinnovations ratherthan assisting businesses that are already established(USINE 2002) Pre-incubation facilities have been

initiated by many HEIs with as much diversity aslsquostandardrsquo incubators (Voisey et al 2013) Thepre-incubation process provides the nascententrepreneur with the support necessary for thedevelopment of the business idea and plan building upthe required resources for the creation of a viablebusiness and then testing the market

Typical pre-incubator services are summarized inFigure 1 as can be seen the incubator services provideminimal-cost services to support the business start-upprocess For HEIs such provision can be seen as anearly stage incubator to enable potentialownerndashmanagers to test and evaluate the viability of abusiness idea Such provision has become popular withwidespread deployment across HEIs (Jones et al 2013)Nascent entrepreneurs are admitted into pre-incubatorswith three potential aims First there is the acquisitionof the skills required to operate a business ventureeffectively and to perform a market test of their productor services before progressing either to independence orfurther incubation Second there is market testingwhich involves purchasing production and salesproviding an opportunity for the entrepreneur to test andenhance necessary business skills (USINE 2002Voisey et al 2006) Third there are benefits to begained from in-house advisory services ndash although otheragencies may be called on to provide advice or training(Voisey et al 2006)

On completion of the pre-incubation process theincubatees should be able to start a business given asuccessful outcome from market testing based on arobust and valid business plan and to monetize the ideaand if appropriate potentially seek an alliance with aventure capitalist (Halt et al 2014) Incubator facilitiesof all types are typically measured with regard toobjective outputs ndash for instance the number ofsuccessful enterprises lsquograduatingrsquo from the incubatorand the levels of income generated over a given periodare clear and necessary metrics Softer more subjectiveoutcomes manifest themselves through the positiveeffect the experience may have on the learning anddevelopment of entrepreneurs providing a basis forimproved employment opportunities and a possiblefuture return to enterprise (Voisey et al 2006)

Pre-incubators thus focus on enabling would-beentrepreneurs to learn about and engage with thefundamental aspects of business start-up businessincubators in contrast focus on taking up businessesthat have experienced these lsquobasicsrsquo and are ready tomove to the next level of development There istherefore a need to embrace best practice from businessincubation as part of experiential-focused enterpriseeducation It is clear that there is selection of literaturefrom business competitions and incubators illustrating

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015408

best practice in enabling graduate start-up This presentstudy will seek to identify the impact and best practiceinherent in the Beta project

ApproachmethodologyThe study used a case study approach and evaluated allaspects of the Beta project the actors involved and itsprocesses and practices Eisenhardt (1989) Yin (2003)and Eisenhardt and Graebner (2007) support the use of asingle case study methodology regarding it as acomprehensive rigorous and coherent approach whichcan add significantly to a body of knowledge The casestudy method enabled lsquohowrsquo and lsquowhyrsquo questions to beasked in order to understand the nature and complexityof the processes being undertaken (Benbasat et al 1987)due to its tradition of capturing rich contextual data(Levy and Powell 1999) and enabling in-depthexamination of the subject (Jones et al 2014)

A two-stage data collection process method wasused first an electronic survey of the participatingstudents was carried out to measure the effect of andattitudes towards the Beta project and secondsemi-structured interviews with academics the projectteam Entrepreneurs in Residence (EiRs) and students

were used to gain a more detailed appreciation of itsimpact A qualitative data collection process was usedkey actors interviewed included the Centre Director theProject Manager Academics (3) EiRs (3) andapplicants and participants (15) The EiRs are externalbusiness people employed on a part-time basis (one dayper week) by the Centre and act as mentors for Betaapplicants All of these participants were selectedbecause of their involvement in the development andday-to-day operation of the project The Beta applicantswere volunteers who chose to undertake the programmeas an extra-curricular activity

A web survey was developed using SurveyMonkeycopy software to examine the impact of andattitudes towards the study (Collins 2003) For thequalitative process two interview guides were createdusing a common template one for university staffinvolved with the project and one for applicants Thisenabled valid cross-group comparisons to be made(Jones et al 2013) Both the web and semi-structuredinstruments were evaluated by external academicsindependent of the research team (Beecham et al 2005)Suggested changes ndash typically to improve thereadability of the research instruments ndash weresubsequently adopted

Figure 1 Business incubator services

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 409

Face-to-face personal interviews were preferred overother data collection methods because they enabled theinterviewers to probe and clarify answers (de Leeuw2005) The research instruments were designed to elicitresponses from all parties on the value experience andimpact of the Beta project The data were collated andanalysed by the research team and used to develop anunderstanding of the impact and effectiveness of theprogramme

A semi-structured research instrument wasdeveloped with a set of open-ended questions whichallowed the respondents to talk at length about thetopics (Johannessen et al 1999) These questions wereused as prompts for each interview ensuring novariation from the research focus (Poon and Swatman1999)

Applicants were contacted by e-mail and invited toparticipate in the study 15 of 18 programme applicantsagreed to do so Respondents completed the electronicsurvey and then undertook the semi-structuredinterview interviews were typically between40ndash60 minutes in duration (Maznevski and Chudoba2000) Staff and programme applicants wereinterviewed by a team of independent researchers notinvolved in the Beta programme to avoid the possibilityof respondent bias (Dillman 1978) On request Betaparticipant anonymity was protected by the use of acoding system and so managers of the Beta programmewere not able to link quotations to individualparticipants (Fox and Tracy 1986) The coding systemused coded individuals thus

bull Beta participants (BP AndashO)bull Academics (A1ndash3) andbull EiRs (1ndash3)

The research study also secured internal ethical approvalby submitting the research proposal which confirmedthat participation in the study was optional and that allrespondentsrsquo contributions were anonymized (Bell andBryman 2007) to the university research committeeTo improve the validity of the research each respondentwas provided with a transcript of their interview andasked to confirm and approve its content (MacLellan2001) The contents of all the interviews were thencompared and contrasted to identify key themesassociated with the study This involved a process of

data reduction display and conclusion drawing andverification (Miles and Huberman 1994)

Description of the Beta projectThe project involves a two-stage process During thefirst stage the Centre promotes the Beta project throughpresentations to student groups and invites applicants toattend an informal interview regarding the possibility ofentering the scheme Applications are welcomed fromgroups and individuals it is recognized that a viablebusiness entity could require a collective or team effortto increase the levels of knowledge and expertiseinvolved During the initial interview earlyconversations focus on the personal attributes of theapplicant(s) their interests and potential business ideasIf participants remain interested following the interviewthey can progress to the second stage at which the Betaprogramme takes students through the process ofdeveloping a concept and turning it into a viablebusiness venture Applicants complete an applicationform outlining their business idea and a timescale forimplementation

Beta allows students to develop their entrepreneurialskills in a supportive environment with one-to-onementoring and the opportunity to receive anon-repayable grant of up to pound1500 to kick-start theirbusiness idea The programme also offers severaltraining sessions with experts for example they have asession with an intellectual property expert a marketingexpert and a financial advisor to help refine their idea

Beta currently runs once a year and had 20 studentson the programme for the 2013ndash2014 academic year Akey strength of the programme is the supportiveno-strings environment it provides for students in whichto experiment and take lsquosafe risksrsquo Business ideas areexpected to be innovative and able to meet a marketneed In the Beta programme mistakes are not seen as asetback but rather as part of a process for teachingstudents how to learn and recover from failure andsetbacks

Process detail

Figure 2 illustrates the operational processes involved inthe Beta programme The students join the programmewith an initial idea this is then developed by the student

Figure 2 The Beta programme process

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015410

with advice from a mentor each student in the schemebeing allocated a mentor (typically an Entrepreneur inResidence) When ready the student is asked to pitchthe business idea to an Advisory Panel (made up ofinternal and external members of the EntrepreneurshipCentre) whose purpose is to evaluate the validity of theidea If the idea is considered viable the idea isapproved and the student is given access to the pound1500funding If the idea is not approved recommendationsare made for improvement and the student is asked toreconsider the idea The idea can be rejected outright atthis stage and the student asked to improve it orconsider an alternative

If funding is granted the student must use the moneyto create a valid business entity which is then launchedStudents then have an opportunity to bid for a secondequity investment (up to pound50000) to facilitate furtherdevelopment and growth of their business The processfor this second tranche of funding involves an interviewwith a potential business angel or provision of access tocrowdfunding

Beta pedagogyThe programme uses a cycle of ongoing reflectivelearning derived from the models of experientiallearning developed by Schoumln (1987) and Kolb (1984)The core of the learning strategy consists ofencouraging the development of the business idea basedon development of development creativity andcognition (Corbett 2005) The Beta programmeencourages innovation by requiring participants todevelop a viable idea which has the potential to becomea growing entity Non-growth lsquolifestylersquo typeapplications are not supported In addition enterprisesmust be seen to meet a business need rather thanproviding additional supply (for example a standardservice-sector business would be discouraged unlesssignificant justification is provided) Theseconsiderations will be identified on the applicantrsquosinitial application

Part of this process is the requirement for receivingcontinuous feedback from EiRsacademic staff in anon-classroom environment regarding the developmentof the idea The learning space in this instance was anEntrepreneurial Centre with a flexible learningenvironment Participants were also encouraged to sharetheir idea and invite feedback from their peer group thefeedback promotes self-reflection and encourages theacquisition of new information to enhance the businessidea The flexible learning space enabled bothone-to-one and one-to-many tutor sessions with a focuson the facilitation of learning and knowledge exchangeParticipants would meet regularly with their mentor and

develop elements of the business idea After eachmentoring session the participants were asked toconsider and reflect on the session and its implicationsfor their idea The entire project was underpinned by thecore principle of developing a personalized creativepractical and collaborative ethos

FindingsThe key themes investigated were key driversmotivations programme benefits challengesknowledge and skill development attitudinal impact andbusiness support requirements

Key drivers

The Academic Director of the Entrepreneurship Centrewas asked to explain the purpose of the Betaprogramme The Director responded thus

lsquoThe purpose of Centre is to stimulatesocio-economic growth It is a hybrid structure ofacademia and business We aim for a seamlessstrategy towards socio-economic growth The Betaprogramme is a key enabler to closing the gapbetween academia and businessrsquo

Thus the key purpose of the Beta programme was tobridge the gap between academia and business andprovide an enabling system to allow students toundertake a business start-up within the universityinfrastructure

Motivations

Respondents were asked to identify their motivationsfor undertaking the Beta programme In descendingorder these were

bull To increase their chance of starting a business(67)

bull Gaining financial support (60)bull To have individual mentoring (60)bull To increase business knowledge (53) andbull To increase entrepreneurial skills (53)

It was thus apparent that the cohort was motivated toundertake the programme by the opportunities offered toboost their entrepreneurial competencies with the addedbenefit of acquiring seed-corn funding Individualmentoring support was also identified as an importantdriver in undertaking the programme

Benefits

The participants were asked what they had foundbeneficial in the programme In particular responseswere noted about the central role of the EiR and

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 411

provision of specific advice in intellectual property andbusiness insurance Representative comments were

lsquoReceiving the funding to help support our businessrsquo(Beta Participant A)

lsquoThe personalized help and support given but alsothe friendliness of the staff as encouragement toproceed forwardsrsquo (BP C) and

lsquo I feel that I have developed a lot of confidence inmy business idea as I came to the programme veryhesitant and shy to talk about my idearsquo (BP H)

The provision of funding was identified as of criticalimportance as were the individual support and adviceprovided by EIRs to build confidence and develop aviable business idea All the respondents recognized theimportance of the individual mentoring support they hadbeen offered which had built their confidence andself-belief EiRs commented

lsquoActing as a mentor to the students is extremelyrewarding I feel I benefit from their enthusiasm andthey benefit from my experiencersquo (EiR 1) and

lsquoI fill in the gaps a little there are things which theydo not consider and my knowledge helps them toproduce a more rounded business planrsquo (EiR 2)

Challenges

The respondents were asked to identify the challengingelements of the Beta programme Respondentsmentioned in particular their initial nervousness aboutgoing through the process of pitching their idea to apanel of Beta staff and the need to balance theextra-curricular Beta programme with their course ofstudy Typical comments were as follows

lsquoI think the most challenging part of the programmehas been overcoming my lack of confidence inmyself and my idea as it is pretty daunting startingup your own business Itrsquos never really beensomething I have seen myself doing But of courseIrsquom not as scared as I was I feel a lot more confidentdue to working with the EiR as he encouraged me tosee my idea from a different point of view instead ofme being critical he allowed me to see the fun sideto it again which was greatrsquo (BP N)

lsquoThe pitch very nerve-rackingrsquo (BP I)

lsquoWorking it around university and othercommitmentsrsquo (BP E)

The problem of nervousness is perhaps understandableThe participantrsquos emotional state was apparent inseveral comments and it was noticeable that Beta hadinitiated both positive and negative emotions This wasrecognized by the academic team who commented

lsquoWe recognized early on that we had to strike thebalance in challenging the participants to defend theiridea whilst providing a supportive and friendlyenvironmentrsquo (Academic B)

The Beta team did provide a supportive but professionalenvironment to enable the participants to reflect andevaluate their idea effectively The academic team andEiRs were known on a first-name basis by Betaparticipants although the relationship remainedrespectful and supportive throughout For their partstudents were prepared to undertake a business start-upactivity as an extra-curricular activity because theyappreciated the benefits the process would provide

Participants were also asked if any part of the Betaprogramme had resulted in a negative impact on settingup a business Fourteen said that this was not the casethere was one response otherwise

lsquoWhen I found out my first business idea was notlogistical [sic] and financially viable I lost allmotivation but with a new idea I liked I was back ontrackrsquo (BP N)

This statement identifies both the positive and negativepotential impacts of the Beta programme Theindividual concerned found that their idea was notfeasible this is an essential purpose of the programmein that it provides a safe environment in which toevaluate an idea In this case the student involved wasable to develop a fresh idea

Knowledge and skill development

The participants were asked to consider how theprogramme had affected the development of theirknowledge and skills using a five-point Likert-stylescale Table 1 presents the full data and the followingsummarizes the key findings

The students considered that the programme hadhelped them significantly in identifying opportunitieswith 13 (87) either agreeing or strongly agreeing withthe notion It is useful here to recall that as part of theBeta programme students were expected to undertake afeasibility analysis of a business idea and to progresswith valid ideas only

Some two-thirds of the students lsquostrongly agreedrsquo orlsquoagreedrsquo that the Beta programme had developed theircapacity to adopt innovative approaches and enhanced

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015412

their problem-solving capabilities The EiRs andacademic staff encouraged Beta participants to seekunique and innovative solutions that would createeconomically sustainable business start-ups

Participants were asked whether the programme hadhelped to build their resilience and ability to overcomechallenges again the results were positive with 12(80) recording lsquostrongly agreersquo or lsquoagreedrsquo

The next aspect considered was whether theprogramme had helped to develop their ability to limitand manage risk The results were positive with 10(67) in agreement and two (13) strongly agreeing

Respondents were asked to identify whether thecourse had helped them to evaluate issues and makedecisions The responses were positive with 10 (67)in agreement and two (13) strongly agreeing Withregard to the encouragement students had received todevelop networks with peers and external contacts usingthe Entrepreneurial Society and social media it wasapparent that the students had done so with 14 of the 15(93) answering positively

Reflection is a strong element of the Betaprogramme participants are required in particular toconsider the viability of their ideas 12 (80) agreedthat there was sufficient time to reflect generally on theirenterprising skills

Responses were less favourable when studentswere asked whether the programme had providedopportunities for collaborative working The majority ofideas in the first cohort were individual and so only four(26) agreed or strongly agreed with this and six (40)disagreed or strongly disagreed

When they were asked if the programme had helpedthem to develop their business idea 100 answeredfavourably a strong endorsement for the value of theprogramme

Participants were asked to indicate whether theprogramme had enhanced their understanding of thefinancial and legal implications of their businessproposal The responses were highly supportive with 13(86) agreeing or strongly agreeing

Equally 13 (86) thought that the programme hadhelped them to identify their target markets 14 (93)that it helped them to articulate their business ideas and14 (93) that it helped build their confidence Finally14 (93) agreed with the notion that the programmehad enabled them to understand what it took to start abusiness Overall 93 of students answeredfavourably with only one (7) negative responsesuggesting that the Beta programme was fit for purposeand enabled the participants to develop viable businessideas

Table 1 Skills and competencies developed

Question Stronglydisagree

Disagree Neitheragree nordisagree

Agree Stronglyagree

Developed your ability in identifying opportunities 0 0 2 (13) 6 (40) 7 (47)

Developed your capacity to take innovativeapproaches

0 1 (7) 4 (27) 2 (13) 8 (53)

Built your resilience and ability to overcomechallenges

0 0 3 (20) 5 (33) 7 (47)

Developed your ability to limit and manage risk 0 0 3 (20) 10 (67) 2 (13)

Helped you to evaluate issues and make decisions 0 1 (7) 3 (20) 10 (67) 2 (13)

Helped build your networks 0 1 (7) 0 8 (53) 6 (40)

Allowed you time to reflect on your enterprising skills 0 2 (13) 1 (7) 5 (33) 7 (47)

Developed opportunities for collaborative working 3 (20) 3 (20) 5 (33) 2 (13) 2 (13)

Helped you to develop your business idea 0 0 0 3 (20) 12 (80)

Helped you to recognize financial and legal implicationson a business proposal

0 0 2 (13) 5 (33) 8 (53)

Identify target markets 0 1 (7) 4 (27) 5 (33) 5 (33)

Helped you articulate your business ideas 0 0 1 (7) 6 (40) 8 (53)

Built your confidence to start a business 0 0 1 (7) 4 (27) 10 (67)

Understand what it takes to start your own business 0 0 1 (7) 8 (53) 6 (40)

Note sample size N=15 percentages have been rounded to integers

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 413

Self-employability intentions

The respondents were asked to identify whether theyrequired any further support for developing theirbusiness Overall 13 (87) said that they did notrequire any further support but two respondents felt theneed for further help

lsquoFurther financial and legal advice I need moreknowledge on how to set up partnerships legalaspectsrsquo (BP B)

lsquoThere will always be need for continuous supportrsquo(BP C)

Career intentions

Perhaps the most important question in a study such asthis is deals with the attitudes to an entrepreneurialcareer the results for this programme are presented inTable 2 As can be seen these responses based on afive-point Likert-style scale are generally favourablewith 14 of the 15 (93) indicating that they were likelyor very likely to continue with their business post-graduation and 13 (87) suggesting it was very likelythat they would look to set up a business at some stagein the future Equally only four (27) suggested thatthey would be likely to work for a large organizationand none of the cohort wanted to undertakepostgraduate study because they were more interested inthe prospect of an entrepreneurial career These resultssuggest that the programme achieved its stated aim ofpreparing students for an entrepreneurial career

DiscussionThis study responds to the calls for further research ingraduate entrepreneurship from Nabi et al (2006) and

Holden et al (2007) The increase in the number ofentrepreneurship education programmes has been drivenby policy makers and economic necessity howeverthere is a real need to confirm and exchange bestpractice to facilitate business start-ups This is the focusof this study and we believe its key contribution to thetopic

Overall the Beta programme can be judged assuccessful in enabling students to evaluate test andgrow their nascent ideas into viable business start-ups(Albert and Gaynor 2006) All the responses collectedregarding the various measures suggest that Beta had apositive impact on attitudes and skills Programmeparticipants were motivated to join Beta because of theattraction of starting a business obtaining start-upcapital accessing mentors and improving theirentrepreneurial competencies

In essence the Beta project is an amalgam of theconcepts regarding pre-incubators and businesscompetitions discussed in the literature consideredabove and elsewhere (Voisey et al 2013) The keyelements identified in Jones and Jones (2011) theprovision of dedicated staff (Stephens and Onofrei2012) and launch capital business mentors andspecialist advice (Allen and McCluskey 1990) are allcentral to the Beta programme

The provision of seed-corn funding to graduateentrepreneurs is critical in providing a real worldcontext and motivation for participation (Huffman andQuigley 2002 Kirby 2006) All Beta participantswelcomed this aspect and cited it as a contributoryfactor regarding their participation Lack of finance haspreviously been cited as a key barrier to entrepreneurialactivity (Fielden et al 2000) and Beta overcomes thisobstacle albeit with a limited level of initial capitalinvestment

Table 2 Future career intentions

Responses Very unlikely Unlikely Undecided Likely Very likely

How likely are you to continue with your business aftergraduation

0 0 1 (7) 6 (40) 8 (53)

How likely are you to set up another business aftergraduation

0 1 (7) 7 (47) 0 7 (47)

How likely are you to set up a business at some stagein the future

0 0 0 2 (13) 13 (87)

How likely are you to work for a small to medium-sizedenterprise after graduation

0 3 (20) 6 (40) 3 (20) 3 (20)

How likely are you to work for a large organization 3 (20) 3 (20) 5 (33) 4 (27) 0

How likely are you to take on a postgraduateprogramme after graduation

6 (40) 4 (27) 5 (33) 0 0

Note sample size N=15 percentages have been rounded to integers

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015414

The Beta programme recognizes the need to buildself-confidence and enterprise skills whilst allowing theparticipants to test and validate their business ideas Itwas apparent that the project allowed students toexperience both positive and negative emotionsNegative emotions (such as uncertaintydisappointment) arose when a business idea was judgednot to be viable following evaluation and reflection bythe participants and mentors (Cope 2003) On occasionparticipants experienced fear and trepidation at theprospect of having to present their idea to a panelalthough following the pitch all participants appreciatedthe experience and recognized its value in enhancing theidea and their own personal development Thesenegative experiences and emotions were just asimportant as the positive experiences because theyallowed the participants the opportunity to reflect andreconsider their actions (Shepherd 2003)

Beta also gave participants a chance to developsocial and formal networks with their peers andmentors The provision of experienced EiRs as businessmentors was recognized as a central tenet in theprogrammersquos success (as noted elsewhere see forexample Greene and Saridakis 2007 Matlay 2008Pickernell et al 2011) The EiRs offered regularprofessional advice and guidance that was used to shapethe studentsrsquo ideas from an early stage EiRs were aconstant presence for the participants throughout theproject and developed a strong and friendly relationshipbased on trust and understanding with each student

On completion of the programme the objective forparticipants is to create a legal fit-for-purpose entitywhich is ready to trade This is a realistic and justifiableproposition In terms of future development the Betaprogramme offers the potential of an intra-universityprocess of business start-up across and includingdifferent disciplines An expansion in its provisionthroughout the university would be a logical next step inits development In terms of future improvements theBeta team would like to create greater engagement withexternal business and crowdfunding networks Therewill be a need to expand the pool of mentors withrelevant expertise in the various disciplines to ensurethat growth across the university is successfullyachieved

ConclusionsThe initial pilot of the Beta project has provedsuccessful with positive feedback from the participantsAs noted above the Centre recognizes the need toembed the programme throughout the university Inaddition there is also a need to integrate the secondlevel of seed-corn funding into the scheme and to ensure

that the supporting entrepreneurs understand therequirements of the both the Centre and its applicants

In terms of best practice the authors recommend thefollowing main considerations

(1) A flexible learning environment should be providedwithin which experiential leaning creativity andinnovation can be effectively supported

(2) A standard classroom delivery should be avoidedbecause it will not produce the desired outcome

(3) Experienced mentors ideally in the form of EiRsshould be provided the mentors must be individualswho can support students effectively in thedevelopment of a viable business idea

(4) Initial seed-corn funding is critical in providing alsquoreal worldrsquo context for participants

(5) Participants must be encouraged to reflect evaluateand potentially rebuild their business idea at allstages of the process

In terms of implications for practice programmes suchas Beta offer a blueprint for entrepreneurship educationin HEIs University decision makers must understandthe importance of encouraging entrepreneurial activityin undergraduate programmes and providecross-university programmes such as Beta that enablein particular access to internal and external seed-cornfunding

The authors recognize that this research is limited toone university case study and the responses are drawnfrom a small cohort of students Generalizing the resultsmust therefore be treated with caution There is a needfor ongoing longitudinal research contrasting bestpractice from a range of universities In addition theissue of positive and negative emotions created bystart-up programmes also requires further examination

ReferencesAcs Z and Szerb S (2007) lsquoEntrepreneurship economic

growth and public policyrsquo Small Business Economics Vol 28No 2ndash3 pp 109ndash122

Albert P and Gaynor L (2006) lsquoTechnology businessincubation management lessons of experiencersquo inBernasconi M Harris S and Moensted M edsHigh-Tech Entrepreneurship Managing Innovation Varietyand Uncertainty Routledge London pp 131ndash143

Allen DN and McCluskey R (1990) lsquoStructure policyservices and performance in the business incubatorindustryrsquo Entrepreneurship Theory and Practice Vol 15 No2 pp 61ndash77

Andrews J and Higson H (2008) lsquoGraduate employabilitylsquolsquosoft skillsrsquorsquo versus lsquolsquohardrsquorsquo business knowledge a Europeanstudyrsquo Higher Education in Europe Vol 33 No 4pp 411ndash422

Atchison M and Gotlieb P (2004) lsquoInnovation and the futureof cooperative educationrsquo in Coll R and Eames C edsInternational Handbook for Cooperative Education AnInternational Perspective of the Theory Research and

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 415

option For example the CIHEndashNCGEndashNESTA (2008)report noted that because graduates will often attempt tostart an entrepreneurial venture around the age of 30universities should assist their alumni by providingsupport services such as marketing research Bennettand Robson (1999) noted that the use by smallbusinesses of external advice is often dependent on thesize of the business with micro-enterprises usingadvisory services least frequently Greve and Salaff(2003) recognized that social relations and networksplay a significant role in establishing an enterpriseRobson and Bennett (2000) suggested that family orfriends act as a regular source of advice for manymicro- and small business ownerndashmanagers inparticular where sensitive issues are involved Greeneand Saridakis (2007) Matlay (2008) and Pickernell etal 2011) confirmed this and suggested that the mostlikely sources of advice and guidance for graduateentrepreneurs are informal involving family workcolleagues and social networks as well as universities

However Hegarty and Jones (2008) suggested thatthere is still considerable work to be done to developsocial networks for graduate entrepreneurs They alsonoted that social networks for graduate entrepreneursare dependent on industry experience and the effectiveacquisition of capital The literature however claimsthat graduates have been poorly prepared for futurebusiness activity (McLarty 2003 Pittaway and Cope2007 Wilton 2008) Furthermore if graduates havedeveloped awareness of entrepreneurship they often donot have a support network for their enterprise Thismay be a considerable problem for young graduateentrepreneurs with minimal prior work experience withthe consequence that even if they have anentrepreneurial intention a lack of access to networkswill restrict business start-up options (Birley 1985)Chrisman and McMullan (2004) concluded that it ispossible to create awareness by substituting networksfor brokers

According to Robson and Bennett (2000) and CIHEndashNCGEndashNESTA (2008) there are several sources ofbusiness advice and resources both inside and outsideuniversities for graduate entrepreneurs These includecourses offered by universities and formal businesssupport agencies business associations banks solicitorsaccountants and external business professionals In theliterature access to and lack of finance is also cited as aparticular barrier to entrepreneurship (Fielden et al2000) Research by GEM UK on a sample of some32500 working age adults in the UK revealed thatobtaining finance was the largest barrier to graduatesstarting a business (GEM 2007) Fielden et al (2000)suggested that where entrepreneurs are unable to obtainfinance they often have to resort to personal loans and

where possible re-mortgaging their own homes Greeneand Saridakis (2007) however claimed that there doesnot appear to be a finance gap for graduate entrepreneursbecause such individuals may find it easier both to accessand raise finance than non-graduates due to graduateshaving enhanced skills and knowledge (Fraser 2005)There is a need for a greater understanding of the effectsof access to finance on graduate entrepreneurship Thereare many HE courses on how to start and finance a newbusiness (Shane 2003) and it has been found that forentrepreneurial knowledge prior to entrepreneurialeducation knowledge of finance was generally poor butthat awareness of finance improved considerablyfollowing entrepreneurial education (Matlay 2008) Wemust therefore consider what processes within thediscipline of entrepreneurship education enable businessstart-ups to occur

Entrepreneurship education processes toenable start-upAs already noted entrepreneurship educationprogrammes have proliferated in the last decade both inthe UK and globally Best practices have emerged askey mechanisms to support business start-ups Forexample Huffman and Quigley (2002) Russell et al(2008) and Jones and Jones (2011) noted that businessplan competitions provide a mechanism for newbusiness start-up and for encouraging entrepreneurialideas talents and potential Der Foo et al (2005) notedthe role of these competitions in the development ofteam-building skills and using new technologiesFurthermore Huffman and Quigley (2002) suggestedthat such competitions potentially link entrepreneurswith sources of funding Activities such as businessskills development team-building mentoring judgesrsquofeedback and networking are key elements of aneffective business planning competition (Russell et al2008) Atchison and Gotlieb (2004) noted that businessplan competitions offer the opportunity to acquire andenhance generic skills and practical knowledgeconcurrently The development of both is essential fordeveloping quality graduates with self-employabilitycompetencies valued by both the private and publicsector (Bowden and Marton 1999) Russell et al (2008)suggested entrepreneurial skills development increasedself confidence and risk-taking propensity access tomentors and networking opportunities as fundamentalcomponents offered by effective business planningcompetitions Equally Mason and Arshed noted that theacquisition of real world experience was important toboth SMEs and employers (Mason and Arshed 2013)

We can conclude that the provision of businesscompetitions can be considered beneficial to graduate

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 407

business start-up Jones and Jones (2011) summarizedbest practice as ensuring such competitions arecompulsory and embedded in and across the curriculumThe competition is thus made relevant and students willunderstand its importance and commit to it In additiondedicated university staff should support and managethe competition to help create institutional focusstakeholders and internal commitment There should beprovision of launch capital to incentivise and providerealism and appropriate business mentor support shouldbe provided with both internal and external advisorsUniversity systems should provide legal protection andappropriate advice regarding health and safetyimplications trading practices insurance intellectualproperty etc Finally with regard to business planningcompetitions best student practice should be recognizedby the award of prizes to reward innovation andcreativity It is therefore important that systemic bestpractice is imbedded into systems to facilitate graduatestart-up

Pre-incubator systemsPre-incubators are a facility for supporting nascententrepreneurs offering an environment in which todevelop and test a nascent business idea (Albert andGaynor 2006) The literature in this area suggests thebarriers to start-up are typically lack of capital limitedrelevant knowledge and skills including personal skillsinsufficient market research inferior management skillsincluding financial management and ignorance of theworth of intellectual property (USINE 2002) Thelsquopre-phase facilityrsquo or pre-incubation stage offers ameans of overcoming these obstacles Voisey et al(2013) noted that pre-incubation is the starting point ofa longer process of development consisting of threestages for a new business

(1) Pre-incubator stage ndash ideas and teams are nurtured(2) Incubator stage ndash once there a business plan is

prepared and(3) Post-incubator stage ndash when enterprises move out to

lsquogrow-on spacersquo (Broadfoot and Sheen 2002)

USINE (2002) confirmed the importance ofpre-incubators in serving as a mechanism for filteringout non-viable businesses The presence ofpre-incubation services linked to universities can alsoencourage an entrepreneurial awareness and stimulateentrepreneurial activity (Dickson 2004) Pre-incubatorsfocus on the entrepreneur with ideasinnovations ratherthan assisting businesses that are already established(USINE 2002) Pre-incubation facilities have been

initiated by many HEIs with as much diversity aslsquostandardrsquo incubators (Voisey et al 2013) Thepre-incubation process provides the nascententrepreneur with the support necessary for thedevelopment of the business idea and plan building upthe required resources for the creation of a viablebusiness and then testing the market

Typical pre-incubator services are summarized inFigure 1 as can be seen the incubator services provideminimal-cost services to support the business start-upprocess For HEIs such provision can be seen as anearly stage incubator to enable potentialownerndashmanagers to test and evaluate the viability of abusiness idea Such provision has become popular withwidespread deployment across HEIs (Jones et al 2013)Nascent entrepreneurs are admitted into pre-incubatorswith three potential aims First there is the acquisitionof the skills required to operate a business ventureeffectively and to perform a market test of their productor services before progressing either to independence orfurther incubation Second there is market testingwhich involves purchasing production and salesproviding an opportunity for the entrepreneur to test andenhance necessary business skills (USINE 2002Voisey et al 2006) Third there are benefits to begained from in-house advisory services ndash although otheragencies may be called on to provide advice or training(Voisey et al 2006)

On completion of the pre-incubation process theincubatees should be able to start a business given asuccessful outcome from market testing based on arobust and valid business plan and to monetize the ideaand if appropriate potentially seek an alliance with aventure capitalist (Halt et al 2014) Incubator facilitiesof all types are typically measured with regard toobjective outputs ndash for instance the number ofsuccessful enterprises lsquograduatingrsquo from the incubatorand the levels of income generated over a given periodare clear and necessary metrics Softer more subjectiveoutcomes manifest themselves through the positiveeffect the experience may have on the learning anddevelopment of entrepreneurs providing a basis forimproved employment opportunities and a possiblefuture return to enterprise (Voisey et al 2006)

Pre-incubators thus focus on enabling would-beentrepreneurs to learn about and engage with thefundamental aspects of business start-up businessincubators in contrast focus on taking up businessesthat have experienced these lsquobasicsrsquo and are ready tomove to the next level of development There istherefore a need to embrace best practice from businessincubation as part of experiential-focused enterpriseeducation It is clear that there is selection of literaturefrom business competitions and incubators illustrating

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015408

best practice in enabling graduate start-up This presentstudy will seek to identify the impact and best practiceinherent in the Beta project

ApproachmethodologyThe study used a case study approach and evaluated allaspects of the Beta project the actors involved and itsprocesses and practices Eisenhardt (1989) Yin (2003)and Eisenhardt and Graebner (2007) support the use of asingle case study methodology regarding it as acomprehensive rigorous and coherent approach whichcan add significantly to a body of knowledge The casestudy method enabled lsquohowrsquo and lsquowhyrsquo questions to beasked in order to understand the nature and complexityof the processes being undertaken (Benbasat et al 1987)due to its tradition of capturing rich contextual data(Levy and Powell 1999) and enabling in-depthexamination of the subject (Jones et al 2014)

A two-stage data collection process method wasused first an electronic survey of the participatingstudents was carried out to measure the effect of andattitudes towards the Beta project and secondsemi-structured interviews with academics the projectteam Entrepreneurs in Residence (EiRs) and students

were used to gain a more detailed appreciation of itsimpact A qualitative data collection process was usedkey actors interviewed included the Centre Director theProject Manager Academics (3) EiRs (3) andapplicants and participants (15) The EiRs are externalbusiness people employed on a part-time basis (one dayper week) by the Centre and act as mentors for Betaapplicants All of these participants were selectedbecause of their involvement in the development andday-to-day operation of the project The Beta applicantswere volunteers who chose to undertake the programmeas an extra-curricular activity

A web survey was developed using SurveyMonkeycopy software to examine the impact of andattitudes towards the study (Collins 2003) For thequalitative process two interview guides were createdusing a common template one for university staffinvolved with the project and one for applicants Thisenabled valid cross-group comparisons to be made(Jones et al 2013) Both the web and semi-structuredinstruments were evaluated by external academicsindependent of the research team (Beecham et al 2005)Suggested changes ndash typically to improve thereadability of the research instruments ndash weresubsequently adopted

Figure 1 Business incubator services

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 409

Face-to-face personal interviews were preferred overother data collection methods because they enabled theinterviewers to probe and clarify answers (de Leeuw2005) The research instruments were designed to elicitresponses from all parties on the value experience andimpact of the Beta project The data were collated andanalysed by the research team and used to develop anunderstanding of the impact and effectiveness of theprogramme

A semi-structured research instrument wasdeveloped with a set of open-ended questions whichallowed the respondents to talk at length about thetopics (Johannessen et al 1999) These questions wereused as prompts for each interview ensuring novariation from the research focus (Poon and Swatman1999)

Applicants were contacted by e-mail and invited toparticipate in the study 15 of 18 programme applicantsagreed to do so Respondents completed the electronicsurvey and then undertook the semi-structuredinterview interviews were typically between40ndash60 minutes in duration (Maznevski and Chudoba2000) Staff and programme applicants wereinterviewed by a team of independent researchers notinvolved in the Beta programme to avoid the possibilityof respondent bias (Dillman 1978) On request Betaparticipant anonymity was protected by the use of acoding system and so managers of the Beta programmewere not able to link quotations to individualparticipants (Fox and Tracy 1986) The coding systemused coded individuals thus

bull Beta participants (BP AndashO)bull Academics (A1ndash3) andbull EiRs (1ndash3)

The research study also secured internal ethical approvalby submitting the research proposal which confirmedthat participation in the study was optional and that allrespondentsrsquo contributions were anonymized (Bell andBryman 2007) to the university research committeeTo improve the validity of the research each respondentwas provided with a transcript of their interview andasked to confirm and approve its content (MacLellan2001) The contents of all the interviews were thencompared and contrasted to identify key themesassociated with the study This involved a process of

data reduction display and conclusion drawing andverification (Miles and Huberman 1994)

Description of the Beta projectThe project involves a two-stage process During thefirst stage the Centre promotes the Beta project throughpresentations to student groups and invites applicants toattend an informal interview regarding the possibility ofentering the scheme Applications are welcomed fromgroups and individuals it is recognized that a viablebusiness entity could require a collective or team effortto increase the levels of knowledge and expertiseinvolved During the initial interview earlyconversations focus on the personal attributes of theapplicant(s) their interests and potential business ideasIf participants remain interested following the interviewthey can progress to the second stage at which the Betaprogramme takes students through the process ofdeveloping a concept and turning it into a viablebusiness venture Applicants complete an applicationform outlining their business idea and a timescale forimplementation

Beta allows students to develop their entrepreneurialskills in a supportive environment with one-to-onementoring and the opportunity to receive anon-repayable grant of up to pound1500 to kick-start theirbusiness idea The programme also offers severaltraining sessions with experts for example they have asession with an intellectual property expert a marketingexpert and a financial advisor to help refine their idea

Beta currently runs once a year and had 20 studentson the programme for the 2013ndash2014 academic year Akey strength of the programme is the supportiveno-strings environment it provides for students in whichto experiment and take lsquosafe risksrsquo Business ideas areexpected to be innovative and able to meet a marketneed In the Beta programme mistakes are not seen as asetback but rather as part of a process for teachingstudents how to learn and recover from failure andsetbacks

Process detail

Figure 2 illustrates the operational processes involved inthe Beta programme The students join the programmewith an initial idea this is then developed by the student

Figure 2 The Beta programme process

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015410

with advice from a mentor each student in the schemebeing allocated a mentor (typically an Entrepreneur inResidence) When ready the student is asked to pitchthe business idea to an Advisory Panel (made up ofinternal and external members of the EntrepreneurshipCentre) whose purpose is to evaluate the validity of theidea If the idea is considered viable the idea isapproved and the student is given access to the pound1500funding If the idea is not approved recommendationsare made for improvement and the student is asked toreconsider the idea The idea can be rejected outright atthis stage and the student asked to improve it orconsider an alternative

If funding is granted the student must use the moneyto create a valid business entity which is then launchedStudents then have an opportunity to bid for a secondequity investment (up to pound50000) to facilitate furtherdevelopment and growth of their business The processfor this second tranche of funding involves an interviewwith a potential business angel or provision of access tocrowdfunding

Beta pedagogyThe programme uses a cycle of ongoing reflectivelearning derived from the models of experientiallearning developed by Schoumln (1987) and Kolb (1984)The core of the learning strategy consists ofencouraging the development of the business idea basedon development of development creativity andcognition (Corbett 2005) The Beta programmeencourages innovation by requiring participants todevelop a viable idea which has the potential to becomea growing entity Non-growth lsquolifestylersquo typeapplications are not supported In addition enterprisesmust be seen to meet a business need rather thanproviding additional supply (for example a standardservice-sector business would be discouraged unlesssignificant justification is provided) Theseconsiderations will be identified on the applicantrsquosinitial application

Part of this process is the requirement for receivingcontinuous feedback from EiRsacademic staff in anon-classroom environment regarding the developmentof the idea The learning space in this instance was anEntrepreneurial Centre with a flexible learningenvironment Participants were also encouraged to sharetheir idea and invite feedback from their peer group thefeedback promotes self-reflection and encourages theacquisition of new information to enhance the businessidea The flexible learning space enabled bothone-to-one and one-to-many tutor sessions with a focuson the facilitation of learning and knowledge exchangeParticipants would meet regularly with their mentor and

develop elements of the business idea After eachmentoring session the participants were asked toconsider and reflect on the session and its implicationsfor their idea The entire project was underpinned by thecore principle of developing a personalized creativepractical and collaborative ethos

FindingsThe key themes investigated were key driversmotivations programme benefits challengesknowledge and skill development attitudinal impact andbusiness support requirements

Key drivers

The Academic Director of the Entrepreneurship Centrewas asked to explain the purpose of the Betaprogramme The Director responded thus

lsquoThe purpose of Centre is to stimulatesocio-economic growth It is a hybrid structure ofacademia and business We aim for a seamlessstrategy towards socio-economic growth The Betaprogramme is a key enabler to closing the gapbetween academia and businessrsquo

Thus the key purpose of the Beta programme was tobridge the gap between academia and business andprovide an enabling system to allow students toundertake a business start-up within the universityinfrastructure

Motivations

Respondents were asked to identify their motivationsfor undertaking the Beta programme In descendingorder these were

bull To increase their chance of starting a business(67)

bull Gaining financial support (60)bull To have individual mentoring (60)bull To increase business knowledge (53) andbull To increase entrepreneurial skills (53)

It was thus apparent that the cohort was motivated toundertake the programme by the opportunities offered toboost their entrepreneurial competencies with the addedbenefit of acquiring seed-corn funding Individualmentoring support was also identified as an importantdriver in undertaking the programme

Benefits

The participants were asked what they had foundbeneficial in the programme In particular responseswere noted about the central role of the EiR and

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 411

provision of specific advice in intellectual property andbusiness insurance Representative comments were

lsquoReceiving the funding to help support our businessrsquo(Beta Participant A)

lsquoThe personalized help and support given but alsothe friendliness of the staff as encouragement toproceed forwardsrsquo (BP C) and

lsquo I feel that I have developed a lot of confidence inmy business idea as I came to the programme veryhesitant and shy to talk about my idearsquo (BP H)

The provision of funding was identified as of criticalimportance as were the individual support and adviceprovided by EIRs to build confidence and develop aviable business idea All the respondents recognized theimportance of the individual mentoring support they hadbeen offered which had built their confidence andself-belief EiRs commented

lsquoActing as a mentor to the students is extremelyrewarding I feel I benefit from their enthusiasm andthey benefit from my experiencersquo (EiR 1) and

lsquoI fill in the gaps a little there are things which theydo not consider and my knowledge helps them toproduce a more rounded business planrsquo (EiR 2)

Challenges

The respondents were asked to identify the challengingelements of the Beta programme Respondentsmentioned in particular their initial nervousness aboutgoing through the process of pitching their idea to apanel of Beta staff and the need to balance theextra-curricular Beta programme with their course ofstudy Typical comments were as follows

lsquoI think the most challenging part of the programmehas been overcoming my lack of confidence inmyself and my idea as it is pretty daunting startingup your own business Itrsquos never really beensomething I have seen myself doing But of courseIrsquom not as scared as I was I feel a lot more confidentdue to working with the EiR as he encouraged me tosee my idea from a different point of view instead ofme being critical he allowed me to see the fun sideto it again which was greatrsquo (BP N)

lsquoThe pitch very nerve-rackingrsquo (BP I)

lsquoWorking it around university and othercommitmentsrsquo (BP E)

The problem of nervousness is perhaps understandableThe participantrsquos emotional state was apparent inseveral comments and it was noticeable that Beta hadinitiated both positive and negative emotions This wasrecognized by the academic team who commented

lsquoWe recognized early on that we had to strike thebalance in challenging the participants to defend theiridea whilst providing a supportive and friendlyenvironmentrsquo (Academic B)

The Beta team did provide a supportive but professionalenvironment to enable the participants to reflect andevaluate their idea effectively The academic team andEiRs were known on a first-name basis by Betaparticipants although the relationship remainedrespectful and supportive throughout For their partstudents were prepared to undertake a business start-upactivity as an extra-curricular activity because theyappreciated the benefits the process would provide

Participants were also asked if any part of the Betaprogramme had resulted in a negative impact on settingup a business Fourteen said that this was not the casethere was one response otherwise

lsquoWhen I found out my first business idea was notlogistical [sic] and financially viable I lost allmotivation but with a new idea I liked I was back ontrackrsquo (BP N)

This statement identifies both the positive and negativepotential impacts of the Beta programme Theindividual concerned found that their idea was notfeasible this is an essential purpose of the programmein that it provides a safe environment in which toevaluate an idea In this case the student involved wasable to develop a fresh idea

Knowledge and skill development

The participants were asked to consider how theprogramme had affected the development of theirknowledge and skills using a five-point Likert-stylescale Table 1 presents the full data and the followingsummarizes the key findings

The students considered that the programme hadhelped them significantly in identifying opportunitieswith 13 (87) either agreeing or strongly agreeing withthe notion It is useful here to recall that as part of theBeta programme students were expected to undertake afeasibility analysis of a business idea and to progresswith valid ideas only

Some two-thirds of the students lsquostrongly agreedrsquo orlsquoagreedrsquo that the Beta programme had developed theircapacity to adopt innovative approaches and enhanced

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015412

their problem-solving capabilities The EiRs andacademic staff encouraged Beta participants to seekunique and innovative solutions that would createeconomically sustainable business start-ups

Participants were asked whether the programme hadhelped to build their resilience and ability to overcomechallenges again the results were positive with 12(80) recording lsquostrongly agreersquo or lsquoagreedrsquo

The next aspect considered was whether theprogramme had helped to develop their ability to limitand manage risk The results were positive with 10(67) in agreement and two (13) strongly agreeing

Respondents were asked to identify whether thecourse had helped them to evaluate issues and makedecisions The responses were positive with 10 (67)in agreement and two (13) strongly agreeing Withregard to the encouragement students had received todevelop networks with peers and external contacts usingthe Entrepreneurial Society and social media it wasapparent that the students had done so with 14 of the 15(93) answering positively

Reflection is a strong element of the Betaprogramme participants are required in particular toconsider the viability of their ideas 12 (80) agreedthat there was sufficient time to reflect generally on theirenterprising skills

Responses were less favourable when studentswere asked whether the programme had providedopportunities for collaborative working The majority ofideas in the first cohort were individual and so only four(26) agreed or strongly agreed with this and six (40)disagreed or strongly disagreed

When they were asked if the programme had helpedthem to develop their business idea 100 answeredfavourably a strong endorsement for the value of theprogramme

Participants were asked to indicate whether theprogramme had enhanced their understanding of thefinancial and legal implications of their businessproposal The responses were highly supportive with 13(86) agreeing or strongly agreeing

Equally 13 (86) thought that the programme hadhelped them to identify their target markets 14 (93)that it helped them to articulate their business ideas and14 (93) that it helped build their confidence Finally14 (93) agreed with the notion that the programmehad enabled them to understand what it took to start abusiness Overall 93 of students answeredfavourably with only one (7) negative responsesuggesting that the Beta programme was fit for purposeand enabled the participants to develop viable businessideas

Table 1 Skills and competencies developed

Question Stronglydisagree

Disagree Neitheragree nordisagree

Agree Stronglyagree

Developed your ability in identifying opportunities 0 0 2 (13) 6 (40) 7 (47)

Developed your capacity to take innovativeapproaches

0 1 (7) 4 (27) 2 (13) 8 (53)

Built your resilience and ability to overcomechallenges

0 0 3 (20) 5 (33) 7 (47)

Developed your ability to limit and manage risk 0 0 3 (20) 10 (67) 2 (13)

Helped you to evaluate issues and make decisions 0 1 (7) 3 (20) 10 (67) 2 (13)

Helped build your networks 0 1 (7) 0 8 (53) 6 (40)

Allowed you time to reflect on your enterprising skills 0 2 (13) 1 (7) 5 (33) 7 (47)

Developed opportunities for collaborative working 3 (20) 3 (20) 5 (33) 2 (13) 2 (13)

Helped you to develop your business idea 0 0 0 3 (20) 12 (80)

Helped you to recognize financial and legal implicationson a business proposal

0 0 2 (13) 5 (33) 8 (53)

Identify target markets 0 1 (7) 4 (27) 5 (33) 5 (33)

Helped you articulate your business ideas 0 0 1 (7) 6 (40) 8 (53)

Built your confidence to start a business 0 0 1 (7) 4 (27) 10 (67)

Understand what it takes to start your own business 0 0 1 (7) 8 (53) 6 (40)

Note sample size N=15 percentages have been rounded to integers

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 413

Self-employability intentions

The respondents were asked to identify whether theyrequired any further support for developing theirbusiness Overall 13 (87) said that they did notrequire any further support but two respondents felt theneed for further help

lsquoFurther financial and legal advice I need moreknowledge on how to set up partnerships legalaspectsrsquo (BP B)

lsquoThere will always be need for continuous supportrsquo(BP C)

Career intentions

Perhaps the most important question in a study such asthis is deals with the attitudes to an entrepreneurialcareer the results for this programme are presented inTable 2 As can be seen these responses based on afive-point Likert-style scale are generally favourablewith 14 of the 15 (93) indicating that they were likelyor very likely to continue with their business post-graduation and 13 (87) suggesting it was very likelythat they would look to set up a business at some stagein the future Equally only four (27) suggested thatthey would be likely to work for a large organizationand none of the cohort wanted to undertakepostgraduate study because they were more interested inthe prospect of an entrepreneurial career These resultssuggest that the programme achieved its stated aim ofpreparing students for an entrepreneurial career

DiscussionThis study responds to the calls for further research ingraduate entrepreneurship from Nabi et al (2006) and

Holden et al (2007) The increase in the number ofentrepreneurship education programmes has been drivenby policy makers and economic necessity howeverthere is a real need to confirm and exchange bestpractice to facilitate business start-ups This is the focusof this study and we believe its key contribution to thetopic

Overall the Beta programme can be judged assuccessful in enabling students to evaluate test andgrow their nascent ideas into viable business start-ups(Albert and Gaynor 2006) All the responses collectedregarding the various measures suggest that Beta had apositive impact on attitudes and skills Programmeparticipants were motivated to join Beta because of theattraction of starting a business obtaining start-upcapital accessing mentors and improving theirentrepreneurial competencies

In essence the Beta project is an amalgam of theconcepts regarding pre-incubators and businesscompetitions discussed in the literature consideredabove and elsewhere (Voisey et al 2013) The keyelements identified in Jones and Jones (2011) theprovision of dedicated staff (Stephens and Onofrei2012) and launch capital business mentors andspecialist advice (Allen and McCluskey 1990) are allcentral to the Beta programme

The provision of seed-corn funding to graduateentrepreneurs is critical in providing a real worldcontext and motivation for participation (Huffman andQuigley 2002 Kirby 2006) All Beta participantswelcomed this aspect and cited it as a contributoryfactor regarding their participation Lack of finance haspreviously been cited as a key barrier to entrepreneurialactivity (Fielden et al 2000) and Beta overcomes thisobstacle albeit with a limited level of initial capitalinvestment

Table 2 Future career intentions

Responses Very unlikely Unlikely Undecided Likely Very likely

How likely are you to continue with your business aftergraduation

0 0 1 (7) 6 (40) 8 (53)

How likely are you to set up another business aftergraduation

0 1 (7) 7 (47) 0 7 (47)

How likely are you to set up a business at some stagein the future

0 0 0 2 (13) 13 (87)

How likely are you to work for a small to medium-sizedenterprise after graduation

0 3 (20) 6 (40) 3 (20) 3 (20)

How likely are you to work for a large organization 3 (20) 3 (20) 5 (33) 4 (27) 0

How likely are you to take on a postgraduateprogramme after graduation

6 (40) 4 (27) 5 (33) 0 0

Note sample size N=15 percentages have been rounded to integers

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015414

The Beta programme recognizes the need to buildself-confidence and enterprise skills whilst allowing theparticipants to test and validate their business ideas Itwas apparent that the project allowed students toexperience both positive and negative emotionsNegative emotions (such as uncertaintydisappointment) arose when a business idea was judgednot to be viable following evaluation and reflection bythe participants and mentors (Cope 2003) On occasionparticipants experienced fear and trepidation at theprospect of having to present their idea to a panelalthough following the pitch all participants appreciatedthe experience and recognized its value in enhancing theidea and their own personal development Thesenegative experiences and emotions were just asimportant as the positive experiences because theyallowed the participants the opportunity to reflect andreconsider their actions (Shepherd 2003)

Beta also gave participants a chance to developsocial and formal networks with their peers andmentors The provision of experienced EiRs as businessmentors was recognized as a central tenet in theprogrammersquos success (as noted elsewhere see forexample Greene and Saridakis 2007 Matlay 2008Pickernell et al 2011) The EiRs offered regularprofessional advice and guidance that was used to shapethe studentsrsquo ideas from an early stage EiRs were aconstant presence for the participants throughout theproject and developed a strong and friendly relationshipbased on trust and understanding with each student

On completion of the programme the objective forparticipants is to create a legal fit-for-purpose entitywhich is ready to trade This is a realistic and justifiableproposition In terms of future development the Betaprogramme offers the potential of an intra-universityprocess of business start-up across and includingdifferent disciplines An expansion in its provisionthroughout the university would be a logical next step inits development In terms of future improvements theBeta team would like to create greater engagement withexternal business and crowdfunding networks Therewill be a need to expand the pool of mentors withrelevant expertise in the various disciplines to ensurethat growth across the university is successfullyachieved

ConclusionsThe initial pilot of the Beta project has provedsuccessful with positive feedback from the participantsAs noted above the Centre recognizes the need toembed the programme throughout the university Inaddition there is also a need to integrate the secondlevel of seed-corn funding into the scheme and to ensure

that the supporting entrepreneurs understand therequirements of the both the Centre and its applicants

In terms of best practice the authors recommend thefollowing main considerations

(1) A flexible learning environment should be providedwithin which experiential leaning creativity andinnovation can be effectively supported

(2) A standard classroom delivery should be avoidedbecause it will not produce the desired outcome

(3) Experienced mentors ideally in the form of EiRsshould be provided the mentors must be individualswho can support students effectively in thedevelopment of a viable business idea

(4) Initial seed-corn funding is critical in providing alsquoreal worldrsquo context for participants

(5) Participants must be encouraged to reflect evaluateand potentially rebuild their business idea at allstages of the process

In terms of implications for practice programmes suchas Beta offer a blueprint for entrepreneurship educationin HEIs University decision makers must understandthe importance of encouraging entrepreneurial activityin undergraduate programmes and providecross-university programmes such as Beta that enablein particular access to internal and external seed-cornfunding

The authors recognize that this research is limited toone university case study and the responses are drawnfrom a small cohort of students Generalizing the resultsmust therefore be treated with caution There is a needfor ongoing longitudinal research contrasting bestpractice from a range of universities In addition theissue of positive and negative emotions created bystart-up programmes also requires further examination

ReferencesAcs Z and Szerb S (2007) lsquoEntrepreneurship economic

growth and public policyrsquo Small Business Economics Vol 28No 2ndash3 pp 109ndash122

Albert P and Gaynor L (2006) lsquoTechnology businessincubation management lessons of experiencersquo inBernasconi M Harris S and Moensted M edsHigh-Tech Entrepreneurship Managing Innovation Varietyand Uncertainty Routledge London pp 131ndash143

Allen DN and McCluskey R (1990) lsquoStructure policyservices and performance in the business incubatorindustryrsquo Entrepreneurship Theory and Practice Vol 15 No2 pp 61ndash77

Andrews J and Higson H (2008) lsquoGraduate employabilitylsquolsquosoft skillsrsquorsquo versus lsquolsquohardrsquorsquo business knowledge a Europeanstudyrsquo Higher Education in Europe Vol 33 No 4pp 411ndash422

Atchison M and Gotlieb P (2004) lsquoInnovation and the futureof cooperative educationrsquo in Coll R and Eames C edsInternational Handbook for Cooperative Education AnInternational Perspective of the Theory Research and

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 415

business start-up Jones and Jones (2011) summarizedbest practice as ensuring such competitions arecompulsory and embedded in and across the curriculumThe competition is thus made relevant and students willunderstand its importance and commit to it In additiondedicated university staff should support and managethe competition to help create institutional focusstakeholders and internal commitment There should beprovision of launch capital to incentivise and providerealism and appropriate business mentor support shouldbe provided with both internal and external advisorsUniversity systems should provide legal protection andappropriate advice regarding health and safetyimplications trading practices insurance intellectualproperty etc Finally with regard to business planningcompetitions best student practice should be recognizedby the award of prizes to reward innovation andcreativity It is therefore important that systemic bestpractice is imbedded into systems to facilitate graduatestart-up

Pre-incubator systemsPre-incubators are a facility for supporting nascententrepreneurs offering an environment in which todevelop and test a nascent business idea (Albert andGaynor 2006) The literature in this area suggests thebarriers to start-up are typically lack of capital limitedrelevant knowledge and skills including personal skillsinsufficient market research inferior management skillsincluding financial management and ignorance of theworth of intellectual property (USINE 2002) Thelsquopre-phase facilityrsquo or pre-incubation stage offers ameans of overcoming these obstacles Voisey et al(2013) noted that pre-incubation is the starting point ofa longer process of development consisting of threestages for a new business

(1) Pre-incubator stage ndash ideas and teams are nurtured(2) Incubator stage ndash once there a business plan is

prepared and(3) Post-incubator stage ndash when enterprises move out to

lsquogrow-on spacersquo (Broadfoot and Sheen 2002)

USINE (2002) confirmed the importance ofpre-incubators in serving as a mechanism for filteringout non-viable businesses The presence ofpre-incubation services linked to universities can alsoencourage an entrepreneurial awareness and stimulateentrepreneurial activity (Dickson 2004) Pre-incubatorsfocus on the entrepreneur with ideasinnovations ratherthan assisting businesses that are already established(USINE 2002) Pre-incubation facilities have been

initiated by many HEIs with as much diversity aslsquostandardrsquo incubators (Voisey et al 2013) Thepre-incubation process provides the nascententrepreneur with the support necessary for thedevelopment of the business idea and plan building upthe required resources for the creation of a viablebusiness and then testing the market

Typical pre-incubator services are summarized inFigure 1 as can be seen the incubator services provideminimal-cost services to support the business start-upprocess For HEIs such provision can be seen as anearly stage incubator to enable potentialownerndashmanagers to test and evaluate the viability of abusiness idea Such provision has become popular withwidespread deployment across HEIs (Jones et al 2013)Nascent entrepreneurs are admitted into pre-incubatorswith three potential aims First there is the acquisitionof the skills required to operate a business ventureeffectively and to perform a market test of their productor services before progressing either to independence orfurther incubation Second there is market testingwhich involves purchasing production and salesproviding an opportunity for the entrepreneur to test andenhance necessary business skills (USINE 2002Voisey et al 2006) Third there are benefits to begained from in-house advisory services ndash although otheragencies may be called on to provide advice or training(Voisey et al 2006)

On completion of the pre-incubation process theincubatees should be able to start a business given asuccessful outcome from market testing based on arobust and valid business plan and to monetize the ideaand if appropriate potentially seek an alliance with aventure capitalist (Halt et al 2014) Incubator facilitiesof all types are typically measured with regard toobjective outputs ndash for instance the number ofsuccessful enterprises lsquograduatingrsquo from the incubatorand the levels of income generated over a given periodare clear and necessary metrics Softer more subjectiveoutcomes manifest themselves through the positiveeffect the experience may have on the learning anddevelopment of entrepreneurs providing a basis forimproved employment opportunities and a possiblefuture return to enterprise (Voisey et al 2006)

Pre-incubators thus focus on enabling would-beentrepreneurs to learn about and engage with thefundamental aspects of business start-up businessincubators in contrast focus on taking up businessesthat have experienced these lsquobasicsrsquo and are ready tomove to the next level of development There istherefore a need to embrace best practice from businessincubation as part of experiential-focused enterpriseeducation It is clear that there is selection of literaturefrom business competitions and incubators illustrating

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015408

best practice in enabling graduate start-up This presentstudy will seek to identify the impact and best practiceinherent in the Beta project

ApproachmethodologyThe study used a case study approach and evaluated allaspects of the Beta project the actors involved and itsprocesses and practices Eisenhardt (1989) Yin (2003)and Eisenhardt and Graebner (2007) support the use of asingle case study methodology regarding it as acomprehensive rigorous and coherent approach whichcan add significantly to a body of knowledge The casestudy method enabled lsquohowrsquo and lsquowhyrsquo questions to beasked in order to understand the nature and complexityof the processes being undertaken (Benbasat et al 1987)due to its tradition of capturing rich contextual data(Levy and Powell 1999) and enabling in-depthexamination of the subject (Jones et al 2014)

A two-stage data collection process method wasused first an electronic survey of the participatingstudents was carried out to measure the effect of andattitudes towards the Beta project and secondsemi-structured interviews with academics the projectteam Entrepreneurs in Residence (EiRs) and students

were used to gain a more detailed appreciation of itsimpact A qualitative data collection process was usedkey actors interviewed included the Centre Director theProject Manager Academics (3) EiRs (3) andapplicants and participants (15) The EiRs are externalbusiness people employed on a part-time basis (one dayper week) by the Centre and act as mentors for Betaapplicants All of these participants were selectedbecause of their involvement in the development andday-to-day operation of the project The Beta applicantswere volunteers who chose to undertake the programmeas an extra-curricular activity

A web survey was developed using SurveyMonkeycopy software to examine the impact of andattitudes towards the study (Collins 2003) For thequalitative process two interview guides were createdusing a common template one for university staffinvolved with the project and one for applicants Thisenabled valid cross-group comparisons to be made(Jones et al 2013) Both the web and semi-structuredinstruments were evaluated by external academicsindependent of the research team (Beecham et al 2005)Suggested changes ndash typically to improve thereadability of the research instruments ndash weresubsequently adopted

Figure 1 Business incubator services

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 409

Face-to-face personal interviews were preferred overother data collection methods because they enabled theinterviewers to probe and clarify answers (de Leeuw2005) The research instruments were designed to elicitresponses from all parties on the value experience andimpact of the Beta project The data were collated andanalysed by the research team and used to develop anunderstanding of the impact and effectiveness of theprogramme

A semi-structured research instrument wasdeveloped with a set of open-ended questions whichallowed the respondents to talk at length about thetopics (Johannessen et al 1999) These questions wereused as prompts for each interview ensuring novariation from the research focus (Poon and Swatman1999)

Applicants were contacted by e-mail and invited toparticipate in the study 15 of 18 programme applicantsagreed to do so Respondents completed the electronicsurvey and then undertook the semi-structuredinterview interviews were typically between40ndash60 minutes in duration (Maznevski and Chudoba2000) Staff and programme applicants wereinterviewed by a team of independent researchers notinvolved in the Beta programme to avoid the possibilityof respondent bias (Dillman 1978) On request Betaparticipant anonymity was protected by the use of acoding system and so managers of the Beta programmewere not able to link quotations to individualparticipants (Fox and Tracy 1986) The coding systemused coded individuals thus

bull Beta participants (BP AndashO)bull Academics (A1ndash3) andbull EiRs (1ndash3)

The research study also secured internal ethical approvalby submitting the research proposal which confirmedthat participation in the study was optional and that allrespondentsrsquo contributions were anonymized (Bell andBryman 2007) to the university research committeeTo improve the validity of the research each respondentwas provided with a transcript of their interview andasked to confirm and approve its content (MacLellan2001) The contents of all the interviews were thencompared and contrasted to identify key themesassociated with the study This involved a process of

data reduction display and conclusion drawing andverification (Miles and Huberman 1994)

Description of the Beta projectThe project involves a two-stage process During thefirst stage the Centre promotes the Beta project throughpresentations to student groups and invites applicants toattend an informal interview regarding the possibility ofentering the scheme Applications are welcomed fromgroups and individuals it is recognized that a viablebusiness entity could require a collective or team effortto increase the levels of knowledge and expertiseinvolved During the initial interview earlyconversations focus on the personal attributes of theapplicant(s) their interests and potential business ideasIf participants remain interested following the interviewthey can progress to the second stage at which the Betaprogramme takes students through the process ofdeveloping a concept and turning it into a viablebusiness venture Applicants complete an applicationform outlining their business idea and a timescale forimplementation

Beta allows students to develop their entrepreneurialskills in a supportive environment with one-to-onementoring and the opportunity to receive anon-repayable grant of up to pound1500 to kick-start theirbusiness idea The programme also offers severaltraining sessions with experts for example they have asession with an intellectual property expert a marketingexpert and a financial advisor to help refine their idea

Beta currently runs once a year and had 20 studentson the programme for the 2013ndash2014 academic year Akey strength of the programme is the supportiveno-strings environment it provides for students in whichto experiment and take lsquosafe risksrsquo Business ideas areexpected to be innovative and able to meet a marketneed In the Beta programme mistakes are not seen as asetback but rather as part of a process for teachingstudents how to learn and recover from failure andsetbacks

Process detail

Figure 2 illustrates the operational processes involved inthe Beta programme The students join the programmewith an initial idea this is then developed by the student

Figure 2 The Beta programme process

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015410

with advice from a mentor each student in the schemebeing allocated a mentor (typically an Entrepreneur inResidence) When ready the student is asked to pitchthe business idea to an Advisory Panel (made up ofinternal and external members of the EntrepreneurshipCentre) whose purpose is to evaluate the validity of theidea If the idea is considered viable the idea isapproved and the student is given access to the pound1500funding If the idea is not approved recommendationsare made for improvement and the student is asked toreconsider the idea The idea can be rejected outright atthis stage and the student asked to improve it orconsider an alternative

If funding is granted the student must use the moneyto create a valid business entity which is then launchedStudents then have an opportunity to bid for a secondequity investment (up to pound50000) to facilitate furtherdevelopment and growth of their business The processfor this second tranche of funding involves an interviewwith a potential business angel or provision of access tocrowdfunding

Beta pedagogyThe programme uses a cycle of ongoing reflectivelearning derived from the models of experientiallearning developed by Schoumln (1987) and Kolb (1984)The core of the learning strategy consists ofencouraging the development of the business idea basedon development of development creativity andcognition (Corbett 2005) The Beta programmeencourages innovation by requiring participants todevelop a viable idea which has the potential to becomea growing entity Non-growth lsquolifestylersquo typeapplications are not supported In addition enterprisesmust be seen to meet a business need rather thanproviding additional supply (for example a standardservice-sector business would be discouraged unlesssignificant justification is provided) Theseconsiderations will be identified on the applicantrsquosinitial application

Part of this process is the requirement for receivingcontinuous feedback from EiRsacademic staff in anon-classroom environment regarding the developmentof the idea The learning space in this instance was anEntrepreneurial Centre with a flexible learningenvironment Participants were also encouraged to sharetheir idea and invite feedback from their peer group thefeedback promotes self-reflection and encourages theacquisition of new information to enhance the businessidea The flexible learning space enabled bothone-to-one and one-to-many tutor sessions with a focuson the facilitation of learning and knowledge exchangeParticipants would meet regularly with their mentor and

develop elements of the business idea After eachmentoring session the participants were asked toconsider and reflect on the session and its implicationsfor their idea The entire project was underpinned by thecore principle of developing a personalized creativepractical and collaborative ethos

FindingsThe key themes investigated were key driversmotivations programme benefits challengesknowledge and skill development attitudinal impact andbusiness support requirements

Key drivers

The Academic Director of the Entrepreneurship Centrewas asked to explain the purpose of the Betaprogramme The Director responded thus

lsquoThe purpose of Centre is to stimulatesocio-economic growth It is a hybrid structure ofacademia and business We aim for a seamlessstrategy towards socio-economic growth The Betaprogramme is a key enabler to closing the gapbetween academia and businessrsquo

Thus the key purpose of the Beta programme was tobridge the gap between academia and business andprovide an enabling system to allow students toundertake a business start-up within the universityinfrastructure

Motivations

Respondents were asked to identify their motivationsfor undertaking the Beta programme In descendingorder these were

bull To increase their chance of starting a business(67)

bull Gaining financial support (60)bull To have individual mentoring (60)bull To increase business knowledge (53) andbull To increase entrepreneurial skills (53)

It was thus apparent that the cohort was motivated toundertake the programme by the opportunities offered toboost their entrepreneurial competencies with the addedbenefit of acquiring seed-corn funding Individualmentoring support was also identified as an importantdriver in undertaking the programme

Benefits

The participants were asked what they had foundbeneficial in the programme In particular responseswere noted about the central role of the EiR and

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 411

provision of specific advice in intellectual property andbusiness insurance Representative comments were

lsquoReceiving the funding to help support our businessrsquo(Beta Participant A)

lsquoThe personalized help and support given but alsothe friendliness of the staff as encouragement toproceed forwardsrsquo (BP C) and

lsquo I feel that I have developed a lot of confidence inmy business idea as I came to the programme veryhesitant and shy to talk about my idearsquo (BP H)

The provision of funding was identified as of criticalimportance as were the individual support and adviceprovided by EIRs to build confidence and develop aviable business idea All the respondents recognized theimportance of the individual mentoring support they hadbeen offered which had built their confidence andself-belief EiRs commented

lsquoActing as a mentor to the students is extremelyrewarding I feel I benefit from their enthusiasm andthey benefit from my experiencersquo (EiR 1) and

lsquoI fill in the gaps a little there are things which theydo not consider and my knowledge helps them toproduce a more rounded business planrsquo (EiR 2)

Challenges

The respondents were asked to identify the challengingelements of the Beta programme Respondentsmentioned in particular their initial nervousness aboutgoing through the process of pitching their idea to apanel of Beta staff and the need to balance theextra-curricular Beta programme with their course ofstudy Typical comments were as follows

lsquoI think the most challenging part of the programmehas been overcoming my lack of confidence inmyself and my idea as it is pretty daunting startingup your own business Itrsquos never really beensomething I have seen myself doing But of courseIrsquom not as scared as I was I feel a lot more confidentdue to working with the EiR as he encouraged me tosee my idea from a different point of view instead ofme being critical he allowed me to see the fun sideto it again which was greatrsquo (BP N)

lsquoThe pitch very nerve-rackingrsquo (BP I)

lsquoWorking it around university and othercommitmentsrsquo (BP E)

The problem of nervousness is perhaps understandableThe participantrsquos emotional state was apparent inseveral comments and it was noticeable that Beta hadinitiated both positive and negative emotions This wasrecognized by the academic team who commented

lsquoWe recognized early on that we had to strike thebalance in challenging the participants to defend theiridea whilst providing a supportive and friendlyenvironmentrsquo (Academic B)

The Beta team did provide a supportive but professionalenvironment to enable the participants to reflect andevaluate their idea effectively The academic team andEiRs were known on a first-name basis by Betaparticipants although the relationship remainedrespectful and supportive throughout For their partstudents were prepared to undertake a business start-upactivity as an extra-curricular activity because theyappreciated the benefits the process would provide

Participants were also asked if any part of the Betaprogramme had resulted in a negative impact on settingup a business Fourteen said that this was not the casethere was one response otherwise

lsquoWhen I found out my first business idea was notlogistical [sic] and financially viable I lost allmotivation but with a new idea I liked I was back ontrackrsquo (BP N)

This statement identifies both the positive and negativepotential impacts of the Beta programme Theindividual concerned found that their idea was notfeasible this is an essential purpose of the programmein that it provides a safe environment in which toevaluate an idea In this case the student involved wasable to develop a fresh idea

Knowledge and skill development

The participants were asked to consider how theprogramme had affected the development of theirknowledge and skills using a five-point Likert-stylescale Table 1 presents the full data and the followingsummarizes the key findings

The students considered that the programme hadhelped them significantly in identifying opportunitieswith 13 (87) either agreeing or strongly agreeing withthe notion It is useful here to recall that as part of theBeta programme students were expected to undertake afeasibility analysis of a business idea and to progresswith valid ideas only

Some two-thirds of the students lsquostrongly agreedrsquo orlsquoagreedrsquo that the Beta programme had developed theircapacity to adopt innovative approaches and enhanced

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015412

their problem-solving capabilities The EiRs andacademic staff encouraged Beta participants to seekunique and innovative solutions that would createeconomically sustainable business start-ups

Participants were asked whether the programme hadhelped to build their resilience and ability to overcomechallenges again the results were positive with 12(80) recording lsquostrongly agreersquo or lsquoagreedrsquo

The next aspect considered was whether theprogramme had helped to develop their ability to limitand manage risk The results were positive with 10(67) in agreement and two (13) strongly agreeing

Respondents were asked to identify whether thecourse had helped them to evaluate issues and makedecisions The responses were positive with 10 (67)in agreement and two (13) strongly agreeing Withregard to the encouragement students had received todevelop networks with peers and external contacts usingthe Entrepreneurial Society and social media it wasapparent that the students had done so with 14 of the 15(93) answering positively

Reflection is a strong element of the Betaprogramme participants are required in particular toconsider the viability of their ideas 12 (80) agreedthat there was sufficient time to reflect generally on theirenterprising skills

Responses were less favourable when studentswere asked whether the programme had providedopportunities for collaborative working The majority ofideas in the first cohort were individual and so only four(26) agreed or strongly agreed with this and six (40)disagreed or strongly disagreed

When they were asked if the programme had helpedthem to develop their business idea 100 answeredfavourably a strong endorsement for the value of theprogramme

Participants were asked to indicate whether theprogramme had enhanced their understanding of thefinancial and legal implications of their businessproposal The responses were highly supportive with 13(86) agreeing or strongly agreeing

Equally 13 (86) thought that the programme hadhelped them to identify their target markets 14 (93)that it helped them to articulate their business ideas and14 (93) that it helped build their confidence Finally14 (93) agreed with the notion that the programmehad enabled them to understand what it took to start abusiness Overall 93 of students answeredfavourably with only one (7) negative responsesuggesting that the Beta programme was fit for purposeand enabled the participants to develop viable businessideas

Table 1 Skills and competencies developed

Question Stronglydisagree

Disagree Neitheragree nordisagree

Agree Stronglyagree

Developed your ability in identifying opportunities 0 0 2 (13) 6 (40) 7 (47)

Developed your capacity to take innovativeapproaches

0 1 (7) 4 (27) 2 (13) 8 (53)

Built your resilience and ability to overcomechallenges

0 0 3 (20) 5 (33) 7 (47)

Developed your ability to limit and manage risk 0 0 3 (20) 10 (67) 2 (13)

Helped you to evaluate issues and make decisions 0 1 (7) 3 (20) 10 (67) 2 (13)

Helped build your networks 0 1 (7) 0 8 (53) 6 (40)

Allowed you time to reflect on your enterprising skills 0 2 (13) 1 (7) 5 (33) 7 (47)

Developed opportunities for collaborative working 3 (20) 3 (20) 5 (33) 2 (13) 2 (13)

Helped you to develop your business idea 0 0 0 3 (20) 12 (80)

Helped you to recognize financial and legal implicationson a business proposal

0 0 2 (13) 5 (33) 8 (53)

Identify target markets 0 1 (7) 4 (27) 5 (33) 5 (33)

Helped you articulate your business ideas 0 0 1 (7) 6 (40) 8 (53)

Built your confidence to start a business 0 0 1 (7) 4 (27) 10 (67)

Understand what it takes to start your own business 0 0 1 (7) 8 (53) 6 (40)

Note sample size N=15 percentages have been rounded to integers

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 413

Self-employability intentions

The respondents were asked to identify whether theyrequired any further support for developing theirbusiness Overall 13 (87) said that they did notrequire any further support but two respondents felt theneed for further help

lsquoFurther financial and legal advice I need moreknowledge on how to set up partnerships legalaspectsrsquo (BP B)

lsquoThere will always be need for continuous supportrsquo(BP C)

Career intentions

Perhaps the most important question in a study such asthis is deals with the attitudes to an entrepreneurialcareer the results for this programme are presented inTable 2 As can be seen these responses based on afive-point Likert-style scale are generally favourablewith 14 of the 15 (93) indicating that they were likelyor very likely to continue with their business post-graduation and 13 (87) suggesting it was very likelythat they would look to set up a business at some stagein the future Equally only four (27) suggested thatthey would be likely to work for a large organizationand none of the cohort wanted to undertakepostgraduate study because they were more interested inthe prospect of an entrepreneurial career These resultssuggest that the programme achieved its stated aim ofpreparing students for an entrepreneurial career

DiscussionThis study responds to the calls for further research ingraduate entrepreneurship from Nabi et al (2006) and

Holden et al (2007) The increase in the number ofentrepreneurship education programmes has been drivenby policy makers and economic necessity howeverthere is a real need to confirm and exchange bestpractice to facilitate business start-ups This is the focusof this study and we believe its key contribution to thetopic

Overall the Beta programme can be judged assuccessful in enabling students to evaluate test andgrow their nascent ideas into viable business start-ups(Albert and Gaynor 2006) All the responses collectedregarding the various measures suggest that Beta had apositive impact on attitudes and skills Programmeparticipants were motivated to join Beta because of theattraction of starting a business obtaining start-upcapital accessing mentors and improving theirentrepreneurial competencies

In essence the Beta project is an amalgam of theconcepts regarding pre-incubators and businesscompetitions discussed in the literature consideredabove and elsewhere (Voisey et al 2013) The keyelements identified in Jones and Jones (2011) theprovision of dedicated staff (Stephens and Onofrei2012) and launch capital business mentors andspecialist advice (Allen and McCluskey 1990) are allcentral to the Beta programme

The provision of seed-corn funding to graduateentrepreneurs is critical in providing a real worldcontext and motivation for participation (Huffman andQuigley 2002 Kirby 2006) All Beta participantswelcomed this aspect and cited it as a contributoryfactor regarding their participation Lack of finance haspreviously been cited as a key barrier to entrepreneurialactivity (Fielden et al 2000) and Beta overcomes thisobstacle albeit with a limited level of initial capitalinvestment

Table 2 Future career intentions

Responses Very unlikely Unlikely Undecided Likely Very likely

How likely are you to continue with your business aftergraduation

0 0 1 (7) 6 (40) 8 (53)

How likely are you to set up another business aftergraduation

0 1 (7) 7 (47) 0 7 (47)

How likely are you to set up a business at some stagein the future

0 0 0 2 (13) 13 (87)

How likely are you to work for a small to medium-sizedenterprise after graduation

0 3 (20) 6 (40) 3 (20) 3 (20)

How likely are you to work for a large organization 3 (20) 3 (20) 5 (33) 4 (27) 0

How likely are you to take on a postgraduateprogramme after graduation

6 (40) 4 (27) 5 (33) 0 0

Note sample size N=15 percentages have been rounded to integers

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015414

The Beta programme recognizes the need to buildself-confidence and enterprise skills whilst allowing theparticipants to test and validate their business ideas Itwas apparent that the project allowed students toexperience both positive and negative emotionsNegative emotions (such as uncertaintydisappointment) arose when a business idea was judgednot to be viable following evaluation and reflection bythe participants and mentors (Cope 2003) On occasionparticipants experienced fear and trepidation at theprospect of having to present their idea to a panelalthough following the pitch all participants appreciatedthe experience and recognized its value in enhancing theidea and their own personal development Thesenegative experiences and emotions were just asimportant as the positive experiences because theyallowed the participants the opportunity to reflect andreconsider their actions (Shepherd 2003)

Beta also gave participants a chance to developsocial and formal networks with their peers andmentors The provision of experienced EiRs as businessmentors was recognized as a central tenet in theprogrammersquos success (as noted elsewhere see forexample Greene and Saridakis 2007 Matlay 2008Pickernell et al 2011) The EiRs offered regularprofessional advice and guidance that was used to shapethe studentsrsquo ideas from an early stage EiRs were aconstant presence for the participants throughout theproject and developed a strong and friendly relationshipbased on trust and understanding with each student

On completion of the programme the objective forparticipants is to create a legal fit-for-purpose entitywhich is ready to trade This is a realistic and justifiableproposition In terms of future development the Betaprogramme offers the potential of an intra-universityprocess of business start-up across and includingdifferent disciplines An expansion in its provisionthroughout the university would be a logical next step inits development In terms of future improvements theBeta team would like to create greater engagement withexternal business and crowdfunding networks Therewill be a need to expand the pool of mentors withrelevant expertise in the various disciplines to ensurethat growth across the university is successfullyachieved

ConclusionsThe initial pilot of the Beta project has provedsuccessful with positive feedback from the participantsAs noted above the Centre recognizes the need toembed the programme throughout the university Inaddition there is also a need to integrate the secondlevel of seed-corn funding into the scheme and to ensure

that the supporting entrepreneurs understand therequirements of the both the Centre and its applicants

In terms of best practice the authors recommend thefollowing main considerations

(1) A flexible learning environment should be providedwithin which experiential leaning creativity andinnovation can be effectively supported

(2) A standard classroom delivery should be avoidedbecause it will not produce the desired outcome

(3) Experienced mentors ideally in the form of EiRsshould be provided the mentors must be individualswho can support students effectively in thedevelopment of a viable business idea

(4) Initial seed-corn funding is critical in providing alsquoreal worldrsquo context for participants

(5) Participants must be encouraged to reflect evaluateand potentially rebuild their business idea at allstages of the process

In terms of implications for practice programmes suchas Beta offer a blueprint for entrepreneurship educationin HEIs University decision makers must understandthe importance of encouraging entrepreneurial activityin undergraduate programmes and providecross-university programmes such as Beta that enablein particular access to internal and external seed-cornfunding

The authors recognize that this research is limited toone university case study and the responses are drawnfrom a small cohort of students Generalizing the resultsmust therefore be treated with caution There is a needfor ongoing longitudinal research contrasting bestpractice from a range of universities In addition theissue of positive and negative emotions created bystart-up programmes also requires further examination

ReferencesAcs Z and Szerb S (2007) lsquoEntrepreneurship economic

growth and public policyrsquo Small Business Economics Vol 28No 2ndash3 pp 109ndash122

Albert P and Gaynor L (2006) lsquoTechnology businessincubation management lessons of experiencersquo inBernasconi M Harris S and Moensted M edsHigh-Tech Entrepreneurship Managing Innovation Varietyand Uncertainty Routledge London pp 131ndash143

Allen DN and McCluskey R (1990) lsquoStructure policyservices and performance in the business incubatorindustryrsquo Entrepreneurship Theory and Practice Vol 15 No2 pp 61ndash77

Andrews J and Higson H (2008) lsquoGraduate employabilitylsquolsquosoft skillsrsquorsquo versus lsquolsquohardrsquorsquo business knowledge a Europeanstudyrsquo Higher Education in Europe Vol 33 No 4pp 411ndash422

Atchison M and Gotlieb P (2004) lsquoInnovation and the futureof cooperative educationrsquo in Coll R and Eames C edsInternational Handbook for Cooperative Education AnInternational Perspective of the Theory Research and

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 415

best practice in enabling graduate start-up This presentstudy will seek to identify the impact and best practiceinherent in the Beta project

ApproachmethodologyThe study used a case study approach and evaluated allaspects of the Beta project the actors involved and itsprocesses and practices Eisenhardt (1989) Yin (2003)and Eisenhardt and Graebner (2007) support the use of asingle case study methodology regarding it as acomprehensive rigorous and coherent approach whichcan add significantly to a body of knowledge The casestudy method enabled lsquohowrsquo and lsquowhyrsquo questions to beasked in order to understand the nature and complexityof the processes being undertaken (Benbasat et al 1987)due to its tradition of capturing rich contextual data(Levy and Powell 1999) and enabling in-depthexamination of the subject (Jones et al 2014)

A two-stage data collection process method wasused first an electronic survey of the participatingstudents was carried out to measure the effect of andattitudes towards the Beta project and secondsemi-structured interviews with academics the projectteam Entrepreneurs in Residence (EiRs) and students

were used to gain a more detailed appreciation of itsimpact A qualitative data collection process was usedkey actors interviewed included the Centre Director theProject Manager Academics (3) EiRs (3) andapplicants and participants (15) The EiRs are externalbusiness people employed on a part-time basis (one dayper week) by the Centre and act as mentors for Betaapplicants All of these participants were selectedbecause of their involvement in the development andday-to-day operation of the project The Beta applicantswere volunteers who chose to undertake the programmeas an extra-curricular activity

A web survey was developed using SurveyMonkeycopy software to examine the impact of andattitudes towards the study (Collins 2003) For thequalitative process two interview guides were createdusing a common template one for university staffinvolved with the project and one for applicants Thisenabled valid cross-group comparisons to be made(Jones et al 2013) Both the web and semi-structuredinstruments were evaluated by external academicsindependent of the research team (Beecham et al 2005)Suggested changes ndash typically to improve thereadability of the research instruments ndash weresubsequently adopted

Figure 1 Business incubator services

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 409

Face-to-face personal interviews were preferred overother data collection methods because they enabled theinterviewers to probe and clarify answers (de Leeuw2005) The research instruments were designed to elicitresponses from all parties on the value experience andimpact of the Beta project The data were collated andanalysed by the research team and used to develop anunderstanding of the impact and effectiveness of theprogramme

A semi-structured research instrument wasdeveloped with a set of open-ended questions whichallowed the respondents to talk at length about thetopics (Johannessen et al 1999) These questions wereused as prompts for each interview ensuring novariation from the research focus (Poon and Swatman1999)

Applicants were contacted by e-mail and invited toparticipate in the study 15 of 18 programme applicantsagreed to do so Respondents completed the electronicsurvey and then undertook the semi-structuredinterview interviews were typically between40ndash60 minutes in duration (Maznevski and Chudoba2000) Staff and programme applicants wereinterviewed by a team of independent researchers notinvolved in the Beta programme to avoid the possibilityof respondent bias (Dillman 1978) On request Betaparticipant anonymity was protected by the use of acoding system and so managers of the Beta programmewere not able to link quotations to individualparticipants (Fox and Tracy 1986) The coding systemused coded individuals thus

bull Beta participants (BP AndashO)bull Academics (A1ndash3) andbull EiRs (1ndash3)

The research study also secured internal ethical approvalby submitting the research proposal which confirmedthat participation in the study was optional and that allrespondentsrsquo contributions were anonymized (Bell andBryman 2007) to the university research committeeTo improve the validity of the research each respondentwas provided with a transcript of their interview andasked to confirm and approve its content (MacLellan2001) The contents of all the interviews were thencompared and contrasted to identify key themesassociated with the study This involved a process of

data reduction display and conclusion drawing andverification (Miles and Huberman 1994)

Description of the Beta projectThe project involves a two-stage process During thefirst stage the Centre promotes the Beta project throughpresentations to student groups and invites applicants toattend an informal interview regarding the possibility ofentering the scheme Applications are welcomed fromgroups and individuals it is recognized that a viablebusiness entity could require a collective or team effortto increase the levels of knowledge and expertiseinvolved During the initial interview earlyconversations focus on the personal attributes of theapplicant(s) their interests and potential business ideasIf participants remain interested following the interviewthey can progress to the second stage at which the Betaprogramme takes students through the process ofdeveloping a concept and turning it into a viablebusiness venture Applicants complete an applicationform outlining their business idea and a timescale forimplementation

Beta allows students to develop their entrepreneurialskills in a supportive environment with one-to-onementoring and the opportunity to receive anon-repayable grant of up to pound1500 to kick-start theirbusiness idea The programme also offers severaltraining sessions with experts for example they have asession with an intellectual property expert a marketingexpert and a financial advisor to help refine their idea

Beta currently runs once a year and had 20 studentson the programme for the 2013ndash2014 academic year Akey strength of the programme is the supportiveno-strings environment it provides for students in whichto experiment and take lsquosafe risksrsquo Business ideas areexpected to be innovative and able to meet a marketneed In the Beta programme mistakes are not seen as asetback but rather as part of a process for teachingstudents how to learn and recover from failure andsetbacks

Process detail

Figure 2 illustrates the operational processes involved inthe Beta programme The students join the programmewith an initial idea this is then developed by the student

Figure 2 The Beta programme process

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015410

with advice from a mentor each student in the schemebeing allocated a mentor (typically an Entrepreneur inResidence) When ready the student is asked to pitchthe business idea to an Advisory Panel (made up ofinternal and external members of the EntrepreneurshipCentre) whose purpose is to evaluate the validity of theidea If the idea is considered viable the idea isapproved and the student is given access to the pound1500funding If the idea is not approved recommendationsare made for improvement and the student is asked toreconsider the idea The idea can be rejected outright atthis stage and the student asked to improve it orconsider an alternative

If funding is granted the student must use the moneyto create a valid business entity which is then launchedStudents then have an opportunity to bid for a secondequity investment (up to pound50000) to facilitate furtherdevelopment and growth of their business The processfor this second tranche of funding involves an interviewwith a potential business angel or provision of access tocrowdfunding

Beta pedagogyThe programme uses a cycle of ongoing reflectivelearning derived from the models of experientiallearning developed by Schoumln (1987) and Kolb (1984)The core of the learning strategy consists ofencouraging the development of the business idea basedon development of development creativity andcognition (Corbett 2005) The Beta programmeencourages innovation by requiring participants todevelop a viable idea which has the potential to becomea growing entity Non-growth lsquolifestylersquo typeapplications are not supported In addition enterprisesmust be seen to meet a business need rather thanproviding additional supply (for example a standardservice-sector business would be discouraged unlesssignificant justification is provided) Theseconsiderations will be identified on the applicantrsquosinitial application

Part of this process is the requirement for receivingcontinuous feedback from EiRsacademic staff in anon-classroom environment regarding the developmentof the idea The learning space in this instance was anEntrepreneurial Centre with a flexible learningenvironment Participants were also encouraged to sharetheir idea and invite feedback from their peer group thefeedback promotes self-reflection and encourages theacquisition of new information to enhance the businessidea The flexible learning space enabled bothone-to-one and one-to-many tutor sessions with a focuson the facilitation of learning and knowledge exchangeParticipants would meet regularly with their mentor and

develop elements of the business idea After eachmentoring session the participants were asked toconsider and reflect on the session and its implicationsfor their idea The entire project was underpinned by thecore principle of developing a personalized creativepractical and collaborative ethos

FindingsThe key themes investigated were key driversmotivations programme benefits challengesknowledge and skill development attitudinal impact andbusiness support requirements

Key drivers

The Academic Director of the Entrepreneurship Centrewas asked to explain the purpose of the Betaprogramme The Director responded thus

lsquoThe purpose of Centre is to stimulatesocio-economic growth It is a hybrid structure ofacademia and business We aim for a seamlessstrategy towards socio-economic growth The Betaprogramme is a key enabler to closing the gapbetween academia and businessrsquo

Thus the key purpose of the Beta programme was tobridge the gap between academia and business andprovide an enabling system to allow students toundertake a business start-up within the universityinfrastructure

Motivations

Respondents were asked to identify their motivationsfor undertaking the Beta programme In descendingorder these were

bull To increase their chance of starting a business(67)

bull Gaining financial support (60)bull To have individual mentoring (60)bull To increase business knowledge (53) andbull To increase entrepreneurial skills (53)

It was thus apparent that the cohort was motivated toundertake the programme by the opportunities offered toboost their entrepreneurial competencies with the addedbenefit of acquiring seed-corn funding Individualmentoring support was also identified as an importantdriver in undertaking the programme

Benefits

The participants were asked what they had foundbeneficial in the programme In particular responseswere noted about the central role of the EiR and

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 411

provision of specific advice in intellectual property andbusiness insurance Representative comments were

lsquoReceiving the funding to help support our businessrsquo(Beta Participant A)

lsquoThe personalized help and support given but alsothe friendliness of the staff as encouragement toproceed forwardsrsquo (BP C) and

lsquo I feel that I have developed a lot of confidence inmy business idea as I came to the programme veryhesitant and shy to talk about my idearsquo (BP H)

The provision of funding was identified as of criticalimportance as were the individual support and adviceprovided by EIRs to build confidence and develop aviable business idea All the respondents recognized theimportance of the individual mentoring support they hadbeen offered which had built their confidence andself-belief EiRs commented

lsquoActing as a mentor to the students is extremelyrewarding I feel I benefit from their enthusiasm andthey benefit from my experiencersquo (EiR 1) and

lsquoI fill in the gaps a little there are things which theydo not consider and my knowledge helps them toproduce a more rounded business planrsquo (EiR 2)

Challenges

The respondents were asked to identify the challengingelements of the Beta programme Respondentsmentioned in particular their initial nervousness aboutgoing through the process of pitching their idea to apanel of Beta staff and the need to balance theextra-curricular Beta programme with their course ofstudy Typical comments were as follows

lsquoI think the most challenging part of the programmehas been overcoming my lack of confidence inmyself and my idea as it is pretty daunting startingup your own business Itrsquos never really beensomething I have seen myself doing But of courseIrsquom not as scared as I was I feel a lot more confidentdue to working with the EiR as he encouraged me tosee my idea from a different point of view instead ofme being critical he allowed me to see the fun sideto it again which was greatrsquo (BP N)

lsquoThe pitch very nerve-rackingrsquo (BP I)

lsquoWorking it around university and othercommitmentsrsquo (BP E)

The problem of nervousness is perhaps understandableThe participantrsquos emotional state was apparent inseveral comments and it was noticeable that Beta hadinitiated both positive and negative emotions This wasrecognized by the academic team who commented

lsquoWe recognized early on that we had to strike thebalance in challenging the participants to defend theiridea whilst providing a supportive and friendlyenvironmentrsquo (Academic B)

The Beta team did provide a supportive but professionalenvironment to enable the participants to reflect andevaluate their idea effectively The academic team andEiRs were known on a first-name basis by Betaparticipants although the relationship remainedrespectful and supportive throughout For their partstudents were prepared to undertake a business start-upactivity as an extra-curricular activity because theyappreciated the benefits the process would provide

Participants were also asked if any part of the Betaprogramme had resulted in a negative impact on settingup a business Fourteen said that this was not the casethere was one response otherwise

lsquoWhen I found out my first business idea was notlogistical [sic] and financially viable I lost allmotivation but with a new idea I liked I was back ontrackrsquo (BP N)

This statement identifies both the positive and negativepotential impacts of the Beta programme Theindividual concerned found that their idea was notfeasible this is an essential purpose of the programmein that it provides a safe environment in which toevaluate an idea In this case the student involved wasable to develop a fresh idea

Knowledge and skill development

The participants were asked to consider how theprogramme had affected the development of theirknowledge and skills using a five-point Likert-stylescale Table 1 presents the full data and the followingsummarizes the key findings

The students considered that the programme hadhelped them significantly in identifying opportunitieswith 13 (87) either agreeing or strongly agreeing withthe notion It is useful here to recall that as part of theBeta programme students were expected to undertake afeasibility analysis of a business idea and to progresswith valid ideas only

Some two-thirds of the students lsquostrongly agreedrsquo orlsquoagreedrsquo that the Beta programme had developed theircapacity to adopt innovative approaches and enhanced

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015412

their problem-solving capabilities The EiRs andacademic staff encouraged Beta participants to seekunique and innovative solutions that would createeconomically sustainable business start-ups

Participants were asked whether the programme hadhelped to build their resilience and ability to overcomechallenges again the results were positive with 12(80) recording lsquostrongly agreersquo or lsquoagreedrsquo

The next aspect considered was whether theprogramme had helped to develop their ability to limitand manage risk The results were positive with 10(67) in agreement and two (13) strongly agreeing

Respondents were asked to identify whether thecourse had helped them to evaluate issues and makedecisions The responses were positive with 10 (67)in agreement and two (13) strongly agreeing Withregard to the encouragement students had received todevelop networks with peers and external contacts usingthe Entrepreneurial Society and social media it wasapparent that the students had done so with 14 of the 15(93) answering positively

Reflection is a strong element of the Betaprogramme participants are required in particular toconsider the viability of their ideas 12 (80) agreedthat there was sufficient time to reflect generally on theirenterprising skills

Responses were less favourable when studentswere asked whether the programme had providedopportunities for collaborative working The majority ofideas in the first cohort were individual and so only four(26) agreed or strongly agreed with this and six (40)disagreed or strongly disagreed

When they were asked if the programme had helpedthem to develop their business idea 100 answeredfavourably a strong endorsement for the value of theprogramme

Participants were asked to indicate whether theprogramme had enhanced their understanding of thefinancial and legal implications of their businessproposal The responses were highly supportive with 13(86) agreeing or strongly agreeing

Equally 13 (86) thought that the programme hadhelped them to identify their target markets 14 (93)that it helped them to articulate their business ideas and14 (93) that it helped build their confidence Finally14 (93) agreed with the notion that the programmehad enabled them to understand what it took to start abusiness Overall 93 of students answeredfavourably with only one (7) negative responsesuggesting that the Beta programme was fit for purposeand enabled the participants to develop viable businessideas

Table 1 Skills and competencies developed

Question Stronglydisagree

Disagree Neitheragree nordisagree

Agree Stronglyagree

Developed your ability in identifying opportunities 0 0 2 (13) 6 (40) 7 (47)

Developed your capacity to take innovativeapproaches

0 1 (7) 4 (27) 2 (13) 8 (53)

Built your resilience and ability to overcomechallenges

0 0 3 (20) 5 (33) 7 (47)

Developed your ability to limit and manage risk 0 0 3 (20) 10 (67) 2 (13)

Helped you to evaluate issues and make decisions 0 1 (7) 3 (20) 10 (67) 2 (13)

Helped build your networks 0 1 (7) 0 8 (53) 6 (40)

Allowed you time to reflect on your enterprising skills 0 2 (13) 1 (7) 5 (33) 7 (47)

Developed opportunities for collaborative working 3 (20) 3 (20) 5 (33) 2 (13) 2 (13)

Helped you to develop your business idea 0 0 0 3 (20) 12 (80)

Helped you to recognize financial and legal implicationson a business proposal

0 0 2 (13) 5 (33) 8 (53)

Identify target markets 0 1 (7) 4 (27) 5 (33) 5 (33)

Helped you articulate your business ideas 0 0 1 (7) 6 (40) 8 (53)

Built your confidence to start a business 0 0 1 (7) 4 (27) 10 (67)

Understand what it takes to start your own business 0 0 1 (7) 8 (53) 6 (40)

Note sample size N=15 percentages have been rounded to integers

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 413

Self-employability intentions

The respondents were asked to identify whether theyrequired any further support for developing theirbusiness Overall 13 (87) said that they did notrequire any further support but two respondents felt theneed for further help

lsquoFurther financial and legal advice I need moreknowledge on how to set up partnerships legalaspectsrsquo (BP B)

lsquoThere will always be need for continuous supportrsquo(BP C)

Career intentions

Perhaps the most important question in a study such asthis is deals with the attitudes to an entrepreneurialcareer the results for this programme are presented inTable 2 As can be seen these responses based on afive-point Likert-style scale are generally favourablewith 14 of the 15 (93) indicating that they were likelyor very likely to continue with their business post-graduation and 13 (87) suggesting it was very likelythat they would look to set up a business at some stagein the future Equally only four (27) suggested thatthey would be likely to work for a large organizationand none of the cohort wanted to undertakepostgraduate study because they were more interested inthe prospect of an entrepreneurial career These resultssuggest that the programme achieved its stated aim ofpreparing students for an entrepreneurial career

DiscussionThis study responds to the calls for further research ingraduate entrepreneurship from Nabi et al (2006) and

Holden et al (2007) The increase in the number ofentrepreneurship education programmes has been drivenby policy makers and economic necessity howeverthere is a real need to confirm and exchange bestpractice to facilitate business start-ups This is the focusof this study and we believe its key contribution to thetopic

Overall the Beta programme can be judged assuccessful in enabling students to evaluate test andgrow their nascent ideas into viable business start-ups(Albert and Gaynor 2006) All the responses collectedregarding the various measures suggest that Beta had apositive impact on attitudes and skills Programmeparticipants were motivated to join Beta because of theattraction of starting a business obtaining start-upcapital accessing mentors and improving theirentrepreneurial competencies

In essence the Beta project is an amalgam of theconcepts regarding pre-incubators and businesscompetitions discussed in the literature consideredabove and elsewhere (Voisey et al 2013) The keyelements identified in Jones and Jones (2011) theprovision of dedicated staff (Stephens and Onofrei2012) and launch capital business mentors andspecialist advice (Allen and McCluskey 1990) are allcentral to the Beta programme

The provision of seed-corn funding to graduateentrepreneurs is critical in providing a real worldcontext and motivation for participation (Huffman andQuigley 2002 Kirby 2006) All Beta participantswelcomed this aspect and cited it as a contributoryfactor regarding their participation Lack of finance haspreviously been cited as a key barrier to entrepreneurialactivity (Fielden et al 2000) and Beta overcomes thisobstacle albeit with a limited level of initial capitalinvestment

Table 2 Future career intentions

Responses Very unlikely Unlikely Undecided Likely Very likely

How likely are you to continue with your business aftergraduation

0 0 1 (7) 6 (40) 8 (53)

How likely are you to set up another business aftergraduation

0 1 (7) 7 (47) 0 7 (47)

How likely are you to set up a business at some stagein the future

0 0 0 2 (13) 13 (87)

How likely are you to work for a small to medium-sizedenterprise after graduation

0 3 (20) 6 (40) 3 (20) 3 (20)

How likely are you to work for a large organization 3 (20) 3 (20) 5 (33) 4 (27) 0

How likely are you to take on a postgraduateprogramme after graduation

6 (40) 4 (27) 5 (33) 0 0

Note sample size N=15 percentages have been rounded to integers

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015414

The Beta programme recognizes the need to buildself-confidence and enterprise skills whilst allowing theparticipants to test and validate their business ideas Itwas apparent that the project allowed students toexperience both positive and negative emotionsNegative emotions (such as uncertaintydisappointment) arose when a business idea was judgednot to be viable following evaluation and reflection bythe participants and mentors (Cope 2003) On occasionparticipants experienced fear and trepidation at theprospect of having to present their idea to a panelalthough following the pitch all participants appreciatedthe experience and recognized its value in enhancing theidea and their own personal development Thesenegative experiences and emotions were just asimportant as the positive experiences because theyallowed the participants the opportunity to reflect andreconsider their actions (Shepherd 2003)

Beta also gave participants a chance to developsocial and formal networks with their peers andmentors The provision of experienced EiRs as businessmentors was recognized as a central tenet in theprogrammersquos success (as noted elsewhere see forexample Greene and Saridakis 2007 Matlay 2008Pickernell et al 2011) The EiRs offered regularprofessional advice and guidance that was used to shapethe studentsrsquo ideas from an early stage EiRs were aconstant presence for the participants throughout theproject and developed a strong and friendly relationshipbased on trust and understanding with each student

On completion of the programme the objective forparticipants is to create a legal fit-for-purpose entitywhich is ready to trade This is a realistic and justifiableproposition In terms of future development the Betaprogramme offers the potential of an intra-universityprocess of business start-up across and includingdifferent disciplines An expansion in its provisionthroughout the university would be a logical next step inits development In terms of future improvements theBeta team would like to create greater engagement withexternal business and crowdfunding networks Therewill be a need to expand the pool of mentors withrelevant expertise in the various disciplines to ensurethat growth across the university is successfullyachieved

ConclusionsThe initial pilot of the Beta project has provedsuccessful with positive feedback from the participantsAs noted above the Centre recognizes the need toembed the programme throughout the university Inaddition there is also a need to integrate the secondlevel of seed-corn funding into the scheme and to ensure

that the supporting entrepreneurs understand therequirements of the both the Centre and its applicants

In terms of best practice the authors recommend thefollowing main considerations

(1) A flexible learning environment should be providedwithin which experiential leaning creativity andinnovation can be effectively supported

(2) A standard classroom delivery should be avoidedbecause it will not produce the desired outcome

(3) Experienced mentors ideally in the form of EiRsshould be provided the mentors must be individualswho can support students effectively in thedevelopment of a viable business idea

(4) Initial seed-corn funding is critical in providing alsquoreal worldrsquo context for participants

(5) Participants must be encouraged to reflect evaluateand potentially rebuild their business idea at allstages of the process

In terms of implications for practice programmes suchas Beta offer a blueprint for entrepreneurship educationin HEIs University decision makers must understandthe importance of encouraging entrepreneurial activityin undergraduate programmes and providecross-university programmes such as Beta that enablein particular access to internal and external seed-cornfunding

The authors recognize that this research is limited toone university case study and the responses are drawnfrom a small cohort of students Generalizing the resultsmust therefore be treated with caution There is a needfor ongoing longitudinal research contrasting bestpractice from a range of universities In addition theissue of positive and negative emotions created bystart-up programmes also requires further examination

ReferencesAcs Z and Szerb S (2007) lsquoEntrepreneurship economic

growth and public policyrsquo Small Business Economics Vol 28No 2ndash3 pp 109ndash122

Albert P and Gaynor L (2006) lsquoTechnology businessincubation management lessons of experiencersquo inBernasconi M Harris S and Moensted M edsHigh-Tech Entrepreneurship Managing Innovation Varietyand Uncertainty Routledge London pp 131ndash143

Allen DN and McCluskey R (1990) lsquoStructure policyservices and performance in the business incubatorindustryrsquo Entrepreneurship Theory and Practice Vol 15 No2 pp 61ndash77

Andrews J and Higson H (2008) lsquoGraduate employabilitylsquolsquosoft skillsrsquorsquo versus lsquolsquohardrsquorsquo business knowledge a Europeanstudyrsquo Higher Education in Europe Vol 33 No 4pp 411ndash422

Atchison M and Gotlieb P (2004) lsquoInnovation and the futureof cooperative educationrsquo in Coll R and Eames C edsInternational Handbook for Cooperative Education AnInternational Perspective of the Theory Research and

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 415

Face-to-face personal interviews were preferred overother data collection methods because they enabled theinterviewers to probe and clarify answers (de Leeuw2005) The research instruments were designed to elicitresponses from all parties on the value experience andimpact of the Beta project The data were collated andanalysed by the research team and used to develop anunderstanding of the impact and effectiveness of theprogramme

A semi-structured research instrument wasdeveloped with a set of open-ended questions whichallowed the respondents to talk at length about thetopics (Johannessen et al 1999) These questions wereused as prompts for each interview ensuring novariation from the research focus (Poon and Swatman1999)

Applicants were contacted by e-mail and invited toparticipate in the study 15 of 18 programme applicantsagreed to do so Respondents completed the electronicsurvey and then undertook the semi-structuredinterview interviews were typically between40ndash60 minutes in duration (Maznevski and Chudoba2000) Staff and programme applicants wereinterviewed by a team of independent researchers notinvolved in the Beta programme to avoid the possibilityof respondent bias (Dillman 1978) On request Betaparticipant anonymity was protected by the use of acoding system and so managers of the Beta programmewere not able to link quotations to individualparticipants (Fox and Tracy 1986) The coding systemused coded individuals thus

bull Beta participants (BP AndashO)bull Academics (A1ndash3) andbull EiRs (1ndash3)

The research study also secured internal ethical approvalby submitting the research proposal which confirmedthat participation in the study was optional and that allrespondentsrsquo contributions were anonymized (Bell andBryman 2007) to the university research committeeTo improve the validity of the research each respondentwas provided with a transcript of their interview andasked to confirm and approve its content (MacLellan2001) The contents of all the interviews were thencompared and contrasted to identify key themesassociated with the study This involved a process of

data reduction display and conclusion drawing andverification (Miles and Huberman 1994)

Description of the Beta projectThe project involves a two-stage process During thefirst stage the Centre promotes the Beta project throughpresentations to student groups and invites applicants toattend an informal interview regarding the possibility ofentering the scheme Applications are welcomed fromgroups and individuals it is recognized that a viablebusiness entity could require a collective or team effortto increase the levels of knowledge and expertiseinvolved During the initial interview earlyconversations focus on the personal attributes of theapplicant(s) their interests and potential business ideasIf participants remain interested following the interviewthey can progress to the second stage at which the Betaprogramme takes students through the process ofdeveloping a concept and turning it into a viablebusiness venture Applicants complete an applicationform outlining their business idea and a timescale forimplementation

Beta allows students to develop their entrepreneurialskills in a supportive environment with one-to-onementoring and the opportunity to receive anon-repayable grant of up to pound1500 to kick-start theirbusiness idea The programme also offers severaltraining sessions with experts for example they have asession with an intellectual property expert a marketingexpert and a financial advisor to help refine their idea

Beta currently runs once a year and had 20 studentson the programme for the 2013ndash2014 academic year Akey strength of the programme is the supportiveno-strings environment it provides for students in whichto experiment and take lsquosafe risksrsquo Business ideas areexpected to be innovative and able to meet a marketneed In the Beta programme mistakes are not seen as asetback but rather as part of a process for teachingstudents how to learn and recover from failure andsetbacks

Process detail

Figure 2 illustrates the operational processes involved inthe Beta programme The students join the programmewith an initial idea this is then developed by the student

Figure 2 The Beta programme process

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015410

with advice from a mentor each student in the schemebeing allocated a mentor (typically an Entrepreneur inResidence) When ready the student is asked to pitchthe business idea to an Advisory Panel (made up ofinternal and external members of the EntrepreneurshipCentre) whose purpose is to evaluate the validity of theidea If the idea is considered viable the idea isapproved and the student is given access to the pound1500funding If the idea is not approved recommendationsare made for improvement and the student is asked toreconsider the idea The idea can be rejected outright atthis stage and the student asked to improve it orconsider an alternative

If funding is granted the student must use the moneyto create a valid business entity which is then launchedStudents then have an opportunity to bid for a secondequity investment (up to pound50000) to facilitate furtherdevelopment and growth of their business The processfor this second tranche of funding involves an interviewwith a potential business angel or provision of access tocrowdfunding

Beta pedagogyThe programme uses a cycle of ongoing reflectivelearning derived from the models of experientiallearning developed by Schoumln (1987) and Kolb (1984)The core of the learning strategy consists ofencouraging the development of the business idea basedon development of development creativity andcognition (Corbett 2005) The Beta programmeencourages innovation by requiring participants todevelop a viable idea which has the potential to becomea growing entity Non-growth lsquolifestylersquo typeapplications are not supported In addition enterprisesmust be seen to meet a business need rather thanproviding additional supply (for example a standardservice-sector business would be discouraged unlesssignificant justification is provided) Theseconsiderations will be identified on the applicantrsquosinitial application

Part of this process is the requirement for receivingcontinuous feedback from EiRsacademic staff in anon-classroom environment regarding the developmentof the idea The learning space in this instance was anEntrepreneurial Centre with a flexible learningenvironment Participants were also encouraged to sharetheir idea and invite feedback from their peer group thefeedback promotes self-reflection and encourages theacquisition of new information to enhance the businessidea The flexible learning space enabled bothone-to-one and one-to-many tutor sessions with a focuson the facilitation of learning and knowledge exchangeParticipants would meet regularly with their mentor and

develop elements of the business idea After eachmentoring session the participants were asked toconsider and reflect on the session and its implicationsfor their idea The entire project was underpinned by thecore principle of developing a personalized creativepractical and collaborative ethos

FindingsThe key themes investigated were key driversmotivations programme benefits challengesknowledge and skill development attitudinal impact andbusiness support requirements

Key drivers

The Academic Director of the Entrepreneurship Centrewas asked to explain the purpose of the Betaprogramme The Director responded thus

lsquoThe purpose of Centre is to stimulatesocio-economic growth It is a hybrid structure ofacademia and business We aim for a seamlessstrategy towards socio-economic growth The Betaprogramme is a key enabler to closing the gapbetween academia and businessrsquo

Thus the key purpose of the Beta programme was tobridge the gap between academia and business andprovide an enabling system to allow students toundertake a business start-up within the universityinfrastructure

Motivations

Respondents were asked to identify their motivationsfor undertaking the Beta programme In descendingorder these were

bull To increase their chance of starting a business(67)

bull Gaining financial support (60)bull To have individual mentoring (60)bull To increase business knowledge (53) andbull To increase entrepreneurial skills (53)

It was thus apparent that the cohort was motivated toundertake the programme by the opportunities offered toboost their entrepreneurial competencies with the addedbenefit of acquiring seed-corn funding Individualmentoring support was also identified as an importantdriver in undertaking the programme

Benefits

The participants were asked what they had foundbeneficial in the programme In particular responseswere noted about the central role of the EiR and

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 411

provision of specific advice in intellectual property andbusiness insurance Representative comments were

lsquoReceiving the funding to help support our businessrsquo(Beta Participant A)

lsquoThe personalized help and support given but alsothe friendliness of the staff as encouragement toproceed forwardsrsquo (BP C) and

lsquo I feel that I have developed a lot of confidence inmy business idea as I came to the programme veryhesitant and shy to talk about my idearsquo (BP H)

The provision of funding was identified as of criticalimportance as were the individual support and adviceprovided by EIRs to build confidence and develop aviable business idea All the respondents recognized theimportance of the individual mentoring support they hadbeen offered which had built their confidence andself-belief EiRs commented

lsquoActing as a mentor to the students is extremelyrewarding I feel I benefit from their enthusiasm andthey benefit from my experiencersquo (EiR 1) and

lsquoI fill in the gaps a little there are things which theydo not consider and my knowledge helps them toproduce a more rounded business planrsquo (EiR 2)

Challenges

The respondents were asked to identify the challengingelements of the Beta programme Respondentsmentioned in particular their initial nervousness aboutgoing through the process of pitching their idea to apanel of Beta staff and the need to balance theextra-curricular Beta programme with their course ofstudy Typical comments were as follows

lsquoI think the most challenging part of the programmehas been overcoming my lack of confidence inmyself and my idea as it is pretty daunting startingup your own business Itrsquos never really beensomething I have seen myself doing But of courseIrsquom not as scared as I was I feel a lot more confidentdue to working with the EiR as he encouraged me tosee my idea from a different point of view instead ofme being critical he allowed me to see the fun sideto it again which was greatrsquo (BP N)

lsquoThe pitch very nerve-rackingrsquo (BP I)

lsquoWorking it around university and othercommitmentsrsquo (BP E)

The problem of nervousness is perhaps understandableThe participantrsquos emotional state was apparent inseveral comments and it was noticeable that Beta hadinitiated both positive and negative emotions This wasrecognized by the academic team who commented

lsquoWe recognized early on that we had to strike thebalance in challenging the participants to defend theiridea whilst providing a supportive and friendlyenvironmentrsquo (Academic B)

The Beta team did provide a supportive but professionalenvironment to enable the participants to reflect andevaluate their idea effectively The academic team andEiRs were known on a first-name basis by Betaparticipants although the relationship remainedrespectful and supportive throughout For their partstudents were prepared to undertake a business start-upactivity as an extra-curricular activity because theyappreciated the benefits the process would provide

Participants were also asked if any part of the Betaprogramme had resulted in a negative impact on settingup a business Fourteen said that this was not the casethere was one response otherwise

lsquoWhen I found out my first business idea was notlogistical [sic] and financially viable I lost allmotivation but with a new idea I liked I was back ontrackrsquo (BP N)

This statement identifies both the positive and negativepotential impacts of the Beta programme Theindividual concerned found that their idea was notfeasible this is an essential purpose of the programmein that it provides a safe environment in which toevaluate an idea In this case the student involved wasable to develop a fresh idea

Knowledge and skill development

The participants were asked to consider how theprogramme had affected the development of theirknowledge and skills using a five-point Likert-stylescale Table 1 presents the full data and the followingsummarizes the key findings

The students considered that the programme hadhelped them significantly in identifying opportunitieswith 13 (87) either agreeing or strongly agreeing withthe notion It is useful here to recall that as part of theBeta programme students were expected to undertake afeasibility analysis of a business idea and to progresswith valid ideas only

Some two-thirds of the students lsquostrongly agreedrsquo orlsquoagreedrsquo that the Beta programme had developed theircapacity to adopt innovative approaches and enhanced

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015412

their problem-solving capabilities The EiRs andacademic staff encouraged Beta participants to seekunique and innovative solutions that would createeconomically sustainable business start-ups

Participants were asked whether the programme hadhelped to build their resilience and ability to overcomechallenges again the results were positive with 12(80) recording lsquostrongly agreersquo or lsquoagreedrsquo

The next aspect considered was whether theprogramme had helped to develop their ability to limitand manage risk The results were positive with 10(67) in agreement and two (13) strongly agreeing

Respondents were asked to identify whether thecourse had helped them to evaluate issues and makedecisions The responses were positive with 10 (67)in agreement and two (13) strongly agreeing Withregard to the encouragement students had received todevelop networks with peers and external contacts usingthe Entrepreneurial Society and social media it wasapparent that the students had done so with 14 of the 15(93) answering positively

Reflection is a strong element of the Betaprogramme participants are required in particular toconsider the viability of their ideas 12 (80) agreedthat there was sufficient time to reflect generally on theirenterprising skills

Responses were less favourable when studentswere asked whether the programme had providedopportunities for collaborative working The majority ofideas in the first cohort were individual and so only four(26) agreed or strongly agreed with this and six (40)disagreed or strongly disagreed

When they were asked if the programme had helpedthem to develop their business idea 100 answeredfavourably a strong endorsement for the value of theprogramme

Participants were asked to indicate whether theprogramme had enhanced their understanding of thefinancial and legal implications of their businessproposal The responses were highly supportive with 13(86) agreeing or strongly agreeing

Equally 13 (86) thought that the programme hadhelped them to identify their target markets 14 (93)that it helped them to articulate their business ideas and14 (93) that it helped build their confidence Finally14 (93) agreed with the notion that the programmehad enabled them to understand what it took to start abusiness Overall 93 of students answeredfavourably with only one (7) negative responsesuggesting that the Beta programme was fit for purposeand enabled the participants to develop viable businessideas

Table 1 Skills and competencies developed

Question Stronglydisagree

Disagree Neitheragree nordisagree

Agree Stronglyagree

Developed your ability in identifying opportunities 0 0 2 (13) 6 (40) 7 (47)

Developed your capacity to take innovativeapproaches

0 1 (7) 4 (27) 2 (13) 8 (53)

Built your resilience and ability to overcomechallenges

0 0 3 (20) 5 (33) 7 (47)

Developed your ability to limit and manage risk 0 0 3 (20) 10 (67) 2 (13)

Helped you to evaluate issues and make decisions 0 1 (7) 3 (20) 10 (67) 2 (13)

Helped build your networks 0 1 (7) 0 8 (53) 6 (40)

Allowed you time to reflect on your enterprising skills 0 2 (13) 1 (7) 5 (33) 7 (47)

Developed opportunities for collaborative working 3 (20) 3 (20) 5 (33) 2 (13) 2 (13)

Helped you to develop your business idea 0 0 0 3 (20) 12 (80)

Helped you to recognize financial and legal implicationson a business proposal

0 0 2 (13) 5 (33) 8 (53)

Identify target markets 0 1 (7) 4 (27) 5 (33) 5 (33)

Helped you articulate your business ideas 0 0 1 (7) 6 (40) 8 (53)

Built your confidence to start a business 0 0 1 (7) 4 (27) 10 (67)

Understand what it takes to start your own business 0 0 1 (7) 8 (53) 6 (40)

Note sample size N=15 percentages have been rounded to integers

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 413

Self-employability intentions

The respondents were asked to identify whether theyrequired any further support for developing theirbusiness Overall 13 (87) said that they did notrequire any further support but two respondents felt theneed for further help

lsquoFurther financial and legal advice I need moreknowledge on how to set up partnerships legalaspectsrsquo (BP B)

lsquoThere will always be need for continuous supportrsquo(BP C)

Career intentions

Perhaps the most important question in a study such asthis is deals with the attitudes to an entrepreneurialcareer the results for this programme are presented inTable 2 As can be seen these responses based on afive-point Likert-style scale are generally favourablewith 14 of the 15 (93) indicating that they were likelyor very likely to continue with their business post-graduation and 13 (87) suggesting it was very likelythat they would look to set up a business at some stagein the future Equally only four (27) suggested thatthey would be likely to work for a large organizationand none of the cohort wanted to undertakepostgraduate study because they were more interested inthe prospect of an entrepreneurial career These resultssuggest that the programme achieved its stated aim ofpreparing students for an entrepreneurial career

DiscussionThis study responds to the calls for further research ingraduate entrepreneurship from Nabi et al (2006) and

Holden et al (2007) The increase in the number ofentrepreneurship education programmes has been drivenby policy makers and economic necessity howeverthere is a real need to confirm and exchange bestpractice to facilitate business start-ups This is the focusof this study and we believe its key contribution to thetopic

Overall the Beta programme can be judged assuccessful in enabling students to evaluate test andgrow their nascent ideas into viable business start-ups(Albert and Gaynor 2006) All the responses collectedregarding the various measures suggest that Beta had apositive impact on attitudes and skills Programmeparticipants were motivated to join Beta because of theattraction of starting a business obtaining start-upcapital accessing mentors and improving theirentrepreneurial competencies

In essence the Beta project is an amalgam of theconcepts regarding pre-incubators and businesscompetitions discussed in the literature consideredabove and elsewhere (Voisey et al 2013) The keyelements identified in Jones and Jones (2011) theprovision of dedicated staff (Stephens and Onofrei2012) and launch capital business mentors andspecialist advice (Allen and McCluskey 1990) are allcentral to the Beta programme

The provision of seed-corn funding to graduateentrepreneurs is critical in providing a real worldcontext and motivation for participation (Huffman andQuigley 2002 Kirby 2006) All Beta participantswelcomed this aspect and cited it as a contributoryfactor regarding their participation Lack of finance haspreviously been cited as a key barrier to entrepreneurialactivity (Fielden et al 2000) and Beta overcomes thisobstacle albeit with a limited level of initial capitalinvestment

Table 2 Future career intentions

Responses Very unlikely Unlikely Undecided Likely Very likely

How likely are you to continue with your business aftergraduation

0 0 1 (7) 6 (40) 8 (53)

How likely are you to set up another business aftergraduation

0 1 (7) 7 (47) 0 7 (47)

How likely are you to set up a business at some stagein the future

0 0 0 2 (13) 13 (87)

How likely are you to work for a small to medium-sizedenterprise after graduation

0 3 (20) 6 (40) 3 (20) 3 (20)

How likely are you to work for a large organization 3 (20) 3 (20) 5 (33) 4 (27) 0

How likely are you to take on a postgraduateprogramme after graduation

6 (40) 4 (27) 5 (33) 0 0

Note sample size N=15 percentages have been rounded to integers

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015414

The Beta programme recognizes the need to buildself-confidence and enterprise skills whilst allowing theparticipants to test and validate their business ideas Itwas apparent that the project allowed students toexperience both positive and negative emotionsNegative emotions (such as uncertaintydisappointment) arose when a business idea was judgednot to be viable following evaluation and reflection bythe participants and mentors (Cope 2003) On occasionparticipants experienced fear and trepidation at theprospect of having to present their idea to a panelalthough following the pitch all participants appreciatedthe experience and recognized its value in enhancing theidea and their own personal development Thesenegative experiences and emotions were just asimportant as the positive experiences because theyallowed the participants the opportunity to reflect andreconsider their actions (Shepherd 2003)

Beta also gave participants a chance to developsocial and formal networks with their peers andmentors The provision of experienced EiRs as businessmentors was recognized as a central tenet in theprogrammersquos success (as noted elsewhere see forexample Greene and Saridakis 2007 Matlay 2008Pickernell et al 2011) The EiRs offered regularprofessional advice and guidance that was used to shapethe studentsrsquo ideas from an early stage EiRs were aconstant presence for the participants throughout theproject and developed a strong and friendly relationshipbased on trust and understanding with each student

On completion of the programme the objective forparticipants is to create a legal fit-for-purpose entitywhich is ready to trade This is a realistic and justifiableproposition In terms of future development the Betaprogramme offers the potential of an intra-universityprocess of business start-up across and includingdifferent disciplines An expansion in its provisionthroughout the university would be a logical next step inits development In terms of future improvements theBeta team would like to create greater engagement withexternal business and crowdfunding networks Therewill be a need to expand the pool of mentors withrelevant expertise in the various disciplines to ensurethat growth across the university is successfullyachieved

ConclusionsThe initial pilot of the Beta project has provedsuccessful with positive feedback from the participantsAs noted above the Centre recognizes the need toembed the programme throughout the university Inaddition there is also a need to integrate the secondlevel of seed-corn funding into the scheme and to ensure

that the supporting entrepreneurs understand therequirements of the both the Centre and its applicants

In terms of best practice the authors recommend thefollowing main considerations

(1) A flexible learning environment should be providedwithin which experiential leaning creativity andinnovation can be effectively supported

(2) A standard classroom delivery should be avoidedbecause it will not produce the desired outcome

(3) Experienced mentors ideally in the form of EiRsshould be provided the mentors must be individualswho can support students effectively in thedevelopment of a viable business idea

(4) Initial seed-corn funding is critical in providing alsquoreal worldrsquo context for participants

(5) Participants must be encouraged to reflect evaluateand potentially rebuild their business idea at allstages of the process

In terms of implications for practice programmes suchas Beta offer a blueprint for entrepreneurship educationin HEIs University decision makers must understandthe importance of encouraging entrepreneurial activityin undergraduate programmes and providecross-university programmes such as Beta that enablein particular access to internal and external seed-cornfunding

The authors recognize that this research is limited toone university case study and the responses are drawnfrom a small cohort of students Generalizing the resultsmust therefore be treated with caution There is a needfor ongoing longitudinal research contrasting bestpractice from a range of universities In addition theissue of positive and negative emotions created bystart-up programmes also requires further examination

ReferencesAcs Z and Szerb S (2007) lsquoEntrepreneurship economic

growth and public policyrsquo Small Business Economics Vol 28No 2ndash3 pp 109ndash122

Albert P and Gaynor L (2006) lsquoTechnology businessincubation management lessons of experiencersquo inBernasconi M Harris S and Moensted M edsHigh-Tech Entrepreneurship Managing Innovation Varietyand Uncertainty Routledge London pp 131ndash143

Allen DN and McCluskey R (1990) lsquoStructure policyservices and performance in the business incubatorindustryrsquo Entrepreneurship Theory and Practice Vol 15 No2 pp 61ndash77

Andrews J and Higson H (2008) lsquoGraduate employabilitylsquolsquosoft skillsrsquorsquo versus lsquolsquohardrsquorsquo business knowledge a Europeanstudyrsquo Higher Education in Europe Vol 33 No 4pp 411ndash422

Atchison M and Gotlieb P (2004) lsquoInnovation and the futureof cooperative educationrsquo in Coll R and Eames C edsInternational Handbook for Cooperative Education AnInternational Perspective of the Theory Research and

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 415

with advice from a mentor each student in the schemebeing allocated a mentor (typically an Entrepreneur inResidence) When ready the student is asked to pitchthe business idea to an Advisory Panel (made up ofinternal and external members of the EntrepreneurshipCentre) whose purpose is to evaluate the validity of theidea If the idea is considered viable the idea isapproved and the student is given access to the pound1500funding If the idea is not approved recommendationsare made for improvement and the student is asked toreconsider the idea The idea can be rejected outright atthis stage and the student asked to improve it orconsider an alternative

If funding is granted the student must use the moneyto create a valid business entity which is then launchedStudents then have an opportunity to bid for a secondequity investment (up to pound50000) to facilitate furtherdevelopment and growth of their business The processfor this second tranche of funding involves an interviewwith a potential business angel or provision of access tocrowdfunding

Beta pedagogyThe programme uses a cycle of ongoing reflectivelearning derived from the models of experientiallearning developed by Schoumln (1987) and Kolb (1984)The core of the learning strategy consists ofencouraging the development of the business idea basedon development of development creativity andcognition (Corbett 2005) The Beta programmeencourages innovation by requiring participants todevelop a viable idea which has the potential to becomea growing entity Non-growth lsquolifestylersquo typeapplications are not supported In addition enterprisesmust be seen to meet a business need rather thanproviding additional supply (for example a standardservice-sector business would be discouraged unlesssignificant justification is provided) Theseconsiderations will be identified on the applicantrsquosinitial application

Part of this process is the requirement for receivingcontinuous feedback from EiRsacademic staff in anon-classroom environment regarding the developmentof the idea The learning space in this instance was anEntrepreneurial Centre with a flexible learningenvironment Participants were also encouraged to sharetheir idea and invite feedback from their peer group thefeedback promotes self-reflection and encourages theacquisition of new information to enhance the businessidea The flexible learning space enabled bothone-to-one and one-to-many tutor sessions with a focuson the facilitation of learning and knowledge exchangeParticipants would meet regularly with their mentor and

develop elements of the business idea After eachmentoring session the participants were asked toconsider and reflect on the session and its implicationsfor their idea The entire project was underpinned by thecore principle of developing a personalized creativepractical and collaborative ethos

FindingsThe key themes investigated were key driversmotivations programme benefits challengesknowledge and skill development attitudinal impact andbusiness support requirements

Key drivers

The Academic Director of the Entrepreneurship Centrewas asked to explain the purpose of the Betaprogramme The Director responded thus

lsquoThe purpose of Centre is to stimulatesocio-economic growth It is a hybrid structure ofacademia and business We aim for a seamlessstrategy towards socio-economic growth The Betaprogramme is a key enabler to closing the gapbetween academia and businessrsquo

Thus the key purpose of the Beta programme was tobridge the gap between academia and business andprovide an enabling system to allow students toundertake a business start-up within the universityinfrastructure

Motivations

Respondents were asked to identify their motivationsfor undertaking the Beta programme In descendingorder these were

bull To increase their chance of starting a business(67)

bull Gaining financial support (60)bull To have individual mentoring (60)bull To increase business knowledge (53) andbull To increase entrepreneurial skills (53)

It was thus apparent that the cohort was motivated toundertake the programme by the opportunities offered toboost their entrepreneurial competencies with the addedbenefit of acquiring seed-corn funding Individualmentoring support was also identified as an importantdriver in undertaking the programme

Benefits

The participants were asked what they had foundbeneficial in the programme In particular responseswere noted about the central role of the EiR and

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 411

provision of specific advice in intellectual property andbusiness insurance Representative comments were

lsquoReceiving the funding to help support our businessrsquo(Beta Participant A)

lsquoThe personalized help and support given but alsothe friendliness of the staff as encouragement toproceed forwardsrsquo (BP C) and

lsquo I feel that I have developed a lot of confidence inmy business idea as I came to the programme veryhesitant and shy to talk about my idearsquo (BP H)

The provision of funding was identified as of criticalimportance as were the individual support and adviceprovided by EIRs to build confidence and develop aviable business idea All the respondents recognized theimportance of the individual mentoring support they hadbeen offered which had built their confidence andself-belief EiRs commented

lsquoActing as a mentor to the students is extremelyrewarding I feel I benefit from their enthusiasm andthey benefit from my experiencersquo (EiR 1) and

lsquoI fill in the gaps a little there are things which theydo not consider and my knowledge helps them toproduce a more rounded business planrsquo (EiR 2)

Challenges

The respondents were asked to identify the challengingelements of the Beta programme Respondentsmentioned in particular their initial nervousness aboutgoing through the process of pitching their idea to apanel of Beta staff and the need to balance theextra-curricular Beta programme with their course ofstudy Typical comments were as follows

lsquoI think the most challenging part of the programmehas been overcoming my lack of confidence inmyself and my idea as it is pretty daunting startingup your own business Itrsquos never really beensomething I have seen myself doing But of courseIrsquom not as scared as I was I feel a lot more confidentdue to working with the EiR as he encouraged me tosee my idea from a different point of view instead ofme being critical he allowed me to see the fun sideto it again which was greatrsquo (BP N)

lsquoThe pitch very nerve-rackingrsquo (BP I)

lsquoWorking it around university and othercommitmentsrsquo (BP E)

The problem of nervousness is perhaps understandableThe participantrsquos emotional state was apparent inseveral comments and it was noticeable that Beta hadinitiated both positive and negative emotions This wasrecognized by the academic team who commented

lsquoWe recognized early on that we had to strike thebalance in challenging the participants to defend theiridea whilst providing a supportive and friendlyenvironmentrsquo (Academic B)

The Beta team did provide a supportive but professionalenvironment to enable the participants to reflect andevaluate their idea effectively The academic team andEiRs were known on a first-name basis by Betaparticipants although the relationship remainedrespectful and supportive throughout For their partstudents were prepared to undertake a business start-upactivity as an extra-curricular activity because theyappreciated the benefits the process would provide

Participants were also asked if any part of the Betaprogramme had resulted in a negative impact on settingup a business Fourteen said that this was not the casethere was one response otherwise

lsquoWhen I found out my first business idea was notlogistical [sic] and financially viable I lost allmotivation but with a new idea I liked I was back ontrackrsquo (BP N)

This statement identifies both the positive and negativepotential impacts of the Beta programme Theindividual concerned found that their idea was notfeasible this is an essential purpose of the programmein that it provides a safe environment in which toevaluate an idea In this case the student involved wasable to develop a fresh idea

Knowledge and skill development

The participants were asked to consider how theprogramme had affected the development of theirknowledge and skills using a five-point Likert-stylescale Table 1 presents the full data and the followingsummarizes the key findings

The students considered that the programme hadhelped them significantly in identifying opportunitieswith 13 (87) either agreeing or strongly agreeing withthe notion It is useful here to recall that as part of theBeta programme students were expected to undertake afeasibility analysis of a business idea and to progresswith valid ideas only

Some two-thirds of the students lsquostrongly agreedrsquo orlsquoagreedrsquo that the Beta programme had developed theircapacity to adopt innovative approaches and enhanced

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015412

their problem-solving capabilities The EiRs andacademic staff encouraged Beta participants to seekunique and innovative solutions that would createeconomically sustainable business start-ups

Participants were asked whether the programme hadhelped to build their resilience and ability to overcomechallenges again the results were positive with 12(80) recording lsquostrongly agreersquo or lsquoagreedrsquo

The next aspect considered was whether theprogramme had helped to develop their ability to limitand manage risk The results were positive with 10(67) in agreement and two (13) strongly agreeing

Respondents were asked to identify whether thecourse had helped them to evaluate issues and makedecisions The responses were positive with 10 (67)in agreement and two (13) strongly agreeing Withregard to the encouragement students had received todevelop networks with peers and external contacts usingthe Entrepreneurial Society and social media it wasapparent that the students had done so with 14 of the 15(93) answering positively

Reflection is a strong element of the Betaprogramme participants are required in particular toconsider the viability of their ideas 12 (80) agreedthat there was sufficient time to reflect generally on theirenterprising skills

Responses were less favourable when studentswere asked whether the programme had providedopportunities for collaborative working The majority ofideas in the first cohort were individual and so only four(26) agreed or strongly agreed with this and six (40)disagreed or strongly disagreed

When they were asked if the programme had helpedthem to develop their business idea 100 answeredfavourably a strong endorsement for the value of theprogramme

Participants were asked to indicate whether theprogramme had enhanced their understanding of thefinancial and legal implications of their businessproposal The responses were highly supportive with 13(86) agreeing or strongly agreeing

Equally 13 (86) thought that the programme hadhelped them to identify their target markets 14 (93)that it helped them to articulate their business ideas and14 (93) that it helped build their confidence Finally14 (93) agreed with the notion that the programmehad enabled them to understand what it took to start abusiness Overall 93 of students answeredfavourably with only one (7) negative responsesuggesting that the Beta programme was fit for purposeand enabled the participants to develop viable businessideas

Table 1 Skills and competencies developed

Question Stronglydisagree

Disagree Neitheragree nordisagree

Agree Stronglyagree

Developed your ability in identifying opportunities 0 0 2 (13) 6 (40) 7 (47)

Developed your capacity to take innovativeapproaches

0 1 (7) 4 (27) 2 (13) 8 (53)

Built your resilience and ability to overcomechallenges

0 0 3 (20) 5 (33) 7 (47)

Developed your ability to limit and manage risk 0 0 3 (20) 10 (67) 2 (13)

Helped you to evaluate issues and make decisions 0 1 (7) 3 (20) 10 (67) 2 (13)

Helped build your networks 0 1 (7) 0 8 (53) 6 (40)

Allowed you time to reflect on your enterprising skills 0 2 (13) 1 (7) 5 (33) 7 (47)

Developed opportunities for collaborative working 3 (20) 3 (20) 5 (33) 2 (13) 2 (13)

Helped you to develop your business idea 0 0 0 3 (20) 12 (80)

Helped you to recognize financial and legal implicationson a business proposal

0 0 2 (13) 5 (33) 8 (53)

Identify target markets 0 1 (7) 4 (27) 5 (33) 5 (33)

Helped you articulate your business ideas 0 0 1 (7) 6 (40) 8 (53)

Built your confidence to start a business 0 0 1 (7) 4 (27) 10 (67)

Understand what it takes to start your own business 0 0 1 (7) 8 (53) 6 (40)

Note sample size N=15 percentages have been rounded to integers

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 413

Self-employability intentions

The respondents were asked to identify whether theyrequired any further support for developing theirbusiness Overall 13 (87) said that they did notrequire any further support but two respondents felt theneed for further help

lsquoFurther financial and legal advice I need moreknowledge on how to set up partnerships legalaspectsrsquo (BP B)

lsquoThere will always be need for continuous supportrsquo(BP C)

Career intentions

Perhaps the most important question in a study such asthis is deals with the attitudes to an entrepreneurialcareer the results for this programme are presented inTable 2 As can be seen these responses based on afive-point Likert-style scale are generally favourablewith 14 of the 15 (93) indicating that they were likelyor very likely to continue with their business post-graduation and 13 (87) suggesting it was very likelythat they would look to set up a business at some stagein the future Equally only four (27) suggested thatthey would be likely to work for a large organizationand none of the cohort wanted to undertakepostgraduate study because they were more interested inthe prospect of an entrepreneurial career These resultssuggest that the programme achieved its stated aim ofpreparing students for an entrepreneurial career

DiscussionThis study responds to the calls for further research ingraduate entrepreneurship from Nabi et al (2006) and

Holden et al (2007) The increase in the number ofentrepreneurship education programmes has been drivenby policy makers and economic necessity howeverthere is a real need to confirm and exchange bestpractice to facilitate business start-ups This is the focusof this study and we believe its key contribution to thetopic

Overall the Beta programme can be judged assuccessful in enabling students to evaluate test andgrow their nascent ideas into viable business start-ups(Albert and Gaynor 2006) All the responses collectedregarding the various measures suggest that Beta had apositive impact on attitudes and skills Programmeparticipants were motivated to join Beta because of theattraction of starting a business obtaining start-upcapital accessing mentors and improving theirentrepreneurial competencies

In essence the Beta project is an amalgam of theconcepts regarding pre-incubators and businesscompetitions discussed in the literature consideredabove and elsewhere (Voisey et al 2013) The keyelements identified in Jones and Jones (2011) theprovision of dedicated staff (Stephens and Onofrei2012) and launch capital business mentors andspecialist advice (Allen and McCluskey 1990) are allcentral to the Beta programme

The provision of seed-corn funding to graduateentrepreneurs is critical in providing a real worldcontext and motivation for participation (Huffman andQuigley 2002 Kirby 2006) All Beta participantswelcomed this aspect and cited it as a contributoryfactor regarding their participation Lack of finance haspreviously been cited as a key barrier to entrepreneurialactivity (Fielden et al 2000) and Beta overcomes thisobstacle albeit with a limited level of initial capitalinvestment

Table 2 Future career intentions

Responses Very unlikely Unlikely Undecided Likely Very likely

How likely are you to continue with your business aftergraduation

0 0 1 (7) 6 (40) 8 (53)

How likely are you to set up another business aftergraduation

0 1 (7) 7 (47) 0 7 (47)

How likely are you to set up a business at some stagein the future

0 0 0 2 (13) 13 (87)

How likely are you to work for a small to medium-sizedenterprise after graduation

0 3 (20) 6 (40) 3 (20) 3 (20)

How likely are you to work for a large organization 3 (20) 3 (20) 5 (33) 4 (27) 0

How likely are you to take on a postgraduateprogramme after graduation

6 (40) 4 (27) 5 (33) 0 0

Note sample size N=15 percentages have been rounded to integers

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015414

The Beta programme recognizes the need to buildself-confidence and enterprise skills whilst allowing theparticipants to test and validate their business ideas Itwas apparent that the project allowed students toexperience both positive and negative emotionsNegative emotions (such as uncertaintydisappointment) arose when a business idea was judgednot to be viable following evaluation and reflection bythe participants and mentors (Cope 2003) On occasionparticipants experienced fear and trepidation at theprospect of having to present their idea to a panelalthough following the pitch all participants appreciatedthe experience and recognized its value in enhancing theidea and their own personal development Thesenegative experiences and emotions were just asimportant as the positive experiences because theyallowed the participants the opportunity to reflect andreconsider their actions (Shepherd 2003)

Beta also gave participants a chance to developsocial and formal networks with their peers andmentors The provision of experienced EiRs as businessmentors was recognized as a central tenet in theprogrammersquos success (as noted elsewhere see forexample Greene and Saridakis 2007 Matlay 2008Pickernell et al 2011) The EiRs offered regularprofessional advice and guidance that was used to shapethe studentsrsquo ideas from an early stage EiRs were aconstant presence for the participants throughout theproject and developed a strong and friendly relationshipbased on trust and understanding with each student

On completion of the programme the objective forparticipants is to create a legal fit-for-purpose entitywhich is ready to trade This is a realistic and justifiableproposition In terms of future development the Betaprogramme offers the potential of an intra-universityprocess of business start-up across and includingdifferent disciplines An expansion in its provisionthroughout the university would be a logical next step inits development In terms of future improvements theBeta team would like to create greater engagement withexternal business and crowdfunding networks Therewill be a need to expand the pool of mentors withrelevant expertise in the various disciplines to ensurethat growth across the university is successfullyachieved

ConclusionsThe initial pilot of the Beta project has provedsuccessful with positive feedback from the participantsAs noted above the Centre recognizes the need toembed the programme throughout the university Inaddition there is also a need to integrate the secondlevel of seed-corn funding into the scheme and to ensure

that the supporting entrepreneurs understand therequirements of the both the Centre and its applicants

In terms of best practice the authors recommend thefollowing main considerations

(1) A flexible learning environment should be providedwithin which experiential leaning creativity andinnovation can be effectively supported

(2) A standard classroom delivery should be avoidedbecause it will not produce the desired outcome

(3) Experienced mentors ideally in the form of EiRsshould be provided the mentors must be individualswho can support students effectively in thedevelopment of a viable business idea

(4) Initial seed-corn funding is critical in providing alsquoreal worldrsquo context for participants

(5) Participants must be encouraged to reflect evaluateand potentially rebuild their business idea at allstages of the process

In terms of implications for practice programmes suchas Beta offer a blueprint for entrepreneurship educationin HEIs University decision makers must understandthe importance of encouraging entrepreneurial activityin undergraduate programmes and providecross-university programmes such as Beta that enablein particular access to internal and external seed-cornfunding

The authors recognize that this research is limited toone university case study and the responses are drawnfrom a small cohort of students Generalizing the resultsmust therefore be treated with caution There is a needfor ongoing longitudinal research contrasting bestpractice from a range of universities In addition theissue of positive and negative emotions created bystart-up programmes also requires further examination

ReferencesAcs Z and Szerb S (2007) lsquoEntrepreneurship economic

growth and public policyrsquo Small Business Economics Vol 28No 2ndash3 pp 109ndash122

Albert P and Gaynor L (2006) lsquoTechnology businessincubation management lessons of experiencersquo inBernasconi M Harris S and Moensted M edsHigh-Tech Entrepreneurship Managing Innovation Varietyand Uncertainty Routledge London pp 131ndash143

Allen DN and McCluskey R (1990) lsquoStructure policyservices and performance in the business incubatorindustryrsquo Entrepreneurship Theory and Practice Vol 15 No2 pp 61ndash77

Andrews J and Higson H (2008) lsquoGraduate employabilitylsquolsquosoft skillsrsquorsquo versus lsquolsquohardrsquorsquo business knowledge a Europeanstudyrsquo Higher Education in Europe Vol 33 No 4pp 411ndash422

Atchison M and Gotlieb P (2004) lsquoInnovation and the futureof cooperative educationrsquo in Coll R and Eames C edsInternational Handbook for Cooperative Education AnInternational Perspective of the Theory Research and

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 415

provision of specific advice in intellectual property andbusiness insurance Representative comments were

lsquoReceiving the funding to help support our businessrsquo(Beta Participant A)

lsquoThe personalized help and support given but alsothe friendliness of the staff as encouragement toproceed forwardsrsquo (BP C) and

lsquo I feel that I have developed a lot of confidence inmy business idea as I came to the programme veryhesitant and shy to talk about my idearsquo (BP H)

The provision of funding was identified as of criticalimportance as were the individual support and adviceprovided by EIRs to build confidence and develop aviable business idea All the respondents recognized theimportance of the individual mentoring support they hadbeen offered which had built their confidence andself-belief EiRs commented

lsquoActing as a mentor to the students is extremelyrewarding I feel I benefit from their enthusiasm andthey benefit from my experiencersquo (EiR 1) and

lsquoI fill in the gaps a little there are things which theydo not consider and my knowledge helps them toproduce a more rounded business planrsquo (EiR 2)

Challenges

The respondents were asked to identify the challengingelements of the Beta programme Respondentsmentioned in particular their initial nervousness aboutgoing through the process of pitching their idea to apanel of Beta staff and the need to balance theextra-curricular Beta programme with their course ofstudy Typical comments were as follows

lsquoI think the most challenging part of the programmehas been overcoming my lack of confidence inmyself and my idea as it is pretty daunting startingup your own business Itrsquos never really beensomething I have seen myself doing But of courseIrsquom not as scared as I was I feel a lot more confidentdue to working with the EiR as he encouraged me tosee my idea from a different point of view instead ofme being critical he allowed me to see the fun sideto it again which was greatrsquo (BP N)

lsquoThe pitch very nerve-rackingrsquo (BP I)

lsquoWorking it around university and othercommitmentsrsquo (BP E)

The problem of nervousness is perhaps understandableThe participantrsquos emotional state was apparent inseveral comments and it was noticeable that Beta hadinitiated both positive and negative emotions This wasrecognized by the academic team who commented

lsquoWe recognized early on that we had to strike thebalance in challenging the participants to defend theiridea whilst providing a supportive and friendlyenvironmentrsquo (Academic B)

The Beta team did provide a supportive but professionalenvironment to enable the participants to reflect andevaluate their idea effectively The academic team andEiRs were known on a first-name basis by Betaparticipants although the relationship remainedrespectful and supportive throughout For their partstudents were prepared to undertake a business start-upactivity as an extra-curricular activity because theyappreciated the benefits the process would provide

Participants were also asked if any part of the Betaprogramme had resulted in a negative impact on settingup a business Fourteen said that this was not the casethere was one response otherwise

lsquoWhen I found out my first business idea was notlogistical [sic] and financially viable I lost allmotivation but with a new idea I liked I was back ontrackrsquo (BP N)

This statement identifies both the positive and negativepotential impacts of the Beta programme Theindividual concerned found that their idea was notfeasible this is an essential purpose of the programmein that it provides a safe environment in which toevaluate an idea In this case the student involved wasable to develop a fresh idea

Knowledge and skill development

The participants were asked to consider how theprogramme had affected the development of theirknowledge and skills using a five-point Likert-stylescale Table 1 presents the full data and the followingsummarizes the key findings

The students considered that the programme hadhelped them significantly in identifying opportunitieswith 13 (87) either agreeing or strongly agreeing withthe notion It is useful here to recall that as part of theBeta programme students were expected to undertake afeasibility analysis of a business idea and to progresswith valid ideas only

Some two-thirds of the students lsquostrongly agreedrsquo orlsquoagreedrsquo that the Beta programme had developed theircapacity to adopt innovative approaches and enhanced

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015412

their problem-solving capabilities The EiRs andacademic staff encouraged Beta participants to seekunique and innovative solutions that would createeconomically sustainable business start-ups

Participants were asked whether the programme hadhelped to build their resilience and ability to overcomechallenges again the results were positive with 12(80) recording lsquostrongly agreersquo or lsquoagreedrsquo

The next aspect considered was whether theprogramme had helped to develop their ability to limitand manage risk The results were positive with 10(67) in agreement and two (13) strongly agreeing

Respondents were asked to identify whether thecourse had helped them to evaluate issues and makedecisions The responses were positive with 10 (67)in agreement and two (13) strongly agreeing Withregard to the encouragement students had received todevelop networks with peers and external contacts usingthe Entrepreneurial Society and social media it wasapparent that the students had done so with 14 of the 15(93) answering positively

Reflection is a strong element of the Betaprogramme participants are required in particular toconsider the viability of their ideas 12 (80) agreedthat there was sufficient time to reflect generally on theirenterprising skills

Responses were less favourable when studentswere asked whether the programme had providedopportunities for collaborative working The majority ofideas in the first cohort were individual and so only four(26) agreed or strongly agreed with this and six (40)disagreed or strongly disagreed

When they were asked if the programme had helpedthem to develop their business idea 100 answeredfavourably a strong endorsement for the value of theprogramme

Participants were asked to indicate whether theprogramme had enhanced their understanding of thefinancial and legal implications of their businessproposal The responses were highly supportive with 13(86) agreeing or strongly agreeing

Equally 13 (86) thought that the programme hadhelped them to identify their target markets 14 (93)that it helped them to articulate their business ideas and14 (93) that it helped build their confidence Finally14 (93) agreed with the notion that the programmehad enabled them to understand what it took to start abusiness Overall 93 of students answeredfavourably with only one (7) negative responsesuggesting that the Beta programme was fit for purposeand enabled the participants to develop viable businessideas

Table 1 Skills and competencies developed

Question Stronglydisagree

Disagree Neitheragree nordisagree

Agree Stronglyagree

Developed your ability in identifying opportunities 0 0 2 (13) 6 (40) 7 (47)

Developed your capacity to take innovativeapproaches

0 1 (7) 4 (27) 2 (13) 8 (53)

Built your resilience and ability to overcomechallenges

0 0 3 (20) 5 (33) 7 (47)

Developed your ability to limit and manage risk 0 0 3 (20) 10 (67) 2 (13)

Helped you to evaluate issues and make decisions 0 1 (7) 3 (20) 10 (67) 2 (13)

Helped build your networks 0 1 (7) 0 8 (53) 6 (40)

Allowed you time to reflect on your enterprising skills 0 2 (13) 1 (7) 5 (33) 7 (47)

Developed opportunities for collaborative working 3 (20) 3 (20) 5 (33) 2 (13) 2 (13)

Helped you to develop your business idea 0 0 0 3 (20) 12 (80)

Helped you to recognize financial and legal implicationson a business proposal

0 0 2 (13) 5 (33) 8 (53)

Identify target markets 0 1 (7) 4 (27) 5 (33) 5 (33)

Helped you articulate your business ideas 0 0 1 (7) 6 (40) 8 (53)

Built your confidence to start a business 0 0 1 (7) 4 (27) 10 (67)

Understand what it takes to start your own business 0 0 1 (7) 8 (53) 6 (40)

Note sample size N=15 percentages have been rounded to integers

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 413

Self-employability intentions

The respondents were asked to identify whether theyrequired any further support for developing theirbusiness Overall 13 (87) said that they did notrequire any further support but two respondents felt theneed for further help

lsquoFurther financial and legal advice I need moreknowledge on how to set up partnerships legalaspectsrsquo (BP B)

lsquoThere will always be need for continuous supportrsquo(BP C)

Career intentions

Perhaps the most important question in a study such asthis is deals with the attitudes to an entrepreneurialcareer the results for this programme are presented inTable 2 As can be seen these responses based on afive-point Likert-style scale are generally favourablewith 14 of the 15 (93) indicating that they were likelyor very likely to continue with their business post-graduation and 13 (87) suggesting it was very likelythat they would look to set up a business at some stagein the future Equally only four (27) suggested thatthey would be likely to work for a large organizationand none of the cohort wanted to undertakepostgraduate study because they were more interested inthe prospect of an entrepreneurial career These resultssuggest that the programme achieved its stated aim ofpreparing students for an entrepreneurial career

DiscussionThis study responds to the calls for further research ingraduate entrepreneurship from Nabi et al (2006) and

Holden et al (2007) The increase in the number ofentrepreneurship education programmes has been drivenby policy makers and economic necessity howeverthere is a real need to confirm and exchange bestpractice to facilitate business start-ups This is the focusof this study and we believe its key contribution to thetopic

Overall the Beta programme can be judged assuccessful in enabling students to evaluate test andgrow their nascent ideas into viable business start-ups(Albert and Gaynor 2006) All the responses collectedregarding the various measures suggest that Beta had apositive impact on attitudes and skills Programmeparticipants were motivated to join Beta because of theattraction of starting a business obtaining start-upcapital accessing mentors and improving theirentrepreneurial competencies

In essence the Beta project is an amalgam of theconcepts regarding pre-incubators and businesscompetitions discussed in the literature consideredabove and elsewhere (Voisey et al 2013) The keyelements identified in Jones and Jones (2011) theprovision of dedicated staff (Stephens and Onofrei2012) and launch capital business mentors andspecialist advice (Allen and McCluskey 1990) are allcentral to the Beta programme

The provision of seed-corn funding to graduateentrepreneurs is critical in providing a real worldcontext and motivation for participation (Huffman andQuigley 2002 Kirby 2006) All Beta participantswelcomed this aspect and cited it as a contributoryfactor regarding their participation Lack of finance haspreviously been cited as a key barrier to entrepreneurialactivity (Fielden et al 2000) and Beta overcomes thisobstacle albeit with a limited level of initial capitalinvestment

Table 2 Future career intentions

Responses Very unlikely Unlikely Undecided Likely Very likely

How likely are you to continue with your business aftergraduation

0 0 1 (7) 6 (40) 8 (53)

How likely are you to set up another business aftergraduation

0 1 (7) 7 (47) 0 7 (47)

How likely are you to set up a business at some stagein the future

0 0 0 2 (13) 13 (87)

How likely are you to work for a small to medium-sizedenterprise after graduation

0 3 (20) 6 (40) 3 (20) 3 (20)

How likely are you to work for a large organization 3 (20) 3 (20) 5 (33) 4 (27) 0

How likely are you to take on a postgraduateprogramme after graduation

6 (40) 4 (27) 5 (33) 0 0

Note sample size N=15 percentages have been rounded to integers

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015414

The Beta programme recognizes the need to buildself-confidence and enterprise skills whilst allowing theparticipants to test and validate their business ideas Itwas apparent that the project allowed students toexperience both positive and negative emotionsNegative emotions (such as uncertaintydisappointment) arose when a business idea was judgednot to be viable following evaluation and reflection bythe participants and mentors (Cope 2003) On occasionparticipants experienced fear and trepidation at theprospect of having to present their idea to a panelalthough following the pitch all participants appreciatedthe experience and recognized its value in enhancing theidea and their own personal development Thesenegative experiences and emotions were just asimportant as the positive experiences because theyallowed the participants the opportunity to reflect andreconsider their actions (Shepherd 2003)

Beta also gave participants a chance to developsocial and formal networks with their peers andmentors The provision of experienced EiRs as businessmentors was recognized as a central tenet in theprogrammersquos success (as noted elsewhere see forexample Greene and Saridakis 2007 Matlay 2008Pickernell et al 2011) The EiRs offered regularprofessional advice and guidance that was used to shapethe studentsrsquo ideas from an early stage EiRs were aconstant presence for the participants throughout theproject and developed a strong and friendly relationshipbased on trust and understanding with each student

On completion of the programme the objective forparticipants is to create a legal fit-for-purpose entitywhich is ready to trade This is a realistic and justifiableproposition In terms of future development the Betaprogramme offers the potential of an intra-universityprocess of business start-up across and includingdifferent disciplines An expansion in its provisionthroughout the university would be a logical next step inits development In terms of future improvements theBeta team would like to create greater engagement withexternal business and crowdfunding networks Therewill be a need to expand the pool of mentors withrelevant expertise in the various disciplines to ensurethat growth across the university is successfullyachieved

ConclusionsThe initial pilot of the Beta project has provedsuccessful with positive feedback from the participantsAs noted above the Centre recognizes the need toembed the programme throughout the university Inaddition there is also a need to integrate the secondlevel of seed-corn funding into the scheme and to ensure

that the supporting entrepreneurs understand therequirements of the both the Centre and its applicants

In terms of best practice the authors recommend thefollowing main considerations

(1) A flexible learning environment should be providedwithin which experiential leaning creativity andinnovation can be effectively supported

(2) A standard classroom delivery should be avoidedbecause it will not produce the desired outcome

(3) Experienced mentors ideally in the form of EiRsshould be provided the mentors must be individualswho can support students effectively in thedevelopment of a viable business idea

(4) Initial seed-corn funding is critical in providing alsquoreal worldrsquo context for participants

(5) Participants must be encouraged to reflect evaluateand potentially rebuild their business idea at allstages of the process

In terms of implications for practice programmes suchas Beta offer a blueprint for entrepreneurship educationin HEIs University decision makers must understandthe importance of encouraging entrepreneurial activityin undergraduate programmes and providecross-university programmes such as Beta that enablein particular access to internal and external seed-cornfunding

The authors recognize that this research is limited toone university case study and the responses are drawnfrom a small cohort of students Generalizing the resultsmust therefore be treated with caution There is a needfor ongoing longitudinal research contrasting bestpractice from a range of universities In addition theissue of positive and negative emotions created bystart-up programmes also requires further examination

ReferencesAcs Z and Szerb S (2007) lsquoEntrepreneurship economic

growth and public policyrsquo Small Business Economics Vol 28No 2ndash3 pp 109ndash122

Albert P and Gaynor L (2006) lsquoTechnology businessincubation management lessons of experiencersquo inBernasconi M Harris S and Moensted M edsHigh-Tech Entrepreneurship Managing Innovation Varietyand Uncertainty Routledge London pp 131ndash143

Allen DN and McCluskey R (1990) lsquoStructure policyservices and performance in the business incubatorindustryrsquo Entrepreneurship Theory and Practice Vol 15 No2 pp 61ndash77

Andrews J and Higson H (2008) lsquoGraduate employabilitylsquolsquosoft skillsrsquorsquo versus lsquolsquohardrsquorsquo business knowledge a Europeanstudyrsquo Higher Education in Europe Vol 33 No 4pp 411ndash422

Atchison M and Gotlieb P (2004) lsquoInnovation and the futureof cooperative educationrsquo in Coll R and Eames C edsInternational Handbook for Cooperative Education AnInternational Perspective of the Theory Research and

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 415

their problem-solving capabilities The EiRs andacademic staff encouraged Beta participants to seekunique and innovative solutions that would createeconomically sustainable business start-ups

Participants were asked whether the programme hadhelped to build their resilience and ability to overcomechallenges again the results were positive with 12(80) recording lsquostrongly agreersquo or lsquoagreedrsquo

The next aspect considered was whether theprogramme had helped to develop their ability to limitand manage risk The results were positive with 10(67) in agreement and two (13) strongly agreeing

Respondents were asked to identify whether thecourse had helped them to evaluate issues and makedecisions The responses were positive with 10 (67)in agreement and two (13) strongly agreeing Withregard to the encouragement students had received todevelop networks with peers and external contacts usingthe Entrepreneurial Society and social media it wasapparent that the students had done so with 14 of the 15(93) answering positively

Reflection is a strong element of the Betaprogramme participants are required in particular toconsider the viability of their ideas 12 (80) agreedthat there was sufficient time to reflect generally on theirenterprising skills

Responses were less favourable when studentswere asked whether the programme had providedopportunities for collaborative working The majority ofideas in the first cohort were individual and so only four(26) agreed or strongly agreed with this and six (40)disagreed or strongly disagreed

When they were asked if the programme had helpedthem to develop their business idea 100 answeredfavourably a strong endorsement for the value of theprogramme

Participants were asked to indicate whether theprogramme had enhanced their understanding of thefinancial and legal implications of their businessproposal The responses were highly supportive with 13(86) agreeing or strongly agreeing

Equally 13 (86) thought that the programme hadhelped them to identify their target markets 14 (93)that it helped them to articulate their business ideas and14 (93) that it helped build their confidence Finally14 (93) agreed with the notion that the programmehad enabled them to understand what it took to start abusiness Overall 93 of students answeredfavourably with only one (7) negative responsesuggesting that the Beta programme was fit for purposeand enabled the participants to develop viable businessideas

Table 1 Skills and competencies developed

Question Stronglydisagree

Disagree Neitheragree nordisagree

Agree Stronglyagree

Developed your ability in identifying opportunities 0 0 2 (13) 6 (40) 7 (47)

Developed your capacity to take innovativeapproaches

0 1 (7) 4 (27) 2 (13) 8 (53)

Built your resilience and ability to overcomechallenges

0 0 3 (20) 5 (33) 7 (47)

Developed your ability to limit and manage risk 0 0 3 (20) 10 (67) 2 (13)

Helped you to evaluate issues and make decisions 0 1 (7) 3 (20) 10 (67) 2 (13)

Helped build your networks 0 1 (7) 0 8 (53) 6 (40)

Allowed you time to reflect on your enterprising skills 0 2 (13) 1 (7) 5 (33) 7 (47)

Developed opportunities for collaborative working 3 (20) 3 (20) 5 (33) 2 (13) 2 (13)

Helped you to develop your business idea 0 0 0 3 (20) 12 (80)

Helped you to recognize financial and legal implicationson a business proposal

0 0 2 (13) 5 (33) 8 (53)

Identify target markets 0 1 (7) 4 (27) 5 (33) 5 (33)

Helped you articulate your business ideas 0 0 1 (7) 6 (40) 8 (53)

Built your confidence to start a business 0 0 1 (7) 4 (27) 10 (67)

Understand what it takes to start your own business 0 0 1 (7) 8 (53) 6 (40)

Note sample size N=15 percentages have been rounded to integers

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 413

Self-employability intentions

The respondents were asked to identify whether theyrequired any further support for developing theirbusiness Overall 13 (87) said that they did notrequire any further support but two respondents felt theneed for further help

lsquoFurther financial and legal advice I need moreknowledge on how to set up partnerships legalaspectsrsquo (BP B)

lsquoThere will always be need for continuous supportrsquo(BP C)

Career intentions

Perhaps the most important question in a study such asthis is deals with the attitudes to an entrepreneurialcareer the results for this programme are presented inTable 2 As can be seen these responses based on afive-point Likert-style scale are generally favourablewith 14 of the 15 (93) indicating that they were likelyor very likely to continue with their business post-graduation and 13 (87) suggesting it was very likelythat they would look to set up a business at some stagein the future Equally only four (27) suggested thatthey would be likely to work for a large organizationand none of the cohort wanted to undertakepostgraduate study because they were more interested inthe prospect of an entrepreneurial career These resultssuggest that the programme achieved its stated aim ofpreparing students for an entrepreneurial career

DiscussionThis study responds to the calls for further research ingraduate entrepreneurship from Nabi et al (2006) and

Holden et al (2007) The increase in the number ofentrepreneurship education programmes has been drivenby policy makers and economic necessity howeverthere is a real need to confirm and exchange bestpractice to facilitate business start-ups This is the focusof this study and we believe its key contribution to thetopic

Overall the Beta programme can be judged assuccessful in enabling students to evaluate test andgrow their nascent ideas into viable business start-ups(Albert and Gaynor 2006) All the responses collectedregarding the various measures suggest that Beta had apositive impact on attitudes and skills Programmeparticipants were motivated to join Beta because of theattraction of starting a business obtaining start-upcapital accessing mentors and improving theirentrepreneurial competencies

In essence the Beta project is an amalgam of theconcepts regarding pre-incubators and businesscompetitions discussed in the literature consideredabove and elsewhere (Voisey et al 2013) The keyelements identified in Jones and Jones (2011) theprovision of dedicated staff (Stephens and Onofrei2012) and launch capital business mentors andspecialist advice (Allen and McCluskey 1990) are allcentral to the Beta programme

The provision of seed-corn funding to graduateentrepreneurs is critical in providing a real worldcontext and motivation for participation (Huffman andQuigley 2002 Kirby 2006) All Beta participantswelcomed this aspect and cited it as a contributoryfactor regarding their participation Lack of finance haspreviously been cited as a key barrier to entrepreneurialactivity (Fielden et al 2000) and Beta overcomes thisobstacle albeit with a limited level of initial capitalinvestment

Table 2 Future career intentions

Responses Very unlikely Unlikely Undecided Likely Very likely

How likely are you to continue with your business aftergraduation

0 0 1 (7) 6 (40) 8 (53)

How likely are you to set up another business aftergraduation

0 1 (7) 7 (47) 0 7 (47)

How likely are you to set up a business at some stagein the future

0 0 0 2 (13) 13 (87)

How likely are you to work for a small to medium-sizedenterprise after graduation

0 3 (20) 6 (40) 3 (20) 3 (20)

How likely are you to work for a large organization 3 (20) 3 (20) 5 (33) 4 (27) 0

How likely are you to take on a postgraduateprogramme after graduation

6 (40) 4 (27) 5 (33) 0 0

Note sample size N=15 percentages have been rounded to integers

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015414

The Beta programme recognizes the need to buildself-confidence and enterprise skills whilst allowing theparticipants to test and validate their business ideas Itwas apparent that the project allowed students toexperience both positive and negative emotionsNegative emotions (such as uncertaintydisappointment) arose when a business idea was judgednot to be viable following evaluation and reflection bythe participants and mentors (Cope 2003) On occasionparticipants experienced fear and trepidation at theprospect of having to present their idea to a panelalthough following the pitch all participants appreciatedthe experience and recognized its value in enhancing theidea and their own personal development Thesenegative experiences and emotions were just asimportant as the positive experiences because theyallowed the participants the opportunity to reflect andreconsider their actions (Shepherd 2003)

Beta also gave participants a chance to developsocial and formal networks with their peers andmentors The provision of experienced EiRs as businessmentors was recognized as a central tenet in theprogrammersquos success (as noted elsewhere see forexample Greene and Saridakis 2007 Matlay 2008Pickernell et al 2011) The EiRs offered regularprofessional advice and guidance that was used to shapethe studentsrsquo ideas from an early stage EiRs were aconstant presence for the participants throughout theproject and developed a strong and friendly relationshipbased on trust and understanding with each student

On completion of the programme the objective forparticipants is to create a legal fit-for-purpose entitywhich is ready to trade This is a realistic and justifiableproposition In terms of future development the Betaprogramme offers the potential of an intra-universityprocess of business start-up across and includingdifferent disciplines An expansion in its provisionthroughout the university would be a logical next step inits development In terms of future improvements theBeta team would like to create greater engagement withexternal business and crowdfunding networks Therewill be a need to expand the pool of mentors withrelevant expertise in the various disciplines to ensurethat growth across the university is successfullyachieved

ConclusionsThe initial pilot of the Beta project has provedsuccessful with positive feedback from the participantsAs noted above the Centre recognizes the need toembed the programme throughout the university Inaddition there is also a need to integrate the secondlevel of seed-corn funding into the scheme and to ensure

that the supporting entrepreneurs understand therequirements of the both the Centre and its applicants

In terms of best practice the authors recommend thefollowing main considerations

(1) A flexible learning environment should be providedwithin which experiential leaning creativity andinnovation can be effectively supported

(2) A standard classroom delivery should be avoidedbecause it will not produce the desired outcome

(3) Experienced mentors ideally in the form of EiRsshould be provided the mentors must be individualswho can support students effectively in thedevelopment of a viable business idea

(4) Initial seed-corn funding is critical in providing alsquoreal worldrsquo context for participants

(5) Participants must be encouraged to reflect evaluateand potentially rebuild their business idea at allstages of the process

In terms of implications for practice programmes suchas Beta offer a blueprint for entrepreneurship educationin HEIs University decision makers must understandthe importance of encouraging entrepreneurial activityin undergraduate programmes and providecross-university programmes such as Beta that enablein particular access to internal and external seed-cornfunding

The authors recognize that this research is limited toone university case study and the responses are drawnfrom a small cohort of students Generalizing the resultsmust therefore be treated with caution There is a needfor ongoing longitudinal research contrasting bestpractice from a range of universities In addition theissue of positive and negative emotions created bystart-up programmes also requires further examination

ReferencesAcs Z and Szerb S (2007) lsquoEntrepreneurship economic

growth and public policyrsquo Small Business Economics Vol 28No 2ndash3 pp 109ndash122

Albert P and Gaynor L (2006) lsquoTechnology businessincubation management lessons of experiencersquo inBernasconi M Harris S and Moensted M edsHigh-Tech Entrepreneurship Managing Innovation Varietyand Uncertainty Routledge London pp 131ndash143

Allen DN and McCluskey R (1990) lsquoStructure policyservices and performance in the business incubatorindustryrsquo Entrepreneurship Theory and Practice Vol 15 No2 pp 61ndash77

Andrews J and Higson H (2008) lsquoGraduate employabilitylsquolsquosoft skillsrsquorsquo versus lsquolsquohardrsquorsquo business knowledge a Europeanstudyrsquo Higher Education in Europe Vol 33 No 4pp 411ndash422

Atchison M and Gotlieb P (2004) lsquoInnovation and the futureof cooperative educationrsquo in Coll R and Eames C edsInternational Handbook for Cooperative Education AnInternational Perspective of the Theory Research and

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 415

Self-employability intentions

The respondents were asked to identify whether theyrequired any further support for developing theirbusiness Overall 13 (87) said that they did notrequire any further support but two respondents felt theneed for further help

lsquoFurther financial and legal advice I need moreknowledge on how to set up partnerships legalaspectsrsquo (BP B)

lsquoThere will always be need for continuous supportrsquo(BP C)

Career intentions

Perhaps the most important question in a study such asthis is deals with the attitudes to an entrepreneurialcareer the results for this programme are presented inTable 2 As can be seen these responses based on afive-point Likert-style scale are generally favourablewith 14 of the 15 (93) indicating that they were likelyor very likely to continue with their business post-graduation and 13 (87) suggesting it was very likelythat they would look to set up a business at some stagein the future Equally only four (27) suggested thatthey would be likely to work for a large organizationand none of the cohort wanted to undertakepostgraduate study because they were more interested inthe prospect of an entrepreneurial career These resultssuggest that the programme achieved its stated aim ofpreparing students for an entrepreneurial career

DiscussionThis study responds to the calls for further research ingraduate entrepreneurship from Nabi et al (2006) and

Holden et al (2007) The increase in the number ofentrepreneurship education programmes has been drivenby policy makers and economic necessity howeverthere is a real need to confirm and exchange bestpractice to facilitate business start-ups This is the focusof this study and we believe its key contribution to thetopic

Overall the Beta programme can be judged assuccessful in enabling students to evaluate test andgrow their nascent ideas into viable business start-ups(Albert and Gaynor 2006) All the responses collectedregarding the various measures suggest that Beta had apositive impact on attitudes and skills Programmeparticipants were motivated to join Beta because of theattraction of starting a business obtaining start-upcapital accessing mentors and improving theirentrepreneurial competencies

In essence the Beta project is an amalgam of theconcepts regarding pre-incubators and businesscompetitions discussed in the literature consideredabove and elsewhere (Voisey et al 2013) The keyelements identified in Jones and Jones (2011) theprovision of dedicated staff (Stephens and Onofrei2012) and launch capital business mentors andspecialist advice (Allen and McCluskey 1990) are allcentral to the Beta programme

The provision of seed-corn funding to graduateentrepreneurs is critical in providing a real worldcontext and motivation for participation (Huffman andQuigley 2002 Kirby 2006) All Beta participantswelcomed this aspect and cited it as a contributoryfactor regarding their participation Lack of finance haspreviously been cited as a key barrier to entrepreneurialactivity (Fielden et al 2000) and Beta overcomes thisobstacle albeit with a limited level of initial capitalinvestment

Table 2 Future career intentions

Responses Very unlikely Unlikely Undecided Likely Very likely

How likely are you to continue with your business aftergraduation

0 0 1 (7) 6 (40) 8 (53)

How likely are you to set up another business aftergraduation

0 1 (7) 7 (47) 0 7 (47)

How likely are you to set up a business at some stagein the future

0 0 0 2 (13) 13 (87)

How likely are you to work for a small to medium-sizedenterprise after graduation

0 3 (20) 6 (40) 3 (20) 3 (20)

How likely are you to work for a large organization 3 (20) 3 (20) 5 (33) 4 (27) 0

How likely are you to take on a postgraduateprogramme after graduation

6 (40) 4 (27) 5 (33) 0 0

Note sample size N=15 percentages have been rounded to integers

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015414

The Beta programme recognizes the need to buildself-confidence and enterprise skills whilst allowing theparticipants to test and validate their business ideas Itwas apparent that the project allowed students toexperience both positive and negative emotionsNegative emotions (such as uncertaintydisappointment) arose when a business idea was judgednot to be viable following evaluation and reflection bythe participants and mentors (Cope 2003) On occasionparticipants experienced fear and trepidation at theprospect of having to present their idea to a panelalthough following the pitch all participants appreciatedthe experience and recognized its value in enhancing theidea and their own personal development Thesenegative experiences and emotions were just asimportant as the positive experiences because theyallowed the participants the opportunity to reflect andreconsider their actions (Shepherd 2003)

Beta also gave participants a chance to developsocial and formal networks with their peers andmentors The provision of experienced EiRs as businessmentors was recognized as a central tenet in theprogrammersquos success (as noted elsewhere see forexample Greene and Saridakis 2007 Matlay 2008Pickernell et al 2011) The EiRs offered regularprofessional advice and guidance that was used to shapethe studentsrsquo ideas from an early stage EiRs were aconstant presence for the participants throughout theproject and developed a strong and friendly relationshipbased on trust and understanding with each student

On completion of the programme the objective forparticipants is to create a legal fit-for-purpose entitywhich is ready to trade This is a realistic and justifiableproposition In terms of future development the Betaprogramme offers the potential of an intra-universityprocess of business start-up across and includingdifferent disciplines An expansion in its provisionthroughout the university would be a logical next step inits development In terms of future improvements theBeta team would like to create greater engagement withexternal business and crowdfunding networks Therewill be a need to expand the pool of mentors withrelevant expertise in the various disciplines to ensurethat growth across the university is successfullyachieved

ConclusionsThe initial pilot of the Beta project has provedsuccessful with positive feedback from the participantsAs noted above the Centre recognizes the need toembed the programme throughout the university Inaddition there is also a need to integrate the secondlevel of seed-corn funding into the scheme and to ensure

that the supporting entrepreneurs understand therequirements of the both the Centre and its applicants

In terms of best practice the authors recommend thefollowing main considerations

(1) A flexible learning environment should be providedwithin which experiential leaning creativity andinnovation can be effectively supported

(2) A standard classroom delivery should be avoidedbecause it will not produce the desired outcome

(3) Experienced mentors ideally in the form of EiRsshould be provided the mentors must be individualswho can support students effectively in thedevelopment of a viable business idea

(4) Initial seed-corn funding is critical in providing alsquoreal worldrsquo context for participants

(5) Participants must be encouraged to reflect evaluateand potentially rebuild their business idea at allstages of the process

In terms of implications for practice programmes suchas Beta offer a blueprint for entrepreneurship educationin HEIs University decision makers must understandthe importance of encouraging entrepreneurial activityin undergraduate programmes and providecross-university programmes such as Beta that enablein particular access to internal and external seed-cornfunding

The authors recognize that this research is limited toone university case study and the responses are drawnfrom a small cohort of students Generalizing the resultsmust therefore be treated with caution There is a needfor ongoing longitudinal research contrasting bestpractice from a range of universities In addition theissue of positive and negative emotions created bystart-up programmes also requires further examination

ReferencesAcs Z and Szerb S (2007) lsquoEntrepreneurship economic

growth and public policyrsquo Small Business Economics Vol 28No 2ndash3 pp 109ndash122

Albert P and Gaynor L (2006) lsquoTechnology businessincubation management lessons of experiencersquo inBernasconi M Harris S and Moensted M edsHigh-Tech Entrepreneurship Managing Innovation Varietyand Uncertainty Routledge London pp 131ndash143

Allen DN and McCluskey R (1990) lsquoStructure policyservices and performance in the business incubatorindustryrsquo Entrepreneurship Theory and Practice Vol 15 No2 pp 61ndash77

Andrews J and Higson H (2008) lsquoGraduate employabilitylsquolsquosoft skillsrsquorsquo versus lsquolsquohardrsquorsquo business knowledge a Europeanstudyrsquo Higher Education in Europe Vol 33 No 4pp 411ndash422

Atchison M and Gotlieb P (2004) lsquoInnovation and the futureof cooperative educationrsquo in Coll R and Eames C edsInternational Handbook for Cooperative Education AnInternational Perspective of the Theory Research and

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 415

The Beta programme recognizes the need to buildself-confidence and enterprise skills whilst allowing theparticipants to test and validate their business ideas Itwas apparent that the project allowed students toexperience both positive and negative emotionsNegative emotions (such as uncertaintydisappointment) arose when a business idea was judgednot to be viable following evaluation and reflection bythe participants and mentors (Cope 2003) On occasionparticipants experienced fear and trepidation at theprospect of having to present their idea to a panelalthough following the pitch all participants appreciatedthe experience and recognized its value in enhancing theidea and their own personal development Thesenegative experiences and emotions were just asimportant as the positive experiences because theyallowed the participants the opportunity to reflect andreconsider their actions (Shepherd 2003)

Beta also gave participants a chance to developsocial and formal networks with their peers andmentors The provision of experienced EiRs as businessmentors was recognized as a central tenet in theprogrammersquos success (as noted elsewhere see forexample Greene and Saridakis 2007 Matlay 2008Pickernell et al 2011) The EiRs offered regularprofessional advice and guidance that was used to shapethe studentsrsquo ideas from an early stage EiRs were aconstant presence for the participants throughout theproject and developed a strong and friendly relationshipbased on trust and understanding with each student

On completion of the programme the objective forparticipants is to create a legal fit-for-purpose entitywhich is ready to trade This is a realistic and justifiableproposition In terms of future development the Betaprogramme offers the potential of an intra-universityprocess of business start-up across and includingdifferent disciplines An expansion in its provisionthroughout the university would be a logical next step inits development In terms of future improvements theBeta team would like to create greater engagement withexternal business and crowdfunding networks Therewill be a need to expand the pool of mentors withrelevant expertise in the various disciplines to ensurethat growth across the university is successfullyachieved

ConclusionsThe initial pilot of the Beta project has provedsuccessful with positive feedback from the participantsAs noted above the Centre recognizes the need toembed the programme throughout the university Inaddition there is also a need to integrate the secondlevel of seed-corn funding into the scheme and to ensure

that the supporting entrepreneurs understand therequirements of the both the Centre and its applicants

In terms of best practice the authors recommend thefollowing main considerations

(1) A flexible learning environment should be providedwithin which experiential leaning creativity andinnovation can be effectively supported

(2) A standard classroom delivery should be avoidedbecause it will not produce the desired outcome

(3) Experienced mentors ideally in the form of EiRsshould be provided the mentors must be individualswho can support students effectively in thedevelopment of a viable business idea

(4) Initial seed-corn funding is critical in providing alsquoreal worldrsquo context for participants

(5) Participants must be encouraged to reflect evaluateand potentially rebuild their business idea at allstages of the process

In terms of implications for practice programmes suchas Beta offer a blueprint for entrepreneurship educationin HEIs University decision makers must understandthe importance of encouraging entrepreneurial activityin undergraduate programmes and providecross-university programmes such as Beta that enablein particular access to internal and external seed-cornfunding

The authors recognize that this research is limited toone university case study and the responses are drawnfrom a small cohort of students Generalizing the resultsmust therefore be treated with caution There is a needfor ongoing longitudinal research contrasting bestpractice from a range of universities In addition theissue of positive and negative emotions created bystart-up programmes also requires further examination

ReferencesAcs Z and Szerb S (2007) lsquoEntrepreneurship economic

growth and public policyrsquo Small Business Economics Vol 28No 2ndash3 pp 109ndash122

Albert P and Gaynor L (2006) lsquoTechnology businessincubation management lessons of experiencersquo inBernasconi M Harris S and Moensted M edsHigh-Tech Entrepreneurship Managing Innovation Varietyand Uncertainty Routledge London pp 131ndash143

Allen DN and McCluskey R (1990) lsquoStructure policyservices and performance in the business incubatorindustryrsquo Entrepreneurship Theory and Practice Vol 15 No2 pp 61ndash77

Andrews J and Higson H (2008) lsquoGraduate employabilitylsquolsquosoft skillsrsquorsquo versus lsquolsquohardrsquorsquo business knowledge a Europeanstudyrsquo Higher Education in Europe Vol 33 No 4pp 411ndash422

Atchison M and Gotlieb P (2004) lsquoInnovation and the futureof cooperative educationrsquo in Coll R and Eames C edsInternational Handbook for Cooperative Education AnInternational Perspective of the Theory Research and

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015 415

Practice of Work-integrated Learning World Association forCooperative Education Boston MA pp 261ndash269

Autio E Kenney M Mustar P Siegel D and Wright M(2014) lsquoEntrepreneurial innovation the importance ofcontextrsquo Research Policy Vol 43 No 7 pp 1097ndash1108

Baldassarri S and Saavala T (2006) lsquoEntrepreneurship ndasheducating the next generation of entrepreneursrsquo EnterpriseEurope Vol 22 pp 16ndash20

Beecham S Hall T Britton C Cottee M and Rainera A(2005) lsquoUsing an expert panel to validate a requirementsprocess improvement modelrsquo Journal of Systems andSoftware Vol 76 No 3 pp 251ndash275

Benbasat I Goldstein D and Mead M (1987) lsquoThe caseresearch strategy in studies of information systemsrsquo MISQuarterly Vol 11 No 3 pp 369ndash386

Bennett R and Robson P (1999) lsquoThe use of externalbusiness advice by SMEs in Britainrsquo Entrepreneurship andRegional Development Vol 11 No 2 pp 155ndash180

Bell E and Bryman A (2007) lsquoThe ethics of managementresearch an exploratory content analysisrsquo British Journal ofManagement Vol 18 No 1 pp 63ndash77

Birley S (1985) lsquoThe role of networks in the entrepreneurialprocessrsquo Journal of Business Venturing Vol 1 No 1pp 107ndash117

Bowden J and Marton F (1999) The University of LearningBeyond Quality and Competence in Higher EducationKogan Page London

Broadfoot C and Sheen M (2002) lsquoA guide to pre-incubatorbest practice manual describing the best practice schemewhich is transferable to any regionrsquo University of StrathclydeStrathclyde httpwwwusineuni-bonnde (accessed 20September 2012)

Cameron D (2011) lsquoEntrepreneurs given multi-million pound liftup with the launch of lsquolsquoStart-up Britainrsquorsquorsquo httpwwwnumber10govuknewsentrepreneurs-given-multimillion-pound-lift-off-with-launch-of-startup-britain(accessed JulyndashAugust 2012)

Chrisman JJ and McMullan WE (2004) lsquoOutsider assistanceas a knowledge resource for new venture survivalrsquo Journalof Small Business Management Vol 42 No 3 pp 229ndash244

CIHEndashNCGEndashNESTA (2008) Developing EntrepreneurialGraduates Putting Entrepreneurship at the Centre of HigherEducation Council for Industry and Higher EducationNational Council for Graduate Entrepreneurship and NationalEndowment for Science Technology and Arts London

Clarysse B Tartaria V and Saltera A (2011) lsquoThe impact ofentrepreneurial capacity experience and organizationalsupport on academic entrepreneurshiprsquo Research Policy Vol40 No 8 pp 1084ndash1093

Collins D (2003) lsquoPretesting survey instruments an overviewof cognitive methodsrsquo Quality of Life Research Vol 12 No 3pp 229ndash238

Cope J (2003) lsquoEntrepreneurial learning and critical reflectiondiscontinuous events as triggers for lsquolsquohigher-levelrsquorsquo learningrsquoManagement Learning Vol 34 No 4 pp 429ndash450

Cope J and Watts G (2000) lsquoLearning by doing ndash anexploration of experience critical incidents and reflection inentrepreneurial learningrsquo International Journal ofEntrepreneurial Behavior and Research Vol 6 No 3pp 104ndash124

Corbett AC (2005) lsquoExperiential learning within the process ofopportunity identification and exploitationrsquo EntrepreneurshipTheory and Practice Vol 29 No 4 pp 473ndash491

Deakins D and Freel M (1998) lsquoEntrepreneurial learning andthe growth process in SMEsrsquo The Learning Organization Vol5 No 3 pp 144ndash155

de Leeuw ED (2005) lsquoTo mix or not to mix data collectionmodes in surveysrsquo Journal of Official Statistics Vol 21 No 2pp 233ndash255

Der Foo M Wong PK and Ong A (2005) lsquoDo others thinkyou have a viable business idea Team diversity and judgesrsquo

evaluation of ideas in a business plan competitionrsquo Journalof Business Venturing Vol 20 No 3 pp 385ndash402

Dickson A (2004) Pre-incubation and the New ZealandBusiness Incubation Industry report for Incubators NewZealand httpwwwincubatorsorgnzcontentnews

Dillman DA (1978) Mail and Telephone Surveys The TotalDesign Method Wiley New York

Di Gregorio D and Shane SA (2003) lsquoWhy do someuniversities generate more start-ups than othersrsquo ResearchPolicy Vol 32 No 2 pp 209ndash227

Eisenhardt KM (1989) lsquoBuilding theories from case studyresearchrsquo The Academy of Management Review Vol 14 No4 pp 532ndash550

Eisenhardt KM and Graebner ME (2007) lsquoTheory buildingfrom cases opportunities and challengesrsquo Academy ofManagement Journal Vol 50 pp 25ndash32

Fayolle A Gailly B and Lassas-Clerc N (2006) lsquoAssessingthe impact of entrepreneurship education programmes anew methodologyrsquo Journal of European Industrial TrainingVol 30 No 9 pp 701ndash720

Fielden S Davidson M and Makin P (2000) lsquoBarriersencountered during micro and small business start-up inNorth-West Englandrsquo Journal of Small Business andEnterprise Development Vol 7 No 4 pp 295ndash304

Fox JA and Tracy P (1986) Randomized Response AMethod for Sensitive Surveys Sage Thousand Oaks CA

Fraser S (2005) Finance for Small and Medium-sizedEnterprises A Report on the 2004 UK Survey of SMEFinances Bank of England London

Galloway L Anderson M Brown M and Whittam G (2005)The Impact of Entrepreneurship Education in HE ReportBusiness Education Support Team Oxford

GEM (Global Entrepreneurship Monitor) (2007) lsquoGraduateentrepreneurship in the UK summary report from GEM UKdatarsquo NCGE Research Report 0032006 National Councilfor Graduate Entrepreneurship London

Greene FJ and Saridakis G (2007) lsquoUnderstanding thefactors influencing graduate entrepreneurshiprsquo ResearchReport No 0012007 National Council of GraduateEntrepreneurship Birmingham

Grimaldi R Kenney M Siegel D and Wright M (2011) lsquo30years after BayhndashDole reassessing academicentrepreneurshiprsquo Research Policy Vol 40 No 8pp 1045ndash1057

Greve A and Salaff J (2003) lsquoSocial networks andentrepreneurshiprsquo Entrepreneurship Theory and PracticeVol 28 No 1 pp 1ndash22

Halt G Fesnak R Donch J and Stiles A (2014)lsquoMonetization strategies for startups incubators andacceleratorsrsquo in Halt G Fesnak R Donch J and StilesA Intellectual Property in Consumer Electronics Softwareand Technology Startups Springer-Verlag New Yorkpp 199ndash208

Hannon P (2005) lsquoTeaching pigeons to dance sense andmeaning in entrepreneurship educationrsquo paper presented atthe ISBE 28th National Small Firms Policy and ResearchConference University of Lancaster Blackpool November

Hegarty C and Jones C (2008) lsquoGraduate entrepreneurshipmore than childrsquos playrsquo Education + Training Vol 50 No 7pp 626ndash637

Henry C Hill F and Leitch C (2005) lsquoEntrepreneurshipeducation and training can entrepreneurship be taught(Part 1)rsquo Education + Training Vol 47 No 2 pp 98ndash111

Holden R and Jameson S (2002) lsquoEmploying graduates inSMEs towards a research agendarsquo Journal of SmallBusiness and Enterprise Development Vol 9 No 3pp 271ndash284

Holden R Jameson S and Walmsley A (2007) lsquoNewgraduate employment within SMEs still in the darkrsquo Journalof Small Business and Enterprise Development Vol 14 No2 pp 211ndash227

Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015416

Huffman D and Quigley J M (2002) lsquoThe role of universityin attracting high tech entrepreneurship a Silicon Valleytalersquo The Annals of Regional Science Vol 36 No 3pp 403ndash419

Johannessen J-A Olaisen J and Olsen B (1999) lsquoStrategicuse of information technology for increased innovation andperformancersquo Information Management and ComputerSecurity Vol 7 No 1 pp 5ndash22

Jones A and Jones P (2011) lsquoMaking an impact a profile of abusiness planning competition in a universityrsquo Education +Training Vol 53 Nos 89 pp 704ndash721

Jones B and Iredale N (2010) lsquoEnterprise education aspedagogyrsquo Education + Training Vol 52 No 1 pp 7ndash19

Jones P Jones A Skinner H and Packham G (2013)lsquoEmbedding enterprise a business school undergraduatecourse with an enterprise focusrsquo Industry and HigherEducation Vol 27 No 3 pp 205ndash215

Jones P Packham G Beynon-Davies P Simmons G andPickernell D (2014) lsquoAn exploration of the attitudes andstrategic responses of sole-proprietor micro-enterprises inadopting ICTrsquo International Small Business Journal Vol 32No 3 pp 285ndash306

Kirby D (2006) lsquoCreating entrepreneurial universities in the UKapplying entrepreneurship theory to practicersquo Journal ofTechnology Transfer Vol 31 No 5 pp 599ndash603

Klapper R (2004)lsquoGovernment goals and entrepreneurshipeducation ndash an investigation at a Grande Eacutecole in FrancersquoEducation + Training Vol 46 No 3 pp 127ndash137

Kolb D (1984) Experiential Learning Experience as theSource of Learning and Development Prentice-HallEnglewood Cliffs NJ

Kolvereid L and Moen Oslash (1997) lsquoEntrepreneurship amongbusiness graduates does a major in entrepreneurship makea differencersquo Journal of European Industrial Training Vol21 No 4 pp 154ndash160

Kothari S and Handscombe RD (2007) lsquoSweep or seep ndashstructure culture enterprise and universitiesrsquo ManagementDecision Vol 45 No 1 pp 43ndash61

Krueger NF Reilly MD and Carsrud AL (2000) lsquoCompetingmodels of entrepreneurial intentionsrsquo Journal of BusinessVenturing Vol 15 Nos 56 pp 411ndash432

Kuratko DF (2005) lsquoThe emergence of entrepreneurshipeducation development trends and challengesrsquoEntrepreneurship Theory and Practice Vol 29 No 5pp 577ndash597

Lange J Marram E and Bygrave W (2012) lsquoHuman assetsand entrepreneurial performance a study of companiesstarted by business school graduatesrsquo Journal of Businessand Entrepreneurship Vol 24 No 1 pp 1ndash24

Levy M and Powell P (2003) lsquoExploring SME internetadoption towards a contingent modelrsquo Electronic MarketsVol 13 No 2 pp 173ndash181

MacLellan E (2001) lsquoAssessment for learning the differingperceptions of tutors and studentsrsquo Assessment andEvaluation in Higher Education Vol 26 No 4 pp 307ndash318

Mason C and Arshed N (2013) lsquoTeaching entrepreneurshipto university students through experiential learning a casestudyrsquo Industry and Higher Education Vol 27 No 6pp 449ndash463

Matlay H (2005) lsquoEntrepreneurship education in UK businessschools conceptual contextual and policy considerationsrsquoJournal of Small Business Enterprise and Development Vol12 No 1 pp 627ndash643

Matlay H (2008) lsquoThe impact of entrepreneurship education onentrepreneurial outcomesrsquo Journal of Small Business andEnterprise Development Vol 15 No 2 pp 382ndash396

Matlay H and Carey C (2007) lsquoEntrepreneurship education inthe UK a longitudinal perspectiversquo Journal of SmallBusiness and Enterprise Development Vol 14 No 2pp 252ndash263

Maznevski M and Chudoba K (2000) lsquoBridging space overtime global virtual team dynamics and effectivenessrsquoOrganization Science Vol 11 No 5 pp 473ndash492

McLarty R (2003) lsquoGraduate entrepreneurship a critical reviewof problems issues and personal competenciesrsquoInternational Journal of Entrepreneurship and InnovationManagement Vol 3 Nos 56 pp 621ndash636

Miles M and Huberman A (1994) Qualitative Data AnalysisAn Expanded Sourcebook (2nd edition) Sage London

Morris NM Kuratko D and Pryor CG (2013) lsquoBuildingblocks for the development of university-wideentrepreneurshiprsquo Entrepreneurship Research Journal Vol4 No 1 pp 45ndash68

Nabi G Holden R and Walmsley A (2006) lsquoGraduate careermaking and business start-up a literature reviewrsquo Education+ Training Vol 48 No 5 pp 373ndash385

ONS (Office of National Statistics) (2013) lsquoSelf-employed up367000 in four years mostly since 2011rsquo Office for NationalStatistics Labour Market London httpwwwonsgovukonsdcp171776_298533pdf

Packham G Jones P Miller C Pickernell D and ThomasB (2010) lsquoAttitudes towards entrepreneurship education acomparative analysisrsquo Education + Training Vol 52 No 89pp 568ndash586

Peterman N and Kennedy J (2003) lsquoEnterprise educationinfluencing studentsrsquo perceptions of entrepreneurshiprsquoEntrepreneurship Theory and Practice Vol 28 pp 129ndash144

Pickernell D Packham G Jones P Miller C and Thomas B(2011) lsquoGraduate entrepreneurs are different they havemore knowledgersquo International Journal of EntrepreneurialBehaviour and Research Vol 17 No 2 pp 183ndash202

Pittaway L and Cope J (2007) lsquoEntrepreneurship educationa systematic review of the evidencersquo International SmallBusiness Journal Vol 25 No 5 pp 477ndash506

Poon S and Swatman P (1999) lsquoA longitudinal study ofexpectations in small business internet commercersquo International Journal of Electronic Commerce Vol 3 No 3pp 21ndash33

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Rae D Penaluna A and Dhaliwal H (2011) lsquoHighereducation and graduate enterprise in the new era shouldevery student learn enterprise skillsrsquo Graduate MarketTrends Higher Education Careers Service Unit Manchesterpp 9ndash11

Raposo M and Do Paccedilo A (2011) lsquoEntrepreneurshipeducation relationship between education andentrepreneurial activityrsquo Psicothema Vol 23 No 3pp 453ndash457

Rasmussen E and Soslashrheim R (2006) lsquoAction-basedentrepreneurship educationrsquo Technovation Vol 26 No 2pp 185ndash194

Robson P and Bennett R (2000) lsquoSME growth therelationship with business advice and external collaborationrsquoSmall Business Economics Vol 15 No 3 pp 193ndash208

Russell R Atchison M and Brooks R (2008) lsquoBusiness plancompetitions in tertiary institutions encouragingentrepreneurship educationrsquo Journal of Higher EducationPolicy and Management Vol 30 No 2 pp 123ndash138

Schoumln D (1987) Educating the Reflecting PractitionerJossey-Bass San Francisco CA

Shane S (2003) A General Theory of Entrepreneurship TheIndividualndashOpportunity Nexus Edward Elgar Cheltenham

Shepherd DA (2003) lsquoLearning from business failurepropositions of grief recovery for the self-employedrsquoAcademy of Management Review Vol 28 No 2pp 318ndash328

Siegel D Wright M and Lockett A (2007) lsquoThe rise ofentrepreneurial activity at universities organizational and

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INDUSTRY amp HIGHER EDUCATION October 2015 417

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Souitaris V Zerbinati S and Al-Laham A (2007) lsquoDoentrepreneurship programmes raise entrepreneurial intentionof science and engineering students The effect of learninginspiration and resourcesrsquo Journal of Business VenturingVol 22 No 4 pp 566ndash591

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USINE (University Start-up of International Entrepreneurs)(2002) httpwwwusineunibonndeDownloadsbilderpreincubationpdf (accessed 20 September 2012)

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Beta an experiment in funded undergraduate start-up

INDUSTRY amp HIGHER EDUCATION October 2015418