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Juris Krumins

University of Latvia, Riga

Acquisition of entrepreneurial skills during and after university studies: case of Latvia

International conference “Entrepreneurship education - a priority for

the higher education institutions”8 - 9  October 2012 Bucharest, Romania

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Population: 2.07 millions (2011)Number of students: 97 035 or 4.7 % of total population. or 4.7 % of total population. Enrollees 31 941; Graduates 24 825Enrollees 31 941; Graduates 24 825

33 HE institutions (2011):- 17 state (incl. 6 Universities),- 16 private,

+24 HE colleges- 17 state- 7 private

Coordination in HE

Academics

MarketState

Clark (1983)

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Population projection by single age groups, Latvia

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Enrolment - total

Number of study places in Latvia’s higher education institutions and colleges, subsidized by state or local government budget or covered by tuition fee as private contribution (at the beginning of academic year)

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Growing global competitiveness and recent economic crisis has underlined

a need for wider acquisition of entrepreneurial skills by university

students from all study areas, particularly in the Central and East

European countries.

The goal of this study is to analyze acquisition of entrepreneurial skills

during and after university studies in Latvia.

Study covers formal academic and professional higher education and

continuing education.

Student and graduate statistics are gathered and analyzed in Latvia on institutional, regional and national level (see: csb.gov.lv; izm.gov.lv)

Surveys and interviews are performed on regular basis.

Self evaluation and external evaluation reports are available publicly for all study programs and institutions of higher education (see: Centre of Quality Assurance in Higher Education - www.aiknc.lv )

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Data and methods

Two sample survey data are used in the analysis

1) Survey-I of 2,491 graduates from Latvian higher education institutions (years 2003 and 2005), performed during 2006-2007. Stratified random sampling. Respondents were selected from the academic databases of more than 30 institutions of higher education (including colleges). 85% of all interviewed graduates were employees, 5% employers, 3% self-employed and rest were nonworking.

2) Survey-II of 4,909 university graduates having the last university diploma since 2006, performed during Nov.-Dec. 2011. Respondents of that Internet survey were selected from the academic databases of all six Latvia’s universities (University of Latvia, Riga Technical University, Latvia University of Agriculture, Liepaja University, Daugavpils University, Riga Stradins University). Among all respondents 78% studied full-time and 22% part-time, 94% resided in Latvia, but 6% abroad.

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Net salary of graduates during previous month by types of study programs (Data: Survey-I, n=2491)

050

100150200250300350400450

Prof-1

BA Prof-2*

MA

LVL

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Students employed during studies by types of study programs (Data: Survey-I, n=2491)

0102030405060708090

100

BA Prof-1

Prof-2

MA

%

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„Was your work during studies related to qualification acquired in education institution?”

(Data: Survey-I, n=2491) (subjective assessment)

0

10

20

30

40

50

60

Completely Partially Not at all

% of empl. students

    3 years 4 years 5 years 6 years 7 years 8 years

1st cycle Males 1.8 29.5 41.6 45.9 47.3 49.6

  Females 2.8 30.4 53.3 60.7 63.3 66.3

  M + F 2.5 30.1 50.2 56.6 58.8 61.6

2nd cycle Males 0 0 1.0 11.8 16.4 17.3

Females 0 0 1.2 11.9 19.0 20.1

M + F 0 0 1.2 11.9 18.3 19.3

Graduation probabilities with the 1st cycle or 2nd cycle diploma by years of education (per cent of the initial cohort, University of

Latvia - 2002)

Source: Cunska Zane 2012.

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Net salary (LVL) of employed graduates according to compliance to acquired

qualification by education programme groups Education programme

groupProfession comply with

qualificationProfession does not comply

with qualification

Pedagogic education 218 (100%) 277 (127%)Humanities & arts 287 (100%) 327 (114%)Natural sciences 370 (100%) 335 (91%)Agriculture 240 (100%) 276 (115%)Health care & social welfare 266 (100%) 394 (148%)Services 348 (100%) 294 (84%)Commerce & administration 373 (100%) 327 (88%)Law 505 (100%) 271 (54%)Engineering 413 (100%) 374 (91%)

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Higher Education Council. European Social Fund Project “Evaluation of Higher Education Study Programmes and proposals for Quality

Improvement”. Retrieved 14 August 2012 from http://www.aip.lv/eng_tasks_ESF_proj_about.htm

According to information from academic data-bases, site visits, self-evaluation and external evaluation all study programmes by the Project in the June 2012 were grouped in three groups –

1) qualitative and sustainable programmes;

2) programmes requiring improvements,

3) programmes which usefulness is questionable.

Among evaluated 854 study programmes 58 or 7% were assigned to the third group, which mostly included programmes in social science and business administration. Experts proposed to finish dividing study programmes in academic and professional and to secure integration of academic competencies and professional skills.

Demand to increase a role of professional / entrepreneurial skills

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All tertiary study programmes in Latvia are designed according to the State Standards for education and are divided in two groups – academic and professional.

Standard form 2001 introduced regulation for so-called integrated academic-professional study programmes – higher professional education Bachelor’s and Master’s study programmes, graduates of which are awarded both academic degree and qualification. State Standard defines a length of internship period and acquisition of entrepreneurial skills for professional programmes only.

Content of academic study programs in that respect relay on institutions of higher education. In the large part of academic study programs modules or courses in entrepreneurship and periods of internship are missing.

Experts proposed to finish dividing study programmes in academic and professional and to secure integration of academic competencies and professional skills

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Survey II (n=4909 university graduates). Average assessments to given statements were calculated, using a six point scale: 0 – not acquired, 1 – at very low level, 2 – at low level, 3 – at medium level, 4 – at high level, 5 – at very high level. Question: “To what extent that statement “N” characterize your university education in general?” The highest assessment: “Obtained education is sufficient to continue studies”-3.25,The lowest assessment: “Obtained education sufficiently contributed to formation/development of entrepreneurial skills” – 2.22 .

Question: “Evaluate please, a level of knowledge and skills obtained during your university studies”

The highest assessment: “Theoretical competency in a chosen field of study” – 3.68,The lowest assessment: “Skills necessary to begin entrepreneurial activity” – 1.90.

Consequently - There is a well-grounded need to complement existing university study programs by adding training of entrepreneurial skills and career development.

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Both Surveys reported rather weak entrepreneurial activity of graduates to start or continue own business.

Graduates according to the Survey I (n=2491) results were: employees 85%, jobless (students, housekeepers etc.) 8%, employers 5% and self-

employed 2%.

Answers to the question “Your activities during the six months after graduation of university” in Survey II (n=4909) were distributed by graduates as follows (note: respondents could give a several answers to that question,

therefore a sum exceeds 100%): Continuation of the same employment as during a studies 61.8Continuation of studies 28.7Found a new job 17.7Looking for employment, but did not found 10.3Started own business or self-employment 2.8Other 1.4

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Ambition to start own business could be realized after completion of studies - during a longer time period!

Answers to question “Are you planning to start your own entrepreneurial activity during the next three years”, given by university graduates, who are

not employers or self-employed (n=4459), look more promising:All answers 100%

of whichI am not planning to go into business 40.3I am planning to establish a new company/business 10.0I am planning to go into self-employment 4.1I am planning to buy existing company/business 0.3Hard to say 45.3

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Respondents (n=4459) presented following answers to the question “What factors, by your mind hinder to start your own entrepreneurial activity or to go into self-

employment?”(Note: respondents could give a several answers to that question; therefore a sum exceeds

100%):

Lack of financial support 46.2Lack of proficiency/skills to start and to develop own business 31.8Fear to take a risk of failure or bankruptcy 27.6No guarantees for a regular income 27.5Complicated administrative procedures 25.2Now idea how to start business 23.5Lack of initiative to start an entrepreneurial activity 19.4None hindrance 9.5Hard to say 7.3

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Collaboration between the universities and companies

Important impulse in strengthening collaboration between the universities and companies usually is given by graduates.

Results of the Survey II confirmed that 67.6 per cent of graduates, who are employers and self-employed (n=450), are interested in further collaboration with universities.

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Activity

All answers, %

Of which - evaluation of intensiveness of activity given by graduates*

Never Rarely Regularly Hard to say

Provision of site for field practice 100.0 38.9 26.0 28.7 6.4Continuing education of employees 100.0 40.4 25.8 25.6 8.2

Transfer of knowledge, innovations 100.0 42.0 23.1 23.8 11.1

Recruitment of university academic staff

100.0 44.2 23.1 24.7 8.0

Participation in curriculum development and guest lecturing

100.0 55.1 22.2 14.5 8.2

Research funding and co-partnership

100.0 60.0 17.1 12.9 10.0

Participation in career promotion activities

100.0 64.0 17.6 9.3 9.1

Grants and sponsorship 100.0 69.6 14.0 8.0 8.4

Table. Evaluation of intensiveness of collaboration between companies and university, Latvia 2011 Source: Survey II (n = 450). * Respondents, who are employers or self-employed.

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Innovations focused on acquisition of entrepreneurial skills and career developmentNew interdisciplinary centres and units are established, which are oriented to acquisition of entrepreneurial skills, professional and career development, technology transfer and innovations: University of Latvia – Career Centre, Innovation Centre, Management and Business Education Centre; Riga Technical University – Innovation and Technology Transfer Centre, Business Incubator; Latvia University of Agriculture - Business and Technology Incubator, Centre for Life-long Learning; Daugavpils University – Professional Development Centre, Technology Transfer Office; Riga Stradins University – Technology Transfer Office. Joint centres established together by several institutions of higher education, companies and municipalities - Latvia Technology Park, Kurzeme Business Incubator, Rezekne Innovation Centre, Ventspils High Technology Park, Jelgava Business Incubator, Valmiera Business and Innovation Incubator.

The main activities of technology, business and innovation centres are to support innovative entrepreneurship activities, to offer consultancy services, to assist in finding partners, to involve in activities students and graduates motivated in business.

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Formal education

Informal education

Professional retraining courses

1st level professional higher education (college)

47 44 26

2nd level professional higher education (after completed secondary education)

38 49 31

Academic bachelor degree 63 43 26

2nd level professional higher education (after obtained higher education diploma)

23 61 43

Academic Master degree 19 66 44

Table. Continuation of formal and informal education in Latvia (per cent of graduates from previous level of education) Source: Survey I (n=2491).

Note: The sum of proportions in per cent exceeds 100 per cent due to overlapping of answers concerning continuation of different forms of education.

Continuing education

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Conclusions

• There is a well-grounded need to complement existing university study programs by adding training of entrepreneurial skills and counseling activities. Work experience, quality of acquired theoretical knowledge and professional skills are highly evaluated in the labour market. Proffessional experience also influences remuneration.

• The key forms of further collaboration between companies and university are: provision of site for field practice, guest lecturing, mentoring, exchange of information and experience, recruitment of graduates and students, joint research projects.

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Informal education and professional retraining courses also plays an important role in acquisition of entrepreneurial skills. Necessary improvements in training of professional/entrepreneurial skills are stressed by external experts involved in the evaluation of study programs.

Further strengthening of ties between the companies and universities could benefit in transfer entrepreneurial skills to academic staff and students. Business incubators and Innovation centers are important facilitators of the transfer of skills and ideas.

Reforms in higher education in Latvia envisage greater integration of academic and professional study programs, closer cooperation of education institutions with employers and professional associations in curriculum development, teaching, and training of entrepreneurial skills.