Entrepreneurship development in Ethiopia: the role of universities By Huub L.M. Mudde, Senior Project Consultant Rheinbach, November 14, 2014 What will I tell you? About MSM and myself The need for entrepreneurship development An Entrepreneurial University framework The study in Ethiopia Preliminary findings 1
What is MSM? A leading provider of management education at post graduate level with a global presence. Our mission is to enhance the professional management capacity of professionals and organizations in and for emerging economies and developing countries, with the objective to substantially contribute to the development of these societies. Established in 1952. Approx. 1.500 students worldwide; 26 fte Faculty; 49 fte support staff ; +200 doctoral students; 14+ partnerships; present in 20+ countries International accreditations: AMBA; IACBE; NVAO; ACPSP What is my role? Senior Project Consultant Multi-year capacity building programs in Ethiopia, Rwanda, Indonesia, Liberia, Palestinian Territories Institutional and strategy development Interface universities market actors Dialogue facilitation (partnerships) 2
What is the problem? 170 million new labour market entrants in Africa 2010-2020 3% annual growth in labour supply Limited absorption capacity in public sector Private sector weak or absent (in rural areas) Large informal sector High unemployment among youth What to do? Entrepreneurship development as an instrument for employability and poverty alleviation Call for job creators instead of job seekers University tasked to inspire students through entrepreneurship education So far with limited results What is needed at the university to inspire and support young people to become entrepreneurial? 3
Entrepreneurship development Courses on entrepreneurship Stand-alone Knowledge based Impact limited Education for entrepreneurship Courses plus Business Development Support Diversity of approaches Intra and extra curricular More success The institute itself is entrepreneurial Acting as an incubator (Etzkowitz) Coherence from entrepreneurial strategy -> operations Entrepreneurship development as KPI Evolvement of the Entrepreneurial University 4
The Entrepreneurial University An entrepreneurial university can mean three things: 1. The university itself, as an organization, becomes entrepreneurial; 2. The members of the university faculty, students, employees are turning themselves somehow into entrepreneurs; and 3. The interaction of the university with the environment, the structural coupling between university and region, follows entrepreneurial patterns. To achieve the second, the first must be accomplished. Source: Röpke (1998) Framework for an Entrepreneurial University 1. Leadership and Governance 2. Organizational capacity, people and incentives 3. Entrepreneurship Development in Teaching and Learning 4. Pathways for Entrepreneurs 5. Higher Education Institution Business / External relationships for Knowledge Exchange 6. Internationalization 7. Measuring the impact Source: www.heinnovate.eu 5
What is the study in Ethiopia about? 1. To advise the Ethiopian universities on how to strengthen their entrepreneurial policy, activities, facilities, and educational programs. 2. To advise the Ethiopian Ministry of Education/Education Strategy Centre (ESC) on how it could support the Ethiopian universities in strengthening their entrepreneurial policy, activities, facilities, and educational programs. In framework of University Leadership and Management Capacity Development project, Nuffic funded Ethiopia Low income country: GDP per capita: no 211 of 228 (1,300 USD) 85% of labor force in agriculture (2009 est., CIA Factbook) Young population 0 14 year: 44.2% 19.9 = 15 25 years: 19.9% equals 13 mln. people 2.89% population growth -> equals 2.5 mln. people Huge developments in Higher Education 25% of Government budget for education 20 years ago: 2 universities, enrolment 10,000 students Currently 31 public universities covering all regions Enrolment will rise to 400,000 students 6
Assessment Multiple cases: 9 universities Geographic diversity Years operational (at least 10 years) Entrepreneurial activity Team of international and Ethiopian experts & local facilitation Data collection by desk study, In-depth interviews, Focus Group Discussions Leadership, faculty, students, external stakeholders November 2014 March 2015 Conference on HE and development, June 2015, Addis Ababa Preliminary findings: 1. Leadership Strong government push for entrepreneurship development University Boards are politicians, hardly interested, no private sector representation University Presidents are political assignments Spending a lot of time on operational issues Centrally controlled, limited room for maneuver Change by government instruction No entrepreneurial strategy 7
Preliminary findings: 2. Organization Majority are young organizations: many developments, but tendency to copy-paste Young, enthusiastic staff with increasing capabilities Financially dependent on central government budget Weak HRD Civil service status of staff Large turnover, little incentives for staff acting entrepreneurial Traditional mono-disciplinary structure Start-up of new organizational structures (expert centres) Preliminary findings: 3. Teaching and learning Increasing efforts to upgrade entrepreneurship education Certified entrepreneurship trainers But: Stand alone entrepreneurship courses, knowledge oriented Majority of teaching is textbook based in large classes Depending on the discretion of the universities, no universal government policy 8
Preliminary findings: 4. Pathway Many developments: Donor funded initiatives to set-up more entrepreneurship centers Attempts to offer students entrepreneurial skills and attitude But: Too much focused on the end of study period (just before graduation) Involvement business sector limited Limited facilities & resources Preliminary findings: 5. Exchange Potential for universities to become a driving force in regional economic development Emerging partnership, but still limited (AAU Samsung) Business sector is weak Local / regional government institutions are weak 9
Preliminary findings: 6. Internationalization With exception of some vested universities (Mekelle, AAU, Jimma) limited internationalization Increase of international networking due to MSc and PhD scholarships, like DAAD Student exchange minimal due to costs & academic level Preliminary findings: 7. Measuring impact No tradition of tracer studies No practice of systemic gathering data on business start-ups 10
Concluding preliminary remarks on entrepreneurship development in Ethiopia Major developments in Ethiopian higher education Strong push by donor community & government to strengthen entrepreneurship development programs Staff is eager to learn, many universities are young However Centrally controlled, limited room for maneuver No entrepreneurial strategy, organization and culture Limited partnerships with business and regional government -> Universities as such not entrepreneurial Study report and paper forthcoming, June 2015 Questions? 11