Graduate Business Start-Ups Project Report: Studies

the Institute for Employment Studies
Graduate Business Start-ups Project Report
IES
HR Response to Organisational Change
GRADUATE BUSINESS START-UPS PROJECT REPORT
the Institute for Employment Studies
Graduate Business Start-ups: Project Report
Nii Djan Tackey
August 1999
The report which is thesubject of this review is published by IES as: Graduates Mean Business, Tackey N D, Perryman S. IES Report 357, 1999 ISBN 1-85184-268-1
THE INSTITUTE FOR
EMPLOYMENT STUDIES
Mantell Building Falmer Brighton BN1 9RF UK Tel. + 44 (0) 1273 686751 Fax + 44 (0) 1273 690430 http://www.employment-studies.co.uk Copies may be obtained from Grantham Book Services, priced 35.00. Tel: 01476 541080 Crown Copyright 1999
The report Graduates Mean Business was produced under contract with the Department for Education and Employment. The views expressed are those of the authors and do not necessarily reflect those of the Department for Education and Employment or any other government department.
Contents
1. Graduate Business Start-up 1.1 1.2 Introduction Review of the background
1 1 1 3 5 5 5 5 6 9 9 10 10 17 20 21 22
2. Aims and Objectives of the Project 3. Organisation of the Project 3.1 3.2 3.3 3.4 3.5 3.6 The project team Project management Steering group Methodology used Expected outcomes Dissemination strategy
4. The Results of the Project 4.1 4.2 4.3 4.4 Main findings from the research Lessons worthy of dissemination HEI plans to build on the project and outcomes Possible follow-up of the project
Annex 1: Good Practice Guide
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Graduate Business Start-ups
Introduction
This report summarises the work undertaken during the different phases of the Graduate Business Start-up project. This work was produced under contract with the Department for Education and Employment. The views expressed are those of the authors and do not necessarily reflect those of the Department for Education and Employment or any other government department. The Department for Education and Employment, nevertheless, holds the copyright over all the materials produced under the project. Section 1 reviews the background to the project, and places this exercise within that context. Section 2 sets out the aims and objectives of the project, as set out in the HEQED Prospectus. Section 3 discusses how the project was organised and describes the methodology employed to achieve the aims of the project. Section 4 discusses briefly the results of the project; in particular the extent to which the aims of the project were achieved, as well as the difficulties encountered in the course of the project. The section also draws on the previous sections to highlight the lessons which are worthy of dissemination to researchers undertaking similar work, and for policy makers in HEIs, government departments and other funding organisations. The section concludes by providing suggestions on how to build on the project and its outcomes.
Review of the background

There is little evidence of the extent to which self-employment is, or has become, a significant career destination for new graduates. This, despite the growth in self-employment within the general population since the 1980s, as well as the changes that have taken place in the graduate labour market. In particular, it is increasingly acknowledged that graduates can no longer expect stability and a linear career progression in large corporate organisations, and so need to be alert to the growing range of graduate opportunities, often in non-traditional areas.
However, the conventional view is that self-employment is a minority interest involving only a small fraction of new graduates. This view is based on data produced by HESA which relate to their initial destination (HESA, First Destination Surveys). It is against this background that HEQEDs development programme on Graduate Business Start-up is timely, as it paves the way for research into the potential for developing business start-ups as a first or early career destination for new graduates. In particular there is a need to examine the extent to which higher education identifies the existence of such potential, and provides support and guidance to overcome some of the readily identifiable obstacles to increasing take up.
Aims and Objectives of the Project

The main aim of the project was to assess the extent of and potential for graduate business start ups as a significant career destination, and whether there is a need for this to be reflected more explicitly in the higher education curriculum. More specifically, the main objectives of the research, as set out in the HEED Prospectus, were to: ! Identify the main defining features of graduates who go into self-employment, in particular their personal characteristics, family background, degree subject, and type of higher education institution attended. ! Explore self-employed graduates early post-graduation employment experiences, the different routes into selfemployment and the key pull and push factors which influence a graduates decision to set up their own business. ! Investigate the characteristics of the jobs and working environments of self-employed graduates, including: occupational group, sector, hours of work, earnings, the extent to which they regard their work as their main activity or as part of a portfolio of activities, whether they are in business on their own or employ others, their satisfaction with their job (eg whether the job requires graduate level ability and their skills are utilised to the full) and their future expectations. ! Identify self-employed graduates views on the help higher education institutions (HEIs) could provide to graduates who wish to set up their own business, including equipping students with relevant skills (eg business, enterprise and career management skills) and providing a range of career advice and guidance activities. ! Identify and disseminate guidance on good practice among HEIs in the provision of careers advice, education and guidance to students seeking self-employment. The research aimed to provide both quantitative and qualitative information on the whole graduate self-employment experience. The quantitative data would help identify the patterns of self-employment among graduates who have been in the labour market for different periods of time. This would allow us to explore the success of early self-employment experiences and give an indication of if, and to what extent, self-employment
levels increase over time. At a more detailed level, the quantitative information would explore other issues such as graduates routes into self-employment, the characteristics of their jobs, incentives and barriers to self-employment, skill needs and gaps, satisfaction with their careers and their future expectations. Qualitative information was required, on the other hand, to help focus on the total self-employment experience. To this end it was important to seek the views not only of a cross section of self-employed graduates, but also of key players from careers services and enterprise support organisations involved in helping graduates embarking on this course. The objective here was threefold. First, to gather information which would inform the design of the graduate survey, and thus provide useful contextual and in-depth data to complement the quantitative data. Secondly, to gather information (eg incentives and barriers to self-employment, skill needs and gaps) which would be used to develop good practice materials. The third objective was to use the information-gathering process to identify experts for the Delphi exercise employed for the development of the good practice materials.
Organisation of the Project
The project team

The project team consisted of Nii Djan Tackey (IES Research Fellow and Project Manager), Sarah Perryman (IES Research Officer) and Helen Connor (IES Associate Fellow). Jim Hillage (IES Principal Research Fellow) acted as Project Director. In addition to IES, the University of Sussex Careers Development Unit (CDU) and the London Institute Careers Service were involved in the project as partners, with particular responsibility for the development of good practice materials. These were intended to draw on the findings of the main research study and practice elsewhere among HEIs.
Project management
The IES Project Manager had overall responsibility for the dayto-day running of the project and liaison with the DfEE Project Manager. The Project Director was responsible for overall quality control, and ensured that the project ran to time and budget, and also met its objectives. The project team members had clear responsibilities for discrete elements of the project, and had regular meetings to review progress and discuss issues arising from the study. These were fed, together with interim results from appropriate stages of the project, into Progress Reports which were then presented at the Steering Groups meetings. Taken together, the chain of responsibilities formed the backbone of the IES evaluation strategy for the project, thus ensuring it was delivered to time, specification and at the level of quality required.
Steering group
A Steering Group was formed to oversee the project. The Steering Group comprised, in addition to the project team, the Departments Project Manager (Ron Allen), and the HE adviser to the DfEE (Dr Myszka Guzkowska). A specialist in small businesses (Marc Cowling of the Centre for Small and Medium Sized Enterprises at Warwick Business School) provided specialist advice. The Steering Group met four times over the course of the project and deliberated on its various stages. In
particular, the Steering Group discussed the development of the research instruments, agreed on timing of delivery of outputs, and commented on the drafts of reports.
Methodology used
The research methodology used contained a number of elements.
A review of literature and data

A comprehensive search and review of the relevant and available literature and data on graduate employment and skill needs was undertaken. The findings from the review informed and assisted the research design.
Exploratory interviews
There were interviews with a wide ranging list of key opinion formers and experts, including careers advisers in HEIs, representatives of AgCAS, TEC-funded enterprise programmes, and charities and other organisations which provide enterprise support to young people who want to set up their own business. The main aim was to explore the respondents views on their experience of graduates going into self-employment, and about the role of enterprise activities in higher education generally. On the whole, all the respondents contacted were co-operative, and provided the project team with detailed information on their activities, their links with HEIs, as well as their views on graduate self-employment, and on enterprise activities and higher education in general. As might be expected, there was some variation in the range and quality of information obtained from the key players.
Interviews with self-employed graduates

The main aim of the interviews with the self-employed graduates was to find out about their self-employment experience. The information gathered was used as an input to the design of the research instruments. The IES outline bid for the study proposed that the respondent self-employed graduates to be interviewed for this stage of the research, would be selected from among participants in earlier surveys carried out by IES for Sussex University and the London Institute. In practice, it was difficult to contact as many graduates from those two institutions, as over the elapsed time some had changed addresses. Consequently, the list of those with whom contact was possible was supplemented with other self-employed graduates identified during the exploratory interviews with key players.
Postal survey of HE careers services

A list of addresses, including named heads of the services was obtained from the Directory of Careers Service and used for the postal survey. The primary objective was to identify and select HEIs to be included in the survey of graduates. At the same time, though, the exercise was used to gather some basic information on the proportion of graduates from different cohort years who were in self-employment. A total of 152 questionnaires were administered; and 65 valid and 17 invalid responses were received, translating into a response rate of 48 per cent. Among the explanation for non-response and invalid response was the fact that some of the HEIs were specialist colleges who did not provide a separate careers guidance service. In other cases too, colleges had merged with universities, or were part of universities, and now had a common or shared careers advisory service. Notwithstanding these difficulties, the response rate of almost half of all HEI career services was high for this type of survey. It was also satisfying, as it included HEIs with higher proportions of graduates entering self-employment. More importantly, this census survey enabled the researchers to identify those HEIs willing to participate in the main survey of graduates.
Postal survey of graduates

This constituted the main data collection element of the research. It was envisaged that the survey would cover 4,000 graduates drawn from eight to ten HEIs that would agree to co-operate with the survey, and could provide a list of graduates according to IES specification. The intention was that the participating HEIs would represent a broad, but not necessarily representative, cross-section of institutions with a higher than average proportion of graduates entering self-employment. The HEIs included in the initial samples were self-selecting, therefore, having indicated their willingness to participate in this stage of the research from the earlier survey of careers services. In practice, the HEIs from which the sample was drawn either had higher than average proportions of graduates entering selfemployment overall (as was the case of the London New University and Midlands New University), or had specific courses from which a relatively high proportion of graduates entered self-employment (as was the case of the Northern Red Brick University, Southern HEI and Northern Technical University). It became apparent early on at this stage that a sample drawn strictly on the self-selected basis would not generate sufficient cases for most of the relevant variables required, or allow for more rigorous analysis of the data generated. Consequently, it was decided to include only HEIs that indicated their institutions as a whole, or individual departments or courses, had a higher than average proportions of graduates entering self-employment.
As there was still a risk of shortfall in the achieved sample of self-employed graduates from these HEIs, it was decided to approach known organisations which provide support for young people who want to start their own business, and see if they would be willing to help with the research. A sample of graduates was drawn from the database of young people, held by two such organisations, to complement that provided by the HEIs. A sample of 3,479 graduates was generated to be included in the survey, as shown in Table 1. Questionnaires were sent out to all the graduates in the sample initially, and blanket reminders sent four weeks later. The questionnaire remained in the field for approximately eight weeks. The survey yielded 656 useable responses, a response rate of 21 per cent.
Development of Good Practice Guide

This aspect of the project was undertaken by the project partners at Sussex University CDU and London Institute. The Good Practice Guide (GPG or the Guide) sought to make existing expertise in provision of support for aspiring entrepreneurs, more widely available to careers services throughout higher education. It was intended that some of the information gathered from the interviews and surveys would be used to develop good practice materials. Using the Delphi approach, a panel of experts (from within and outside HEIs) selected from the initial interviews would be used to develop further and refine the good practice materials. It was proposed to use either discussion groups or postal questionnaires for this stage of the research, depending on the location and availability of the participants.
Table 1: The composition of the participating HEIs

Institutions/organisations Higher Education Institution London New University Midlands New University Northern Technical University Northern Red Brick University Southern HEI Total Enterprise Organisation Organisation A Organisation B Total
Source: IES Survey, 1998
N 778 677 330 600 644 3,029
200 250 450
Expected outcomes
A number of outcomes were envisaged from the project. ! A research report which would provide for the first time, comprehensive information on the level and patterns of selfemployment among graduates, variations between different groups, the circumstances which are more likely to lead to self-employment, skill and career support needs among selfemployed graduates, and if and to what extent selfemployment might become a more important career destination for future HE leavers. ! Good practice on the provision of careers education and guidance to graduates potentially seeking self-employment would be identified and disseminated in the form of a guide or other materials. These would highlight the lessons and actions for careers and teaching staff in HEIs. In particular, it would point to the range of ways that careers services and academic staff could bring the idea of self-employment to their students. ! A series of events to raise awareness in HE about the level and nature of self-employment among recent graduates and the type of support this group would benefit from. ! Staff from the partner institutions involved in the project would learn more about self-employment options for graduates which would positively inform their future activities (eg research programmes and client advice).
Dissemination strategy
It was proposed that a research report and good practice materials would be published by IES under its higher education series. Press releases and the wide circulation of free research summaries would help maximise the impact of these publications. In addition it was proposed that: ! copies of the report and good practice materials would be provided to all HEIs in the UK; ! a forum for HE careers advisors and teaching staff would be held to launch the research report; ! a series of short and longer articles would be written by members of the project team for careers, higher education and TECs publications; ! presentation of papers at national conferences (eg AgCAS and SRHE conferences) and DfEE and SRHE networks.
The Results of the Project

Overall, the project aims were fulfilled, culminating in a written research report. Prior to its publication, the final draft of the report was presented to members of the Steering Group to comment upon; and their comments were subsequently incorporated. The final draft was then submitted for peer review at IES. With the agreement of the Department the research report was published as an IES report in July 1999, titled Graduates Mean Business: a study of graduate self-employment and business start-ups (IES Report 357, ISBN 1-85184-268-1).
Main findings from the research

The main findings of the project were contained in seven chapters of the research report. Chapter 1 provided the general background to the study, and included the methodology employed to gather the research evidence. In the main, this included: ! Review of the relevant literature and data. ! In-depth interviews with representatives of careers services, enterprise organisations and agencies, and self-employed graduates. ! A postal survey of all careers services in HEIs in England. ! A postal survey of graduates drawn from five HEIs and two enterprise support organisations. Chapter 2 looked at issues of definition and methodology when researching graduate self-employment. One of the principal issues here was how to define self-employment, and whether there is a need to distinguish this from business start-up. While it was relatively easy to identify what self-employment entailed from the vast amount of literature, there was very little literature which used the term business start-up. A useful starting point, however, was to look at what it was that people did as entrepreneurs, and the arena in which they operated. From the literature, self-employment was defined often within the context of the an individuals tax arrangement. A number of problems were seen to arise from this, such as when low paid or low hours jobs were involved, and people failed to reach the relevant tax threshold. Business start-up was difficult to define straight-
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forwardly because it could be used to describe two types of situations, viz: ! the legal form of a business arrangement, such as sole trader, partnership or company, or ! a process which describes the development process of the life cycle of a business. In the specific context of graduate self-employment, one of the difficulties for research was to find appropriate comparators against whom to measure the level of activity. An appropriate comparator could enable conclusions to be drawn about the true level of graduate self-employment. Other difficulties encountered in researching graduate selfemployment were associated with methodology. First, selfemployment was not considered a static condition or status; increasingly, for some graduates, it had become part of a portfolio of career activities. Second, there was constant entry and exit which made it difficult to measure the true level using a particular point in time as a point of reference. Against this background, however, it was possible to arrive at a working definition of what constituted graduate self-employment and business start-up. The former referred to graduates who considered themselves to be self-employed, in the sense that they had more than one customer or client. The latter referred to entrepreneurs who complied with the legal forms of a business arrangement, trading solely, or in partnership, or as a company. This included people who had started a business, even if they were now technically employees of that business. But the definitions excluded people who described themselves as selfemployed because it suited their sole employers tax arrangements. Chapter 3 described the characteristics of the graduates in the sample surveyed. To help assess the likely career patterns of different types of graduates, the sample was divided into three distinct groups: ! those who had any experience of self-employment since graduating; ! those who had considered self-employment as a career option either on entering higher education, or at the time of graduation; and ! those who had no interest in self-employment. What emerged from the analysis of the characteristics of the graduates was that the level of self-employment among the purposive sample was high. A relatively high proportion of graduates had also considered self-employment as a career option, although they were not yet so at the time of the survey.
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This means, as well, that when these graduates decide to enter self-employment, they would do so as people who have given the idea thoughtful consideration. More specifically the survey showed that: ! Women were more likely than men to have some experience of self-employment. They were also more willing to consider a career in self-employment. ! Self-employment was influenced by the degree course. The majority of those in self-employment graduated in the creative arts and design. ! There was some association, albeit slight, between degree class and self-employment. Graduates with better class degrees were more likely to have experience of selfemployment. ! A family background in self-employment was a significant factor influencing a labour market status in self-employment. Chapter 4 focused on the career patterns of the graduates, in particular their early career experiences. The initial destination of the graduates, when assessed one year after graduation, showed that: ! The majority of graduates were in employment as employees; but one out of every eight was self-employed. ! Self-employed levels varied according to the subject of study; self-employment was highest among media and film graduates; self-employment among art and design graduates was about the average for the sample. ! Self-employment was significantly high among science graduates, although the numbers involved here were small. The significant finding here was that although the subject studied has some influence on self-employment levels, there was greater willingness by graduates (of all disciplines) to include self-employment in their portfolio of labour market activities. Two years on: ! The level of self-employment had increased from one in eight graduates to less than one in seven. ! There was greater movement from further study into selfemployment, more graduates with first class degrees made this transition. ! There was less movement from unemployment into selfemployment. Three years on: ! The level of self-employment had increased for graduates who had been out in the labour market that long.
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! The labour market status of all groups of graduates had stabilised, and there was little variation according to gender, age or subject of study. At the time of the survey: ! the majority of graduates were in employment, about threequarters as employees; and ! two out of every five graduates were self-employed. The evidence from the analysis of career patterns showed rising levels of self-employment over time. The level of self-employment for the sample increased at each successive sampling point, and was considerably higher in comparison with the graduate population as a whole. This suggests that self-employment was increasingly becoming an important career destination for those graduates. Our findings also showed that the decision to enter self-employment was taken at an earlier stage in the careers of graduates. The aspiration for self-employment and business start-up was also high, and was underlined by the fact that a significantly high proportion of graduates had a business idea they would have liked to pursue. But the evidence also pointed to the fact that aspiration did not necessarily translate into deed. The issue for policy is to harness, stimulate and nurture the ideas and translate them into businesses. Chapter 5 looked at the graduates experience in the labour market, in terms of their jobs and utilisation of their higher education qualifications in those jobs. ! Job changes were, on the whole, less frequent. ! The majority of graduates worked full time, but the incidence was highest among graduates with no interest in selfemployment; by contrast, graduates with experience of selfemployment were more likely to work part time in their first job. ! The self-employed graduates were the most transient employees, and spent the least time working in that capacity. ! Utilisation of degrees varied, although on the whole, the majority of graduates thought a degree was helpful in getting their first job. ! The majority of graduates worked in the other services sector. What emerged from the analysis of their employment experiences was that graduates with no interest in self-employment were more likely to follow a traditional employment route, with a fulltime job in a large organisation. By contrast, those with selfemployment experience opted for smaller organisations. Importantly, the findings here lend support to our earlier finding about how graduates make decisions about their careers very early on and stick to those decisions.
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Chapter 6 presented the data on the sub-sample of graduates who were self-employed either at the time of the survey, or had been at any time after graduating with their first degrees. Analysis of the combination of career profiles of the whole sample showed the most common career routes of graduates. ! One-fifth of graduates entered self-employment, and this was their main activity. ! Between four and five per cent of each of the cohorts were in continuous self-employment. ! More graduates entered self-employment after a spell as employees than from unemployment. ! There was only little movement out of self-employment. The graduates in the sub-sample chose self-employment for a number of factors: ! Independence/autonomy and flexibility were the principal motivation. ! Financial rewards were not very high on their list of motivating factors, nor was security of employment. Extrinsic factors which influenced the choice of self-employment included: ! Family background, in particular parental influence. ! Work experience, organisations. in particular placement in small
The graduates were engaged in a combination of activities rather than only one type of self-employment: ! The most popular form of self-employment was providing services to customers. ! Production activity was the next most popular, with graduates producing things to sell. ! Very few worked within a family business. ! There were more women freelancers than men. ! Three in five self-employed graduates worked on their own (ie with no employees). ! The graduates were significant employers, and had altogether just under 2,000 employees. ! The majority worked an average of 40 hours a week, but a small proportion worked in excess of 60 hours. ! Earning levels were skewed; the median annual salary was 8,000, and three-quarters earned 18,000. ! Variations in earning levels reflected the length of time in the labour market.
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From their characteristics, two types of graduate self-employment emerged. One was the self-employed business which was likely to only support the owner-manager. The second was the new business start-up with employment growth potential. These latter were more likely to be started by graduates whose motivation stretched beyond the immediate, and to the longterm. The survival rates for these businesses also appeared to be high, given that their owner managers had been so engaged for three years or more. Skills issues were important to the self-employed graduates. They relied extensively on their innovative and creative skills, which also they believed they had developed to a considerable extent at university. Other than this, there were significant gaps in acquiring and developing generic business skills such as accounting, book-keeping, product pricing, selling and, importantly, business planning. The skill deficiencies were significant constraints on business start-up. Self-employed graduates relied on a variety of information sources for business advice and support: ! The initial information sources were in higher education, from the course and tutors. ! A high proportion of self-employed graduates did not use the careers service for information or advice. ! The most frequently used formal sources of advice were banks, solicitors, TECs and Business Link. ! The graduates also relied on more informal sources, such as family and friends and other personal networks. The latter remained important to them, and was shown by their continuing, on-going relationship with these. ! Graduates rated the informal sources as the most useful for information, and for business advice and support. ! The graduates considered higher education sources, in particular careers service staff, the least useful for information on business advice and support. Taken together, the results from the analyses of skills and business advice and support pointed to significant gaps between what self-employed graduates expected from higher education institutions, and what was actually provided. The self-employed graduates had mixed views on different aspects of their careers. Overall, however, they were satisfied with the way their careers had developed to date. Specifically: ! they were satisfied with the level of responsibility they had in their self-employment, and the autonomy enjoined with it; and
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! they were looking to the future with considerable optimism, and saw their careers continuing in self-employment. The issue of whether self-employment should be reflected in the curriculum in higher education was one of the objectives of the study. Continuing on the theme of self-employment as an important career destination, Chapter 7 focused on the contribution that higher education makes towards such a career. The need for self-employment to be reflected in careers advice and guidance was considered to be important, particularly as it is acknowledged to have an impact on determining career choice and destination. Drawing on a blueprint by Hailey, the study identified four principal areas where careers advisers in higher education could play an important role: ! promoting business awareness ! fostering entrepreneurial attributes among graduates ! contributing towards skills training ! helping in business planning. The specific contribution careers services could make in each area was considered to depend on three factors: ! Prevailing cultural attitudes and ethos careers services were widely perceived by some enterprise agencies as well as self-employed graduates, to look less favourably on selfemployment as an important career destination; and this, in spite of the fact that a majority of the careers services surveyed indicated it was important. ! Available access to expertise, internal or external careers services were perceived to lack expertise in-house to enable them to provide relevant advice and support for graduates contemplating self-employment. ! The resources devoted to self-employment very little of the resources of careers services was devoted to activities connected with self-employment. The conclusion that emerged from the review of careers services activity was the need to develop expertise among staff to review and provide access to support, both internally and externally, that graduates contemplating self-employment would need or find useful. Although there are examples of good practice, in this respect, they are too few and far between. The need for good practice to be more widely disseminated is one of the principal objectives of this study. To that extent, this research report forms one part of the studys dissemination. Good practice materials have also been developed, drawing on the findings of this study and practice elsewhere among HEIs, and will be widely available to practitioners.
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Lessons worthy of dissemination

As might be expected from a large-scale study of this kind, some difficulties were encountered in the course of the project. Some of these have been alluded to in Section 3. In the main, they related to processes, products and outcomes. These are discussed in detail below.
Qualitative interviews
A great deal of resources (in terms of man-hours) was used in identifying the key players to be included in the exploratory interviews. Because there was a concurrent HEQED project on Graduate Business Start-ups, it was necessary to encourage participation, whilst at the same time avoiding interview fatigue, by the two research teams visiting the same respondents. In the case of this project, it meant excluding representatives of TECs, Business Links and Enterprise Agencies, where they existed separately, from these exploratory interviews. This in turn meant the project team had to contact a much larger sample of organisations than was anticipated in order to achieve the aims of that stage of the project. Although the representatives of the organisations were cooperative when the initial contact was made, it was not always possible to determine before the scheduled interviews that the organisations themselves or the individuals to be interrogated were actually involved in the provision of support or other activities relevant for the client group under study, or could talk confidently about the subject matter under consideration. Consequently, and as might be expected, there was variation in the range and quality of information obtained from the key players. In some cases it was clear that the key players had only superficial contact with HEIs, as their services were targeted at different client groups than graduates. Although much valuable information emerged from the interviews with representatives of the key organisations, this was not counterbalanced to the same extent by information from the perspective of HEIs. The information for the HE sector was provided by representatives of selected careers services only. It was not possible to solicit the views of a much broader range of stakeholders within the sector. Consequently, it was not always possible to gain a clearer view of what constituted existing good practice, particularly from HEIs which made special provision or support for graduates contemplating careers in self-employment. In some HEIs, too, it was evident that the provision and support was provided not by the careers services, but individual departments/faculties. It would have been more helpful, in such circumstances, to obtain the views from representatives of such departments about their current practice.
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One way of dealing in future with some of the difficulties highlighted from this stage of the project would be to undertake a pre-interview vetting exercise, using a short structured questionnaire to establish both the organisations and the respondents capabilities to provide the required (ie relevant) information.
Quantitative surveys
We have already alluded to the problems encountered in the sampling strategy adopted for the survey of graduates from the HEIs included in the sample. The response from the survey highlighted some of the difficulties involved in undertaking a longitudinal study of this kind. A large number of questionnaires were returned by the Post Office, where the intended respondent was no longer at the address to which they were sent. The highest returns (and hence the lowest response) were among the oldest graduate cohort. This suggests clearly that HEIs may have difficulty in maintaining up-to-date addresses of their past graduates. A study of this kind could be useful in helping HEIs update their database of alumni if provision could be made to inform the HEIs of graduates who cannot be traced at their last known address. To this end, IES will endeavour to collate the Post Office returns and pass on the information to the respective HEIs to enable them update their database accordingly. In terms of the response rate, it is possible that this could have been boosted by sending out a second reminder targeted specifically at the non-respondents. Indeed, a considerable number of completed questionnaires were returned well after the survey was closed, but could not be used in the data analysis. In practice, though, it was difficult to target non-respondents, as the project team did not have direct access to the addresses of the graduates. Consequently, it was considered inappropriate to send out a blanket second reminder. In future, it would be important for researchers undertaking such a study to work closely with HEIs, to enable addresses to be matched to numbered questionnaires which can, subsequently, be checked off when questionnaires (both completed and undelivered) are returned. This, in turn, will ensure reminders are targeted more specifically at non-respondents.
Development of Good Practice Guide

The final product from the development process was intended to be a document which, among other things, would help raise awareness among HE practitioners of self-employment, and give practical advice on better linking with sources of support and assistance for business start-ups. The methodology adopted for this stage, the Delphi approach, was intended to ensure that the final output also reflected the views of a wide range of experts
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and opinion formers. The Guide utilised information gathered from the interviews and surveys, on the skills identified as needed by graduates who wanted to start their own business or go into self-employment, matching these against the provision of business and enterprise support throughout higher education. In practice, there were difficulties during this stage of the project, throwing into relief some of the problems which arise from working in a research partnership. More particularly, there were difficulties relating to the timing of delivery and the quality of output. A number of possible reasons could explain some of these difficulties, although two stood out clearly. First, it was undoubtedly the case that the Steering Group focused more of its attention on the main research and the production of the research report. As a result, less attention was given to the development of the Guide, particularly within the (short) timescale available. Secondly, compared with the main research, the specification for the Guide did not spell out in detail what was expected, in terms of phasing of the work and quality of output. Thirdly, and arising mainly from the two preceding factors, there appeared to be a misunderstanding on the part of the partners, of what was required and the amount of work (man-hours) that this phase of the project demanded. Consequently, it was not possible for the partners to carry out the Delphi exercise to the extent that would have elicited a wider range of views and current practice. This, in turn, meant that the Guide reflected mostly the partners views of limited practice only. A draft of Good Practice has now been completed. The results will form a Working Paper which will be made available to all HE career services, AgCAS and other stakeholders for more exhaustive comment. The Good Practice Guide is appended to this report as Annex 1. Among the lessons to be learned from this experience is that successful partnership arrangements require clearly stated objectives and outputs, and how these are to be achieved. It is important that project teams, and for that matter steering groups as well, anticipate the difficulties that are likely to arise from all aspects of a project, including the minor outputs. This is particularly so where project partners have limited research experience.
Collaboration and networking

At an early stage of the project, the project team established contact with other researchers studying the role of TECs and their partners in supporting graduate enterprise. This collaboration was helpful, and enabled the project team to identify, for inclusion in the exploratory interviews, representatives of TEC-sponsored initiatives aimed at graduates. This was one aspect of a more formal network (set up by the
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HEQED) of researchers working on a number of DfEE projects on Graduate Business Start-ups and Creativity & Innovation. As a concept, the idea of a networking arrangement of this kind was useful in so far as it raised expectation of exploration of possible synergies between projects. In practice, the timing of the different projects was such that it was not always possible to share the results of research as they emerged, nor to discuss their implications for other on-going studies. Nevertheless, the network meetings enabled discussion and drawing up of evaluation and dissemination strategies for the different projects. It is likely that as the different projects are completed, common issues and themes may emerge which will enable the problems faced by new graduate entrants to business to be addressed through more appropriate action.
Dissemination
As was mentioned at the beginning of this section, the main research report was published as an IES report in July 1999, titled Graduates Mean Business: a study of graduate self-employment and business start-ups (IES Report 357, ISBN 1-85184-268-1). Practical difficulties made it impossible to launch the report at a forum for HE careers advisors and teaching staff, as was originally intended. Instead, the report was launched with a press release and circulation of free research summaries to all national newspapers, specialist business press, and to business editors of radio and television media. Following its launch, the report has been given further publicity through interviews on national radio (BBCs PM programme) and local television (Meridian TV). Copies of the report and good practice guidelines will be given to all HEI career services. The timing of this wider dissemination, however, will depend on how quickly the Guide is developed. The possibility of presentation of the findings of the research report at the biennial conference of AgCAS (in September 1999) was explored, but was found to be impractical, as the theme for that conference was concerned principally with other issues concerning higher education. It is still intended that project team members will write articles for careers, higher education and other relevant publications.
HEI plans to build on the project and outcomes

It is expected that the outcomes, in terms of the research report and Good Practice Guide, would be disseminated throughout the wider HE community. In particular, HE careers services which have little or no experience of issues of self-employment among its graduate population would be encouraged to draw on the findings from the project as a means of addressing some of
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the problems they are likely to encounter when providing careers guidance and advice.
Possible follow-up of the project

The project has broken new ground by drawing attention to the fact that self-employment is becoming an important career destination for new graduates. As a development programme, it was inevitable that the study was on a comparatively small scale. There is scope for a more extensive study to be undertaken to explore in greater detail evidence of self-employment levels among a more representative sample of new graduates in higher education throughout the UK. This would provide policy makers an opportunity to determine the impact of specific regional factors on self-employment opportunities for graduates. It would also enable an assessment of whether and how self-employed graduates differ from the rest. For example, whether there are likely to be inherent advantages which lead to more successful business start-ups.
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Annexe 1:
A Good Practice Guide for Higher Education Careers Services
1. Introduction Background and Purpose of the Guide 2. Existing Provision within Higher Education Careers Services Current provision, described by Careers Services who responded to the Graduates Mean Business questionnaire Provision to raise awareness, and provision to meet the needs of those already considering self employment Background to Good Practice 3. Graduates Views: In retrospect what graduates in the study would have liked: Information, Training, Changes in Cultures 4. Developments Under Way Points to factors affecting the design of provision and illustrates the breadth of provision across a range of disciplines and institutions: Projects designed to develop Entrepreneurial Skills Entrepreneurial Skills within Career Management Programmes Other Entrepreneurial Activities on Campus 5. Examples of Good Practice: Undergraduate Focus Institutional and Resource Issues, and Student Attitudes Career Management & Enterprise Skills and Course Provision Examples of Good Practice & Possible Models Use of Information Technology 6. Postgraduate Provision: Research, Masters and Business Toolkit. Organisations offering Training in Business Start-Up 7 Resources Available: A Review of the Resources available to those hoping to start their own business
8. Recommendations Operational & Policy Recommendations for Careers services in Higher Education, and others.
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1.
Introduction
This Guide has been produced with funding from the Department for Education and Employment (DfEE), under the Graduate Business Start-Up theme of the 1997 Higher Education and Employment prospectus. It aims to set out for Careers Services in higher education: ! examples of the provision for business and enterprise skills, within and without the higher education curriculum, which have been developed over recent years ! sources of information for students and careers services ! the range of postgraduate provision It refers to findings from the companion survey undertaken by the Institute for Employment Studies (IES) for DfEE and published recently in the report, Graduates mean Business (Tackey and Perryman 1999). Inter alia, this examined the provision available to graduates interested in starting their own business, through both higher education careers services and other agencies, asked them to reflect on their own experiences and produced evidence for the characteristics of those who were successful in establishing their own enterprise. Self employment, as an immediate or subsequent destination for graduates, has enjoyed a higher profile over the last few years. This is the result of various factors including: ! introduction of policies by government to encourage the establishment of small businesses ! swings in the volume of unemployment experienced by new and recent graduates ! increase in freelance working and portfolio careers especially in buoyant sectors of the economy eg creative arts, media, Information Technology. This has brought fresh challenges to some higher education Careers Services, notably those with a significant proportion of students on art, design and computing courses. In some institutions between 10% and 15% of their graduates may work freelance or for their own business within a couple of years after completing their studies. As a result some students are seeking to explore the implications of working in this way before
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graduation, while others return to higher education Careers Services in the hope of accessing information about this option. However, interest in self employment remains patchy across higher education and only 1% of graduates are recorded as working this way in the First Destination Survey produced by the Higher Education Statistics Agency (HESA) and reflecting the position on 31 December of the year of graduation. This is reflected in the findings of the survey undertaken by IES into existing practice by higher education Careers Services. Because their students express comparatively little interest in self employment, many services target hard pressed resources at areas of greater demand. In only a few institutions has there been extensive provision of information and advice about this option. The Good Practice Guide seeks to make careers services throughout higher education aware of some of these developments and to offer advice to those services who wish to expand provision with limited resources. It is clear both from the results of the research undertaken by IES and from other surveys that many graduates, interested in self employment, find difficulty in accessing appropriate support, information and advice. We hope that our colleagues will find the contents of the Good Practice Guide helpful in enabling them to cater more satisfactorily for these graduates within finite resources. We work in very different institutions one a university founded in the Sixties, the other, a federation of five colleges, specialising in art, communication and design. Although we have approached this task from different perspectives, we have a common aim. We are keen to ensure that those of our graduates who wish to set up their own business whether on leaving college or subsequently can do so successfully. We have both striven to improve provision for students interested in this option and see the Good Practice Guide as a way of exploring ideas and extending knowledge amongst colleagues. We would like to thank our colleagues from the Association of Graduate Careers Advisory Services (AGCAS) for their assistance in compiling this Guide. Their contributions of time, both to this exercise and the completion of the IES Survey, expertise in commenting on the draft contents, and encouragement, have been much appreciated. Carolyn Morris Selina Springbett July 1999
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2.
Existing Provision within Higher Education Careers Services
Current provision
In responding to the Graduates Mean Business questionnaire, Careers Services describe provision ! to raise awareness. The most common are: ! ! ! ! talks by specialists, such as Business Initiative Business Link briefings including self employment in Careers Fairs workshops run by Careers Advisers
These are mentioned with equal frequency. Others include careers education options for current students and one day workshops for past students. Careers Services often include graduates who have set up their own businesses in career events. These may be targeted at specific groups such as a Careers Day for 2nd year undergraduates in Sussexs School of Cognitive and Computing Sciences, where recent graduates who have set up multi-media and systems companies have been among recent presenters. These may be part of a mainstream programme of career events: with speakers from the Princes Youth Business Trust, recent graduates talking through their own thinking and their own experiences there are a number of ways in which Careers Services tackle the questions of raising awareness, and of providing stimulus and introductory information, people and resources. Another approach is to include features on Working for Yourself in vacancy publications, to make sure job seekers are thinking about the possibility of self-employment as well as being employed. For example, Sussex Universitys graduate vacancy list ran a feature 42 of last years Sussex graduates are working for themselves.... The article pointed to both expected, (computer consultant, journalist) and unexpected, (Alpaca stud
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farmer) examples, and ran through: Why Work for Yourself ? Is Self-employment for Me? Where do 1 start? and Finance and Useful Contacts. ! To meet the needs of those students already considering selfemployment Careers Services are providing ! ! ! ! ! ! ! ! ! information on where to get help workshops and presentations links with Enterprise Agencies/Business Link speakers at Fairs individual discussion of plans involvement with Young Enterprise Alumni databases Start your Own Business courses and introductions to other staff members in the Institution with particular links with enterprise.
Background to Good Practice

Traditionally Careers Services have acted as enablers and facilitators , providing signposting expertise: the knowledge of where and how it is appropriate to refer students to specialist agencies. This is particularly salient to the needs of this group, not least because of the other attributes which would-be entrepreneurs require. Perhaps this is not surprising. Its not thought to be a disadvantage that Careers Services operate without staff experienced in the several hundred other career options available to their student clients. Their professionalism is seen to lie elsewhere. Can we learn anything about good practice from our analysis of the constraints Careers Services reported? Given finite resources, Careers Services have to make decisions about provision which relate to demand. The concern for Careers Services is how to balance provision on opportunities most recognise as important, against the demand from students for information on other areas. In this context, to most Services it makes sense to advertise and make links with other agencies in the community with specialist expertise and resources.
Implications for Careers Services Work with Past Students

Graduates Mean Business found many becoming self-employed after periods of employment/further study. Careers Service provision for graduates a year or two out is patchy and
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unpredictable. But our evidence suggests there is a substantial group of graduates who move into self employment some years after graduation. For some graduates the idea of becoming self employed comes only after experience of the work place; for some, the notion has been around for longer, perhaps since University, developing with experience of the business world, perhaps in employment in an SME. It may, as we know from Graduates Mean Business, be fostered both by good experiences in the work place, and by bad, frustrating ones. Some graduates have consciously been garnering skills, as it might be hard edged skills in knowledge of markets and pricing strategies; or skills in executing their particular specialism or discipline, eg web design, in editing text, in manufacturing or in graphic design. Working in both large and small companies can provide helpful experience and skills. When graduates are ready to look for information and support, then Careers Services may no longer be able to help them, because they are no longer eligible for their services. Current proposals by AgCAS and CSU to extend the network of provision and strengthen Careers Services for graduates in the early years after graduation are particularly welcome for potential entrepreneurs, as it seems that this group may be particularly prone to failing between gaps in provision.
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3.
Graduates Views: in Retrospect, what they would have liked

From the survey it is clear there are a number of things graduates would have liked, though not all of our entrepreneurs are convinced their skills can be taught.
Information on
how to: ! become self-employed, freelance/contract worker ! apply for funding ! get support, advice once you have left university ! work freelance and how to set up business where to learn ! some of the know-how skills, eg how to keep basic books, (as distinct from those who wanted to be taught those book keeping skills as part of their curriculum)
Training in specific skills

generic personal and business skills: how to present oneself, how important it is to get on well with people on a personal level. This ability got me more work than any skill skills can always be learnt but not communication skills in dealing with people ! business skills, such as pricing ! IT skills ! selling and marketing ! accountancy ! stress management ! Tax basic understanding of self employment jargon, ie Tax codes, NI contributions etc.
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Some want more information on how to apply existing skills

! How to employ the skills we learnt in the business world
Others would have liked

! individual contacts with people doing it now ! a self-employed version of work experience ! other information inputs on future business activity, pointing to new markets and changes in the economy affecting business opportunities. Another group want changes in institutional cultures: ! The whole ethos of the college was anti-commercialism. The notion here is that Universities should be seeking to create entrepreneurs, rather than being geared to graduate jobs: ! Training people to work for a company, rather than ourselves, sums up the critique here. But it must also be pointed out that there is another view. I wasnt actually taught business skills in my degree and Im very glad that was the case. Whilst at university I was active in creating societies, activities that required business skills for me this is far more important than teaching! Other unpublished research reinforces much which is reflected in this survey. However, many graduates recognise that, while studying, they did not always take advantage of or value the provision which was available, and that their aspirations, attitudes and requirements change after leaving education. In some cases, experience of freelance work or setting up in business is the trigger for seeking support. One of the issues familiar to Careers Services is the difficulty of ensuring appropriate advice, guidance and information is available when the student or graduate wishes to have access and could derive maximum benefit.
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4.
Developments Under Way: Some Initiatives

Over recent years, a number of institutions have piloted initiatives which aim to encourage students to identify and/ or develop entrepreneurial skills through a range of activities. We have included some examples below which have been selected to illustrate the breadth of provision available across a range of disciplines and institutions with contrasting missions and student populations. One of the messages from careers and academic staff involved in developing these initiatives is the importance of ensuring that provision reflects the aspirations and interests of the students involved. In practice, this means that provision, whether embedded in the curriculum or offered as a bolt on, should be designed with the following in mind: ! the profile of the student body at the institution ! the discipline base of the students involved ! their learning styles ! their aims and aspirations post graduation ! the structure of the market place which they are likely to enter. Some of these themes are explored in subsequent chapters of the Guide There are a number of initiatives in existence: here are some examples of the range of initiatives which are available in Art, Science and cross-curricular, from a range of institutions.
Projects designed to develop Entrepreneurial Skills:

The Gallery Initiative
This is a University of Portsmouth initiative designed as an opportunity for students to develop business skills through managing an exhibition in a gallery Art Design and Media Illustration students are split into three teams, each supported by a Business Adviser: a Management Team, Promotions and Marketing team and an Operations /Technical/Hanging team.
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Support includes business seminars and seminars by gallery managers, team building and business exercises. Advice on writing a business plan and presentation of team plans are also involved. Students are also responsible for generating finance for the project through sponsorship or whatever means they identify.
The Biotechnology Young Entrepreneurs Scheme (Biotech YES)

This is a competition developed to introduce students and researchers in the Biosciences to the commercial potential of scientific and technological discoveries and, to the requirements for the development of a biotechnology company. It is jointly organised by the BBSRC (Biotechnology and Biological Sciences Research Council) and the University of Nottingham. This scheme introduces Bioscience students to the key business skills important in setting up a Biotech company. YES begins with intensive regional weekend induction workshops where teams of undergraduate and postgraduate/ postdoctoral scientists are introduced to the key aspects of preparing a business plan and setting up a Bioscience company Postgraduate teams spend a further 2 days developing their plans, with advice from a team of mentors, and then make oral presentations of their plans for the start up company to a judging panel of Venture Capitalists. Undergraduates return to their universities to prepare written business plans, submitted for judging after 6 weeks. Undergraduate and postgraduate teams are then selected from each of the regions to present their plans. In 1998 teams from the Universities of Aberdeen, Cambridge, Leeds, Surrey, UCL and the John Innes Centre, Norwich were invited to present their business plans at the Postgraduate/postdoctoral final.
Entrepreneurial Skills within Career Management Programmes

A curriculum based programme developing generic career management skills with explicit focus on the self-employed sector is Personal and Professional Development at the University College of Ripon and York St. John. The modules are a compulsory part of the Colleges combined Honours schemes. They aim to give students knowledge, skills and experiences relevant to a variety of careers in the private, public, voluntary and self-employed sectors .
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Studying a business plan is part of what is on offer. There is an emphasis on experiential learning and skill development, and students taking responsibility for their learning.
A Revitalised Enterprise Culture?

The Chancellor has announced a series of measure designed to build stronger links between Higher Education and Industry, through eight 8 new Institutes of Enterprise in Universities. The government proposes to put 25 million into these. Incubator Units already exist on a number of campuses: Campus Ventures is one example. Manchester Universitys high technology business incubator, offering a range of business support services to start-up businesses. Its mission is to enable HEIs to play an increasing role in the creation of wealth and employment through the provision of a place of support, in which technologists and scientists can develop skills, through participation in the origination and development of businesses. The Sussex Innovation Centre, based on the University of Sussex campus, was established to encourage and support the creation and growth of technology-based businesses in the Sussex region. One aspect of this support is to provide incubator space for new technology and knowledge-based companies. The aims and services are typical of many, with customised service, laboratory space, personnel who can provide technical, management, marketing and other specialist support, and networking. The Centre works closely with the Universities of Sussex and Brighton, Brighton College of Technology, local companies and individual inventors.
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5.
Examples of Good Practice: Undergraduate Focus

From the survey of higher education careers services, it is clear that there is a wide range of activity available across the sector to those students interested in becoming self employed or setting up in business after graduation. However this provision is patchy, delivered by a range of agencies both within and without higher education, and frequently perceived as of interest to only a small proportion of the student body. There are a number of factors influencing the level of provision at individual higher education institutions, some of which were identified in Graduates Mean Business.
Institutional Issues
! mission and purpose of the institution. HEIs cater for different markets both in terms of students and employers. Some have a research focus, others a commitment to widening participation, for example. ! organisation of the curriculum. In the experience of many careers advisers, it is more feasible to offer explicit enterprise and career management skills provision as part of a modular degree scheme. ! attitudes of staff. Some staff see their role in the context of academic teaching and research based in their own discipline, with provision for issues germane to employability the responsibility of other parts of the institution.
Resource Issues
! Level of Careers Service and other funding. Levels of funding vary considerably with predictable consequences for the breadth of provision available. ! Success in attracting appropriate external funding. In a number of HEIs funding from the Enterprise in Higher Education Initiative, and recent programmes supported by DfEE, for example, have facilitated the piloting of career management and enterprise activities within the curriculum.
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Attitudes of Students
! Some students come to university primarily for an educational experience or to enhance their creative development, for instance. Others have more specific aims, having chosen a course which offers exemptions from professional examinations or provides a vocational training. The number of such courses within an institution can radically affect the culture and therefore the receptiveness to enterprise provision within the curriculum. ! lack of awareness amongst students about the facilities available. ! lack of interest amongst undergraduates in these options. While many consider self employment as a possibility, few actively explore the implications. In this, self employment is no different from the number of options which most students consider and discard or defer until a more appropriate time. From a number of the responses to the survey of graduates, it is clear that students are ambivalent about the inclusion of business options in undergraduate programmes. Some considered that business options, variously defined, should be taught as part of their degree, others regarded their time in higher education as an opportunity to explore exclusively academic and creative options. Against this background, a number of HEIs are making useful provision in support of students aspirations to work as entrepreneurs. In some cases, this has been developed in partnership with external agencies such as the Princes Youth Business Trust (PYBT) or Shell LiveWire. The Seven Skills of Enterprise identified by the latter have formed the basis of a pilot project, funded by DfEE, at Camberwell College of Arts. Creative Futures 2 introduced students to many of the skills required to work as a freelance practitioner in the creative industries and included the production of a business plan. However, even agencies such as PYBT and LiveWire, who were highly rated in the graduate survey, were used by only between 15% and 40% of respondents. This raises issues about the need for more effective signposting of the resources available and possibly a re-examination of the remit and modus operandi of all the agencies involved and their assumptions about the attitudes and awareness of potential entrepreneurs.
Career Management and Enterprise Skills

Students have various opinions about the skills, opportunities and difficulties faced by those seeking to run their own business. In part this can be seen in the responses to the graduate survey.
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This identified two clusters of skills: those which can be defined as career management skills and, as such, are of value to all students and enterprise skills, which are of particular interest to those hoping to establish their own businesses or work as freelancers. There are various definitions of both career management and enterprise skills available, including that by LiveWire referred to above. For the purpose of this Guide, we have distinguished between the personal skills, many of which would appear on any list of Career Management skills and are generic, and business skills, many of which are technical and knowledge based.
Course Provision
Provision to enable students to identify and develop career management skills is becoming widespread. It takes various forms: ! careers modules as a compulsory/ optional part of a degree programme ! bolt-on programmes offered by Careers Services or departments, often in collaboration ! free standing career exploration workshops run by Careers Services, often in concert with the opportunity to use Prospect(HE) or similar computer based careers exploration programmes. The opportunity to acquire enterprise skills is available to students in some of the following formats: ! as an accredited module/option in a degree programme ! through workshops offered by Careers Services, sometimes in collaboration with external agencies ! through programmes run by student societies, eg Student Industrial Society or external agencies. The focus of these options can vary from the acquisition of skills eg book keeping to information about potential sources of practical support. In some HEIs, students are enabled to identify and develop the personal skills necessary for success in this sector eg networking, negotiation, self promotion. Networking is a good example of a skill critical to success as a entrepreneur. Learning to use your networks and developing skill and confidence in so doing can be encouraged and taught. Its importance is reinforced by the findings of the graduate survey where various personal networks and forms of support were identified as important by respondents.
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Examples of Good Practice

There is some excellent provision in higher, education, which has certain characteristics: ! relevance to the aspiration of students ! designed and delivered in a manner sympathetic to their learning styles and the context of their studies ! delivered by staff who are credible in this context, whether salaried or visiting tutors ! capacity to enable students to identify and develop the skills required with confidence.
Possible Models
The most appropriate model will vary from institution to institution. From the survey of Careers Services, the following merit consideration: ! Enterprise/Entrepreneur Module: usually available to students in the penultimate/ final year of their programme with a focus on the identification and development of various enterprise skills including networking, decision making; the acquisition of business skills and procedures eg book keeping, taxation and the production of a business plan including market research, cash flow forecasts. Such modules may include scope for appropriate work experience or mentoring (see below). ! Mentor Schemes: These can link students with self employed/ small business people with a view to providing information, guidance and advice. For success, thorough preparation of both students and mentors is important. The relationship can be time consuming for both parties unless clear parameters are established. At the London College of Printing, students on HND Sound Music Design Technologies have been linked with mentors from various sectors of the music industry in London. This has enabled them to identify and develop some of the skills required to make a career in the industry with the support and guidance of established figures. ! Briefing Sessions/Forums: Often by representatives from Business link, other support agencies and newly fledged entrepreneurs in attendance. The experiences of the latter are of particular interest and immediacy to students. ! Fairs: These can bring together the agencies offering support, alumni running their own businesses, banks and other experts in an informal setting. They offer a forum both for those committed to this option and the student undertaking tentative exploration. The universities of Westminster and
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York have run successful fairs for past and present students interested in different ways of working. ! Alumni Networks: Many universities have established alumni associations which offer past and present students the opportunity to make contact with those in particular occupations. The University of Sussex Graduate Network brings together those who have established their own business and offers networking opportunities to recent graduates. ! Specialist Provision: Organisations such as Workable, Royal National Institute for the Blind (RNIB), the National Mentoring Consortium, offer opportunities to students from particular backgrounds or with a variety of needs. There is scope for increasing this provision in response to local conditions through collaboration between the agencies involved. Each of these options has different implications for the level of resources required. One of the dilemmas for many higher education Careers Services is whether to devote significant resources to the promotion of those opportunities which are of immediate interest to a limited number of undergraduates. With the considerable variation in the provision which individual HEIs make for past students, there can be difficulties for graduates in accessing information and guidance.
Use of Information Technology

With the advent of sophisticated information technology (IT) provision both within higher education and the wider community, there exists another avenue through which information and in some cases advice can be disseminated the Internet. Increasingly organisations are making available details of the support, guidance and facilities which they offer through the world wide web and e-mail query services. With funding from the Business Start -up theme of the same DfEE initiative, the London Institute Careers Service has created an Enterprise database with details of organisations, predominantly regional but also national, who provide support of all kinds to students and graduates interested in business start up. The London Institutes specialisation in the fields of arts, communication and design is reflected in the focus of the database. However, once it is available through the Careers Services web site, its contents will be widely accessible. In designing and producing the database, the Careers Service has encountered one of the difficulties mentioned by respondents to the graduate survey the problem of accessing current information about the organisations active in this field. Since the Institute started this project, there have been changes in the way
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in which local Business Links operate for example. It proved challenging for staff, skilled in eliciting information and with a knowledge of the context, to discover details of the provision available. In this situation, it is hardly surprising that recent graduates experience difficulties. One of the unpredicted recommendations of the report on the Institutes project will be that there should be stability in the provision for both graduates and others seeking to set up in business, both to improve access and facilitate ongoing qualitative and quantitative evaluation.
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6.
Postgraduate Provision
Over recent years, there has been a significant increase in the opportunities to study enterprise and acquire business skills through higher, further and adult education. The courses available vary considerably in their aims, focus and content. There are two broad categories: ! those offering the opportunity to undertake primarily academic research and exploration ie PhD and Masters courses ! practical diploma and certificate courses which provide an introduction to business techniques and procedures. However, with the introduction of credit rating and transfer, it is becoming easier for students to move from one kind of provision to another. Some of the latter now offer a route for students to move from a practical to a research qualification. With the current stress on the importance of lifelong learning, it is increasingly likely that provision of this kind will become more widely available not only on a full time and part time basis but also through distance learning, delivered through a variety of media. The current provision can be distinguished as follows, ! Research: the opportunity to undertake research into issues relevant to small businesses, entrepreneurship, IT and small firms, self employment etc. This usually leads to PhD/ M Phil and is available at about 20 universities ! Masters Courses: these vary in content. Many include the opportunity to study for a postgraduate certificate or diploma, should students wish to concentrate on the acquisition of business skills rather than produce a dissertation. About 10 HEIs offer this provision, some of which is targeted at particular sectors of the economy eg London Institute MA/PGDip/PGCert. Creative Arts Management. Many of these courses are available on both a full and part time basis. ! Business Toolkit: There are a large number of organisations who offer training to graduates seeking to acquire business skills. The content of these course and eligibility varies considerably. Nevertheless all are intended to provide support and business skills eg book keeping, marketing for those hoping to establish their own enterprise.
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Organisations Offering Training in Business Start-up,

There are a large number of organisations who provide support and training to enable graduates to acquire a business toolkit. The courses can vary in length from a day to several months usually on a part time basis in the case of the latter. Many also provide IT support, office facilities and access to financial and other practical advice. Some of the most important sources of help, available nationwide are listed below. Training and Enterprise Councils (TECs) most TECs provide a range of services including support for business start-up, Setting Up in Business seminars, access to appropriate expert advice eg finance, law, tax. TECs are likely to disappear over the next couple of years if the proposals in a recent White pare are implemented. Business Link: Government backed, Business links aim to help businesses of all sizes on a range of issues eg raising money, arranging training. Small Business Centres: often connected to Business Links and TECs, these offer professional advice and help from counsellors with business experience. They frequently support business start-up in particular geographical areas and may have knowledge of local grants and facilities. Trade Associations/Professional Bodies: many trade associations and professional bodies offer support and training with a focus on assistance for new entrants to the market. They will concentrate on entry to the industry in which they are active. Areas with a high number of small businesses and freelance staff eg design, media are well represented. Princes Youth Business Trust (PYBT): one of the largest organisations in this field, PYBT offers a range of support to potential young entrepreneurs. Shell LiveWire: LiveWire provides support and advice to potential young entrepreneurs and hosts regional and national events to promote their businesses. Further and Adult Education Colleges: many colleges offer full, part time and short courses for local residents interested in starting their own business. Courses are usually practical and include details of the support available from local organisations. Specialist Business Organisations: there are a number of business associations who aim to support entrepreneurs from particular parts of the community eg Elephant Enterprise (start-up courses specifically for women), Black Business
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Association (Waltham Forest) and Asian Business Association (Waltham Forest). Local Authorities: a number of local councils support Business Ventures/Enterprise Centres which aim to encourage the growth of new businesses through the provision of support, advice and training. While this plethora of support illustrates the considerable commitment by government and other agencies to the provision of appropriate support for new entrepreneurs, it also highlights one of the issues identified by respondents to the graduate survey difficulty in identifying sources of advice and guidance. We referred earlier to the experience of staff from the London Institute Careers Service in undertaking research into these organisations. There are arguments in favour of rationalising the provision available in order to improve accessibility to an important client group who are more likely to be at ease using these networks because of their educational experience than other potential entrepreneurs. Further details of additional resources available for business start up appear in Chapter 7.
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7.
Resources
There is a wide range of resources available to those interested in setting up their own business or working freelance. The organisations responsible for assisting those interested in business start up offer various facilities: ! financial support including loans, grants ! business advice, eg assistance in drawing up a business plan ! premises, eg studio or workshop space ! training courses ! legal advice ! marketing support ! networking and peer support or mentoring. Some of the organisations active in this field have a national network, others reflect the particular composition of the working population in their own area and may offer targeted support to groups within the community. Set out below are details of some of the organisations active in the support of those hoping to work as freelancers or to establish their own business. This list is illustrative rather than exhaustive, being based on research which the London Institute Careers Service has undertaken as part of a DfEE funded project Business and Enterprise Skills for Art, Communication & Design Students. ! Princes Youth Business Trust (PYBT) 18 Park Square East, London NW1 4LH PYBT offers advice and loans to young entrepreneurs through a national network of centres ! Shell LiveWire Hawthorn House, Forth Banks, Newcastle on Tyne NE1 3SG LiveWire helps young people take a more enterprising approach to their future careers and enables those who want to set up in business turn their ideas into reality http://www.shell-livewire.org ! Clearing Banks The major banks have Small Business Advisers who can assist in drawing up business plans, help identify sources of finance etc.
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! Business Link Government-backed and run by partnerships of commerce and other agencies, Business Link aims to help businesses of all sizes with a range of issues ! Training and Enterprise Councils (TECs) TECs offer a range of services which can include advice, counselling and training. TECs often work closely with Business Link and also fund a number of agencies offering support to small businesses in their community. ! London Enterprise Agency (LENTA) 4 Snow Hill, London EC1A 2BS LENTA offers a range of support which is targeted at those entering self-employment or operating a micro business, including start up training and financial support ! Portobello Business Centre This is an excellent example of a business centre which offers a comprehensive support and training programme for new businesses. ! National Association of Minority Contractors and Businesses Its objectives include encouraging and assisting local people in starting their own business and ongoing business to become successful. Support includes skills training, debt collection, management and technical support. ! Association for Business Sponsorship for the Arts (ABSA) Works with regional Arts Boards to offer advice, seminars and workshops. Also runs the Business Sponsorship Incentive Scheme which can match sponsorship with grant aid. ! Clerkenwell Green Association (CGA) Through the Clerkenwell Award, newly trained crafts people and designers can receive up to 50% of the cost of a studio for 18 months plus a complete business package including ongoing consultancy advice ! Fashionworks Enterprise Partnership Islington Enterprise Centre, 64 Essex Road, London N1 8LR This programme supports and assists unemployed fashion/ textile designers interested in starting their own business or freelancing inter alia ! Crafts Council 44a Pentonville Road, Islington, London N 1 9BY The Crafts Council run a Setting Up Scheme which comprises a maintenance grant and an equipment grant http://www.craftscouncil.org.uk ! British Franchise Association offer advice and information on running a successful franchise ! Industrial Common Ownership Movement (ICOM) Information and advice on setting up a business as a cooperative
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Many of the organisations offering support to potential entrepreneurs also have their own websites, including: ! Department of Trade and Industry (DTI) have put details of the provision which they fund on their site, Enterprise Zone. This includes information about Business Link. http://www.enterprisezone.org.uk/ ! National Federation of Enterprise Agencies http://www.pne.org/cobweb/NFEA/default.htm In addition there are sites which bring together much of this information, including ! Liverpool John Moores University Careers Advisory Service http://cwis.livjm.ac.uklcareers/sae/hpage.htm ! Sussex University Career Development Unit http://www.susx.ac.uk/Units/CDU There is also a wealth of publications available for those interested in establishing their own business. Examples of some helpful titles are set out below. Depending on the needs of the individual there are many others which could be useful Alternative Work Styles including self-employment AGCAS A Guide to help for Small Firms DTI Working for Yourself Godfrey Golzen, Daily Telegraph Lloyds TSB Small Business Guide Sara Williams, Penguin Running a Workshop ed. Barclay Price, Crafts Council Many of the agencies mentioned above provide guides and pamphlets about business start-ups in general and issues such as tax, copyright, health and safety, in particular Rethinking Business Start Up a new model for success in art and design, by Linda Ball and Elisabeth Price, report on the DfEE funded Graduate into Business Project. A resource for Careers Practitioners and Academic Colleagues.
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8.
Recommendations
Stemming from our research for the Good Practice Guide, we have identified a number of issues for HE Careers Services, and also for Government and other national agencies. The following is a set of operational and policy recommendations ! When Institutions are looking at the provision of career management skills, that they recognise those competencies which are particularly important in the context of selfemployment and make appropriate provision. We would hope to see students being enabled to manage the boundaryless career, as well as managing careers within organisations. ! that system designers be asked to investigate how PROSPECT HE (Higher Educations computer aided career choice program in wide use in HE Careers Services), could be developed, so that those motivations, skills and values, particularly associated with self-employment, could be highlighted. ! that in the writing of Association of Graduate Careers Advisory Services (AGCAS) Graduate Careers Booklets, chief writers are asked to assess whether there is scope within each occupational area for a higher profile for selfemployment/freelancing options. ! that those Careers Advisory Services which do not run events around self-employment/starting your own business as a part of their programme, consider doing so, possibly on a regional basis, in order to test levels of interest and to promote the idea. ! Many Services have made a point of developing links with Innovation Centres and incubatory units associated with their own Institutions to help boost contacts and to provide placement or project assistance helpful to those who want to explore their own business ideas, or who are at the stage of wishing to survey self-employment as an option. As additional Centres, such as the new Enterprise Institutes come on-stream, Careers Services should build on their existing good practice by continuing to foster communications. ! that Careers Services might usefully consider linking their websites to their Institutions Alumni website, where appropriate, to enable students and recent graduates to
45
access entrepreneurs from their own Institution who might act as contacts or mentors. ! that an e-mail list is set up within AGCAS for HE Careers Advisers and Career Information Officers to enable the exchange of information on self-employment. ! Given the difficulty many graduates and Careers Services reported in accessing information and support, that there should be rationalisation of the agencies involved in this area, to enhance promotion of their facilities, and greater stability in their provision. ! Finally, it is our view that there is a role for Government, in reviewing the existing provision for those seeking to start their own business in the light of the findings of the research, and in enhancing the resources available through Higher Education Careers Services, to meet the needs identified by graduates and students interested in business start up.
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Graduate Business Start-Ups Project Report: Studies

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the Institute for Employment Studies

Graduate Business Start-ups Project Report

HR Response to Organisational Change

GRADUATE BUSINESS START-UPS PROJECT REPORT

the Institute for Employment Studies

Graduate Business Start-ups: Project Report

Nii Djan Tackey

1. Graduate Business Start-up 1.1 1.2 Introduction Review of the background

Annex 1: Good Practice Guide

Graduate Business Start-ups

Review of the background

Graduate Business Start-ups: Project Report

Graduate Business Start-ups: Project Report

Aims and Objectives of the Project

Graduate Business Start-ups: Project Report

Graduate Business Start-ups: Project Report

Organisation of the Project

The project team

Graduate Business Start-ups: Project Report

A review of literature and data

Interviews with self-employed graduates

Graduate Business Start-ups: Project Report

Postal survey of HE careers services

Postal survey of graduates

Graduate Business Start-ups: Project Report

Development of Good Practice Guide

Table 1: The composition of the participating HEIs

N 778 677 330 600 644 3,029

200 250 450

Graduate Business Start-ups: Project Report

Graduate Business Start-ups: Project Report

The Results of the Project

Main findings from the research

Graduate Business Start-ups: Project Report

Graduate Business Start-ups: Project Report

Graduate Business Start-ups: Project Report

Graduate Business Start-ups: Project Report

Graduate Business Start-ups: Project Report

Graduate Business Start-ups: Project Report

Graduate Business Start-ups: Project Report

Lessons worthy of dissemination

Graduate Business Start-ups: Project Report

Development of Good Practice Guide

Graduate Business Start-ups: Project Report

Collaboration and networking

Graduate Business Start-ups: Project Report

HEI plans to build on the project and outcomes

Graduate Business Start-ups: Project Report

Possible follow-up of the project

Graduate Business Start-ups: Project Report

A Good Practice Guide for Higher Education Careers Services

Graduate Business Start-ups: Project Report

Graduate Business Start-ups: Project Report

Graduate Business Start-ups: Project Report

Existing Provision within Higher Education Careers Services

Graduate Business Start-ups: Project Report

Background to Good Practice

Implications for Careers Services Work with Past Students

Graduate Business Start-ups: Project Report

Graduate Business Start-ups: Project Report

Graduates Views: in Retrospect, what they would have liked

Training in specific skills