Despite some academic debates on the universities' roles, academicians largely consider the Universities' role significant in promoting entrepreneurship and innovation for the economic development of regions. The examples of 'Silicon Valley' initiated by Stanford and 'Route 128' by Massachusetts Institute of Technology (MIT) are largely quoted in this regard. These success stories indicate that a university can initiate an economic development program in its territorial region, by setting up entrepreneurs' development centers, business incubations and by providing skills to the students for the support of new business start-up.
Though, the universities' role in the promotion of entrepreneurship development has always been important everywhere, in the present economic condition of Pakistan, its need is being felt here intensely. Pakistan's unemployment rate is increasing with galloping pace. The unemployment rate has gone up from 5.6 percent in 2008 to 14 percent in 2010 and may further rise to 15 percent by the end of this year. In order to arrest this slipping down employment rate in the country, the role of Pakistani universities is increasingly important in producing job creators instead of job seekers. However, in Pakistan, particularly in Sindh, the universities role of entrepreneurship development is less known. Hence, this article presents research findings on the role of the universities of Sindh in the entrepreneurship development and job creation in collaboration with the industry.
Website of the Higher Education Commission of Pakistan (HEC) reveals that there are 39 Universities/Degree Awarding Institutes (DAIs) in Sindh, (14 public and 25 private). However, 31 HEC recognised Universities/DAIs are part of this research as six Medical and Engineering Universities were excluded from this population, as they refused to be part of this research for being non-entrepreneurial in nature. Mainly, the 31 Sindh based Universities were explored to find whether, these universities have courses on entrepreneurship development; Center for Entrepreneurship Development; Incubation Centers; Industry/University Linkages; or has there been any technological transfer from Universities to the Industries in the last ten years? The findings of this research have been grouped under the two broad headings as; Entrepreneurship Development Support and University - Industry Linkages, as follows.
Entrepreneurship Development Support
The finding of this research reveals that 18 Universities/DAIs ie about 60% of the universities in Sindh offer one course on entrepreneurship at the bachelor's and Master's levels. Two institutes are in the process of developing the curriculum on the subject while the remaining 11 institutions do not have curriculum on entrepreneurship at all. Neither these 11 institutions are planning to start such courses in future. At present, six Universities have center of entrepreneurial development while three more institutions are in the process of setting up their centers. Only two Institutions reported to have Incubation Centers.
University - Industry Linkages
23 Universities, which amounts to 77% of the population of this research, are not offering any industry-related education; training and research partnerships whereas 8 institutions almost 23% of these are actively participating in the industry-based education. Out of 31 universities, two universities have successfully transferred basic level of technology to the industry in the field of alternate energy while four universities (HEJ, SZABIST, Hamdard and Textile Institute of Pakistan) are either in the process of technology development in collaboration with the industries or have already transferred indigenously developed technology to the industries.
Factors Responsible for the state of the affairs
When asked about the low inclination of the institutions of higher learning towards the entrepreneurship development, a good number of the respondents (about 50%) expressed limitations at both the sides, which were mainly based on the following reasons:
a. Industries' reluctance in the collaboration with the university. Industry does not facilitate the academic institutions with their expertise even if requested by the latter..
b. Since our society is largely an agricultural society, we see business as more risky activity. Besides, in the cities, the 'babu' culture which we inherited from the colonial times is still prevailing. As a fresh graduate would like to go for job instead of going for starting a shop.
c. The educated generation of the business families prefers to continue the family businesses instead of going for the available new business opportunities.
d. Non-availability of finances to the non-business families is also a deterrent for starting new businesses. As a large number of the university graduates belong to the lower middle and middle class families, they are financially constrained in starting their own businesses.
e. The regulatory framework of the country is not friendly as there is a general perception that starting business means dealing with the multiple unfriendly departments and offices.
f. Since the private universities are profit oriented, they offer those disciplines which is high in demand and public universities generally cannot afford to offer those courses which require investment for the development of infrastructure.
g. The copy rights and patent rights' laws are practically not followed which becomes deterrent to the research and innovation. Thus industrialists prefer imported technology and products over developing a technology by themselves.
What needs to be done?
In order to maintain social order and avoid social chaos in the country, accelerated economic activities is a must. For this purpose, as a short-term measure within three years, there is a need to transform Pakistani Universities into entrepreneurial universities to groom students as job creators instead job seekers. In the above backdrop, there is a need to mobilise resources towards the entrepreneurship development programs and entrepreneurial activities in the country. For this purpose, a separate head "University Development Program" with financial assistance by the provincial governments should be started.
The new heads will further have its subheads as:
-- Entrepreneurship development program
-- Skill development program and
-- Small businesses start-up program
-- University development program
Under the subhead "Entrepreneurship development program", the public and private Universities/Degree awarding institutions may be supported with finances for the compulsory establishment of one entrepreneurship development centers (EDCs) throughout the country. The public universities, due to their limited resources, are not in a position to start EDCs in their existing revenues and the grants they get from the Federal Government. At the same time, entrepreneurship programs are not commercially viable and private Universities/degree awarding institutions do not find entrepreneurship program financially beneficial to them. Hence, without the support of government, universities will not be able to establish and develop EDCs. In this highly competitive era, the developing and developed countries alike have taken support of universities in the technological breakthrough and expansion of economic activities in their part.
-- Skill development program
Pakistan's biggest hindrance in promoting the entrepreneurial activities is not the non-availability of financial resources but finding appropriate skills for the product development and delivery is a real issue. India in its 2011/12 budget has allocated separate fund under the development budget's head for "National Skill Development Co-ordination Board". The obvious purpose of this board is to fill the gap of skills in the expansion of trade and industries in the country. In Pakistan's context, such program should be initiated under the banner of skill development program at the universities. This program will produce capable people who will be creating jobs for themselves and for others. This will also open the door of university-industry linkages as industries will be looking towards universities for the supply of technically qualified people.
-- Small businesses start-up program
Small businesses start up has brought economic revolutions in Taiwan like natural resource constrained countries. This can also bring employment and industrial development in Pakistan. "Small business start-up program" needs to be designed in a way that would absorb the products of the Universities' trained entrepreneurs and the skilled people coming out of the program. It will offer facilitations to the new entrepreneurs and the business graduates with interest free business loans, technical and marketing supports to the trained and motivated young entrepreneurs in collaboration with the universities and industries.
Conclusion
The current era is experiencing a paradigm shift in the job markets. There is stagnation in the job markets not only internationally, but significantly in Pakistan. The industry is in the maturity stage and entrepreneurship development is the answer to the current economic imbroglio. The research was carried out to explore the contribution of universities in Sindh in the entrepreneurship development. Universities in Pakistan have a vital role in the job creation and economic development to play, because we have 60% of young population between the ages of 15 to 30 year. If they are groomed and nurtured in an appropriate manner it will be promising for the future.
To conclude the research, the role of universities in enterprise development in Sindh at this stage does not reflect any significant contribution. Though three universities are involve in entrepreneurial development activities, one university has already started a proper set up and others are in process of setting up by 2011, yet the substantial outcome has not been achieved. The dilemma in Pakistan is that research and development is not a preferred discipline, as a result the required innovation or start-up businesses of new ideas and concepts are rare phenomena. In the context of Sindh which has the strategic significance not only in agriculture, but chiefly in the economy of Pakistan, as Karachi is the hub of the commercial and economic activities and host 29 universities can reshape the role of universities in enterprise development in Sindh.
Universities at present are not in line with the current demand factor, yet they are cognisant except for few universities where the officials are not aware of the word incubation or enterprise development. Their offering of entrepreneurship as one course and doing rudimentary project work does not suffice the need for entrepreneurship development. Training, internships and industry collaboration along with the micro finance banks can promote the concept of self employment and entrepreneurship.
Many universities highlighted that the industry do appreciate the research work of the faculty and students but when it comes to the transfer of technology or repositioning or introducing new product or service in the market with reference to their work is completely ignored by the industry. 83% of all private and public universities teaching business, engineering, science and technology, textile, art and architecture have comprehensive executive development programs. Ironically, no technology transfer or new product development has taken place so far.
Chiefly in Pakistan, the laws of copy rights and patent rights are not followed. Industrialist like to import products with an excuse that it is not possibly made in the local market which is another factor of discouraging the universities to become research based and incubators for new ventures.
Another factor which was highlighted by this research is the lack of corporate social responsibility being exercised by the industry only one organisation Shell Pakistan, is involved in community based entrepreneurship training through workshops, seminars and training by signing MoU's with the leading business and IT based schools in Sindh. Such type of initiative can shape up the role of university in this region in order to proactively disseminating enterprise development. The observation during the study came to the conclusion that lack of awareness and no holistic view of the university role lead to the stagnant concept of just educating the students for job seeking. In this pretext a major factors are cultural, socio-economic class, no government assistance and complete ignorance on part of the industry are discouraging the growth of entrepreneurship. Nevertheless, the country needs to invest in education; therefore creating job creators is also an art and science which has to be addressed in full swing. The universities role in Sindh has to be revisited as the new era demands for more entrepreneurial development to address the growing unemployment and despondency among the masses.
After conducting the interviews and reviewing the available literature following recommendations are suggested:
-- HEC should direct the universities of similar discipline to share the curriculum in order to promote collaboration in research work, in accordance with the market dynamics and industrial need based curriculum
-- In Sindh, fourteen large public universities can easily be transformed in to hub of entrepreneurship development and research based entities not only in the fields of computer science and technology , also in medical science, agricultural science, other fields of engineering, thereby promoting the entrepreneurship sciences.
-- The culture of internships should be made more strong and comprehensive especially in the public universities for the development and nurturing of intrapreneurship and finally entrepreneurship
-- Advanced Technology can be used for training students from international universities via satellite systems, thus giving them international exposure and learning entrepreneurship skills
-- Faculty should be given rewards on the basis of their research work and copy rights, patent rights, snf intellectual rights policy should be adopted
Universities in Pakistan are yet to play significant role in the job creation and economic development in the country. As Pakistan's 60% of the population is young falling into the bracket of 15 to 30 years, if they are groomed as a job creator instead job seekers the economic challenges of the country can be faced with confidence.
This research is focused on Sindh province to investigate the role of universities in entrepreneurship development in the province. The research finding does not reflect significant contributions of the universities in the entrepreneural development and job creation in this province. Though a small number of universities are involve in entrepreneurship development activities, yet the substantial outcome has not been achieved so far. The dilemma in Pakistan is that research and development is not a preferred discipline, as a result the required innovation or start-up businesses on new ideas and concepts does not exist. Sindh province has strategically significant position in the economy of Pakistan as 70 % of the revenue is generated from this province and it has modest level of industrial base and relatively better educational infrastructure. Hence the Universities in Sindh should take a leading role in promoting entrepreneurial activities in the province in collaboration with the industries and government.