The University of South Florida Masters Degree in Entrepreneurship for Applied Technologies: A Five-Year Follow-up

Corey Reeves, BS Matthew Tufts, BS Michael W. Fountain, PhD, MBA William G. Marshall, Jr., MD, MBA

Center for Entrepreneurship, College of Business, and Morsani College of Medicine University of South Florida – Tampa

Tampa, Florida, USA

Summary In 2007, the University of South Florida (USF) Center for Entrepreneurship (CfE) initiated a Masters Degree in Entrepreneurship for Applied Technologies (EAT). This report describes the initial 5 year results of the program. The Masters Program, with faculty from multiple colleges and disciplines, implemented an innovative curriculum and pedagogy focused on Technology Entrepreneurship. The pedagogy is based on project-focused, multi-disciplinary team-based new venture formation. Of 101 graduates of at least two years duration, 82 participated in the survey (81%). Of 81 graduates that participated in the survey, 56 (69%) reported starting their own sustainable business (56% of total graduates). Graduates had the highest propensity toward the Information Technologies (IT) industry (29%). Although IT represented the majority of the entrepreneurial, self-owned businesses, there was substantial variety including industries from food services to security contracting. This Masters in Technology Entrepreneurship program has demonstrated market acceptance and sustainability with excellent outcomes.

Keywords: Entrepreneurship Education, Pedagogy, Five-year Outcomes

Corresponding Author: William G. Marshall, Jr., MD, MBA 813-974-7663 [email protected]

PRINCIPAL TOPIC In 2007, the University of South Florida (USF) Center for Entrepreneurship initiated a Masters Degree in Entrepreneurship for Applied Technologies (EAT). This report describes the initial 5 year follow-up results of the program in a pilot study of the program graduates. The Center for Entrepreneurship at the University of South Florida is supported by the Colleges of Business, Engineering, and Medicine. The Masters Program implemented an innovative pedagogy and curriculum focused on Technology Entrepreneurship with faculty from multiple disciplines of the USF Colleges of Business, Engineering, and Medicine 1, 2. The program consists of 30 credit hours completed in one to two years, depending on student preference. The pedagogy is based on project-focused, interdisciplinary team-based, new venture formation. The curriculum focuses on identification of new opportunities, strategic market assessment, venture formation, and capital-financing strategies. This report will review and analyze various metrics of the program and current professional positions and entrepreneurship activities held by the graduates of this innovative program. This paper will document the outcomes, achievements, and progress of these individuals and in-turn show the tangible benefits of this unique collaborative program. This data demonstrates the value of the program and highlights the importance of continuation and expansion of such entrepreneurship educational models. It is recognized that this data needs to be more in-depth and more detailed. However, respondents were reluctant to disclose some information that they wished to keep confidential so early in their career and so soon following graduation.

METHODS

Demographic data was obtained from the University registrar and the Center Director which showed all the participants of the program since its inception. Demographic data included sex, ethnicity, and whether the student was Florida state resident. It was also determined in which College the individual was enrolled (Business, Engineering, Medicine, Other), other graduate degree programs in which the student might be enrolled (the EAT Masters degree is

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part of a number of dual degree programs) and undergraduate and other graduate degrees held. All graduates of the program were identified and the numbers tabulated. Data was obtained from the Center Director showing initial class size as well as current class size to evaluate the growth of the program over the life of the program. Additionally, graduates participated in yearly follow-up telephone and email surveys focused on current entrepreneurial, business, and career activities, positions the individuals currently held, what businesses they have started, and the industry in which the businesses were engaged. The industry sectors in which these individuals opened businesses were examined and categorized. To date there has been a total of 101 graduates that are at least two years post graduation. The data was collected by following the graduates up to 5 years after completion of the degree program.

RESULTS AND IMPLICATIONS

Demographics of the Cohort In the first year of existence, 2005, the program had a total of 7 students. Currently (Spring 2012), there are 118 Masters students enrolled with a total of 112 active in the Spring 2012 semester. Through Spring 2012, there have been 146 graduates with 101 that have two years since completion of the program. Male students made up 62% of the program while ethnic minorities were 35% of the program. From 2005 to 2012, 78% of the EAT students were Florida residents. The average student takes 9 credit hours per semester and completes the program in one and a half to two years. In the Fall 2010 semester, 54% of students were in the College of Business, 16% Medicine, and 30% Engineering. EAT students represented 84% of the students in classes. In Spring 2011, 73% of students were enrolled in the College of Business, 12% Medicine, and 15% Engineering EAT students represented 76% of the students in classes. The EAT classes are open to non-EAT students in the Colleges listed and in other University Colleges and Schools with permission of the instructor.

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EAT Program Metrics The Masters Degree Program in Entrepreneurship for Applied Technologies (MS EAT) at the USF Center for Entrepreneurship has shown significant success in all areas and metrics. It has also met and / or exceeded all predicted enrollment metrics in the pro-forma presented to the University administration prior to initiation of the program. In the categories of sexual and ethnic diversity, the EAT program is 5 – 10% higher than the Colleges of Business and Engineering. In year-over-year enrollment, the expectations were 15 – 20 students per year and the actual were 30 - 40 students per year. In number of graduates, the predicted was 10 – 15 per year and the actual have been 25 – 35 per year, or an increase twice the projected in both enrollees and graduates. The last category of projections in the pro-forma was number of dual-degree graduate programs. The projected number was two and the actual number is thirteen graduate degree programs, ranging from Public Health to Biotechnology to Medicine to Engineering and more.

Survey Results Graduates of the EAT participated in a five year follow-up survey focused on the entrepreneurial and business activities and career status of the graduates. Of 101 graduates two years post-graduation, 82 participated in the survey (81%). The data showed that 56 (69%) of the 81 graduates that participated in the survey reported starting their own venture which was still on-going or “sustainable”. All respondents stated they had attended the EAT program with the intent of ultimately starting, or at least attempting to start, their own venture. All graduates also stated that the EAT program had helped them understand the risks and challenges in becoming an entrepreneur and they felt the program had helped prepare them for many of the issues they have faced or expect to face going forward. Graduates had the highest propensity toward the Information Technologies (IT) industry (29% of self-owned ventures). Although IT represented the majority of the self-owned ventures, there was substantial variety that included industries from food services to security contracting. The complete data with the number of graduates starting self-owned new ventures categorized by industry

can

be

seen

below:

4

Information Technologies:

16

(29%)

Media / Entertainment:

9

(16%)

Health / Biotechnology:

8

(14%)

Design / Manufacturing / Sales:

6

(10%)

Sustainability / Environmental Services:

5

( 9%)

Consulting:

4

( 7%)

Food Services:

3

( 5%)

Real Estate:

2

( 3%)

Security:

2

( 3%)

Marketing:

1

( 1%)

This data shows that the EAT program is highly successful at producing graduates that participate in entrepreneurial activity and venture formation activities in a variety of industries. A comparison between the USF College of Business MBA graduates demonstrated that 6 – 10% of the MBA graduates started a new venture following graduation compared to the 69% identified above for the EAT graduates.

Implications The data above presents a number of interesting findings, but raises even more interesting questions. The USF EAT program curriculum provides a fund of knowledge and background in areas not usually covered in other courses of study, programs, and Colleges within the University.

This

includes

Opportunity

Recognition/Assessment,

Technology/Market

Assessment, Business Plan Development, New Venture Formation, New Venture Financing, Regulatory Compliance, Intellectual Property, and specific Strategies for Entrepreneurial Ventures1. What is unique about the program at the USF Center for Entrepreneurship that leads to such a high propensity of students focused on starting their own entrepreneurial venture(s)? It is our impression that this outcome is due to a number of factors. These include: The reputation of the USF EAT program that attracts students with interest, focus, and willingness to start their own venture. 5

The curriculum and pedagogy has been structured to focus on the skill sets, expertise, and experience necessary to prepare the students for success. The preparation of the students in four specific areas critical for success in starting a new entrepreneurial venture and managing it to success: o The ability to assess opportunities from an objective standpoint using objective data o Skills in identifying, attracting, and retaining the critical members of a team built for success o Development of the skills to successfully launch a new venture o Development of the skills to identify and development strategic competitive advantages for the venture, technology, and products Development of the ability to identify and manage risk such that the students are not afraid of risk but see it as necessary to achieve high rates and amounts of success. These are the same objectives noted by Garavan and O’Cinneide to be necessary for an entrepreneurship educational and training program and relate to the significant differences compared to business education and training program3. Ronstadt also posits that students must learn how to “behave” or function entrepreneurially4. We agree and have built this concept into all aspects of our program, especially with the large amount of experiential course work. We believe this success in our graduates to be directly related to the skills, expertise, and experience developed in the EAT focused on the additional critical program pedagogical factors of project-focused, interdisciplinary teams and experiential learning for new venture formation2. We have little doubt, and it has been confirmed in discussions and conversations with the graduates, that these are the differentiating factors leading to the almost 70% of responding graduates that have started their own business and the wide variety of industries in which the graduates have entered. The USF EAT program continues to expand and be refined with new curricula in sales, marketing, finance, venture capital focused business planning, and mergers and acquisitions. This is designed to continue to provide additional capabilities to our students to be even more competitive and successful in the area of venture formation and entrepreneurship.

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Future Plans As noted this is a early phase study on the outcomes of this study. Further surveys are already in progress assessing detailed information and attitudes of the graduates regarding their education program in the EAT, their assessment of the strengths, weaknesses, and critical success factors relative to their own venture(s) and career. We believe this information will be critical in the ongoing assessment of the outcomes of graduate entrepreneurial education.

REFERENCES 1. Marshall, W.G., Jr., Budd, S.R., Givens, P.E., Fountain M.W. (2007), “Development and Initiation of a Master’s of Science Degree in Entrepreneurship in applied Technologies”, Proceedings of the United States Association for Small Business and Entrepreneurship 2. Marshall, W.G., Jr., Budd, S.R., Givens, P.E., Fountain M.W. (2006), “Technology Entrepreneurship Education: The University of South Florida Philosophy, Pedagogy, and Curriculum”, Proceedings of the United States Association for Small Business and Entrepreneurship 3. Garavan TN, O'Cinneide B. (1994), "Entrepreneurship Education and Training Programmes: A Review and Evaluation - Part 1", Journal of European Industrial Training, 18 (8): 3 – 12 4. Ronstadt R. (1987). “The Educated Entrepreneurs: A New Era of Entrepreneurial Education is Beginning.” American Journal of Small Business, 11(4): 37-53.

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