An entrepreneurial culture in universities will help support UAE’s business ecosystem

A recent joint survey study conducted by American University of Sharjah (AUS) and other institutions has found that students are likely to benefit from a greater focus being placed on entrepreneurship during their university studies. Helping  students increase their skills and knowledge around entrepreneurship will enable them to pursue an entrepreneurial path upon graduation, contributing to the UAE’s entrepreneurial ecosystem and family business endeavors. Conducted in 2021, the survey found that there is a positive evolutionary trend in students’ entrepreneurial intentions in the UAE. Over the past two years, the percentage of university students intending to start a business immediately after graduation has grown from 5 percent to 13 percent.

“However, this percentage is still low, and it increases to 39 percent when students consider starting a business five years after graduation. The report found that students in the UAE feel they are not fully equipped to start their own entrepreneurial ventures. They underscored the need for entrepreneurial education and practical entrepreneurial experience before starting their own business,” said Dr. Rodrigo Basco, Professor of Management and Sheikh Saoud bin Khalid bin Khalid Al-Qassimi Chair in Family Business at the AUS School of Business Administration (SBA) and lead researcher.

In collaboration with the Global University Entrepreneurial Spirit Students’ Survey (GUESSS project), Sheraa, UAE University, Ajman University, American University of Ras Al-Khaimah and the Family Business Council Gulf,  Dr. Basco and his fellow researchers examined  students’ intentions on whether they planned to set up new businesses or continue in their family businesses after graduation. The technical report compared UAE students with students from other Arab countries and from the rest of the world.

The study directly relates to the recently launched Entrepreneurial Nation project by the UAE’s Ministry of Economy to attract and promote the development of 20 unicorns (startups valued at over $1 billion) by 2031. The UAE’s incredible record in entrepreneurship over the last year has helped it become one of the world’s most innovative countries. The UAE has seen entrepreneurial success as a result of a legislative system geared towards supporting startups along with initiatives that encourage entrepreneurial projects and accelerate their growth. This growth in entrepreneurial ventures is seeing the UAE’s economy become less reliant on oil.

“This initiative represents a new step toward shifting from a natural resource–based economy to a knowledge-based entrepreneurial economy. Through this report, we do not aim to increase awareness about the importance of entrepreneurial culture only, but also highlight the fundamental role that universities and families can play in meeting the UAE's future economic and social challenges. Are universities prepared to be part of the cultural transformation that the knowledge- and entrepreneurial-based economy requires? What is a university's role in the UAE’s family business and entrepreneurial ecosystem? How are universities innovating and changing their learning processes and structures to transform their business models to meet the 21st century challenges?” said Dr. Basco.

He added: “Most UAE students surveyed said they preferred to be employees in the private or public sector immediately after graduation, rather than starting a new business. The UAE’s business ecosystem supports entrepreneurship and family businesses aiming to achieve sustainable economic growth by diversifying the economy. Several programs, initiatives and laws have been formulated to encourage businesses, and promote a positive climate that stimulates economic activity.”

The study examined student drivers at the micro level in terms of attitude, self-efficacy and locus of control; and at the meso level focusing on the three institutions that influence students’ entrepreneurial intents, which are family, friends and university.

This report aims to help policymakers gain a more comprehensive understanding of students’ entrepreneurial behavior and their motivation to become entrepreneurs. “This is why we are reflecting on the role of educational institutions, as one of the main stakeholders, in the UAE business ecosystem,” said Dr. Basco.

The study recommended rethinking the role of universities in a knowledge-based entrepreneurial economic model, transforming the university culture from a rentier educational mentality into an entrepreneurial one, becoming active stakeholders in the existing family business and entrepreneurial ecosystem, strengthening relationships with external stakeholders to leverage students’ entrepreneurial spirit by developing unique skills and capabilities and introducing an entrepreneurial perspective into existing courses by implementing innovative teaching methodologies.

Speaking about the role AUS has been playing in nurturing an entrepreneurial spirit among its students, Eleni Papailia, Senior Manager of Internships and Placement at SBA, said: “We support entrepreneurship as a career path through SBA’s Internship and Placement Office in various ways. We promote internships at start-ups and start-up incubators as part of the official internship program of SBA. In addition to that, and as part of the broader entrepreneurial ecosystem, we proudly host and encourage participation in hackathons and competitions that refer to the ideation of new products and processes. We work closely with Sheraa on a number of initiatives on an annual basis. From anecdotal evidence and feedback received, students who intern in start-ups enjoy the fast-paced environment and the opportunity to express their ideas.”

The Sheikh Saoud Bin Khalid Bin Khalid Al Qassimi Chair in Family Business was established in SBA to honor Sheikh Saoud Khalid Al Qassimi's legacy. The chair, which is the first of its kind in the UAE, aims to become a recognized family business knowledge hub in the regional, national and international context. Its mission is to foster sustainable support to family firms by creating value for business families and regional communities through conducting research and developing teaching activities that strive to connect past, present and future family generations in order to achieve their individual, family, business and community objectives.

For more information about the Sheikh Saoud Bin Khalid Bin Khalid Al Qassimi Chair in Family Business at American University of Sharjah and its initiatives, click here. For more information about the report and to download a copy of the report, click here.