As financial pressures continue to bite, and with many more students and graduates chasing after work experience, employers have found themselves in a strong position with regards to offering unpaid work placements. Many degree courses expect their students to have completed some element of industrial placement enable them to proceed to final year. In the current environment demand for placements outstrip supply. Are the universities missing a trick?
When I was studying for my BSc Computer Science at the University of Ulster Coleraine I was fortunate enough to be offered a one year paid placement at Intel Corporation down in their manufacturing facility in Leixlip, Co. Kildare. The role involved administering user accounts and privileges for the sites 4000 or so users as well as a further 1500 spread across its EMEA operations. For my time there I was awarded a Diploma in Industrial Studies with Distinction.
The role wasn’t terribly taxing technically, which was a shame, but it did have the benefit of immersing me in an environment totally alien to me at the time. The environment was that of an American lead multi-national operation exposing me to new concepts in management, new ideas and the relentless pursuit of success, revenue and profit. It was an eye opener and a real experience. Getting paid to do it was certainly a bonus but it was expected. Back then within my peer group unpaid placements were effectively unheard of.
Do something or work for nothing
Now however there are an increasing number of companies who are offering unpaid internships. This is fine for those in the financial situation to be able to afford to work for a year for nothing. My dad always used to say that he would rather do nothing as work for nothing. For those who aren’t in the fortunate position to do that it has to be the perfect time to work on their own venture.
Why work for someone else for nothing when student entrepreneurs could develop something for themselves with the aim of deriving some income? What’s the worst that could happen? They won’t make any money? Not such a big issue if that was the other option in the first place. Its probably the best time for young innovators and entrepreneurs to start something before they get indoctrinated into the world of work and the risk aversion that comes with it. Heck they could even get some ideas here.
Barriers
I can see that the universities might be reluctant to support such as scheme. So what barriers are there to overcome?
There would be management issues with respect to the existing industrial supervisory role for instance. Who would fulfil the role normally provided by the employer? This could be filled by recruiting a suitable cadre of mentors from industry. These mentors would act as advisors, advocates and monitor progress in a similar way to business mentors who support the work of the Prince’s Trust.
What happens if the students enterprise fails?
Can a failure really be counted as a success allowing the student to proceed to final year? Yes it can in my opinion. Those people who have tried and failed to develop a new venture will certainly have learned more about their industry than those who have went on unpaid placements and ended up making the tea. I have come across paid interns in previous roles who have spent the majority of their time on Facebook and watching videos on Youtube. Could that really be better than someone who has tried to bring a product or service to market and failed? I think not. Those who fail will still be attractive to future employers. They will have a portfolio of product/services they have created. They may even have the genesis of something that other businesses may be able to nurture and grow given access to more resources and support.
What if they succeed?
Well if those who choose to set up their own venture during placement succeed then the university has succeeded albeit a year or two early. After all one of UU’s aims is to “Contribute to the economic, social and cultural development of the region” whilst QUB sees itself as “a driving force in wealth and job creation”. That doesn’t mean that they should lose a fistful of students who might otherwise have went on to pay more fees and graduate. They should leave the door open for them to return and complete their studies. Perhaps leaving it open for a period of 5 years. If students can defer entry to courses there’s no reason why they can’t defer return from the placement element of their course.
Who finances the enterprise?
Like every other startup out there the finances should be down to the individual students. Plain and simple. That’s not to say those students who choose the startup option shouldn’t be allowed to avail of the university resources. For the period of their first year as a placement startup they should still be classed as students therefore have access to the libraries, IT labs, and student spin out funds where available. The cost to startup now for those in the web, mobile, and digital creative industries is lower now than ever. With access to a laptop and a web connection the cost to entry is near as makes no difference to nothing.
Isn’t it time our universities considered offering a Diploma in Entrepreneurial Studies? What do you think?
Fantastic article David. Starting a business while at University was actually what led me to establish NewsRupt (and by proxy, drop-out!) so I guess it depends on your perspective whether or not it was a good or bad thing! But for me, the best decision I ever made was to start a business. University did nothing for me. But that aside, I would encourage all students to skip a paid industrial placement and start a business for two reasons. Firstly, being exposed to corporate employment will ‘institutionalize’ your thinking; a full-time university course already does its bit in numbing your brain cells without a placement adding to the damage. The worst thing the young lose in going through ‘the system’ is that unique ability to think outside the box, the type of thinking that leads to innovative products, businesses and organizations that disrupt and help the world. Starting a business will keep that thinking fresh. Secondly, starting and running a business is the biggest personal development programme and journey you will ever find yourself on. It will stretch both your character and your skills in ways that you could never imagine. We say that University is meant to do that, help you “grow up”. It doesn’t. But having the opportunity to change your life and change the world with a business does. How many 20 year olds can say their biggest problem in life is cashflow? Not many, but it certainly makes you stand out and makes others think you’re something special.
Lyra,
To a certain extent I agree with you. Industrial placements do have their place, and for those wishing to get exposed to work practices in organisations large and small they are great. Many, many businesses also benefit from having a regular churn of fresh talent to work on projects and to assess with a view to hiring full-time once they graduate.
Notwithstanding, I do think there is scope for a more enabling environment for those who wish to dip their toe in the startup water instead of doing a traditional placement or internship.
Regards,
David
David,
In your closing statement you say “Isn’t it time our universities considered offering a Diploma in Entrepreneurial Studies? What do you think?”
The University of Ulster has a new degree starting in 2011 as part of the Ulster Business School that is just what you have suggested. It is called BSc Creative Enterprise. The programme was developed and approved in December 2009 and is due to recruit students this year for intake in September 2011. It will be a 4 year course with the 3rd year being an option to start a business or work in industry.
They have some printed materials on the course although I am not sure they were designed for candidate consumption.
From what I have read it looks fabulous and has a mix of academic and external industry influences. The purpose of the course is to train and encourage entrepreneurship.
If they had this course back in the day, I would have been the first to sign up. I think they are looking for around 30 top candidates.
If you would like the contact details of the course manager I will be happy to connect you up.
Niall,
What I am referring to here is the award they grant to students who do an internship/placement year in the 3rd year of a 4 year degree course. It is generally a Diploma in Industrial Studies which is granted in addition to the degree on graduation. Other variations include the Diploma in Professional Practice or Diploma in Area Studies for those who choose to study overseas for that sandwich year. More details can be found on the UU site here http://workexperience.ulst.ac.uk/students/placement.phtml. The DIS is offered to students across a whole range of courses.
Both colleges are ahead of the game in terms of Entrepreneurship, New Venture Creation courses etc. I should know I did UUs MSc Innovation & Entrepreneurship course graduating in 2007. This new degree is just an extension of that and sounds like an interesting prospect especially if it includes starting a business in the 3rd year as an option. Would be interesting to see how this will be managed and if it could be offered across other degree programmes.
Thanks for stopping by and joining the discussion.
David
This is like a two headed coin – the young person could win either way – although if they succeed on their own it’s obviously the better way to go. Those less inclined to take control of their own destiny (and the risks) could probably gain a lot from the experience and references gained from a year with a good organisation.
I’ve argued a lot in recent years that unless you need the qualifications, 3 / 4 years experience oin the real world of business is much better than a degree which may get you a job in a supermerket (if you’re lucky).
Jim,
Agree, those who wish to be employed by and learn from good businesses should continue to do that. Businesses gain a lot, and so do those gaining good experience. There should be a more enabling environment for those who wish to plough their own furrow however.
David
There are so many unpaid “opportunities” out there. I definitely think students would benefit in being offered structured mentoring in starting a business. Think what could be achieved in one year by one determined individual. Or, a group of individuals in the same position, with different talents and skills.
Dawn,
Thanks for stopping by and commenting. Both local universities do have good start a business support programs and enter teams into the Enterprise Ireland Student Enterprise Awards. In fact I met with several of the UU teams in my day job prior to their very successful entries in this years awards so fair dues to some of the work that is being done already.
Having said that the awards are based on business plans and potential. I would like to see an aspect of the awards that is based on actual commercialisation and revenue generating. Now that would be a competition to watch out for.
David
Great article David. Leaving aside argument whether degrees today retain value, proper work experience is vital – from a provider and undertaker perspective. I think everyone should be encouraged to start a business, not a necessarily a company just an attempt at a money making enterprise. At best this leads to a successful company at worst a more meaningful appreciation of business. This doesn’t have to be extensive and should not be limited to students. The hard part would be in persuading participants, providing inspiration and allowing for failure in an increasingly target driven environment
Liam,
You have hit the nail on the head. The Diploma in Entrepreneurial Studies should involve creating a money making exercise. No more, no less. Defining it as starting a business might only put some off.
Perhaps a new legal form of business could be created to reduce the beaurocratic and tax burden on such an enterprise. A “Limited Student Enterprise” perhaps with earnings used to offset student fees up to a ceiling of £30k. If they earn more than that in the year they really should be considering jacking in college and proceeding with the business.
Failure should be talked about up front to demystify it and reduce the fear factor. Without business failures there would be no business successes afterall just a sea of sameness and mediocrity.
David
David as you know my passion is supporting and encouraging small businesses and early stage start-ups I also believe that innovation is key. I want small / young businesses to have access to university & college resources I believe having access things as simple as desk and research resources can make all the difference. When I was setting up Referalot just being able to use a quiet room in the UU Belfast really helped with initial meetings.
I am suggesting that Students could sponsor new businesses with access. Business get access to the resources of the college or university in return for mentoring and engaging with students. I will let you know how this pans out.
Martin,
Cheers for engaging. Partnering students up with businesses is a great idea even prior to the industrial placement stage. As someone who studied part-time I found the resources I gained access to through the library and an Athens login a total revelation in terms of the goldmine of information I gathered for things like strategic reviews (public sector) and competitive analysis (private). Many businesses would benefit from being able to keep abreast of the latest academic thinking without necessarily having to fork out £8k for a postgrad course. That’s not to say they should have it for nothing either. Small donations or support in kind would be required as good research doesn’t come cheap.
David
Been talking at length to the university of ulster on this subject. There’s a lot we can do in industry. Asking UoU to support students working on Code4Pizza, Xcake, Bloc54, ELTA, StartVI (and the startups) and some of the other clusters I’m creating with DC.
Doing nothing is not an option.
Agreed. Do they have views on supporting those placement students with the potential to start their own venture? When I were a lad it wasn’t even discussed as an option for sandwich year.
I know both are doing work on enterprise teaching to support start a business as an option for graduates. I have met with QUBSU enterprise unit a couple of times and that Uni is putting loads through a new venture creation module as an option.