International experience on education training to promote startups

INTERNATIONAL EXPERIENCE ON EDUCATION TRAINING TO PROMOTE STARTUPS Nguyen Minh Hanh1* ABSTRACT: Starting a business is no longer a phenomenon in a country but a global development trend. Many countries are now finding ways to promote startups, overtake new technologies, and become pioneers in high-tech fields. To achieve these results, countries are now fully aware of the role of education and training and innovation. Therefore, studying the experiences of developed countries leading in terms of startups such as the United States, Finland, Israel and Singapore is very necessary for Vietnam to take the right steps to creatively innovate. Education and training are an indispensable factor for startup entrepreneurship. The Government of Vietnam is currently very active in promoting the development of young entrepreneurs. To get the creative step but firmly, businesses need training and education policies of universities also need to change to catch up with the development trend of the technology revolution 4.0. Keywords: Startup, experience, training, education, startups. 1.1. UNDERSTAND WHAT IS STARTUP 1.1.1. What is a startup? On Wikipedia, startup is the term for companies that are in the initial stage of business in general, and is often used in the narrow sense of technology companies, set up business. Startup is an organization designed to provide products and services under the most uncertain conditions. 1.1.2. Characteristics of startups Breakthrough: creating something that has never existed in the market or creating a better value than what is available, such as the ability to create a new segment in production (such as a personal healthcare device) or a brand new business model (such as AirBnb), or a unique, unheard-of technology (such as 3D printing). Growth: A startup company will not set limits on growth, and they have the ambition to grow to the greatest possible extent. They make a huge impact and can be considered pioneers (as Apple’s smartphone is the first company to explore and always lead in the segment later) Factors needed to start a business. There are large amount of factors to be successful in starting a business, which may include some of the following key elements: - Creativity - Financial resource - Basic knowledge of the subject - Financial management skills and strategic business planning. Therefore, education can be seen as a very important factor for a startup entrepreneur. * Academy of Finance, Ha Noi, Vietnam, Corresponding author. Tel.: +840946543785. E-mail address: nguyenminhhhanh202@gmail.com 175 INTERNATIONAL CONFERENCE STARTUP AND INNOVATION NATION According to the World Economic Forum 2013, a startup eco-system consists of the following elements: 1. Market 2. Human resources 3. Financial resources 4. Startup support systems (mentors, advisors, etc.) 5. Legal framework and infrastructure 6. Education and Training 7. Universities and institutes 8. National culture As such, education and training are an integral part of a nation’s entrepreneurial ecosystem. For the successful startup, human resources for this activity need to be trained in reputable institutions. Consequently, universities and practitioners should plan for this trend, launching training programs for startups The role of education with creative startups To better understand the role of universities, we consider the paradigm of knowledge transfer and the way in which knowledge is spread naturally. “Visible knowledge” is authentic and easy to express. “Hidden knowledge” is invisible and difficult to describe. It is not easy to express and is often highly personal. In order to develop new technologies and processes, the industry needs hidden knowledge. Therefore, the gap between what the industry needs and what the university has in developing the basic knowledge is legalized and delivered through text, patents. Industries need hidden knowledge to be able to apply and explain specific situations. 1.2. Education and training experience for startups in the world 1.2.1. American experience In the United States, between the 1970s and the mid-2000s, 500,000 to 600,000 new businesses opened each year and the emergence of powerful corporations made the US economy peak. What made this development of America? There are many factors that make America flourish, but the American entrepreneurial spirit and the important role of the university are one of the determining factors. Firstly, college education is highly regarded by the US Government, and is considered to be a key driver of innovation. Policy-makers in the United States argue that universities play an important role in developing the regional economy and promoting entrepreneurship. And indeed in the United States, universities have made a huge contribution to the nation’s entrepreneurial movement, for example: - The Massachusetts Institute of Technology Valley plays a role in promoting industry in Boston and Stanford University in the Silicon Valley region. MIT has helped to advance the digital age by paving the way for modern computing and networking technologies, writing interactive user software. MIT has benefited not only industrial companies, but it has also had closer relationships with its new sponsors, volunteer organizations and the federal government. - NJIT (New Jersey Institute of Technology). NJIT see economic development as one of its four major missions. - Lehigh University has become a pioneer for regional economic development by computer and software. Secondly, American universities build their way of life and culture in the university. 176 HỘI THẢO KHOA HỌC QUỐC TẾ KHỞI NGHIỆP ĐỔI MỚI SÁNG TẠO QUỐC GIA Babson, the first university in the United States for three consecutive years of teaching startups, is ranked in the top three in the US News & World Report. Babson builds entrepreneurial culture by encouraging students to test new business ideas; giving scholarships to students from the first year, supporting the startup knowledge for students by specialized courses such as legal, intellectual property for products, product quality standards ... Thirdly, Developing university- and industry-linking programs. Collaboration between companies and universities manifests itself in many ways. According to the National Science Foundation (NSF), there are four components of a university-company relationship: research support, research collaboration, knowledge transfer and technology transfer. - Research support: includes both financial and equipment support for the university from the industry. Value-added contributions include: providing flexible, modern laboratories; Development programs in focus areas. - Research Collaboration: Universities develop the form of collaborative research with support from industrial business. In the United States, NSF has actively encouraged the formation of research collaborations through the establishment of research centers such as the ERC (Engineering Research Center), the IUCRC (Industry University Cooperative Research Center). It provides basic forms for collaboration, to facilitate collaboration between universities and industrial companies. - Knowledge transfer: including communication activities (both formal and informal), exchange between students and faculties. The cohesive activities of companies in the university curriculum are the main mechanism for the transfer of knowledge. - Technology transfer: This activity is based on research cooperation with the industry. The US Department of Agriculture develops expanded service models in the agricultural sector for the transfer of agricultural technology to farmers. In particular, universities are the main source of information. Fourthly, universities play an active role in setting up different organizations such as business incubators, science parks, technology parks, etc. to support business development and startup businesses. This depends on their ability and the target strategy of starting a business. Incubators mainly focus on centers and resources related to infrastructure. The projects within the incubator have excellent opportunities for connection with other supportive resources. 1.2.2. Finnish experience Finland has always been considered one of the world’s leading technology startups, which have produced technology giants like Linux and Nokia, as well as popular global games such as Angry Bird and Clash of the Titans. Clans are ranked high in international education. Startup in Finland is not only famous for startups like Angry Birds, but also for the development of dozens of startups in the education sector with a startup worth $ 1 billion each. Only in 2014, more than 400 new high-tech companies were established in Finland. Firstly, the Government, represented by the Ministry of Education of Finland, gives universities the autonomy to adjust lessons and teaching method in large scale. This will give the school enough space to easily adapt to changes in the social needs of the school. For example, a high school in Espoo has chosen technology as its highlight in the curriculum. Saarnilaakson Koulu offers a special class of only 20 students who specialize in exploring information and communication technology applications across a variety of subjects. In Finland, most teachers and lecturers are active in their own curriculum and are capable of 177 INTERNATIONAL CONFERENCE STARTUP AND INNOVATION NATION doing their own research. So when teachers have ideas they can promote research in the classroom and then gradually expanded. Therefore, startup eco-systems in Finland will be owned by education, while technology is only a tool for developing truly useful products. Secondly, the Finnish Government focuses on supporting and encouraging startups among students, mainly in the field of technology. The Startup is supported by scientific studies from universities in Finland. These studies serve as an important benchmark for Startup products in the right direction, suitable for users not only in Finland but globally. Thirdly, the government provides funding to universities to study new business models and technology products. Combination of education and startup in Finland, other than two traditional functions are research and research-based education, the third function is equally important to play a major role in providing new technology and business models for economic development and innovation in the region. To perform the third function, the government provides 65 percent capital and universities will find the remaining 35 percent. The 2004 “Entrepreneurship in Finnish universities” report by Piia Nurmi and Kaisu Paasio studied 21 universities in Finland on startup assistance. The report stated that: - Startup is not just formed in multidisciplinary schools. Students of the school understand the spirit of starting a business. Regularly organized business activities will have the effect of promoting startups with students of universities with areas of intensive training. - Business economics Business training and startups are very powerful in many ways. Fourthly, form the culture of starting a business when still in school. In Finland, startup education is very strong, so that from the moment you sit in the school, students here can “think of a company.” Business Training for Students They offer business courses to a wide range of students. Schools encourage startups by engaging in technology transfer and spin off models, developing existing businesses by commercializing them based on school research. Spin off technology is a technology company that implements the results of applied research by scientists in the form of co-ownership of research institutions and inventors, and Managed independently from the research facility. The company develops and manufactures products from the technology developed by the researcher, and sells the product to the market through appropriate distribution channels. Or on a smaller scale, a spin-off company can be a viable medium to further develop technology to deliver to larger manufacturing companies. Fifthly, besides education in schools, Finnish students are supported by many non-governmental organizations such as the Economic Information Office (EIO) for more practical knowledge. Startup promoters often organize youth events in areas such as programming and thinking development to encourage students’ connection and aspirations. In Finland, students approach startup businesses as soon as possible, as this will help them to have a common voice for future startups. Financial support from startup like many other startup eco-systems, Finland has a very good investment and infrastructure system to support startups in the technology sector. 1.2.3. Israel’s experience Israel’s economic growth story has peaked up by 50 times in the past 60 years, not just the story of entrepreneurship. The history of Israel is a country that has experienced stagnant inflation, from a dry, lifeless country, but the economy has grown tremendously. In 2016, the population of Israel has yet to reach 8.5 million, but there are 6,500 technology companies, 24 government technology incubators, more than 178 HỘI THẢO KHOA HỌC QUỐC TẾ KHỞI NGHIỆP ĐỔI MỚI SÁNG TẠO QUỐC GIA 50 accelerated startups; No. 1 in the world for attracting venture capitalists ... The decisive factor for this success of the Israel economy is not just the story of a violent nation, entrepreneurial spirit, local factorsor pure politics. Students at universities are a significant resource, a strong startup mentality, entrepreneurship with universities, as well as technology incubation and acceleration programs. They are given opportunities to create as much creative ideas as possible. Firstly, build a culture and startup skills In Israel, most people join the army before entering university. In the military, many have the opportunity to learn more about technology, as this is a key element in communication and other activities. The environment and culture of the Israeli military is highly encouraged by the startup and leadership. Military training also imbues the values needed to build and develop startup companies. When entering the university, from the moment of sitting in the lecture hall, students have been trained and imparted knowledge about starting a business. In Israel, it is no stranger to refer to the term “startup” because it is considered to be a culture of entrepreneurship. The good thing about the culture of starting a business here is that not every country can do it: respect for ideas, culture of accepting failures, dare to face new and strange things. Secondly, students are encouraged to start their own business. Students from the second year onwards are almost obligated to have their own business project, start a company, start a business ... All of that helps students in Israel no longer strange to the business startup world later. In particular, eight colleges and more than 70 public and private colleges have been trained in entrepreneurship. Technion University, Hebrew University of Jerusalem, Tel Aviv University, Haifa University, all integrated into the startup center to offer courses and startup modules for students. These programs are for both undergraduate and graduate students. Shamoon’s engineering college is launching an entrepreneurial startup program that offers startup modules, business training, and mentor mentorship to startup sophomores. However, startup programs for graduate students are often taught in a more selective and technology-driven way. Thirdly, universities actively implement programs focusing on advanced skills. The program aims to provide key executives, effectively in creating connections and having practical mentor elements. Specifically, the following programs are of interest: The Innovation Management Forum offers management training for large companies in the high tech and traditional industries. It is a series of monthly lessons and meets top executives, researchers and leaders, CEOs. The Moving Up program focuses specifically on the operation of the traditional industry. It is a collaborative effort between Technion University and the Ministry of Economy & Industry. The program includes 6 seminars, one month’s lectures, real-life situations, meet the guests, mentors. During the workshop, attendees listened to lectures with a theme that focused on innovation in organizational management. The main objectives include innovation strategies, the journey of ideas, change management and leadership topics, team work, innovation in the global world, innovative marketing strategies, reativity and human resources strategy. The program provides participants with a variety of tools that focus on encouraging and implementing innovative processes in their organizations. Participants are guided by startup professionals in planning and implementing specific projects. Moving to the north is the shift from SMEs to traditional industries in the northern border. The goal is to encourage collaboration and innovation among participating companies through a series of practical workshops that go beyond organizational innovation. Fourthly, universities encourage and train students to build entrepreneurial ideas. Program such as JA - YE Europe, which organizes activities in Israel through the Association of Young Entrepreneurs, 179 INTERNATIONAL CONFERENCE STARTUP AND INNOVATION NATION supports groups of 15-18 year olds participating in the mini - corporation program. Under the guidance of school counselors, centers and volunteer mentors. It also offers a 6-hour Program Company approach to 14-15 year olds. Fifthly, programs co-located with universities and businesses Typically the program is submitted to the IIA (Israel Innovation Authority programs) with an annual budget of 200 million NIS. It is the main part of using the Magnet Consortia program to support R&D projects with the goal of increasing competitiveness by allowing companies to work with researchers from at least one research institute from leading general technology projects to projects that bring new advantages. The program provides support for the company’s conditions and can be up to 66% of the cost, while academia can be up to 80% of the cost, while the remaining 20% will be spent by the partners. The project has a life cycle of 3-5 years. Many projects have been made with the Technion Institute - Israel, a public university in Haifa. Under the Magnet Consortia program, it is a series of smaller programs. Magneton provides over 66% of R&D funding, which is a real testament to the relationship that exists between technology companies and academia. The Noffar program provides over 90% of the cost of developing products from companies in the industry for the transfer of academic research into specialized industrial applications in the field of biotechnology and nanotechnology. 1.3. CONCLUDE By exploring the entrepreneurial ecosystem’s experiences, it is important to see the university role in the Singapore startup ecosystem. Universities are a pioneer and leading force in initiatives to support the entrepreneurial community by engaging in entrepreneurial training, enhancing entrepreneurship, seting up workspaces as well as organizing connection events. Universities in Vietnam should actively work with government representatives to directly implement government startup programs and policies. 1.4. REFERENCES Websites: https://en.wikipedia.org/wiki/Startup_company https://singapore.startups-list.com/ https://www.gov.sg/...press-room/news/content/we-need-more-startups-in-singapore https://www.startupranking.com/top/united-states https://www.startupexperience.com/ https://www.startupranking.com/top/singapore https://www.timesofisrael.com/startup-israel/ https://www.tripadvisor.com/...Venture_Hostel_for_Startups_Entrepreneurs-Singapore.html