Graduate entrepreneurship: a critical review of problems, issues and personal competencies

The entrepreneurial potential of graduates has risen in the national agenda and has been attracting the interest of policy makers, educationalists and development agencies in recent years. This paper focuses on a detailed study into the entrepreneurial activities of graduates in East Anglia and principally examines issues impacting upon their business development. Seven main issues were investigated; business establishment, location, premises, concerns, advice utilisation, education and training and support requirements. A sample of 39 graduate businesses that commenced in the past five years was assembled and comprehensively assessed. The entrepreneur's ages ranged from 20 to 26 years, with a mean business age of 2.4 years. The findings are significant in respect of each of the categories of investigation and principally confirmed that the graduates were poorly prepared for business activity. Two major issues of concern were confirmed, namely marketing and finance, the latter of which increased as time progressed. Elements relating to all of the seven issues are explored at both business establishment and development stages, mainly because it was recognised that these would materially change over time. The value and impact of business advice is explored and rated in respect of three sources, the Princes Trust, Business Link and the Enterprise Agency. The paper concludes with an examination of the competency of graduates, through the introduction of three categories of competency and the application of Gadenne's seven elements.