1) The document discusses entrepreneurship education in Latvian higher education institutions and acquisition of entrepreneurial skills by university graduates in Latvia. 2) It analyzes data from two surveys of Latvian university graduates that show graduates acquired theoretical knowledge at university but lacked entrepreneurial skills. 3) The conclusion is that Latvian university programs need to better integrate training in entrepreneurial skills and strengthen collaboration between universities and businesses to transfer these skills.

1. International conference
“Entrepreneurship education - a priority for
the higher education institutions”
8 - 9 October 2012 Bucharest, Romania
Juris Krumins
University of Latvia, Riga
Acquisition of entrepreneurial skills during and
after university studies: case of Latvia
1

2. Population: 2.07 millions (2011)
Number of students: 97 035
or 4.7 % of total population.
Enrollees 31 941; Graduates 24 825
33 HE institutions (2011):
- 17 state (incl. 6 Universities),
- 16 private,
+24 HE colleges
- 17 state
- 7 private 2

3. Coordination in HE
Academics
State Market
Clark (1983)

4. 4

5. Population projection by single age groups, Latvia
5

6. Enrolment - total
6

7. Number of study places in Latvia’s higher education institutions and
colleges, subsidized by state or local government budget or covered by
tuition fee as private contribution (at the beginning of academic year)
7

8. Growing global competitiveness and
recent economic crisis has underlined
a need for wider acquisition of
entrepreneurial skills by university
students from all study areas,
particularly in the Central and East
European countries.
The goal of this study is to analyze
acquisition of entrepreneurial skills
during and after university studies in
Latvia.
Study covers formal academic and
professional higher education and
continuing education.
8

9. Student and graduate statistics are
gathered and analyzed in Latvia on
institutional, regional and national level
(see: csb.gov.lv; izm.gov.lv)
Surveys and interviews are performed on
regular basis.
Self evaluation and external evaluation
reports are available publicly for all
study programs and institutions of higher
education (see: Centre of Quality
Assurance in Higher Education -
www.aiknc.lv )

10. Data and methods
Two sample survey data are used in the analysis
1) Survey-I of 2,491 graduates from Latvian higher education institutions (years
2003 and 2005), performed during 2006-2007. Stratified random sampling.
Respondents were selected from the academic databases of more than 30
institutions of higher education (including colleges).
85% of all interviewed graduates were employees, 5% employers, 3% self-
employed and rest were nonworking.
2) Survey-II of 4,909 university graduates having the last university diploma since
2006, performed during Nov.-Dec. 2011. Respondents of that Internet survey were
selected from the academic databases of all six Latvia’s universities (University of
Latvia, Riga Technical University, Latvia University of Agriculture, Liepaja
University, Daugavpils University, Riga Stradins University).
Among all respondents 78% studied full-time and 22% part-time, 94% resided in
Latvia, but 6% abroad.
10

11. Net salary of graduates during previous month by types
of study programs (Data: Survey-I, n=2491)
450
400
350
300
250
200
150 LVL
100
50
0
Pro BA Pro MA
f-1 f-2*
11

12. Students employed during studies by types of study
programs (Data: Survey-I, n=2491)
100
90
80
70
60
50
40 %
30
20
10
0
BA Prof- Prof- MA
1 2 12

13. „Was your work during studies related to qualification
acquired in education institution?”
(Data: Survey-I, n=2491)
(subjective assessment)
60
50
40
30
% of empl. students
20
10
0
Completely Partially Not at all
13

14. Graduation probabilities with the 1st cycle or 2nd cycle diploma by
years of education (per cent of the initial cohort, University of
Latvia - 2002)
3 years 4 years 5 years 6 years 7 years 8 years
1st cycle Males 1.8 29.5 41.6 45.9 47.3 49.6
Females 2.8 30.4 53.3 60.7 63.3 66.3
M + F 2.5 30.1 50.2 56.6 58.8 61.6
2nd cycle Males 0 0 1.0 11.8 16.4 17.3
Females 0 0 1.2 11.9 19.0 20.1
M + F 0 0 1.2 11.9 18.3 19.3
Source: Cunska Zane 2012.

15. Net salary (LVL) of employed graduates according to compliance to acquired
qualification by education programme groups
Education programme Profession comply with Profession does not comply
group qualification with qualification
Pedagogic education 218 (100%) 277 (127%)
Humanities & arts 287 (100%) 327 (114%)
Natural sciences 370 (100%) 335 (91%)
Agriculture 240 (100%) 276 (115%)
Health care & social welfare
266 (100%) 394 (148%)
Services 348 (100%) 294 (84%)
Commerce & administration
373 (100%) 327 (88%)
Law 505 (100%) 271 (54%)
Engineering 413 (100%) 374 (91%)
15

16. Higher Education Council. European Social Fund Project “Evaluation
of Higher Education Study Programmes and proposals for Quality
Improvement”. Retrieved 14 August 2012 from
http://www.aip.lv/eng_tasks_ESF_proj_about.htm
According to information from academic data-bases, site visits, self-
evaluation and external evaluation all study programmes by the
Project in the June 2012 were grouped in three groups –
1) qualitative and sustainable programmes;
2) programmes requiring improvements,
3) programmes which usefulness is questionable.
Among evaluated 854 study programmes 58 or 7% were assigned to
the third group, which mostly included programmes in social
science and business administration. Experts proposed to finish
dividing study programmes in academic and professional and to
secure integration of academic competencies and professional
skills. 16

17. Demand to increase a role of professional / entrepreneurial skills
All tertiary study programmes in Latvia are designed according to the State
Standards for education and are divided in two groups – academic and
professional.
Standard form 2001 introduced regulation for so-called integrated
academic-professional study programmes – higher professional education
Bachelor’s and Master’s study programmes, graduates of which are
awarded both academic degree and qualification. State Standard defines a
length of internship period and acquisition of entrepreneurial skills for
professional programmes only.
Content of academic study programs in that respect relay on institutions of
higher education. In the large part of academic study programs modules or
courses in entrepreneurship and periods of internship are missing.
Experts proposed to finish dividing study programmes in academic and
professional and to secure integration of academic competencies and
professional skills
17

18. Survey II (n=4909 university graduates).
Average assessments to given statements were calculated, using a six point scale:
0 – not acquired, 1 – at very low level, 2 – at low level, 3 – at medium level, 4 – at
high level, 5 – at very high level.
Question: “To what extent that statement “N” characterize your university education
in general?”
The highest assessment: “Obtained education is sufficient to continue studies”-3.25,
The lowest assessment: “Obtained education sufficiently contributed to
formation/development of entrepreneurial skills” – 2.22 .
Question: “Evaluate please, a level of knowledge and skills obtained during your
university studies”
The highest assessment: “Theoretical competency in a chosen field of study” – 3.68,
The lowest assessment: “Skills necessary to begin entrepreneurial activity” – 1.90.
Consequently - There is a well-grounded need to complement existing university
study programs by adding training of entrepreneurial skills and career development.
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19. Both Surveys reported rather weak entrepreneurial activity of graduates to
start or continue own business.
Graduates according to the Survey I (n=2491) results were: employees
85%, jobless (students, housekeepers etc.) 8%, employers 5% and self-
employed 2%.
Answers to the question “Your activities during the six months after
graduation of university” in Survey II (n=4909) were distributed by graduates
as follows (note: respondents could give a several answers to that question,
therefore a sum exceeds 100%):
Continuation of the same employment as during a studies 61.8
Continuation of studies 28.7
Found a new job 17.7
Looking for employment, but did not found 10.3
Started own business or self-employment 2.8
Other 1.4
19

20. Ambition to start own business could be realized after completion of studies
- during a longer time period!
Answers to question “Are you planning to start your own entrepreneurial
activity during the next three years”, given by university graduates, who are
not employers or self-employed (n=4459), look more promising:
All answers 100%
of which
I am not planning to go into business 40.3
I am planning to establish a new company/business 10.0
I am planning to go into self-employment 4.1
I am planning to buy existing company/business 0.3
Hard to say 45.3
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21. Respondents (n=4459) presented following answers to the question “What factors,
by your mind hinder to start your own entrepreneurial activity or to go into self-
employment?”
(Note: respondents could give a several answers to that question; therefore a sum exceeds
100%):
Lack of financial support 46.2
Lack of proficiency/skills to start and to develop own business 31.8
Fear to take a risk of failure or bankruptcy 27.6
No guarantees for a regular income 27.5
Complicated administrative procedures 25.2
Now idea how to start business 23.5
Lack of initiative to start an entrepreneurial activity 19.4
None hindrance 9.5
21
Hard to say 7.3

22. Collaboration between the universities and companies
Important impulse in strengthening collaboration between the
universities and companies usually is given by graduates.
Results of the Survey II confirmed that 67.6 per cent of
graduates, who are employers and self-employed (n=450),
are interested in further collaboration with universities.
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23. Table. Evaluation of intensiveness of collaboration between companies and
university, Latvia 2011
Source: Survey II (n = 450). * Respondents, who are employers or self-employed.
Of which - evaluation of intensiveness of activity given
All by graduates*
Activity answers, %
Never Rarely Regularly Hard to
say
Provision of site for field practice 100.0 38.9 26.0 28.7 6.4
Continuing education of employees 100.0 40.4 25.8 25.6 8.2
Transfer of knowledge, innovations 100.0 42.0 23.1 23.8 11.1
Recruitment of university academic 100.0 44.2 23.1 24.7 8.0
staff
Participation in curriculum 100.0 55.1 22.2 14.5 8.2
development and guest lecturing
Research funding and co- 100.0 60.0 17.1 12.9 10.0
partnership
Participation in career promotion 100.0 64.0 17.6 9.3 9.1
activities
Grants and sponsorship 100.0 69.6 14.0 8.0 238.4

24. Innovations focused on acquisition of entrepreneurial skills and career
development
New interdisciplinary centres and units are established, which are oriented to
acquisition of entrepreneurial skills, professional and career development,
technology transfer and innovations:
University of Latvia – Career Centre, Innovation Centre, Management and
Business Education Centre;
Riga Technical University – Innovation and Technology Transfer Centre, Business
Incubator;
Latvia University of Agriculture - Business and Technology Incubator, Centre for
Life-long Learning;
Daugavpils University – Professional Development Centre, Technology Transfer
Office;
Riga Stradins University – Technology Transfer Office.
Joint centres established together by several institutions of higher education,
companies and municipalities - Latvia Technology Park, Kurzeme Business
Incubator, Rezekne Innovation Centre, Ventspils High Technology Park, Jelgava
Business Incubator, Valmiera Business and Innovation Incubator.
The main activities of technology, business and innovation centres are to support
innovative entrepreneurship activities, to offer consultancy services, to assist in
finding partners, to involve in activities students and graduates motivated in
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business.

25. Continuing education
Table. Continuation of formal and informal education in Latvia (per cent of graduates
from previous level of education) Source: Survey I (n=2491).
Note: The sum of proportions in per cent exceeds 100 per cent due to overlapping of answers concerning
continuation of different forms of education.
Formal Informal Professional
education education retraining
courses
1st level professional higher 47 44 26
education (college)
2nd level professional higher 38 49 31
education (after completed
secondary education)
Academic bachelor degree 63 43 26
2nd level professional higher 23 61 43
education (after obtained higher
education diploma)
Academic Master degree 19 66 44 25

26. Conclusions
• There is a well-grounded need to complement existing
university study programs by adding training of
entrepreneurial skills and counseling activities. Work
experience, quality of acquired theoretical knowledge and
professional skills are highly evaluated in the labour market.
Proffessional experience also influences remuneration.
• The key forms of further collaboration between companies
and university are: provision of site for field practice, guest
lecturing, mentoring, exchange of information and experience,
recruitment of graduates and students, joint research
projects.
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27. Informal education and professional retraining courses also plays an
important role in acquisition of entrepreneurial skills. Necessary
improvements in training of professional/entrepreneurial skills are stressed by
external experts involved in the evaluation of study programs.
Further strengthening of ties between the companies and universities could
benefit in transfer entrepreneurial skills to academic staff and students.
Business incubators and Innovation centers are important facilitators of the
transfer of skills and ideas.
Reforms in higher education in Latvia envisage greater integration of
academic and professional study programs, closer cooperation of education
institutions with employers and professional associations in curriculum
development, teaching, and training of entrepreneurial skills.
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