Alliance Manchester Business School’s Robert Phillips outlines why the relationship between universities and alumni entrepreneurs should be mutually beneficial, and how to facilitate graduates’ access to university resources and initiatives far beyond their time as students
pproximately 5% of recent graduates in the UK are self-employed or freelance, according to the latest data from the UK’s HESA (Higher Education Statistics Agency), with only 0.6% having actually started their own business. But many graduates begin careers in their chosen industry before spotting an opportunity to start their own business. Indeed, setting out on their own often happens many years after graduating, so it’s right that many will ask what support is available from their university in the years after they have left the institution.
There is an abundance of support available for current students who want to start their own business. From on-curricular courses, incubators, accelerators, boot camps, competitions and skills training, to practical support, such as mentoring and funding. The good news is that many of these activities are also open to alumni who wish to tap into the resources available to take their business ideas forward. Indeed, universities actively look to support student and alumni ventures for a number of reasons:
- It could generate a source of income from future benefactors
- Well-known alumni can help to raise a university’s profile
- It can help to attract new students
- It shows engagement with business and the wider community
It is for the reasons above that we have seen an increase in the support available for both student and alumni entrepreneurs. Universities should always be interested in championing alumni success stories and entrepreneurs would do well to make their alma maters aware of what they are doing – be it a high-tech start-up or a social enterprise.
Making connections
One of the most obvious ways in which alumni can leverage support from their university is through networking opportunities. This could be through formal networking clubs, by offering to speak at events, or by providing guest lectures for current students. Networking clubs allow alumni to meet other entrepreneurs from different subject areas and these connections could ultimately become future suppliers, customers or collaborators.
For example, The London School of Economics (LSE) Entrepreneurs’ Alumni Group offers access to investors as well as networking with alumni and students, and the Princeton Entrepreneurship Council offers access to further funding, networking and mentors, provided you already have $100K USD invested. Harvard Alumni Entrepreneurs also offers networking globally and covers all schools within the university. At Alliance Manchester Business School (Alliance MBS), we host regular events that involve both networking and talks from high-profile entrepreneurs. Recent speakers have included Sir Charles Dunstone, Co-Founder of Carphone Warehouse, and the former-footballer-turned-entrepreneur, Gary Neville.
There are also universities that offer an ‘entrepreneur in residence’ scheme, such as the University of Portsmouth and Lancaster University. This is helpful for those looking to become a more permanent fixture at
their university, as it provides access to research, as well as access to the student entrepreneurship ecosystem.
Live projects
Another way universities support alumni is through project work. Alumni entrepreneurs will often provide live projects for students to work on – for example, this could be MBA projects which help a business as well as the next generation of students, with the added bonus of providing a means of giving back to the university. At Alliance MBS, MBA students spend up to 2,000 hours working on their project – these projects can be invaluable for entrepreneurs running scale-up businesses and are often considered more cost effective than hiring a consultancy company. Recent projects at Alliance MBS have not only featured traditional large corporates, but also included smaller enterprises, such as Delamere Dairies and not-for-profits, such as the UK’s Air Ambulance charity, National Trust and YMCA.
Many universities also incorporate live company projects into their courses and reach out to their alumni networks to deliver these. These projects do not necessarily have to be solely for business students, and many are used in subjects such as computer science and biosciences. This can be a helpful recruitment tool if you are looking for future talent.
Timely collaboration is key
Collaboration with a university can also help entrepreneurs’ bottom line. For example, alumni entrepreneurs can be given access to equipment that are out of budget, and therefore out of reach, for many SMEs, such as analytical equipment or new technology. Many universities also have 3D printing technology which can help with prototyping, especially for those using the ‘lean startup’ method for bringing new products to life. There is also the possibility of licensing patents filed by the university – which is a win-win for both parties.
While there is no time limit for much of the support that is available, some initiatives need an entrepreneur to have graduated within, for example, the last three to five years – so it is important to check. Many universities allow alumni to enter their business plan competitions, and this is useful for businesses that are at an early stage, as it can provide much-needed injections of cash. It can also provide access to in-kind support, such as incubator space, mentors and access to intellectual property lawyers. For example, The University of Manchester’s Venture Further competition awards £12,000 GBP in prize money across each of its five categories of technology, creative, environmental, social,
and business.
Beyond academia
Alumni entrepreneurs have reported that practical support measures, rather than solely academic, are needed to encourage the creation of startups. This could represent opportunities to intern with an entrepreneur, rather than at large organisations, or support with budgets and basic financial training. With this in mind, many universities now offer access to workshops that are specifically designed to upskill students and alumni on topics such as finance and marketing.
There are also excellent opportunities for alumni entrepreneurs to engage with prospective customers at student markets, demo days and pop-up shops, and this is a great way to gain feedback on new products. There are more than 200 accelerators in the UK, many of which are run by universities, and these can prove invaluable. They enable entrepreneurs to learn quickly and evidence has shown alumni ventures which have graduated from an accelerator programme are more likely to survive, and on average, obtain a higher amount of funding than those that have not.
Maintaining links with the university can also present graduates with other opportunities for funding – many Schools offer ‘seed funds’ and some UK universities are part of Campus Capital, a student-led venture capital company that invests £50,000-£200,000 GBP in early-stage technology businesses. Saïd Business School at the University of Oxford has a seed fund operated by MBA students which is open for students, staff or alumni to apply for up to £50,000 GBP in cash, while the University of Manchester has a £5 million GBP Proof of Principle fund for spin-out ventures based on the university’s research.
For alumni who came to the UK to study, there is also the opportunity to apply for a startup visa which provides residence in the UK while you work on your idea. Many universities participate in this scheme and it has proved successful at the University of Manchester, where several successful businesses have been created including babywear brand, Joy and Joe, football experiential business, Homefans and eyewear startup, Specscart.
What should be clear is that universities are invested in the success of their students, even after they have graduated. The alumni-university relationship is one that should be mutually beneficial and, as a result, you will find that many universities are very happy to support the entrepreneurial endeavours of their alumni wherever they can.
Robert Phillips is a Senior Lecturer at Alliance Manchester Business School, where he teaches entrepreneurship to scientists and engineers. With a background in biological sciences, he has worked in industry with GSK and for university spinouts. He holds an MSc from University College London and a PhD from the University of Southampton.
