Public and elite universities on entrepreneurial education : a case study on the City of Guadalajara Jalisco, Mexico

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Public and Elite Universities on entrepreneurial

education

A case study on the City of Guadalajara Jalisco, Mexico.

Master Thesis Entrepreneurship

Joint degree Universiteit van Amsterdam and Vrije Universiteit Amsterdam

By Gabriel Verdugo Núñez

Student number: UvA 11595612 VU 2629675 Faculty of Business and Economics

Thesis supervisor: Professor P.J. Peverelli Date: July 1st, 2018

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P a g e 1 | 43 Preface

This is the final assignment of my Master in Entrepreneurship, it involved hard work, effort and setbacks, but it was a fulfilling learning process to go through. I thank my supervisors, friends and family for all their patience during the elaboration of the document. Following by thanking the respondents that were always enthusiastic to participate even for second calls.

The copyright of this thesis rests only with me. I am responsible for the content of this document, including mistakes. The Universiteit van Amsterdam and the Vrije Universiteit cannot be held liable for the content of this thesis.

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P a g e 2 | 43 Abstract

Nowadays entrepreneurship as an academical program has increased its popularity, aiming to professionalize and observe the entrepreneurial phenomenon. Several universities around the world are working along with governments and international organizations to promote they study of entrepreneurship. Yet, in several developing countries around the world, it is relatively new to adopt entrepreneurship as an academical program. Hence there is not much understanding of how entrepreneurial education adapts in specific situations, region by region. This document exercises a research consulting eleven academics dedicated to entrepreneurship, all of them located in the city of Guadalajara Jalisco, Mexico. The intention in this study is to inductively understand how the process of becoming and entrepreneur via university is affected by the existence of public education and private/elite education as dynamic. The inductive analysis observed that the processes that move the aspiring entrepreneur to become a practitioner of entrepreneurship are influenced by the choice of public or private/elite universities. This influence speeds up the decision of entrepreneurship as a career, change the social connotations of studying entrepreneurship, and aim to ensure the adoption of entrepreneurship as a practice. The findings of this document may imply theoretical contributions, having practical implications for policymakers and academics aiming to promote education in entrepreneurship as a useful tool for development.

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P a g e 3 | 43

It is becoming more common to find entrepreneurship as an undergraduate or graduate program at universities. Entrepreneurship as an academic area of studies has gained relevance in the last decades as an efficient way to promote economic development and move away from economic stagnation (Potter, 2008). It is under this premise that the teaching of entrepreneurship has been spread, promoted by governments on their policy agendas, and finally arrived in the university classrooms. Aspiring entrepreneurs had been benefited with the possibility of acquiring academical instructions on how to start their ventures, and academical entrepreneurs obtained a validated space for discussion of their area of studies (Gorman H. D., 1997). However, for an area of studies to become relevant and valid for its adoption on the classrooms there are several variables that shall be considered. Not all the entrepreneurs are created equals, the same acknowledgement shall be applied to entrepreneurship in university programs (Giacomin, 2011). A single conception of entrepreneurship as an academical area of study may, for example, not fit the same to the university system of France as well as it does with the one of the United States, hence differences between the systems shall be spotted to create a functional model of entrepreneurship teaching (Boissin, 2009).

Even with university systemic similarities, as the two countries sharing a model of public federal financed and elite privately financed universities, the role of those institutions may not mean the same (Zanten, 2014). Aspiring entrepreneurs may find the existence of such dynamic to have relevance not only over their academical possibility of venturing, but also over the social perceptions that may benefit or affect their entrepreneurial careers (Geiger, 1988). It is important to observe the different influences that environmental factors such as the ones provided by universities of different classification, elite and public, play a role on final entrepreneurial behaviour (Krueger, 1994). Elite university in the case of the United States composes its students on tuition fees, hence the higher economical and academical socio-economic groups, when the public university is mostly sustained by the state contributions and has students with a more diverse socio-economic backgrounds (Stock, 2012).

The model of elite and public university was imported to Mexico on the early 1930’s, since then has aimed to replicate the structure developed in the United States of America (Torres Septién, 1998). The entrepreneurial in university set of minds was adopted in the country firstly by the Instituto Tecnológico y de Estudios Superiores de Monterrey in 1998 in the city of Monterrey Nuevo Leon, to later create its first entrepreneurship program in the city

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P a g e 6 | 43 of Guadalajara in 2005 (Garcia-Garza, 2013). From this point onwards, institutions offering entrepreneurship programs in Mexico have been limited to other elite universities, with no undergraduate program of that nature on public universities. Hence, students that get in to a program of entrepreneurship are conditioned to pay high tuition fees or qualify for a scholarship, having as option business related programs that include entrepreneurship as a course on the public universities. This dynamic on the educational system as is performed in Mexico creates serious gaps and differences on academic as well as on environmental factors inside the universities (Jiménez, 2014). Leading to provide highly differentiated graduates to the labour maker.

There is little research on the influence of entrepreneurial education in Mexico. That is why this research aims to create a better understanding on how the public and elite universities influence this area of studies. For this, the selection of the universities of the metropolitan area of Guadalajara, described as one of the best cities for entrepreneurs by The Oxford Business Group (2018) seem like a pertinent choice to apply the following research questions.

1.1 Research problem and questions

This thesis document has the intention to contribute to existing literature regarding entrepreneurship and education. To accomplish this task, examination of existing gaps on literature will be performed, intending to fill those spaces by analyzing qualitative interview data. The answers will come from academics, and entrepreneurs of both backgrounds; elite universities and public universities on the city of Guadalajara, Jalisco Mexico. This thesis aims to answer the following question:

How does access to Elite University and Public University education influences the process to become an entrepreneur?

Besides the ongoing debate on ‘the best ways to create entrepreneurs’, it is proven that education of any type increases the possibility of engaging in an entrepreneurial activity or project. Therefore, the teaching of entrepreneurship has become a popular way to increase the practice of it. This study aims to understand a dynamic of elite and public universities in the city of Guadalajara, on their aim to create more entrepreneurial driven students. Given that for many students the capacity of attending to a public or elite university is based on their financial

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P a g e 7 | 43 resources, the word used on the question is ‘access’ which will imply that there are impasses for certain students, to attend one or the other.

This thesis will take support for the following secondary questions, to help create a wider frame of understanding to the main research question. The intentions of the questions are based on the circumstances of the choice between elite and public university, to take further explanations of their reasons of choice, and finally a perceived percentage engaging on an entrepreneurial activity.

Why do aspiring entrepreneurs enroll in an elite or public university as a path to start their entrepreneurial careers?

What percentage of graduates of entrepreneurship programs of each type of university engages in entrepreneurship?

What are the differences between both types of universities and how do they affect the teaching of entrepreneurship?

1.2 Relevance

The relevance of this thesis relies on the fact that it covers an under-analysed factor on education of entrepreneurship -the elite and public university dynamics-. Connecting entrepreneurship to the exitance of peculiarities provoked by having the two different university constituencies. The observance of this phenomena in a developing economy (Guadalajara Jalisco, Mexico) context has been relatively unexplored, making this study one of a kind.

Because of the lack of previous studies on the topic and its social nature, it will be conducted using a qualitative research method, addressing how-questions and why-questions, capturing perceptions of the reality of academics and practitioners. The results obtained can give insights to further observance of similar phenomena on cities with developing economies, as well as related fields of research.

There might be suggestions of the possibility of comparing the views obtained to quantitative data in similar scenarios. Studies that suggest the differences between ‘private and public university’ hold certain similarities to the concept of ‘elite and public university’.

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P a g e 8 | 43 Implying that there may be common factors between the private and the elite university. But the proper definition of both will be explored later.

The possibility of giving external validity to this study may be reliable to the whole Mexican university system. Giving the fact that the whole country runs by the same education laws, allowing the co-existence of the elite and the public university. A comparative study with another mayor city in Mexico may complement the interpretations expressed here.

This document may hold useful insights for policy makers related to university education, as well as to universities themselves located in an area with a similar dynamic. As it aims to portray a peculiarity existent in several developing economies, a deeper insight of how the educations system works regarding entrepreneurship may help non-governmental organizations on program developing. The study will show several characteristics that may help students selecting between both sides of the university dynamic, according to what fits better for their futures.

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P a g e 9 | 43 2 Literature review

This first section of the review will observe existent relevant literature and concepts related to the main topic. The literature is related to entrepreneurship and education, elite and public universities, the entrepreneurial intentions, and the environmental factors that promote entrepreneurship. The order of the topics corresponds with the fact that there is no literature that enounces direct the differences for aspiring entrepreneurs, in public and elite universities for the start of their careers. The selection of the topics is made with the idea of creating a better understanding of what surrounds the characteristics of entrepreneurial education, how it might look like on public and elite universities, and what entrepreneurship theories might describe concepts relevant to guide the study.

2.1 Entrepreneurial education

The main intention of this study is to understand the effects of elite or public university on students that aspire to becomes entrepreneurs. By aiming to explain this it is necessary first to make a review about what authors describe mostly as entrepreneurship in education. Because of the selection of entrepreneurship as a first career choice, the later observance is focused on the description of undergraduate programs.

Entrepreneurship is a topic of such relevance, that the students aspiring to become entrepreneurs shall have a specific program designed, with entrepreneurship as main intention (Filion, 2009). This because entrepreneurship is an important component of the economic growth, is a process that engages in complicated dynamics that require academic level instruction and observation (Giacomin, 2011).

The guidelines for the existence of entrepreneurship in education are settled in the possibility of distinguishing and replicate the competencies that enable it (Gorman H. D., 1997). This line of thought becomes complementary to the idea of the personality threats behind entrepreneurial behaviour, increasing or encouraging the possibility of any individual to engage in an entrepreneurial activity (Baert, 2015). Even when the competencies exposed by several authors show to have variations, they are all replicable and compatible with theories surrounding entrepreneurial behaviour.

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P a g e 10 | 43 Entrepreneurial education is designed to challenge the idea that declares that the existence of entrepreneurs comes solemnly by birth (Robinson, 1991). Moving forward, to increase the intention to become an entrepreneur by exposure and practice (Gorman H. D., 1997). Instruction in entrepreneurship becomes a great connector between intention and behaviour. Hence keeping intention as a primary value for the election of entrepreneurship education and its later practice (Krueger, 1994).

The entrepreneurial education on undergraduate level is mostly define as the spread of theoretical and practical knowledge regarding the ways to become and entrepreneur (Jones, 2014). Hence provides the individual with the ability of foreseen commercial opportunities, knowledge and to have the self-esteem to act on them (Béchard, 1997). The topic itself places the programs mostly under the business schools or economic faculties of universities, keeping the differentiation that an undergraduate program of this nature intends to start business, instead of further manage them (Maritz, 2011).

The undergraduate programs on entrepreneurship describe a practical nature, are centred on create; orientation and awareness of new enterprise, promote self-employment or self-sufficiency, and facilitate survival of entrepreneurial businesses (Kirby, 2004). Similarly, understand entrepreneurship, acquire entrepreneurial skills and learn how to initiate a business start-up, are listed by Gibb (1990), as effective steps to move forward with entrepreneurial education. This kind of educational programs are inclined to educate ‘for entrepreneurship’, rather than ‘about entrepreneurship’, given to their practical nature instead of theoretical content (Laukkanen, 2000).

On what is captured by the different authors above, education in entrepreneurship is a developing area of study, settled in a state of current evolution and definition. Nevertheless, it is observable that entrepreneurship as an immediate tool of development must be centred on a more practical nature. Making ‘education for entrepreneurship’ an accessible path for positions on the undergraduate level. Turning practice and exposure to an entrepreneurial environment as keys to move from the entrepreneurial intention to the entrepreneurial behaviour.

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P a g e 11 | 43 2.2 Public and elite University

There is a lack of studies regarding the effects of elite university education and public education over entrepreneurship. That is why this section of the literature reviews, clusters theories and observations related to the coexistence of elite and public university. This is made with the intention to distinguish characteristics of elite and public universities that may or may not host entrepreneurial intentions.

Is not uncommon on the superior education system of several countries, to account private as well as public universities. Typically, the public universities are funded by the state, from where they get most of its resources to sustain the facilities, faculty and services. Its counterpart, the private university, will get most of its resources from donations, investors and tuition fees charged to its students (Altbach, 1999).

In some countries this simple division does not play a relevant role in the university system, and private superior education plays the same role as its public counterpart (Stock, 2012) showing to have a dual position as relevant institutions (Levy, 1986). Contrasting with that view, other education systems will allow the existence of ‘elite universities’, a sub classification of private university (Stock, 2012). This category sets prices that are only payable by the local upper classes, offering according to their perception an education that is ‘more, better or different’ (Geiger, 1988), still, not a generalizable concept because of its lack of precision.

The ‘elite university situation’ came to break the universality of student’s backgrounds principle of public institutions, acting as a social filter, a way to perpetuate positions and perceptions of privilege from the educational system (Torres Septién, 1998). The socio-economic filter ensures that the students come from the upper classes to mix mostly with similar peers, alienating them from a full perception of what composes their societies (Jiménez, 2014).

The three forms of capital -economic, cultural and social- (Bourdieu, 1986) seemed to be clustered inside of elite universities. While in contrast public university only seem to cover the second two, not because is not capable of getting the economic spectrum, but because social constructions surrounding both types of university mostly dictate the distribution (Torres Septién, 1998).

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P a g e 12 | 43 In most cases elite and public universities will contrast on their strong areas of knowledge, by the first one being mostly in business and the second one mostly in humanities and hard sciences (Altbach, 1999). Both corresponding to the nature of their main funders, elite university to economic groups and public university to the local government (Altbach, 1999). Making the elite university as an institution that by nature is more aware of the market, and the public one as one more connected with social topics. Other of the focuses observed in the elite university phenomena is the strength of networks on their campus and off campus life, in order to master practices of dominant classes and increase useful contacts (Zanten, 2014).

By what is expressed by the authors above there are several assumptions that can be done based on them. Starting by the fact that the places where there is a classification of ‘elite university’ as described above will be characterized for clustering the education of the top socio-economic classes. That high socio-economic classes are mostly related to the business and economic environment which permeates on their way of teaching. Finally, that there is a strong perception of prestige and privilege constructed around the students of those institutions. By contrast the public university clusters a more diverse socio-economic background on its students. By setting an academical barrier instead of an economic barrier on their admissions criteria. That the diversified and more numerous amounts of students may not come mostly from high socio-economic backgrounds. Finalizing that in a system that allows elite constructions, public institutions may fail to cluster the economic practices, proper from business groups.

2.3 From entrepreneurial intentions to entrepreneurial careers

The literature, in general, shows a strong debate about what is the consist predictors of entrepreneurial intentions. The intention of this section is to talk about the literature that mostly describes the intentions, personality and environmental factors, that are more commonly related to the choice of entrepreneurial education. Hence this research aims to join factors related to entrepreneurial education with the consideration of elite and public universities.

The entrepreneurial intentions are described as the base to incursion into entrepreneurial behaviour, and the main enabler of entrepreneurship (Krueger, 1994). Entrepreneurship itself represent the figuration of a planned behaviour on which intention plays a vital role. Intentions

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P a g e 13 | 43 are reflected in long planned and long intended new ventures creation, making them a good predictor for entrepreneurial behaviour.

Career-related decisions reflect processes in which believes, attitudes and intentions translate into incursion on a business-related academic program (Lent, 1994). Hence the entrepreneurial intention goes together with awareness, confidence and a sense of self-efficacy (Lent, 1994). This means that entrepreneurs will choose their careers already in certain stage of consciousness of them, under the possibility of starting a venture.

The consciousness of the possibility of enterprising are given by several internal personality factors, as enlisted by Astebro (Astebro, 2014) such as non-pecuniary benefits, low risk aversion, and overconfidence features. These individual characteristics seem to be complementary to the suggestion of the influence of external factors such as; family, social norms, environment and mentors or role models (Ajzen, 1987).

The formation of the entrepreneur will be strongly influenced by a series of exposures that may happen on its environment. The acquisition of valuable networks that may provide legitimacy, information and resources to start the venture, become a first necessity to complement the practical abilities (Elfring, 2003). The external exposures may also account for them, in the shape of social interaction, for example the one provided by Nanda and Sorensen where they prove that the exposition to entrepreneurial peers may increase the possibility of engaging in entrepreneurship (Sørensen, 2010).

Still there are many other enablers for entrepreneurship, where the main mentions are considered on the manner if they can play a role on entrepreneurial education for an undergraduate practical level. Hence the research tried to focus on authors mentioned when the analysis of literature related to entrepreneurial education was performed, trying to keep focus on the ones that may appoint to the personal traits, environmental factors and entrepreneurial intention.

2.4 Connections of the literature review

This section aims to clarify the connections between the three subtopics; entrepreneurial education, public-elite universities, and entrepreneurial intentions-careers. The election of the subtopics is rooted on the idea of explaining the main elements surrounding the research question. Hence stablishing the entrepreneurial education as the main topic that contains the

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P a g e 14 | 43 different types of university below, followed the influence of those styles on entrepreneurial intentions and careers. The inclusion of several theories behind the explanation of entrepreneurial behaviour and enablers (intentions-careers section), behaves as an independent topic. This with the intention of taking the theories expressed by the authors on the third section and analyse them with the findings of the research.

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P a g e 15 | 43 3 Methodology

This section of the document is dedicated to describing the methods employed in this study. The context of the research will be addressed, an overview of the research design, finalizing with the insights of the data collection process, its order and observation.

3.1 Design and context of the research

For this research the found literature related to the topics was consulted, with the intention of get a proper insight of theories relevant for the analysis. There was a continuous observance of previous findings, concepts, perspectives and models to create reliability over the study. The external validity of this study, it aims to generalize its findings over similar case studies, regarding the elite-public dynamic in Mexico. In addition to its ability to replicate the experiment, a total amount of fifteen participants were consulted, to increase reliability (Blumberg, 2011).

The interviews were conducted in a semi-structured way (Blumberg, 2011), following a series of main topics surrounding them with open answers. Outside of small modifications on questions, the interviewees were treated similarly to later code the answers using the method proposed by Gioia (Gioia, 2012). The results of the coding are presented on the Table 2. The Appendix 1 contains the basic structure of the interviews with the questions mostly based on the secondary questions with clarifications requested during the interview process.

The thesis applies a qualitative method of research with the intention of providing data enough for a reasoning of inductive nature, like the one proposed by Blumberg (Blumberg, 2011). The qualitative nature moves along with the idea of a questions settled on why and how, pretending to find the perspective of individual and its conception of reality. The interviewees must explain events, interactions and opinions fitting the description posed by Van de Ven (Van de Ven, 2007).

This study sets its context on the four main universities of the city of Guadalajara Jalisco, Mexico. The document runs a research over academics and practitioners of entrepreneurship. The data collection was made via interviews with electronic media of audio-visual characteristics; Skype, FaceTime or WhatsApp Call. All of them were conducted in Spanish and later one translated into English to be included in this thesis

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P a g e 16 | 43 3.2 Selection of the interviewees

For the selection of the sample, a selective sampling was applied, meaning that the population was identified prior to the data collection (Schatzman, 1973). This technique was applied to determine the interviewees at the beginning of the sampling, moving forward to a theoretical sampling when core ideas and codes started to take shape (Draucker, 2007 ).

The group obtained by the selective sampling was composed by academics/practitioners of entrepreneurship, described by Davidsson (2005) as an effective way to observe entrepreneurial phenomena. Some of them were students themselves of the institutions where they belong now and or studied entrepreneurship as a graduate degree. The distribution of public and elite almost reached the 50-50 distribution. Out of eleven, four came from elite universities, four from public universities and three had mixed backgrounds. Because of this, the whole group was able to give insight of the influences of entrepreneurial education on intention and behaviour. They all had observed or experienced the dynamics, resulting on the suggestions of some of the interviewees to reach for the individuals with mixed background. Following a small sample of 3 acquired by snowballing method, reaching for new individuals by recommendation of the first ones (Douglas, 1983).

The process of selection started by observing the four more relevant universities on the city of Guadalajara. The relevance of those universities was observed on the Quacquarelli Symonds (QS), Times Magazine Ranking and the Academic Ranking of World Universities, procuring that all the showed to have research publications. Listing one large public university, the Universidad de Guadalajara (UDG), and three elite Universities of different sizes; Universidad Panamericana (UP), Instituto de Estudios Superiores de Occidente (ITESO), and the Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM).

On each university several academics were identified, based on their relationship to an entrepreneurship undergraduate programs, or for being related to the development of programs for the area of business and economics. After a period of contacting via email, five became primary interviewees, four were reached after some data was collected and the two left came by recommendation. The following table shows the interviewees and their characteristics of relevance.

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P a g e 17 | 43 3.2.1Table of interviewees (table 1)

Interviewee University Description Interview data

PhD. Claudia Ibarra

ITESO (Elite/Public)

-Academic coordinator of Innovation and Entrepreneurship. -Mix background of public and elite universities. Interviewed on the 10 of May of 2018, via skype. 46 minutes of recording held in Spanish. MSc. Adolfo Moreno Luna ITESM (Elite)

-Academic coordinator of the Bachelor in Creation and Development of New Enterprises. -Elite university background.

Interviewed on the 17 of May of 2018, via skype. 31 minutes of recording held in Spanish. MBA. Fernanda Canale

UP (Elite) -Academic coordinator of the Bachelor on Creation and Direction of Family Enterprise.

-Elite university background.

Interviewed on the 15 of May of 2018, via skype. 30 minutes of recording held in Spanish. MBA. Pilar Lopez ITESO (Elite)

-Academic developer for the Innovation and Entrepreneurship courses.

-Elite university background

Interviewed on the 17 of May of 2018, via skype. 23 minutes of recording held in Spanish. MSc. Jacob Duran UDG (Public/Elite)

-Director of the Innovation and Entrepreneurship Laboratory of the University of Guadalajara -Public Background Interviewed on the 23 of May of 2018, via skype. 30 minutes of recording held in Spanish.

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P a g e 18 | 43 BA. Carlos

Calderon

ITESM (Elite)

-Guest speaker and judge for the entrepreneurship scholarship of the Monterrey Tech.

-Holder of an entrepreneurial venture connected to ITESM for internships. -Elite university background

Interviewed on the 22 of May of 2018, via skype. 28 minutes of recording held in Spanish. MBA. Brando Angulo UDG/UP (Public/Elite)

-Speaker for the “Lets enterprise” campaign on elite and public universities.

-Holder of several venture projects -Public and elite university backgrounds. Interviewed on the 20 of May of 2018, via skype. 35 minutes of recording held in Spanish. PhD. Francisco Quinones UDG (Public)

-Director for the area of Education and Innovation of the faculty of economics.

-Public university background.

Interviewed on the 14 of May of 2018, via skype. 40 minutes of recording held in Spanish. BA. Yousef Kanchi

UP (Elite) -Coach of the Panamerican

University program for

entrepreneurs.

-Holder of a venture for green energy.

-Occasionally coach for public university entrepreneurs.

-Elite university background

Interviewed on the 22 of May of 2018, via skype. 25 minutes of recording held in Spanish. PhD. Elia Marum UDG (Public)

-Director and developer of the program for Social Innovation of the University of Guadalajara.

-Public university background.

Interviewed on the 11 of May of 2018, via skype. 40 minutes of recording held in Spanish.

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P a g e 19 | 43 PhD.

Guadalupe Torres

UP (Elite) -Academic Program Developer for the Business School of the Panamerican University.

-Accountancy consultant for student ventures of the university

-Elite university Background

Interviewed on the 8 of May of 2018, via skype. 29 minutes of recording held in Spanish.

3.3 Collection and measurement of data

All the interviews were held via Skype, except for one that took place via WhatsApp call. The use of electronic media was fundamental on holding this long-distance research, fortunately all the interviews were familiar with the use of it. The questions provided belong to an open-end interview of qualitative nature and are based on the research questions. They were intended to create a main topic and to develop the answer around it. Most of the interviews required around 20 to 30 minutes and were held in Spanish, even when the option of English was giving on the invitation email showed in the Appendix 2. The questions were based on the secondary questions of the research question provided in the introduction.

Some data that turned out to be irrelevant was left out of the transcriptions, leaving just the data that was directly related to answer the question skipping formalities. The interviews were hold during a period of one month between May and June of 2018, with some interviewees left out because they took to long to answer the email, or their schedules were out of the range of the data collection period.

3.4 Analysis of data

The qualitative data obtained via the interviews will be analysed by coding the transcripts under the Gioia parameters. The coding was applied two times, one to analyse the constructions behind the elite university perspective, and then doing the same with the public university interviewees (Gioia, 2012). The first coding cycle was made in an open way, to later one move forward to an axial coding cycle, finalizing by settling the groups of aggregate dimensions (Blumberg, 2011).

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P a g e 20 | 43 The process was made in a manual way, transcribing the interviews manually on hand writing and using colour codes over the words, this with the intention to distinguish and group the ideas. The technique improved the visualization and ease the process of abstraction of ideas. The selection of the of a structural coding was applied to figure possible answers for the research questions.

Table 2

2nd Order Themes 1st Coding Highlights

Early decision • “for students aiming to start our entrepreneurship program, starting their first try-outs ventures since high school may assure them the entrepreneurial scholarship of 70% of the tuition fee, is like preparing a portfolio for art school, you must start on time”

• “many of our students come from families of business founders and business owners for them, the decision of becoming entrepreneurs comes early and is completely acceptable, they are aware of the benefits and the challenges”

• “if they access to an elite institution the pressure is to comply with the tuition fees, but the environment is set to decide to enterprise, but on the other hand is they access public university, they may have to create their own environment under the intention of enterprising”

Prestige and privilege • “entrepreneurs studying with us belong to the 5% of the Mexican population that can afford education of this prices, it may seem unfair, but this detail makes that only students form the richest families in Mexico can attend. Either they are very rich or super smart”

• “many of our students come from families of business founders and business owners for them, the decision of becoming entrepreneurs comes early and is completely acceptable, they are aware of the benefits and the challenges”

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P a g e 21 | 43 • “there were investors that consider your school of precedence

as a starter, they want to know where you came from, I did not have any money, but they knew that I was committed to a scholarship that I kept for 4 years, that shows endurance” Environmental

Factors

• “there is a lot of the entrepreneur that is not dictated by its teachers, the creation of a mini entrepreneurial ecosystem inside of the school is vital. We are on our first steps to recreate ecosystems such as the one in Boston”

• “I had no real examples to follow, I mean public university academically formed me, but I found business entrepreneurs or people with parent who were entrepreneurs until a started frequenting the circle of the elite universities. There I felt inspired to start my venture, I saw the possibility”

• “To surround the entrepreneur with stimulus, role models, competition, or with entrepreneurial classmates, everything that can inspire their necessity for venturing is useful. That is something that I think the ITESO has mastered”

Entrepreneurial attitude

• “Entrepreneurs from public university seem to be a bit more reluctant to believe on their projects, the idea is that even with doubts you talk about your project as it is the best. Guess this kind of optimism comes after you had failed a venture, after that you know that failing is not the end of the world.”

• “the attitude is only and advantage if they go campaigned with the entrepreneurial methodology, the main purpose of the entrepreneurship program is to make the match, between confidence and knowledge to create a winner team”.

• “Many of the students arrive already feeling comfortable with the idea of venturing, they do believe they can do new venturing and our idea is to keep it that way and make it contagious to other students”

Engaging perception • “Often students start their final venture with us, during their bachelor, by making use of our facilities and laboratories, even we have some cases that students leave one or two

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P a g e 22 | 43 courses for an extra semester, in this way they can still use the advisory programs and access the investors board without extra cost”

• “The students that graduate already with a venture developed inside of the ITESM are asked if they want to engage in a program of shared benefits, the university will continue to give us advisory, they will send interns, include us on their marketing and connect us with investors”.

• “most of our students are not able to start a venture during their studies, is hard enough to balance part time jobs and school, to add the start of a venture”

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P a g e 23 | 43 4 Results

This part of the thesis shows the main elements found during the research period. The section aims to show the main findings after the observance of the interviews. There is no categorization made between the results obtained from individuals of elite, public and mixed university backgrounds. Because there will not be a comparation between both university systems, but an understanding of how the existence of the dynamic may affect the entrepreneurial intention. Those main findings are going to become the main arguments for the discussion and conclusion that will take place in the sixth section of the document.

4.0.1 Main findings

Results Observations

Early decision

Aspiring entrepreneurs, choosing for entrepreneurship as an undergraduate program, only have the elite education as an option. The selection of the program requires the capacity to either pay the tuition fee or the ability to make the case for a scholarship. The possibility increases with the early decision to become and entrepreneur, given that elite universities provide scholarships to students that show to have entrepreneurial projects that may succeed. The early decision to engage in entrepreneurship is settled on the years just right before university and on the two years after starting an undergraduate program.

Prestige and privilege

Aspiring entrepreneurs seek for legitimacy and resources for their ventures. Elite university in contrast with public university gathers the richest groups of population in the country. This in several cases enables funding and recognition for their ventures. Influencing the shape and possibilities of their ventures.

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P a g e 24 | 43 Aspiring entrepreneurs may increase their intention because of environmental factors provided by their schools. In this case the elite university showed to have a developed environment to increase the motivation of its entrepreneurs, such as imitation, observation and immersion.

Entrepreneurial

attitude Aspiring entrepreneurs of elite universities showed to have a

different conception of their capabilities, contrasting with their public counterparts. An increase perception capacity and reach make them more propense to engage on entrepreneurial behaviour sooner than their public counterparts.

Engaging perception

Aspiring entrepreneurs may not always engage on entrepreneurial behaviour. But there is a higher perception of adoption among the students that engaged directly in to the undergraduate programs of entrepreneurship, at least during the first 5 years after the graduation.

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P a g e 25 | 43 4.1 Early decision

The observation of the data shows that entrepreneurial education holds a relation with the early decision of pursuing an undergraduate entrepreneurship program. The existent programs on elite universities show to motivate this desision since before engaging in university studies. Described this way by the academic Adolfo Moreno of the ITSEM (table 1) “for students aiming to start our entrepreneurship program, starting their first try-outs ventures since high school may assure them the entrepreneurial scholarship of 70% of the tuition fee, is like preparing a portfolio for art school, you must start on time”. The way this programs and scholarships are shaped play seem to increase the level of commitment or the inclination to start a venture, by awarding entrepreneurial behaviour.

Elite university by this strategy pretends to diversify its student composition, attracting students that because of their resources may usually attend public university. Ensuring the level of commitment to innovation and venturing of the benefited student that started the program already running a small enterprise. Claudia Baidon (table 1) considers that to be able to join students of low resources but high entrepreneurial intention with peers that have more financial capabilities, moves the teams faster develop profitable ventures.

In the case of students that do not require scholarships or financial aid, the early decision to incorporate to a program on entrepreneurship is based on their previous exposure to enterprise. “many of our students come from families of business founders and business owners for them, the decision of becoming entrepreneurs comes early and is completely acceptable, they are aware of the benefits and the challenges” -Fernanda Canale UP- (table 1). She argues that the availability of a program of entrepreneurial nature will speed up the whole process for students with strong intentions of becoming entrepreneurs.

The whole process of the dynamic between elite and public university on entrepreneurship seem to play a role on testing the level of commitment. “if they access to an elite institution the pressure is to comply with the tuition fees, but the environment is set to decide to enterprise, but on the other hand is they access public university, they may have to create their own environment under the intention of enterprising” Quiñones academic UDG- (table 1). According to him the entrepreneur of public education is self-made, and must commit

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P a g e 26 | 43 on a higher level to himself, still regrets that the public university does little for the practicalities that may surround the choice of venturing. Arguing that sometimes times and bureaucracy when getting support for an entrepreneurial project can lower down the intentions of engagement.

To close this section seems that the offer and accessibility of two very different kinds of universities regarding undergraduate entrepreneurship, holds a strong relationship with the decision to engage into entrepreneurial practices on an early age. The entrepreneurs that seek an elite university program may be motivated to engage earlier than their public counterparts, because deciding to engage can be a conditional to incorporate to an entrepreneurial program.

4.2 Prestige and privilege

The data analysis shows that the election of public or elite university holds an important relationship with the perceptions of prestige and privilege for an entrepreneurial career. The role of those seem to play an important part even after conclusion of the undergraduate studies. In that way again, the perceptions are inclined to the elite university. Aspiring entrepreneurs depending on their inclinations shall consider the impact that those social constructions may play on their careers, by visualizing how it shapes their current environment.

The first perception seems to be the economical one, “entrepreneurs studying with us belong to the 5% of the Mexican population that can afford education of this prices, it may seem unfair, but this detail makes that only students form the richest families in Mexico can attend. Either they are very rich or super smart” Guadalupe Torres, academic at UP (table 1). This implies that the attendance either under financial or academical means, implies a higher level of merit for the aspiring entrepreneur.

This perception of prestige and privileged showed to have relevance on the construction of reputation and further support from new networks. Working on favour and against the entrepreneurs depending of the network the move on. “it might be harder for an entrepreneur from an elite institution to get a government loan, but they might do better with private investors or venture capitalists” Carlos Calderon speaker ITESM (table 1). Sustaining this argument with the by saying that the times he has been judge on scholarship for entrepreneurial projects, the elite university entrepreneurs show better commitment on projects, because they

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P a g e 27 | 43 are more visible. Adding that, more is expected from them in a smaller community, so failure is an event that drags their prestige.

On a social scale the aspiring entrepreneurs seem to acquire legitimacy from the social construction of prestige and privilege, “there were investors that consider your school of precedence as a starter, they want to know where you came from, I did not have any money, but they knew that I was committed to a scholarship that I kept for 4 years, that shows endurance” Brando Angulo speaker UP (table1). This aligned with more data shows that openness to engage with an entrepreneur can show variations depending on their precedence, making the university of origin a fact to consider.

To close this section, aspiring entrepreneurs seek to build a reputation that is related to prestige, more than to privilege, but it seems that both of them go together. The selection of elite or private university affect how the entrepreneur may be perceived on the early years after graduating. Making an implicit declaration of what is expected and how much failure is allowed without critique.

4.3 Environmental factors

It is visible in the data analysis how both styles of universities play as environmental factors for entrepreneurship. In fact, in this whole case most of the space between entrepreneurial intention and entrepreneurial behaviour is oriented by the environment. The data collection suggests that the handling of the environmental factors inside the university plays a vital role to create entrepreneurs.

As Jacob Duran from the Laboratory for new ventures form UDG said “there is a lot of the entrepreneur that is not dictated by its teachers, the creation of a mini entrepreneurial ecosystem inside of the school is vital. We are on our first steps to recreate ecosystems such as the one in Boston”. It is remarkable during the data collection that all the interviewees mentioned a similar experience towards the entrepreneurial ecosystem of the universities of Boston. But from the group, the pioneer of this practice was the Monterrey Technological Institute, which started with those interactions 20 years ago.

According to the data collected, entrepreneurs are influenced by the immediate environment, they may measure the reach of their accomplishments in relationship with others. Hence if there is not much to look up to, the process of becoming and entrepreneur goes slower.

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P a g e 28 | 43 Which is the case with Brando Angulo, entrepreneur originally from a public university, and now studying business with a scholarship in an elite university, “I had no real examples to follow, I mean public university academically formed me, but I found business entrepreneurs or people with parent who were entrepreneurs until a started frequenting the circle of the elite universities. There I felt inspired to start my venture, I saw the possibility”.

The prerogative of what composes a good environment to encourage entrepreneurship is continuously divided between the interviewees, but the one that was more commonly mentioned was the human factor. The accessibility and exposure to active entrepreneurs, mentoring and role models.All the interviewees of the elite universities mentioned that it was a must for the teachers of the courses in entrepreneurship to be practitioners, business owners or directors of companies. “To surround the entrepreneur with stimulus, role models, competition, or with entrepreneurial classmates, everything that can inspire their necessity for venturing is useful. That is something that I think the ITESO has mastered” Pilar Lopez academic of ITESO.

To conclude, aspiring entrepreneurs need to find themselves in company of similar peers as well as role models. Entrepreneurial environments must be designed with the purpose that entrepreneurship turns in to something reachable and relatable. The elite universities seem to have mastered this self-projection of the entrepreneur in the environment. Where entrepreneurs can interact, ask for advice or get inspire by other people’s ventures.

4.4 Entrepreneurial attitude

The data analyses reflect how aspiring entrepreneurs show to have different attitudes regarding their possibilities of success and their inclination to venture. The optimism and less risk aversion seem to be a common denominator on the elite university entrepreneurs. While same attitudes tend to show less on the public university entrepreneurs, who try to keep a lower profile in that manner.

For that Yousef Kanchi, Speaker and entrepreneur of the Panamerican University considers “Entrepreneurs from public university seem to be a bit more reluctant to believe on their projects, the idea is that even with doubts you talk about your project as it is the best. Guess this kind of optimism comes after you had failed a venture, after that you know that failing is not the end of the world.” Most of the interviewees agreed on similarity of this,

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P a g e 29 | 43 making a strong link with the lack of previous exposure to entrepreneurship, either personal of via a close relative or friend.

Aspiring entrepreneurs may have certain degree of attitude by birth, but according to the Claudia Baidon, academic from ITESO “the attitude is only and advantage if they go campaigned with the entrepreneurial methodology, the main purpose of the entrepreneurship program is to make the match, between confidence and knowledge to create a winner team”. In the case of elite universities, they try to nurture this entrepreneurial attitude with team up and university identity events. Most of the will bombard their entrepreneurship students with the support of the institutions reputation, this with the purpose of inactivate confidence and feeling of community. They have the advantage to work with small groups, as on the interviews they do not make groups larger than 25 students, this to strengthen self-confidence and relations between their students.

On the observation of the data is acknowledgeable how the entrepreneurial attitudes are more present on students of elite universities before engaging on the entrepreneurship undergraduate program. “Many of the students arrive already feeling comfortable with the idea of venturing, they do believe they can do new venturing and our idea is to keep it that way and make it contagious to other students” -Fernanda Canale-, academic UP (table 1) In this case they may also proceed from private high schools, that already gave them a business and new venture set of mind, setting the entrepreneurial intention as something that has been nurtured since childhood.

To conclude, aspiring entrepreneurs, may or may not have entrepreneurial attitudes fully developed. Entrepreneurial attitudes can reflect many things in the past of an aspiring entrepreneur and they can be encouraged and increased. Still the reflection of those attitudes seems to be more prevalent on the private university entrepreneurs, especially when it comes to confidence and risk aversion.

4.5 Engaging perception

The data obtained for this is section based on the perception of the interviewees on the engaging with entrepreneurship as a final career. After the observance of the data, most of the interviewees considered that the engaging process that turned more successful started when the students were still on the undergraduate program. “Often students start their final venture with

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P a g e 30 | 43 us, during their bachelor, by making use of our facilities and laboratories, even we have some cases that students leave one or two courses for an extra semester, in this way they can still use the advisory programs and access the investors board without extra cost” Guadalupe Torres, academic UP (table 1).

On the case of the elite universities, most of them agreed that because of the nature of the program, every student that registers must declare that they want to start a venture. But because the intensive requirements around 65-70% will finally engage and keep the venture for at least 5 years. This is all traced by the alumni programs of each of the elite universities interviewed as described by Carlos Calderon, Speaker ITESM “The students that graduate already with a venture developed inside of the ITESM are asked if they want to engage in a program of shared benefits, the university will continue to give us advisory, they will send interns, include us on their marketing and connect us with investors”.

According to the data the elite universities are constantly monitoring the ventures created on their classrooms, holding meeting with alumni, and including them on their networking events. The mentioning on their entrepreneurial accomplishment can be also observed on their webpages.

The practice of ‘following’ is currently in adoption by public universities, still according to the perception of the interviewees the adoption of entrepreneurial practices is low, and in most cases delayed “most of our students are not able to start a venture during their studies, is hard enough to balance part time jobs and school, to add the start of a venture” Quinones, Academic UdG (table 1). For the perception expressed it is possible that the public university can engage 30-35% of their students on the economics and administration. The number is not accurate because there is not a clear perception of the number of students starting a venture.

Concluding this section, in the data it is visible how the outcome of entrepreneurial education to turn into entrepreneurial adoption is an important topic of observance for both types of schools. Also, how follow up programs that include benefits for both university and entrepreneur, seem to be a motivator to choose between public and elite university. Aspiring entrepreneurs may see this circular process when choosing to start an undergraduate program of entrepreneurship.

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P a g e 31 | 43 5 Discussion and conclusion

5.1 Discussion

The main goal of this study is to make an empirical observation on how an educational system that allows the coexistence of public and elite universities, influences the processes of individuals to become entrepreneurs. For this process it was necessary to determine common factors that the interviewees considered to play a role on educating entrepreneurs, and how those factors formed part in both, elite and public university. First, this section will discuss the five main findings, linking them to authors from the literature review. Secondly, the conclusion will be shaped, expressing the main ideas obtained after the discussion process. Thirdly, the conclusion will be followed with theoretical implications, adding also authors from the literature review. Ending with practical implications and suggestions for future research. 5.1.1 Early decision

As answer to the question surrounding the reasonsof entrepreneurs choosing the paths of public or elite education felt mostly into financial reasons. But during the discussion of the question a more holistic approach was reached, basically arguing that the student that wanted to be able to choose or access education on entrepreneurship needed to make an early decision.

The early decision seems to be a lot like the second step between the entrepreneurial intention and the entrepreneurial behaviour describe by Krueger (1994). This factor seems to play a significant role and moves to approach students to entrepreneurial environment before selecting for a career. If they believe that enterprising is possible, there is an observed chance of them considering for and elite education as a possibility if they start on time.

As observed in the data several the interviewees describe students that choose to engage in an entrepreneurship undergraduate program since early years. Portraying that to pursuit an undergraduate program on entrepreneurship, only offered in elite universities, puts in consideration a series of processes for the aspiring entrepreneur such as; starting their ventures earlier, make a further exploration of an entrepreneurship programs, and hence, make a further exploration of what it means studying in an elite university means.

This early election of career plays an important role on student selection by real entrepreneurial capacity. Like the process of career election of Lent (1994), where the election of career is made by a series of suppositions of self-capacities. The admission and scholarship award may play a role around the idea that there is merit on traversing those two impasses.

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P a g e 32 | 43 The early decision factor nevertheless seems to be set partially on ideas of predisposition to entrepreneurship by nature (Robinson, 1991), by surging without the need of an extensive nurture process. Instead giving the origin of the decision to exogenous factors.

There was also an observable perpetuation of family business doing spinoffs. Basically, several students of elite universities belong to what can be called as dynasty families that seek to perpetuate wealth on the family line. This kept strong similarities with the studies held by Bourdieu in (1986), where the reproduction of situations on societies is perpetuated by the high economic class. On this manner the early decisions of many of those entrepreneurs or intrapreneurs was taken was heavily influenced by preserving family wealthiest and success on the family. This difference made that the factors of early decision on to entrepreneurship were strongly differentiated between the public and the elite entrepreneurs.

5.1.2 Prestige and privilege

During the observation of the data, this became a focal point on the development of the interviews. This preconception plays an important role on the process of building entrepreneurs, affecting how the elite and public entrepreneurial ecosystems relate to each other. As observed, both sides of the dynamic seem to live parallel realities, by having little to do with each other and in some cases declaring somehow antagonism. Holding from the debate presented by Geiger (1988) on what constitute the “more, better and different” of the elite universities.

In fact, the dynamic does break the precept of universality of university as described by Jimenez (2014), in this case separating the entrepreneurs by academical and financial capacity. This setting apart of create the perception that those entrepreneurs on the elite university had more odds on their favour, contrasting them with the public university entrepreneurs.

The social construction of prestige seems to be compatible with entrepreneurs during the process of legitimacy building. Like the descriptions of Elfring (2003) elite universities seem to play on the same field of an entrepreneur, hence they are willing to play together to give reputation to each other. Hence perpetuating the social construction of prestige and privilege. For aspiring entrepreneurs, it turns in to a manoeuvre move, how much they want to associate themselves or not with the perception of prestige and privilege provided by elite universities.

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P a g e 33 | 43 5.1.3 Environmental factors

Both universities play a distinctive role on generating environment. This series of exogenous factors become decisive when it comes to inspire entrepreneurial behaviour. The relevance that the interviewees gave to those seem to contradict a bit with the model of Ajzen (1987), that yes enlists the environmental factors as relevant, but discards the role model as highly influential. The observance was that elite universities base a lot of their teaching on entrepreneurship as contacting with role models.

This is done in such a way that when elite universities seek to bring as many entrepreneurs as possible under the scholarships programs, this with the intention of mixing them with their regular tuition fee students to inspire entrepreneurial behaviour. This finding is like the one of Sorensen and Nanda (2010), when interaction with entrepreneurial peers at work makes people more likeable to engage in entrepreneurship, just in this case is in and ungraduated program.

Still this capturing of the most resourceful or capable aspiring entrepreneurs leaves the public university with little to offer to aspiring entrepreneurs regarding entrepreneurial environment contracted by imitation. As constructed by Bourdieu (1986), the capturing of economic, social and cultural factors, of the elite universities disbalances the exposure of entrepreneurs in both sides. But nevertheless, it is important to remember that there are more environmental factors to be considered and that entrepreneurship is not strictly attached to high resources, or the necessity of immediate high revenues as described by Astebro (2014).

5.1.4 Entrepreneurial attitude

Following with Astebro (2014) certain behavioural treats on aspiring entrepreneurs on public and elite universities showed to have variations, in content and in origin. Although they were valid and replicable, they were not able to show the full spectrum in the study case analysed. Characteristics like low risk aversion on entrepreneurs of elite universities seemed to relate a lot with financial security back at home, unlike their public university counterparts. Also, there will be several inconsistencies when it came to non-pecuniary benefits, because while this characteristic showed to be part of the public university entrepreneur, it was not

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P a g e 34 | 43 present on the elite university entrepreneur, on whom generating revenues was mentioned as a primary drive.

The data of the thesis made more justice with the observation of Lent (1994), students of entrepreneurship from both sides showed to be aware of their situation, to have self-confidence rather than overself-confidence and a strong sense of self efficacy. Showing that maybe as aspiring entrepreneurs, the case study reflects a more conservative way of entrepreneurial drive, proper of cultural factors, which is not entirely similar to studies like the one from Astebro (2014) sustained over a different demographics.

This could be centred of attitudes towards entrepreneurship and can be compared to the study of Bossin (2009), just instead of comparing entrepreneurial attitudes among countries, there are observable points of comparation between attitudes of elite and public universities. The elite universities seem to promote more an “university spirit”, a strong sense of community that acts as a support system for the attitudes of their entrepreneurs, making the entrepreneurial activity, something individualistic that gets moral support or validation from a whole background community. Somehow for what it was projected, the entrepreneurial attituded gets the in addition the name of the elite institution of precedence, turning the, in to “entrepreneurs of elite university”.

5.1.5 Engaging perception

The adoption of entrepreneurial behaviour seemed to increase in the universities that offer entrepreneurship as an undergraduate program. According to the perceptions of the interviewees the adoption of entrepreneurial practices is high, somewhere around 70% to 75%, but there was an unclear distribution of new business creation, spinoffs of family companies and intrapreneruship. It is at this point where some biases around the public-elite universities start emerging.

Public universities do not keep a detailed record of their venturing engaging, in fact they keep little contact with alumni, giving to the size of their classes, still some interviewees expressed something around 20 to 25%. This contrasts with the elite universities, which belong to a much smaller and exclusive community, that keeps strong contact with their graduates, specially with entrepreneurs that can turn in to possible partners.

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P a g e 35 | 43 The engaging perception at this stage played an important role on completing the circle of recruitment for elite universities. They do require having this show of success cases to attract future aspiring entrepreneurs to find a place on their classrooms. This perpetuates the idea that possibly, entrepreneurship is an activity reserved for the members of the financial or academical elite, like the sociology of education the upper class, described by Zanten (2014). In both cases, the engaging was considered five years from starting the venture, either during or right after studies.

5.2 Conclusion

The five characteristics discussed above; early decision, prestige and privilege, environmental factors, entrepreneurial attitude and perception of adoption, may group the processes influenced by the dynamic public-elite when it comes to entrepreneurial education. From those discussions it is possible to get to the final assumptions.

First, that the early decision to aspire or to become an entrepreneur plays a key role when selecting or accessing for public or elite universities. This process seems to declare the full intention and entrepreneurial drive of the induvial, by what was shown on this case of study the election to a direct entrepreneurship program on an elite university. Second, the idea of construction of the prestige and privilege goes beyond the meaning of just academic education. Aspiring entrepreneurs seem be inclined towards it, to get already in to an exclusive circle that may bring positive results to their future ventures. Third, environmental factors seem to play a key role on the construction of an entrepreneurial identity in the case of universities. Hence highly differentiated university environments will develop entrepreneurs on different ways, even if those differences are intangible and socially constructed. Fourth, the entrepreneurial attitudes are reinforced on different ways in both sides of the dynamic, delivering entrepreneurs that engage faster in the case of elite university, to a slower pace of engagement in the case of public. Fifth, the perception of engagement is likely to play a circular role when adding to the reputation of the universities that know how to take advantage of it. As larger as more promoted this perception will affect the early decision process of aspiring entrepreneurs, as well as ensure the long engagement of entrepreneurs already working on their ventures.

For what was observed in this study, the existence of an educational system that allows such dynamic of elite and public universities may have influence in the way entrepreneurship

Public and elite universities on entrepreneurial education : a case study on the City of Guadalajara Jalisco, Mexico