In a new report, the FSB argues that universities have a significant role to play in supporting their local enterprise ecosystem.
The lobbying group has long believed that supporting entrepreneurship among young people must be embedded at all levels of education.
The FSB’s latest policy paper on small businesses and university engagement highlights a range of other areas where business and universities can collaborate, including research and development (R&D), procurement and fostering spin-outs.
However, many of these opportunities are not currently being harnessed to their full potential, says the organisation. Fundamentally, awareness on both sides is a barrier, with a lack of knowledge or understanding on how to collaborate and the benefits it can bring.
This is especially the case for small firms, many of which do not
engage with universities and may be missing opportunities as a result.
FSB national chairman Mike Cherry says that both small businesses and universities can have a big impact on their local community.
‘In their local communities, universities procure goods and services, are hubs for innovation and R&D, and are magnets for attracting global talent. In turn, small firms play a crucial role in growing the economy, creating jobs and investing in the local community,’ he adds.
‘Our report makes a clear case for universities and businesses investing time and resources in this mutually beneficial relationship. Places where small businesses would normally go for information such as LEPs or Growth Hubs, could become touchpoints, informing businesses about the benefits of, and opportunities for, engagement.’
Encouraging strong links with local institutions
The FSB also wants small businesses to be proactive and encourages them to explore opportunities to engage and find new ways to make the most out of their relationship with their local university.
The report shows that many universities already engage with local businesses in the areas of graduate recruitment, work placements and mentoring.
While there is a still a lot more that can be done to widen engagement in these areas, there is also real scope to explore the possibilities of more commercial collaborations, where universities can play a deeper role in enterprise development from directly delivering business support to helping to finance new ventures.
Jo Johnson, Minister of State for Universities and Science says the UK’s world-class universities are the engines of our knowledge economy.
‘Recent research shows small firms collaborating with them are up to 38 per cent more likely to develop and introduce new innovations to market, supporting growth and jobs.
‘That’s why our new Higher Education White Paper sets out plans to make it easier for new and specialist universities to be established, meeting the demand for high quality education and research in new regions and industries.’
Anne Keim, chief executive of the Chartered Association of Business Schools (ABS) commends the FSB for undertaking this important research.
‘Business schools have an excellent track record at engaging with small businesses through consultancy, student work placements and start-up incubators. The Small Business Charter provides business schools with a mark of quality which helps small businesses identify universities with business schools that can help their business,’ she adds.
‘With world-class business expertise residing in business schools they represent an excellent gateway for small businesses to access universities.’
As is recommended in this report, ABS will be working with its members, LEPs and other key local players like the FSB to demonstrate the value to small businesses of engaging with a business school.