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Promoting Entrepreneurship Education: A Case Study of Palestine Employment for Education

(PEFE)

To be presented at the World Bank/CMI 5th International MENA Tertiary Education Conference under the title of “Paradigm Shifts in Tertiary Education: Improved Governance and Quality for Competitiveness

and Employability”

to be held from May 31 – June 1st, 2016, in Algiers, Algeria Dr. Adel ZAGHA Birzeit University

Palestine

6/2/16 Dr. Adel ZAGHA, Birzeit University, Palestine May 2016

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Acknowledgment

I thank the Director of PEFE, Mr. Saro Nakashian

who also used to be colleague at Birzeit University for many long years for the data he

provided me with for this case study.


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Talking Points

´ 1. Introduction ´ 2. Entrepreneurial Education as a Way Out of the

Mess ´ 3. Palestine Education for Employment (PEFE):

Vision, Programs, Achievements ´ 4. Assessment and Learning Lessons ´ 5. Concluding Remarks


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1. Introduction ´ The Palestinian labor market has small capacity to absorb

an ever-increasing labor supply. ´ In a fast growing country like Palestine, population growth

appears as a major component of the supply of labor and therefore is responsible for the disequilibrium of the labor market.

´ The Palestinian population of the West bank and Gaza Strip is likely to double in a matter of 35 years, from less than 4.8 million inhabitants in 2015 to more than 9.5 million in 2050 (Courbage et al. , forthcoming).


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Based on economic active population and participation rates in the labor force for 2050 reveal the following:

´ Active population is increasing in relative terms and will reach a high of 75% of total population in 2050.

´ New entrants to the labor market will increase by 60% within few decades. ´ While exits of the elderly from the labor market will not adequately

compensate for new accessions. ´ Which will leave an increasing balance of job seekers and way beyond the

capacity of the economy to create adequate and appropriate jobs for them. ´ Furthermore and interestingly by itself a higher female participation rate is

expected (from a low of 15% to around 35%) especially among the educated. This by itself would also call for a different set of policies to enable the economy create appropriate jobs for more service-oriented job seekers. 6/2/16 Dr. Adel ZAGHA, Birzeit University, Palestine May 2016

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Chart 1: Labor force accessions and exits, Palestine


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Source: Courbage et al, forthcoming.

So based on projection of Palestinian Labor Force:

´ A crucial message of the chart is that a big push of youngsters in the labor market will take place, which is not likely to be compensated for by exits of aged persons.

´  This flow of new entrants into the labor market together with: ´  (a) the very high unemployment rates of above 25% (about 20% in the West

Bank and around 35% in the Gaza Strip), and especially among the youth, ´  (b) not to mention the underemployment of about another 10% of the labor

force, and

´  (c) those discouraged persons who had given up searching for a job, depict a pessimistic picture of the future especially for the youngsters. Unemployment is rather acute for university graduates.


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Chart 2: Youth Unemployment rates by level of educational attainment and sex


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Source: SWTS-Palestine, 2013.

Education?

´ For many, higher education is therefore becoming irrelevant to the market needs and unemployment is becoming rather structural in character more than frictional.

´ This calls for a different set of policies to deal with this labor market disequilibrium.

´ Quick fixes would not do, and better information system despite being a necessity to reduce the duration of frictional unemployment would not be able to reduce the structural imbalance of the labor market in the longer term.

´ So what to do?


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2. Entrepreneurial Education as a Way Out of the Mess ´  Innovation can be potentially a driver for economic growth and therefore the creation of job

opportunities. It also can be an advantage for export industries that are critical for a small open economy, especially in developing countries, since attainment of economies of scale depends on a larger market size.

´  University-based innovation and entrepreneurship is blossoming, and it is becoming crucial that governments take affirmative actions to further nurture economic value creation and commercialization of innovations in conjunction with universities.

´  For example and over the last decade, American universities have been the largest sector to receive federal R&D grants –receiving nearly $36 billion from federal agencies in FY2009. Universities have received funding and assistance from a variety of federal agencies. In short, universities and the U.S. government are key partners in research, development, and innovation. Furthermore, leaders of universities and federal agencies share a common desire to increase collaboration and bring innovative ideas and research to the market to create real-world solutions and high-growth startups.


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Entrepreneurial University ´ Over the last two decades, the majority of job creation in the United States

has occurred in young, startup companies (Haltiwanger et al, August 2010).

´ In addition, innovation, and the real-world application of that innovation, is all around us. From breakthroughs in medicine and genetics to clean technologies, social media, or education technologies, innovation is becoming a more critical part of all of the products and services available today.

´ While the United States remains the global leader in innovation and entrepreneurship, there is constant competition from around the world to maintain that leadership.


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´ Five focus categories can be identified at the heart of the innovation and entrepreneurship activities within universities. These categories are:

´ Student entrepreneurship, ´ Faculty entrepreneurship, ´ Technology transfer, ´ Industry collaboration, and ´ Engagement in regional economic development.


12 Entrepreneurial University

Promoting student innovation and entrepreneurship ́ Examples of formal programs include:

´ Degrees and certificates in entrepreneurship, ´ while examples of extra-curricular activities include business plan

contests, entrepreneurship clubs, and startup internships. ´ Many universities are even experimenting with on-campus accelerators,

entrepreneurial dorms, and student venture funds. ´ At the very least, these activities provide critical organizational skills to

students, and at the very best, may create the next great university spinoff.


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Encouraging faculty innovation and entrepreneurship ́   Even at most entrepreneurial universities, many faculty and graduate students do not

always consider the market and societal relevance of their research.

´  To address this issue, universities are putting in place a series of policy changes to encourage more faculty entrepreneurship, which in turn will complement the student entrepreneurship.

´  These changes include:

´ Greater recognition of faculty entrepreneurs,

´ Integrating entrepreneurship into the faculty tenure and selection process, and

´  Increasing faculty connections to outside partners - through externships, engagement with business, and targeted resources for startup creation.

´  Finally, universities need actively to work with government agencies to address some of the regulatory challenges around faculty entrepreneurship, in particular, those related to conflict of interest and national security issues.


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Actively supporting the university technology transfer function ́  University Technology Transfer Offices (TTO) and Technology Licensing Offices (TLO) have traditionally been the hubs within universities where innovators and outside business leaders engage to commercialize inventions.

´  The recent burst of entrepreneurship on campuses has greatly expanded the role of the TTOs and TLOs. Instead of merely focusing on the commercialization of individual technologies, these offices now act as a central point where students, faculty, alumni, entrepreneurs, investors, and industry can connect with each other.

´  These offices are now focused on identifying and supporting entrepreneurship on campus, helping startups find the best opportunities and building successful business models, changing the culture of their universities, and creating companies that will be based in the communities around the university.

´  TTOs and TLOs have also expanded support beyond their traditional areas, such as energy and life sciences, into education, social innovation, and agriculture.


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Facilitating University-Industry Collaboration

´ Businesses and industry benefit greatly from university research and innovation. Universities are constantly looking for ways to connect their research and students’ education to emerging industry interests.

´  In recent years, universities have put greater emphasis on supporting startup companies, while continuing to engage established companies that have traditionally been their licensing partners.

´  To facilitate greater collaboration and innovation, universities are opening up their facilities, faculty, and students to businesses (small and large) in the hopes of creating greater economic value.

´ Universities are strategically partnering with companies, offering internships and externships, sharing facilities with startups, such as accelerators, and creating venture funds and incentive programs funded by industry, all of which drive increased innovation and product development by university students, faculty, and staff.


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Engaging with regional and local economic development efforts ´  Historically, local economic development has been an important mission of many nations’

large universities.

´  Universities are increasingly focusing on innovation and entrepreneurship as key contributors to the growth and success of local communities. Therefore, they request governments to include commercialization and innovation-driven economic development in their grant programs.

´  In addition, regional economic development planning now often starts with an assessment of a local university’s research strengths. In turn, universities are seeking partners to supplement their strengths and overcome their weaknesses through partnerships with community colleges, non-profit economic development agencies, governments, and entrepreneurship groups.

´  Some universities are asking their students and faculty to contribute to local community development through service and projects. While other universities, are building innovation-driven campuses that help surrounding cities and communities prosper.


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3. Palestine Education for Employment: Vision, Programs, Achievements

´ PEFE was established in 2009 as an affiliate of Education for Employment (EFE Global US), EFE Europe and five other NGO’s in Egypt, Jordan, Yemen, Tunisia and Morocco.

´ The PEFE network share a common vision of empowering unemployed university and technical college graduates with the skills and opportunities they need to build careers that ensure a brighter future for themselves and satisfy the employment needs of the organizations they are employed at.

´ It offers a variety of services to its employer partners by conducting need assessments for the skills and competencies that are needed of their new recruits, customizing its training programs, and providing employable candidates.


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PEFE ´  ♦ Helps employers recruit qualified and trained candidates for entry-level positions. ´  ♦ Conducts organizational need based training. ´  ♦ Gives easy access to PEFE graduates database.

´  ♦ Helps lower recruitment and training costs. ´  ♦ Gives access to PEFE’s Human Resource directors club.

´  Therefore, PEFE’s programs includes training, job training and placement, entrepreneurship, and internship.

´  In a little over four years, PEFE has made remarkable progress in advancing economic opportunity for over seven hundred youth.

´  PEFE strives to get sponsorships from private donors (including big businesses like Paltel, insurance companies and banks), as well as NGOs to help provide a job and a future for youth by recruiting, support training of trainers workshops, cover the training and job placement costs for new graduates to find a job, conduct an alumni event for community development, and engage PEFE in corporate social responsibility activities.


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The approach of PEFE comprises of the following: ́  It Invites business leaders to identify job skills in short supply ´ It jointly tailors training programs to meet employer needs ´ It obtains commitments from employers to hire unemployed graduates

who complete PEFE’s training programs. ´ It has a structured support plan that provides opportunities for ongoing

career development by facilitating access to on-site and online: ´ workshops, ´ symposiums, ´ networking events, and ´ engaging graduates in community service


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PEFE Program Offering ´  I. Workplace Success Training: A successful professional skills curriculum published by

McGrawHill, teaches participants how to get and keep a first job. In the highly interactive course, students are guided in overarching workplace principles such as work ethic, communication, self-confidence, and leadership as well as given detailed lessons on daily challenges like how to prepare a CV, interact with customers, work in teams, and manage time.

´  II. Business English Training: A comprehensive course in cooperation with AMIDEAST for fresh graduates learner who need to be able to understand and use business English. The Course offers a realistic, informative, and accessible approach to business concepts underpinned by thorough and carefully developed language syllabus. Participants enhance their English language skills in areas such as grammar, reading, vocabulary, writing, listening and speaking in a business related context.

´  III. Technical Training: Training that focuses on different specializations which include the following: 1. Construction Management 2. Electrical Installation Standards and Regulations 3. Hotel Management 4. Marketplace Simulation – Mini MBA 5. IT training (MYSQL, PHP) 6. Principles of Marketing 7. Customer Relations Management (CRM) 8. Accounting Software Systems 9. Sales Management


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´ IV. Finding a Job Is a Job (FJIJ): ManpowerGroup has provided EFE with access to their curriculum ”Finding a Job is a Job“, a core work-readiness course that focuses on the skills and discipline needed to conduct an effective job search. The program consists of direct training classes supplemented by take-home and independent exercises and activities.

´ V. Entrepreneurship Training: This training consists of in-class and hands on training in professional business writing, which leads to the trainees’ development of a complete investment plan for the proposed business. The curriculum used is the Intel Corp Technology & Entrepreneurship. The entrepreneurs will pitch for receiving equity financing from Rawabi foundation.


22 PEFE Program Offering


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184 209 330

1805

2512

1863

0

500

1000

1500

2000

2500

3000

2010 2011 2012 2013 2014 2015 Q4

Chart 3: Number of PEFE Youth Graduated by Year

PEFE Programs’ Graduates (Job Training & Placement, “Pathways”, and Entrepreneurship Training)

´ Since its establishments in 2009 to December 2015: ´ 6982 youth graduated from PEFE program ´ 98% of students enrolled in PEFE programs successfully completed all

program requirements and graduated. ´ 2314 youth have secured a job within 6 months after graduation as a

result of PEFE’s direct job training and placement program. ´ 1236 females have secured a job within 6 months after graduation as a

result of PEFE’s direct job training and placement program. ´ 73% of graduates of PEFE programs were placed in jobs within 6 months

of graduation. ´ 53% of female graduates of PEFE programs were placed in jobs within 6

months of graduation.


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29%

54%

17%

Chart 4: 2015 Q4 Graduates by Program Type

Pathway Grads

Job Training and Placement Grads Entrepreneurship Grads


26 ´ Program mix 2015: •  For programs ending in 2015 Q4, 54% of graduates were from

JT&P, 29% Pathway to a Job program, and 17% Entrepreneurship program.

´ % Female (cumulative): 62% •  62% of graduates from all PEFE programs from inception

through December 30, 2015 have been young women. ´ % Female 2015 Q4: 69% •  For programs ending in 2015 Q4 (from Jan 1 – December 30,

2015), 69% of graduates were young women.

´ Job retention rate (cumulative): 72% ´ 72% of graduates placed in jobs have retained their job for at least 3

months from inception through December 30, 2015. ´ Job retention rate 2015 Q4: 65% ´ For 2015 Q4 reporting period (Jan 1 – December 30), 65% of graduates

placed in jobs have retained their job for at least 3 months. ´ Continuously Working Graduates (cumulative): 79% ´ 79% of graduates consistently stayed in a job for at least 3 months from

inception through December 30, 2015.


27 Job Training and Placement Programs

Partners to PEFE ´ Since inception 781 and 231 in 2015 partnerships with employers were

created to support program delivery and job placements. ´ In 2015 Q4, 81 employer partners or 31% of the active employer partners for

this reporting period had partnered with PEFE in a previous year. ´ Since inception 34 and 17 in 2015 partnerships with educational institutions

were created to support program delivery and to incorporate relevant jobs skills training into local educational institutions.

´ Since inception 45 and 16 in 2015 partnerships with a wide range of institutions, including government ministries, community centers, corporations and others, were created to support program delivery.


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0% 20% 40% 60% 80%

100%

Continuously Wokring

Graduates (cumulative)

Reatined their Job for

3 Months (cumulative)

Retained their Job for 3 Months in

2015 Q4

Chart 5: 3 Months Job Retention Rate

4. Assessment and Learned Lessons ´  PEFE had done a lot to help many graduates from institutions of higher education to be

placed on a job or to better enhance one’s capacity for employability, as well as providing limited opportunities for entrepreneurial skills to help few start ups.

´  PEFE is exemplary in its vision and it can constitute a template for other endeavors in Palestine.

´  Partnership with the industry and institutions of higher education is crucial to this kind of education.

´  Despite all PEFE efforts it remains a water drop on a glowing stone due to the fact that the number of students at institutions of higher education is so huge (around 300K) and the limited job opportunities created annually to absorb an ever increasing labor force.

´  Therefore, the embedment of entrepreneurial and leadership education into programs’ curriculum and extracurricular activities remains to be the option for the future.


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Assessment and Learned Lessons (continued)

´ The demand (especially among females) for such education for employment and entrepreneurial skills is on the rise and the capacity of such institutions like the PEFE would always remain short of such demand.

´ On the other hand, these institutions would not be able to cover the wide range of entrepreneurial potentials that are mentioned above. Therefore, the institutional response to such increasing demand for such education must be fortified.

´ Here is what I think is an outline for such a response and this outline concludes this case study.


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5. Conclusions ´  A strategic framework to address the deficiencies in the Palestinian school education and

higher education must be formulated in a participatory approach that encompass all stakeholders.

´  This strategic framework should guide the changes required in the educational system in all its levels from kindergarten up to higher education. Without nurturing liberal thinking and freedom of expression as early as possible, the weltanschauung of the young generation would be disturbed because they would fall into the trap that all is predetermined fate and nothing can be done to change the misery.

´  Entrepreneurial skills must be embedded in education starting in parallel steps with the programs offered to students at the institutions of higher education as well as to teaching materials offered to children from kindergarten upward. In fact, this embedment of the entrepreneurial is the key to success because only natural development will survive once one’s talent was given its freedom to develop and flourish.


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Conclusions (continued) ´  Sam Gorgan who is Dean of Students at the University of Salford in the UK crystalized the lessons

learnt about “Embedding Leadership Skills into the Student Experience by co-creating curriculum with Industry: Lessons learned at the University of Salford”.

´  Learning must become doing-based, action-oriented, learner-centered (social constructivism rather than instructivism), experientially-based, and while embracing trial and error, it should be modelled on dynamic interaction and interplay.

´  For a curriculum design based on university-industry partnership model, programs must be designed in partnership with the industry starting from positions of real world need, while integrating the industry into assessment tasks, and making the world the classroom, i.e. divorcing the realm of the classroom as a separate space.

´  Interdisciplinary collaboration is essential

´  ‘Real-world’ is a brilliant tutor

´  Use / develop your contacts – it’s about partnerships

´  Practical examples, not theoretical exercises are the strongest lessons

´  Align leadership practice to the core curriculum – practiced by default, rather than as a separate exercise.


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