Universities and the User Community:marriage or mismatch?

Abstract

This thesis seeks to evaluate the relationship between universities and Small and Medium Sized Enterprises (SMEs) in the area training and upskilling. In particular, it proposes a research framework which facilitates the study of university-SME collaboration. The role of the university has been a contentious issue with opposing views on its ‘proper’ role. Contrary to some traditions links with the local community and local business has been a part of university activity since the turn of the century. However, during the twentieth century and more recently since the 1980s universities have been encouraged by government to take an increasingly overt economic role. The latest government policies on the economy illustrate the importance that government has placed on universities in providing amongst other activities the provision of training for the nations workforce. Considering that SMEs account for 99.9% of all firms in the UK the implication is that universities will be important players in providing training for SMEs. Therefore, how successful has the link been between universities and SMEs? To enable the study of this relationship a research framework has been devised. This has involved showing how previous attempts at university-SME links have illustrated a gap between policy objectives and the reality on the ground. The aim is to see whether a similar 'gap' exists now. This is achieved by defining the SME relevant university offer package of five West Midlands universities and interviewing university staff members, Business Services Providers and managers of SMEs. The data obtained from this research have identified factors which illustrate why marriage or mismatch is likely to occur. The thesis concludes that both marriage and mismatch describes the current situation. It has been shown that universities can successfully provide training for SMEs on a small scale. This however varies between institutions and appears to reflect the inter-relationship between the following factors: ‘Strategic Positioning of the University’; ‘Market Penetration’; 'Costs - Financial and Time’ and ‘Funding Regimes’. Overall it is concluded however that universities have problems in fulfilling the role of training provider for SMEs. This seems to illustrate the gap between government policy on linking universities with SMEs and the reality where there is a general mismatch between what universities appear to be able to provide and what SMEs demand. This indicates the paradoxical nature of the market and illustrates some form of market failure.