Universities need to boost entrepreneurship education

Opinion: New Zealand’s universities are failing to prepare students for the entrepreneurial realities of the modern economy. That is a key finding of the Science System Advisory Group report released this month as part of the Government’s major science sector overhaul.

The report highlights major gaps in entrepreneurship and industry-focused training. PhD programmes remain too academically focused, despite most graduates working in industry, startups, or government. Entrepreneurship is also poorly integrated into STEM degrees, leaving students ill-equipped to innovate or commercialise research.

The 2023 Global University Entrepreneurship Spirit Student Survey (GUESSS) reinforces these concerns. Among 1300 universities worldwide, only 20 percent of University of Auckland students had taken an entrepreneurship-related course, well below the global average of 41 percent. Entrepreneurial aspirations are also lower, with New Zealand students less likely than their international peers to consider starting a business immediately after graduation.

If New Zealand wants a knowledge-based economy, universities must take a fundamentally different approach to entrepreneurship education, starting earlier and integrating it across disciplines.

PhD training needs a reality check

New Zealand’s PhD programmes are structured around the assumption that graduates will pursue academic careers. The reality is different – only a small fraction secure permanent academic positions, while most work in industry or startups. Yet PhD training still emphasises publication over commercial application.

The Science System Advisory Group (SSAG) report calls for expanding industrial PhD programs, where students work on real-world challenges in collaboration with businesses or public sector organisations. This model is widely used internationally, giving students firsthand industry experience while advancing applied research.

Industrial PhDs benefit both universities and businesses. Researchers gain industry exposure, while companies access cutting-edge research tailored to their needs. Countries have embraced this model hoping for faster research commercialisation, higher startup rates, and stronger university-industry connections.

Entrepreneurship education must start earlier

The GUESSS survey shows entrepreneurial aspirations among New Zealand students lag behind global trends. A major reason is that entrepreneurship is treated as an afterthought in university education rather than a core skill.

Many innovation-driven countries introduce entrepreneurial thinking in secondary, and even primary school, exposing them to problem-solving, innovation, and business-building skills early on. These interventions shift mindsets, making entrepreneurship a desirable career path.

By university, students should already be familiar with the basics, so they can continue to build on them. At the tertiary level, entrepreneurship should be embedded across all disciplines, not just offered as an elective or confined to business schools.

Waterloo offers a model—but ecosystem matters

The University of Waterloo in Canada, referenced in the SSAG report, provides a strong model for broad-based entrepreneurial training driving economic impact.

Waterloo integrates entrepreneurship into STEM programs, combines a researcher-owned IP model with Canada’s largest co-operative education programs, and has built a thriving innovation ecosystem.

Waterloo’s co-op education model is particularly significant. By giving students real-world industry experience early in their degrees, Waterloo creates a direct pipeline between academia and the private sector.

Many students launch startups straight out of university, armed with industry knowledge, business connections, and commercialisation experience. Those who continue into postgraduate study challenge professors with real-world problems, enhancing research relevance.

New Zealand lacks a comparable system. Expanding co-op education programmes across universities should be part of any strategy to foster research-driven entrepreneurship.

Universities must lead, but policy support is needed

Universities cannot make these changes alone. The Government must support industrial PhD programmes, incentivise industry partnerships, and fund co-operative and entrepreneurship education across disciplines.

The GUESSS survey makes it clear – New Zealand students do not see entrepreneurship as a viable career path at the same rate as their global peers. This is not due to a lack of talent or ambition but rather structural barriers in the education system. We are failing to equip students with the confidence, skills, and mindset to pursue entrepreneurship.

New Zealand has the talent and research capability. What’s missing is a system that enables students and researchers to turn ideas into impact. Without urgent action, the country risks continuing to export great ideas from our best only to see them commercialised elsewhere.