How Entrepreneur Training Programs can help Nations Grow Their Economies

The Effectiveness of the Current Entrepreneurship Training Programs in the Gulf Cooperation Council Educational Institutions
ABSTRACT
Today, the six member-states of the Gulf Cooperation Council (GCC), Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman, are all faced with the need to improve the effectiveness of their respective entrepreneurship training programs (ETPs) in order to help young practitioners create new businesses, diversify and grow their economies. This need is especially pronounced at present given the alarming estimates concerning the looming peak oil milestone and the harsh reality that even enormous fossil fuel reserves will eventually be exhausted. Furthermore, the international marketplace is changing in fundamental ways, and countries that are able to field a generational cohort of talented and trained entrepreneurs will invariable gain and sustain a competitive advantage over those that do not. Therefore, against this backdrop, studies such as this one can help identify opportunities for improving the provision of ETPs in the educational institutions of the GCC. In this regard, the study’s objectives are as follows: (1) to examine the effectiveness of ETPs’ content and curricular offerings, determine the typical duration of current programming; and evaluate the relative importance of ETP candidates’ input in terms of involvement and contribution in the higher learning institutions in the GCC; (2) to investigate the effectiveness of local ETP among young students that have the potential to become future entrepreneurs in higher learning institutions in GCC; and (3) to determine whether the current ETP programming conducted in GCC achieve their intended purposes of producing successful young entrepreneurs.
Keywords: Entrepreneurship training program, effective training, Performance, Learning institutions
INTRODUCTION
Statement of Problem
A growing number of higher educational institutions around the world have developed and implemented various entrepreneurship training programs that are intended to provide aspiring entrepreneurs with the background, knowledge, skills, abilities and opportunities they need in order to achieve professional success in the business world (Daniel and Kent, 2009). Nevertheless, the type and quality of these ETPs vary significantly, and there remains a paucity of timely and relevant research concerning optimal programming strategies and curricular offerings (Laud and Betts, 2015; Winkel & Vanevenhoven, 2013).
Study Objectives
The overarching objectives of this study were as follows:
1. Examine the effectiveness of entrepreneurship training programs (ETP) (ETP Content (Curriculum), ETP Period, ETP Trainers (Instructors – Individual mentor’s role), ETP’s Candidates’ Input (Involvement and Contribution)) in the higher learning institutions in the Gulf Countries Counciel (GCC).
1. Investigating the effectiveness of local ETP among young students that will potential entrepreneurs in higher learning institutions in GCC.
1. Determine whether the current ETP conducted in GCC achieve its intended purposes of producing succesful young entrepreneurs.
Significance of Study
Small businesses are the engine of economic growth, and the importance of their contributions to new job creation and job skills training cannot be overstated (Bauer, 2011). In this regard, Wu and Jung (2008) emphasize that, “Entrepreneurs are important to the economy of a country and the world. A significant portion of all new jobs [are] created by new organizations. Among numerous factors that lead to new organizational creation, an entrepreneurship education and training program is crucial” (p. 44). Just as importantly for the member-states of the GCC, ETPs can also facilitate the diversification and transition of national economies (Wu & Jung, 2008). Taken together, it is clear that ETPs represent a valuable resource for nations’ current and future economic development, and these issues are explored further in chapter two that follows below.
LITERATURE REVIEW
Introduction
The GCC is an economic alliance of six Middle Eastern countries (i.e., Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman) which was created in May 1981 in Riyadh, Saudi Arabia for the “purpose of achieving unity among its members based on their common objectives and their similar political and cultural identities, which are rooted in Islamic beliefs” (Gulf Cooperation Council 2018, p. 3). Today, one of the most important challenges confronting the member-states of the GCC is the need for private sector development. In response. Indeed, entrepreneurship training, new business creation and small business growth are widely regarded as essential for improved economic growth, reduced unemployment and increased quality of life (Winkel & Vanevenhoven, 2013).
Despite sharing similar political and cultural identities that are founded in Islamic beliefs, the member-states of the GCC, however, vary widely in terms of the populations, per capita GDP, respective sizes of their labor forces, and unemployment rates as depicted in Figures 1 through 5 below.
Figure 1. Respective populations of the GCC member-states
Figure 2. Respective per capital GDP of the GCC member-states
Figure 3. Respective sizes of labor forces of the GCC member-states
Figure 4. Respective unemployment rates of the GCC member-states
Source: CIA World Factbook, 2018
The effectiveness of ETP’s Content (Curriculum) in the higher learning institutions
As can be readily discerned from the respective statistics presented in Figures 1 through 4 above, the GCC member-states do not represent a homogeneous level of economic development, but are rather characterized by significant differences in their income levels, size of their labor forces, unemployment rates and, most especially, their populations with Saudi Arabia having a population in excess of all of the other GCC member-states combined. In this business environment, it is reasonable to suggest that there is no “one-size-fits-all” curricular content that is most effective for the provision of entrepreneurship training, and each member-state will most likely required a highly individualized approach. Notwithstanding the foregoing disparities, however, aspiring entrepreneurs in all GCC member-states share some commonalities, including the investment – and therefore the risk – of personal resources, as well as having the motivation to create and lead rather than accept and follow (Bauer, 2011).
The effectiveness of ETP’s Period in the higher learning institutions
By 2003, more than 2,220 ETPs had been implemented in higher educational institutions in countries around the world, and there have been numerous additions since that time (Winkel & Vanevenhove, 2013). There remains a profound lack of original research, however, concerning optimal legnths of ETP coursework. In many cases, ETPs have been introduced as “add-ons” to existing business curricular offerings while in others the coursework has been developed and delivered independent of other higher learning (Winkel & Vanevenhoven, 2013). Here again, though, there does not appear to be a universal approach that will be most effective for all GCC member-states, making the need to carefully evaluate the types of coursework that are needed and the readiness of the entrepreneurs student body to engage in it an essential first step to success.
The effectiveness of ETP’s Trainers (Instructors – Individual mentor’s role) in the higher learning institutions
Because many ETPs have been developed from scratch and have not benefited from the lessons learned from existing programming, there also remains a dearth of timely and releveant resaerch concerning the relative effectiveness of mentors in helping aspiring entrepreneurs complete ETPs coursework or the effects of such mentorship post-graduation (Taffy, 2015). Moreover, many instructors lack the specific background and training that are needed to provide the high-quality coursework needed by entrepreneurs in an increasingly globalized marketplace (Rennemo, 2015). Despite this lack of scholarship, the resaerch to date indicates that ETPs that include mentors are more effective at achieving their intended outcomes (Ekpe and Razak, 2016).
The effectiveness of ETP’s Candidates’ Input (Involvement and Contribution) in the higher learning institutions
As noted above, ETPs are frequently administered by higher educational institutions as stand-alone programs that target the unique needs of the student bodies in their local geographic areas; however, such independent ETPs generally fail to solicit input and/or feedback from prospective candidates or graduates of such programs to evaluate their effectiveness in achieving their intended objectives (Carlile, 2017; DiMaria, 2014)
METHODOLOGY
Research Approach
This study used a mixed methods research approach consisting of both qualitative and quantitative elements. The qualitative element consisted of structured interviews and the quantitative element was a survey of potential entrepreneur candidates for ETPs in the GCC. The survey instrument was pre-tested to establish its validity and reliability and the quantitative statistical data that emerged from the administration of the survey were analyzed using t-tests, factor analysis, and analysis of variance and correlations (ANOVA). Likewise, following coding and screening, the data that emerged from the completion of the structured interviews were analyzed using confirmatory factor analysis (CFA) and structural equation modeling (SEM).
Measures and Instrument
The measures used were the SEM analysis of moment structures (SEM-AMOS) which was applied to the research model to test the hypothesized relationships between factors as well as lower and higher factors. The SEM applies several statistical techniques to examine the relationship between continuous or separate predictor factors and continuous or separate principle factors. The method combines the analytical techniques of regression and CFA to remove all of the error variance in the factors.
Data Collection
This data collection proceeded in a step-wise fashion, beginning with the structured interviews, the results of which were used in part to develop the instrument used to test the hypothesis using the research model described below.

Hypothesis and Research Model
This study was guided by the following main hypotheses and corresponding null hypotheses:
H1o: there is no relationship between the ETP Content - Curriculum and the Effectiveness of entrepreneurship training programs (ETP) in the higher learning institutions in the Gulf Countries Counciel (GCC)
H2o: there is no relationship between the ETP Period and the Effectiveness of entrepreneurship training programs (ETP) in the higher learning institutions in the Gulf Countries Counciel (GCC)
H3o: there is no relationship between the ETP Trainers (Instructors – Individual mentor’s role) and the Effectiveness of entrepreneurship training programs (ETP) in the higher learning institutions in the Gulf Countries Counciel (GCC)
H4o: there is no relationship between the ETP’s Candidates’ Input (Involvement and Contribution) and the Effectiveness of entrepreneurship training programs (ETP) in the higher learning institutions in the Gulf Countries Counciel (GCC)
A graphic representation of the research model used in this study to test the foregoing hypotheses and null hypotheses is presented in Figure 5 below.



ETP Content - Curriculum
F1
ETP Period
F2
ETP Trainers (Instructors – Individual mentor’s role)
F3
ETP’s Candidates’ Input (Involvement and Contribution)
F4
Effectiveness of ETP
F5
E1
E2
E3
E4
E5



H1


H2



H3





H4





Figure 5. Research model
Population and Sample of the Study
The population used in this study consisted of current and prospective ETP candidates (n=663) at institutions of higher learning employed in the public (n=235) and private sectors (n-428) in the several GCC member-states.

FINDINGS AND ANALYSIS
Sample Demographics Analysis
As shown in Table 1 below, the respective numbers of ETP candidates in GCC member-states recruited and eventually interviewed and surveyed were 235 respondents and 428 respondents in the private and public sectors, respectively.
Table 1
Sample Demographics
Universities / GCC
Number
Respondents

Private
250
235

Government
450
428

Total
700
663



Reliability Statistics
The results of testing for the reliability of the measures described above are presented in Table 2 below.
Table 2
Reliability Statistics
Factors

# of Items
Cronbach’s Alpha (?)

ETP Content – Curriculum - F1
5
0.860

ETP Period - F2
5
0.782

ETP Trainers (Instructors – Individual mentor’s role) - F3
5
0.852

ETP’s Candidates’ Input (Involvement and Contribution) - F4
5
0.842



Descriptive Analyses
The descriptive analyses of the statistical data generated by the analytical software for the final 663 candidates are presented in Table 3 below.


Table 3
Descriptive Statistics for 20 Items from the Final 663 respondents
Factors
Items
Mean
SD
Skew
Kurtosis
Min
Max

1
1
2.40
0.84
0.65
-0.09
1.0
5.0


2
4.00
1.11
-0.70
-0.82
1.0
5.0


3
3.08
1.06
0.55
-0.78
1.0
5.0


4
2.90
0.87
0.30
-0.02
1.0
5.0


5
1.55
0.55
0.70
-0.07
1.0
3.45

2
6
2.11
0.31
1.50
0.49
1.0
5.0


7
2.30
1.20
0.82
0.08
1.0
5.0


8
1.55
0.85
1.70
2.45
1.0
5.0


9
1.50
0.85
1.80
2.45
1.0
4.0


10
3.00
1.30
0.30
-1.10
1.0
5.0

3
11
2.25
1.20
0.90
0.00
1.0
5.0


12
1.56
0.90
1.45
0.98
1.0
5.0


13
1.50
0.85
1.75
2.15
1.0
5.0


14
2.15
1.20
0.80
-0.45
1.0
5.0


15
3.10
1.15
-0.04
-0.77
1.0
5.0

4
16
2.50
1.25
0.50
-0.88
1.0
5.0


17
1.60
0.80
1.20
0.60
1.0
4.0


18
1.70
0.98
1.20
0.20
1.0
4.0


19
2.10
1.04
0.80
0.05
1.0
5.0


20
2.55
1.00
0.76
0.30
1.0
5.0




Factor Analysis
As also noted above, factor analysis was used for factor loadings for the extent of the respective ETP factors which are presented in Tables 4 and 5 below.


Table 4
Factor Loadings for the extent of ETP Factors
Factor
Item
Factor Loadings
Eigenvalue
% of Variance



1
2
3
4



Factors
6.695
37.653

ETP Content – Curriculum - F1
1
.888







2
908.







3
896.







4
909.







5
796.






ETP Period - F2
6

723.






7

823.






8

776.






9

726.






10

.744





ETP Trainers (Instructors – Individual mentor’s role) - F3
11


705.





12


761.





13


765.





14


.789





15


.897




ETP’s Candidates’ Input (Involvement and Contribution) - F4
16



860.




17



775.




18



778.




19



795.




20



879.






Table 5
Factor Loadings for the Effectiveness ETP in the GCC
Factor
Item
Factor Loadings
Eigenvalue
% of Variance



1
2
3
4



Effectiveness ETP in the GCC
2.327
14.252

ETP Content – Curriculum - F1
1
.785






2
793.






3
.875






4
.885






5
.787





ETP Period - F2
6

868.





7

.895





8

.799





9

886.





10

755.




ETP Trainers (Instructors – Individual mentor’s role) - F3
11


755.




12


710.




13


.795




14


.845




15


.863



ETP’s Candidates’ Input (Involvement and Contribution) - F4
16



894.



17



886.



18



755.



19



710.



20



.877



Five - Factor (CFA) Measurement Model

Finally, the CFA five-factor measurement model is depicted graphically in Figure 6 below, followed by CFA Pattern Matrix - Five Factor (CFA) Measurement Model in Table 6 Factor Correlations –Factor (CFA) Measurement Model in Table 7 and Factors Influence - Important Driving Forces for the Effectiveness ETP in the GCC in Table 8.

Figure 6
CFA Five-Factor Measurement Model


E1

(
F5)Effectiveness of ETP in GCC
F1
F3
F4
F2 .589 E2
.255




H1 0.92 H2 0.96








H3 0.77 H4 0.87







.758 .767
E3 E4










Table 6
CFA Pattern Matrix - Five Factor (CFA) Measurement Model

Factors
F1
F2
F3
F4
F5
R-Square
(Communalities)

1
0.601
0
0
0
0
0.533

2
0.692
0
0
0
0
0.515

3
0.688
0
0
0
0
0.552

4
0.701
0
0
0
0
0.491

5
0.698
0
0
0
0
0.399

6
0
0.803
0
0
0
0.320

7
0
0.821
0
0
0
0.299

8
0
0.832
0
0
0
0.327

9
0
0.833
0
0
0
0.534

10
0
0.895
0
0
0
0.44

11
0
0
0.702
0
0
0.685

12
0
0
0.681
0
0
0.785

13
0
0
0.782
0
0
0.440

14
0
0
0.698
0
0
0.513

15
0
0
0.976
0
0
0.574

16
0
0
0
0.751
0
0.511

17
0
0
0
0.652
0
0.664

18
0
0
0
0.650
0
0.425

19
0
0
0
0.822
0
0.567

20
0
0
0
0.821
0
0.784

Eigenvalues
1.26
1.83
1.48
2.55
2.327
--------



Table 7
Factor Correlations –Factor (CFA) Measurement Model
Factor
F1
F2
F3
F4

F1
1.00
0.612
0.650
0.482

F2
0.604
1.00
0.666
0.562

F3
0.600
0.656
1.00
0.383

F4
0.490
0.556
0.380
1.00




Table 8
Factors Influence - Important Driving Forces for the Effectiveness ETP in the GCC
Factor
Total %

ETP Content – Curriculum - F1
35

ETP Period - F2
10

ETP Trainers (Instructors – Individual mentor’s role) - F3
30

ETP’s Candidates’ Input (Involvement and Contribution) - F4
25




DISCUSSION AND HYPOTHESIS TESTING

Discussion
As indicated above, this study was guided by a series of main hypotheses and corresponding null hypotheses which are reiterated below:
H1o: there is no relationship between the ETP Content - Curriculum and the Effectiveness of entrepreneurship training programs (ETP) in the higher learning institutions in the Gulf Countries Counciel (GCC)
H2o: there is no relationship between the ETP Period and the Effectiveness of entrepreneurship training programs (ETP) in the higher learning institutions in the Gulf Countries Counciel (GCC)
H3o: there is no relationship between the ETP Trainers (Instructors – Individual mentor’s role) and the Effectiveness of entrepreneurship training programs (ETP) in the higher learning institutions in the Gulf Countries Counciel (GCC)
H4o: there is no relationship between the ETP’s Candidates’ Input (Involvement and Contribution) and the Effectiveness of entrepreneurship training programs (ETP) in the higher learning institutions in the Gulf Countries Counciel (GCC)
Hypothesis Testing
All told, four null hypotheses were tested by using the SEM. Based on the significant positive relationship coefficients and the direct effect that was identified between the Effectiveness ETP in the GCC and ETP Content – Curriculum - F1, ETP Period - F2, ETP Trainers (Instructors – Individual mentor’s role) - F3, ETP’s Candidates’ Input (Involvement and Contribution) - F4, H1o, H2o, H3o and H4o were rejected.

CONCLUSION

As indicated in the introductory chapter, the objectives of this study were as follows:
1- Examine the effectiveness of entrepreneurship training programs (ETP) (ETP Content (Curriculum), ETP Period, ETP Trainers (Instructors – Individual mentor’s role), ETP’s Candidates’ Input (Involvement and Contribution)) in the higher learning institutions in the Gulf Countries Counciel (GCC).
2- Investigating the effectiveness of local ETP among young students that will potential entrepreneurs in higher learning institutions in GCC.
3- Determine whether the current ETP conducted in GCC achieve its intended purposes of producing succesful young entrepreneurs.
Based on the secondary literature and the primary data that emerged from the structured interviews and survey, it is clear that the growing need for high-quality ETPs in the member-states of the GCC has outpaced the ability of institutions of higher learning to provide them. This failure is readily understandable, however, given the rapid pace of change in the international marketplace and geopolitical dynamics. Nevertheless, the research was consistent in showing that the lessons learned from past and current ETPs can help fine-tune curricular offerings to the specific needs of GCC member-states. In sum, the outcomes of this study are (1) the in-depth understanding on how the ETP is currently operationalised and measured in GCC; and (2) the development of a research-based guideline to improve local ETP in GCC.Indeed, the findings used to synchronize each program and formulate a much more effective training method for GCC education institutions.
Future Study
The benchmarks that emerged from this study provide a valuable basis for future studies concerning optimal coursework and faculty composition in GCC institutions of higher learning. In addition, further research is needed to identify more effective strategies for soliciting input and feedback from ETP candidates on an ongoing basis in order to evaluate the effectiveness of current coursework and how it can be improved in the future.







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