SMALL AND MEDIUM-SIZED businesses
(SMEs) are more likely to embrace innovation
if they employ recent college graduates,
according to research from Lancaster
University Management School (LUMS) in
the U.K. However, these firms are unlikely to
hire graduates because they are uncertain
how to recruit them; therefore, universities
should help SMEs tap this talent pool.
“Governments around Europe want to
encourage innovation within SMEs to help
them deal with the megatrends of globalization,
demographic change, and the rise
of robotics and artificial intelligence,” says
Carolyn Downs of the LUMS department
of marketing. “Our research shows that
the more graduates an SME employs, the
greater the chances of developing a culture
of innovation within that company.”
Downs suggests that, as a way to create
relationships between SMEs and students,
universities invite SMEs to participate in
live projects or offer student placements,
internships, and apprenticeships. SMEs
could also develop stronger connections
with universities by partnering with them
on knowledge transfers.
Downs points out that it is essential
for universities to support SMEs because
these firms represent 99 percent of all
EU businesses and have created
85 percent of new jobs in the last
five years. Graduates also can
help smaller businesses tackle
issues such as global warming.
LUMS researchers were
working with the SMEthod
Project, a Poland-based organization
that supports SMEs in the U.K., Spain,
Finland, and Cyprus. The project will help
funders identify businesses with innovation
potential and better target funding to areas
where it is most effective. The research
was funded by Horizon2020, a research
and innovation program in the EU.