The adequacy of coverage in small business courses at American colleges and universities.

THE ADEQUACY OF COVERAGE IN SMALL BUSINESS COURSES AT AMERICAN COLLEGES AND UNIVERSITIES

To determine whether small business management courses offered at American colleges and universities provide adequate coverage of important topics, faculty involved in small business management programs were

surveyed. Most respondents have indicated that small business managers need a strong background in marketing, management, and finance. Half of the respondents believe a strong background in accounting is needed too. Most respondents, however, do not believe these areas are being adequately covered in the small business management courses most institutions offer. Furthermore, most feel that typical introductory marketing, management, finance, and accounting courses give inadequate attention to small business problems and opportunities. Suggestions for improvement are provided in this article.

One need only glance at the published U.S. government statistics to realize that small business is a major driving force in our economy. For example, 119,065 new businesses were started in 1985, a 16.4 percent increase over the number started in 1984, and most of these would be considered small businesses. And these figures do not include many of the "smallest" businesses, i.e., self-employed individuals or those entities with sales of less than $100,000 (The State of Small Business, 1986:3-4).

Despite these small firm statistics, a cursory examination of the curricula of American business schools indicates that almost all courses focus on preparing students for careers in large businesses. The relative importance of small businesses to the U.S. economy is simply not reflected in business schools' curricula. Thus, one might question whether the current type of fundamental business training, with its emphasis on large business, works to the disadvantage of the student or business school graduate who ultimately becomes involved in a small business career.

Furthermore, at the executive education level, small business persons and entrepreneurs - and those destined to be such - need something more than - or other than - large business instruction. As Ronstadt (1985:11-12) pointed out, many potential and existing entrepreneurs do not start planning their entrepreneurial careers early enough; they do not look at the various ways to configure a venture; and they do not always explore the possibility of creating additional ventures and harvesting old ones. One obvious source of information available to the entrepreneur and small business owner or manager who is planning to start a new venture or who wants to sharpen his or her managerial skills is a small business management program offered by many colleges and universities. But are these institutions adequately covering important small business topics?

This article discusses the views of current small business program faculty on issues relating to the adequacy of current collegiate small business management offerings, and, in particular, suggests improvements if apparent needs are to be met. Additionally, the importance of the inclusion of various functional area topics in the small business course is explored, and the adequacy of small business content in the functional courses themselves is examined.

INTRODUCTION

According to Siropolis (1986:16), "... most of the nation's 1,231 community colleges offer at least one course in small business management." Additionally, in a recent survey by Vesper (1986:vii), 212 business schools and 41 engineering schools reported that they offer courses in entrepreneurship. While these figures do not provide the complete picture or indicate the total number of schools offering either small business management management or entrepreneurial courses, they do provide evidence that many two-year and four-year institutions of higher education recognize the need for some small business and entrepreneurial training.

There are some universities and colleges that are strengthening their small business programs specifically to meet the needs of their surrounding communities. For example, in Eugene, Oregon, the administration at Lane Community College concluded that a strong small business community was needed to help improve the economy, which was suffering from high unemployment, a flood of business failures, and a drop in state revenues due to the weakened wood products industry. To strengthen the small business community, Lane formed a business assistance center that offers a wide range of management assistance services. Among them are counseling, library resources, and educational programs that include workshops and seminars (Cutler, 1984:29).

The Lane Community College case is just one of many examples where small business owners and managers are returning to the classroom to improve their managerial skills. Some people are taking part in educational programs conducted by corporations inhouse, and some are enrolling in college campus programs that have been designed specifically for an individual organization. A recent survey indicates that there has been a 63 percent increase over the last decade in small business programs offered by university-level business schools for specific companies that request them (Wantuck, 1985:25). The majority of small business programs, however, are not organization-specific and are open to both practicing business persons and prospective small business owners and managers.

Who Is the Small Business Management Student?

In the relatively recent past almost all students enrolled in small business courses and programs were the "traditional" students - individuals who had recently completed high school and immediately pursued a college or university degree. This, however, is no longer true. While there are many "traditional" students enrolled in these courses and programs, a large number of the students in our institutions of higher education are "nontraditional." This category often includes older adults who have returned to school for a number of different reasons, as well as younger students who are working full or part time.

Regardless of the classification scheme, some students will be seeking in-depth small business instruction; others will not. Hence, small business management education of today needs to focus on at least two types of students: those who require only a basic overview of small business management and those who need more specific small business training.

The General Business Curriculum

As the general business curriculum has developed in schools of business throughout the U.S., attention has increasingly been directed toward "specialties," which is reflected by the various majors that exist at virtually every college and university. The majors typically emphasize the functional areas of business (e.g., accounting, finance, marketing), and it appears that in most cases, courses within majors focus on the large business environment. The marketing research course is an excellent example. In this highly specialized and increasingly sophisticated marketing course, the content that is normally presented concentrates on the way consumer or business research may be optimally conducted-the sort of research that is most appropriate for du Pont, Procter & Gamble or Citicorp, rather than the kind of customer research that might be appropriate for a local supermarket or a men's or women's specialty shop. In effect, what the student who plans to work in a small business is expected to do is relate the marketing research needs of a giant organization like Citicorp to his or her own situation.

Clearly, there is much to be learned about small business management from the general business curriculum. This is especially true when this approach is accompanied by one or more small business courses. The latter are expected to cover such cornerstones of small business development as entrepreneurship, venture capital, and business plans, and are also expected to provide a linkage between the general business (and more specifically large business) environment and the needs of current (and future) small business men and women.

In a recent study of colleges and universities offering courses in small business, it was determined that the majority of the schools start with a standard course directed at start-up businesses which consists of projects in venture design, case studies and readings, and lectures by both guest speakers and the instructor (Vesper, 1986:x). In addition to this basic course, some of these institutions also provide other courses in small business and perhaps offer courses in marketing law and other subjects that will aid the practicing or soon-to-be small business owner or manager.

Critical questions concerning the adequacy of small business coverage need to be answered. Is the general business curriculum plus one or two small business courses enough? Is this now traditional approach to meeting the needs of the small business community - a vital force in the U.S. economy - optimum or even adequate?

The Future of the Traditional Approach

Few would argue that current and future small business practitioners can learn something about managing a small business by completing the courses in the general business curriculum. There seems to be no doubt that there is value in being exposed to basic business and management principles, accounting concepts, etc. But it is critical that one who is or will be a small business person learn about business principles, concepts, and applications that are unique to small business. This type of information is often only found in small business-specific courses.

Unfortunately, because of the allocation of limited resources, a wide assortment of small business-specific courses is usually not offered at colleges universities in the U.S. Instead, one or two courses is often expected to suffice. Perhaps, however, increased public recognition of the importance of small business will cause more resources to be directed toward small business training in the future.

A SURVEY OF SMALL BUSINESS EDUCATORS

To determine if small business courses at American colleges and universities adequately cover important topics, we contacted via mail survey 200 faculty

members who are involved in teaching and/or administrating small business courses. Each is a member of the International Council for Small Business. Our survey consisted primarily of statements dealing with small business management course offerings, and recipients were asked to indicate the extent to which they agreed or disagreed with each statement. The survey was completed and returned by 90 recipients (resulting in a 45 percent response rate).

An important initial finding from the research was a determination of the student profile in small business management courses. Are such students basically traditional or "non-traditional" (e.g., working adults)? According to our results, some 28 percent of the respondents indicate that one-fourth or more of their students are non-traditional.

Background Needed for Success in Small Business

The educators in our sample were first queried to determine what they felt was the needed background for small business managers. Table 1 indicates the respondents' reactions to four statements that deal with requisites for success in small business. Over three-quarters of the respondents agree with the assertion that small business managers need a strong background in marketing in order to be successful. Almost as many feel the same is true regarding a background in management. Over sixty percent believe a solid finance background is needed, but the educators are more evenly split on the issue of having such a background in accounting.

Knowledge of marketing and management concepts, techniques, and ideas then are the primary requisites for success in small business, at least according to most of our survey respondents. Finance and accounting however, are not to be overlooked. Many respondents have concluded that obtaining a firm grasp of these areas is also necessary if one is planning on entering or establishing a small business.

Small Business Course Coverage

Table 2 presents the responding educators' reactions to statements that relate to the adequacy of coverage in most small business management courses. Although many of the respondents had indicated they recognized a need for small business managers to have strong backgrounds in marketing, management, finance and accounting (see Table 1), the majority of the respondents contend that most small business management courses do not cover these subjects adequately. Finance, in particular is singled out by over 60 percent of the educators as being a topic that is treated inadequately. [Tabular Data Omitted]

A shortage of class time could be the reason why so many of our respondents perceive inadequate topic coverage in small business courses. Or it might be that some feel that most small business instructors have skills in some - but not all - functional areas of business. Another possible explanation is that some respondents believe that although topic coverage is inadequate in most small business courses, these topics - as they relate to small business - are adequately covered in the basic functional area courses (e.g., introductory accounting, introductory marketing). This possible reason for the results appearing in Table 2 is explored further in the next section of this article. [Tabular Data Omitted]

Small Business Coverage by Functional Areas

To determine if the educators believe that small business is given appropriate coverage in the basic functional area courses, the survey respondents were asked to react to a statement that deals with this issue. Table 3 presents the educators' views on this matter and two others. [Tabular Data Omitted]

The results indicate that almost three-quarters of the respondents feel that small business topics are not given adequate coverage in the basic functional area courses. This finding, when coupled with the results reported in Table 2, lead us to conclude that most of the responding educators are of the belief that students in American colleges and universities today are not being adequately exposed to small business marketing, management, finance, and accounting topics in their basic functional area courses nor in small business management courses.

One means of satisfying a perceived need for more coverage of the functional topics as they relate to small business would be to have each functional area provide its own small business course. The second and third statements in Table 3 suggest such an approach. Less than a quarter of the respondents agree with the statement that "Each functional area should offer its own small business course (e.g., Small Business Accounting, Small Business Marketing), which students could take instead of the current Small Business Management course." But almost 40 percent believe that "Each functional area should offer its own small business course . . ., which students could take in addition to the current Small Business Management course."

A significant number of respondents are in effect suggesting that at least one way to attack the problem of inadequate small business topic coverage is to increase the number of courses offered that focus strictly on small business. The cost of this particular option would, of course, be considerable, and that could very well be the reason why so many of the respondents reject the notion that each functional area should offer its own small business course. Additionally, some of the respondents who are not in favor of functional area small business courses might feel that although more coverage of the topics of small business marketing, small business finance, etc. is warranted, offering an entire course in each topic is more coverage than is necessary.

SUMMARY AND CONCLUSION

The results of a study dealing with the adequacy of coverage in small business courses are reported in this article. Most of the members of the International Council for Small Business who responded to our survey indicated that small business managers need a strong background in marketing, management, and finance in order to be successful. Half of the respondents agree that a strong background in accounting is needed as well. The majority, however, feel that most small business management courses are not adequately covering marketing, management, finance, and accounting. And almost three out of every four respondents believe that the introductory marketing, management, finance, and accounting courses make short shrift of small business problems and opportunities.

Some of the respondents feel the answer to the problem of inadequate topic coverage is to have each functional area offer its own small business course. Although many disagree with this idea for one reason or another, it should at least be given consideration by colleges and universities that presently have very limited small business offerings. It would appear that this approach to adding small business coverage would work particularly well at institutions that offer courses with varying levels of course credit. Instead of establishing several small business courses by functional area with each carrying the traditional three or four credits, the newly established courses could instead be shorter with each course worth just one or two credits.

If an institution's faculty believes that having several functional-area-oriented small business courses is inappropriate for whatever reason, then some other means of enhancing small business coverage must be pursued in order to provide students with an adequate background in marketing, management, finance, and accounting. Perhaps what should be considered is an expansion of the small business offering by the addition of just one course. For example, colleges and universities that have only one small business course in their curriculum could consider adding a second (e.g., Small Business Management I and Small Business Management II). In this way added class time would be available to more adequately cover important small business topics.

As noted earlier in this article, funding is often the reason cited for the lack of extensive course offerings. More students, however, generate more revenues. If educational institutions publicize their programs properly and offer what the public wants and needs, then more people will be interested in participating in small business management programs.

REFERENCES

Cutler, E. (1984). Open for business. Community and Junior College Journal, 55(3), 28-30.

Ronstadt, R. (1985). The educated entrepreneurs: a new era of entrepreneurialeducation

beginning. American Journal of Small Business, 10 (Summer), 7-25.

Siropolis, N. (1986). Small business management: a guide to entrepreneurship.Boston: Houghton Mifflin Co.

The state of small business: a report of the president 1986 (1986). Washington, D.C.:

U.S. Government Printing Office.

Vesper, K. (1986). Entrepreneurship education 1985. Wellesley, Ma.: Center for Entrepreneurial

Studies, Babson College.

Wantuck, M. (1985). Bottom line 101. Nation's Business, 73(10), 24-32.