Institutional Roles in Startup Development and Sustainable Growth: Creating the Entrepreneurship Ecosystem

Institutional Roles in Startup Development and Sustainable Growth: Creating the Entrepreneurship Ecosystem

Maslina Abdul Aziz^1* Rohana Zur², Mohd Azuan Mohd Alias³, Mohamad Idham Md Razak⁴

¹Faculty of Computer and Mathematical Science, University Technology MARA, 40450 Shah Alam

²Faculty Of Creative Arts and Design, University Technology MARA, 40450 Shah Alam

³Faculty Of Hotel & Tourism Management, University Technology MARA, 40450 Shah Alam

⁴Faculty of Business Management University Technology MARA, 40450 Shah Alam

*Corresponding Autor

DOI: https://dx.doi.org/10.47772/IJRISS.2025.90600097

Received: 29 May 2025; Accepted: 02 June 2025; Published: 01 July 2025

ABSTRACT

This study examines how entrepreneurship programs are developed and how successful they are in higher education, with an emphasis on the function of institutional support. Incubator platforms, supportive infrastructure, and strategic initiatives are examined in relation to the formation and viability of student-led businesses. The study examines the relationship between academic-industry partnerships, institutional frameworks, and the larger entrepreneurial ecosystem using real-world program experiences. The study also looks at how these programs support national strategies like Malaysia’s Dasar Keusahawanan Negara 2030 (DKN 2030) and help achieve important Sustainable Development Goals (SDGs), especially SDG 4 (Quality Education) and SDG 8 (Decent Work and Economic Growth). The findings highlight the potential of higher education institutions to drive innovation, create decent employment opportunities, and promote inclusive economic development through targeted entrepreneurial programmes. This study offers practical recommendations for educators, researchers, policymakers, and practitioners working to enhance the effectiveness of university-based entrepreneurship in Malaysia and beyond.

Keywords: entrepreneurship, innovation, incubator, ecosystem, startup.

INTRODUCTION

Universities serve as incubators for young entrepreneurs, equipping students with essential skills, knowledge, and support to launch and sustain businesses. Recognizing this, University Technology MARA (UiTM) has strategically developed an entrepreneurial ecosystem to support student startups, focusing on innovation, business sustainability, and industry collaboration. Government engagement plays a crucial role in shaping the Entrepreneurial Ecosystem (EE). Previous studies emphasize the significance of government-backed initiatives, including training programs, financial aid, informational resources, and marketing support (Petti et al., 2023; Theodoraki et al., 2022). These initiatives empower small and medium-sized enterprises (SMEs) in Malaysia, providing the necessary resources to nurture entrepreneurial growth and contribute to the broader economic landscape. UiTM’s efforts, in conjunction with these government supports, create a robust environment for student entrepreneurs to thrive. One of UiTM’s flagship initiatives is the UiTM Unicorn Scholar Programme (UiTM USP), launched in June 2021. The program aims to cultivate a new generation of student entrepreneurs by integrating academic excellence with real-world business practices. The success of university student start-ups by strengthening the student entrepreneurship ecosystem digital entrepreneurial ecosystem (Xiong, D., et al., 2024; Sitaridis, et al., 2024; Tóth-Pajor et al., 2023).

Students with exceptional academic achievement, leadership abilities, and entrepreneurial potential were the focus of USP. 16 students from various academic backgrounds were successfully selected and with the help of industry specialists, they went on to become entrepreneurs. The findings also provide useful recommendations for researchers, educators, policymakers, and practitioners to improve the success of university student start-ups by strengthening the student entrepreneurship ecosystem. SDGs 4 (Quality Education) and 8 (Decent Work and Economic Growth) align with the program’s goal. This program backs international initiatives to boost economic growth, encourage innovation and industrial development, encourage decent employment, and increase entrepreneurial activity. To accomplish these objectives, recent research highlights how crucial it is to incorporate entrepreneurship education. For example, value co-creation in entrepreneurship education greatly improves its quality and favourably affects students’ entrepreneurial ambitions, supporting both educational and economic development goals, according to Walidayni et al. (2023).

Audretsch et al. (2021) also emphasise how important entrepreneurship is to regional economic development, which is necessary to meet the interrelated Sustainable Development Goals. This program further strengthens UiTM’s entrepreneurial ecosystem, ensuring students have access to funding, industry networks, and structured mentorship to build sustainable businesses (Aziz et. al, 2024). A key strength of the USP lies in its ability to provide students with direct mentorship from established entrepreneurs, facilitated through its collaboration with the UiTM Alumni Business Network. This unique access to industry leaders offers students personalized guidance and practical insights that are invaluable for the development of their business ideas. The mentorship phase, coupled with workshops and industrial visits, has proven essential in refining their entrepreneurial skills, motivating them to pursue their business ventures with confidence and determination. Moreover, the program’s strategic focus on connecting participants with potential investors and sponsors has opened new pathways for securing funding, which is often a major barrier for young entrepreneurs. Through the Business Pitching Phase, participants could present their ideas to a panel of investors, increasing their chances of receiving the financial support necessary for scaling their businesses. This crucial element of the program ensures the sustainability of the ventures launched by USP graduates, providing them with the resources to continue growing and innovating.

A larger effort to support Malaysia’s innovation-driven economy includes the entrepreneurial environment among university graduates (Chen et al., 2024). An entrepreneurial ecosystem is made up of several interrelated components, such as funding possibilities, mentorship programs, support networks, and institutions (Theodoraki et al., 2022; Wurth et al., 2023). UiTM’s strategy is in line with Isenberg’s 2011 model of entrepreneurial ecosystems, which highlights access to finance, culture, and policy support as important factors in startup success. Ecosystems that support companies through funding, mentorship, and academic integration help to promote student entrepreneurship (Maritz et al., 2022). By serving as a link between academics and business, it guarantees that students use university resources to obtain real-world experience. Research indicates that university-led entrepreneurship programs significantly boost students’ confidence and readiness to launch businesses (Eisenstein et al., 2023; Wang et al., 2024).

Entrepreneurial sustainability, which emphasizes the creation of long-term economic and social value, is a vital component of the entrepreneurial ecosystem (Muñoz et al., 2024). Governments also play a crucial role in shaping effective ecosystems that support startups and entrepreneurs (Font-Cot et al., 2023; Fkun et al., 2023). By encouraging participants to create businesses that support industry growth, job creation, and community development, this program plays a crucial contribution in advancing sustainable business practices (Usman et al., 2024). The initiative supports student entrepreneurship and cultivates an innovative culture in higher education institutions, which is in line with the Ministry of Higher Education (MoHE) primary mission. The USP helps MoHE achieve its objectives of developing innovative thinkers who can assist Malaysia’s digital economy and entrepreneurial environment by giving students access to necessary tools, resources, and networks. In accordance with national objectives for economic growth and development, this initiative places a strong emphasis on the value of cultivating talent that can propel the next wave of innovation in the business sector. By giving students, the exposure and practical experience they need to transform their business ideas into successful, long-lasting efforts, the program seeks to close the gap between academia and business. As a result, Malaysia’s entrepreneurial setting is greatly influenced by the program’s success.

METHODOLOGY

The implementation of the UiTM Unicorn Scholar Programme (USP) follows a well-structured selection and training process designed to identify and nurture the most promising student entrepreneurs. By providing comprehensive guidance, mentorship, and practical experience, the program ensures that participants are well-prepared to launch and sustain successful businesses in today’s dynamic market environment. To evaluate how the USP module affected students’ learning outcomes, a pre-post survey was conducted. Prior to the program’s start, students completed a pre-survey in three main areas such as business pitching, real-world operations understanding, and entrepreneurial knowledge. After completing the program, the same students filled out a post-survey using identical or related items to measure their progress. A total of 16 students were selected, targeting individuals with high academic achievement, strong leadership qualities, and a strong interest in entrepreneurship. Data for the survey, which provided insights into the program’s impact on student development, were gathered online in June 2021 (pre-survey) and October 2022 (post-survey). Both questionnaires used a 5-point Likert scale to measure students’ attitudes and self-assessed skills. By comparing the pre- and post-survey data, changes in competencies attributable to program participation could be identified. This method provided a structured approach to evaluating the effectiveness of the module. The analysis of the pre- and post-survey responses enabled the identification of competency changes resulting from the program.

Figure 1: USP Methodology

Student Registration

The process begins with lecturers nominating students who have demonstrated potential for entrepreneurial success. These students are selected based on their high CGPA, as well as their demonstrated interest or involvement in business, whether through current entrepreneurial ventures or innovative business ideas. The nomination phase typically takes around two months, encompassing both the application and screening period. During this phase, lecturers assess students’ academic achievements, business acumen, and entrepreneurial spirit to ensure that they meet the program’s rigorous standards.

Student Selection

Following the nomination process, candidates undergo a two-phase selection. Phase 1 involves resume evaluation and interviews, where applicants present their business ideas and plans to assess feasibility and entrepreneurial potential. Shortlisted candidates then advance to Phase 2, an intensive four-day workshop led by industry professionals and entrepreneurs. This workshop equips them with essential skills in business operations, pitching, revenue generation, and marketing, while also offering motivational talks to inspire and prepare them for real-world entrepreneurial challenges.

Apprenticeship and Mentoring

After completing the workshop, participants enter the three-month Apprenticeship Phase, where they are grouped into teams and paired with a dedicated mentor. Each mentor is an experienced industry leader or an accomplished alumni of UiTM, carefully selected based on their expertise in the relevant business sectors. Mentoring sessions are held weekly, with mentors providing personalized guidance to help students refine their business ideas and plans. This phase offers hands-on learning, allowing students to apply the concepts learned in the workshop in a real-world context. The close mentorship ensures that students receive continuous feedback and advice, helping them to improve and grow their entrepreneurial skills.

International Industrial Visits

To supplement their learning, participants are given the opportunity to attend industrial visits, both locally and internationally. These visits provide students with valuable exposure to real-world business environments, offering a deeper understanding of how businesses operate in various industries and regions. The international visits are designed to broaden students’ perspectives and help them build global networks. These visits allow students to interact with entrepreneurs and business leaders from diverse backgrounds, gaining practical insights and learning new approaches to business management.

Business Pitching

The final phase of the program is the Business Pitching Phase, where participants could present their business ideas to a panel of experts, investors, and business leaders. During this phase, students pitch their business concepts, showcasing their potential for growth and their ability to generate revenue. Those with the most promising business ideas receive startup grants starting from RM5,000, which can be used to support the development and launch of their business ventures. The success of their business ideas and their ability to scale will be key factors in the decision-making process. This phase serves as both a culmination of the program’s training and a launchpad for the students’ entrepreneurial journeys.

RESULTS AND DISCUSSION

The UiTM USP has made significant strides in fostering creative and innovative entrepreneurs among its graduates. The program plays a crucial role in advancing the Ministry of Higher Education’s (KPT) agenda, which seeks to empower students by enhancing their entrepreneurial competencies and supporting the development of entrepreneurial ecosystems within higher education institutions. Through its carefully structured approach, it has proven to be a transformative experience for its participants, cultivating the skills and mindset necessary for entrepreneurial success. One of the key objectives of the USP is to equip students with the necessary skills and resources to turn their innovative ideas into viable businesses. The program focuses not only on academic learning but also on practical, hands-on experience that prepares students for real-world business challenges. As such, its outcomes can be measured both quantitatively and qualitatively, reflecting the positive impact on students’ entrepreneurial journeys and on the broader entrepreneurial ecosystem.

The pre- and post-survey results indicate significant improvements in student competencies following participation in the USP focus module (figure 2 and figure 3). The average Likert scale scores increased by 1.5 points across all assessed areas. Notably, competencies related to business pitching skills showed the highest improvement, with mean scores rising from 2.8 (pre-survey) to 4.5 (post-survey) on a 5-point scale. Similarly, understanding of real-world business operations improved markedly, with scores increasing from an average of 3.0 to 4.6. These results highlight the effectiveness of the program’s key components: the Apprenticeship and Mentoring Phase, Industrial Visits, and the Business Pitching Phase. Overall, the analysis suggests that structured mentorship and exposure to industry practices significantly enhanced students’ entrepreneurial knowledge and practical skills. Further analysis with statistical testing (e.g., paired t-test) could provide stronger confirmation of these observed changes.

Figure 2: Pre-Survey Result for USP Program

Figure 3: Post Survey Result for USP Program

A high degree of student engagement was demonstrated by the fact that 80% of survey respondents said they had taken part in entrepreneurship-related activities (Figure 4). These events, which provided a variety of real-world exposure to entrepreneurial situations, included webinars, innovation contests, and sales events during Entrepreneurship Day. Many quantifiable and significant results have resulted from the program, including the creation of student-led businesses, higher profits for already-existing businesses, the acquisition of critical business skills, and the creation of new job opportunities that promote economic growth on a local and national level.

Figure 4: Entrepreneurship involvement

A major accomplishment of the USP is the establishment of 16 fully registered companies under the Companies Commission of Malaysia (SSM). This outcome highlights the success of the program in fostering entrepreneurship, as students are not only equipped with knowledge and skills but are also empowered to create and formalize their own businesses. These newly established businesses span a variety of industries, showcasing the diverse talents and innovative ideas fostered by the program. The creation of these companies not only contributes to the local economy but also enhances Malaysia’s position as a growing hub for startups and entrepreneurial ventures.

The suggested model for the program is shown in Figure 5. Students take an e-commerce course during their studies that combines webinars, training sessions, and practical experiences including project-based learning, Entrepreneur Week, and company competitions. Students gain basic business skills and develop entrepreneurial mindsets through these activities. Students may have a business idea or a current business when they enrol in the program. No matter where they begin, the program has been successful in improving corporate results. Through specialised training, one-on-one coaching, and exposure to the industry, participants saw an average 10% increase in income. This progress is ascribed to exposure to industry best practices, direct use of business development tactics, and helpful advice from seasoned mentors. To scale their businesses, participants enhanced operational efficiency, refined their marketing strategies, and updated their business plans. The outcomes highlight the program’s influence on students’ long-term entrepreneurial success as well as its support of their current businesses.

Figure 5: Proposed USP Model

An essential aspect of the USP is its focus on developing not just entrepreneurs but also future leaders who can mentor others and contribute to job creation. The program provides participants with valuable business coaching skills, empowering them to guide and support others in their entrepreneurial journey. Many graduates have taken on mentoring roles themselves, helping other aspiring entrepreneurs navigate the challenges of starting and running a business. Furthermore, the ability to create job opportunities is a key outcome, as many participants have scaled their businesses to the point where they are hiring employees and contributing to the local job market. This ripple effect of job creation and knowledge-sharing ensures that the impact of the USP extends beyond just the participants, benefiting the broader community.

One of the valuable outcomes for participants is the potential to secure funding from sponsors and investors. Through the business pitching phase, where students present their ideas to industry experts and investors, many participants have attracted the attention of potential sponsors or secured funding for their ventures. The program’s close ties with various business networks, both local and international, provide a valuable platform for participants to showcase their business ideas and connect with investors who are looking for innovative startups to support. This aspect of the program is crucial in ensuring the sustainability and growth of the businesses that emerge from the USP, as access to funding is often a major barrier for new entrepreneurs. Additionally, the exposure to investors and sponsors helps participants refine their business strategies and enhance their ability to attract financial support, which is essential for scaling their operations.

CONCLUSION

By equipping students with the essential skills, knowledge, and resources, the program has significantly contributed to the growth of the entrepreneurial ecosystem, producing graduates who are not only academically accomplished but also highly competent in the field of entrepreneurship. The program has successfully fostered the creation of registered businesses, driven revenue growth for existing ventures, and enhanced participants’ abilities to create job opportunities. These outcomes underscore the program’s effectiveness in meeting the needs of aspiring entrepreneurs and its alignment with the Ministry of Higher Education’s agenda to strengthen student entrepreneurship across the country. University entrepreneurial initiatives have an impact that goes beyond individual student achievements; they play a significant role in creating jobs, boosting local economies, and strengthening the overall economic landscape. By focusing on enterprise and leadership development, these initiatives align with national goals to expand and fortify the entrepreneurial ecosystem. Furthermore, by fostering collaboration among universities, industries, and communities, they lay the foundation for long-term, sustainable partnerships that drive innovation, create career opportunities, and reinforce the university’s role in shaping the country’s entrepreneurial and economic future. The findings from this study also provide valuable recommendations for researchers, educators, policymakers, and practitioners to enhance the success of university-based student start-ups by strengthening the student entrepreneurship ecosystem. Expanding participation will greatly benefit the long-term impact of the UiTM Unicorn Scholar Programme (USP) and further strengthen it. Recognising the success of USP1.0, which produced 16 successful entrepreneurs, the programme has continued with a second cohort (USP2.0) of 15 students who are expected to graduate by the end of 2025. Future editions of the programme have the potential to make an even greater impact on the student community if more participants are involved. Engaging students from various fields and academic backgrounds will allow USP to cultivate a more diverse range of entrepreneurial talent while promoting broader and more inclusive participation across the campus. By continuously developing entrepreneurial talent, the program contributes to the growth of Malaysia’s business landscape and prepares graduates to lead new ventures and drive national economic advancement.

ACKNOWLEDGEMENTS

The researchers would like to express their gratitude to the Malaysian Academy of SME & Entrepreneurship Development (MASMED), University Technology MARA, for the support of academic research and enabling the sharing of research findings locally.

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