Entrepreneurship: A New Era at Penn State

TO:          The Pennsylvania State University’s Board of Trustees
FROM:       Steven Cornwell & Kali Rundle
SUBJECT: Entrepreneurship: A New Era at Penn State
DATE:        November 11, 2015

The following report is a proposal to allocate the funds from a recent donation towards building a new entrepreneurship center at the Pennsylvania State University.

College students make tremendous financial investments into their undergraduate educations. With the goal of post-graduation employment, Penn State students pay tens, if not hundreds, of thousands of dollars on the teaching staff, the connections, and the resources that their university provides. We have taken the time to analyze and conclude that students at Penn State could further enhance their educations by utilizing a central hub dedicated to innovation and entrepreneurship.

Our proposal report regarding the building of a new entrepreneurship center provides answers on how Penn State can better serve its constituents while benefitting the university long term. Our research helped us discover the major aspects it will take to physically construct a new building, but our proposal is more focused on why we, Penn State and its students, will benefit from the new building. However, we will include pertinent details such as cost analysis, possible locations and some of the main features of our proposed building.

Entrepreneurship is continuously emphasized at Penn State. University officials recently introduced a new entrepreneurship major, which President Barron described as an “investment in economic development and student career successes.” For that reason, we hope that you, members of the Board of Trustees, will be receptive to our plan and the benefits it will create.

The weak macro economic environment, coupled with changing generational preferences as well as a rebirth of entrepreneurship in America has led to the ideal conditions for implementation of our proposal. Our thorough research has helped solidify our recommendation that Penn State needs to build new entrepreneurship center to adapt to the changing needs of its students.

We would like to acknowledge the few people that aided us in crafting this proposal. A special thank you to the President of Innoblue Entrepreneurship club, William Ferguson. He graciously allowed us to survey his club, and these insights helped shape our project. We would like to thank Administrative Assistant Ann Zirkle for helping our research on the implementation of the building. Another thank you goes out to Dr. Christine Grogan for guiding our proposal and research.

Thank you for allowing us the opportunity to present our entrepreneurship center proposal. We look forward to discussing the possibility of carrying out our research plans. If you have any further questions, please contact Steven Cornwell at St[email protected] or Kali Rundle at [email protected].

Table of Contents
Executive Summary     . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     . . . . . . . . . . v
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
The Weak Economy, Rise of Entrepreneurship,
and Changes in Millennial Preferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2 The Weak Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Rise of Entrepreneurship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Changes in Millennial Preferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  5
Culture Changes at Penn State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . 6
Construction of Penn State
Entrepreneurship Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Research Behind Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  8
Building Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Cost Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Works Cited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

List of Illustrations
Figures: PAGE
Figure 1 . . . . . . . 2
Figure 2 . . . . . . . 3
Figure 3 . . . . . . . 3
Figure 4 . . . . . . . 8
Figure 5 . . . . . . . 9
Figure 6 . . . . . . . 9
Figure 7 . . . . . . 10

Tables: PAGE
Table 1 . . . . . . . 11
Executive Summary

This report researches the current weak economic conditions and proposes the implementation of an entrepreneurship center at the Pennsylvania State University.

Problems: Economic Downturn hurts the Job Market
College students are graduating into unprecedented economic conditions. The job market has failed to rebound since the 2008 housing market collapse and still a record 93.6 million
Americans are not participating in the work force. Quality employment prospects are becoming increasingly competitive and hard to come by. Unemployment statistics show that college grads are disproportionately represented with 24.5% of them jobless. Penn State students need to be prepared for the harsh economic realities they face after graduation.

Despite the harsh economic climate, Americans, and specifically millennials have found entrepreneurship as a viable path to career successes. Entrepreneurship requires innovation, creativity, and originality, three distinguishing characteristics. Startup activity has been its highest in twenty years, and the current generation is keen to contribute to it. In order to stay competitive as a school, Penn State must meet and surpass the changing needs of its students in preparing them for the unique challenges that await them upon graduation.

Solutions: Build Entrepreneurship Center to promote Innovation
An entrepreneurship center at the Pennsylvania State University will provide the resources any student could need to become successful in today’s economy. The entrepreneurship building would include necessary technology, conference rooms, editing equipment, and most importantly, a place to meet other aspiring students. With the chance to work in an upbeat and innovative culture, Penn State students can create more ideas, gain confidence, and work on projects that could set them apart in facing the job market. This building would be the hub for innovation at Penn State, and in an economy where innovation is essential; this building becomes even more important to the community.

Benefits: Outstanding University generates Prestigious Students stronger network
Building an entrepreneurship center will benefit Penn State’s students and the university as a whole. Some of the potential benefits are as follows:
• A hub for inspiring entrepreneurial students to interact and network
• A unique student culture that would set Penn State students apart from/above other students
• A creation of confident, innovative students o Building a stronger alumni network for students and potential donations
• A competitive edge for the university in comparison to the other Big 10 schools
• Cementing Penn State’s standing as the number 1 ranked university by corporate recruiters Building the entrepreneurship center at Penn State will emulate the Board’s mission of  “govern[ing] the welfare of the University and all the interests pertaining thereto including students, faculty, staff and alumni.”



The purpose of this proposal is to show the benefits of allocating the recent donation towards the construction of a new entrepreneurship center. We will work with the governing body of Smeal, as well as all Penn State students, to facilitate our proposal, which will ultimately benefit the entire university and its constituents. This proposal will provide an in depth view of the weak job market and unique circumstances that drive the purpose of this report.

The dynamics and fundamentals of the macroeconomic environment are changing drastically. Gone are the days of stable employment, long climbs up the corporate ladder and retirements paid by company pensions. The world economy is becoming increasingly destabilized by unprecedented levels of debt fueled by speculation and currencies that derive no actual value. The fundamental problems of our economy are beginning to take root and have already started disproportionately affecting college graduates. Students are not seeing the financial return of a college education when they graduate with record levels of debt and get hired for jobs they are overqualified for.

To better prepare the Penn State student body for the tough economic realities that lie ahead, university officials must build an entrepreneurship center for students with goals of going into business for themselves. This building will serve as a central location for like-minded students to pursue their business ideas together. The entrepreneurship center will be an incubation hub to innovate the jobs of tomorrow. The proposal will better university employment statistics and increase the prestige of the university. Down the road, Penn State will have a more dynamic alumni base to tap into to provide funding and jobs for future students. The university can take the lead in developing entrepreneurial talent, and it must recognize it as a viable option for students given the uncertain economic times we live in.

The report will focus more so on the why aspect versus the how aspect. A full-scale detailed construction timeline goes beyond the scope of this proposal. However, we will provide recommendations on the cost of the project, possible locations and features that should be included in the building. Physical implementation of the building will be at the Board’s discretion. The research contained in this proposal proves the university and its constituents will benefit greatly from the construction of a new entrepreneurship center.

The Weak Economy, Rise of Entrepreneurship, and Changes in Millennial preferences
The recent donation should to be utilized in a way that brings the greatest value to the greatest number of people within the Penn State community. Our proposal is the solution to the problems of the weak economy, the rise of entrepreneurship, and the changes in Millennial preferences.

The Weak Economy

Ultimately, the investment students make into obtaining a Penn State degree must become tangible in the form of some type of employment. Unfortunately, the world economy has becoming increasingly destabilized and with it, the prospects of reaching quality employment opportunities. Many of the employment numbers espoused by government statistics paint a far rosier employment picture than reality. Labor force participation rates are at 38-year lows with a record 93.6 million Americans not in the work force (CNS News). You can see the drop in employment in Figure 1, located on the right. The portion of Americans aged 25-34 who are employed has dropped to a new low of 75.5% (USA Today).
More and more, college grads are being
forced to take jobs they are Figure 1:
overqualified for. Forty four percent of LABOR FORCE PARTICIPATION (in millions)    Americans aged 22-27 with at least a bachelor’s degree are working jobs that don’t require that level of education. Another discouraging survey found that the most common jobs for fully employed 19-29 year olds with Bachelor’s degrees are: merchandise displayers, clothing store reps and cell phone salesman (CNN). These kinds of jobs are not worth the financial investment of a college education. Not to mention, 7 in 10 college seniors are
graduating with an average of $28,400 in 93.6 million Americans dropped out of the workforce,   largest drop in 38 years. debt (Fortune). College grads themselves are increasingly pessimistic about the employment outlook. A
Harva     rd University survey found 45% of those polled said student loan obligations would seriously affect their financial situation for years to come. The survey further highlighted that 3 out of 4 college grads expect a somewhat or very difficult time finding a job (Fortune). Couple these statistics with the shaky foundations of the world economic environment and it is easy to see why college grads are so pessimistic.
Entrepreneurship in America
Despite the faltering economy, more and more college grads can follow their career goals by turning to entrepreneurship. A new report highlighted that startup activity has been its highest in 20 years. For every 100,000 U.S adults, 310 are small business owners, which translates to about 530,000 new businesses each month (Forbes). For some people, taking a chance on starting a business is equally risky as the instability of the job market.

The Rise of Technology
The rise of entrepreneurship can also be traced to the cheap technology Americans have at their disposal. The general population has access to tons of information and data via the Internet. Entrepreneurs can leverage their smartphones, tablets and computers to run day-to-day operations. Online software tools are also making entrepreneurship more prevalent and affordable. Any person with access to the Internet, a telephone and a credit card can start an online business. Technology has altered the start-up landscape and rejuvenated the entrepreneurial spirit of the country.

Entrepreneurship in America Continued

Corporate America Struggles
In contrast, corporate America is struggling to keep pace with technological advancements. Large businesses have complex integrated systems that make them less adaptable to emerging technologies. Small businesses on the other hand are better suited to adapt to this rapid pace of change. The mobility of the American worker also gives entrepreneurs a flexible talent pool to tap into. The business playing field has changed drastically to favor the elastic nature of smaller start-up firms.

Venture Capital
Venture capital has always been the lifeblood of new companies. It used to be a realm of business reserved for the wealthy and connected, but it too has become more entrepreneurial in nature. Aspiring business owners can now pitch their ideas on crowd funding platforms like Kickstarter and Indiegogo (Forbes). Anyone with a business idea can check its validity and staying power with an online audience. The average U.S citizen is playing an even greater role in financing and discovering the next successful American company. Old school venture capital firms are also pouring money into the start-up space at unprecedented levels. In 2013 alone, VC’s invested $29.4 billion dollars into 3,995 deals, representing a 7% increase from the year prior (Forbes). The entrepreneurial landscape is thriving in America.

Changes in Millennial Preferences

Millennials have been the most vocal generation in their support for cultural changes within business. The London Business School released a study that showed that Millennials favor careers with greater flexibility, control and purpose. Entrepreneurship offers our generation a means to these ends. The numbers speak even greater volumes to the millennial generation’s desires to be self-employed. A Bentley University survey of millennials showed that 13% of respondents favored
a career that involved climbing the corporate ladder. Contrast that with Figure 3:
the 67% of respondents that said LABOR FORCE BY GENERATION (in millions)    their career goals involve starting their own businesses (Forbes). These numbers are staggering and confirm that the entrepreneurial drive is alive and well amongst the millennial generation. Furthermore, 77% of millennials say that flexible work hours are key to boosting productivity within their generation. More and more young people are shunning the 9-5 life their parents inherited. With millennials making up roughly 75% of the workforce by
2025, it is time Penn State puts a Millennials now have the largest generational representation in
greater emphasis on the work force entrepreneurship (Forbes).

Culture Changes at Penn State
We would like to commend university officials for realizing the changing economic environment and the need for the school to invest more resources into entrepreneurship. Just last year, Smeal introduced a new entrepreneurship major. President Barron described the new major as an, “…investment in economic development and student career successes.” He goes onto state that, “…[Penn State] needs deliberate strategies to promote economic development and a culture that rewards entrepreneurship (Eric Barron).” Despite this renewed emphasis, employment statistics from Smeal show that only 0.9% of its students are starting entrepreneurial ventures upon graduation (Smeal). This number is too low and needs to increase to reflect the desires of our student body.

Construction of a Penn State Entrepreneurship Center

After a review of these facts, it is essential that the Board of Trustees spend the recent donation on constructing a new entrepreneurship center for students. This new innovation hub will be an area for aspiring entrepreneurs to network, engage and work on their fledgling start-up ideas. The ultimate purpose of the building is to aid students in their entrepreneurial pursuits. The building itself should not be extravagant in nature, as to reflect the harsh economic challenges entrepreneurs face. Our society glorifies the lavish and wealthy start-up culture found in Silicon Valley but that hardly reflects the circumstances most new businesses face.

The innovation center should come with the equipment necessary to help students craft their business ideas. Modern entrepreneurship relies heavily on technology, and we want to put the right tools in our students’ hands. The building needs to be equipped with:

• A computer lab with both Mac’s and PC’s so students with technology backgrounds can code
• Editing equipment so students can create the viral content they need to be successful in a digital age
• Latest software and productivity tools with the technology
• Conference rooms equipped with video projectors, white boards and seating (These areas will function as places for presentations and collaboration amongst students)
• A small food court to enhance the collaborative/networking environment we want to instill. Successful start-ups know how to access and network with peers.

The building will serve as the central location for the incubation of new ideas and cultivation of

entrepreneurial talent amongst our student body.

Building the innovation center will further cement Penn State’s  standing as the number 1 ranked university by corporate recruiters. The Board needs to continue to show that it is the best at preparing students for life after graduation. Our proposal represents an opportunity for the Board to distinguish itself from our Big Ten competition. Universally, the Big Ten is not known as a hotbed for entrepreneurial innovation. West coast schools and urban campuses are generally ranked highest when it comes to developing entrepreneurial talent. Penn State can take the lead in the Big Ten and differentiate itself from our competition. This building will signify that our school is dedicated to preparing students for their career aspirations. Coupled with the new entrepreneurship major, the innovation center will increase the number of students that are employed in some way upon graduation.

The proposal also serves to increase the long-term success and prestige of the university. Down the road, successful start-ups that begin at Penn State can be tapped into for the funding and hiring of future students. The more entrepreneurial ventures the university supports, equates to a larger, more robust alumni network to tap into.

Notable alumni, Dan
Veltri, founded
Weebly.com while at
Penn State. Mr. Veltri and his web-publishing startup are now valued at $455 million (Onward State). These are the kinds of people that Penn State wants to develop because they not only help our institution in the long run, but also bring value to the world. If the Board acts quickly the benefits of the entrepreneurship center can begin to happen within the next 3 years.

Our proposal only works if the student body supports it. Our research validates our belief that the funding of an entrepreneurship center will bring about the greatest amount of value to the Penn State community. We decided to cater our proposal to business students and students with entrepreneurial desires. One of the first places we sought help in formulating our proposal was the Innoblue Entrepreneurship club.

Innoblue at Penn State is a community of students dedicated to innovation and empowering aspiring entrepreneurs. According to Innoblue’s Facebook page, there are over 400 members in the club. Using this
information, we concluded that  members of this group would be a target audience. We attended one of Innoblue’s weekly meetings and had 17 students answer a four question survey. The survey had questions that asked students if a building on campus dedicated to entrepreneurship could be beneficial to Penn State/its students. As shown to the right in Figure 4, there was very positive feedback from the Innoblue students regarding the benefits of this building.

Furthermore, the survey asked if the reader could see him/herself using such a building. Of the 17 students surveyed, 16 said they could see themselves using
Figure 4:
A vast majority of Innoblue entrepreneurs want an entrepreneurship center.

such a building or could maybe see
themselves using the building. With our sample size, we feel comfortable extrapolating the data to compare to the greater Penn State student body. This leads us to conclude that the majority of the aspiring entrepreneurs at Penn State would find a building dedicated to innovation and entrepreneurship beneficial to themselves and/or the Penn State community.

Research Behind Construction Continued

Additionally, we decided that Smeal students could also find an entrepreneurship center beneficial. With this idea, we conducted a survey of the students located in the business building. Out of the 55 students surveyed, 53 were future/current Smeal students and 40 of those students said that yes or depending on circumstances they are interested in entrepreneurship and starting their own businesses.

Figure 5:  Moreover, 36 students said that a building
SMEAL STUDENTS THAT FIND CENTER BENEFICIAL   on campus dedicated to entrepreneurship
could be beneficial, as show in Figure 5.Our research leads us to confidently state a majority of aspiring
entrepreneurs/Smeal students at the Pennsylvania State University would find a building dedicated to entrepreneurship and innovation beneficial to themselves and/or the student body as a whole.
A majority of Smeal Students is in favor of the entrepreneurship center.
Building Resources
Following our research regarding potential interest in an entrepreneurship center, we surveyed students to discover what features in the building would be most needed/utilized. Using the same pool of 72 students, we asked what tools, resources, or equipment they would find useful in an entrepreneurship building. The results are as followed in Figure 6:

Figure 6:  Based off the data collected, we concluded that
computers and conference rooms are the most essential resources. Soundproof rooms, recording studios/film equipment, and a cafe must be included in the center as well, each feature’s level of importance indicated by that order.

Our research has indicated Penn State students’ desire for and benefits of an entrepreneurship center on campus. With the acceptance and want for this building, we proceeded to analyze the costs of implementing our
proposal. According to student survey, computer labs and conference rooms are a necessity.

No construction company would go through with a cost estimate for a building that has not yet been approved by the Board of Trustees. For that reason, the cost estimates made in this proposal are based off the construction of the Smeal College of Business back in 2003.

Smeal gives us the ideal starting point for working through our cost estimate for the final building. The business building itself has a lot of similarities to the entrepreneurship center we are proposing. The plethora of computing equipment, conference rooms, small cafe and general openness are all aspects we want to replicate in our entrepreneurship center. The 4-story 210,000 square foot business building cost Penn State $68,000,000 dollars back in 2003 (Office of Physical Plant). The building we are recommending does not need the extravagance that is found within in Smeal. Given these numbers, we decided to scale the cost of our proposal to the cost of Smeal. The following table provides a basic outline of our costs.

Table 1:
Again, we recommend that the Board of Trustees merely use these numbers as a rough estimate for the total cost of the project. Using the construction of Smeal, we believe these numbers accurately represent the type of building discussed in our proposal.

Works Cited

Asghar, Rob. “Study: Millennials Are The True Entrepreneur Generation.” Forbes. Forbes Magazine, 11 Nov. 2014. Web. 08 Nov. 2015.

Barnett, Chance. “Top 10 Crowdfunding Sites For Fundraising.” Forbes. Forbes Magazine, n.d. Web. 21 Sept. 2015.

Barron, Eric. “Invent Penn State.” Invent Penn State: Let’s Turn Great Discoveries into a Great Economy, Together | Penn State University. The Pennsylvania State University, 8 Jan. 2015. Web. 08 Nov. 2015.

Doon, CJ. “Weebly, Penn Stater-Founded Startup, Valued At $455 Million.” Weebly, Penn Stater Founded Startup, Valued At $455 Million. Onward State, 23 Apr. 2014. Web. 08 Nov. 2015.

Kurtz, Annalyn. “Class of 2014 Faces a Tough Job Market.” CNNMoney. Cable News Network, 2015.  Web. 21 Sept. 2015.

Meyer, Ali. “Record 93,626,000 Americans Not in Labor Force; Participation Rate Hits 38-Year Low.”  CNS News. CNS News, 02 July 2015. Web. 08 Nov. 2015.

Penn State Smeal College of Business. “2013-2014 Undergraduate Employment Report.” 2013- 2014  Undergraduate Employment Report (n.d.) n. pag. Smeal College of Buisness, 2015. Web. 21 Sept. 2015.

Public Use Microdata Series. “U.S Labor Force by Generation.” Pew Research Center. N.p.: n.p., 2015.  N. pag. Print.

Raasch, Chuck. “Grim Job Prospects Could Scar Today’s College Graduates.”USATODAY.COM.  USA Today News, 19 June 2012. Web. 08 Nov. 2015.

Smeal College of Business. “Smeal College of Business.” Office of Physical Plant. The Pennsylvania  State University, n.d. Web. 09 Nov. 2015.

U.S Department of Labor. “Civilian Labor Force Participation Rate.” FRED. N.p.: Bureau of Labor  Statistics, 2013. N. pag. Print.

Wade, Sophie. “Behind the Rise of Entrepreneurship.” Fortune Behind the Rise of Entrepreneurship  Comments. Fortune Magazine, 12 June 2014. Web. 21 Sept. 2015.


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Money-back guarantee

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Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

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