Education

How Universities Work with the "Startup as a Diploma" Program

How Universities Work with the "Startup as a Diploma" Program

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Since 2017, Russian universities have been actively implementing the "Startup as a Diploma" format. This approach gives students the opportunity to defend not a traditional thesis, but a real project in the form of a functioning technology business. This format has begun to develop most actively at universities offering educational programs in entrepreneurship. This shift to practical training contributes not only to the development of entrepreneurial skills in students, but also to the creation of innovative solutions that can be commercialized.

Master's programs in technological entrepreneurship are not the only direction in this area. Since 2021, the "Startup as a Diploma" project, as part of the national "Digital Economy" program, has covered 25 regions, integrating startup culture into the higher education system. In 2022, the Russian Ministry of Education and Science plans to create startup studios at universities across the country. This will allow students not only to develop their business ideas but also to take a year off from school to implement their projects. Such initiatives promote the development of entrepreneurial skills among young people and create an innovative ecosystem in the educational sector.

The conference "Startup as a Diploma: Digital Tools and Methodology" discussed the specifics of integrating startups into the educational process at universities. The event was organized by the NTI market working group EduNet in collaboration with the online youth project accelerator PRE.INC. Conference participants examined relevant digital tools and methodologies that facilitate the integration of startups into curricula, opening up new horizons for students and educational institutions.

What is important in the first steps: the experience of TSTU

Natalia Orlova, Head of the Educational Programs Department at Tambov State Technical University and a leading expert of the EduNet working group, shared her university's experience. Tambov State Technical University began participating in the program in 2020. By the end of the academic year, three student startup projects had successfully defended their theses, demonstrating the students' high level of preparation and innovative approach. TSTU is actively developing educational initiatives aimed at supporting startups and integrating practical skills into the educational process.

Although TSTU had not previously participated in the "Startup as a Diploma" program, this does not mean that student entrepreneurship was not developing at the university. In fact, by 2020, the university already had a business incubator that actively supported students in implementing their startups. As part of educational programs focused on entrepreneurship, students had the opportunity to work on their projects and present them in their theses. However, the question arises of how to extend this successful experience to specialties where curricula do not include time for students to work on business projects.

According to Orlova, TSTU has decided to implement project-based learning. During the academic year, the university joined two project-based learning intensives organized by University 20.35: in the fall of 2020 and the spring of 2021. Student participation in these intensive courses was optional. Project-based learning provides a unique opportunity for students to develop practical skills and apply theoretical knowledge to real-world projects, thereby preparing them for future professional careers. University 20.35's methodology and platform facilitated mentor training and the launch of student teams. Students had the opportunity to propose their own projects or select relevant tasks from partner companies and the university itself, including the development of digital educational tools. To integrate the most successful projects into the "Startup as a Diploma" program, TSTU has developed an effective approach that maximizes the potential of student initiatives and facilitates their implementation within the educational process. Only team members whose projects were selected in the university-wide competition mid-academic year are eligible to present their startups. There, they are evaluated not only by university faculty but also by representatives of industrial partners. Incidentally, one of the three TSTU projects selected for this year's "Startup as a Diploma" program attracted its first investment as a result of the competition.

  • A startup submitted for defense at Tambov State Technical University must be a team project with a technological or social component and implementation potential. By the defense, you must have a product prototype, a well-developed business model solution, and also find a potential or actual investor (optionally, participate in an acceleration program).
  • Working on a startup differs significantly from writing a theoretical thesis, but the defense process at TSTU, as Natalia Orlova explained, is generally similar for all students. The main difference is that before defending the individual sections of the thesis, the startup team gives a joint presentation of its project. For interdisciplinary teams consisting of students from different faculties, this presentation is postponed to the pre-defense, as the state examination commissions (SEC) differ. Thus, the process of protecting startups is essentially the same as protecting their classmates.

    Madhourse / Shutterstock

    At the first stage of the TSTU project, a significant problem arose related to the motivation of both students and teachers, in addition to difficulties with the SEC. Experience has shown that careful selection of participants is necessary—not all students have the necessary entrepreneurial skills, and not all faculty are interested in the additional workload associated with project-based learning. It is also important to provide salary supplements for staff involved in the project to encourage their active participation and engagement.

    Managing the program proved challenging. A variety of tools were used for effective communication, including collaboration services such as Trello and Miro. Additionally, students and mentors utilized various messaging apps, as well as the university's learning management system (LMS). This approach facilitated multifaceted collaboration, but also created additional challenges in organizing and coordinating processes.

    As the organizer, I lack a single digital platform that could consolidate all aspects of our activities in one place. This would eliminate the need to collect information from various services such as Moodle. Having such a platform would significantly simplify the organization process and make it more efficient.

    Starting next academic year, the "Startup as a Diploma" program will be available to students in all fields of study at TSTU. The university intends to strengthen the business component of the program, including collaboration with partners to organize entrepreneurial internships at various companies. It is also planned to launch university pre-accelerators, where student projects can prepare for participation in specialized acceleration programs. This will allow students not only to gain practical skills but also to increase their chances of successfully implementing their ideas in real business.

    Conclusions after several years of work: the experience of FEFU

    Far Eastern Federal University (FEFU) became a pioneer in launching the "Startup as a Diploma" program in 2017. Margarita Ibragimova, Head of the FEFU Russkiy Technopark, shared the achievements and results of this unique initiative with colleagues. The program aims to support student startups and integrate them into the educational process, thereby fostering entrepreneurial skills in young people. Project-based activities have been a key element of the educational process at Far Eastern Federal University for many years. The development of the university's entrepreneurial ecosystem is aimed at ensuring that student projects have the potential to become successful startups. To achieve this goal, educational events with business partners are organized, as well as regional and federal competitions that promote the development of students' skills and competencies in business and entrepreneurship. In the 2020–2021 academic year, the university implemented its own educational program, "Far Eastern Start," for the first time, which included a project competition at the regional level. The program consisted of two main modules: idea generation and acceleration. A key feature of this project was that the university independently implemented virtually all stages of the program, engaging only trackers—mentors with entrepreneurial experience, a skill often lacking among faculty. Graduates who successfully completed the "Startup as a Diploma" program were selected from among the Far Eastern Start participants. This demonstrates the high level of preparation and practical focus of this educational initiative, which contributes to the development of startups in the region. The selection criteria for student projects to be defended at Far Eastern Federal University are quite strict. Projects must demonstrate a high degree of originality, relevance, and scientific value. Furthermore, important aspects include relevance to the curriculum, the quality of the materials presented, and the level of student preparation. Selected projects have a chance to successfully defend their thesis and receive recommendations for further development.

    • A project with a prototype or minimum viable product (MVP) that is operational at the time of graduation may submit its thesis as a startup.
    • The team must confirm that it has secured funding—this could be grants, funds from an industrial partner, or the startup's own revenue. The latter option is only valid if the startup is a registered legal entity with its own bank account. Transfers to personal cards are not considered revenue.
    • The final criterion is scalability potential. That is, development commissioned by one specific enterprise, which can never be implemented elsewhere, is not suitable.
    Monkey Business Images / Shutterstock

    Overall, 23 graduates have completed their defense with the startup Far Eastern Federal University (FEFU). The number of program participants increases each year, and 16 students defended their theses in 2021. The university isn't aiming for a mass program, as Ibragimova noted. The main goal is to attract only the most talented and proactive students to technology entrepreneurship. This allows for the formation of a highly qualified team capable of implementing innovative ideas and promoting startups in the market.

    Less than half of the student ideas submitted to the program are selected. The final selection stage takes place six weeks before the defense, allowing those unprepared to present their startup to rework their thesis into a traditional format. The remaining candidates receive final confirmation of eligibility for the defense. This approach ensures high-quality projects and facilitates the successful implementation of ideas in the future.

    Startup projects are typically initiated by students in their fourth year. It was hypothesized that students could begin participating in idea generation and startup implementation from their first year. However, in practice, such projects most often arise at the beginning of their fourth year, when students begin to think about their thesis. This is especially true for less complex and less science-intensive projects, as Margarita Ibragimova notes.

    The program's implementation at the Far Eastern Federal University faces a number of challenges, largely due to the need to meet the Ministry of Education's requirements for the preparation and defense of theses. For example, the selection of chairpersons of the State Examination Commission (SEC) must be completed by the beginning of the academic year, but at this time, it is not yet known which students will choose to defend their theses as a startup. This creates additional difficulties in organizing the process and requires a more flexible approach to planning.

    How to "Sell" Entrepreneurship to Students: The SFedU Experience

    At Southern Federal University, graduates now have the opportunity to defend their theses in a new format. Stanislav Trufanov, head of the SBS Accelerator and associate professor at SFedU's "Captains" Faculty of Business, shared his approach to engaging students in project-based activities and entrepreneurship. The university emphasizes practical experience, which allows students to develop the skills necessary for a successful career. This approach fosters entrepreneurial thinking and prepares graduates for the challenges of the modern market.

    Based on his experience participating in University 20.35 intensive courses and university acceleration programs, Trufanov concluded that student engagement must be ensured at all stages. It's not safe to assume that participants who join at the beginning of the program will remain until its completion. At each stage, there is inevitably a drop-off in participants, making cessation of dialogue with them a serious mistake. Maintaining communication and actively engaging students throughout the program helps increase their interest and, consequently, the success of the project.

    Stanislav Trufanov emphasizes the importance of a professional approach to business, comparing it to the work of a commercial organization. He notes that when selling services, it is essential to pay attention to the quality of the development. Effective advertising should be the foundation of success, and that is why every detail is crucial. This approach requires careful preparation and strategic thinking to stand out in the marketplace and attract clients.

    Specific recommendations based on the experience of Southern Federal University include the following aspects. First and foremost, it is important to consider current trends in the educational process and adapt teaching methods to modern requirements. It is essential to actively introduce innovative technologies into the educational process, which will increase student engagement and improve the quality of education.

    It is also recommended to develop interdisciplinary approaches, which contribute to the development of a broader outlook in students and their ability to think critically. It is important to focus on the practical application of theoretical knowledge by organizing internships and projects that will help students gain real-world experience in their chosen professional field.

    Furthermore, it is worth emphasizing an individual approach to each student, which will take into account their needs and interests and promote the development of their strengths. It is recommended to regularly analyze learning outcomes and make necessary adjustments to curricula based on the data obtained.

    Thus, applying these recommendations can significantly improve the effectiveness of the educational process and prepare students for a successful career.

    • Involve students in the work: they want to be involved and will help you find a common language with the audience.
    • Use recognizable emotional images, relevant memes, simple one-click surveys, and calls to action in social media and project newsletters.
    • Demonstrate the importance of the program's goals: how it will help students create value for society through their work and realize their potential.
    • Communicate with students and collect feedback both individually and broadly. For example, surveys at SFedU found that students value participating in hackathons and gaining access to new courses and knowledge, and they also enjoy receiving gifts with event paraphernalia. But they generally don't care whether the event is in person.
    • Use engaging formats: hold TED-style conferences, gamify program elements, and encourage peer-to-peer collaboration.
    • Give students the opportunity to interact with experts. SFU uses "expert tubes"—a format for startups to meet with professional entrepreneurs for expert project evaluation. Each project team is given a limited amount of time, for example, 15 minutes, to talk to each expert.
    Jono Erasmus / Shutterstock

    A View from Parties: There is no space for sharing experiences.

    Despite the "Startup as a Diploma" program's entry into the federal system, uniform standards for its implementation have not yet been developed. This opinion was expressed by conference organizers from the PRE.INC accelerator. Pavel Avanyan, co-founder of the accelerator and leader of the EduNet 2035 working group, noted that universities participating in the program lack a common understanding of the "startup as a diploma" concept. The need to standardize approaches to this initiative is becoming increasingly urgent, as it could significantly impact the quality of the educational process and students' preparation for real market conditions.

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    At conferences, participants often ask questions about our definition of a startup and what criteria we consider fundamental. This highlights the lack of clear standards and fields for exchanging experience in this field. It is important to create a platform for sharing knowledge and best practices to simplify the process of understanding and classifying startups.

    A study by the PRE.INC program, based on expert interviews with the heads of 48 universities that already accept startups for defense, yielded several significant findings. Among the research results, key aspects related to the effectiveness of integrating startups into educational processes and their impact on the development of entrepreneurial culture at universities can be highlighted. These data emphasize the importance of integrating practical projects into the educational process, which can contribute to improving the quality of education and preparing students for real market challenges.

    • There are no clear requirements for the startup thesis defense program. There is no formalized set of processes or methodology that could be scaled up. Each university decides for itself which internal documents to adopt and how to integrate this format into the educational process. Some regulations may even differ within the same university across different faculties. At many universities, the "Startup as a Thesis" program operates as an individual track for senior students—due to unstructured paperwork, each participant is treated as a separate project.
    • The program almost always requires two defenses. The startup itself is defended separately, and the thesis written about it is defended separately. According to the study, the only exception to this rule so far is FEFU.
    • The program lacks competent staff within the universities. This affects both program directors and mentors, and leads to students' projects not continuing after graduation. Faculty simply don't know where to direct them, and it is not always possible to attract mentors with entrepreneurial experience from the real business environment.
    • Faculty sometimes resist innovations and sabotage the program. This happens when they are very far removed from the acceleration processes.
    • Students are often unmotivated to participate in the program. Sometimes they are deterred by the fact that it focuses specifically on technological entrepreneurship—they think they must necessarily participate with some complex invention.

    How do individual universities address these issues? According to Pavel Avanyan, there are two extremes. One is that some institutions strive for complete autonomy, ignoring the requirements and standards established by the state. The second extreme is excessive dependence on external sources of funding and control, which can negatively impact the educational process. Every higher education institution must find a balance between independence and compliance to ensure high-quality education and prepare students for today's challenges. Universities without extensive experience in developing youth entrepreneurship tend to rely entirely on external infrastructure—paid employee development programs, regional and federal competitions. Those with their own entrepreneurial ecosystems tend to isolate themselves and develop their own approaches, courses, and platforms, bringing in outside experts only on a case-by-case basis. These are typically the "leading performers" who launched their programs in 2017–2018. Both approaches have their limitations. In the first case, the emphasis on external programs and competitions leads to the university underdeveloping its internal expertise. Students and staff actively participate in events and achieve the targets of other organizations, but changes in the internal environment are slow. This could negatively impact the quality of education and the university's innovative development, as resources are directed toward fulfilling external requirements rather than developing its own strategies and initiatives.

    In the second case, the university faces scaling limitations: it needs to expand its student and project pipeline, but the university no longer has sufficient human resources to effectively manage them.

    Avanyan and his team propose a solution: creating platforms for sharing experiences among program participants and launching additional courses for teacher retraining. These platforms could be organized, for example, within the EduNet community, which would improve the quality of education and professional development of teachers. The creation of such initiatives will contribute to the development of the educational process and the improvement of teachers' skills, which, in turn, will have a positive impact on student learning.

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