Pre-seed grant as an enabler of learning

Abstract

PurposeThe paper focuses on how student entrepreneurs learn from the process of applying for low-threshold seed capital grants of about €2500Design/methodology/approachAn in-depth inductive study was conducted on the seed capital grant initiative TrønderEnergi–Bidraget (TEB). The research design was based on the Zaltman metaphor elicitation technique (ZMET) to capture the interviewees' perceptions about TEB. From the interviews, 596 codes were identified and grouped into 54 categories. The results are illustrated in a consensus map.FindingsTEB is an enabler of student venture creation processes through both the money awarded and activities fostering learning and development. Learning by doing is visible through two processes: 1) repeated writing of applications and 2) “forced” reflective thinking through the steps in the application process. The iterativeness of these processes due to repeated applications to the low threshold initiative is important for learning.Practical implicationsThe authors recommend that university managers and policymakers offer seed funding to student entrepreneurs to ensure that the offering is a low threshold. A low threshold is decisive for generating a positive learning outcome from the application process. The seed funding initiatives should require students to put time and energy into all the integrated processes to make value out of the iterativeness of the processes.Originality/valueThis paper extends the discussion on the additionality of receiving grants by focusing on the process of applying for a grant. This research contributes to the student entrepreneurship literature by suggesting that the design of the application process and forced reflections are important for learning, as well as specifying the antecedents for student motivation for continued entrepreneurial activity in the application process.