The relationship between education and business creation has been studied in the international literature from different perspectives and approaches (Clark, Davis, and Harnish 1984; Lafuente and Salas 1989; Robinson and Sexton 1994; Upton, Sexton, and Moore 1995; Kolvereid and Moen 1997; Delmar and Davidsson 2000; Charney and Libecap 2000; Cowling and Taylor 2001; Levie, Brown, and Steele 2001; Lüthje and Franke 2002). Likewise, many authors mention the extraordinary increase in the quantity and quality of entrepreneurship programs in the past twenty-five years, as well as the foundation of research centers, conferences, and publications in this area responding to university initiatives and the increasing demand for these types of courses (Fayolle 1998; Kolvereid and Moen 1997; Vesper and Gartner 1997).

There is a growing consensus that in the “information society” education is one of the key factors for the emergence of new firms and their development prospects. In this context, new ventures set up by graduates are expected to play a critical role especially for the emergence of knowledge and technology-based firms. The main aim of the paper is to analyze the influence of different contexts developed and developing countries on: a) the image that students have about entrepreneurs; b) the influence of social background on the motivation to become an entrepreneur; c) the perception about what positive or negative factors affect the creation of new ventures. The countries analyzed are Argentina (San Andrés University) and Italy (Università Politecnica delle Marche). Overall there are more similarities than differences between Argentinian and Italian students in their perception of entrepreneurship and in their attitude to setting up their own firm. However the social background of the students plays a major role. Although this can be considered a preliminary study, it offers interesting indications for the design of entrepreneurship programs for university students.

In countries such as Argentina, fostering an entrepreneurial culture at the educational level could have, in the long term, a positive impact on improving the image that society has about entrepreneurs, the diffusion of role models, and teaching the necessary tools to create knowledge-based businesses. Altogether, these positives will decrease the perceived opportunity cost of being an entrepreneur.

In the context of the knowledge society new ventures founded by graduates are called to play a critical role as agents of change. This potential role is especially crucial in emergent countries such as Argentina where existing firms do not play an important role as “organizational incubators” for new entrepreneurs. By the other hand, recent research in Latin American countries has found that half of the most dynamic entrepreneurs have an university degree. These evidences have led us to formulate some questions about the process of emergence of these university-based entrepreneurs: Which are the distinctive characteristics of it to be considered by those who promote entrepreneurship in universities? What is the contribution of universities to the emergence of entrepreneurs? The results contribute to enlarge the knowledge about the entrepreneurial process in Latin America with especial focus in the more distinctive aspects differentiating the emergence of university degree founded new ventures.

Salar, S.A. was created in the 1940s as a joint venture between a diversified Argentine business group with interests in petrochemicals and a European manufacturer of water heaters to produce steel containers, but as frequently occurs in Latin America, the original objectives of the joint venture were broadened to take advantage of the foreign firm's expertise. Thus, Salar became the first company to introduce the tank water heater to the Argentine market, which had previously relied upon pilot electric heaters. As part of a global divestiture strategy, the European manufacturer sold its interest in Salar to the Argentine group, allowing the company to continue selling under the Rheem brand name. Faced with economic recession and a declining domestic market, Salar embarked upon a strategy of product diversification and geographic expansion. The company broadened its product line and began to export to less sophisticated markets in the neighboring countries of South America and in the Caribbean. Having thus gained international experience, it leaped into the far more demanding markets of Australia and the United States in the early 1990s. Salar now faced an array of strategic decisions typical of the Latin American company attempting to go global. The decision that faced a company about to export to a new market was the selection of an appropriate distribution channel. In the U.S. market, Salar has received three offers:from a small family-owned company over which it would have a strong negotiating position; from a Japanese company that saw potential in adding Rheem-Saiar to its product line; and from a leading U.S. manufacturer that, despite its size, proposed to begin with a very modest sales volume. The decision that faced a company that has achieved limited market penetration with exports is whether to move into overseas manufacturing. Salar was considering this alternative in Australia because it would enable the company to adapt its products to the needs of the local market while cutting shipping costs by move than half However, such a move was threatening to local industry and could have provoked retaliation. The Rheem subsidiary in Australia had threatened to retaliate by entering the Argentine market. Finally, a company that had established an overseas subsidiary was faced with the decision of when to "pull the plug" on a losing operation. Saiar management had to decide what to do about its Chilean subsidiary, Hometech, which was losing money as a result of low sales volume and high fixed costs. The company has received an offer from an important national distributor which would help gain volume but would mean losing control. Apart from these decisions, the case raises several issues about global strategies in Latin American companies that deserve reflection and discussion. One issue is whether the formula used by Salar, to first gain a dominant position in the domestic market, then export to less demanding neighbors, and finally to penetrate the toughest world markets, is one which makes sense and may be replicated. A second issue is whether the temporary role of the foreign partner is desirable, and if so, how such temporary arrangements might be structured so as to maximize technology transfer while benefitting both parties. (C) 2000 Elsevier Science Inc. All rights reserved.

This is an unedited research about the development and the state of education in Entrepreneurship in Argentine universities. It also presents the pioneering experience of teaching in the first endowed chair in Argentina and South America the University of San Andrés. The objectives are to show the didactic and pedagogical model, the teaching methods and describe the evolution of students among entrepreneurial attitudes. The paper concludes by discussing the future of Argentina's educational system and the impact of the Karel Steuer Chair in Entrepreneurship on the entrepreneurial spirit of students at San Andrés.