Co-op + entrepreneurship = Waterloo innovation

The University of Waterloo has long been renowned for entrepreneurship and innovation and for providing co-operative education (co-op) and work-integrated learning at scale with impact.

Margaret Dalziel, professor emerita and Nada Basir, professor of strategic management at Conrad School of Business and Entrepreneurship

The study also highlights the broader socioeconomic impact of high-quality universities like Waterloo, and its influence on the entrepreneurial ecosystem in the Waterloo region and Canada is undeniable. Waterloo ranks number one amongst Canadian universities for producing the most successful entrepreneurs. The success of its alumni entrepreneurs can be attributed not only to the University's inventor-owned intellectual property policy but also to the unique experiences provided by its co-op program.

Strong educational foundations

The research shows that student entrepreneurs often start companies in fields related to the research, development activities and co-op experiences they encountered at Waterloo. Whether intentional or not, they absorb insights during their studies and work — which then guide their entrepreneurial ventures in related areas.

The study highlights the importance of university quality in entrepreneurial success. Graduates from top-ranking institutions are more likely to become entrepreneurs and earn higher incomes. This is not only due to the prestige of their affiliation but also because students at leading universities access more relevant and impactful material.

At Waterloo, this exposure is magnified through the co-op program, where students gain firsthand experience in industries closely aligned with their studies.

“Co-operative and Experiential Education is shaping future-ready graduates keen to make an impact,” says Norah McRae, associate provost, Co-operative and Experiential Education. “Our students tackle global challenges with innovative approaches during their work terms, gaining problem-solving skills that drive solutions — whether through their own ventures or innovations within existing organizations.”

Jason Amri, BBA/BCS '24, participated in multiple co-op placements and is the founder of 3cycle, a social enterprise working to address the 3D printed waste problem

Entrepreneurial development

One of the key concepts explored in the study is imprinting, which refers to the lasting influence of early experiences on an individual's behaviour and decision-making.

“One of the interesting findings of the study is how short an exposure to a technological area can be to still have an impact on a student,” Basir says. “Most students in our sample were at a co-op placement for less than four months. We find an imprinting effect even in that short period of time.”

Dalziel and Basir found that the magnitude of the imprinting effect depends on the capabilities of the parties involved. For example, a student’s software skills, crucial for many ventures, significantly enhance the effect.

Their research also shows that imprints from both university and industry experiences are complementary. Instead of replacing one form of knowledge with another, students with strong capabilities can absorb multiple layers of insights from different sources. This diverse knowledge and skillset equip them to launch innovative and impactful ventures.

Co-op education sparks opportunity

Waterloo's co-op program stands out as a key driver of entrepreneurial success according to the study. Unlike structured entrepreneurship programs that may have limited effects on venture creation, co-op education at Waterloo fosters entrepreneurial development by chance rather than intention.

Students are exposed to diverse industries and technologies, often sparking unexpected and fruitful ideas. This exposure is key to identifying opportunities, as many successful entrepreneurs in the study recognized business potential before even seeing themselves as entrepreneurs.

Waterloo's co-op program offers real-world experience and networking that continues to benefit them long after graduation.

Policy and future research

Dalziel and Basir’s findings have important implications for policymakers and educators. One of the key takeaways is the importance of exposing young people to substantive knowledge-based activities.

Policymakers are encouraged to create environments where students can interact with high-quality influencers and gain exposure to cutting-edge technological advancements. Programs that focus too narrowly on measurable progress may inadvertently stifle the serendipitous discovery of entrepreneurial opportunities, which is critical for the development of successful ventures.

“The assumption has always been that co-op programs have so many benefits for students as it prepares them for the workforce, and for companies as it exposes them to new talent,” Basir says. “Our findings provide empirical evidence that co-op can also enable entrepreneurship.”

Waterloo's co-op program is central in shaping student entrepreneurs by exposing them to cutting-edge technologies and fostering a culture of innovation, making it a launch pad for their contributions to the global economic future for all.