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Inga Langaitė. Spotlight on Talent – the Driving Force of Startup Growth

January 20, 2023
Inga Langaitė. Spotlight on Talent – the Driving Force of Startup Growth

I frequently hear people discuss whether entrepreneurs should actively participate in civil society, sharing their insights with decision-makers and politicians, or whether they should hang back instead. With respect to startups, I think the answer is clear – if we can’t improve areas like education collectively, all national development strategies are bound to fail. That’s because, in such a case, we simply won’t have sufficient talent in Lithuania capable of generating high added value.

This is why I’m confident in saying that it is precisely education that most startups are putting a premium on. But how do we achieve real changes needed to foster social development? Well, first of all, loud and systematic discussions of this problem won’t suffice. We also need to thoroughly analyse our statistical data and finally make the strategically imperative decisions we’ve so far been avoiding due to their difficulty and inconvenience. 

Students repudiate exact sciences, fail to plan for the future 

For instance, how are we going to become a country with a strong high-tech sector if we don’t teach our children physics, chemistry, and IT? The journal Reitingai (Ratings) quotes the following statistics: 

1. Only 9,000 high school graduates passed the maths exam, 5,000 of them failed, and 10,000 (a third of all 12 th graders) didn’t even take it. 

2. In all of Lithuania, only 18 high school graduates received 100 points in the chemistry exam, and only 1,250 took it in the first place. 

3. The IT exam is taken by less than 10% of high school graduates. In 2022, a record 14% of them failed it (previously, the usual failure rate hovered between 3% and 8%). 

4. Lithuania has several municipalities with only 2 chemistry and 3 physics teachers each. 

5. In 2022, only 1 student enrolled in chemistry teaching studies, 2 students in physics teaching studies, and 0 students in IT teaching studies. 

Deputy Minister of Education, Science and Sport Gintautas Jakštas has stated publicly that even though high school graduates are mature, intelligent, and responsible enough to understand the importance of studying and taking responsibility for the results thereof, few of them make any long-term plans. The statement was based on surveys indicating that, right before graduating from high school, only 63% of students know the professions they’ll be pursuing, and no more than 57% have decided on the study programmes they’ll be applying for. To make matters worse, surveys conducted 6 months following graduation have shown that only 40% of students would still choose the same profession. 

These are just a few stand-out figures indicating some glaring problems. Although we do have plenty of data overall, we don’t rely on them enough when making decisions. In fact, we’re doing the exact opposite – lowering the admissions bar to attract at least some high school graduates to STEM. As they move into the workforce, however, they’re sadly not ready to generate very much value for the businesses whose growth they’re supposed to promote.

Raising the bar and increasing the number of women in IT

Are there any positives to this story? Certainly. Startup founders have noticed that Lithuanians are extremely hungry and curious, but also modest and hard-working. This is a rare combination that helps us distinguish ourselves. If we begin developing the necessary skill from early on, we can make our uniqueness shine. 

The changes needed for that to happen are already underway. For instance, beginning in 2024, students who fail to pass at least 3 state exams (including those for the Lithuanian language and maths) will no longer be able to study at institutions of higher learning even if they pay out of pocket. Moreover, funding based on study quality (e.g., assessments of graduate success in the labour market, the extent to which study programmes are internationalised, etc.) is also set to commence in the same year. Decisions have also been made to protect institutions of higher learning from losing their funding for expelling underachieving students, which will put an end to efforts to retain students at any cost. 

Consistent effort is also being made to ensure that all students, regardless of their place of residence, socio-economic status, or needs can study consistently, avoiding significant barriers or hindrances and emotional stress, as well as being duly prepared to choose a career path that suits their inclinations, and receive all the assistance they need to complete their studies. 

On an interesting note, in 2022, there were 18 universities and colleges enrolling applicants to IT study programmes, 547 of whom were women. Based on the data provided by institutions of higher learning, Adform Lithuania has found this to be 71% more than in 2021 (320).

What can we do to help Lithuania secure for itself the best education system in the world?

Will we realise our potential? Startups do and will continue to lack talent

This year will be a difficult one for startups. We are currently at a breaking point, where long- term shifts are happening away from precipitous growth at any cost, and towards profitability and sustainability. While there is still capital on the market, it’s mostly conferred upon businesses that are either already profitable or will be within a year’s time. However, Lithuanian startups have never been spoiled by attention from investors or inflated valuations. In addition, even some of the strongest ones have grown from profit – not external funding. They are now sharing their knowledge and proven solutions with others, which is making the whole ecosystem much stronger. Furthermore, since large investors are only now discovering Lithuania as a promising country to invest in – there’s certainly no shortage of potential. The question is, though, will we succeed in realising it by fostering qualified talent? 

To be sure, the education system is a complex mechanism with lots of moving parts – from kindergartens to life-long learning and re-skilling opportunities. Getting lost in the bureaucratic jungle is easy enough, but maybe we don’t need to reinvent the wheel here? Perhaps it’ll suffice to copy others’ already proven solutions? We know what the problems are, but we still lack strong teachers, dignified salaries, up-to-date learning materials, motivation to choose engineering studies, and discipline to remain in the field afterward. 

“What can we do to help Lithuania secure for itself the best education system in the world?” is a question that we ask each other in almost every board meeting, and take what actions are in our power. Although businesses can definitely help with this, structural decisions must be made at the state level. Some of them are now close to the finish line, but we’d like to wish people concerned more speed and courage in 2023. We, meanwhile, will help in every way we can because education and highly qualified talent are in everyone’s interest.

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