The World Business

Archive for the ‘Entrepreneurship’ Category

Depending upon the way in which we choose to view it, the strengths or weaknesses of the concept of social entrepreneurship lie in the fact that most of its applications are in the form of a hybrid between private, non-profit and public sectors. As described, one such hybrid is found in non-profit organisations with an entrepreneurial offshoot that generates revenue for the organisation’s social objectives. With greater emphasis on the private, for-profit sector, a hybrid model is emerging whereby businesses lend money and expertise to non-profits. Increasingly, this latter model is linked to public pressure for businesses to demonstrate a measure of social responsibility.

The most realistic and desirable way for any business to be socially responsible is through what is called ‘‘strategic philanthropy’’ – selected giving in areas tied directly to the company’s interests and in arenas that the company can justly claim to have knowledge and a direct stake. The use of the term clearly suggests an indirect financial return on the philanthropic investment. Indeed, the exercise of traditional philanthropy does not make good business sense as it does not provide a tangible return. In a more refined consideration of types of philanthropy today, the notion of strategic philanthropy yet emphasises that highly motivated and visionary business leaders can bring together networks of organizations in new community ventures.

Like the term ‘‘strategic philanthropy’’, ‘‘social entrepreneurship’’ is an articulation, a combination of two concepts that do not naturally fit together and yet which seeks acceptance as common sense. It is the lack of a natural fit that renders the term open to resistance and challenge. Challenges, implicit or explicit, range from different interpretations of how the terms might justifiably be joined to denial that they should be used together at all.

Language is a key component in the shift towards rationalization of the concept of social entrepreneurship. This is because discourse acceptance precedes or runs in parallel with material acceptance. Thus we see the emergence of terms that were previously restricted to the business sector, such as ‘‘social venture capital’’, ‘‘social return on investment’’, ‘‘invest’’ rather than ‘‘donate’’, ‘‘revenue streams’’ and ‘‘client groups’’ applied to the social and public sectors.

If the colonisation of the social and public sectors by the language of business is accepted, the breakdown of barriers between the sectors becomes normalised. However, the terms cited are in contrast to the distinction between entrepreneurs who create social or artistic capital rather than financial capital, with social capital referring to that which is valuable to communities.

On the other hand, opposition could arise from the close association of the term ‘‘entrepreneur’’ with the creative and destructive aspects of capitalism. Those who are concerned about the negative aspects of business will be resistant to the blurring of the boundaries between public, private and civil society suggested by social entrepreneurship with the potential for increased influence of business beyond the private sector. The non-profit sector has long been associated with the creation and maintenance of a strong civil society. Marketing of that sector then calls that association into question with concerns for the viability of an independent civil society.

Furthermore, if business has the power to choose which non-profits are to benefit materially through socially entrepreneurial partnerships, what happens to those that are not chosen and therefore are marginalised?

A parallel can be drawn between the concept of social entrepreneurship and that of sustainability because sustainability is equally open to broad interpretation. Like social entrepreneurship, sustainability can favour either the social and environmental or the economic sectors, depending upon which model is adopted. Strong sustainability favours the social and environmental over economic development, upholding the social values of a truly civil society based social entrepreneurialism. Interpretations are derived from the beliefs and experiences of individuals. Social entrepreneurs and their work should ultimately be judged by the quality of the social outcomes, and that assessment should be made independently of the private interests of those entrepreneurs.

With concepts and movements such as social entrepreneurship, environmental sustainability, and social responsibility, it is crucial that we pay close attention to the persuasive uses of the terms as well as to their practical implication. All of them are contested, value-laden labels that can be used to reference a wide variety of interests, motives, activities and outcomes.

It seems like everyone these days is talking about one thing: entrepreneurship. Either someone’s an entrepreneur or someone else is talking about a new enterprise. Just what’s so great about this whole entrepreneurship buzz anyway?

The definition

Entrepreneurship is a person (or sometimes a group) which pursues opportunities to satisfy needs and wants using uniqueness and innovation. It’s going after an idea and making it happen.

Some people think an entrepreneur is a business gambler, taking chances on an unproven business or an idea to make money. Sure, entrepreneurs take risks, but they’re calculated ones, not random investments on crazy concepts. The risks entrepreneurs choose are ones determined to have the potential for great return.

The profile

Three factors are the keys to entrepreneurship: opportunities, innovation, and growth.

A person with entrepreneurial aspirations observes environmental trends and changes and pursues unseen opportunities with all possible resources. He or she uses innovative ideas to revolutionize and transform products or services, coping with changing environments.

The entrepreneur is also focused on growth, applying continuous effort to expand their business. Success is the ultimate goal, and creative approaches, such as outsourcing some aspects of the business help to achieve those goals.

The personality

Entrepreneurship involves a desire to be bigger, sell more, and go beyond what is expected. A visionary perspective spurns ideas. Drive and determination push an entrepreneur forward.

Of course, an entrepreneur needs to take some great leaps of faith. They also need to take some incredible risks. But even the largest corporations started out small. Through the calculated strategies of entrepreneurs, small businesses became world leaders.

The landscape

Entrepreneurship happens all around us, in all four corners of the globe. The Internet, though, is the landscape that is buzzing with entrepreneurship right now. It offers new industry possibilities, for those who are motivated to take the chance.

These entrepreneurs drive today’s global business environment. Through calculated risks, they improve the world and profit from it. Stepping out of the comfort zone, they invest in development through technological advancements. They strive for greater heights, providing better products and services to consumers.

Everyone from homemakers to unemployed workers to students are striking it rich because of the opportunities the Internet offers. Many are young, dynamic individuals unafraid of risk and many more are mature people ready to make a change. Avid entrepreneurs in established businesses are realizing the potential the Internet offers, too. Anyone can seize ideas and turn visions into reality. All they have to do is take a chance.

It is proposed that the process of entrepreneurship initiation has its foundations in person, intuition, society and culture. It is much more holistic than simply an economic function and represents a composite of material and immaterial, pragmatism and idealism. The essence is the application of creative processes and the acceptance of a risk-bearing function, directed at bringing about change of both economic and social nature. Ideally, but not necessarily, the outcomes would have positive consequences. The key to initiating the process of entrepreneurship lies within the individual members of society and the degree to which a spirit of enterprise exists or can be initiated.

Culture is important in any discussion of entrepreneurship because it determines the attitudes of individuals towards the initiation of entrepreneurship. Each era produces its own models of entrepreneurship according to its specific needs of the host society, however it has been described consistently using terms such as innovative, holistic, risk taking and co-ordinating ways of behaviour. Certain cultural institutions may facilitate, or hinder, entry into entrepreneurship. Thus, it is proposed that the culture of societies and the charateristics of people living in these socities, impacted by certain innate personality traits, will influence the degree to which entrepreneurship is initiated.

It appears that there is a significant relationship between entrepreneurship and cultural specificity, combined with an intuitive response by individual members of the society, albeit part innate and part cultural conditioning. Certainly, the cultural context in which persons are rooted and socially developed plays an influencing role in shaping and making entrepreneurs, and the degree to which they consider entrepreneurial behaviour to be desirable. Cultural dimensions that are significant to the extent to which entrepreneurial behaviour is supported by a society have been identified as: communal versus individual; conformist versus divergent; and equal versus elitist.

Furthermore, the role of the family, immediate and extended, is recognised as having the potential to make a positive contribution towards entrepreneurial behaviour through the provision of inter-generational role models. Finally, the profile of an entrepreneur which emerges through the study is one who is intelligent and analytical; is an effective risk manager and networker; possesses a strong set of moral, social and business ethics; exhibits a basic trader’s instinct; and is dedicated life-long learning in its many forms.

You hear a lot of talk lately about entrepreneurship, but have you given any thought to what the term entrepreneurship means? Entrepreneurship is defined in Wikipedia as:

”…the practice of starting new organizations or revitalizing mature organizations, particularly new businesses generally in response to identified opportunities.”

Some people mistakenly believe that entrepreneurs are gamblers, since they are perceived to be risk takers. Often times entrepreneurs are driven by a need to innovate rather than a need for excitement or risk. In reality entrepreneurs take calculated risks. These calculated risks generally that have the potential for significant returns.

Opportunity, innovation, and growth are three key factors to consider. Often times an entrepreneur identifies trends and changes as opportunities before others even notice them. In order to take advantage of opportunities as they arise, entrepreneurs often need to take action with the resources that they have on hand.

Another key theme in entrepreneurship is transforming existing products through innovation. This innovation might be based upon a need to adapt an existing product to a new market. It could be based upon identifying a better way to provide value to customers by making an existing product somehow more useful or valuable to existing customers. It could be as simple as identifying a problem that is solved or mitigated with the product or service that hadn’t been considered previously.

Growth is the third key factor that characterizes entrepreneurship. It is best represented by the continual efforts of entrepreneurs to expand into new markets. This expansion could be to a new type of customer or new geographic markets, both locally and internationally. Entrepreneurs are eager to identify new techniques to help their business grow

These principles are the building blocks that many businesses were, and are, founded upon. Many of the largest corporations can trace their start to one or more entrepreneurs. These organizations often started as small enterprises by people with vision and determination. History shows us many examples of entrepreneurs who took leaps of faith and huge amounts of risk to achieve their dreams.

The internet is a great example of entrepreneurship. Literally wherever you turn, you can see the results of entrepreneurship. People from all walks of life are innovating and quietly amassing huge fortunes because they embraced their entrepreneurship. Entrepreneurs are the ones taking the risks, improving their profits, and hopefully the world overall.

Many of the technological advancements available today would not have been possible if entrepreneurs did not invest in the development of these businesses. They in essence came out of their comfort zones to develop the technologies that we enjoy today. I think you’ll agree that entrepreneurial spirit is a necessary ingredient for businesses to provide better and faster products and services to their customers and clients. This entrepreneurial spirit allows them and their organizations to reach greater heights of success. Individuals with vision and the courage to take calculated risks will help organizations innovate, grow, and ultimately succeed. Embrace your entrepreneurial spirit, you might be surprised by what you and your organization can achieve.