Evoking Ecosystems: As Nature Intended

Evoking Ecosystems: As Nature Intended

Evoking Ecosystems: As Nature Intended

Saturday, October 3, 2020, by Ayman El Tarabishy

There is essentially no framework, which we can construct, that can truly describe a “framework” for ecosystems because an ecosystem’s success is typically based on its ability to capture the least common denominators of a community, or the groups typically left out of the discussion.

In the process of becoming in this new status quo, we hear a lot of reference to creating, (re)building, and maintaining entrepreneurial ecosystems. Session two of the New Professor program elicited a need to further our discussion of not only what an ecosystem is and what it necessitates, but additionally, the parts of entrepreneurship that affect (or determine) success or lack thereof within these ecosystems.

Ecosystem, originally a biological term, describes a community or environment in which organisms (or entities) interact with each other and their physical environment, or the structure that creates the confounds and limits on that particular system. We can find ecosystems practically everywhere; nature is and consists of many ecosystems, there are ecosystems within our institutions, and we can even find ecosystems within and throughout the inner workings of the human body. There seems to be, however, one specific commonality that holds for all of these ecosystems, and that is that they do, operate, and functions better, more efficiently, and more progress when they are left alone.

As the entrepreneurial community seeks to find a way to curate these ecosystems artificially, I must question why a need is there and from where it originates. There seems to be much energy being allotted to the research and construction of a “framework,” or collection of similarities with which we can manipulate and build ecosystems worldwide. Yet, I must bring light to this particular confusion.

We are spending time and money looking to create something artificially that can occur naturally in our societies.

Is the problem truly that we do not have enough or enough well-built ecosystems, or is it instead of that our institutions and we are not ready to recognize their problematic nature? Throughout the discussion on ecosystems, Humane Entrepreneurship, and more, we hear time and time again, the need to center the entrepreneur, or “place the entrepreneur in the driver seat.” We want to intensely and deeply return the natural balance to our communities, so we speak of focusing on the human as if it is a hard thing to do. Humans focus on humans. Seemingly a simple equation, but for some reason, a much more complex formulation.

As we take so much effort to center the entrepreneur and their needs in this artificial system we have made, we must question, What is an entrepreneurial ecosystem more than the act of removing our institutions and organizations to get them out of the way of the entrepreneurs?”

I want to note that, of course, we have spent centuries building the society in which we now inhabit. However, I would like to postulate that the need for entrepreneurial ecosystems has advanced as a need to “return to our roots” and find a more natural and organic balance within the ecosystem. Similar to the havoc being placed on the Amazon by humans, the ecosystem will survive when we stop pretending that there is anything that we can do to enable entrepreneurship and empower entrepreneurs, other than give them the space to do just that.

I want to stop for a moment to remind everyone that these pieces are specifically written to make us pause. These ICSB Reflections are released for the challenge and encouragement of “questioning the system.” Let us not fall claim to an idea just because it receives much attraction; let us, instead, better understand a concept and see it as a possible solution to aid us in advancing society.

Therefore, it is here that we will “refocus” on Humane Entrepreneurship. Dr. Norris Krueger and his ecosystem gurus are urging us to do so. As these experts release their reviews on thriving and failing ecosystems and the phenomena of ecosystems at large, I cannot help but notice the “humane” in all of it. They provide a solution to help institutions, regions, and governments better understand how the human must sit first and at the forefront of all our decisions around entrepreneurship.

The New Professor’s second class ended with a view of the group’s takeaways. They were all (unsurprisingly) focused on the human. Simultaneously, person after person reiterated ways in which these organizations and institutions that need to get out of the course are made up of individuals. If we change our thinking — from the entity in which the people exist within to the people themselves, then we will be simultaneously creating solutions in two frameworks of understanding: HumEnt and that of entrepreneurial ecosystems.

In both theories and practices, two essential concepts can hold true in both our natural and artificial systems, being bottom-up and intangible. In nature, ecosystems are created by the symbiosis of microscopic living organisms working synergistically together. The masses (bottom-up) are responsible for creating and maintaining the system, while it is inexplicable energy (the intangible) that provides the conduction of an ecosystem’s seamless flow.

We can think of the intangible in an entrepreneurial ecosystem, or frankly any human ecosystem, as the culture. Culture works as a significant driving force that, although very difficult to describe, guides an ecosystem. Culture — created, accepted, and perpetuated by the people — decides the parameters of success, failure, and an ecosystem’s ability to flow seamlessly. I want to pose that this might be a missing piece in the discussion of ecosystem building. There is essentially no framework, which we can construct, that can truly describe a “framework” for ecosystems because an ecosystem’s success is typically based on its ability to capture the least common denominators of a community, or the groups typically left out of the discussion. The ability of an ecosystem to adequately engage with the women, children, and disenfranchised will change depending on each culture. Yet, it is a guiding and determining factor for the prosperity in every entrepreneurial ecosystem.

As always, I hope that this reflection will illicit much thought and discussion going forward. This is not a comprehensive review but rather a call to the greater narrative we are all taking part in. We can easily find contradictions in all theories and most practices, and therefore, it is our responsibility to find our seat in the uncertainty of the gray area.

It is here we will advance. It is here where entrepreneurship lies.

article by:

Dr. Ayman El Tarabishy,

President and CEO, ICSB and Deputy Chair of the Department of Management, GW School of Business

At the end, it is really not about the money!

At the end, it is really not about the money!

At the end, it is really not about the money!

Monday, September 28, 2020, by Andrew McDonald, Chair, Small Business Investment Committee, European Bank for Reconstruction and Development.

At the end, it is really not about the money!

Monday, September 28, 2020, by Andrew McDonald, Chair, Small Business Investment Committee, European Bank for Reconstruction and Development.

It’s’ not just about the money ……….

Across the global we continuingly hear financial commentators and academics highlighting the importance of SMEs and the role they play in various countries in employment, engines of economic growth, social development and how they account for large percentages of GDP and as such how the countries prospects for prosperity and the development of healthy market economies rest on them.

In addition, whilst access to finance is high on everyone’s list when people talk about the challenges for SMEs, which restrict their ability to develop and flourish, we must ask if it is the only aspect holding back the development of sustainable enterprises – because if it was then surely it is a simple fix (Read more…).

The Stakeholder Share: Entrepreneurship’s Return to Its Roots

The Stakeholder Share: Entrepreneurship’s Return to Its Roots

The Stakeholder Share: Entrepreneurship’s Return to Its Roots

Saturday, September 8, 2020, by Ayman El Tarabishy

The simple act of transforming our previous consideration as shareholders as the most important aspect in a corporation to integrating stakeholders as active contributors can work significantly toward establishing a culture of humane entrepreneurship.

This week, having started the New Professor Program, we have been reflecting much on the elements necessary as we build entrepreneurship that is focused on innovation for humanity and the pursuit of business opportunities for profit, society well-being, sustainability, and the integration of all people. These concepts are not new to this organization nor its members. However, as we have previously taken time to specifically examine opportunities for wealth generation, sustainable practices and cycles of growth, and humane inclusion, we have yet had a chance to discuss the importance of societal well-being. To properly portray how community well-being can be illuminated in our new and humane normal, we need to examine our understanding of stakeholders’ and shareholders’ role and relationship to an enterprise.

Humane Entrepreneurship can be thought of as the harmony of applied innovation, the pursuit of business opportunities for profit, and the sustainable well-being of society, which is for the people and by the people. It is, in essence, a humane way of treating entrepreneurship, where the well-being of each individual is paramount. This is an excellent concept, but it becomes interesting when we look to our historical roots, examining the operational environment. Returning to 1970, Nobel Prize winner Milton Friedman announced that any business who pursued a goal other than making money was “an unwitting puppet of the intellectual forces that have been undermining the basis of a free society these past decades.” His declaration was taken as religion, and for the next 40 some years, we, collectively, viewed shareholders as the only group to indeed have a moral claim on the corporation, which existed, in essence, to maximize their value, specifically, the bottom line. However, as we know, corporations, just as individuals and communities, do not exist in silos, nor do their company practices. In recent years, the evil and unprecedented harm on cities worldwide for the sake of the bottom line has become more visible thanks to innovations in technology, which allow people to see both the social successes and havoc caused by enterprises globally.

Next, we might look to Edward Freeman, an American philosopher. He, around the same time, stated, conversely, that many groups can make moral claims on the corporation because the corporation has the potential to harm or benefit these groups. Freeman’s theory can encompass a variable that Friedman forgot, which would be the stakeholders. Including the owners, corporate managers, the local community, customers, employees, suppliers, stakeholders are essential to the survival and success of the corporation as their relationship with the corporation affects them.

A little over a year ago, many of us applauded the Business Roundtable’s incredible statement, declaring “181 CEOs of American’s largest corporations overturned a 22-year-old policy statement that defined a corporation’s principal purpose as maximizing shareholder return.” A glorious moment in history and a small victory for the ICSB community. After nearly five years of attempts to bring visibility to this alternative perspective of viewing stakeholders as merit holders of an enterprise and organization, a significant collective, such as the Business Roundtable, decided to assist in welcoming in the transition to a more humane centered view of the enterprise.

This modality of transforming our previous consideration of shareholders as contributors and stakeholders as invisible to critical is a significant step in establishing a culture of humane entrepreneurship that works to heal rather than hurt. We kindly thank organizations, such as the Business Roundtable, for their action towards a better tomorrow. However, given the pressure of the COVID-19 pandemic, we must ask organizations such as this, what next? Almost a month after a lockdown in the United States in response to the COVID-19 pandemic, the Business Roundtable addressed Vice President Pence in a letter, stating that:

“We appreciate the efforts of the Trump Administration and many Governors to begin the difficult work of developing economic recovery plans. It is important to plan now for the gradual lifting of some restrictions on activity when policymakers, guided by public health officials, conclude the time is right. This work is especially important to small and medium-sized businesses — many of whom are our customers and suppliers — and for individuals and families who are bearing the brunt of the current crisis” (Business Roundtable, 2020).

These kind words are essential from an organization such as this, but we must now ask, how are you and your invested CEOs honoring stakeholders at this moment? When an organization declares the importance of stakeholders openly, they must act appropriately in their communities when pressure tightens. We must tread lightly and be aware that while we make this gallant movement back to our roots and Freeman’s emphasis on stakeholders, we do not mean to repeat history. Move to stakeholder inclusion, promoted by the lens of Humane Entrepreneurship, is not intended to enable philanthropic or socially responsible acts, nor are we promoting the re-establishment of social entrepreneurship. We are specifically and directly asking for a holistic approach that incorporates social achievements (the Sustainable Development Goals) and focuses on the Employees to accelerate and sustain solutions and increase opportunities on a local and global level.

We look forward to reports which cover how corporations involved in the Business Roundtable look to create more job opportunities and to empower their current employees, even in moments such as this. How are foundational organizations, such as this, providing an equitable policy that allows parents to successfully do their work, while feeling supported to care for their children learning from home? How can we ensure that we keep up with ecological policies that care for our local communities is necessary ways to continue our combat against climate change? How are organizations, such as this, advocating for fair and inclusive policies for micro, small, and medium-sized enterprises, and appropriate measures that ensure that these MSMEs have access to such aid? We commend your service to stakeholders, and we provide that we will stay current with how you uphold your practice of Humane Entrepreneurship at this moment.

We, your supporters, and your stakeholders are watching and waiting.

article by:

Dr. Ayman El Tarabishy,

President and CEO, ICSB and Deputy Chair of the Department of Management, GW School of Business

Small matters. How much employment is there in self- employment and in micro and small enterprises?

Small matters. How much employment is there in self- employment and in micro and small enterprises?

Small matters. How much
employment is there in self- employment and in micro and small enterprises?

Monday, September 21, 2020 by Dragan Raddic, Head of SME Unit Enterprises Department at International Labour Organization (ILO)

Small matters. How much
employment is there in self- employment and in micro and small enterprises?

Monday, September 21, 2020 by Dragan Raddic, Head of SME Unit Enterprises Department at International Labour Organization (ILO)

How relevant are micro-, small and medium-sized enterprises for the future of work? What about the self-employed?

Until recently, relatively limited worldwide empirical evidence was available to answer the above questions. Many earlier studies relied on data from formally registered firms, leaving the informal economy, which in many countries is the largest contributor to employment, out of the picture. There has been growing recognition of the role, in particular, of self-employment and micro-enterprises in driving employment, yet the evidence base is still not well developed.

Drawing on a new ILO database, ILO’s 2019 « Small Matters » report provides an up-to-date and realistic assessment of the contribution of self-employment and micro- and small enterprises (hereafter referred to as “small economic units”) to employment – both in the formal and the informal economy – across the globe.

A key finding is that, globally, the self-employed and micro- and small enterprises (hereafter referred to as “small economic units”) account for 70 per cent of total employment.

The estimates presented in the report are based on a new ILO database that draws on national household and labour force surveys (as opposed to firm-based surveys) from 99 countries in all the world regions except for North America. Because these surveys target people rather than firms, they are able to cover self-employment and employment in all types of enterprises:

  • Enterprises from all size classes: micro-enterprises (with 2 to 9 employees), small enterprises (with 10 to 49 employees) and medium-sized/large enterprises (with 50 or more employees)[1];
  • Enterprises from the informal as well as the formal sector;
  • Enterprises from agriculture, industry and services (including public services).(Read more…).
Answering key questions around informality in micro and small enterprises during the COVID-19 crisis

Answering key questions around informality in micro and small enterprises during the COVID-19 crisis

Answering key questions around informality in micro and small enterprises during the COVID-19 crisis

Sunday, September 20, 2020, by The International Labour Organization

Understanding how informal enterprises are affected by the Covid-19 crisis is of central importance for identifying effective responses and designing support strategies that can encounter the socioeconomic impacts of the global pandemic. This document provides answers to a set of questions that address, for example, how governments and other actors can effectively reach out to informal economic units, the kind of support that is needed and what might be effective ways to reduce the risk of informalization of formal jobs and economic units. It is a living document that will be updated with additional practical insights on ongoing basis.