The United Nations Micro, Small, and Medium-sized Enterprises (MSMEs) Day is an annual event celebrated on June 27th. The day was created to recognize MSMEs’ critical role in driving economic growth and creating jobs worldwide. In addition, it is an opportunity to raise awareness about the challenges MSMEs face and encourage governments, policymakers, and stakeholders to take action to support them.

MSMEs are the backbone of many economies, providing employment and contributing to GDP. However, they often face significant challenges like limited finance, markets, and technology access. Therefore, supporting MSMEs is crucial to creating a more inclusive and sustainable global economy.

In collaboration with Argentina, the International Council for Small Business (ICSB) created the UN MSMEs Day. In 2017, the ICSB proposed the idea of a dedicated day to recognize the contribution of MSMEs and the challenges they face. The UN General Assembly adopted the proposal in April 2017, and since then, the day has been celebrated annually on June 27th. Dr. Ayman ElTarabishy, President & CEO of ICSB and Deputy Chair of the Department of Management at the George Washington University School of Business proposed the idea.

ICSB continues to play a crucial role in promoting policies and initiatives that support MSMEs. As a global organization dedicated to advancing entrepreneurship and small business, the ICSB works closely with governments, academia, and industry to identify and address the needs of MSMEs. Through its research, advocacy, and education efforts, the ICSB is helping to create a more supportive environment for MSMEs worldwide.

The UN MSMEs Day is a significant opportunity to highlight the challenges that MSMEs face and call attention to the need for policies and programs that support their growth and development. Here are some examples of initiatives from around the world that are working to support MSMEs:

South Africa’s National Small Business Act: The South African government has implemented various policies and programs to support MSMEs, including the National Small Business Act, which aims to create a supportive regulatory environment for small businesses. The Act provides for establishing a Small Business Council, which advises the government on policies and initiatives to support small businesses.

India’s Startup India program: In 2016, the Indian government launched the Startup India program to promote entrepreneurship and innovation. The program offers a range of incentives and support, including tax breaks, funding, and mentorship, to help startups and MSMEs grow and succeed.

Germany’s Mittelstand: Germany’s “Mittelstand” refers to the country’s network of small and medium-sized enterprises, which are the backbone of the country’s economy. The German government has implemented various policies to support the Mittelstand, including access to finance, education, training, and research and innovation support.

United States Small Business Administration (SBA): The SBA is a US government agency that supports small businesses through loans, training, and counseling services. The SBA also advocates for small businesses at the national level, ensuring that policies and regulations support small business growth and development.

These are just a few examples of the many initiatives and programs worldwide that are working to support MSMEs. The UN MSMEs Day provides a valuable opportunity to showcase these initiatives and to encourage governments and stakeholders to do more to help small businesses.

South Korea’s economic growth since the 1960s has been remarkable, transforming from a low-income agrarian society to a thriving, high-income industrialized economy. Research has shown that government policies played a crucial role in this transformation, mainly through strategic investments in physical and human capital and export promotion strategies. In addition, a focus on technological research and development helped to create a competitive advantage in the export market and cultivate a highly educated workforce.

Entrepreneurship has a complex history in South Korea, with cultural values and traditions significantly shaping the country’s entrepreneurial landscape. Confucianism, a religion and philosophy emphasizing education, hard work, and community loyalty, has been a driving force behind South Korea’s cultural value system and has influenced its society for generations. Despite this, there has been relatively little research on the connection between cultural context and entrepreneurship in South Korea.

However, a new academic paper to be published in July 2023 by the International Council for Small Business (ICSB) seeks to address this gap in our understanding. The paper will explore the historical evolution of Korean entrepreneurship, focusing on the role of Jo Shik, a renowned Confucian scholar during the Joseon dynasty, and the city of Jinju in South Korea. The authors argue that these factors were instrumental in shaping the development of Korean entrepreneurship and that understanding their influence is crucial for understanding the country’s entrepreneurial landscape today. 

This paper will be the first academic publication on the history of Korean entrepreneurship in Confucian culture to be published in a Western academic journal. It promises to shed new light on this fascinating topic.

Evans, P., & Rauch, J. (1999). Bureaucracy and growth: A cross-national analysis of the effects of “Weberian” state structures on economic growth. American Sociological Review, 64(5), 748-765.

Rhee, J., Park, T., & Lee, D. H. (2010). Drivers of innovativeness and performance for innovative SMEs in South Korea: Mediation of learning orientation. Technovation, 30(1), 65-75. https://doi.org/10.1016/j.technovation.2009.04.008.

Artificial Intelligence (AI) has revolutionized how we learn and access information. However, it is crucial to create a supportive learning environment where students feel comfortable asking questions and seeking guidance on how to use AI-powered tools effectively. Faculty should support students using AI through the Socratic method and video-based learning.

The Socratic method is a teaching method that encourages critical thinking and active engagement. The technique involves asking questions to stimulate students’ thinking and help them develop their ideas. In a Socratic classroom, the teacher guides the discussion and encourages students to explore ideas and challenge assumptions.

Using ChatGPT as an example, a teacher can use the Socratic method to engage students in a discussion about the information generated by the tool. For instance, a teacher could ask the students to develop a prompt and then tell ChatGPT to create a response. Afterward, the teacher could ask the students to analyze the response and evaluate its accuracy, reliability, and relevance. The teacher could then ask follow-up questions to help students understand the context and meaning of the answer.

Video-based learning, on the other hand, leverages multimedia content to enhance the learning experience. Videos can supplement lectures and give students a more engaging and interactive learning experience. Teachers can use videos to explain complex concepts, provide real-world examples, and offer visual aids that support learning.

It is common for students to feel apprehensive about using AI-powered tools such as ChatGPT, especially when they are unsure about how to use them correctly. However, instead of punishing students for using these tools, educators should teach them how to use them correctly and ethically. In addition, students should learn the importance of referencing and citing sources using AI-generated content. By doing so, we can help students develop critical thinking skills and encourage them to engage with technology responsibly and ethically.

In conclusion, AI is a powerful tool that has the potential to transform the way we learn and access information. Faculty should support students using AI through the Socratic method and video-based learning. The Socratic method can encourage critical thinking and active engagement, while video-based learning can provide students with a more engaging and interactive learning experience. By teaching students how to use AI-powered tools such as ChatGPT correctly and ethically, we can help them develop critical thinking skills and use technology to enhance their learning and growth.

by: Ayman ElTarabishy, President & CEO, ICSB
Deputy Chair, Department of Management, GWSB

Artificial intelligence (AI) is changing the landscape of small businesses by offering new solutions to long-standing problems. However, while AI can potentially increase efficiency and productivity, it also comes with challenges. 

Pros of AI for Small Businesses

Increased Efficiency

One of the primary benefits of AI is that it can automate routine tasks, freeing employees to focus on more complex and creative tasks. For example, chatbots can handle customer service inquiries, reducing the workload of customer service representatives. Similarly, automated inventory management systems can track stock levels and reorder products when necessary, reducing the need for manual input.

Improved Customer Service

AI-powered chatbots and virtual assistants can provide instant and personalized customer support 24/7. This can improve customer satisfaction and loyalty, as customers feel heard and valued. Additionally, AI can analyze customer data and provide insights into customer preferences and behaviors, helping businesses tailor their products and services to meet their customers’ needs.

Enhanced Decision-Making

AI algorithms can process vast amounts of data quickly and accurately, providing businesses with insights that would be impossible to uncover manually. This can help companies to make data-driven decisions that are more informed and accurate, leading to increased profitability and competitiveness.

Cost Savings

AI can help small businesses reduce labor costs by automating routine tasks and reducing the need for manual labor. Additionally, AI-powered inventory management systems can optimize stock levels, reducing the amount of capital in inventory. This can result in significant cost savings over time.

Cons of AI for Small Businesses

High Initial Investment

AI requires a significant initial investment, including hardware, software, and employee training. As a result, small businesses with limited budgets may find it challenging to justify the expense of implementing AI technology.

Lack of Expertise

AI technology is complex, and many small businesses lack the in-house expertise to implement and manage it effectively. This may require firms to hire outside experts, increasing the cost of implementing AI.

Data Security Concerns

AI relies on data to function effectively, but this data can be vulnerable to cyber-attacks and other security breaches. In addition, small businesses may not have the resources to implement robust security measures, making them more susceptible to data breaches.

Ethical Concerns

As AI becomes more advanced, there is a growing concern about its impact on society. For example, AI algorithms can perpetuate bias and discrimination if incorrectly designed and implemented. Therefore, small businesses must be aware of these ethical concerns and ensure their AI systems are designed and implemented ethically and responsibly.

Conclusion

AI has the potential to revolutionize small businesses, offering new solutions to long-standing problems. While challenges are indeed associated with implementing AI, the benefits are significant. Small companies can leverage AI to increase efficiency, improve customer service, enhance decision-making, and save costs. First, however, small businesses need to be aware of the potential drawbacks of AI, including the high initial investment, lack of expertise, data security concerns, and ethical concerns. By understanding these pros and cons, small businesses can make informed decisions about whether and how to implement AI technology.