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Humane Entrepreneurship and MSMEs in a Dynamic World

Humane Entrepreneurship and MSMEs in a Dynamic World

Sunday, August 1, 2021, by Dr. Ayman El Tarabishy

In championing people first, humane entrepreneurship inhabits a unique role in the business world as inherently human-centered. In light of the pandemic, the necessity of humane entrepreneurial practices has become more apparent than ever before. As we contended with COVID-19 head-on, many MSMEs saw governments responding swiftly in support. However, while we seek prosperity in our post-pandemic society, we must ask ourselves three essential questions: Will this government support continue? How can MSMEs recover in the aftermath of COVID-19? Finally, how can we actively support MSMEs, not only from a business standpoint but on a human level? With values of empathy, equity, and environmental protection, humane entrepreneurship provides the answers.

The journey towards humane entrepreneurship was initiated five years ago by Drs. Ayman El Tarabishy, President & CEO, ICSB, and Ki-Chan Kim, Professor of Management at The Catholic University of Korea and former ICSB president. On the opening day of ICSB’s second annual Human Entrepreneurship Conference, Professor Kim presented research that examined how humane companies retain happier employees, customers, and environmentally healthy communities than traditional business models. These “Firms of Endearment” outperformed the overall market by a nine-to-one ratio over ten years in terms of profitability and performance. This is because companies that invest in human capital as the chief source of innovation create High-Performance Work Systems (HPWS). As a result, employees experience elevated levels of engagement and creative empowerment.

Humane entrepreneurship has a simple recipe, wherein each element activates the next: 1) empathy, 2) empowerment, 3) enablement, 4) proactiveness for an opportunity, 5) risk-taking, 6) innovativeness, and 7) performance. Professor Kim argues that the first element of a successful company is a CEO with a clear mission. When a CEO works not only for profit but also for a philosophical goal, they attract like-minded employees who feel inspired to strive for positive change. As stated by author and motivational speaker Simon Sinek, “Humane entrepreneurship is to hire people who believe what you believe.” This shared philosophy in improving society serves as the backbone of any successful enterprise.

Building upon this mission, the CEO must also be empathetic, positive, and considerate. When a CEO opens discussions, encourages involvement, and supports employees in their responsibilities, they create a culture where employees arrive at work engaged both physically and mentally, motivated to accomplish their communal goal. Essentially, integrating these pillars of humane entrepreneurship creates a HPWS that produces engaged employees who are enabled to take innovative, creative risks and achieve higher excellence. Creativity is the key to a successful company and is achieved with the humane entrepreneur’s superpower: empowerment.

Ultimately, we arrive at three factors for a successful company: 1) a visionary CEO, 2) empathy and 3) empowerment and enablement. When entrepreneurs manage their employees’ experience in light of their mission, they directly affect their sales and performance to achieve the best possible outcome for their company, employees, and community. In his presentation, Professor Kim posed this question: “What is an enterprise?” Citing Colin Mayer, the former dean of Said Business School at Oxford University, we understand that “the purpose of a business is not to produce profits” and that an enterprise is “the most productive place to solve problems on the planet.” In essence, a humane company is a place that challenges the corporate status quo, and a humane entrepreneur is a person who takes action to make their vision for a better world a reality.

To learn more about the humane entrepreneurship model, watch the session below.

Author

Dr. Ayman El Tarabishy is the deputy chair and a teaching professor in the Department of Management at the George Washing University School of Business. His expertise involves entrepreneurship and the creative, innovative, and humane-focused practices existing within the field. Dr. El Tarabishy now sits as the President & CEO of the International Council for Small Business (ICSB), the oldest and largest non-profit organization across the globe devoted to advancing small business research and practices. The Council stands as a coalition of over a dozen national organizations, being represented in over eighty countries.

 

Dr. El Tarabishy is an award-winning author and teacher. In 2019, the George Washington University New Venture Competition awarded Dr. El Tarabishy the kind honor of being named the ‘Most Influential Faculty.’ Having developed the first Social Entrepreneurship, Innovation, and Creativity courses offered to MBA and undergraduate students, El Tarabishy is constantly striving to find the perfect balance between tradition and modernization in his teaching pedagogy. Currently, Dr. El Tarabishy is the sole faculty member in the GW School of Business to teach in two nationally-ranked programs.

 

The Entrepreneurial Journey Part 2 – Do You Have the Right Opportunity?

The Entrepreneurial Journey Part 2 – Do You Have the Right Opportunity?

Tuesday, June 29, 2021, by Dr. Frederick Crane

The entrepreneurial highway is riddled with the fractured bones and broken dreams of aspiring entrepreneurs who failed to mine the right opportunity. Why? Because some opportunities are simply better than others. Ultimately, you need the right opportunity and exploit it effectively or you will not achieve entrepreneurial success. 

 

There are actually three views regarding entrepreneurial opportunities. That is, opportunities can be recognized, discovered, or created. With opportunity recognition, the entrepreneur recognizes (deduces) that supply and demand are known to exist. The entrepreneur simply matches up supply and demand through an existing firm or a new firm (e.g., a franchise). When the COVID-19 pandemic hit us, you didn’t have to be a genius to recognize that there was going to be demand for facemasks given government mandates to protect the population! So many entrepreneurs jumped on that opportunity to supply masks.

 

With opportunity discovery, the entrepreneur inductively determines that either supply or demand exists (not both), and the other side has to be discovered. For example, there is demand for cures for certain illnesses but no supply, and there was a supply of personal computers (when first invented), but demand had to be discovered. Again, with the COVID-19 pandemic, pharmaceutical firms rushed to be the first to supply vaccines given that there was and is plenty of pent-up demand for such. Finally, with opportunity creation, the process used by the entrepreneur is abductive (inference), and neither supply nor demand exists in any obvious manner, and one or both may have to be created (e.g., new social media platforms). This is the concept of market creation – real newness.

 

I suggest that the right opportunity should possess the following characteristics:

 

  1. It creates significant value for customers by solving a significant problem or filling a significant unmet need for which the customer is willing to pay a premium price.
  2. It offers significant profit potential to the entrepreneur and his or her investors—enough to meet their risk/reward expectations.
  3. It represents a good fit with the capabilities of the entrepreneur and the management team—that is, you have the experience and skills to pursue it.
  4. It offers sustainability over time.
  5. It can obtain financing.

Also, the right opportunity will have validation from the intended customer. In short, the true litmus test for the right opportunity is whether or not the customer thinks it is a good idea, finds it valuable and distinctive, and would be willing and able to pay for it. Therefore, voice of customer (VOC) plays a major role in determining whether or not you are mining the right opportunity. You might think you have the right opportunity, but it is confirmation from the customer that is most important. So, you cannot sit in your room crafting a business plan. You have to get out there, in the marketplace, immerse yourself with the intended customers – and listen! Then, you will know if it is the right opportunity. And, if is it then the hard stuff begins; constructing the right business model; crafting the right brand, and executing the right go-to-market strategy. These are opics we will cover in the next parts of the entrepreneurial journey.

Author

Frederick Crane serves as a Senior Project Manager for the International Council for Small Business (ICSB).

Dr. Crane is an Executive Professor of Entrepreneurship & Innovation at the College of Business at Northeastern University; Former Editor of the Journal of the Academy of Business Education; and co-founder of Ceilidh Insights LLC – an innovation management training, intellectual property consulting
and consumer insight company. He was formerly a professor of marketing and entrepreneurship at the University of New Hampshire and a Chair and Full professor at Dalhousie University.

At Northeastern, he developed the graduate new venture creation course; the undergraduate innovation course – which is now taught campus-wide; and developed the online MBA course on innovation and enterprise growth. He also serves as the Faculty Advisor for the Private Equity and Venture Capital Club. Every semester at least one of his teams from his new venture creation course goes on to commercialize a business.

Crane, F. (2021, June 29). The Entrepreneurial Journey Part 2 –Do You Have the Right Opportunity?. The International Council for Small Business, Small Business Gazette. https://icsb.org/the-entrepreneurial-mindset/

AACSB and Entrepreneurship: How An Accreditation Association is Paving a New Path Forward

AACSB and Entrepreneurship: How An Accreditation Association is Paving a New Path Forward

By: Ayman El Tarabishy, President & CEO, ICSB

Leonardo da Vinci once famously wrote, “To develop a complete mind: Study the science of art; study the art of science. Learn how to see. Realize that everything connects to everything else.” The polymath innovator was able to see in the 16th century what many in the 21st are just now learning: nothing in this world exists in a vacuum. We are all a part of a larger community with a duty to lean on each other in times of need. Where one of us fails, we all fail. Where one of us succeeds, we all succeed. If we want to drive forward progress, we have to all work together towards a common goal.

 

 

It is precisely this concept of a common goal and the interconnectedness of everything that led the Association to Advance Collegiate Schools of Business (AACSB) to rethink, reinvent, and redesign their Business Accreditation Standards in 2020. Inspired by the motto to be a force for good in society, the team at AACSB––led by president and CEO Caryn Beck-Dudley––pulled inspiration from the world around them through this process. Amidst the coronavirus pandemic that turned the world as we knew it into something blurred and distorted, there was ample opportunity to construct new standards that would create a more precise, stronger future filled with a new generation of leaders encouraged to be the change they wish to see in the world.

 

 

At the 7th Annual California Entrepreneur Educators Conference (CEEC), Beck-Dudley opened the conference on da Vinci’s birthday with a keynote address that laid out exactly how the new standards were devised, signifying a change in how business schools would move into the future. Thinking about everything on a global scale, AACSB has accepted the responsibility of preparing the next generation of leaders to help societies grow around the globe. Whereas the old standards emphasized “hard” skills, including learning theory behind business practices, analyzing case studies, and researching data, the new standards are principles-based and outcomes-focused. In other words, they have been led by the concept of being proactive rather than reactive, finding upstream solutions to address a problem at its source, and pivoting to where a situation warrants through agility.

 

 

Keeping in the spirit of lifelong learning, AACSB redesigned the guidelines to let each business school shine in the light of their mission, visions, and values. Beck-Dudley emphasized that they needed to change the perception that the former standards were highly prescriptive. The team tackled this challenge by creating guidelines that empower entrepreneurship educators to have maximum impact on the greater good of society through creative means unique to their available resources. While deviations from the AACSB standards were discouraged in the past, that is not the case anymore. Today, ingenuity and agility are highly encouraged. Essentially, by leading with new guidelines, as opposed to strict standards, the schools have more room for creativity, innovation, and a pioneering spirit in hopes that new generations of entrepreneurs can feel supported as they learn through experience and not through theory alone. With these new standards, business schools will have more creative freedom within their programs, act with integrity based on guidelines rather than strict rules, and see the potential in and encourage entrepreneurial thinking that could change the world.

 

 

In addition to sharing the updated guidelines in her keynote, Beck-Dudley emphasized two significant behavioral changes needed for how the universities and their faculty operate. First, tying into the concept of everything in the world is inextricably linked. Business schools need to partner with other departments to solve the issues that lie before them. Suppose everyone stays solely in their respective lanes and forgets to communicate with one another. In that case, we will miss out on the essential collaboration and idea-generating results from considering a wide array of perspectives. Not only is it imperative that we share resources and ideas, but we also need to share our failures so that we can all learn from our mistakes, Beck-Dudley noted.

 

 

Furthermore, Beck-Dudley highlighted the importance of the older generations being open to change, as well. She discussed how the younger scholars in entrepreneurship are open to innovation and creative solutions. Still, it can sometimes be difficult for more established professors and researchers to do the same. In her own life, Beck-Dudley had to confront how she was resistant to change, as well. Hence, she empathizes with the reticence even while serving as proof that you can be an expert in your field and not only be open to new ways of thinking but eventually pave the way forward for future generations.

 

 

In many ways, the new AACSB Business Accreditation Standards embody the spirit of all that Humane Entrepreneurship represents. By seeing the new generation of business students and future entrepreneurs as whole human beings, by leading with empathy and other “soft” skills, we can change the way the world operates by focusing on the community as a whole. To complement this, Beck-Dudley shared feedback from test schools that first received the new standards. By being caring and genuine, with the best intentions in mind, the schools felt supported and optimistic about their futures, not to mention energized to find solutions to the challenges they faced.

 

 

By seeing the value in the entire business program, made up of unique and multifaceted beings with enormous potential, AACSB has demonstrated how important it is to give entrepreneurs the skills they need to flourish and not act as yet another limitation greatness that is human innovation. Meanwhile, the pandemic has proven that everything is connected, more than we ever thought possible before. We need to honor that and move into the future together, developing our business schools and our newest entrepreneurs and leaders accordingly. 

 

 

After all, Beck-Dudley posed the question in her keynote address, “If we’re not making a positive impact, what are we doing with our time?”

Certificate Program for Educators

We are excited to launch our new certificate program- dedicated specifically for educators. The main goal of the program is to help educators – like yourself – to successfully teach the Market Opportunity Navigator and apply it in various educational settings: from accredited courses to practitioners’ bootcamps, for students, entrepreneurs, and business managers.

UN Sustainable Development Goals: How Companies Stack Up

Environmental, social, and governance (ESG) investing witnessed a breakthrough year in 2020 with the most fund inflows on record.
Importantly, for companies that are judged according to ESG metrics, one way to track their progress is through their alignment to the UN Sustainable Development Goals (SDGs).
Established in 2012, the UN SDGs are a blueprint for creating a more sustainable future by 2030 that have been adopted by 193 countries worldwide.

The secret letters of history’s first-known businesswomen

Around 1870BC, in the city of Assur in northern Iraq, a woman called Ahaha uncovered a case of financial fraud.

Ahaha had invested in long-distance trade between Assur and the city of Kanesh in Turkey. She and other investors had pooled silver to finance a donkey caravan delivering tin and textiles to Kanesh, where the goods would be exchanged for more silver, generating a tidy profit. But Ahaha’s share of the profits seemed to have gone missing – possibly embezzled by one of her own brothers, Buzazu. So, she grabbed a reed stylus and clay tablet and scribbled a letter to another brother, Assur-mutappil, pleading for help:

Female Business Leaders, Business and Cultural Environment, and Productivity Around the World

Studies of female business leaders and economic performance are rarely conducted with worldwide observational data, and with considerations on the underlying cultural, institutional, and business environment. This paper uses worldwide, firm-level data from more than 100 countries to study how female-headed firms differ from male-headed firms in productivity level and growth, and whether the female leader performance disparity hinges on the underlying environment.

USAID Scholars Activity Offers Scholarships to 140 Public School Students this Year to Study at AUC, Egyptian Universities

AUC recently signed a Memorandum of Understanding with Egypt’s Ministry of Education and Technical Education to promote the United States Agency for International Development (USAID) Scholars Activity program in schools.

Centering Innovative Solutions for Tangible Change

We must make sure data do not freeze us. Too often, businesses and entrepreneurs become consumed with collecting and analyzing data in the hopes of crafting a “perfect” solution to the diverse set of challenges we face.

Importance of Research with Impact

There is a desperate need for accurate and impactful research that centers on justice and sustainability principles. We believe that organizations like ICSB are the blueprint for what the process of creating sustainable and impactful research will look like.

AFFILIATED CENTERS NEWS

ICSB Proposes an Audacious Plan to Save Small Businesses!

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Humane Entrepreneurship and MSMEs in a Dynamic World

Humane Entrepreneurship and MSMEs in a Dynamic World

Sunday, August 1, 2021, by Dr. Ayman El Tarabishy

In championing people first, humane entrepreneurship inhabits a unique role in the business world as inherently human-centered. In light of the pandemic, the necessity of humane entrepreneurial practices has become more apparent than ever before. As we contended with COVID-19 head-on, many MSMEs saw governments responding swiftly in support. However, while we seek prosperity in our post-pandemic society, we must ask ourselves three essential questions: Will this government support continue? How can MSMEs recover in the aftermath of COVID-19? Finally, how can we actively support MSMEs, not only from a business standpoint but on a human level? With values of empathy, equity, and environmental protection, humane entrepreneurship provides the answers.

The journey towards humane entrepreneurship was initiated five years ago by Drs. Ayman El Tarabishy, President & CEO, ICSB, and Ki-Chan Kim, Professor of Management at The Catholic University of Korea and former ICSB president. On the opening day of ICSB’s second annual Human Entrepreneurship Conference, Professor Kim presented research that examined how humane companies retain happier employees, customers, and environmentally healthy communities than traditional business models. These “Firms of Endearment” outperformed the overall market by a nine-to-one ratio over ten years in terms of profitability and performance. This is because companies that invest in human capital as the chief source of innovation create High-Performance Work Systems (HPWS). As a result, employees experience elevated levels of engagement and creative empowerment.

Humane entrepreneurship has a simple recipe, wherein each element activates the next: 1) empathy, 2) empowerment, 3) enablement, 4) proactiveness for an opportunity, 5) risk-taking, 6) innovativeness, and 7) performance. Professor Kim argues that the first element of a successful company is a CEO with a clear mission. When a CEO works not only for profit but also for a philosophical goal, they attract like-minded employees who feel inspired to strive for positive change. As stated by author and motivational speaker Simon Sinek, “Humane entrepreneurship is to hire people who believe what you believe.” This shared philosophy in improving society serves as the backbone of any successful enterprise.

Building upon this mission, the CEO must also be empathetic, positive, and considerate. When a CEO opens discussions, encourages involvement, and supports employees in their responsibilities, they create a culture where employees arrive at work engaged both physically and mentally, motivated to accomplish their communal goal. Essentially, integrating these pillars of humane entrepreneurship creates a HPWS that produces engaged employees who are enabled to take innovative, creative risks and achieve higher excellence. Creativity is the key to a successful company and is achieved with the humane entrepreneur’s superpower: empowerment.

Ultimately, we arrive at three factors for a successful company: 1) a visionary CEO, 2) empathy and 3) empowerment and enablement. When entrepreneurs manage their employees’ experience in light of their mission, they directly affect their sales and performance to achieve the best possible outcome for their company, employees, and community. In his presentation, Professor Kim posed this question: “What is an enterprise?” Citing Colin Mayer, the former dean of Said Business School at Oxford University, we understand that “the purpose of a business is not to produce profits” and that an enterprise is “the most productive place to solve problems on the planet.” In essence, a humane company is a place that challenges the corporate status quo, and a humane entrepreneur is a person who takes action to make their vision for a better world a reality.

To learn more about the humane entrepreneurship model, watch the session below.

Author

Dr. Ayman El Tarabishy is the deputy chair and a teaching professor in the Department of Management at the George Washing University School of Business. His expertise involves entrepreneurship and the creative, innovative, and humane-focused practices existing within the field. Dr. El Tarabishy now sits as the President & CEO of the International Council for Small Business (ICSB), the oldest and largest non-profit organization across the globe devoted to advancing small business research and practices. The Council stands as a coalition of over a dozen national organizations, being represented in over eighty countries.

 

Dr. El Tarabishy is an award-winning author and teacher. In 2019, the George Washington University New Venture Competition awarded Dr. El Tarabishy the kind honor of being named the ‘Most Influential Faculty.’ Having developed the first Social Entrepreneurship, Innovation, and Creativity courses offered to MBA and undergraduate students, El Tarabishy is constantly striving to find the perfect balance between tradition and modernization in his teaching pedagogy. Currently, Dr. El Tarabishy is the sole faculty member in the GW School of Business to teach in two nationally-ranked programs.

 

Environmental Sustainability and Global Finance

Environmental Sustainability and Global Finance

Tuesday, July 20, 2021, by Dr. Mariya Yesseleva-Pionka, PhD

Back in 1987, when United Nations introduced the definition of sustainability, it emphasised that sustainability is about responding to the needs of the present without undermining the ability of future generations to meet their own needs[1]. In the early 1990s, Triple Bottom Line (also known as People, Planet, Profit) was introduced by John Elkington. He advocated for business reporting, which provides information about the economic, environmental and social performance of business entities[2]. In September 2015, the General Assembly implemented the 2030 Agenda for Sustainable Development that includes 17 Sustainable Development Goals (SDGs) based on the principle of “leaving no one behind”[3]. This Agenda emphasised an all-inclusive approach to attaining sustainable development for all. According to OECD data, many countries are taking action, but progress is insufficient to achieve the goals of the 2015 Paris Agreement. The adoption of renewable energy is on the rise; nevertheless, it still represents 11% of energy supply and 27% of electricity production in the OECD[4].

 

The public disclosure of information about the social and environmental impacts of business operations has become widespread since the early 1990s, typically among large companies worldwide. The Global Reporting Initiative[5] (GRI) provides a conceptual framework and guidance for social and environmental reporting. The GRI Reporting Framework provides direction on reporting an organisation’s economic, ecological and social performance. It was created for application by businesses of any size, sector or location.

 

Climate and environmental impacts will be at the heart of global finance. Can profitability and sustainability co-exist? In answering this question, it is vital to emphasise that long-term profits will not matter if there is no planet. Overall, if we continue to underestimate the importance of environmental resources and our role in promoting sustainable behaviour, this could lead to highly detrimental outcomes for the planet. Thus, there is an immediate urgency for educating everyone concerning climate risk and their role in promoting sustainability.

 

We are already witnessing green start-ups that provide various tools that measure storm and flood risks and assess the level of pollutions created by businesses. In the financial services industries, many green FinTechs successfully combine finance and technology while promoting and embedding sustainable behaviour among customers. For instance, digital banks allow their customers to round-up their transactions to support tree planting, give cash-back for using climate-friendly business services or products, provide green loans for various solar energy projects and deliver a customised analysis of customers’ spending to emphasise their carbon emissions footprint and sustainable behaviour. Other FinTechs provide online app-based wooden credit cards with the portion of profits going to reforestation projects; introduce loyalty programs based on carbon points that can be converted into products and services with selected business partners that promote climate-friendly sustainable behaviour.

 

There is an onset of transformative generational wealth handover from baby boomers to millennials, with new business leaders becoming increasingly attentive to climate risks. Thus, they tend to choose sustainability in business operations. According to an EY study, millennial investors are almost twice as likely to invest in businesses or managed funds that target specific social or environmental goals, and 90% of them want sustainable investing as an option within their pension/superannuation plan[6]. Originally sustainable investing started in equities; however, over the years, government and private companies have been issuing various debt instruments to finance environmentally friendly projects.

 

There seems to be an assumption that carbon footprints and environmental impacts are mainly connected to large organisations. However, the MSMEs account for over 90% of all businesses worldwide. Thus, it is evident that MSMEs collectively are classified as significant polluters globally and there are increasing requirements for these enterprises to participate in and implement sustainable business practices. There is an urgency in educating entrepreneurs, MSME owner-managers and future business leaders in general, on how SDGs require changes to business finance, management and investment.

 

[1] United Nations Brundtland Commission, 1987

[2] www.hbr.org/2018/06/25-years-ago-i-coined-the-phrase-triple-bottom-line-heres-why-im-giving-up-on-it

[3] https://www.un.org/development/desa/disabilities/envision2030.html

[4] https://www.oecd.org/environment/climate-data/

[5] https://www.globalreporting.org/

[6] www.ey.com/en_au/financial-services/why-sustainable-investing-matters

Author

Dr Mariya Yesseleva-Pionka is Global Certificates Manager at ICSB, a Higher Degree by Research Supervisor at Excelsia College and Adjunct Academic at the University of Technology  Sydney, Australia. Dr Yesseleva-Pionka held teaching and senior academic management positions in Central Asia (Kazakhstan) and Australia. She specialised in general investments, personal and corporate superannuation investments while working for Westpac Banking Corporation and BT Financial Group in Australia. She was invited to join The Housing Connection, a not-for-profit organisation in Sydney, Australia as Treasurer and Board Member from November 2019. Her research interests include entrepreneurial finance, traditional and alternative ways to finance small and medium enterprises (SMEs), corporate finance, policies for the small business sector, innovation and SMEs, FinTechs and Blockchain. Dr Yesseleva-Pionka is the Associate Editor for the Journal of the International Council for Small Business (JICSB). 

The Entrepreneurial Journey Part 2 – Do You Have the Right Opportunity?

The Entrepreneurial Journey Part 2 – Do You Have the Right Opportunity?

Tuesday, June 29, 2021, by Dr. Frederick Crane

The entrepreneurial highway is riddled with the fractured bones and broken dreams of aspiring entrepreneurs who failed to mine the right opportunity. Why? Because some opportunities are simply better than others. Ultimately, you need the right opportunity and exploit it effectively or you will not achieve entrepreneurial success. 

 

There are actually three views regarding entrepreneurial opportunities. That is, opportunities can be recognized, discovered, or created. With opportunity recognition, the entrepreneur recognizes (deduces) that supply and demand are known to exist. The entrepreneur simply matches up supply and demand through an existing firm or a new firm (e.g., a franchise). When the COVID-19 pandemic hit us, you didn’t have to be a genius to recognize that there was going to be demand for facemasks given government mandates to protect the population! So many entrepreneurs jumped on that opportunity to supply masks.

 

With opportunity discovery, the entrepreneur inductively determines that either supply or demand exists (not both), and the other side has to be discovered. For example, there is demand for cures for certain illnesses but no supply, and there was a supply of personal computers (when first invented), but demand had to be discovered. Again, with the COVID-19 pandemic, pharmaceutical firms rushed to be the first to supply vaccines given that there was and is plenty of pent-up demand for such. Finally, with opportunity creation, the process used by the entrepreneur is abductive (inference), and neither supply nor demand exists in any obvious manner, and one or both may have to be created (e.g., new social media platforms). This is the concept of market creation – real newness.

 

I suggest that the right opportunity should possess the following characteristics:

 

  1. It creates significant value for customers by solving a significant problem or filling a significant unmet need for which the customer is willing to pay a premium price.
  2. It offers significant profit potential to the entrepreneur and his or her investors—enough to meet their risk/reward expectations.
  3. It represents a good fit with the capabilities of the entrepreneur and the management team—that is, you have the experience and skills to pursue it.
  4. It offers sustainability over time.
  5. It can obtain financing.

Also, the right opportunity will have validation from the intended customer. In short, the true litmus test for the right opportunity is whether or not the customer thinks it is a good idea, finds it valuable and distinctive, and would be willing and able to pay for it. Therefore, voice of customer (VOC) plays a major role in determining whether or not you are mining the right opportunity. You might think you have the right opportunity, but it is confirmation from the customer that is most important. So, you cannot sit in your room crafting a business plan. You have to get out there, in the marketplace, immerse yourself with the intended customers – and listen! Then, you will know if it is the right opportunity. And, if is it then the hard stuff begins; constructing the right business model; crafting the right brand, and executing the right go-to-market strategy. These are opics we will cover in the next parts of the entrepreneurial journey.

Author

Frederick Crane serves as a Senior Project Manager for the International Council for Small Business (ICSB).

Dr. Crane is an Executive Professor of Entrepreneurship & Innovation at the College of Business at Northeastern University; Former Editor of the Journal of the Academy of Business Education; and co-founder of Ceilidh Insights LLC – an innovation management training, intellectual property consulting
and consumer insight company. He was formerly a professor of marketing and entrepreneurship at the University of New Hampshire and a Chair and Full professor at Dalhousie University.

At Northeastern, he developed the graduate new venture creation course; the undergraduate innovation course – which is now taught campus-wide; and developed the online MBA course on innovation and enterprise growth. He also serves as the Faculty Advisor for the Private Equity and Venture Capital Club. Every semester at least one of his teams from his new venture creation course goes on to commercialize a business.

Crane, F. (2021, June 29). The Entrepreneurial Journey Part 2 –Do You Have the Right Opportunity?. The International Council for Small Business, Small Business Gazette. https://icsb.org/the-entrepreneurial-mindset/

Ethical Finance

Ethical Finance

Monday, June 21, 2021, by Dr. Mariya Yesseleva-Pionka, PhD

Climate changes have initiated many transitions and shifts across government and industry sectors to reduce the negative impact on the environment worldwide. With every new and existing business comes great responsibility for making climate-friendly decisions. To align with the United Nations Environment Programme Finance Initiative, new and existing businesses in the financial services sector must foster better conditions for forming ethical finance behaviour. The starting point is to embed achievable sustainability targets into the business models and strategic plans and introduce quantifiable approaches for measuring the impact of financing on the environment. The transparency and accountability of sustainable behaviour are of paramount importance for all businesses. 

 

Over the past years, government and private companies are issuing various debt instruments to finance environmentally friendly projects. The beginning of the Sovereign Green Bonds’ era took place in 2016 when Poland issued the inaugural Green Sovereign Bond to reduce the reliance on coal and transition to the lower-carbon targets. France became the second country in the world that issued the sovereign green bond in 2017, with many other governments following the suit. China’s first batch of Green (carbon neutral) Bonds was issued in February 2021 with the aim to reduce carbon emissions.

 

The Blue Bond market was created in 2018 when Seychelles, with assistance from the World Bank, launched USD15 million blue bonds to develop the economy while preserving the marine areas. Blue bonds represent new financial instruments for funding marine projects aimed at ocean conservation. 

 

The Transition Bonds have also been growing in popularity and were originally introduced for industry sectors labelled as heavy polluters to start the transitioning process from brown to green status. Whereas Nature Bonds have a broader purpose and aimed at making sovereign debt connected with biodiversity and carbon neutrality to achieve net-zero emissions. With the World Bank’s assistance, Pakistan is planning to offer this year the very first Nature-performance Bond as part of the climate mitigating strategy and assist with recovering from the global pandemic.

 

The demand for climate-friendly and socially responsible investments is on the rise. The Social Bonds were created to assist vulnerable groups of society in improving their lives. The first Social Impact Bond (SIB) was introduced in the United Kingdom in 2010 to reduce recidivism. It was evident that after just a few years, there was an increase in the SIBs with the US, Australia, Canada and South Korea following an example and introducing the path for other governments to follow. Also, the introduction of the very first Wildlife Bonds by the World Bank this year is marking the beginning of funding projects aimed at protecting endangered species, such as rhinos in Africa. 

 

With the myriad emerging sustainable investment options, it is essential to understand the underlying projects, sustainability targets, risks and return. COVID-19 has contributed to a further increase in sustainability-link bond investments, allowing companies to establish business-wide targets and spend proceeds from funding on pre-determined projects. Companies promise to lower their carbon emissions and, if they do not meet these targets, they will have to compensate investors above promised return. At this stage, there are numerous terms in the financial markets worldwide that describe green investment options. Given the diversity of financial markets worldwide, it is essential to introduce taxonomy when classifying green projects. 

Author

Dr Mariya Yesseleva-Pionka is Global Certificates Manager at ICSB, a Higher Degree by Research Supervisor at Excelsia College and Adjunct Academic at the University of Technology  Sydney, Australia. Dr Yesseleva-Pionka held teaching and senior academic management positions in Central Asia (Kazakhstan) and Australia. She specialised in general investments, personal and corporate superannuation investments while working for Westpac Banking Corporation and BT Financial Group in Australia. She was invited to join The Housing Connection, a not-for-profit organisation in Sydney, Australia as Treasurer and Board Member from November 2019. Her research interests include entrepreneurial finance, traditional and alternative ways to finance small and medium enterprises (SMEs), corporate finance, policies for the small business sector, innovation and SMEs, FinTechs and Blockchain. Dr Yesseleva-Pionka is the Associate Editor for the Journal of the International Council for Small Business (JICSB). 

The Entrepreneurial Journey Part 1 – Are You Ready – The Entrepreneurial Mindset

The Entrepreneurial Journey

Part 1 – Are You Ready – The Entrepreneurial Mindset

Tuesday, June 1, 2021, by Dr. Frederick Crane

Many people aspire to be an entrepreneur. But most do not really know what it takes to be a successful entrepreneur. Before you embark on the entrepreneurial journey you will need to seriously reflect on whether or not the journey is right for you and whether or not you are ready for the journey. Many experts suggest there are distinctive personal characteristics that are required to be a successful entrepreneur. Some have described this as the “entrepreneurial mindset.” There has been an age old debate as to whether an entrepreneur is born or is made. My research shows it is a bit of both – the classic nature and nurture phenomena. One thing is for sure, the entrepreneur is different from the non-entrepreneur. Less than 10 percent of our population are entrepreneurs, so they make up a unique niche within the population. So, what makes them different? And, do you have what it takes to become part of this special group of people?

 

My research shows that successful entrepreneurs share several key personal attributes that are necessary for the entrepreneurial journey. What I want you to do now is to be honest with yourself and reflect on whether you possess these key attributes and/or would be willing to acquire them? These attributes are: (1) dispositional optimism – the most important attribute – (2) persistence, (3) resilience, (4) work ethic, and (5) adaptive.

 

Dispositional optimism is a mindset that focuses on abundance not scarcity; that good things can and will happen; that one can achieve his/her objectives; and the glass is half-full and not half-empty. All successful entrepreneurs I have studied are extremely optimistic in life and in business. And, I suggest it is the most important attribute an entrepreneur can possess. In fact, it is an antecedent as to why entrepreneurs are persistent, resilient and work so hard. They did so because they believe positive outcomes can be achieved. Why would an entrepreneur work 100 hours a week to start and to grow an enterprise if they thought they would fail? Well, they don’t believe they will fail. And, contrary to belief successful entrepreneurs do not throw caution to the wind, they do not take excessive risk and they do not adhere to the fate, chance, luck or magic model of business. Successful entrepreneurs engage in calculated risk-taking using information to recognize, discover or create new business opportunities. And, entrepreneurs are adaptive. They flex and pivot given evolving conditions and situations around them. Sometimes best laid plans have to change!

 

Before you start the entrepreneurial journey you are going to have to do a head, heart and gut check – an honest check. If you get positive confirmation from all three realms of your being, then you probably ready for the entrepreneurial journey. It will be difficult and challenging but, more importantly, very rewarding and satisfying. But, this is just the beginning of your journey! In the articles that follow this one I will discuss the importance of the right opportunity, the right business model, the right brand and the right go-to-market strategy. This are all key elements that must be mastered on your own entrepreneurial journey.

Author

Frederick Crane serves as a Senior Project Manager for the International Council for Small Business (ICSB).

 

Dr. Crane is an Executive Professor of Entrepreneurship & Innovation at the College of Business at Northeastern University; Former Editor of the Journal of the Academy of Business Education; and co-founder of Ceilidh Insights LLC – an innovation management training, intellectual property consulting and consumer insight company. He was formerly a professor of marketing and entrepreneurship at the University of New Hampshire and a Chair and Full professor at Dalhousie University.

 

At Northeastern, he developed the graduate new venture creation course; the undergraduate innovation course – which is now taught campus-wide; and developed the online MBA course on innovation and enterprise growth. He also serves as the Faculty Advisor for the Private Equity and Venture Capital Club. Every semester at least one of his teams from his new venture creation course goes on to commercialize a business.

Citation of Article:

Crane, F. (2021, June 1). The Entrepreneurial Journey Part 1 – Are You Ready – The Entrepreneurial Mindset. The International Council for Small Business, Small Business Gazette. https://icsb.org/the-entrepreneurial-mindset/

Alternative Investments and Cryptocurrencies

There are numerous investment options for traditional investment classes, such as real estate, precious metals, equity investments, fixed-income securities and cash. However, over the past few years, investors worldwide have witnessed a rapidly evolving alternative finance landscape.

Re-imagine Series: Depression

Nothing in life is to be feared, it is only to be understood. Now is the time to understand more, so that we may fear less. – Marie Curie
Problem: Depression—lack of early detection leads to lost potential for individuals and society.

AACSB and Entrepreneurship: How An Accreditation Association is Paving a New Path Forward

AACSB and Entrepreneurship: How An Accreditation Association is Paving a New Path Forward

By: Ayman El Tarabishy, President & CEO, ICSB

Leonardo da Vinci once famously wrote, “To develop a complete mind: Study the science of art; study the art of science. Learn how to see. Realize that everything connects to everything else.” The polymath innovator was able to see in the 16th century what many in the 21st are just now learning: nothing in this world exists in a vacuum. We are all a part of a larger community with a duty to lean on each other in times of need. Where one of us fails, we all fail. Where one of us succeeds, we all succeed. If we want to drive forward progress, we have to all work together towards a common goal.

 

 

It is precisely this concept of a common goal and the interconnectedness of everything that led the Association to Advance Collegiate Schools of Business (AACSB) to rethink, reinvent, and redesign their Business Accreditation Standards in 2020. Inspired by the motto to be a force for good in society, the team at AACSB––led by president and CEO Caryn Beck-Dudley––pulled inspiration from the world around them through this process. Amidst the coronavirus pandemic that turned the world as we knew it into something blurred and distorted, there was ample opportunity to construct new standards that would create a more precise, stronger future filled with a new generation of leaders encouraged to be the change they wish to see in the world.

 

 

At the 7th Annual California Entrepreneur Educators Conference (CEEC), Beck-Dudley opened the conference on da Vinci’s birthday with a keynote address that laid out exactly how the new standards were devised, signifying a change in how business schools would move into the future. Thinking about everything on a global scale, AACSB has accepted the responsibility of preparing the next generation of leaders to help societies grow around the globe. Whereas the old standards emphasized “hard” skills, including learning theory behind business practices, analyzing case studies, and researching data, the new standards are principles-based and outcomes-focused. In other words, they have been led by the concept of being proactive rather than reactive, finding upstream solutions to address a problem at its source, and pivoting to where a situation warrants through agility.

 

 

Keeping in the spirit of lifelong learning, AACSB redesigned the guidelines to let each business school shine in the light of their mission, visions, and values. Beck-Dudley emphasized that they needed to change the perception that the former standards were highly prescriptive. The team tackled this challenge by creating guidelines that empower entrepreneurship educators to have maximum impact on the greater good of society through creative means unique to their available resources. While deviations from the AACSB standards were discouraged in the past, that is not the case anymore. Today, ingenuity and agility are highly encouraged. Essentially, by leading with new guidelines, as opposed to strict standards, the schools have more room for creativity, innovation, and a pioneering spirit in hopes that new generations of entrepreneurs can feel supported as they learn through experience and not through theory alone. With these new standards, business schools will have more creative freedom within their programs, act with integrity based on guidelines rather than strict rules, and see the potential in and encourage entrepreneurial thinking that could change the world.

 

 

In addition to sharing the updated guidelines in her keynote, Beck-Dudley emphasized two significant behavioral changes needed for how the universities and their faculty operate. First, tying into the concept of everything in the world is inextricably linked. Business schools need to partner with other departments to solve the issues that lie before them. Suppose everyone stays solely in their respective lanes and forgets to communicate with one another. In that case, we will miss out on the essential collaboration and idea-generating results from considering a wide array of perspectives. Not only is it imperative that we share resources and ideas, but we also need to share our failures so that we can all learn from our mistakes, Beck-Dudley noted.

 

 

Furthermore, Beck-Dudley highlighted the importance of the older generations being open to change, as well. She discussed how the younger scholars in entrepreneurship are open to innovation and creative solutions. Still, it can sometimes be difficult for more established professors and researchers to do the same. In her own life, Beck-Dudley had to confront how she was resistant to change, as well. Hence, she empathizes with the reticence even while serving as proof that you can be an expert in your field and not only be open to new ways of thinking but eventually pave the way forward for future generations.

 

 

In many ways, the new AACSB Business Accreditation Standards embody the spirit of all that Humane Entrepreneurship represents. By seeing the new generation of business students and future entrepreneurs as whole human beings, by leading with empathy and other “soft” skills, we can change the way the world operates by focusing on the community as a whole. To complement this, Beck-Dudley shared feedback from test schools that first received the new standards. By being caring and genuine, with the best intentions in mind, the schools felt supported and optimistic about their futures, not to mention energized to find solutions to the challenges they faced.

 

 

By seeing the value in the entire business program, made up of unique and multifaceted beings with enormous potential, AACSB has demonstrated how important it is to give entrepreneurs the skills they need to flourish and not act as yet another limitation greatness that is human innovation. Meanwhile, the pandemic has proven that everything is connected, more than we ever thought possible before. We need to honor that and move into the future together, developing our business schools and our newest entrepreneurs and leaders accordingly. 

 

 

After all, Beck-Dudley posed the question in her keynote address, “If we’re not making a positive impact, what are we doing with our time?”

Certificate Program for Educators

We are excited to launch our new certificate program- dedicated specifically for educators. The main goal of the program is to help educators – like yourself – to successfully teach the Market Opportunity Navigator and apply it in various educational settings: from accredited courses to practitioners’ bootcamps, for students, entrepreneurs, and business managers.

The Crucial Elements of the Financial Decision-Making Process

The reality is that every business venture can, at some point, be exposed to financial instability.  In the case of MSMEs, lack of sufficient and timely access to finance is typically a leading reason for business failures. The consequences of becoming illiquid can have a detrimental effect on business operations, forcing them to declare insolvency.

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