MESSAGES FROM T20 TOKYO SUMMIT 2019: CHALLENGES & PROPOSALS FOR SME POLICIES IN G20 COUNTRIES

MESSAGES FROM T20 TOKYO SUMMIT 2019: CHALLENGES & PROPOSALS FOR SME POLICIES IN G20 COUNTRIES

MESSAGES FROM T20 TOKYO SUMMIT 2019: CHALLENGES & PROPOSALS FOR SME POLICIES IN G20 COUNTRIES

Monday, February, 3, 2020

MESSAGES FROM T20 TOKYO SUMMIT 2019: CHALLENGES & PROPOSALS FOR SME POLICIES IN G20 COUNTRIES

Monday, February, 3, 2020

How can we overcome the many challenges that come with creating new SMEs?

SMEs have a dominant share in the number of firms and employment in all G20 countries, and so can play an important role in economic development and job creation in each country. In Japan, for example, SMEs (firms with either less than 300 employees or 300 million yen in capital in general) account for 99.7% of firms, employing approximately 70% of the workforce.
 
In the manufacturing sector, they produce about a half of value added. The legal or statistical definitions of SMEs differ across countries and also across sectors. Moreover, SMEs are quite heterogeneous even within a single country. Therefore, it is difficult and even no use to propose one-fits-all policy proposals for all types of SMEs in each country.
 

Nevertheless, we selected some major issues that may be common challenges for SMEs in the G20 countries and proposed some policy measures that may help SMEs to play their roles appropriately in the economy (Read more…).

Remembering the “Father of ‘disruptive innovation'” Dr. Clayton Christensen

Remembering the “Father of ‘disruptive innovation'” Dr. Clayton Christensen

Remembering the “Father of ‘disruptive innovation'” Dr. Clayton Christensen

Monday, January, 27, 2020

Remembering the “Father of ‘disruptive innovation'” Dr. Clayton Christensen

Monday, January, 27, 2020

ICSB takes a moment to remember Dr. Clayton Christensen

 

How He Changed How We Look at Entrepreneurship

Dr. Clayton Christensen was a Harvard Business School professor who coined the term “disruptive innovation”. He passed away on January 23rd due to complications from leukemia. We remember him for his contributions in business and entrepreneurship, in which he taught us how to think about innovation differently.

A paradoxical answer he found when asked “Why do companies fail? Or rather: How is it that a small start-up can take on an industry giant and win?” was that many companies succeeded not by making something better, but by building something worse, manufacturing shoddy and inexpensive products that catered to the low end of the market. The Harvard Business review expands on this by saying:

“Disruption” describes a process whereby a smaller company with fewer resources can successfully challenge established incumbent businesses. Specifically, as incumbents focus on improving their products and services for their most demanding (and usually most profitable) customers, they exceed the needs of some segments and ignore the needs of others. Entrants that prove disruptive begin by successfully targeting those overlooked segments, gaining a foothold by delivering more-suitable functionality—frequently at a lower price. Incumbents, chasing higher profitability in more-demanding segments, tend not to respond vigorously. Entrants then move upmarket, delivering the performance that incumbents’ mainstream customers require while preserving the advantages that drove their early success. When mainstream customers start adopting the entrants’ offerings in volume, disruption has occurred.

Dr. Christensen made these findings mainstream in his book “The Innovator’s Dilemma” (1997) which propelled him to relative stardom after Intel executive Andy Grove called it the most important book he’d read in a decade. He also appeared on a 1999 cover of Forbes, and The Economist magazine later named “The Innovator’s Dilemma” one of the six greatest business books ever written. “Everybody talks about disruption now,” investor and tech writer George Gilder told the New Yorker in 2012. “Clayton inserted that word in the mind of every CEO in technology. Everywhere you go, people explain that they’re disrupting this or disrupting that.”

Dr. Clayton Christensen will be forever immortalized by his term “disruptive innovation” as it has inspired countless entrepreneurs and business leaders to think differently about their operations. His countless lessons and advice will be furthered realized as we see entrepreneurs innovate even more so than they have in the past. This is just one of the ways Dr. Christensen’s memory will live on among us.

The Role of Micro-Small and Medium Enterprises in Achieving the United Nations Sustainable Development Goals

The Role of Micro-Small and Medium Enterprises in Achieving the United Nations Sustainable Development Goals

The Role of Micro-Small and Medium Enterprises in Achieving the United Nations Sustainable Development Goals

Monday, January, 27, 2020

The Role of Micro-Small and Medium Enterprises in Achieving the United Nations Sustainable Development Goals

January, Monday, 27, 2020

Can Micro-Small and Medium Enterprises Be Part of the Solution to Reach the United Nations Sustainable Development Goals?

There is less empirical evidence on MSMEs growth in developing and emerging economies than in the developed world. MSMEs in developing and developed countries are faced with different challenges. Many MSMEs in developing countries are still informally organized enterprises limiting their longevity and wider contributions they make towards the SDGs. There are also questions on how formalization of the economy ought to take place.
 
Moreover, demands and challenges vary within the micro, small and medium enterprises cluster itself demands and challenges faced by micro enterprises are different from those faced by small and medium enterprises. Studies show that the growth of MSMEs in developing and least developed countries (LDCs) dominate in sectors which are labor intensive and possess low barriers to entry, including agriculture and agribusiness, manufacturing and service sector.
 
Women, youth and other vulnerable groups face more difficult challenges in MSME development. Women and youth MSME entrepreneurs, for example, particularly those from rural poor communities, are often further disadvantaged in growing their business, lacking land deeds and/or collateral needed to access formal sources of credit.
 
Other challenges include limited access to finance and lack of capacity and knowledge, particularly with regards to business development, marketing and strategic management skills (Read more…).
Global SME Finance Forum 2020

Global SME Finance Forum 2020

Global SME Finance Forum 2020

Monday, December 20, 2020

Global SME Finance Forum 2020

Monday, December 20, 2020

SME Finance Outlook 2030

The SME Finance Forum, Managed by the IFC, are thrilled to announce that the Global SME Finance Forum 2020 will be held on 26-28 October in Bangkok
 
Since its formation, the SME Finance Forum has been on top of all of the major trends in the SME Finance field. To celebrate the new decade, this year’s global event will look much farther forward, to imagine where we might be in SME financing a decade from now. 
 
Call for Insights
Following our practice of leveraging as much knowledge sharing as we can from our membership and our wider public audience, we will launch a public “Call for Insights” on what SME finance will look like in 2030. 
 
Submission guidelines will be shared soon.
The Need For Nurturing Entrepreneurship

The Need For Nurturing Entrepreneurship

The Need For Nurturing Entrepreneurship

Monday, January, 20, 2020

The Need For Nurturing Entrepreneurship

January, Monday, 20, 2020

Should there be a focus on Promoting and Developing Digital Entrepreneurs Nationally and Internationally?

Europe and mainly Italy is the land of family businesses mostly categorized as small to medium enterprises. They are recognized to be the backbone of the current economy, enhancing international and local growth. Those companies have been surviving transferring their know-how from generation to the next generation. They have been increasing the employability rate and improving the wealth state of their own country.
 
But nowadays everywhere people, social media, and others voice out that those family businesses are looking outside their local territory, going to develop their business because it is cheap and more convenient. The employment rate is getting lower and the overall sentiment about the future economy is not so great. Young people are moving abroad to spot their lucky chance. Yet, the need for entrepreneurship is urgently emerging. Universities are designing programs to connect young people with opportunities to progress and empower them on their journey towards employment.
 
It gives students in higher education the chance to create their own company while still pursuing their studies (Read more…).
Revitalizing Rural Areas Through the Power of Social Entrepreneurship

Revitalizing Rural Areas Through the Power of Social Entrepreneurship

Revitalizing Rural Areas Through the Power of Social Entrepreneurship

Monday, January 13, 2020

Revitalizing Rural Areas Through the Power of Social Entrepreneurship

Monday, January 13, 2020

Can Social Entrepreneurship Make Rural Communities More Livable?

An Overlooked Majority?

African cities are growing rapidly, but an estimated two-thirds of African people still live in rural areas. In some African nations, the ratio of rural: urban dwellers are even higher. In Burundi, in central Africa, it’s almost 9:1 – which gives some idea of the importance of the countryside.

However, numbers alone aren’t always enough to ensure that politicians based in capital cities focus on their rural populations. Providing necessary infrastructure in rural areas is much harder than it is in cities, which can lead to rural people feeling that their needs are not being considered.

Many approaches have been taken to addressing this, but so far, no single proposed solution has proven to be universally successful or appropriate. This presents an opportunity (and a need) for a rethink, and in this article, I’ll propose social entrepreneurship as a viable alternative. (Read more…)

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More Culture Conscious Entrepreneurship

More Culture Conscious Entrepreneurship

More Culture Conscious Entrepreneurship

Monday, January 6, 2020

More Culture Conscious Entrepreneurship

Monday, January 6, 2020

ICSB “Exposition Universelle” of Entrepreneurship

The Paris Exposition Universelle brought technology into the next century. Over a large area, entrepreneurs and inventors displayed brand new innovations in communications, travel, and entertainment–some of the latest technological advances were introduced to the world. They ushered in revolutionary ideas, and anyone who saw them knew that the world would never be the same again—in a profoundly good way.

This scenario is not a vision of the future nor is it a memory of the very recent past. In fact, it’s more than 100 years old—the Paris Exposition Universelle in the year 1900. However, this piece of entrepreneurial and innovation history is far from irrelevant. The event propelled Paris and subsequently, the rest of the world into a modern age. The spirit behind that kind of sharing of ideas and innovation is no less important for entrepreneurs and innovators today.

Today’s image of entrepreneurs has been warped by those outside the realm of entrepreneurship, the reality of which leaves some disillusioned. There is no doubt that entrepreneurs are driven, focused, self-starters, yet we are regaled by many tales of larger than life individuals with otherworldly intelligence that have built startups in their garage and grew them into today’s most iconic brands. While sensational stories like these capture the attention of many, they are by no means typical and give a somewhat skewed representation of successful entrepreneurship. For the overwhelming majority of entrepreneurs, the story is far different.  This is one of the reasons why it’s imperative that we resolve to start 2020 off by expanding the world’s vision of entrepreneurship.

A step towards realizing this resolution is for all to recognize that the ‘One Man Show’ is an entrepreneurial myth. As superhuman as some of those stories have made outstanding entrepreneurs seem, the truth is that its people who do a business thrive, especially when it comes to growing that business. Even the most talented visionary has the limited human capability and, therefore, cannot successfully juggle multiple clients, let alone manage the entirety of a business. The weight of it is too much for any human. When we come to fully appreciate and understand this, and the fact that it does not reflect weakness to seek out or accept help with a business,  we can truly appreciate the benefits of surrounding ourselves with a diversity of people who can provide additional viewpoints, fill in for the skills we lack and keep us accountable in our ventures.

In 2020, we must make it our collective mission to create more culture conscious entrepreneurship.  This brings us back to the goal of the 1900 Paris “Exposition Universelle” mentioned at the outset of the article. How does that event relate to entrepreneurship today? The spirit of “Exposition Universelle” is something vitally needed in our world today—a gathering of like-minded individuals from across the globe to share important information about their lifestyles, businesses, innovations, and most importantly, share their ideas. With inspiration from the 1900’s “Exposition Universelle,” Paris will again host an important event in July 2020, the ICSB “Exposition Universelle” of Entrepreneurship. This congress aims to expand our vision of entrepreneurship by uniting entrepreneurs together to network, co-create, and inspire one another, ultimately with the hope of changing the world in a profoundly good way.

See You in Paris!

The Genesis of the New Journal of the International Council for Small Business (JICSB)

The Genesis of the New Journal of the International Council for Small Business (JICSB)

The Genesis of the New Journal of the International Council for Small Business (JICSB)

Monday, January 6, 2020

The Genesis of the New Journal of the International Council for Small Business (JICSB)

Monday, January 6, 2020

ICSB Response to the Call of the United Nations

Today, more than ever, companies are looking at their core business, as well as philanthropy, advocacy, and partnerships, to support society, improve human life and also contribute to profitability. Sustainable development cannot be achieved by the United Nations alone, as shown in the UN Secretary-General’s Sustainable Development Goals (SDGs) Progress Report and the Global Sustainable Development Report. It is obvious, we will struggle to achieve the 2030 Agenda unless we join forces with every stakeholder and scale up our efforts toward the implementation of the SDGs.

ICSB was the lead organization to propose and ask the support and leadership of the Republic of Argentina to help move forward a resolution to the United Nations (UN) to create an International Day dedicated to Micro-, Small and Medium-sized Enterprises (MSMEs). According to the data provided by the International Council for Small Business (ICSB), formal and informal MSMEs make up over 90% of all firms and account on average for 60-70% of total employment and 50% of GDP. MSMEs are the first responders to societal needs.

The UN General Assembly, recognizing the importance of these enterprises, decided to declare June 27 the Micro-, Small and Medium-Sized enterprises Day to raise public awareness of their many contributions to sustainable development. Each June 27, the world will celebrate Micro-, Small and Medium-sized Enterprises Day. These enterprises, which generally employ fewer than 250 persons, are the backbones of most economies worldwide and play a key role in developing countries. These types of enterprises are responsible for significant employment and income generation opportunities across the world and have been identified as a major driver of poverty alleviation and development. (Read more…)

Download the full ICSB Gazette

ICSB 2019 Top Pictures

ICSB 2019 Top Pictures

ICSB 2019 Best Pictures – Memories for a Lifetime

December 30, 2019

ICSB Celebrates a Great 2019 Year

A Picture is Worth a Thousand Words

ICSB members took thousands of photographs in 2019 — from Egypt, Argentina, Mexico, France, S. Korea, Indonesia, Australia, Italy, Macao, United States, and many more to mention. We talked with content experts, researchers, activists, authors, entrepreneurs, micro-business owners, the youth, and influencers, and got them all on camera with one mission. How do we support micro-small and medium-sized enterprises worldwide! 

The gallery below showcases some of the great pictures taken in 2019. For this piece, we only picked images that meant something to us, whether because the photo captured a moment in a powerful story, showcased the skill and creativeness of ICSB members, or it was just a great photograph. We know our members probably have more to share. Yet, we leave it to everyone to share! 

Thank you ICSB Family for a Great 2019. We move Onward and Upward. 

To View the ICSB Top Ten Trends for 2020 (click here).

The Role of Entrepreneurship Educators and Researchers in Addressing the UN’s Sustainability and Development Goals

The Role of Entrepreneurship Educators and Researchers in Addressing the UN’s Sustainability and Development Goals

The Role of Entrepreneurship Educators and Researchers in Addressing the UN’s Sustainability and Development Goals

Monday, December 30, 2019

The Role of Entrepreneurship Educators and Researchers in Addressing the UN’s Sustainability and Development Goals

Monday, December 30, 2019

What Role Do Today’s Entrepreneurship Educators Play?

Last year I had the privilege of participating in the International Council for Small Business’ annual conference at the United Nations in celebration of the UN’s Micro, Small and Medium Size Enterprise Day (MSME). The topic of my talk focused on the role of entrepreneurship educators and researchers in working with the UN to address its 17 Sustainability and Development Goals. I talked about the well known linkage between the level of entrepreneurial activity in any given region and its effect on economic development. I also talked about the idea of recognizing entrepreneurs as problem solvers, especially in the context of addressing social issues. Closely linked to this talk at last year’s conference, past ICSB President Ki-Chan Kim emphasized the importance of adopting a philosophy and practice of “humane entrepreneurship”. In fact, at the close of last year’s conference, all attending delegates engaged in a signing ceremony to endorse ICSB’s support for promoting and adopting a humane and empathetic approach to the formation and management of growth oriented ventures.

For purposes of this discussion, I think it is important to clarify what I mean by levels of entrepreneurial activity. As Acs (2006) points out in his work in connection with the Global Entrepreneurship Monitor (GEM) project, it is first important to define how we measure entrepreneurial activity. Measurement issues can significantly influence how we make inferences regarding regional economic development. The GEM Project differentiates between “necessity based” entrepreneurship and “opportunity based” entrepreneurship. Necessity based entrepreneurship implies that individuals resort to a simple form of self employment because there exists very little to no other options at established organizations. Thus for regions characterized by high levels of necessity based entrepreneurs, we may infer that economic development is suppressed due to the lack of higher paying alternative employment opportunities. Alternatively, opportunity based entrepreneurship implies that individuals proactively choose an entrepreneurial path because they have recognized an opportunity and endeavor to exploit it through creative or innovative means. Accordingly. there seems to be a greater chance of improved regional economic development in areas where opportunity based entrepreneurs can flourish. From this perspective, opportunity based entrepreneurs may be more prone to undertake the challenges of building growth oriented organizations and thus contributing to the viability of a region. (Read more…).

Download the full ICSB Gazette