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Humane Entrepreneurship: Where We Go From Here
At the pace with which our world is expanding, considering the best possible future for our people, our planet, and our society demands that we dive into humane entrepreneurship wholeheartedly. No matter where we come from, we can all benefit from incorporating a humanity-first approach; recognizing that need is essential to activate a global force for good. From there, we must take a bird’s-eye view and acknowledge what is needed for each individual entrepreneur, enterprise, and country. While we may have different starting points, that belief in a shared philosophy or mission has long been the key to harmoniously working together and giving space to create the world anew.
Furthermore, the potential impact of humane entrepreneurship is enormous, especially when we keep in mind the following core tenets. To start, empathy leads to empowerment, followed by enablement, and ultimately lending itself to proactivity. Bearing that in mind, proactivity has a ripple effect: it drives innovation, which ultimately delivers a performance that has the potential to change the world. By and large, these principles stem from natural human behavior and values that many in the world share. While it may seem like many steps to follow, they are quite logical and intuitive, making it easy for anyone to incorporate them into their businesses and their personal lives.
While we are fortunate to study humane entrepreneurship so intimately and examine it from many complex angles, in effect it is quite simple: be good, do good, and you will create good in the world. For many who come to know it, these concepts will make perfect sense and will seamlessly integrate into their worlds. For others, it will be a return to what they know is true about this shared human experience we are all witnessing––that it is better to lift others up along the way to success. At the end of the day, humane entrepreneurship is the answer to the questions we seek. It is not simply a matter of if we choose to integrate its lessons into our everyday lives but rather a question of when.
From the 2nd Annual ICSB Humane Entrepreneurship Conference, many great points of data and research were shared. Below are a few highlights of what we can take away from the day:
Thank you for supporting the International Council for Small Business, MSMEs around the world, and humane entrepreneurship. For more information, please visit www.icsb.org.
Health is Wealth: A Case Study on the Impact of Humane Entrepreneurship
Happy Plate
Four years ago, the George Washington University student Mike Tadesse was told by his doctors that he had six months left to live. Tadesse was diagnosed with end-stage chronic kidney disease without even knowing he had been sick. Abruptly confronted by his mortality, Tadesse decided to take his health into his own hands and healed his body through dietary changes that kept him off of medication he was told he would need for the remainder of his life. Following his recovery and inspired by his experience sourcing a medically-tailored diet, he looked to give back to his community and founded Happy Plate in the process.
Happy Plate is a two-sided marketplace helping people with medical issues find meals customized to their health needs. Tadesse describes it as a place where supply and demand meet: local chefs and catering companies could grow their businesses while serving their community, and those with health-related issues could find nutritious food to heal their bodies. Happy Plate currently serves the greater Washington, DC metro area, providing ready-to-eat, fresh, and locally-sourced meals straight to the doorsteps of those who need it.
Dr. Ayman El Tarabishy, President and CEO of ICSB, wanted Tadesse to share more about Happy Plate in the closing session of the Humane Conference because his story embodies the spirit of humane entrepreneurship (HumEnt). Through caring for people who have a true need and sourcing local food for maximum nutrition and environmental impact, HumEnt is on full display throughout Happy Plate’s operations.
Tadesse noted, “To me, entrepreneurship means communities and understanding the needs of others and fulfilling that, [in order] to move forward.” As someone who demonstrates the power of humane entrepreneurship to impact human lives for the greater good, Tadesse reminds us that with a story, vision, and ambition, anyone can change the world.
To learn more about Happy Plate, watch the video below.
Humane Entrepreneurship and MSMEs in a Dynamic World
In championing people first, humane entrepreneurship inhabits a unique role in the business world as being 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. In fact, these “Firms of Endearment” outperformed the overall market by a nine-to-one ratio over a ten-year period in terms of profitability and performance. This is due to the fact that companies that invest in human capital as the chief source of innovation create High Performance Work Systems (HPWS) in which 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 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 in which 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 an entrepreneur manages 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 the person who takes action to make their vision for a better world a reality.
To learn more about Professor Kim’s humane entrepreneurship model, watch the session below.
Building on Entrepreneurship: Humane Concepts to Drive the World Forward
As far as theories go, cause and effect is a very simple one to understand. An event happens or a choice is made that leads to consequences, whether positive, neutral, or negative. In the world we are currently living in, and particularly within the realm of MSMEs, decisions that were influenced by profit rather than for people have had negative repercussions for the rest of the general population. From severe weather patterns of climate change, rampant viruses leading to a global pandemic, and political unrest in historically-stable countries, it is clear that we need to pay more attention to the solutions readily available before the problems we are facing overrun our world. Thankfully, humane entrepreneurship (HumEnt) offers us a mode from which we can find and implement large standing solutions by building upon the familiar model of entrepreneurship.
By all accounts, entrepreneurship and innovation yield tremendous results for the greater good. As one example of its impact, in the midst of mass layoffs during the coronavirus pandemic, 3.7 million new companies were started in the United States alone (Guilford & Scott, 2020). Amidst the backdrop of tragedy, this entrepreneurial spirit acted as a lifeboat for many who were uncertain where their next paycheck or meal would come from. Though it may seem intimidating to know where to begin, the beauty of HumEnt is that it is not so much about starting over so much as it is about meeting entrepreneurs where they are already. Centered around being a force for good in the world, HumEnt focuses on caring for society and the planet, as well as for individuals who contribute to the economy. The balance of caring for all three––people, planet, and society––represents a natural extension of this innate drive that humans have towards innovation and entrepreneurship.
Although humane entrepreneurship may be a relatively new modality, we are fortunate to live in a world where many researchers, innovators, and businesspeople have already dedicated their careers to understanding how we can move forward. Their roles help us to understand the causes of previous tragedies, as well as how we can continue to educate, empower, and encourage future growth and success. At the 2nd Annual Humane Entrepreneurship Conference, the International Council for Small Business (ICSB) convened 15 of these brilliant minds to discuss the current state of HumEnt, especially as it has related to the ongoing pandemic and other upheavals of the last year. Though a challenging time for all, it is with great pleasure that we see the world opening up into prosperity, understanding the value of humane entrepreneurship, and putting its principles into action.
By and large, revolutions do not occur overnight. They are the intentional byproducts of those who have seen the warning signs and acted with conviction behind the scenes. What began as an idea held in one person’s mind can ripple through society through education and connection. With more research, more education, and more risk-taking, we can see humane entrepreneurship through to its natural peak as the default method of doing business globally. Now that the revolution has already been sparked, it is time to create a future that drives the world forward into greatness by first pursuing goodness.
We are grateful to the following individuals for lending their expertise to the 2nd Annual ICSB Humane Entrepreneurship Conference:
References
Guilford, G., & Scott, C. (2020, September 26). Is it insane to start a business during coronavirus? Millions of Americans don’t think so. Retrieved May 13, 2021, from https://www.wsj.com/articles/is-it-insane-to-start-a-business-during-coronavirus-millions-of-americans-dont-think-so-11601092841?st=001gx16vfm73l4e&reflink=article_copyURL_share
Humane, Sustainable, and Harmonious Entrepreneurship: Shifting to a More Holistic Perspective of Entrepreneurship
Entrepreneurship can be sorted into various sectors of disciplines, each of which impact our lives and the world around us in different ways. Alone, each of these practices possess the power to make long-term, positive change, both in the corporate world and in our communities. However, we must challenge ourselves to push humane entrepreneurship one step further. By integrating these practices and their individual ideologies, we gain the ability to improve our society in entirely new ways. Intersectionality is vital to humane entrepreneurship, as we cannot practice human-centered entrepreneurship without also taking action to protect our environment and human rights. While we work to combat global issues such as COVID-19, climate change, and inequity, entrepreneurs exist at the forefront of ensuring the health and wellbeing of our communities. By understanding the interconnectedness of these issues, we can adopt a more holistic view of entrepreneurship, and actively improve the world with a newfound strength in unity.
One of the main objectives of humane entrepreneurship is to produce engaged employees through High Performance Work Systems (HPWS), which empowers and enables employees to embrace creativity and take innovative risks. Building upon this framework, Dr. Jeff Hornsby, Director of the Regnier Institute for Entrepreneurship Innovation, argues that integrating HPWS with Entrepreneurial Orientation (EO) can “generate human and social capital and produce an innovative workplace culture based on such elements as enablement, empowerment, equity, and empathy.” In addition, Human Resource Management (HRM) greatly impacts the human and social capital within a firm, which is the primary source of innovation in a humane company; therefore, HPWS, EO, and HRM combined ultimately build the foundation for a successful humane enterprise. The result is engaged employees working towards a better society for a company they believe in.
As the fundamental goal for humane entrepreneurship is prosperity for our companies and communities on a human level, we must also consider the state of the environment in which we are building these enterprises. Particularly in our post-pandemic society, we are now being afforded the unique opportunity to reconsider what kind of cities, jobs, and entrepreneurship we truly need. Sustainable entrepreneurship uses the Sustainable Development Goals (SDG) 12 as a concrete guideline for tackling interconnected issues such as carbon emission footprints, gender equality, and quality education. In order to uphold these intentions, Professor Analia Pastran, founder and CEO of Smartly Social Entrepreneurship on the SDGs, asserts that we must boost sustainable options, create effective green agendas for the younger generations, and gain the support of legislation in order to provide entrepreneurs the legal framework to implement SDGs. Analyzing the SDG 12 in this way, it becomes clear that humane and sustainable entrepreneurship are inherently connected and must work together to create a healthier society.
Considering entrepreneurship and the environment, we need to take into account the effects of corporations and MSMEs alike on our planet and communities. Although entrepreneurship can be a strong tool for creating jobs, wealth, and innovation, it can also contribute to issues such as environmental pollution and unsafe work environments. The reason for this lies in leaders valuing profit over people and the planet, which points to the importance of educating entrepreneurs on the triple-bottom-line. According to Professor David Kirby, co-founder of Harmonious Entrepreneurship Society (HES), “We were put on this planet in order to look after it. We must take care of the human environment, as well as the physical environment.” From this standpoint of compassion, an evident means of protecting both people and the planet is converging economic, sustainable, humane, and social entrepreneurship underneath the umbrella of harmonious entrepreneurship, which is based on the understanding of the planet as one large system with many interconnected subsystems.
This intersectionality in entrepreneurship serves as the key for unlocking solutions to the universal issues facing us, and by adopting a more holistic view of entrepreneurship, we arrive at the conclusion that no human issue stands alone. In solving problems like climate change and inequity, and advocating for human rights, integrating different entrepreneurial sectors allows us to stand together, stronger and more capable than ever before.
For more on humane entrepreneurship, SDGs, and the benefits of integrating different entrepreneurial approaches, watch the session below.
The Ecosystem and Entrepreneurship: Education First
Education sits as the cornerstone of creating socially and environmentally conscious entrepreneurs. When we imagine the future of humane entrepreneurship, it includes empowered employees and well-educated entrepreneurs making intelligent decisions to heal the environment and benefit the world at large. In order to enable entrepreneurs to make these changes we envision, we must educate them on the issues that truly matter, such as integrating social entrepreneurship with sustainable entrepreneurship, and employing business practices that protect our planet, communities, and future generations.
First, we must consider the significance of climate change and the role that both government officials and entrepreneurs play in preventing further damage to the planet. Although governments are making changes to reduce negative impacts on the environment, we are still faced with concerns about whether profitability and sustainability can coexist. In response to this, we must educate all stakeholders about climate risk and their duty to promote sustainability. As observed by Dr. Mariya Yesseleva-Pionka, Global Certificates Manager for ICSB and adjunct professor at University of Technology Sydney, “With every new business venture comes a great responsibility for making climate-friendly decisions.” Therefore, we need to continue developing and supporting eco-friendly solutions such as green start-ups, fin-techs, and sustainability reporting, as well as educating entrepreneurs on how to properly implement SDGs and sustainable business practices. It is imperative to note that long-term profits will not matter if the planet continues to deteriorate due to climate change.
This sustainability education is inherently tied to education about social entrepreneurship, as both of these entrepreneurial approaches target issues on a human and environmental level. Although there exists an increasing amount of research on social entrepreneurial intention (SEI), or the motivation of entrepreneurs to build new social enterprises, we still lack knowledge about different SEI antecedents, such as personality, cognition, and experience, as well as variables moderating antecedent-SEI relationships, including economic and social influences. According to Dr. Phillipp Kruse, scientific staff member at the Dresden University of Technology, the solution to these research issues lies in examining SEI in countries with different cultures and economic situations, as well as developing a validated instrument with which to measure SEI. Additionally, social entrepreneurship educators must include more psychological input in university courses to strengthen participants’ motivational ties to social entrepreneurship.
With the amount of power that entrepreneurial learners possess to change the future of business and the environment, we owe them the best education, educators, research, and settings. We must listen inclusively to the voices of these learners and to new and small businesses alike. As stated by Dr. Norris Krueger, Senior Research Fellow at the College of Doctoral Studies, UOPX & Entrepreneurship Northwest, “Students are our secret weapon. In terms of learning and educating, and especially in terms of the ecosystem.” In order to provide entrepreneurial learners with the best resources, we need to shift from top-down systems to bottom-up, from institutions to people, and from hierarchies to networks. Inclusivity and active listening are the keys to discovering what our entrepreneurial students need in order to flourish, improve their communities, and shape the future of humane entrepreneurship. In educating entrepreneurs and stakeholders on their sustainable responsibilities, increasing students’ ties to social entrepreneurship at the university level, and providing high quality, comprehensive education, we grant entrepreneurs the tools necessary to implement safer business practices and create long-term, positive change for our environment, communities, and ways of life.
For more on the importance of entrepreneurial education, watch the session below.
Industry 4.0: Moving into a Humane Future Together
As our society moves through Industry 4.0 and acclimates to the automation of manufacturing, this 4th Industrial Revolution is throwing our world into uncharted waters where cold, uncompromising technology meets the warmth and unpredictability of the human experience. Within the context of humane entrepreneurship, we understand that each individual entity has their own histories, values, and cultures that informs how they do business and interact with their peers. However, any time we approach a different way of operating, there are new questions that arise. Chief among them, we must ask ourselves what the role is of humane entrepreneurship at this unfamiliar intersection of technology vs. the human experience and how we can take into account the lessons we have learned from the past in order to embody the society we want to be in the future.
According to academic and researcher Ivea ZeBryte, it is essential that we keep sight of the human element in all that we do. ZeBryte says, “When teaching entrepreneuring, we should be working through a matrix where empathy is understood as the ability to put oneself into the place of another, to identify and be sensitive to others that we recognize as different from us.” Therefore, it is precisely the differences that we have that challenge us to come together for the greater good. In order to move forward together into the next realm of entrepreneurship, ZeBryte lays out the road map to follow: reevaluate, or delineate what we value as humanity; reimagine, or work out the plurality of futures ahead of us; and reset, or build a new system of value creation and exchange based on these agreed-upon ideas.
Meanwhile, taking a more micro-level view, we must also consider what influences entrepreneurs along their decision-making processes, both internal and external. Psychological factors include personality, mindset, and level of cognition while non-psychological elements encompass affiliation to a group, religion, culture, and friends and family. Additionally, there are three main orientations one could underscore: entrepreneurial, emphasizing innovation; human resource, regarding empowerment; or sustainability, highlighting environment. “When taking all of these factors cumulatively, it creates a multi-dimensional construct that is humane entrepreneurship,” says Indu Khurana, Assistant Professor at Hampden-Sydney College. Without consideration for the individual and the society, including the influences behind our decisions, we lose the value of humane entrepreneurship.
In the meantime, it is important to reconcile these humane concepts with new technology that is rapidly advancing this current industrial revolution. Take, for example, the travel industry. With tourism contributing $8.9 trillion USD to global GDP, it is a sector that is closely linked to the social, economic, and environmental well being of countries. The opportunities to make it even more innovative and efficient through the use of Artificial Intelligence (AI) and automation are endless, but it is important to consider at what cost they may come, particularly for these citizens for whom so much is at stake. As Dr. Jugho Suh, Assistant Professor at George Washington University School of Business, warns, “AI based off of Big Data is not a panacea for all problems…AI can read patterns and behavior, but it cannot read attitude, values, or underlying motives for action.” Therefore, while it is important to lift up the travel industry in this current age of technology, we must not do so at the expense of human lives.
At its core, technological advances have brought us to the current era and given countless opportunities to those living today. We are experiencing an important crossroads right now, one with immense ramifications for future generations, and it is up to us the future we choose to orient ourselves toward. Although there will always be major differences across cultures, it is imperative that we find common values so that we can move into the future that we desire together.
For more on the impacts of colonialism on Chile, religion in India, and AI technology on the travel industry, watch the session below.
The Role of Humane Entrepreneurship in the Digital World Post-COVID
Though there are many lessons to take away from the coronavirus pandemic, one theme that cannot be denied is the overwhelming need for technology and technological literacy. Thanks to the digital world, at the onset of the pandemic companies were able to shift to remote work and new ways of operating, which kept people employed, economies running, and saved lives. Although many businesses are returning to in-person operations, it is important to keep in mind the lessons we have learned. As we work to rebuild in a post-COVID world, we can take the tenets of humane entrepreneurship and integrate its principles, particularly its relation to the Volatility, Uncertainty, Complexity, and Ambiguity (VUCA) matrix and technology, into the future.
Within the realm of VUCA, we can examine the current state of issues within communities and how to best resolve them. As we are all well aware, COVID-19 had a catastrophic effect on the entrepreneurship world, closing stores and restaurants, eliminating jobs overnight, and significantly impacting women and children. In order to resolve VUCA, there must be forward thinking strategies, alignment with Sustainable Development Goals, and employability skills and adaptability, amongst others. While these general guidelines represent a generous starting point, it’s important to keep in mind that individual countries, with their unique needs, may need to develop their own paths rather than adhere to a single set of guidelines.
One proposed consideration has been exemplified in Korea. With technology, and in particular Artificial Intelligence (AI), rapidly expanding in the aftermath of COVID, the country has implemented special measures for education and enablement in order to combat the low digital competency of adults in their 40s and 50s. Although technology has the potential to serve as the ultimate unifier, if we are not careful it can also disrupt standard operations, eliminate jobs, and threaten livelihoods while rendering entire generations obsolete as they struggle to keep up with the breakneck pace. These ramifications for humanity must be considered as carefully as viral transmission, droplets, and microbes.
As Ahmed Osman, former Chair of the Board at ICSB, observes, “Technology has no ethics.” When a new piece of technology is introduced to the world, there is no oversight board considering the implications on human society as a whole. Rather, the immediate concern is how to reach as many people as possible, how to solve a need, and how to earn a profit. It is of the utmost importance that we lead with consideration for people and the planet, learning to balance humanity with technology and investing as much money into humanity as we are into tech. As we sit at this pivotal digital crossroads, it is vital that we navigate this digital revolution with great care for the future. The coronavirus pandemic taught us the importance of technological advances to keep the world running, and now we have the opportunity to reevaluate what we want and set ourselves and our society up for a future that will serve those needs.
To learn more about VUCA, technology, and the technological revolution, watch the session below.
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