The Entrepreneurial Leopard

Jan 28, 2022 | Gazette

The Entrepreneurial Leopard

Friday, January 28, 2022, by David A Kirby

Professor David A Kirby

Used as a title for a recent essay in this ICSB series (Dana and Salamzadeh, 2022), the idiom “A leopard cannot change its spots” is thousands of years old. It means people and things cannot change their innate nature. But this is exactly what MSMEs will need to do.

Ever since the work of Cantillon (1680-1734 ) wealth creation and the generation of profit has been a central theme of entrepreneurship and in his articulate essay on the topic Friedman (1970) argued that “The Social Responsibility of Business is to increase its profits” – to make as much money as possible. Since then, this doctrine has dominated business thinking and while the entrepreneurial pursuit of wealth has brought about change and improvement, particularly in the world’s developed economies, often it has been at the expense of people and the planet. Accordingly, despite the introduction of such new approaches as ecopreneurship, humane entrepreneurship and social enterprise, entrepreneurship has had little impact on the sustainability challenge and may, indeed, be regarded as having contributed significantly to the plight of the planet. Hence, questions have been raised about its compatibility with sustainability (Gawel, 2012) and both academics and practitioners have been actively seeking new business models to address the challenge (Schaltegger, et. al. 2016).

The problem is that the planet is a system which means it is not possible to address one element without disturbing the other connected elements – solving one problem often creates other problems elsewhere in the system. To address the sustainability challenge, therefore, requires a systemic approach to entrepreneurship that integrates or harmonises the traditional economic, eco, humane and social approaches and brings profit, people and planet into harmony. (Kirby and el-Kaffass, 2021).

While this appears to contradict Friedman’s doctrine what he actually said was that the social responsibility of business is “to make as much money as possible while conforming to the basic rules of society, both those embedded in the law and these embedded in ethical custom”. Rarely, however, has this been articulated or acted upon, yet all of the major world religions address such ethical issues. Indeed in Islam, for example, the Quran explains explicitly how ethical business should be conducted while the Prophet MOHAMED pronounced that “The world is green and verdant and verily God, the exalted, has made you the stewards of it”.

To save the planet MSMEs will need to change. Profit and shareholder satisfaction will no longer be the primary objective. Rather a more blended, systemic approach that harmonises profit, people and planet is needed. The entrepreneurial leopard needs to change its spots!

References

Dana, L-P and Salamzadeh, A., (2022), A leopard never changes its spots! ICSB Entrepreneurship around the globe. 23 January. (news@icsb.org)

Friedman, M., (1970) The Social and Ethical Responsibility of Business is to increase its profits. New York Times. September 13. 122-126

Gawel, A. (2012). Entrepreneurship and sustainability: do they have anything in common? Poznan University of Economics Review. 12 (1) 5-16.

Kirby, D.A. and El-Kaffass, I., (2021), Harmonious Entrepreneurship – a new approach to the challenges of global sustainability. The World Journal of Entrepreneurship, Management and Sustainable Development. .17(4), 846-855. First online 12th July.(https://doi.org/10.1108/WJEMSD-09-2020-0126).

Schaltegger, S., Hansen, E.G., & Ludeke-Freund, F. (2016). Business Models for Sustainability: Origins, Present Research and Future Avenues. Organization & Environment. 29 (1) 3-10.

Entrepreneurship around the Globe: “A leopard never changes its spots!”

Jan 23, 2022 | Gazette

Entrepreneurship around the Globe: “A leopard never changes its spots!”

Sunday, January 23, 2022, by Leo-Paul Dana & Aidin Salamzadeh

Leo-Paul Dana

Rowe School of Business, Dalhousie University, Canada

Aidin Salamzadeh

Faculty of Management, University of Tehran, Iran

Many people believe that doing business is just about selling something. Although this could be true, one cannot neglect the importance of where we do such activities. As mentioned by Peter Drucker: “culture eats strategy for breakfast”. The context reveals the playground in which we could win or lose. While a businessperson could succeed in a context, he or she might not even be able to compete in another context. The culture could motivate people or kill their creative spirit.

Hopefully, many intellectuals and authors have already highlighted its importance, but how it could affect business activities is beyond a simple discussion. Countries have various cultures that have been evolved throughout centuries. Many cultural aspects of a set of randomly selected countries might be surprisingly contradictory, while similar textbooks, courses and programs are offered around the Globe to help people do their businesses! It is more like trying to survive a freshwater fish by putting it in the ocean or saltwater!

One might believe that “doing business is all about offering a set of products to a group of customers. that’s it!”. To be honest, one might answer, “that’s not right at all!”. While the business modelling logic provides a basis for understanding any business, it lacks enough attention to its context. At least, this is the mainstream approach in business schools worldwide. We do not overlook the activities already done by various entities in many countries, but we talk about the mainstream approach.

“A leopard never changes its spots!”

Generally, people respect their shared values, beliefs, and customs, which we simply call their culture. People stick to these issues and avoid doing something contrary to those unwritten rules and regulations. It is almost impossible to change who they are, even if they try to do so very hard. Then, as businesspersons, we need to be so careful about such issues. Although it seems simple, history has shown that it is not much simple. Without respecting various cultures, no one could not make a success story in a specific context. Then, before initiating a business, one must learn more and more about the context. Indeed, many benefits are associated with studying the context, such as knowing the Dos and Don’ts, ensuring survival and growth, and preparing to succeed.

“Understanding Contexts of Business in Western Asia: Land of Bazaars and High-Tech Booms” (Dana et al., 2022) is an example of how culture has affected Western Asian countries by using an interesting phenomenon called “bazaar”, and how such a cultural fact has helped them deal with high-tech booms and improving entrepreneurial ecosystems in those countries. It could be a beginning to revise teaching and doing business in diverse contexts.

References

Dana, L. P. (2014). Asian models of entrepreneurship—from the Indian Union and Nepal to the Japanese Archipelago: Context, policy and practice. World Scientific Publishing: Singapore.

Dana, L. P., Salamzadeh, A., Ramadani, V., & Palalic, R. (2021). Understanding Contexts of Business in Western Asia: Land of Bazaars and High-Tech Booms. World Scientific Publishing: Singapore.

From Digital Revolution Back to the Barter System in One Day

Jan 18, 2022 | Gazette

From Digital Revolution Back to the Barter System in One Day

Tuesday, January 18, 2022, by Dr. Mariya Yesseleva-Pionka, PhD

We have been witnessing a digital revolution worldwide which affected all industries, especially with the evolution of digital payment methods. The global connectivity due to the introduction of the Internet allowed for the flow of information, payments, emails, texts, to name a few. We all so quickly got used to having a mobile phone that gave us quick and easy access to all the banking and finance needs, exchange of data, verbal, video and text communication. The IT industry has flourished over the years by introducing new software, Apps and programs with a greater emphasis on mobile phone users. An everyday consumer has rapidly accepted online bank cards, online banking and investment systems, digital cash, online roboadvisers, trading in cryptocurrencies and other digital tokens mainly because they were introduced with user-friendly mobile interfaces.

Kazakhstan, which used to be part of the USSR, gained its independence back in 1991, is the largest country in the Central Asian region. The banking sector in Kazakhstan introduced digital and QR code payment systems a few years ago and strongly promoted cashless payments. The digital payment options have quickly received acceptance from the general population. It was easy, convenient and fast to transfer money and pay for goods and services. It was interesting to witness that even small shop owners had access to the QR codes and, in general, MSMEs were happy to accept cashless payments. Physical cash was rarely circulated. The vast majority of payments were digital, and whenever someone had a banknote, in many cases, sellers could not accept it as they did not have change and asked for a digital transfer of the funds. It was all due to smart mobile phones that could provide access to the online banking apps that offered omnichannel banking experiences, from basic banking needs to all the types of shopping, travelling, investing needs, and so much more. The Kazakh nation has been tech-savvy for years and showed no signs of slowing down.

This all changed on the 4th of January 2022, when the lives of the citizens were thrown into turmoil. Suddenly there were demonstrations and unrest and a major disruption to everyday life. Sadly there was also loss of life. The entire country was in a state of emergency, and people were urged to stay at home. There was no Internet access, mobile networks stopped working, international numbers could not be reached on landlines – the country was cut off from the outside world. The banking sector stopped operating, the stock exchange suspended operations, and ATMs were emptied.

Large supermarkets and malls were closed, none of the point of sale terminals were working, and none of the bank cards were accepted. When going to the small local shops to buy bread and milk, the ordinary citizens were asked to pay with cash only as all the cashier online payment systems were not operating. Everyone had money in their bank accounts but could not access them to pay for essential goods. People did not have any cash savings at home as they got used to mobile phone cashless payment systems. After a few days, while queueing for food, some people were desperate to buy necessary items but had no cash to pay for them. They started asking people if they were able to give some money in exchange for expensive phones and other valuable items; others were asking shop owners to provide food in exchange for valuable items. In the emergency state, the barter system started its operation.

What happened in Kazakhstan is unprecedented but makes us all think about the key questions:

Are we ready for the digital world?

Are we ready to have only digital means of payments?

What happens to us and our daily lives once the Internet goes down due to various reasons?

What happens to technology, the finance and banking sectors, and, most importantly, payment methods in the absence of the Internet and global connectivity?

What will be the value of cryptocurrencies and other digital tokens when there is no access to the Internet?

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).

Alternative Finance Landscape: Roboadvising

Dec 6, 2021 | Gazette

Alternative Finance Landscape: Roboadvising

Monday, December 6, 2021, by Dr. Mariya Yesseleva-Pionka, PhD

At various stages in their personal lives, many entrepreneurs choose to seek the advice of a finance professional to assess risks and recommend financial solutions that could help in the financial decision-making process. Historically, professional advisers or financial planners could be found among lawyers, tax and insurance agents, credit providers, stockbrokers and other financial service providers. As such, it is necessary always to check if all the licenses and registrations are in place before you pay for the services and rely on the advice provided by a chosen financial adviser. A complete financial advice from a selected financial planner typically encompasses information and advice that makes it easier for you to manage investment options, tax implications, insurance policies, education needs, retirement plans and various loans and provides an interconnected financial plan.

As the widespread adoption of digital banking continues to increase it is evident that customers will continue to expect more personalised banking services. The myriad banking options shared with customers through their banking applications are making it more challenging to make well-informed financial decisions. Access to professional financial advice has always been associated with a fee payment which gave you access to personalised advice on a diverse range of financial matters. Clearly, for a significant number of people, the fees were considered to be quite high and as a result, not many people could access professional financial advice services.

In today’s digitalised world roboadvising has gained popularity due to lower costs, at scale personalisation, greater accessibility, efficiency and overall, financially inclusive approach. In general lower fees charged by roboadvisors made their service more accessible in comparison to their traditional financial advisors. The process is relatively straightforward, which involves completing an online questionnaire that contains a large set of questions connected with your financial plans, age, risk tolerance level, investment horizons, the amount you are planning to invest, among other granular questions. Upon successful completion of the questionnaire, a roboadvisor will ask you to link your bank account with the roboadvisor’s platform for a more seamless investment experience.

There are many online platforms that rely on mathematical computer algorithms to provide recommendations and financial advice to customers with varied financial profiles. Even in the presence of so many benefits, it is essential to be aware of the limitations associated with roboadvising. For many clients, having no face-to-face meetings or conversations could be considered a major hurdle. Roboadvising is still a new landscape, so it is necessary to compare fees and services offered by various roboadvisors. For instance, check how accessible is the customer support team (e.g., chatbots, emails, phone contact with human advisors), level of management and investment fees charged, types of investment options in order to gauge the level of portfolio diversification, educational material they have on offer, minimum investment amounts, level of customers’ ratings, opportunities to minimise tax exposures, trading costs associated with buying and selling various investments and potential conflicts of interest when it comes to the types of investment products recommended by roboadvisors. Remember, every single outcome in your financial success story is defined by the financial decisions you make.

Author

Industria 4.0 y Pymes manufactureras en Latinoamérica Entrega 1

Nov 22, 2021 | Gazette

Industria 4.0 y Pymes manufactureras en Latinoamérica Entrega 1 –

Entrepreneurial Revolution Series

Monday, November 22, 2021, de Dr. Rubén Ascúa

El nivel de difusión de las nuevas tecnologías involucradas en la llamada Industria 4.0 (I40) es aún incipiente en América Latina y en particular en pymes manufactureras. La I40 presenta dos dimensiones, por un lado, la política descendente en la que los gobiernos incentivan al sistema productivo a adoptar los motores de esta revolución tecnológica y, por otro, la dimensión empresarial impulsada por las grandes empresas transnacionales y la red de participantes pymes en sus cadenas de valor. Este artículo encuentra que las principales motivaciones de las PYMES analizadas que la introducción de estas nuevas tecnologías está vinculada a la necesidad de encontrar soluciones, en términos de mejora de la eficiencia en los procesos, mayor calidad de los productos y servicios a los clientes y proveedores. Por otro lado, el cambio que supone la digitalización, plantea un salto cualitativo para las PYMES lo que les obliga a replantear su funcionamiento y en el que es imprescindible la interconexión y actualización dinámica de las competencias de sus recursos humanos.

Desde fines del siglo XX y comienzos del siglo XXI, en un marco de fuerte globalización y reconfiguración de la fisonomía del capitalismo de base industrial imperante en las décadas precedentes, se aprecia la transición hacia una etapa donde el uso masivo y difusión de nuevas tecnologías impacta fuertemente en la dinámica social y económica. Esta transformación en los escenarios productivos es conocida recientemente como “Cuarta Revolución Industrial”, o Industria 4.0, en tanto cuarta mega etapa de la evolución técnica-económica de la humanidad desde el inicio de la Primera Revolución Industrial.

El concepto “Industria 4.0” surge en Alemania a comienzos de la década pasada como emergente de la iniciativa del gobierno federal alemán de diseñar un programa de mejora de la productividad de la industria manufacturera del país. El término Industria 4.0 fue presentado por primera vez en la Feria de Hannover de 2011. Desde la academia se ha comenzado a prestar atención a la I40 de manera reciente y como reacción a la dinámica impuesta por las dos dimensiones antes señaladas. En particular se destacan los informes de consultoras como McKinsey, BCG, Deloitte, entre otras que a nivel global y desde la consultoría han comenzado en los últimos diez años a seguir básicamente la cadena de decisiones e inversiones en tecnologías I40 por parte de las más importantes corporaciones del mundo.

El término industria 4.0 se refiere a un nuevo modelo de organización de los procesos productivos y de control de la cadena de valor con eje en las tecnologías de la información y dispositivos comunicados de manera autónoma. Se parte de la posibilidad de la configuración de fábricas “inteligentes” que integran lo físico con lo virtual, lo que supone la articulación de sistemas computacionales y procesos manufactureros, el despliegue de decisiones descentralizadas y mecanismos de optimización “auto organizativos” (European Parliament, 2016).

Autor

Dr. Rubén Andrés Ascúa – Rector de Universidad Nacional de Rafaela

PERFIL

. CONTADOR PÚBLICO NACIONAL – Universidad Nacional del Litoral – Argentina.

. LICENCIADO EN ECONOMÍA – Universidad Nacional de Rosario – Argentina.

. Magister y Doctor (PhD) en Economía – PW University San Diego – California – EEUU.

Actual: Profesor en las Universidades Tecnológica Nacional, de General Sarmiento y del Litoral en Argentina; y en la de Ciencias Aplicadas de Kaiserslautern, en Alemania. Presidente de la Asociación Civil Red Pymes MERCOSUR. President of International Council for Small Business (ICSB 2014-2015). Director de A&M Ciencias Económicas.

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