4th Industry and Humane Entrepreneurship

Sep 26, 2021 | The Latest

4th Industry and Humane Entrepreneurship

Sunday, September 26, 2021, by Dr. Ayman El Tarabishy

As our society moves through Industry 4.0 and acclimates to manufacturing automation, 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 entity has its histories, values, and cultures that inform 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 consider the lessons we have learned from the past to embody the society we want to be in the future.

According to academic and researcher Ivea ZeBryte, we must keep sight of the human element in all that we do. ZeBryte says, “When teaching entrepreneurs, 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 challenge us to come together for the greater good. 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 and 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, one could underscore three main orientations: 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 essential 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 USD 8.9 trillion to global GDP, it is closely linked to countries’ social, economic, and environmental well-being. The opportunities to make it even more innovative and efficient through Artificial Intelligence (AI) and automation are endless. Still, it is essential to consider 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 essential to lift 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. However, 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 significant differences across cultures, we must find common values to move into the future that we desire together.

Watch the session below for more on the impacts of colonialism on Chile, religion in India, and AI technology on the travel industry.

Human Transformation: Beyond Digital Adoption

Aug 30, 2021 | The Latest

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Humane, Sustainable, and Harmonious Entrepreneurship: Shifting to a More Holistic Perspective of Entrepreneurship

Aug 21, 2021 | The Latest

Humane, Sustainable, and Harmonious Entrepreneurship: Shifting to a More Holistic Perspective of Entrepreneurship

Saturday, August 21, 2021, by Dr. Ayman El Tarabishy

Entrepreneurship can be sorted into various sectors of disciplines, each impacting our lives and the world around us in different ways. Alone, each of these practices possesses 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 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 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 genuinely need. Sustainable entrepreneurship uses the Sustainable Development Goals (SDG) 12 as a concrete guideline for tackling interconnected carbon emission footprints, gender equality, and quality education. 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 support legislation to provide entrepreneurs the legal framework to implement SDGs. Analyzing 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 consider 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 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 to look after it. Therefore, 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 extensive system with many interconnected subsystems.

This intersectionality in entrepreneurship serves as the key for unlocking solutions to the universal issues facing us. By adopting a more holistic view of entrepreneurship, we conclude 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.

Watch the session below for more on humane entrepreneurship, SDGs, and the benefits of integrating different entrepreneurial approaches.

Humane Entrepreneurship and MSMEs in a Dynamic World

Aug 1, 2021 | News | 1, The Latest

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.

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

Apr 30, 2021 | The Latest

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?”

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