Posts Tagged social capital

Small Business Entrepreneurship: The Place to Develop Tomorrow’s Leaders


Yesterday I was reading a blog post that said something to the effect the days of true leadership are gone. I was thinking I don’t believe that for a moment. We live in trying times, but there’s no reason we can’t have that good leadership. Although we see politicians taking one side or the other and polarizing people, I see no reason good leadership can’t prevail elsewhere.

I think the place leaders can make a big difference today is in entrepreneurship. I feel this way because I see a void left by big companies whose goal it is only to win. So what can I do about this state of affairs? I can brush it off like many people do or I can help entrepreneurs develop leadership skills so the next generation cares about the world around them and for the people who live in it. So why can’t these people become leaders to make the world a better place?

I get the feeling sometimes when people take a job their companies say, “leave your brains at the door. Here, we are going to do it our way.” I say here is where the politics begin. Working towards a mission takes a strong character to not get involved in politics and instead do what’s best for society and customers. This is the opportunity for leaders to show their stuff.

I would like nothing more than see the next generation of companies personify true leadership that cares. I want to bring these days of win-lose two an end. Entrepreneurship is the perfect place for leaders to develop as they grow their companies and build on new ideas. Entrepreneurs are much closer to the people and society because they have to be. Someday these companies will be the big companies of tomorrow, and I hope they will be better prepared to lead then what we have today.

My goal is to build leadership skills, while helping small business entrepreneurs develop business skills to grow their businesses. I want to turn things upside down and work from the bottom up so entrepreneurs don’t get the same skills they have today. I see a better way! Learn more.

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Small Business Entrepreneurship: Go Where the Money’s At or Not–Yet!


We have all had some programming to follow the long-standing idea of going where the money is at, but the time has come to reexamine this notion. Innovation to meet changing market needs will destroy many mature industries and companies. In the recent global economic downturn we have already seen striking evidence the time has come to replace some existing large companies and industries. For example, companies producing energy from fossil fuels can only last so long as eventually these energy sources will not supply enough energy to meet growing demand and the needs of a burgeoning population. Prices are out of control and will soon, if not already, price many consumers out of the market. Should companies invest more in these energy sources or look for innovations to create energy?

Joseph Schumpeter (1975) coined the term “creative destruction” to describe this idea and explain economic cycles in which economic growth flourishes and then subsides. The down cycle happens because of the lack of innovations, stable demand for existing products, burgeoning costs of bureaucracy, rising income inequality, and tactics used by big mature companies wanting to exert their influence on the political process. “Creative destruction” moves economies from free markets to more socialistic economies, but Schumpeter looks at this phase of the cycle as a way to restore free market conditions conducive to entrepreneurship and contributing to economic growth.

In a socialist economic setting, spending on needed infrastructure stimulates economic conditions and supplies capital to entrepreneurs to restore creativity and induce the innovation process. Large oligopolistic companies fear this phase of “creative destruction” because it often results in their downfall and replacement by new companies innovating ways to serve emerging consumer needs (Foster, 2010; Norton, 1992).

Large oligopolistic companies ignore the emerging needs of consumers and focus on existing needs. Entrepreneurs see these companies not meeting many consumer needs and see the opportunity to innovate to meet these needs. For example, as income inequality grows widespread poverty results. This part of the population has unmet needs. Some examples include the need for affordable housing, education, and healthcare. Although these are existing industries, the key to solving these problems comes from the emerging knowledge industry (Foster, 2010).

Small business entrepreneurs should embrace business networking to gain intelligence and collaborate to find new solutions for emerging needs. Should entrepreneurs go where the money is at? I suggest not and now is the time to go where the money is not–yet. Learn more.

What emerging needs do you see and how can you contribute to making conditions better for entrepreneurship? I am interested in hearing your ideas.

References

Foster, J. (2010). Productivity, creative destruction and innovation policy: Some implications from the Australian experience. [Article]. Innovation: Management, Policy & Practice, 12(3), 355-368. doi: 10.5172/impp.12.3.355

Norton, E. (1992). Evidence of creative destruction in the U.S. economy. Small Business Economics, 4(2), 113-123. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=16845164&site=ehost-live

Schumpeter, J. A. (Ed.). (1975). Creative destruction from capitalism, socialism and democracy. New York: Harper.

 

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The Small Business Entrepreneur and Social Capital


Although people think of small business entrepreneurs as innovators, wealth creators, and as the major source of jobs and economic growth, often they ignore one other important role. The entrepreneur serves as an outlet for social issues. The global market has created a void because sovereign governments no longer represent people’s interests. Multinational monopolies espouse their own values and promote their own self-interests leaving a hole in promoting the social values of society (Bull, Ridley-Duff, Foster, & Seanor, 2010).

Small business entrepreneurs take advantage of opportunities by taking advantage of opportunities to find innovative solutions to consumer’s problems. The entrepreneur is closer to the consumer and identifies gaps and tries to fill them. Pinelli (2011) described entrepreneurs as creating their own values and culture unlike people working at mature companies. Small business founders are nonconformists and good team players. Entrepreneurs see prospects for breakthroughs where others see trouble. Entrepreneurs like social interaction and excel at networking.

Now is the time to promote small business entrepreneurship representing society’s values. Multinational monopolies want to crowd out or exploit entrepreneurial innovations fearing new competition. Small business entrepreneurs can play a major role in voicing the social interests of society. Baumol (1990) explained economic growth flourishes in times when conditions are right for entrepreneurship. In times when governments suppress entrepreneurship, economic decline results.

Entrepreneurs are the voice of the people. Through social networks entrepreneurs can play an important role in economic recovery to restore social values. Small business entrepreneurs through global networks can yield more power than multinational monopolies. Learn more.

References

Baumol, W. J. (1990). Entrepreneurship: Productive, unproductive, and destructive. Journal of Political Economy, 98(5), 893-921. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=9103252727&site=bsi-live

Bull, M., Ridley-Duff, R., Foster, D., & Seanor, P. (2010). Conceptualising ethical capital in social enterprise. Social Enterprise Journal, 6(3), 250-264. doi: 10.1108/17508611011088832

Pinelli, M. T. (2011). Nature or nurture? Decoding the DNA of the entrepreneur. Kauffman: The Foundation of Entrepreneurship, 1-27. Retrieved from http://www.entrepreneurship.org/en/resource-center/~/media/Entrepreneurship/Files/Resource%20Center/Nature_or_nurture_FINAL.pdf

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