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Episode 2 (Speak)
Definition of Entrepreneurship
Opening – Good Day to everyone. In my last episode 1, I made an introduction on the difference between Entrepreneurship and Leadership in general terms. In my subsequent episodes in the next few weeks I shall provide a scriptural-informed insight, and biblical value-shaped understanding of vocational entrepreneurship in business. Today, Episode 2 titled “Definition of Entrepreneurship”.
Entrepreneurship and business may sound the same, but there is a fundamental difference. A typical businessman will quote, “We will remain committed to this market to enable long-term success in profits, but must ensure we structure strategically to drive yearly revenue growth of at least 25% by delivering good customer services with new products,” whereas an Entrepreneur will quote, “We shall remain committed to this share of the market by tapping whatever potential resources available to us. Our employees are the keys to our success in this business because once they are appropriately empowered, any decision made will bring about goods for the entire company.” As such entrepreneurship focuses on the long-haul, preparing to take higher risks while considering the employees’ welfare.
The function of entrepreneurship is delicate and complex at times. It could operate under many constraints such as finances, manpower, individual full responsibility (if not a working team), external environment and marketplace uncertainties. Otherwise, many will just define entrepreneurship is simply running a commercial operation to make profits. There is a difference between a “businessman” and an “entrepreneur”, and although one can be both. What distinguishes entrepreneurship is a person’s attitude. Bruce Bachenheimer, a clinical professor of management and executive director of the Entrepreneurship Lab at Pace University said,
“Entrepreneurship is much broader than the creation of a new business venture. At its core, it is a mind-set – a way of thinking and acting. It is about imagining new ways to solve problems and create value.”
M.J. Gottlieb, co-founder of consulting firm Hustle Branding and author of “How to Run a Business Without Really Trying” said,
“An entrepreneur is someone who can take any idea, whether it be a product and/or service, and have the skillset, will, and courage to take extreme risk to do whatever it takes to turn that concept into reality and not only bring it to market but also make it a viable product and/or service that people want or need.”
Both Bachenheimer and Gottlieb concluded that an entrepreneur is a creator of something out of the norm (think out of the box) in an unprecedented endeavour to capture a new market. If he/she wants to be a winner, he/she must never give up. Nelson Mandela said, “A winner is a dreamer who never gives up.” The creative entrepreneur instigates a new value or adds value in the usefulness of a product to meet both current and future needs. Any new creation of services or products is high risk in the event of market unacceptance and/or sudden changes of political and economic circumstances.
There are two types of wealth. Individual wealth and social wealth. The former is placed in the possession of the individuals who are either successful in their business endeavour or inherited their riches from generational inheritance. The latter is placed at the disposal of the common good where social- and civil-oriented business entities provide opportunities for people’s employments.
Figure 1 – Individual Wealth (left) and Social Wealth (right)
Biblically, God condemns wealth not placed at the disposal of those who need it for their livelihood. However, God will not condemn the social wealth that comes from a creative contribution to the common good made by legitimate entrepreneurial activities. Social enterprise is one where the element of “charity” is initiated to have community interest in mind. However, revenue generating initiative still prevail. Mixing business and charity may be confusing and discomforting, for goals and philosophies can differ vastly. Broadly speaking, a social enterprise is an organisation that applies commercial strategies to maximise improvements in human and environmental well-being – this may include maximizing social impact, alongside of making profits for shareholders. Maximum profit is never in the mind of social entrepreneurs. These entrepreneurs see the need to bring about benefits to certain societies, which need to be elevated from such disadvantages as severe poverty in that culture or people group.
A person who pursues an innovative idea with the potential to solve a community problem. These individuals are willing to take on the risk and effort to create positive changes in society through their initiatives. Examples of social entrepreneurship include microfinance institutions, educational programs, providing banking services in underserved areas and helping children orphaned by epidemic disease. The main goal of a social entrepreneur is not to earn a profit, but to implement widespread improvements in society including employments for the community. However, a social entrepreneur must still be financially savvy to succeed in his or her cause.
Social enterprise can be structured as for-profit or non-profit, and maybe in the form of a co-operative, mutual organization, a disregarded entity, a social business, a benefit corporation, a community interest company or a charity organization. (This depends on which country the entity exists in and the legal forms available) They can also take a more conventional structure.
What differentiates social enterprises is that their social mission is as core to their success as any potential profit. Sometimes, social enterprise may have to operate alone within the limited resources. Mother Theresa said, “I alone cannot change the world, but I can cast a stone across the water to create ripples.” Truly, while serving wholeheartedly in the poverty-stricken city of Calcutta (Kolkata) in North-East India. She made great influence on social enterprise works in India. Social entrepreneurship is leadership that takes responsibility to create an environment of communities transformed from poverty and untapped resources to benefit the communities at large, while not necessary making monetary profit.
Figure 2 - Mother Theresa said, “I alone cannot change the world, but I can cast a stone across the water to create ripples.”
“Let’s have a brief look of two examples of how the formation of social enterprise came about. It was always due to some situations arose that concerned the communities.
In June 1844, Sir George Williams of England gathered a group of 12 young businessmen to meet in his drapery shop at St. Paul’s Churchyard, London. The objective of the meeting was to create an improvement in the spiritual condition of the young men engaged in houses of business, by the formation of Bible classes, family and social prayer meetings, mutual improvement societies, or any other spiritual agency. Hence YMCA was founded in London by Sir Williams. Over a period of 10 years, YMCA movement spanned across Western Europe, North America, Australia, New Zealand and Indian.
Closer to the author’s home in Singapore,
NTUC (National Trade Union Congress) FairPrice was first established on 22 July 1973 as NTUC Welcome Supermarket in Toa Payoh, to solve the daily oil and daily prices then rising to inflation. Without profit-making in mind, the quick action of NTUC agency brought inflation to a much more managing level. Then Singapore Prime Minister Lee Kuan Yew opened the first supermarket at Block 192, Toa Payoh Lorong 4, and it was the first of its kind. Around the same time, other unions such as the Singapore Industrial Labour Organisation and Pioneer Industries Employees Union also set up co-operatives to run supermarkets. The two organisations later merged in the early 1980s to form the Singapore Employees Co-operative (SEC).
The success of these two social entrepreneurships is attributed to the continuous effort of the organizations to hold fast to the philosophical calling, while making improvements and adjustments over times.
Ending - Thank You for listening and please stay tuned with us in my next Episode.
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