Humane Entrepreneurship 2021

ICSB GLOBAL REPORT EDITORS

DR. AYMAN EL TARABISHY,

DR. KICHAN KIM,

PRESIDENT PRESIDENT & & CEO, CEO, ICSB ICSB

PROFESSOR, PROFESSOR, CATHOLIC CATHOLIC UNIVERSITY, UNIVERSITY, FORMER FORMER PRESIDENT PRESIDENT OF OF ICSB ICSB

SPECIAL THANKS TO THE CATHOLIC UNIVERSITY OF KOREA FOR SPONSORING THE HUMANE ENTREPRENEURSHIP 2021 CONFERENCE. AND SPECIAL THANKS TO SMALL BUSINESS HORIZON MAGAZINE FOR SUPPORTING THE CONFERENCE.

CONT

INTRODUCTION

OPENING

SESSION 2

SESSION 3

SESSION 4

SESSION 5

CLOSING

CONCLUSION

ENTS

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: Ahmed Osman, former Chair of the Board, ICSB Ayman El Tarabishy, President and CEO, ICSB Analia Pastran, founder and CEO of Smartly Social Entrepreneurship David Kirby, co-founder of Harmonious Entrepreneurship Society Indu Khurana, Assistant Professor, Hampden-Sydney College Ivea ZeBryte, Academic and Researcher, Facultad de Ciencias Juridicas y Empresariales Jeff Hornsby, Director of the Regnier Institute for Entrepreneurship Innovation Jugho Suh, Assistant Professor, George Washington University School of Business Ki-Chan Kim, Professor of Management, The Catholic University of Korea; former ICSB president Mariya Yesseleva-Pionka, Global Certificates Manager, ICSB; Adjunct Professor, University of Technology Sydney Mike Tadesse, Founder, Happy Plate Norris Krueger, Senior Research Fellow at the College of Doctoral Studies, UOPX & Entrepreneurship Northwest Phillipp Kruse, scientific staff member at the Dresden University of Technology Shoroke Zedan, Executive Director, Ta’heal for VET Skills Excellence Skye Blanks, Junior Project Manager and KHub Director, ICSB

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) risktaking, 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, CLICK HERE TO WATCH THE SESSION ON YOUTUBE.

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“HUMANE ENTREPRENEURSHIP IS TO HIRE PEOPLE WHO BELIEVE WHAT YOU BELIEVE.”

CONFERENCE OPENING -

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PARALLEL 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

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SESSION 2 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

"THIS INTERSECTIONALITY IN ENTREPRENEURSHIP SERVES AS THE KEY FOR UNLOCKING SOLUTIONS TO THE UNIVERSAL ISSUES FACING US"

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, CLICK HERE TO WATCH THE SESSION.

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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.

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 longterm, positive change for our environment, communities, and ways of life.

PARALLEL SESSION 3

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 YesselevaPionka, 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.

FOR MORE ON THE IMPORTANCE OF ENTREPRENEURIAL EDUCATION, CLICK HERE TO WATCH THE SESSION ON OUR YOUTUBE CHANNEL.

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“WHEN TEACHING ENTREPRENEURING, WE SHOULD BEWORKING 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.”

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.

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 nonpsychological 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.

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 beworking 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.

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, CLICK HERE TO WATCH THE SESSION.

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PARALLEL SESSION

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THE ROLE OF HUMANE ENTREPRENEURSHIP IN THE DIGITAL WORLD POSTCOVID 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, CLICK HERE TO WATCH THE SESSION.

AHMED OSMAN IMMEDIATE PAST CHAIR, ICSB

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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, CLICK HERE TO WATCH THE SESSION VIDEO.

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ONCLUSIO

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: Engaged CEOs lead to happier employees. Happier employees lead to happier companies and better business outcomes. Better business lifts economies and entire countries out of hardship.

Holistic views of entrepreneurship and understanding intersectionality will propel us into an inclusive future.

Education is of the utmost importance so that we can bring widespread awareness to the issues at hand, as well as empower the next generation of entrepreneurs.

Considering the role of technology and its impacts on humanity is pivotal as we shift to an increasinglydigital world.

It is vital that we find commonalities across cultures and countries so that we all share a way forward, even if it does not necessarily look like one uniform path for all.

To set us up for the future, we must examine the past and present and not simply sweep any hardships under the rug.

Above all else, people come first.

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.

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SPEAKERS AYMAN EL TARABISHY

KI-CHAN KIM

AHMED OSMAN

ROBERTO PARENTE

MARIYA YESSELEVA-PIONKA

IEVA ZEBRYTE

DAVID KIRBY

NORRIS KRUEGER

INDU KHURANA

JUNGHO SUH

JEFF HORNSBY

DEV DUTTA

PHILLIPP KRUSE

SHOROKE ZEDAN

ANALIA PASTRAN

MICHAEL TADESSE

JSBM SPECIAL ISSUE ON HUMANE ENTREPRENEURSHIP JOURNAL OF SMALL BUSINESS MANAGEMENT, VOLUME 59, ISSUE 3 (2021) CONTEMPORARY PERSPECTIVES ON SOCIAL AND HUMANE ENTREPRENEURSHIP The Journal of Small Business Management (JSBM) and the International Council for Small Business (ICSB), in collaboration with a team of leading Humane Entrepreneurship researchers, are pleased to present this special issue examining “Contemporary Perspectives on Social and Humane Entrepreneurship.” This special issue comes at a crucial moment as we sit at the precipice of life in a post-COVID world. The articles to follow embody the global movement toward a more humane and just economy and world. This special issue’s format combines three articles approved by the guest editors, followed by three articles from JSBM’s current inventory of accepted work in the domain of social and humane entrepreneurship: Understanding how and when personal values foster entrepreneurial behavior: A humane perspective Susana C. Santos, Xaver Neumeyer, António Caetano & Francisco Liñán Humane Entrepreneurial Framework: A model for effective corporate entrepreneurship Ki-Chan Kim, Jeffrey S. Hornsby, John Laurence Enriquez, Zong-Tae Bae & Ayman El Tarabishy The influence of religion on the humane orientation of entrepreneurs Indu Khurana, Amarpreet Singh Ghura & Dev K. Dutta Conditioned to care: Gender differences in entrepreneurs’ socially responsible behaviors Whitney Peake & Kimberly Eddleston What motivates social entrepreneurs? A meta-analysis on predictors of the intention to found a social enterprise Philipp Kruse, Dominika Wach & Jürgen Wegge Humane entrepreneurship: Some steps in the development of a measurement scale Roberto Parente, Ayman El Tarabishy, Antonio Botti, Massimiliano Vesci & Rosangela Feola

ADDITIONAL FEATURED ARTICLES ON HUMANE ENTREPRENEURSHIP Humane Entrepreneurship: How Focusing on People Can Drive a New Era of Wealth and Quality Job Creation in a Sustainable World Ki-Chan Kim, Ayman ElTarabishy, Zong-Tae Bae The Epistemology of Humane Entrepreneurship: Theory and Proposal for Future Research Agenda Roberto Parente, Ayman ElTarabishy, Massimiliano Vesci, Antonio Botti

HUMANE ENTREPRENEURSHIP – THINKING PAPER SERIES ISSUE 1 IS HUMANE ENTREPRENEURSHIP THE RIGHT ENTRY POINT TO FIND AND DEPLOY SOLUTIONS TO THE GLOBAL CHALLENGES HUMANITY FACES? If you had the chance to decide which was the biggest challenge facing the globe, could you choose? If you were then tasked with finding a solution and acting on it, could you meet the challenge? We all know our world faces many complex issues with too few answers. Most citizens look to governments or governmental agencies to find and implement solutions. But are the vexing global issues we face things that only political entities should be looking at and acting on? What about all of us, everyday citizens who aren’t involved in making laws, policies, and widespread reforms? We at ICSB believe it comes down to the concept of Humane Entrepreneurship.

In September 2000, the United Nations issued the Millennial Declaration, from which the Millennium Development Goals (MDGs) were articulated with the aim of halving poverty and reducing extreme poverty by 2015. As 2015 came and moved along, the UN was forced to acknowledge that though some progress was made, it was obviously short of achieving its objectives. It also became clear that governments and politicians couldn’t handle the job alone, but all actors including the private sector—and their employees who relied on the earth for life—needed to be actively working towards the same goals, rising to meet the challenge and being part of the solution.

So, in 2015, the UN and nearly all its member states expanded on the MDGs, coming up with a more ambitious set of new goals—a total of 17 Sustainable Development Goals (SDGs). Many of these goals require innovation, entrepreneurship, and business solutions in order to be reached. ICSB members felt that they had the right mix of approaches to answer the call.

Created to support small and medium-sized enterprises and entrepreneurs, ICSB stands on four pillars: Education, Research, Policy, and Practice. Together, these four pillars create a formidable foundation to analyze challenges as well as devise and deploy solutions through the collective knowledge and creativity of many minds. So, when the UN’s SDGs were created, we knew we had the right basis to address them. How would we contribute to the solution? For us, it started with one element.

At ICSB, we believe that Humane Entrepreneurship is the right entry point to find and deploy solutions to the global challenges humanity faces and help reach the 2030 SDG targets. With a focus not just on business or wealth but performance and sustainability, the idea of Humane Entrepreneurship really hones in on the three dimensions of the SDGs—social, environmental, and economic. Businesses that are beneficial to humanity and respectful of earth’s precious natural resources, while being economically viable and sustainable, defines enterprises of the future. What does this concept of Humane Entrepreneurship fully entail? We’ll discuss that more in-depth in the next article in our Thinking Paper Series “Humane Entrepreneurship as a Concept.” ~ In the progress of this discussion, I shall endeavor to give a satisfactory answer to all the objections which shall have made their appearance.~ Written by Dr. Ayman El Tarabishy ICSB Executive Director Deputy Chair, Department of Management GW School of Business Washington DC aymanelt@icsb.org

HUMANE ENTREPRENEURSHIP IN ACTION IN GUIDING OUR ACTIONS TOWARDS HUMANE ENTREPRENEURSHIP, WE CAN BE AN ORGANIZATION THAT DOES NOT ONLY PREACH ABOUT HUMANE ENTREPRENEURSHIP BUT ONE THAT ALSO PRACTICES IT. Following our reflection last week discussing the “End of the Status Quo,” we think it is time that we seriously share and discuss the steps that ICSB has and will continue to take as we endlessly strive towards a more humane-centered way of acting entrepreneurially in this world. Over the past couple of months, we have reflected upon the theory and practice of Humane Entrepreneurship. Now, it is time to move beyond thinking and imagining; now is the time to model Humane Entrepreneurship.

As promoters and upholders of Humane Entrepreneurship, what an excellent opportunity we have to exemplify the practice ourselves! Given the perspective-altering moments of the past couple months, ICSB has been able to genuinely narrow in on what is important to us as an organization, including our values, the organization’s sustainable practices, and our collective community. Flowing from this reflection, ICSB has worked to center all of our programmings around the interests of our members as well as new and pressing topics that we see as crucial to the formation of our community. We are centered around the human, being empathetically oriented to the whole person and not just the sliver of our members’ lives, which pertains to ICSB. We have attempted to curate an empowering environment, working consciously to open up opportunities to women and younger entrepreneurs. Enablement has and continues to develop as we formalize programs, bolster the ICSB Gazette, and continuously try to discover new and enticing opportunities for our members. ICSB models the equitable work of Humane Entrepreneurship as we provide discounts for members from developing nations, ensuring that all voices are brought to the table, and work to promote MSMEs for the achievement of the United Nations Sustainable Development Goals.

As we are continually attempting to show up as our best selves for this community, we recognize that we have a way to go to reach the peak of the Ideal orientation for our Humane Entrepreneurship categorization.

Reaching for this Ideal status, at ICSB, we are focusing on ways that we can formalize our desire to promote a human-focused conscious while creating sustainable patterns of growth. It is from this place of discovery; we have created the ICSB Resiliency program.

This program focuses on supporting the individual. It combines ICSB’s top-level programs into one calendar and cost so that you can fully engage with the learning available to you. Finishing with an ICSB diploma and a heightened understanding of your entrepreneurial interests, this formal connection to ICSB offers and opens clear pathways of communication with ICSB leadership, which will be ever more critical as you become be a vital role in leading the ICSB community as well as the local community to the 2021 ICSB World Congress in Paris.

Being the first of its kind, the ICBS World Congress will bring Humane Entrepreneurship to “l’Exposition Universelle,” so that entrepreneurship and SMEs can take the lead in ushering the world into peace, prosperity, and happiness. This event works innovatively and creatively to bring together all voices throughout the field of entrepreneurship so that we can pull down the unnecessary walls that keep communication and support at a distance from the people that need it the most. In moving into Humane Entrepreneurship, we are building a resilient community that can succeed no matter the circumstances.

We look forward to you joining us on this journey to and with Humane Entrepreneurship. ICSB recognizes the necessity to both offer and realizes a humane-entrepreneurial orientation (H-EO), meaning that we are concurrently advocating and partaking in the widespread adoption of HumEnt. In knowing that “large-scale organizational performance effects are more likely to occur as a result of shared cultural values and beliefs that are accepted by organization members,” we must work individually for the greater collective. In guiding our actions towards HumEnt, we can be an organization that does not only preach about Humane Entrepreneurship but one that also practices it.

References: Kim, K., A. El Tarabishy, Z. Bae (2018). “Humane Entrepreneurship: How Focusing on People Can Drive a New Era of Wealth and Quality Job Creation in a Sustainable World,” Journal of Small Business Management 56(S1), 10–29.

Article by: Dr. Ayman El Tarabishy President & CEO, ICSB Deputy Chair, Department of Management, GW School of Business

SDGS AND HUMANE ENTREPRENEURSHIP WE AS HUMAN LEADERS, EMPLOYEES, BUSINESSES, ETC. MUST, IN FACT, CHANGE OURSELVES AND OUR ATTENTION IN ORDER FOR THE SDGS TO WORK.

Being the Change, You Wish to See The United Nations Sustainable Development Goals seem to be the most united and comprehensive guide in which our global community might simultaneously survive and heal its inequalities that have been plaguing our world. Resulting from historical injustices, the world is far from equal. As mentioned earlier in this series, the concept of Humane Entrepreneurship (HumEnt), regarded on a large scale, poses our only survival mechanism to enable the achievement of the United Nations Sustainable Development Goals (SDGs).

However, one grand mistake that we are collectively recreating in regards to sustainable change and promotion of the SDGs is that we forget that we as human leaders, employees, businesses, etc. must change ourselves for the SDGs to work.

More clearly, the achievement of the SDGs is not solely a means to create a more just world; however, more so, they are the end, the results of our ability to highlight and focus our attention on the humane, or to care for our fellow humans. Currently, many, but certainly not all, enterprises are focusing on profit. They forget the power of benefit, meaning the potential benefit an enterprise could have on its community, its customers, and the environment. That is why I pose that the SDGs’ success will be determined by our ability to instill, or at least introduce, the principles of Humane Entrepreneurship to our students, mentees, and future leaders in their formative years.

By nurturing future and current entrepreneurs, and in so doing, exhibiting the principles of HumEnt ourselves, we might be able to demonstrate a tangible image of how the Sustainable Development Goals will be achieved. Teaching the Sustainable Development Goals is much more than sharing the 17 goals and understanding how they work interconnectedly with each other; it is about helping learners understand how they both affect and are affected by the Sustainable Development Goals. It is in seeing how we are part of the same system for which the SDGs were created that will ultimately allow us to move beyond accepting the current injustices of the world as just “how it is” and understanding how, by refocusing our values, we might create the world anew.

It is for this reason that ICSB has concurrently launched the SDG certificate program and the ICSB Educator 300. These two programs are dependent on each other. In building the Educator 300, ICSB is committing to gathering a group of educators who are ready to evolve so that entrepreneurship education can adapt to societal changes. However, to prepare educators for the future ahead, training in the study and practice of HumEnt is essential. The SDG certificate program complements this new educator platform as it both helps to provide educators with the necessary knowledge of today while introducing the results of including HumEnt in program design and instruction.

Humane Entrepreneurship is not only for the boardroom. It is a lifestyle choice. To center empathy, equity, enablement, and empowerment in our teaching and leading is a decision that we must make for ourselves.

The future is bending towards HumEnt, and we, at ICSB, want to prepare all our members for this mighty change. These changes are right at our fingertips, let’s decide to welcome these future changes, and in turn, be the changes we are so accustomed to studying. The future begins with us.

Let’s get started.

Article by: Dr. Ayman El Tarabishy President & CEO, ICSB Deputy Chair, Department of Management, GW School of Business

HUMANE GONE MAINSTREAM: THE ESG GENERATION ARRIVES THE ESG GENERATION WILL COLLABORATE ON MUTUALLY BENEFICIAL WAYS OF RECREATING THE BUSINESS ECOSYSTEM IN A MORE JUST AND HUMANE IMAGE. As we think about the coming months and the start of the end of the COVID-19 pandemic, there are important lessons to consider regarding the global economy’s revitalization. This specific period of volatility will subside, but it will be replaced by a permanently shifting economic landscape in the face of climate change. Investors, specifically micro-small and medium-sized enterprises, have weathered the most challenging moments of the past year, but there is minimal safety net left. There will be an ever-increasing need to invest strategically and frugally, with magnified consequences for those who fail to adapt to emerging market trends. Therefore, the most important factors to consider are and will continue to be sustainability and frugal innovation.

How do we incorporate these ideals into the increasingly volatile business ecosystem? Morgan Stanley Investment team addresses this in a recent investment report, “A holistic approach to sustainability—concerning disruptive change, financial strength, environmental and social externalities, and governance (also referred to as ESG)—helps us identify investment opportunities. The Global Opportunity Team has been investing since 2006 with continual evolution and innovation.”

This focus on ESG shows a significant shift underway that emphasizes human-centered (humane) investment and begins to change the emphasis on business development from quantity to quality. Finding ways to standardize these practices and create opportunities to expand at scale will be crucial in capitalizing on this emerging market.

However, the ongoing change within the business world cannot be confined to strictly environmental factors.

We are on the cusp of an era that is pressured by younger generations with radically different ideas about the future than the people who have come before. The emergence of social media and the creation of “going viral” has permanently altered the business world’s fundamentals and how we relate to one another.

The increasingly prominent role that business schools play in university settings reinforces the coming generational shift and thought revolution. The rise of a new age of business ideas and the development of humane and sustainable investment strategies are inextricably bound to the explosion of business schools across the country, and the increasing role business and finance have in popular culture. Business found a way to go mainstream, and we’ve seen the consequences of this unfold, most recently with the Wall Street Bets and the un-traditional exploitation of the stock market by a group of individuals on the internet. The next step is finding ways to use the incredible grassroots energy and exposure to push humane, sustainable business and investment strategies instead of risky short-term stock blitzes. The education sector will have a pivotal role to play in discovering and standardizing methods like ESG. These factors show that there is a desperate need for a new and innovative way of approaching investments.

The individuals and businesses that can take advantage of these innovations will be positioned to succeed despite uncertain times ahead. Growing evidence suggests that ESG factors, when integrated into investment analysis and portfolio construction, offer investors long-term performance advantages. But people must be put in a position to succeed. I believe in creating space for like-minded individuals and businesses to collaborate on mutually beneficial ways of re-creating the business ecosystem in a more just and humane image.

Let us welcome the ESG Generation powered by Humane Entrepreneurship.

I have been anxiously waiting for you.

Quote from: https://www.morganstanley.com/im/publication/insights/investmentinsights/ii_esgandthesustainabilityofcompetitiveadvantage_en.pdf

CENTERING INNOVATIVE SOLUTIONS FOR TANGIBLE CHANGE In conjunction with last Saturday’s Reflection on the importance of Research with Impact, this week’s Reflection challenges us to think about ways to implement innovative solutions that focus on providing explicit, material benefits and resources to those who need them most.

Here at ICSB, we strive to be a useful and impactful resource for MSMEs and other individuals looking for an informed, educational, and empathetic analysis of the current business ecosystem. We believe that our focus on Humane Entrepreneurship and our emphasis on empowering atypical actors in the current business environment provides a blueprint for the future while maximizing potential and sustainability in the present.

However, in general, educational resources and knowledge can only be valuable if they result in real, tangible changes to our day-to-day realities. The rapid advancement of technology and the explosion of the digital economy have multiplied how businesses and entrepreneurs can make an impact and translate their knowledge and lived experience into positive social improvement.

This advancement of technology and the opening of new economic frontiers is an encouraging sign for us to believe positive change is necessary and inevitable. Our increased data capacity has led to an explosion of innovative ideas and solutions to problems that have plagued businesses and investors for decades while empowering those atypical actors that have been overlooked for far too long.

We must make sure data do not freeze us. Too often, businesses and entrepreneurs become consumed with collecting and analyzing data in the hopes of crafting a “perfect” solution to the diverse set of challenges we face. The sheer size of the digital sphere has overwhelmed those in power with information.

Is this cautious approach not in direct conflict with the very spirit of entrepreneurship?

The people who take the risk to pursue their passions and interests in the hopes of improving their communities and lives cannot afford to wait for the perfect situation or the right numbers to illuminate the way. Conditions are not always ideal, and the enormous benefit of MSMEs is often felt by those caught up in challenging circumstances. Life is about being bold, trying new things, and pushing forward despite the protests of those around you. Progress is impossible otherwise.

At ICSB, we believe that tying ‘Research with Impact’ to the practice of sustainable and bold innovation is the only way to move toward progress consistently. Just as our research means little without action, we must be sure that our efforts are backed up by proper, people-centered research that emphasizes transparency, accountability, and communal involvement. The relationship between studying the problems and working on solutions must be firm and flexible.

The COVID-19 pandemic has shown us the benefits of acting quickly and confidently in the face of an overwhelming obstacle and the consequences of pretending that the obstruction does not exist. Putting ideas into practice and providing marginalized, atypical actors with actual institutional power is the only way to ensure the long-lasting impact we make. For too long, those in power have tried to pay lip service to equity and diversity. In the face of our modern-day challenges, talking the talk is no longer good enough from the pandemic to climate change. Together, we must face the challenges of the future head-on and walk towards a better world.

This is why I write to you about the business’s practical side for our last Saturday Reflection of 2020. As we are propelled forward into a new world and a new year, let’s be sure to center the real and actual work of entrepreneurs and small business owners. Through the ICSB Marketplace, a featured program at the 2021 World Congress, we hope to empower this tangible action towards supporting the needs and desires of entrepreneurs because it is here where real entrepreneurship flourishes.

Article by: Ayman El Tarabishy, President and CEO, ICSB Deputy Chair, Department of Management