Small Business Horizon - War & Entrepreneurship by Ayman Eltarabishy

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ENTREPRENEURSHIP S P R I N G 2 0 2 2 | I S S U E N O . 6 | M AY 1 2 , 2 0 2 2

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WE ADVANCE TOGETHER Letter from the Editor As we mark two years of Small Business Horizon, the social and economic consequences of the COVID-19 pandemic are being felt profoundly. The uneven recovery from COVID-19 risks to further entrenching these global inequalities. War is raging in Europe, and it's negatively impacting the world. It might not seem like it's being guided towards Humane Entrepreneurship but look around. The world is standing up and fighting to honor humanity. So when companies pivot their creative solutions to aid those suffering in any war, it is the correct way forward. Dr. Ayman El Tarabishy formulated a proposal for a United Nations Day for Micro Small and Medium-sized Enterprises (MSMEs); he intended to see a day in which all countries, stakeholders, and companies might celebrate the importance of MSMEs as the core units of modern society. Furthermore, MSMEs Day would act as a platform from which the global community could build ideas, synergies, and initiatives to help MSMEs prosper and grow while swiveling international attention towards these smaller units. Last year, I asked you to envision a world built around the most vulnerable. I requested that we center our energies on those who need them the most and then, from that place, work to create informed policies that generate a resilient entrepreneurial ecosystem. We need this urgently now.

Dr. Ayman El Tarabishy is the deputy chair and teaching professor of the Department of Management at the George Washington University School of Business and the ICSB President & CEO.

04 A B OU T T HE EDI T OR

07 F rom Digi ta l Re vol u t ion B ack t o t he B a r t er Sys t em in One Day

11 En t rep reneur ship a round t he Gl obe: “A l eopa r d ne v er ch a nge s i t s sp o t s!"

15 T he En t r ep r eneur i a l L eopa rd

22 Wa r & En t r ep r eneur ship

28 T HE Da r kside of En t r ep r eneuri a l Ec o s ys t ems: W e Wor k C a se S t udy

34 F u t ure of Au t om at ion

37 Educ at ion a nd Hum a ne En t rep reneur ship

40 Hum a ne, S u s ta in a bl e, & H a r moniou s En t rep reneur ship : Shif t ing t o a More Hol is t ic P er sp ec t i v e of En t rep reneur ship

Hum a ne En t rep reneur ship & MSME s in a Dy n a mic Worl d

ABOUT

THE EDITOR Dr . Ayma n El Tarabishy Dr. Ayman El Tarabishy is the deputy chair of the Department of Management and a teaching professor of management at the George Washington University School of Business. His expertise

Dr. Ayman El Tarabishy is the deputy chair and

involves entrepreneurship and creative, innovative, humane-fo-

teaching professor

cused practices. In addition, Dr. El Tarabishy is the president & CEO

of the Department of

of the International Council for Small Business (ICSB), the oldest and largest non-profit organization devoted to advancing small

Management at the

business research and practices. The council is a coalition of more

George Washington

than 23 knowledge hubs represented in over 150 countries. Dr. El Tarabishy is an award-winning author and teacher. In 2022, he was awarded the "Outstanding Accelerated Master of Business Administration Faculty Award." In 2021, the "Outstanding Online & Healthcare Master of Business Administration Faculty" award was voted on entirely by students. In addition, the George Washington University New Venture Competition awarded Dr. El Tarabishy the "Most Influential Faculty" award in 2019. Dr. El Tarabishy also developed the first social entrepreneurship, innovation, and creativity courses offered to MBA and undergraduate students.

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University School of Business and the President & CEO of ICSB.

Remembered as one of his most outstanding

Dr. El Tarabishy is the editor-in-chief of the Jour-

achievements, Dr. El Tarabishy played a central

nal for Small Business Management (JSBM). JSBM

role in creating and promoting the United

aims to publish scholarly research articles in small

Nations Micro, Small, and Medium-Sized Enter-

business management and entrepreneurship.

prises (MSMEs) Day. The United Nations and the

JSBM has an impact factor of 4.544 and is circu-

Permanent Mission of Argentina to the United

lated in over 130 countries worldwide.

Nations recognize that this Name Day is designated on specific dates to mark particular events

Dr. El Tarabishy previously worked for the

or topics to consciously and actively promote the

World Bank's Corporate Strategy Group. He

organization's objectives. With his novel idea,

assisted in developing and managing their tech-

Dr. El Tarabishy managed to work closely with the Permanent Mission of Argentina to propose a resolution to dedicate a United Nations International Name Day to MSMEs. Approved

the

United

Nations General Assembly, the proposal was presented by the

June 27th has been recognized as the official UN MSME Day from that day forward.

Permanent Mission of Argentina and 54 countries; thus, 5.5 billion people acted as co-signers of this resolution. From that

nological strategy for the Developmental Marketplace Program. This program set out to identify and support the creation of cutting-edge solutions to the world's most pressing social and economic concerns. The Global Development Marketplace compe-

tition has granted over the U.S. $125 million awards to 650 winning proposals.

day forward, June 27th has been recognized as the official UN MSME Day.

While assisting the U.S. Chamber of Commerce, Dr. El Tarabishy aided in developing effective

Dr. El Tarabishy created and managed the Global Entrepreneurship Research and Policy Confer-

methods to engage in business in Egypt. As a result, his created program, aimed to promote

ence (GWOctober.org), an international confer-

social development and trade, was adopted by

ence hosted by George Washington University.

the most critical U.S. delegation mission to Egypt.

This conference combines the latest and most cutting-edge entrepreneurial research with the

Continuing to consult and conduct executive

most pressing and vital intra- and international

training for several national and international

policies for promoting entrepreneurship and

organizations, Dr. El Tarabishy's clients include

MSMEs. The conference's modern intersections

the International Finance Corporation (IFC),

have brought the conference to high standings

the World Bank, and the National Federation of

regarding global development.

Independent Businesses (NFIB).

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From Digital Revolution Back to the Barter System in One Day Dr. Mariya Yesseleva-Pionka, PhD

We have been witnessing a digital revolution worldwide which affected all industries, especially with the evolution of digital payment methods. The global connectivity due to the introduction of the Internet allowed for the flow of information, payments, emails, texts, to name a few. We all so quickly got used to having a mobile phone that gave us quick and easy access to all the banking and finance needs, exchange of data, verbal, video and text communication. The IT industry has flourished over the years by introducing new software, Apps and programs with a greater emphasis on mobile phone users. An everyday consumer has rapidly accepted online bank cards, online banking and investment systems, digital cash, online roboadvisers, trading in cryptocurrencies and other digital tokens mainly because they were introduced with user-friendly mobile interfaces. Kazakhstan, which used to be part of the USSR, gained its independence back in 1991, is the largest country in the Central Asian region. The banking sector

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

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

Large supermarkets and malls were closed, none of the point of sale terminals were working, and none of the bank cards were accepted. When going to the small local shops to buy bread and milk, the ordinary citizens were asked to pay with cash only as all the cashier online payment systems were not operating. Everyone had money in their bank accounts but could not access them to pay for essential goods. People did not have any cash savings at home as they got used to mobile phone cashless payment systems. After a few days, while queueing for food, some people were desperate to buy necessary items but had no cash to pay

Recognising how to manage and deal with unforeseen financial events is essential for every ownermanager.

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for them. They started asking people if they were able to give some money in exchange for expensive phones and other valuable items; others were asking shop owners to provide food in exchange for valuable items. In the emergency state, the barter system started its operation. What happened in Kazakhstan is unprecedented but makes us all think about the key questions: Are we ready for the digital world? Are we ready to have only digital means of payments? What happens to us and our daily lives once the Internet goes down due to various reasons? What happens to technology, the finance and banking sectors, and, most importantly, payment methods in the absence of the Internet and global connectivity? What will be the value of cryptocurrencies and other digital tokens when there is no access to the Internet?

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Journal Of Small Business Management ADVANCING ENTREPRENEURSHIP RESEARCH WORLDWIDE

Call for submissions from around the world. JICSB Issue II highlights the challenges of MSME sustainability, a critical topic for meeting the UN's 2030 Development Goals. Now being released while much of the global community still exists in the midst of the crisis, the topic of sustainability is even more important. Share your research as we move through the social and economic recession with the release of government programs. Share your views on what you believe will be needed at the level of policy and practice. You can submit an idea for a research paper or case study, and the Editor will review it within 48 hours and send you a RESPONSE if considered for immediate publication in the next issue.

SUBMIT HERE

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Entrepreneurship around the Globe: “A leopard never changes its spots!" Leo-Paul Dana | Rowe School of Business, Dalhousie University, Canada Aidin Salamzadeh | Faculty of Management, University of Tehran, Iran

Many people believe that doing business is just about selling something. Although this could be true, one cannot neglect the importance of where we do such activities. As mentioned by Peter Drucker: “culture eats strategy for breakfast”. The context reveals the playground in which we could win or lose. While a businessperson could succeed in a context, he or she might not even be able to compete in another context. The culture could motivate people or kill their creative spirit. Hopefully, many intellectuals and authors have already highlighted its importance, but how it could affect business activities is beyond a simple discussion. Countries have various cultures that have

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been evolved throughout centuries. Many cultural aspects of a set of randomly selected countries might be surprisingly contradictory, while similar textbooks, courses and programs are offered around the Globe to help people do their businesses! It is more like trying to survive a freshwater fish by putting it in the ocean or saltwater!

is not much simple. Without respecting various cultures, no one could not make a success story in a specific context. Then, before initiating a business, one must learn more and more about the context. Indeed, many benefits are associated with studying the context, such as knowing the Do's and Don’t's, ensuring survival and growth, and preparing to succeed.

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

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

culture eats strategy for breakfast

References “A leopard never changes its spots!” Generally, people respect their shared values, beliefs, and customs, which we simply call their culture. People stick to these issues and avoid doing something contrary to those unwritten rules and regulations. It is almost impossible to change who they are, even if they try to do so very hard. Then, as businesspersons, we need to be so careful about such issues. Although it seems simple, history has shown that it

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Dana, L. P. (2014). Asian models of entrepreneurship—from the Indian Union and Nepal to the Japanese Archipelago: Context, policy and practice. World Scientific Publishing: Singapore. Dana, L. P., Salamzadeh, A., Ramadani, V., & Palalic, R. (2021). Understanding Contexts of Business in Western Asia: Land of Bazaars and High-Tech Booms. World Scientific Publishing: Singapore.

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THE INTERNATIONAL COUNCIL FOR SMALL BUSINESS IS PLEASED TO ANNOUNCE

OPEN ACCESS TO THE JSBM

ALL MEMBERS HAVE ACCESS TO THE JSBM PAST ARTICLES VIA OUR WEBSITE! LEARN MORE NON-MEMBER CAN SIGNUP AT ICSB.ORG TO GAIN ACCESS LEARN MORE AT ICSB.ORG/JSBM

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The Entrepreneurial Leopard Professor David A Kirby

Used as a title for a recent essay in this ICSB series (Dana and Salamzadeh, 2022), the idiom “A leopard cannot change its spots” is thousands of years old. It means people and things cannot change their innate nature. But this is exactly what MSMEs will need to do. Ever since the work of Cantillon (16801734) wealth creation and the generation of profit has been a central theme of entrepreneurship and in his articulate essay on the topic Friedman (1970) argued that “The Social Responsibility of Business is to increase its profits” – to make as much money as possible. Since then, this doctrine has dominated business thinking and while the entrepreneurial pursuit of wealth has brought about change and improvement, particularly in the world’s developed economies, often it has been at the expense of people and the planet. Accordingly, despite the introduction of such new approaches as ecopreneurship, humane entrepreneurship and social enterprise, entrepreneurship has had little impact on the sustainability challenge and may,

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indeed, be regarded as having contributed significantly to the plight of the planet. Hence, questions have been raised about its compatibility with sustainability (Gawel, 2012) and both academics and practitioners have been actively seeking new business models to address the challenge (Schaltegger, et. al. 2016).

systemic approach to entrepreneurship that integrates or harmonises the traditional economic, eco, humane and social approaches and brings profit, people and planet into harmony. (Kirby and el-Kaffass, 2021).

Let us welcome the ESG Generation powered by Humane Entrepreneurship

The problem is that the planet is a system which means it is not possible to address one element without disturbing the other connected elements – solving one problem often creates other problems elsewhere in the system. To address the sustainability challenge, therefore, requires a

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While this appears to contradict Friedman’s doctrine what he actually said was that the social responsibility of business is “to make as much money as possible while conforming to the basic rules of society, both those embedded in the law and these embedded in ethical custom”. Rarely, however, has this been articulated or acted upon, yet all of the major world religions address such ethical issues.

Indeed in Islam, for example, the Quran explains explicitly how ethical business should be conducted while the Prophet MOHAMED pronounced that “The world is green and verdant and verily God, the exalted, has made you the stewards of it”. To save the planet MSMEs will need to change. Profit and shareholder satisfaction will no longer be the primary objective. Rather a more blended, systemic approach that harmonises profit, people and planet is needed. The entrepreneurial leopard needs to change its spots! References Dana, L-P and Salamzadeh, A., (2022), A leopard never changes its spots! ICSB Entrepreneurship around the globe. 23 January. (news@icsb.org) Friedman, M., (1970) The Social and Ethical Responsibility of Business is to increase its profits. New York Times. September 13. 122-126 Gawel, A. (2012). Entrepreneurship and sustainability: do they have anything in common? Poznan University of Economics Review. 12 (1) 5-16. Kirby, D.A. and El-Kaffass, I., (2021), Harmonious Entrepreneurship – a new approach to the challenges of global sustainability. The World Journal of Entrepreneurship, Management and Sustainable Development. .17(4), 846-855. First online 12th July.(https://doi.org/10.1108/ WJEMSD-09-2020-0126). Schaltegger, S., Hansen, E.G., & Ludeke-Freund, F. (2016). Business Models for Sustainability: Origins, Present Research and Future Avenues. Organization & Environment. 29 (1) 3-10.

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The International council for small business

Available for students, professionals, and organizations, your ICSB membership will set you ahead! Working on education, research, policy, and practice, the ICSB is spread throughout all domains of micro, small, and medium-sized businesses as well as entrepreneurship.

Make sure your work is being noticed by the right people! Join ICSB at https://icsb.org/membership-benefits/

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GW ENTREPRENEURSHIP WEEK

V IEW GA LLERY SMALLBUSINESSHORIZON.COM

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The Journal of Small Business Management (JSBM) is one of two official journals of the ICSB. Initially created as a platform for scholarly research publications in the fields of small business management and entrepreneurship, the JSBM is now recognized as a primary instrument for projecting and supporting the goals and objectives of ICSB. The JSBM is one of the ways that ICSB engages with a global research audience. Not only does it allow the organization to connect to reaches of life with which we have yet to create relationships, but it also spreads the greater ideals of small business & entrepreneurship research and information exchange.

Learn more

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War & Entrepreneurship We are all playing witness to a 21st-century war in Europe—seeing its widespread effects on all aspects of society across the globe.

DR. AYMAN EL TARABISHY

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In his article titled, “The history of business and war: introduction,” Dr. Erik Lakomma (2017)[1] describes how there is a significant lack of formal research currently being done on war’s influence and effect on business, specifically entrepreneurship. The following explores war’s relationship to entrepreneurship and proposes a humane approach to both the generation and rehabilitation of the affected economies, focusing on the Russian-Ukrainian conflict. The people of Ukraine are no strangers to struggle. Since the fall of the Soviet Union, Ukraine has ushered in an era of frugal innovation, as most habitats have endured three, if not four, national crises in their lifetimes. But today—with nearly two million Ukrainians internally displaced and over two million have already fled the country—it’s time to ask, what happens when people are pushed too far into scarcity? When there are not enough resources to survive, let alone continue conducting business?

from Russia. In addition, on March 11th, the United States, along with G7 countries and the European Union, announced the implementation of national economic sanctions with an intended goal of “building on the unprecedented package of economic sanctions and export controls already imposed on Russia.” With such sanctions, what is demanded and what can be supplied shifts during the war in general. Wartime realities require frugal innovation, locally and globally, and the impediments of conflict can spur industry in new ways. Historically, there is a myriad of examples of this. While the War of 1812 is known for having provided “an impetus to American textile production,” World War II is acknowledged for the growth of the electronic and aircraft industries. Around the globe, we are experiencing new grassroots and viral movements of support in support of Ukraine. People worldwide began booking Airbnb stays in Ukraine without traveling there and purchasing digital downloads from Ukrainian vendors on Etsy and eBay, all to push funds into the country. Companies such as BlaBlaCar have even found more tangible ways to support transporting Ukrainians to safety.

what happens when people are pushed too far into scarcity?

Both Russian and Ukrainian entrepreneurs and small businesses feel the steep effects of a wartime economy. While the rest of the world sees rocketing natural gas and dwindling supplies of staples like wheat, the Russian and Ukrainian experiences with both are intensified. As a result, the worth of the Russian Ruble has fallen to a record low against the US Dollar, and corporations around the world have worked tirelessly to relocate business operations and withdraw any assets

Just as war influences business and entrepreneurship, conversely, entrepreneurship influences war. Known as the military-industrial complex, the phenomenon refers to the influence of companies on the government towards “continued or

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increased military spending.” Demonstrated most frequently by the United States elected officials who remain dependent on military industries and vote for pro-war policies, the military-industrial complex benefits primarily those in weapons supply and military technology advancement. Today, however, we see information and media companies playing much more prominent roles in the complex by disseminating (mis)information and advertising and modern offensive practices, such as cyberattacks.

represented or heard. These more singular units of economic power are so interwoven into our societal blanket that we often forget to consider their needs. When aiding them during trying times, they significantly lose between individuals and large companies.

Our world has changed again, so I repeat my request.

These powerful companies can influence the votes of Congress. Unfortunately, the micro, small, and medium-sized enterprises (MSMEs) are most likely not being

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Yet these small units communicate to the world: when it is safe, what to buy, and from where. They are local guardians, and until Ukrainian and Russian small business owners can open their doors once again, the imperative must be to protect their importance. War is another “pre-existing condition” [2] to global disease. If this new normal can not be based on any consistent sense of external stability, let’s decide to center it on an approach that is always

within reach. In applying energies toward creating human-centered relationships, policies, and structures, there is a fighting chance to equilibrate the balance so that we can live in a place that upholds equity for all. ICSB’s goal is to help bring perspective and voice to the MSMEs and entrepreneurs across the globe, and now, especially within both Ukraine and Russia. In 2016 when Dr. Ayman El Tarabishy formulated a proposal for a United Nations Day for MSMEs, he intended to see a day in which all countries, stakeholders, and companies of all sizes might celebrate the importance of MSMEs as the core units of modern society. Furthermore, MSMEs Day would act as a platform from which the global community could build ideas, synergies, and initiatives to help MSMEs prosper and grow while swiveling international attention towards these smaller units. The day itself, June 27th demonstrates the importance of MSMEs as indicators of a peaceful society. Hence, we picked June 27 as MSMEs Day. A constant reminder of the importance of MSMEs. Our daily choice is empathy over judgment, equity over greed, enablement over denial, and empowerment over restriction. Created from observing how small businesses operate, Humane Entrepreneurship (HumEnt) seeks to uplift humanity through creativity and innovation to develop solu-

tions that benefit everyone. The approach of HumEnt changes our priorities. In days of war, the future might not seem as if it is being guided towards Humane Entrepreneurship, but take a moment and look around. The world is standing up and fighting to honor humanity. So when companies pivot their creative solutions to aid those suffering in any war, it is the correct way forward. Last year, I asked you to envision a world built around the most vulnerable[3]. I requested that we center our energies on those who need them the most and then, from that place, work to create informed policies that generate a resilient entrepreneurial ecosystem. References 1] Erik Lakomaa (2017) The history of business and war: introduction, Scandinavian Economic History Review, 65:3, 224-230, DOI: 10.1080/03585522.2017.1397314 [2] and [3] https://icsb.org/wp-content/ uploads/2020/04/2020ICSBGlobalMSMEsReport.pdf Article by: Dr. Ayman El Tarabishy President & CEO, ICSB Deputy Chair, GWSB, Department of Management

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ICSB Annual GLobal micro-, small, & Medium sized enterprise report

View the past 4 issues at msmes.day/globalreports 26

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33 27

THE Darkside of Entrepreneurial Ecosystems:

WeWork Case Study DR. AYMAN EL TARABISHY

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A mere six weeks after the shared workspace behemoth WeWork announced their initial public offering, CEO and founder Adam Neumann voted to resign his title. Almost instantaneously, the proposed valuation of the company was cut in half, and the IPO was shelved. At its peak, the co-working enterprise was valued at $47 billion, which would have made it the most valued company to ever go public. In order to understand how the company reached this apex only to immediately collapse, it is essential to examine the forces within and outside the company that contributed to its pursuit of lucrativeness built on failing business structures.

On paper, the company grew fast. Within two years of launching in 2010, they received a $17 million Series A funding from Benchmark, a venture capital (VC) firm whose first big bets included Uber and Twitter. With these funds, WeWork expanded, and by 2014, they owned 1.5 million square feet and 10,000 members were working out of their spaces (Aydin). As more money flowed in, the number of locations in central US hubs grew, and they expanded to the UK, Europe, and Asia. With each year that passed, the value of the company increased by hundreds of millions of dollars. By 2015, following another round of funding, WeWork was worth $10.23 billion (Sherman). The billions of dollars that accumulated during each round of funding legitimized the company even further, causing a ripple effect in investor behavior as capital firms saw it as a profit machine.

The company exuded charisma over character, yet returns were high so investments kept coming.

Adam Neumann, the eccentric head of the firm, had the charisma of a televangelist, the party habits of a frat boy, and the seemingly-limitless funding of a Silicon Valley tech startup. His complex was part of his initial appeal and subsequent success. Highly ambitious, he envisaged WeWork to “encompass all aspects of people’s lives, in both physical and digital worlds,” elevating global consciousness in the process (Zeitlin). The magnetism of his persona convinced employees and investors alike that a commercial real estate company leasing out co-working spaces was all part of a grander, more meaningful mission. A former employee described WeWork as selling “energy, this magnetic, productive buzz” (Widdicombe, Weiner). The company exuded charisma over character, yet returns were high so investments kept coming.

However, the ones operating these spaces were contributing to this legitimacy in a self-fulfilling cycle. The employees known as “WeWorkers” were so convinced that Neumann was starting the next Facebook that they dutifully acted alongside the CEO’s impulses, despite the fact that his actions were putting the company in jeopardy. By the time of the IPO, the “risk” section of WeWork’s S-1, a company filing submitted to the U.S. Securities and Exchange Committees prior to going public, was almost 30 pages long (Campbell).

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Despite the excessive risk laid out to investors in the S-1, there was no clear outline for how the company would become profitable. This phenomenon of venture capitalists injecting billions of dollars into companies with no tangible framework on how to achieve and maintain profitability is not uncommon. For example, Theranos, the blood-testing company hailed as revolutionary for their vanguard technology, raised $1.1 billion in funding before evidence came out that it was impossible for said technology to produce the results they had falsified (CB Insights). Likewise, the on-demand dog walking app Wag! is currently worth $650 million despite being notorious in New York for losing or killing people's dogs (Fonrouge). Perpetuating this problem are the few dozen venture capital firms controlling the allocation of hundreds of billions of dollars. These resources make them the arbiters of which companies succeed and which ones fail. Silicon Valley entre-

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preneur Steve Blank, a Palo Alto veteran since 1978 and current adjunct professor at Stanford, has described the VC industry as a “money-hungry mob.” He sees VCs today as not being “interested in anything except optimizing their own profits and chasing the herd … so they waste billions of dollars that could have gone to innovation that actually helps people” (Duhigg). One of the main investment fads amongst VC firms today are unicorn companies, which are privately-held startups valued at over $1 billion. To the VCs seeking out these unicorns, what’s often more important than just a brilliant idea are the founders who are leading the helm of it. Enigmatic leaders such as Adam Neumann and Elon Musk of Tesla are undoubtedly smart, but they also have wild imaginations and can be unpredictable. These traits combined with what they've accomplished can lead one to believe that these people can do anything they put their minds to. This phenomenon, the cult of

the CEO, hails these leaders as all-knowing and all-wise, heightening them to celebrity status as a result. Elon Musk being tapped as a host of Saturday Night Live, a spot typically reserved for more traditional celebrities such as actors or athletes, is evidence of this. The fan base they gain through this further cements their role and validates their decisions, and their mass support disincentivizes companies from removing these much-cherished figures from their posts. At the end of the day the tech magnate’s followers aren’t inspired by business suits and financial reports; they’re attracted to the allure of a real-life Iron Man. In the case of WeWork, Neumann held himself to this same concept of grandeur. A Forbes article released two years before WeWork’s scheduled IPO detailed a conversation between Neumann and Masayoshi Son, head of the massive investment firm SoftBank, during a closing deal in March 2017. Masayoshi posed a question to Neumann:

“In a fight, who wins— the smart guy or the crazy guy?” Neumann replied, “Crazy guy,” to which Masayoshi answered, “You are correct … but you are not crazy enough” (Bertoni). This encouragement of idiosyncratic and prolific leadership at all costs has further created a “hands-off” environment between VC firms and the companies they are funding. Founders essentially have free reign. Those with the power to curb their behavior, such as board members or those responsible for managerial oversight, often do nothing, as crossing a founder could lead to the undoing of one’s career. A former high-ranking executive of WeWork company told The New Yorker, “If you review the minutes of our board meetings … there was never a budget plan, or a growth plan, that wasn’t approved unanimously. If board members had concerns, they never once officially said them.” Despite the fact that the company was hemorrhaging money, losing $219,000 an hour by 2019,

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Neumann’s unchecked power meant that no one could step in to lead the company away from its imminent demise. As evidenced by companies like Wag! and Theranos, value and price are not the same thing. Despite the internal complications at WeWork, the price didn’t reflect the chaos. If profit is the prerogative, failing but lucrative companies won’t fix what isn’t broken. Due to its overvaluation, the unicorn price of WeWork gained investors, which inflated the price and encouraged more investments. Adam Neumann was leading WeWork towards a cliff, propelled by investors, and there was little intervention because the price meant he was apparently doing something right. This only served to further encourage his actions. This case study reflects the constructed, or cosmetic, entrepreneurial ecosystem and most perfectly exemplifies the ways in which investors and external institutions narrow the free market. Ultimately, naturally occurring ecosystems breed fairness. In today’s current environment, the pursuit of obtaining early shares in unicorn WeWork discouraged investors from seeking funding opportunities in their competition. Rebecca Brian Pan, founder of shared workspace company Covo, compared WeWork to a “bottomless bank account that made it impossible for anyone else to survive,” obliterating her company as a result (Duhigg). For entrepreneurs, hard work will build a business, but funding is what keeps it alive and VC firms follow suit. If one company has a billion-dollar valuation, all of them are going to want a piece and in pursuit of that, they will deprive funds from their competition, doing away with competing young startups in the process.

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Although Adam Neumann’s antics were largely ignored until 2019, he was eventually ousted from his position when he became a legitimate threat to profits. Following the announcement of the IPO, reports trickled out that scrutinized his lifestyle and leadership techniques. He acted as a sacrificial lamb for the sake of margins. However, his time as a leader suggests that greed took precedent over the numerous red flags that were raised during his tenure. This can be seen throughout ecosystems, stretching as far as the initiators of many entrepreneurs’ journeys. The influence is manifesting in Venture Competitions in Universities, where students are prioritizing preparation and planning for a competition to raise funds over garnering skills and breaking new ground. The emphasis on gains rather than actual innovation that benefits society is what Steve Blank warns of. It calls into question the legitimacy of companies with multi-billion dollar valuations. How much of it is real and how much is a bubble that, if popped, will cause economic demise? As we continue to curate and expand the ICSB Marketplace, we are extremely cognizant of the ways in which we occupy the space of student-led venture competitions. In focusing on the skills, connections, and opportunities that these student businesses necessitate, rather than extreme amounts of funding, we are able to support these companies in a way that promotes sustainability and quality over profits. We welcome you all to participate in this program with us by sharing this opportunity to participate in the ICSB Marketplace with your students, as well as to mentor up-and-coming startups as they confront the challenges and opportunities of building their businesses. Thank you all for being part of this journey with us.

KHub Spotlight

Interested in becoming an ICSB KHub? Join here:

icsb.org/khubs 32

05 | WE: MOVING FORWARD

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Future of Automation 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 Ieva 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,

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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 agreedupon ideas. Meanwhile, taking a more microlevel 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.

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.

Empathy is understood as the ability to put oneself into the place of another.

In the meantime, it is essential to reconcile these humane concepts with new

At its core, technological advances have brought us to the current era and given countless opportunities to those livintoday. 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.

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Education and Humane Entrepreneurship AYMAN EL TARABISHY

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. 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.

planet. Although governments are making changes to reduce negative impacts on the environment, we are still concerned about whether profitability and sustainability can coexist. We must educate all stakeholders about climate risk and their duty to promote sustainability in response to this. As observed by Dr. Mariya Yesseleva-Pionka, Global Certificates Manager for ICSB and adjunct professor at University of Technology Sydney, “With every new business venture comes a great responsibility for making climatefriendly decisions.” Therefore, we need to continue developing and supporting eco-friendly solutions such as green startups, fin-techs, and sustainability reporting and educate entrepreneurs on how to implement SDGs and sustainable business practices properly. It is imperative to note that long-term profits will not matter if the planet deteriorates due to climate change.

Education sits as the cornerstone of creating socially & environmentally conscious entrepreneurs.

First, we must consider the significance of climate change and the role that government officials and entrepreneurs play in preventing further damage to the

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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, a 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 and 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 entrepreneurial learners possess to change the future of business and the environment, we owe them the best education, educators, research, and settings. We must

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listen inclusively to the voices of these learners and 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.” To provide entrepreneurial learners with the best resources, we must 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 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 long-term, positive change for our environment, communities, and ways of life. For more on the importance of entrepreneurial education, watch the session below.

66TH ANNUAL

2022 ICSB WORLD CONGRESS

HYBRID, Hosted in Washington, D.C. The Entrepreneurial Revolution Today, the most pressing issues around the globe have reached a scale that requires both governments and corporations to work together to make impactful change. In the wake of the climate crisis, companies that want a competitive edge will ironically have to forgo their fundamental sense of competition when trying to operate, as meaningful progress is not possible without cross-industry cooperation. Rather than using competition to fuel innovation, cooperation and collaboration will ensure that individual enterprises hold up their end of the climate bargain, ultimately benefiting both company and consumer. After all, there is no business, no capitalism, no success on a dead planet. Improving our current systems requires a humane form of entrepreneurship, and self-starters that adopt this framework are set to be the next business titans of tomorrow. Let us start this entrepreneurial revolution together!

SUBMISSIONS DUE MAY 15, 2022 ICSBCONGRESS.COM/CALL-FOR-PAPERS

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

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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 build-

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ing 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.

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.

we must challenge ourselves to push humane entrepreneurship one step further.

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,

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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.

https://icsb.org/pitchjicsb/

Pitch JICSB Issue 2 was intended to highlight the challenge of MSME sustainability, a critical topic for meeting the UN’s 2030 Development Goals. Now it will come out while we are still in the midst of the crisis and the topic of sustainability is even more important. What is on the other side of this pandemic? Will MSME policies need to be changed to reflect a new reality? Will programs designed to help MSMEs improve their performance and sustainability require a new focus, especially in developing countries? Sustainability has become even more challenging. Share your research on how we move through the social and economic recession with government support programs. Share your views on what will be needed at the policy and practice level once the support programs wind down.

icsb.org/jicsb & tandfonline.com/UCSB for more information on author guidelines and the submission process.

You can submit an idea for a research paper or case study, and the Editor will review it within 48 hours and send you a RESPONSE if considered for you to submit it with an expedited peer-review process under the personal supervision of the editor. Submissions that receive such consideration are likely to be published.

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APPLY TO THE

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Now LIve

The ICSB EdExchange Initiative is designed to allow educators from around the world to enter their information to teach a variety of courses in entrepreneurship T H E areas. ICSB EDEXCHANGE INITIATIVE IS DESIGNED TO and related

ALLOW EDUCATORS FROM AROUND THE WORLD TO ENTER The Exchange function TH E I R I Nhas F O aR search MATIO N T O that T E Aallows C H Auniversities V A R I E T Yand O organizations F C O U R S E Sto search for faculty. IN ENTREPRENEURSHIP AND RELATED AREAS.

To apply go to: https://icsb.org/edexchange/

THE EDEXCHANGE HAS A SEARCH FUNCTION THAT ALLOW UNIVERSITIES AND ORGANIZATIONS TO SEARCH FOR 44 WAR & ENTREPRENEURSHIP FACULTY.

ICSB GLOBAL CERTIFICATES

SOCIAL ENTREPRENEURSHIP Sign up HERE LED BY: DR. TONY MENDES, DR. KATIA PASSERINI, DR. WINSLOW SARGEANT, DR. AYMAN EL TARABISHY, DR. ROBERTO PARENTE, DR. KI-CHAN KIM, DR. PAUL SWIERCZ, DR. AHMED SHALABY, DR. JEAN-FRANCOIS OUELLET

ICSB Global in partnership with its worldwide affiliates and chapters is proud to offer educators, researchers, entrepreneurs, students, government officials, and small business owners the opportunity to advance their entrepreneurial knowledge and skills through our new innovative ICSB Global Social Entrepreneurship Certificate (ICSB Global SE).

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Humane Entrepreneurship & MSMEs in a Dynamic World 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 environ-

mental 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

The company exuded charisma over character, yet returns were high so investments kept coming.

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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.

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.

“Humane entrepreneurship is to hire people who believe what you believe.”

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

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To learn more about the humane entrepreneurship model, watch the session below.

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