Key&Points& - - PDF document

21/05/15& 1&

Illusions&and&Opportuni4es&in& Sustainability&and&Entrepreneurship&

Simon&White&

22&April&2015,&Cur4n&University&

Key&Points&

• Enterprise&development&is&a&key&ingredient&in&

sustainable&development&

• Sustainable&enterprise&development&responds&

to&emerging&challenges&and&opportuni4es,& rather&than&idealised&planning&models&

• Mechanisms&that&can&realise&the&poten4al&of&

sustainable&enterprises&––&the&case&for&CUSP& Enterprise&

21/05/15& 2&

21/05/15& 3&

Small%Business%in%Australia%(<20&workers)&

&

• Half&of&Total&Private&Sector&Employment&
• OneQthird&of&Value&Added&&

ABS&2012&

Local&Employment&Ini4a4ves&

• Local&enterprise&agencies&
• Business&incubators&
• Shared&workspaces&&
• Coopera4ve&enterprises&
• Community&businesses&

21/05/15& 4&

Enterprise&&&Sustainability&

• EF&Schumacher&(1973)&Small%Is%Beau+ful:%A%Study%of%Economics%As%If%

People%Ma:ered&in&1973&

– The&modern&day&economy&was&unsustainable& – “Economic&development&is&something&much&wider&and&deeper&than& economics,&let&alone&econometrics.&Its&roots&lie&outside&the&economic& sphere,&in&educa4on,&organisa4on,&discipline&and,&beyond&that,&in& poli4cal&independence&and&a&na4onal&consciousness&of&selfQreliance”& – Ideas&around&small&enterprise,&appropriate&technology&and&‘villageQ based&economics’.& &

• World&Commission&on&Environment&and&Development,&the&

Brundtland&Commission&(1987),&Our%Common%Future&

– "...the&‘environment’&is&where&we&live;&and&‘development’&is&what&we& all&do&in&acemp4ng&to&improve&our&lot&within&that&abode.&The&two&are& inseparable.”& – “…a&new&era&of&economic&growth,&one&that&must&be&based&on&policies& that&sustain&and&expand&the&environmental&resource&base”.&&

Private&Sector&Development&

• Provides&the&goods&and&services&we&require&
• Creates&jobs&and&incomes&
• S4mulates&investment&(more&jobs,&plant,&

equipment)&

• Economic&growth&
• Poverty&reduc4on&

21/05/15& 5&

90%&of&all&jobs&in&developing&countries&are&in&the& private&sector.&&

World&Bank&(2013)&World%Development%Report%2012:%Jobs%

& & & People&who&have&overcome&poverty&iden4fy& “finding&a&paid&job”&or&“star4ng&a&business”&as& the&two&most&important&reasons.&

Interna4onal&Labour&Organiza4on&(2014)&Sustainable%enterprises;%crea+ng% more%and%be:er%jobs%%

&

• Jobs&in&small&and&medium&enterprises&(SMEs)&

account&for&more&than&half&of&all&formal& employment&worldwide&

• SMEs&(5Q250&employees)&represent&on&average&

about&66%&of&permanent,&fullQ4me& employment&in&developing&countries.&

& & & & & Interna4onal&Finance&& Corpora4on&(2013)&& Jobs%Study%

21/05/15& 6&

Entrepreneurship&&&Innova4on&

• Schumpeter&(1883–1950)&

– Crea4ve&destruc4on:&“the&process&of&industrial& muta4on&that&incessantly&revolu4onizes&the&economic& structure&from&within,&incessantly&destroying&the&old&

• ne,&incessantly&crea4ng&a&new&one”&

– Unternehmergeist&[German,&"entrepreneurQspirit”]&"...& the&doing&of&new&things&or&the&doing&of&things&that&are& already&being&done&in&a&new&way”&

• Can4llon&(1680–1734)&

– Entrepreneur:&&a&person&who&pays&a&certain&price&for&a& product&and&resells&it&at&an&uncertain&price:&"making& decisions&about&obtaining&and&using&the&resources& while&consequently&admiqng&the&risk&of&enterprise."&&

Current&State& Sustainable&Economy& Markets&

21/05/15& 7&

Global&Entrepreneurship&Monitor&&

GEM&provides&a&regular&assessment&of&selected& countries:&

• To&measure&differences&in&the&level&of&

entrepreneurial&ac4vity&between&countries&

• To&uncover&factors&leading&to&appropriate&

levels&of&entrepreneurship&

• To&suggest&policies&that&may&enhance&the&

na4onal&level&of&entrepreneurial&ac4vity&

GEM&Australia&2011&

• 10.5%&of&the&adult&popula4on&are&involved&in&seqng&

up&a&new&business&or&owning&a&newly&founded&business& as&measured&by&the&total&entrepreneurial&ac4vity&(TEA)& rate&

• Australia&ranks&second&only&to&the&United&States&

among&the&innova4onQdriven&(developed)&economies&

• The&employee&entrepreneurial&ac4vity&(EEA)&rate&for&

established&firms&ranks&above&average&

• 5%&of&the&adult&popula4on&is&engaged&in&developing&or&

launching&new&products,&a&new&business&unit&or& subsidiary&for&their&employer&

21/05/15& 8&

Financial&Services& NonQFinancial&Services& [Business&Development&Services,&BDS]& Government%dominated% Supply%driven% Intermediary&Organisa4ons&I& [NGOs,&CSO]& Intermediary&Organisa4ons&II& [Business&organisa4ons,&Banks]& Limited%sustainability%(subsidy)% Low%impact%

Systemic%Approaches%to%Enterprise%Development& & Investment&climate&and&business&environment&

• Investment&Climate&

Assessments&

• World&Bank&annual&

Doing&Business&report&

• Recognising&that&firms&
• perate&in&markets,&

which&are&influenced& by&policies&and&factor& condi4ons&&

21/05/15& 9&

• Most&firms&operate&in&markets&that&are&located&

within&a&value&chain.&

• Value&chains&have&firms&of&all&sizes&––&focusing&on&

small&firms&is&not&enough&––&there&are&lead&firms& and&small&suppliers&––&global&and&na4onal&firms& and&local&enterprises&

Value%chain% interven8ons% %

Increasing&Recogni4on&of&the&Role&of& Large&Firms&and&Investments&

• Bo9om%of%the%Pyramid%(BOP)%

– CK&Prahalad&(2004)&The%Fortune%at%the%Bo:om%of%the% Pyramid% – Poor&as&customers&––&economic&ci4zens&

• Corporate%Social%Responsibility%(CSR)%

– A&company’s&sense&of&responsibility&towards&the& community&and&environment&in&which&it&operates&

• PublicCPrivate%Partnerships%

– &A&government&service&or&facility&that&is&funded&and&

• perated&through&a&partnership&of&government&and&one&or&

more&private&sector&companies&

21/05/15& 10&

Expanding&the&Role&of& Entrepreneurship&

• Impact%Inves8ng%

– Investments&made&into&companies,&organiza4ons,& and&funds&with&the&inten4on&to&generate&a& measurable,&beneficial&social&or&environmental& impact&alongside&a&financial&return&(Global&Impact& Inves4ng&Network&website,&2013)&

• Social%Entrepreneurship%

– NotQforQprivate&profit& – Social&and&environmental&goods&

Financing flows (in billions of United States dollars)

300 600 900

2000 2002 2004 2006 2008 2011 ODA and other

• ffjcial fmows

ODA and other

• ffjcial fmows

Remittances Remittances Private Flows Private Flows

30 60 90

2000 2002 2004 2006 2008 2011

To developing countries To least developed countries Source: Organization for Economic Cooperation and Development (OECD) Development Assistance Committee statistics and World Bank data on migration and remittances. UN&2014&Sustainable%Developing%Financing%%

Sustainable&Development&Financing&

21/05/15& 11&

Sustainable&Development&Goals&&

“it&is&a&task&of&governments&to&align&the&interests& and&incen4ves&of&the&public&and&private&sectors& as&well&as&financial&actors&with&the&impera4ves&

• f&sustainable&development”&&

& &

TST&Issues&Paper,&p.&108Q109&

UN&Plans&

• Rio&Declara4on&
• Agenda&21&
• Programme&for&the&Further&Implementa4on&of&Agenda&21&
• Plan&of&Implementa4on&of&the&World&Summit&on&Sustainable&Development&(Johannesburg&Plan&of&Implementa4on)&

and&the&Johannesburg&Declara4on&on&Sustainable&Development&

• Programme&of&Ac4on&for&the&Sustainable&Development&of&Small&Island&Developing&States&(Barbados&Programme&of&

Ac4on)&&

• Mauri4us&Strategy&for&the&Further&Implementa4on&of&the&Programme&of&Ac4on&for&the&Sustainable&Development&
• f&Small&Island&Developing&States&
• Programme&of&Ac4on&for&the&Least&Developed&Countries&for&the&Decade&2011–2020&(Istanbul&Programme&of&

Ac4on)&

• Almaty&Programme&of&Ac4on:&Addressing&the&Special&Needs&of&Landlocked&Developing&Countries&within&a&New&

Global&Framework&for&Transit&Transport&Coopera4on&for&Landlocked&and&Transit&Developing&Countries&

• New&Partnership&for&Africa’s&Development&
• United&Na4ons&Millennium&Declara4on&
• 2005&World&Summit&Outcome&
• Monterrey&Consensus&of&the&Interna4onal&Conference&on&Financing&for&Development&
• Doha&Declara4on&on&Financing&for&Development&
• HighQlevel&Plenary&Mee4ng&of&the&General&Assembly&on&the&Millennium&Development&Goals&
• Programme&of&Ac4on&of&the&Interna4onal&Conference&on&Popula4on&and&Development&
• Beijing&Declara4on&and&Plavorm&for&Ac4on&
• Declara4on&of&the&HighQLevel&Dialogue&on&Interna4onal&Migra4on&and&Development&

21/05/15& 12&

“Trying&to&predict&the&future&is&like&trying& to&drive&down&a&country&road&at&night&with& no&lights&while&looking&out&the&back& window.”&

& Peter&Drucker&

The&nature&of&crea4ve&destruc4on&and&disrup4ve& entrepreneurship&makes&planning&for&the&future&difficult.&Instead,& we&should&monitor&and&respond&to&change,&learn&from&experience& and&refine&our&approach.&&&

Planners&and&Searchers&

[William&Easterly]& “A%planner%thinks&he&already&knows&the&answers;&he&thinks&of& poverty&as&a&technical&engineering&problem&that&his&answers& will&solve.&& A%searcher%admits&he&does&not&know&the&answers&in&advance;& he&believes&that&poverty&is&a&complicated&tangle&of&poli4cal,& social,&historical,&ins4tu4onal,&and&technological&factors.&A& searcher&only&hopes&to&find&answers&to&individual&problems&by& trial&and&error&experimenta4on.&& A%planner%believes&outsiders&know&enough&to&impose& solu4ons.&& A%searcher%believes&only&insiders&have&enough&knowledge&to& find&solu4ons,&and&that&most&solu4ons&must&be&homegrown.”&&

21/05/15& 13&

Where&are&the&Opportuni4es&for& Sustainable&Enterprise& Development?& & & What&Role&Can&CUSP&Play?&

META&LEVEL&

Social&norms&and&values& “tall&poppies”,&“serial&failures”&

MACRO&LEVEL&

Policy,&legal&and&regulatory&framework&

MESO&LEVEL&

Ins4tu4onal&support&environment&

MICRO&LEVEL&

Services&provided&directly&to&the&firm&

21/05/15& 14&

MICRO%LEVEL% Facilita8ng%access%to%enterprise%inputs% Linking%entrepreneurs%and%nascent%enterprise%to% providers%(Finance,%VC,%training)% MESO%LEVEL% Crea8ng%ins8tu8onal%networks% Sharing%informa8on% Working%with%markets% Building%entrepreneurial%ecoCsystems% %C%Academia,%Government,%Industry,%Civil%Society% MACRO%LEVEL% Crea8ng%enabling%policy,%legal%and%regulatory% frameworks% Support%R&D,%technology%transfer,%industrial% development% META%LEVEL% Promo8ng%the%values%of%sustainability% Recognising%and%rewarding%success%–%Champions% Promo8ng%experimenta8on%

21/05/15& 15&

CUSP&Enterprise&

FACILITING&THE&GROWTH&OF&SUSTAINABLE&ECONOMIES&AND&ENTERPRISES&

• Facilitate&the&crea4on&of&an&ecoQsystem&for&

sustainable&enterprise&development&&

– Linking&Cur4n’s&teaching&and&research&with&enterprise& crea4on&

• Innova4on&and&sustainable&enterprise&

development&

– Facilita4ng&the&development&of&new,&innova4ve& enterprises&that&produce&economic,&social&and& environmental&dividends&

• Entrepreneurs,&innovators&and&changeQmakers&

– Programs&and&services&that&develop&the&skills&and& experience&of&women&and&men&who&help&us&do&things& differently&

CONTACT& Tel& +61&41&993&4641& Email& simon@simonwhite.com.au& Web& www.SimonWhite.com.au& Skype& simon_white& Twicer& @SimonLWhite&

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