Key&Points& - PDF document

21/05/15& 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& 1&

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21/05/15& 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& 3&

21/05/15& 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& 4&

21/05/15& 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% 5&

21/05/15& Entrepreneurship&&&Innova4on& • Schumpeter& (1883–1950)& – Crea4ve&destruc4on:&“the&process&of&industrial& muta4on&that&incessantly&revolu4onizes&the&economic& structure&from&within,&incessantly&destroying&the&old& one,&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."&& Sustainable&Economy& Markets& Current&State& 6&

21/05/15& 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& 7&

21/05/15& 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& operate&in&markets,& which&are&influenced& by&policies&and&factor& condi4ons& & 8&

21/05/15& Value%chain% interven8ons% % • 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 & 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& operated&through&a&partnership&of&government&and&one&or& more&private&sector&companies & 9&

21/05/15& 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& Sustainable&Development&Financing& Financing flows ( in billions of United States dollars ) To developing countries To least developed countries 90 900 60 600 Private Flows Remittances Private Flows Source: Organization for 30 300 Economic Cooperation Remittances ODA and other and Development (OECD) o ffj cial fm ows Development Assistance ODA and other Committee statistics and o ffj cial fm ows 0 0 World Bank data on migration 2000 2002 2004 2006 2008 2011 2000 2002 2004 2006 2008 2011 and remittances. UN&2014& Sustainable%Developing%Financing%% 10&