how can entrepreneurial mindset be developed in organisations?
TRANSCRIPT
“How can entrepreneurial mindset be
developed in organisations?”
November 27, 2015
Kolding, Denmark
By
Shahamak Rezaei
Department of Society & Globalisation
Roskilde University
What Is Entrepreneurship?
Process of creating value by bringing together a
unique package of resources to exploit an
opportunity
Opportunity-alertness –“the ability to notice without search opportunities that have hitherto been overlooked”
Self-efficacy – ”can execute courses of action required to deal with prospective situations”
Risk-willingness – willingness of individuals to pursue action with uncertain outcomes
Role-modeling – increasing individuals’ confidence in specific acts as they provide familiarity with the act and similarly are a source of social acceptance
ENTREPRENEURIAL
COMPETENCES
How might entrepreneurial perceptual competences
be enhanced?
INSTITUTIONAL
Context
INNOVATION
COMPETENCIES
Self-efficacy
Opportunity-alertness
Risk-willingness
Role-modeling
BACKGROUND
Gender
Age
Education
ENTREPRENEURIAL
COMPETENCES
What is Innovation? Schumpeter’s promoted two major models of innovation, sometimes called
Schumpeter I and Schumpeter II. Schumpeter I is based on his early works,
where innovation is primarily driven by young and small entrepreneurs, who
are able to implement new ideas in the market, and hence take a temporary
monopolistic power in the market. These firms are hence able yield
monopolistic profit, which is eventually eroded as competitor firms imitate
their innovations (Schumpeter J. A., 1911).
In Schumpeter II innovation is driven by large and established firms
(corporation), which are able to overcome increasing innovations cost by
using economies of scale. Hence larger and older firms are hypothesised to
have higher innovation propensity and yield greater benefits from innovation,
i.e. higher growths (Schumpeter J. A., [1942]).
In more recent literature these two seemingly different innovation
approaches have been accepted to be co-existent in different sector. So that
Schumpeter I is predominant in less developed or sector with less capital-
intensive but more human-capital-intensive sectors; while Schumpeter II is
predominant in highly capital-intensive sectors.
Innovation system
Innovation system, describes how a country, a region, a
network or an industry functions as a system promoting
the transfer of innovations and business concepts into
profitable enterprises or organizations in national or
global economy. In a regional innovation system we
identify three major elements (trade and industry;
education and research; the political structure) interacting
(triple helix) in the field between demands from the
market and boundary conditions in the infrastructure.
Linking innovation
systems
Mark Granovetter (1973) argued that the presence of weak ties in social networks were
important aspects of social structure through which novelty is likely to flow, such as
information important for finding a new job. Burt (1992) took Granovetter's argument a step
further with the concept of "structural holes." Structural holes can be found in the vicinity of
nodes with high betweenness centrality that mediate connections between two or more
otherwise isolated cliques. In contrast to Coleman's view of social capital inherent in closed,
Burt argued, and empirically demonstrated, that open networks connected via bridges across
structural holes carried more consistent social benefits.
How to understand Diversity
and Innovation?
Figure 1 illustrates the individual advantage obtained by C, a member of clique ABC upon
bridging to the DEF clique that connects internationally to the GHI clique abroad. Thanks
to her friendship with F, who is not a co-ethnic, C has access to E, and thanks to E can
trade with GHI abroad. C’s clique has no co-ethnic trading partners abroad, but C is
sharing some network advantages that belong to another group’s diaspora. This is indeed
strengthening of the weak ties.
Figure 1 Individual Advantage Obtained by Bridging (Source Light 2010, Rezaei, Dana & Light 2010)
Local Linked International
Clique Cliques
distance
A B D - E ----------- - - - - - - - G - H
\ / \ / \ /
C - F I
Entrepreneurial Space
Globalization
Globalization means the accelerated economic
integration of previously less integrated national
economies.
Source data is from United Nations (2013)
An Example: Movement of
Chinese Entrepreneurs
North America
South America
Africa
EU
Asia
Australia
Globalization and Transnationalism
Transnationals are well endowed to do the work of
linking and integrating economies.
bi-cultural, spoke and hub organization, international networks,
enforceable trust, prompt perception of opportunity conditions
Transnationalism
What’s transnationalism?
It’s the term given to the people who live in a cross-national
context (abroad and in their homelands) more or less
simultaneously.
A recent product of: jet airplanes, electronic
communications, globalisation
Who’s in charge?
Globalisation is much bigger than transnationalism.
Transnationalism is globaliation’s helper; it did not cause
globalisation.
Transnational Entrepreneurship
(TE)
Inspired by AnneLee Saxenian’s seminal research questions in
the dominant Argonaut-literature – Brain Circulation
Super Diversity - Steven Vertovec has defined super-diversity
as: the arrival of new, small and scattered, multiple-origin,
transnationally connected, socio-economically differentiated and
legally stratified immigrants.
Transnational Entrepreneurship
The process of TE involves the entrepreneurial activities that are carried out in a cross-national context and initiated by actors who are embedded in at least two different social and economic arenas.
Transnational entrepreneurs are individuals that migrate from one country to another, concurrently maintaining business related linkages with their former country of origin and currently adopted countries and communities.
Transnational Entrepreneurship (TE) The process of TE involves the entrepreneurial activities that are carried out in a cross-national context and initiated by
actors who are embedded in at least two different social and economic arenas.
1. International Entrepreneurs IE’s , Growth entrepreneurs developing new
international markets
2. Ethnic Entrepreneurs EE’s , Often necessity entrepreneurs responding to
closed labor markets - Brain drain>waste
3. Returnee Entrepreneurs RE’s, Individual migrants returning with
qualified knowledge - Silicon Valley>Bangalore (Saxenian) - Brain circulation
4. Transnational Entrepreneurs, TE’s, Individual entrepreneurs linking two
business environments - Brain gain
5. Transnational Diaspora Entrepreneurs TDE’s , Entrepreneurs linking two
business/culture environments, but also link to a diaspora “community” EE’s
becoming TE’s - turning brain waste into brain gain
Classification of Entrepreneurs
The emergence of super-diversity
Diversity is not what it used to be. Some twenty-thirty years of government policies,
social service practices and public perceptions have been framed by a particular
understanding of equality, gender mainstreaming, immigration and multicultural
diversity. Policy frameworks and public understanding – and, indeed, many areas of
social science – have not caught up with recently emergent demographic and social
patterns. Many European societies can now be characterized by ‘super-diversity,’
(S.Vertovec , 2006, M. Ram 2011) a notion intended to underline a level and kind of
complexity surpassing anything the countries has previously experienced. Such a
condition is distinguished by a dynamic interplay of variables among an increased
number of new, small and scattered, multiple-origin,
transnationally connected, socio-economically differentiated and
legally stratified citizens as well as immigrants who have arrived over
the last decade. Outlined in the course, new patterns of super-diversity pose
significant challenges for both policy and research.
The New Buzzword:
Social Entrepreneurship
So, is entrepreneurship basically entrepreneurship regardless of the context?
Or is “social entrepreneurship” something truly different?
Social entrepreneurship is defined as "individuals with innovative solutions to
society’s most pressing social problems. They are ambitious and persistent,
tackling major social issues and offering new ideas for wide-scale change.
Rather than leaving societal needs to the government or business sectors,
social entrepreneurs find what is not working and solve the problem by
changing the system, spreading the solution, and persuading entire societies to
take new leaps." So defined, social entrepreneurship is concerned with the
entrepreneurs who undertake large-scale social innovation - which may or
may not involve a social enterprise. (Ashoka)
What Is Social
Entrepreneurship?
Nonprofits making money
What Is Social
Entrepreneurship?
Nonprofits making money
For-profits doing things to show they are not evil
What Is Social
Entrepreneurship?
Nonprofits making money
For-profits doing things to show they are not evil
Process of creating value by bringing together a unique package of resources to exploit an opportunity, in pursuit of high social returns
The only big difference between commercial and
social entrepreneurship:
Denomination of the returns
Social and commercial entrepreneurship have most
of the same characteristics
The Process of Social
Entrepreneurship
1. Find an opportunity
2. Develop a business concept
3. Figure out what success means and how to
measure it
4. Acquire the right resources
5. Launch and grow
6. Attain goals
Social Entrepreneurs “Look” Like
Any Other Kind of Entrepreneur Social concern, but also:
Innovativeness
Achievement orientation
Independence
Sense of control over destiny
Low aversion to risk
Tolerance for ambiguity
An Example: www.DiasporaLink.org
Transnational Diaspora Entrepreneurship as a
Development Link between
home and residence countries -
DIASPORALINK
DiasporaLink network The DiasporaLink network is North/South and European
university networks with a common objective to review,
research, develop and disseminate systematic, multi-
disciplinary knowledge and expertise of the collaborating
partners in area of transnational diaspora entrepreneurship as
a catalyst for economic empowerment and development.
Core themes of interest are cross-border SME
entrepreneurship, global entrepreneurship climate, financial
services for the under-privileged, sustainable rural
development and methodologies and tools to train and
sustain diaspora cross-border SME’s.
WWW.DIASPORALINK.ORG
DiasporaLink – TDE corridors
• DiasporaLink is running a EU-sponsored 4-year
project where 25 partners jointly developing a
platform to be tested in migration corridor
• A network is since several years established for
crossborder entrepreneurship linking Ethiopia and
the Netherlands.
• Microfinance is well established in Ethiopia and
start-up financing in Sweden is well developed
• The Ethiopian diaspora in Sweden is about 20 000
and quite well organized
Migration Corridor A migration corridor is linking the diaspora to the country of origin
through:
• Migration
• Financial transfers
• Transnational entrepreneurship and business
• Diasporas contributions to the home region
• Exchange within the extended family
The institutional and business environments within the migration
corridor and their function as a system promoting the transfer of
innovations, social and business concepts into sustainable
enterprises or organizations are often a limiting factor.
Innovation system
Innovation system, describes how a country, a region, a
network or an industry functions as a system promoting
the transfer of innovations and business concepts into
profitable enterprises or organizations in national or
global economy. In a regional innovation system we
identify three major elements (trade and industry;
education and research; the political structure) interacting
(triple helix) in the field between demands from the
market and boundary conditions in the infrastructure.
Linking innovation
systems
Corridor innovation
system
Conclusion
Transnational – and Diaspora entrepreneurs enhance the international trade of all
countries.
bi-cultural, spoke and hub organization, international
networks, enforceable trust, prompt perception of opportunity conditions
Who benefits?
Transnational- & Diaspora entrepreneurship does not have
identical economic consequences or bestow equal benefits
everywhere in the world.
We are facing “Global talent hunt”
Building a corridor innovation system
1. Financial/resource link between diaspora and kin, remittances
2. Team building of entrepreneurs and mentors across corridor
3. Linking financial resources supporting transnational startups
4. Connecting business development services across corridor
5. Information and training for entrepreneurs/mentors
End
Thanks for your attention.