The Concept of Entrepreneurship
The term of French origin was first attributed to a French economist circa 1700. His basic definition alluded to the organization and/or operation of a business or businesses. Several management, economic and business writers from 1700 to 2013 have offered alternative definitions as business creation, ownership, and economies have developed.
- Entrepreneurs are non-fixed income earners who pay known costs of production but earn uncertain incomes – Jean-Baptiste Say 1767-1832, French economist and businessman;
- Entrepreneurs are innovators who use a process of shattering the status quo of the existing products and services, to set up new products, new services – Joseph Alois Schumpeter 1883-1950, Austrian political economist;
- An entrepreneur is a person with a high need for achievement. He is energetic and a moderate risk taker – David McClelland 1917-1998, American psychologist;
- An entrepreneur searches for change, responds to it and exploits opportunities. Innovation is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into a resource – Peter Drucker 1909-2005, Austrian American management consultant, educator and author;
- Entrepreneurship is the pursuit of opportunity without regard to resources currently controlled – Howard Stevenson 1950 – American politician from Utah;
- Entrepreneurs take initiative, accept risk of failure and have an internal locus of control – Albert Shapero 1921-1985 Academic researcher;
- An entrepreneur is someone who commercializes his or her innovation –
These writers have all focused on and captured varying, but nonetheless critical aspects that define who entrepreneurs are and what they are about. Early on in this discourse we are forced to acknowledge the following:
- Entrepreneurs by nature of attitude and focus will own small and medium sized businesses, but all small business owners are not and need not be entrepreneurs;
- Entrepreneurship as defined by its attributes of innovation, need for achievement and a need for change dictates that such behaviour should also be embraced within organizations;
Bringing entrepreneurship to the forefront of economic growth and expansion in Barbados, or any economy, requires a multifaceted approach involving collaboration among various stakeholders. Barbados can harness the potential of entrepreneurship to drive economic recovery, create jobs, and foster sustainable growth by addressing key issues, such as access to finance, education and training, infrastructure development and innovation and technology. Collaboration among government, private sector, academia, and civil society is paramount to realizing this vision and building a vibrant entrepreneurial ecosystem. Let us examine in the context of any economy, but specifically Barbados what is required to bring entrepreneurship and its tenets to the forefront of our economic growth and expansion.
The Eco-system
Our entrepreneurial development landscape is characterized by several public and private agencies whose roles range from some form of mentorship to provision of finance to lobbying and negotiating. (BEF, BIDC, BTFL, BYBT, EGFL, FUNDACCESS, GOB, SBA, TEN, YES). Unfortunately, when taken objectively, a cohesive approach to all areas of entrepreneurial development is what we don’t currently possess control of.. Any cohesive ecosystem will cater to and address the needs of business startups, micro-business, and small businesses through their expansion to medium size companies and large enterprises, and our attention to framework and structure in this regard is critical.
Entrepreneurs often possess a great idea first and foremost as the output of their innovative thought processes, and the proposed definitions above support this. However, while access to finance is undoubtedly a significant challenge for many entrepreneurs, addressing underlying issues such as a lack of business acumen can indeed mitigate some of the barriers to obtaining funding. While access to finance remains an important consideration for entrepreneurship, focusing solely on this aspect overlooks the broader ecosystem of support and resources that entrepreneurs need to thrive. By investing in training and mentorship initiatives, governments, organizations, and stakeholders can empower individuals to unlock their entrepreneurial potential, drive economic growth, and create positive social impact.
We need a joint public-private approach to the creation of this cohesive eco-system for the growth and expansion of our entrepreneurial class locally. Here are a few thoughts:
- A radical reorganization of our agencies is essential to create focus through specialty centres of excellence. At each stage of its growth, businesses require and demand different things and these variations require unique attention as they are critical to success at that stage; The centres of excellence would consist of a network of resource centres where access to services, finance, training, mentorship and other development mechanisms would be made available, with each centre focusing on an industry or sector that is vital to our economic growth and development.
- Startup and micro business focus (Executing Agencies: Barbados Trust Fund Limited, Youth Entrepreneurship Scheme, Barbados Youth Business Trust; UWI SEED programme).
- Small and medium sized entity focus (Executing Agencies: FundAccess, BIDC).
- Large enterprise focus (Executing Agencies: Enterprise Growth Fund, BIDC/Export Barbados)
These agencies across the ecosystem would be supported by the following with respect to policy framework, structure and strategic approaches and ecosystem infrastructure:
- Ministries of the Government of Barbados
- Barbados Entrepreneurship Foundation
- Small Business Association
- TEN Habitat
- Alignment within our educational system to provide the educational assets prospective and existing entrepreneurs require. There should be a mix of formal and informal approaches to this education, and it must incorporate practical components; Business ownership, entrepreneurial concepts and innovation at a minimum should be incorporated into any learning outcome across our education system, remembering that an entrepreneurial mindset benefits employees and their organization.
- Formation of public-private partnerships to address challenges from access to finance and marketing, legal and other challenges in a meaningful way. This does not exclude any efforts separately undertaken by each group, but rather places additional emphasis and resources to address this issue at a sector wide macro level. Such partnerships would include MSME practitioners, academia, public and private sector representatives and holders of capital.
The Entrepreneurial approach
In conclusion, I quote one of the suggested definitions above that in my opinion captures not only what we as entrepreneurs seek to achieve, but articulates an approach that would serve our private and public sectors, government and others well to adopt.
“Entrepreneurs are innovators who use a process of shattering the status quo of the existing products and services, to set up new products, new services” – (Schumpeter);
In my opinion, a critical aspect of fostering entrepreneurship and driving growth is the need to challenge the status quo and embrace innovation. Indeed, entrepreneurship thrives on the willingness to question conventional wisdom, explore new ideas, and take calculated risks to achieve desired outcomes. In essence, embracing entrepreneurship as a viable concept and integrating it into our collective psyche is crucial for driving future growth and development. By cultivating an entrepreneurial mindset, fostering innovation, and providing the necessary support and resources, societies can unlock the full potential of entrepreneurship as a catalyst for positive change and prosperity.
KEY:
BEF
BIDC
BTFL
BYBT
EGFL
FUNDACCESS
GOB
SBA
TEN
YES
Not sure
