Systemic Entrepreneurship

Contemporary Issues and Case Studies

Gideon Maas, P. Jones

• Publisher: Palgrave Pivot
• Year: 2015
• Print ISBN: 9781349506200, 9781137509789
• eBook ISBN: 9781137509802
• Topic: Business
• Subtopic: Business General
• Index: Business

Systemic Entrepreneurship focuses on creating an awareness of systemic entrepreneurship and illustrates the fact that one needs to approach entrepreneurial support activities from many different angles.

1

An Overview of Systemic Entrepreneurship

Abstract: Finding answers for renewed socioeconomic growth in the current global landscape seems to be a daunting task. Although a plethora of entrepreneurial development initiatives exist results seems not to be forthcoming. Rethinking the way entrepreneurship is promoted is therefore called for and the focus of this drive is systemic entrepreneurship. Through systemic entrepreneurship a broader holistic and heuristic approach can be achieved leading to improved policy formulation promoting socioeconomic growth. Within this chapter systemic entrepreneurship is discussed and supported by input on the role of business schools supporting systemic entrepreneurship. The chapter concludes underlining the fact that systemic entrepreneurship is a multi-disciplinary and multifaceted approach to the current and future challenges faced worldwide.

Maas, Gideon and Jones, Paul (eds.). Systemic Entrepreneurship: Contemporary Issues and Case Studies. Basingstoke: Palgrave Macmillan, 2015. DOI: 10.1057/9781137509802.0008.

1What is different?

This is the year 2000 characterised by conversations around world pollution, how the developed countries can support the developing countries, the creation of smaller businesses, accelerated growth initiatives. Entrepreneurs are primarily concerned with maintaining and increasing profits. Existing business models are used and innovation focuses on product or service improvements mostly in an incremental manner.

This is the year 2014 characterised by conversations focusing on how to address the worldwide recession that struggles to get out of a recessionary phase. Unemployment, especially youth unemployment, is high in developed and developing countries. Retrenchments are the norm and a scarcity of resources is experienced worldwide. Although the topic of entrepreneurship was addressed in the year 2000 a more frantic pace debate is ongoing on how entrepreneurs can and should assist the ailing socioeconomic growth patterns worldwide.

The question is what is different between the years 2000 and 2014 or even any other year? What has changed? Are the correct answers found and if so, are they implemented? Do the capabilities and capacity exist to transform from a struggling socioeconomic landscape worldwide to a more progressive landscape? Are the right questions asked or are the underlying assumptions for decision-making still part of an old order?

It is safe to say that finding answers for renewed socioeconomic growth in the current global landscape seems to be a daunting task. One problem might even be that the right questions are not asked making the finding of potential solutions even more difficult. Muff et al. (2013) agrees that current economic model thinking is based on assumptions made during the 19th century which indicates that the wrong questions are answered in the current environment.

The importance of entrepreneurship creating and supporting socioeconomic growth is not a new concept and generally accepted by most nations as an important part of their development strategies (Pretorius et al., 2005; Bosma et al., 2007; Gibb and Hannon, 2006). It is postulated that entrepreneurship will grow in its importance in future because of factors such as accelerated competition due to improved knowledge levels and information, increased innovation because of the commercialisation of research and the general and increased support entrepreneurs are receiving worldwide. In terms of the latter, a plethora of initiatives exist supporting entrepreneurs such as increased number of educational and training programmes, business incubators and science parks supporting entrepreneurs, and research grants provided by institutions such as the European Union. Despite this seemingly plethora of support services the global economy is still struggling to survive the recession of 2009, let alone create the necessary conduits for renewed socioeconomic growth. The statement is often heard that there are ample examples of entrepreneurial activities especially in developing countries. Several of these examples refer to individuals trading on street corners or markets but it raises the question whether these activities are indeed entrepreneurial and whether they are making sufficient inroads on poverty let alone in stimulating socioeconomic growth. In this regard, Sautet (2013) concurs that although entrepreneurship is socially productive it struggles to eliminate mass poverty. It should be pointed out that low or no socioeconomic growth, unemployment and poverty are not the realm of developing countries alone. There are many developed countries also struggling with the same issues of low growth, unemployment and poverty.

There is no doubt that a new approach to the development of sustainable entrepreneurship is required – a systemic approach is needed that is more heuristic and holistic in nature to accommodate both individualistic and societal approaches in the promotion of entrepreneurship. More of the same seems not to be working. A heuristic and holistic way of investigating is called for discovering the optimum process of supporting socioeconomic development in the current and future global context.

2Systemic entrepreneurship

It is not the intention of this book to wander into a scholarly debate about the definition of entrepreneurship and through that to formulate a uniformly accepted definition for entrepreneurship. The Quality Assurance Agency for Higher Education in the United Kingdom (QAA) provided sufficient guidelines as a basis for defining enterprise and entrepreneurship which will also apply for this book. According to the QAA (2012: 8) guidelines ‘enterprise is defined here as the application of creative ideas and innovations to practical situations. Entrepreneurship is defined as the application of enterprise skills specifically to creating and growing organizations in order to identify and build on opportunities’.

Within paragraph one it was highlighted that there is consensus that entrepreneurship can and should play an important role in socioeconomic development. Moreover, it was pointed out that entrepreneurial activities focusing only on the individual entrepreneur or local regions would probably not have the desired positive impact on national socioeconomic development measures. A balance should be struck between individual entrepreneurial activities and society-wide changes which can have a positive impact on socioeconomic growth. Ács et al. (2014) concurs that society or even country-level entrepreneurial measurements have never received adequate attention in the past. In order to address global phenomena such as poverty, unemployment, low or no growth, it is proposed that a systemic approach to entrepreneurship should be followed. According to the Merriam-Webster on-line dictionary (www.merriam-webster.com/dictionary/systemic) the term ‘systemic’ refers to an entire system and according to Ács et al. (2014: 477) the term ‘system’ ‘constitutes of multiple components that work together to produce system performance’. Rosenberg and Nelson (in Ács et al. (2014: 477) further illustrate that it is not implicit that the sub-components of a system are in perfect harmony with each other. There might be weaknesses in the system, which need specific attention to restore the balance of the total system. Within this context ‘systemic entrepreneurship’ refers to a broader orientation in terms of entrepreneurship promotion and combines the individual and other sub-systems such as society and institutions interacting and collaborating to create a positive framework in which opportunities can be exploited. Sautet (2013: 393) describes systemic entrepreneurship as ‘socially productive entrepreneurial activities that go beyond the local level. Systemic entrepreneurship takes place through the establishment of organizational structures that enable the exploitation of opportunities beyond the initial local level through the capture of economies of scale and scope’. In this context, it is not argued against the existence of locally focused entrepreneurial activities. To the contrary, they are important for the cascading of wealth opportunities to the broader society. The argument is that if systemic entrepreneurial activities that focuses beyond the local levels and that acts as impetus to socioeconomic growth are inferior to the activities of promoting local entrepreneurship desired positive impacts for societies and countries cannot be created. Rethinking the way entrepreneurship is promoted is therefore called for and the focus of this drive is systemic entrepreneurship. Through systemic entrepreneurship a broader holistic and heuristic approach can be achieved, leading to improved policy formulation promoting socioeconomic growth. Far too often policy formulations are short-term-orientated (less than five years) because of the political electoral system of a specific region and country. A longer term focus and policies focusing on sustainability should be encouraged.

3Role of innovation in systemic entrepreneurship

Within a globally fast changing and seamless environment it is accepted that the promotion of systemic entrepreneurship is a complex activity, let alone the impact of new knowledge creation and subsequent impact on new creations (innovations) but also the cultural diversity and its impact on national and local economies. Systemic entrepreneurship cannot be seen as a static approach within such a volatile environment – an approach of staying in a floating equilibrium with this volatility is called for. The question is how to create a floating equilibrium among all the sub-systems of systemic entrepreneurship – for example, maintaining an optimal collaborative arrangement between individual entrepreneurs, society, government (local and national), other institutions and academia?

The key to successful systemic entrepreneurship is innovation. Without innovation an optimal balance cannot be created among all the sub-systems of systemic entrepreneurship. Without innovation the socioeconomic landscape can become stale over time characterised by incremental changes on mostly local economic fronts. The complexity of systemic entrepreneurship is increased by the notion that innovation breeds innovation in a knowledge-driven environment. Linear models cannot provide optimal solutions anymore. In this regard Philpott et al. (2011: 161) argue that ‘historical accepted linear models are now being surpassed by the contemporary and dominant view that innovation is most appropriately perceived as a systemic, networked phenomenon’. A further dimension is added by Knickel et al. (2009) who refer to first- and second-order innovation. First-order innovation focuses on limited changes and second-order innovation on system changes which necessitates that existing assumptions, beliefs and values can only be challenged through second-order innovation. When second-order innovation is successful it can act as the breeding ground for first-order innovation. The question arises which order is promoted through the different sub-components of systemic entrepreneurship? Within a stale socioeconomic environment it can be argued that first-order innovation would probably be the norm. Learning is key in stimulating second-order and non-linear innovation to challenge existing values and ways of behaving. Linear training of the ‘what, how and when’ should be combined with more explorative learning such as ‘why not’ or ‘what if’ approaches. Learn by doing focus more on first-order innovation but if societies and nations want to grow beyond localism they need to learn how to be successful on second-order innovations. Second-order innovations might be regarded as radical but yet again, is that not what is called for in an environment of stale growth patterns? Szekely and Strebel (2013: 472) concur with the radicalness of systemic entrepreneurship indicating that ‘beyond radical novelty lies game-changing systemic innovation that is transforming the relationship and interactions between industry competitors, people’s behaviours and lifestyles, and even the very aims of business’.

4Article

In a knowledge-driven environment a plurality of perspectives solving a given opportunity or problem might exist of which systemic entrepreneurship represents one such possibility. More should be done to debate systemic entrepreneurship in futuristic terms breaking away from traditional assumptions, values and beliefs, a new order of doing business is called for which necessitates exploring different ways of undertaking challenges. In the following article, the author explores different ways of stimulating systemic entrepreneurship through the creation of new directions for business schools.

Article 1: building better business schools for a changing world

Author: Hilary Duckett

Introduction

This chapter critiques the role of contemporary management education and challenges the preconceptions of the role of a business school and its mission and ontology. It reviews the historical development of management education and problematises the business school model. An alternative modelling is proposed which draws on three core principles: Education for Sustainability; Education for Humanity and Education for Life. It uses the Plymouth Business School as a central case and draws on examples from other schools to illustrate the application of these principles. A particular learning setting is proposed which comprises carefully scaffolded active- and problem-based learning. The objective of this chapter is to fundamentally critique the question what is a business school for. It is proposed that schools become a conduit for an entrepreneurial ecosystem within which students, academics, employers, community stakeholders and global partners collaborate to deliver real-world value derived through the learning environment, research foc...

Table of contents

• Cover
• Title
• 1  An Overview of Systemic Entrepreneurship
• 2  An Overview of Entrepreneurship Education
• 3  Entrepreneurship Support
• 4  Quo Vadis?
• Index