Promoting Entrepreneurship

Promoting Entrepreneurship

Prof.Dr.Aung Tun Thet

• “The best way to predict the future is to create it.”

• • Winners never quit • Quitters never win

Opportunities

• Emerging in many sectors • Potential to transform Myanmar • Young people strike out on their own - self-

employed• ‘Domino effect’

• Business people “satisfy needs”• Entrepreneurs “create needs”

Government

• Promote entrepreneurship• Newer approaches• Proactive policies

Entrepreneur

• Creator• Destroyer

“All Swans Are White”

Entrepreneur

• Innovator implements change• Five manifestations:

1. Introduction of new/improved good

2. Introduction of new method of production

3. Opening of new market

4. Exploitation of new source of supply

5. Carrying out new organization

Entrepreneurs

• See world differently • Envision future better than others• Seize opportunities that go unnoticed• Perceive and accept risks differently • Exceptional mind-set

Blue Ocean Strategy

Innovative Economics

Prof. Joseph Schumpeter

Promoting Entrepreneurship

Policy Challenges

Promoting Entrepreneurship

• Route to development • Involved in micro and small enterprises

(MSE)

Entrepreneurs

• “Persons who are ingenious and creative in finding ways that add to their own wealth, power, and prestige”.

• Resource and process where individuals utilize opportunities in market through creation of new business firms

Entrepreneurship

• Innovation, risk-taking and arbitrage• Self- employment• Business ownership • New start-ups

Entrepreneurship

• Crucial factor in development and well-being of societies

• Results • Lower unemployment rates• Adopt innovation• Structural changes in economy• New competition

Entrepreneurship

• Distinction between motivations• “Necessity” entrepreneurs• “Opportunity” entrepreneurs

Entrepreneurship matter for Development

• Structural transformation from low-income, traditional economy to modern economy

• Creating new firms outside household• Absorbing surplus labour from traditional sector• Providing innovative intermediate inputs to final-

goods producing firms

Entrepreneurship matter for Development

• Greater specialization in manufacturing• Raising productivity and employment in both

modern and traditional sectors• Employment growth substantial• Contribution to female empowerment

Being Entrepreneurs

• Non-pecuniary returns• Independence• Positive change in lifestyle• Sense of achievement• Higher levels of job satisfaction

Designing Policies

• Complicated• Three questions:

1. Should entrepreneurship be supported?

2. Can entrepreneurship be supported?

3. What is the most effective means of support?

Government

• Cannot raise supply or quantity of entrepreneurship

• Influence allocation of entrepreneurial ability• “Get the institutions right”• Protection of property rights • Well-functioning legal system• Maintain macroeconomic and political stability• Competitive tax rates

“Entrepreneurial Economy”

• Creativity and innovation flourish• Liberalized private-sector economy • Knowledge, policies focused on formation and

function of regional clusters and linkages with rest of economy

Government

• Limitations in dealing with growing number of global challenges:

• Climate change• Insecurity• Violent conflict and terrorism• Migration• Vulnerability to financial and economic shocks

Social Entrepreneurship

Social Entrepreneurship

• Contributions to improve welfare of communities

• Socially-oriented entrepreneurial activities• Spectrum of entrepreneurship

Social Entrepreneurship

• Tied with creating social value• Not personal profit• Passion of social mission + • Business-like discipline, innovation, and

determination

Characteristics

• Addressing critical social problems• Dedication in improving well-being of society

Social Entrepreneurs

• Individuals with innovative solutions to society’s most pressing social problems

• Visionaries • Realists

Definition

• Mission-driven individual • Uses entrepreneurial behaviours to deliver

social value to less privileged• Entrepreneurially oriented • Financially independent, self-sufficient, or

sustainable

Typology

Unique characteristics of Profit-oriented entrepreneur

Characteristics common to both types

Unique characteristics of Social Entrepreneur

•High achiever•Risk bearer•Organizer•Strategic thinker•Value creator•Holistic•Arbitrageur

•Innovator•Dedicated•Initiative taker•Leader•Opportunity alert•Persistent•Committed

•Mission leader•Emotionally charged•Change agent•Opinion leader•Social value creator•Socially alert•Manager•Visionary•Highly accountable

Boundaries of Social Entrepreneurship

• Distinction between social entrepreneurship and other non-entrepreneurial, mission-driven initiatives

• Do not extend to philanthropists, social activists, environmentalists, companies with foundations, socially responsible organizations

• Needed and valued but not social entrepreneurs

Social Entrepreneurs

• Operate within boundaries of two business strategies:

1. Non-profit with earned income strategies

• Hybrid social and commercial entrepreneurial activity to achieve self-sufficiency

• Organization both social and commercial• Revenues and profits generated improve

delivery of social values

Social Entrepreneurs

2. For-profit with mission-driven strategies• Social-purpose business • Performing social and commercial entrepreneurial

activities simultaneously to achieve sustainability• Organization both social and commercial• Financially independent • Founders and investors benefit from personal monetary

gain

Entrepreneurship Spectrum

NON-PROFIT FOR-PROFIT

Mission-DrivenStrategies

Earned Income Strategies

Dependency Self-Sufficiency

Sustainability

MISSION GROWTH

ENTREPRENEURSSOCIAL ENTREPRENEURS

PROFIT GROWTH

Social Entrepreneurship

• Flourished significantly at practical level• Social Innovations

• “ You have to accept whatever comes, and

• the only important thing is that you meet it with the best you have to give. ”

Thank You!

THANK YOU!