| Article Index |
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| What is Entrepreneueship? |
| Case Study One |
| Case Study Two |
| All Pages |
The word entrepreneurship literally means “to take or carry between” in the sense of an economic transaction; to be a market-maker.
A rich and multidimensional group of entrepreneurship theories and concepts are continuously evolving. The theories differ based on economic, psychological, sociological, anthropological, managerial or ecological perspectives. The concepts also differ based on (a) an entrepreneur - individual actor in the market, (b) entrepreneurial - behaviour in the market, (c) entrepreneurship - combines the actor (entrepreneur) and the behaviour in the market, (d) entrepreneurial process - combines times dimension and behaviour in the market (Markku Virtanen (1997).
Stages of Entrepreneurship
The Global Entrepreneurship Monitor (GEM) approaches the concept of entrepreneurship as a process and considers people in entrepreneurial activity in different phases as illustrated below from conception to early 'gestation', to the established phase and possibly discontinuation of the business. New firms are, most often, started by individuals and individuals typically determine the entrepreneurial attitude of established businesses, regardless of size.
GEM distinguishes two broad categories of entrepreneurs—early stage and established—based upon the age of their business.
Early stage entrepreneurs: those involved in owning and managing, alone or with others, a nascent business or one that has not been in operation for more than 42 months. This stage indicates the dynamic entrepreneurial propensity of a country, i.e., it shows the percentage of population willing and able to undertake an entrepreneurial venture.
Established entrepreneurs: those involved in owning and managing, alone or with others, a business that has successfully survived in the market for more than 42 months; the approximate critical period within which a business is more likely to fail.
These two measurements are both very important as they convey different information about the entrepreneurial landscape of a country. Within this context, GEM provides an umbrella under which a wide variety of entrepreneurial characteristics, such as motivations, innovativeness, competitiveness, and high-growth aspirations, can be systematically and rigorously studied.
Types of Entrepreneurship
The GEM research describes two types of entrepreneurs: improvement-driven opportunity entrepreneurship - where individuals are 'pulled into' entrepreneurial activity, motivated by the desire for independence and to increase incomes as compared to, for instance, being an employee;
and necessity-motivated entrepreneurship - where individuals are 'pushed into' entrepreneurship, because they have no other means of making a living and to maintain current income.
The experiences of the Kredifanm Project in Haiti and Grameen Bank of Bangladesh best illustrate the point that there is nothing wrong with enabling or empowering a 'necessity-motivated' enterprise. It also shows the impact of empowering such enterprise out of the absolute necessity to reduce social and economic disadvantages of under-resourced rural inhabitants. For many, the ability to start a small business can be a stepping stone to becoming a true entrepreneur. The experiences also show the multiplier effect and sustainable impact of empowering women, by providing them with the means - micro credit- to move themselves and their families out of poverty.
Necessity entrepreneurs have a critical and basic role in socio-economic development of any country. This type has shown to be one the most effective means of poverty reduction in developing countries. Further, there is also nothing stopping a necessity-motivated' entrepreneur from evolving into 'improvement-driven opportunity" entrepreneur once the conditions are suited to enable same.
Why is 'entrepreneurship' so important?
Caribbean scholars have been promoting the importance of entrepreneurship since the pre-independence era. However, in 2008, the Caribbean had yet achieved the goal of creating a culture of entrepreneurship, generally and specifically in agriculture. This forum expanded the dialogue on entrepreneurship in order to 'filter' out the noise and clear the fog, to allow the "who" and "what works" in entrepreneurship to become obvious.To choose the entrepreneurial option is to take a path that is filled with many possibilities and a road that only the strong willed can take. It does have issues that should make any sane person ponder.
Why is this important? Because the evidence, globally, proves that 'Entrepreneurs', through their entrepreneurship spirit - feed expectations and change the world! The literature is replete with examples of the importance of entrepreneurship, since it is the competitive behaviour of entrepreneurs that drives the market process and thereby leads to economic progress. It also provides an avenue out of poverty and welfare-dependency for individuals. However, to effectively nurture entrepreneurship, one must understand the ‘bigger picture’ that establishes the conditions and the environment within which entrepreneurship and businesses in agriculture are to be ‘bred, planted and grown’. Parts of this bigger picture were provided in the presentations of Marcia Brandon and Lincoln Price.
Marcia Brandon, Executive Director of the Barbados Youth Business Trust (BYBT), observed that "most of the literature in other countries, including Europe, has been expressing grave concern for the state of their agricultural sector. One common thread that is evident in almost all of the strategies for improving agricultural productivity is that of developing an entrepreneurial culture among farmers". Based on experiences of countries around the world and her own personal experiences in the development field, Marcia outlined some of the prevalent issues which currently surround growth and food security in the Caribbean. Her paper reflects the thinking of Sir Arthur Lewis, when he concluded fifty-three years ago that entrepreneurs are the building blocks of economic growth. See Case study: Economic Growth vs. Food Security, the double burden: Entrepreneurship as a Solution.
Building the Entrepreneurial Culture in CARICOM
Some countries in the region, including Barbados, have started to create this entrepreneurial culture, which is instrumental in creating jobs and building economies. Through organizations such as the Barbados Youth Business Trust (BYBT) and others, Barbados has been elevating entrepreneurs and promoting the benefits and advantages which can be gained when one embarks on this career choice. After 12 years in existence, the BYBT has seen a lot of changes in acceptance of entrepreneurship development and entrepreneurs in the society. However, a lot of work needs to be done with regards to education and training, building trust and creating networks.
Therefore in the region’s efforts to enhance entrepreneurship in the agricultural sector and improve food security, the issue cannot be about diversification, as it has been in the past, but as Best (2001) states, it has to be focused and riveted on the breeding of local agripreneurs, who are not just farmers, but are also thinkers, risk takers and business people. This approach, if it is to be successful, calls for a review of cultural, social and political situations of countries in a holistic way so to ensure that all components are supportive of the new strategy.
Education and culture have been recognized as two of the major factors influencing entrepreneurship in a society. In the region, despite many improvements over the years, entrepreneurship is not been encouraged in schools they way it should be. There is also the fact that in order to teach entrepreneurship in schools, there is the need for competent teachers who understand entrepreneurship and how to transfer this knowledge in a practical, fun way to students so as to develop their innovation and creativity, and capture and improve their logical and critical thinking skills. The cultural mindsets in the region still do not fully support entrepreneurship and many parents still strongly encourage their children to get a government job. Because entrepreneurship is lonely, hard work and full of uncertainties and risks, many people cannot see the value of encouraging its inclusion into the prestigious club of viable career choices. See Case Study Two: Creating an Entrepreneurial Culture
Turning Farmers into Agri-preneurs
Those factors relating to characteristics and qualities of successful entrepreneurs have not been well disclosed in the region. These have to do with qualities and characteristics such as a proactive nature, curiosity, determination, persistence, vision, hard working, honesty, integrity, strong drive to achieve, high levels of energy, goal oriented, independent, demanding, self-confident, high self-esteem, disciplined, strong management and organizational skills, internally motivated, tolerance for failure, positive attitude, positive thinking, sees opportunities where others see problems. All the entrepreneurship literature reveals that for individuals to be successful as entrepreneurs, they need to possess, most, if not all of these characteristics or qualities. Farmers therefore need to assess their qualities to see whether or not they have what it takes to become agripreneurs.
In addition to qualities, there are some very important components which facilitate the entrepreneur in operating a successful business and making money. This relates to business management training. Agripreneurs will need to know about costing and pricing, break-even analysis, production planning, marketing, information technology for bookkeeping and for research and development, contracts, negotiating, business units, and financing. They will also need to know about building partnerships, networks and cooperating with other business persons and agri-preneurs in a more strategic way.
Regional strategists in agriculture, government and other stakeholders need to act urgently to assist farmers in becoming agripreneurs. They need to identify the key entry point which will facilitate food growth and security. In order to do this effectively and see successful results it is recommended that the enabling government policies be developed and implemented to create a culture of entrepreneurship and promote agriculture as one of the most important sectors. Slogans such as “eat what you grow” and “Buy local” are just some of the marketing catch phases which can be brought back into the marketplace and others should be added.
There is the need for farmers to be trained in and have access to fertilizers and irrigation, entrepreneurial training and re-training, better marketing strategies, effective infrastructure, adequate and effective financing, national research institutions, strong agricultural training institutions, international agricultural research system, public investment and stabilizing and supportive price policies and a nationwide involvement in making agriculture strong and productive in the region, ensuring strong and healthy peoples.- - - in today’s reality, millions are starving elsewhere. Food insecurity is not a joke.
Another growth and food security strategy could be also developing and promoting the concept of urban agriculture among the nation’s population. Urban citizens could use every bit of space they can find to grow vegetables and herbs, which they could even sell to neighbours and other friends and relatives, or just use for consumption, which would decrease their food bills; back yard gardens, or even tyre gardens, in cases of very small spaces. It is also strongly recommended that a practical pilot project be undertaken in one country of the region, which would serve as an evidence-based model for food security through entrepreneurship, which after evaluation, could be promoted through-out.
It is imperative that the region’s people clearly understand that in today’s reality, millions are starving elsewhere. Food insecurity is not a joke. It cannot be business as usual it has to be unusual, non-traditional business. “The essence of economic activity is the commitment of present resources to future expectations, and that means to uncertainty and risk” (Peter Drucker)