Chapter 1
Societal Entrepreneurship and Competitiveness
Vanessa Ratten and Leo-Paul Dana
Abstract
This book provides an opportunity to explore the societal effects of entrepreneurship and its result on competitiveness. Over the last decade society has changed as the consequence of demographic shifts and increased usage of information communications technology. This has influenced the type of entrepreneurship individuals and firms to engage in and the focus of their businesses. Despite the importance of society to the speed and rate of entrepreneurship, little research exists that specifically examines societal entrepreneurship and competitiveness. This book aims at narrowing this research gap by discussing the interface between society and entrepreneurship. The core theme emerging from the chapters in this book is that the context of entrepreneurship is dependent on societal perceptions.
Keywords Competitiveness; entrepreneurship; society
Introduction
There has been a growth in investment by businesses and governments in societal entrepreneurship, which is defined as innovation and proactive business activity that has societal implications (Ratten & Welpe, 2011). The difference between societal and other forms of entrepreneurship is the deployment of resources around an issue that affects society at large. Entrepreneurship not only is seen as a way to drive economic growth but also changes the society (Ferreira & Ratten, 2017). In most countries, entrepreneurship has been brought to the forefront of economic and policy discussions. As part of this emphasis on entrepreneurship, businesses have increasingly supported publicâprivate partnerships that benefit larger sectors of society. In addition, more entrepreneurs are focusing on how their activities influence other parts of society and the mechanisms that add social value.
There have been more calls for entrepreneurship research that embeds a process and contextual approach. This is due to studies of entrepreneurship needing to recognize how environmental factors affect decision-making. Societal factors are sometimes assumed in entrepreneurship research and not specifically studied in detail. The relevance of society needs to be examined in terms of entrepreneurship.
Entrepreneurship and competitiveness are sometimes assumed to be related due to the positive connotations of entrepreneurial behaviors (Ratten, 2017). Policy-makers use competitiveness reasons for arguing about issues related to entrepreneurship. This book contributes to the debate around entrepreneurship by taking a societal perspective and highlighting the role of competitiveness. The meaning of competitiveness depends on the situation and can vary depending on the circumstances. A general meaning of competitiveness is the expected level of output based on what peers are doing (Delgado, Ketels, Porter, & Stern, 2012). Ketels (2013) classifies competitiveness based on social infrastructure, political institutions, monetary policy, and micro-economic conditions. Each of these dimensions of competitiveness focuses on economic growth and prosperity.
Aligning with the theme of this book, each chapter addresses practice in the area of societal entrepreneurship. The chapters have different approaches to societal entrepreneurship and try to explain the topic in a myriad of ways. This is crucial as we are seeing a discussion about the evolving typologies of competitiveness. Thus, research on societal entrepreneurship needs to discuss more on the nature of competitiveness. The chapters address societal entrepreneurship at different stages of its development enabling a more holistic understanding of the topic. This enables a more in-depth analysis of the way competitiveness changes over time. As society changes, a longer-term view about the effects of entrepreneurship is needed. Therefore, instead of having a snapshot view of competitiveness, a longer-term approach can be taken. Consequently, each of the chapters of this book identifies different processes and outcomes of competitiveness.
The chapters in this book embed a societal entrepreneurship approach by examining different issues related to the topic. This enables an inter-disciplinary approach to societal entrepreneurship to develop that acknowledges the magnitude of its effect on the global economy. The range of studies in this book documents the reality of societal entrepreneurship and the recent initiatives around the topic. This introduction chapter to the book presents the key research area of societal entrepreneurship and competitiveness. The relevance of societal entrepreneurship is discussed and suggestions about how to design better entrepreneurial strategies stated. Throughout the book, the term societal entrepreneurship is used in a practical way in order to foster a more relevant approach to this research field. The book sets out to clarify what societal entrepreneurship is and how it can be operationalized in different contexts.
Overview of Chapters
This book comprises twelve chapters looking at different aspects of societal entrepreneurship and its influence on competitiveness. The first chapter titled âSocietal Entrepreneurship and Competitivenessâ by Vanessa Ratten and Leo-Paul Dana discusses the reasons why a societal perspective on entrepreneurship is important in todayâs global economy. The chapter addresses the role competitiveness plays in society with an emphasis on entrepreneurial behavior. The second chapter titled âThe Role of Public Entrepreneurship Programmes in Fostering Technology-Based Entrepreneurship: A Turkish Case Studyâ by Dilek Demirhan, Serdal Temel, and Susanne Durst focuses on how education is an important part of entrepreneurship and provides a driver to social cohesion. The third chapter titled âInternationalization of Firms and Entrepreneurâs Motivations: A Review and Research Agendaâ by Hai T. T. Ngo and Paul Agu Igwe highlight how societal factors are internationalizing and influencing entrepreneurâs behaviors. The fourth chapter titled âManagerial Role as a Resource for Social Innovationâ by Sumayya Rashid examines the role public institutions play in societal entrepreneurship. The fifth chapter titled âKey Drivers of Student Entrepreneurship: Experiences from an Australian Universityâ by Andrew OâLoughlin highlights the importance of education in society in terms of its influence on development. The sixth chapter titled âEntrepreneurship from a Business Incubator of a Mexican Public University Supported by a Psychological Programâ by Oscar Javier Montiel-MĂ©ndez and Lorena del Carmen Ălvarez-Castañón focuses on the interplay between societal entrepreneurship and public administration from an education perspective. The seventh chapter titled âKnowledge Creation in ClientâConsultant Interactionâ by Wendy Dubbeld and Robert J. Blomme stress the role of the knowledge economy in societal development. The eighth chapter titled âInternationalization of Social Business: Toward a Comprehensive Conceptual Understandingâ by S. M. Misbauddin and Md. Noor Un Nabi highlights the evolving nature of societal entrepreneurship in terms of social business. The ninth chapter titled âShadow Economy Index â Lessons from Hungaryâ by MĂłnika GalambosnĂ© Tiszberger discusses how informal entrepreneurship, which is an important component of societal change. The tenth chapter titled âMicrofinance and Necessity Entrepreneurship: The Ghanaian Experienceâ by Victor Yawo Atiase and Dennis Yao Dzansi focuses on the role of small- and medium-sized businesses in driving societal change through entrepreneurship. The eleventh chapter titled âThe Impact of Outsourcing on Knowledge and Learning in Organizationsâ by Ingi Runar Edvardsson and Susanne Durst addresses the role learning and co-creation play in societal entrepreneurship. The twelfth chapter titled âEntrepreneursâ Responses to an Economic Crisis: Evidence from a Transitional Economyâ by Abetare Domi and Besnik Krasniqi discusses the role societal entrepreneurship has in emerging economies. The thirteenth chapter titled âSROI in Social Enterprises: A Systematic Literature Review of Recent Trends and Future Agendaâ by Muhammad Ali, Muhammad Imran Qureshi, and Ishamuddin Mustapha focuses on the literature done on social return on investments. The fourteenth chapter titled âMaking a Difference ⊠on My Own Termsâ: Motivational Factors of Youth Involvement in Social Entrepreneurship in Malaysia by Seyedali Ahrari, Steven Eric Krauss, Zaifunizam Ariffin and Lee Kwan Meng focuses on the role of non-profit and altruistic activities in young people.
Concluding Remarks
This book pioneers the use of societal entrepreneurship to explain competitiveness in a range of situations but clearly there is much ground still to cover. New insights on the role of societal entrepreneurship to regional economies and internationalization are needed. This can enable entrepreneurs to improve their performance based on what other high achieving entrepreneurs are doing. Whether the literature on societal entrepreneurship increases like other types such as social entrepreneurship remains to be seen. However, as evident in the chapters of this book, the field of societal entrepreneurship seems to be converging with the literature on sustainable and transformational entrepreneurship. There are a number of areas of societal entrepreneurship that need to be prioritized in research. This includes how societal entrepreneurship drives competitiveness to enable higher performance.
In an increasingly global economy entrepreneurship provides a way for firms, individuals, and regions to compete better. The way to achieve better competitiveness is engaging with local entrepreneurs and communities in the creation of entrepreneurial ecosystems. This enables not only a better collaboration but also efficiency in terms of information-sharing and dissemination. Competitiveness can originate from within firms but also in regions so both perspectives are needed. The relationship between societal entrepreneurship and competitiveness is complex and requires an in-depth understanding of the phenomenon. We contribute to the literature by (1) showing the impact of entrepreneurship on society and the competitiveness of regions and (2) by justifying the inclusion of a societal perspective on entrepreneurship studies.
References
Delgado, M., Ketels, C., Porter, M., & Stern, S. (2012). The determinants of national competitiveness, NBER Working Paper No 18249. NBER, Cambridge, MA.
Ferreira, J. J., & Ratten, V. (2017). Competitiveness of locations: The effects of regional innovation and entrepreneurial practices. Competitiveness Review, 28(1), 2â5.
Ketels, C. (2013). Recent research on competitiveness and clusters: What are the implications for regional policy? Cambridge Journal of Regions, Economy and Society, 6, 269â284.
Ratten, V. (2017). Eco-innovation and competitiveness in the Barossa valley wine region. Competitiveness Review, 28(3), 318â331.
Ratten, V., & Welpe, I. (2011). Community-based, social and societal entrepreneurship. Entrepreneurship & Regional Development, 23(5â6), 283â286.
Chapter 2
The Role of Public Entrepreneurship Programs in Fostering Technology-based Entrepreneurship: A Turkish Case Study
Dilek Demirhan, Serdal Temel and Susanne Durst
Abstract
The aim of this chapter is to present and analyze the role of public entrepreneurship programs in fostering technology-based entrepreneurship in Turkey. More precisely, the authors of the chapter present and analyze the public policy programs aimed at entrepreneurship that have been put into action in Turkey in the last 20 years. The particular focus is on the type of programs that have been introduced, what have they achieved so far, and their contribution to the economy in terms of technology-based entrepreneurship. Together with the statistics about the output of the programs, data are also provided by a series of interviews with technology-based entrepreneurs to develop a deeper understanding of the effectiveness of those programs. Recommendations and ideas are derived from the research to improve these programs.
Introduction
A vast majority of new businesses fail within the first three to five years of operation, often because of a lack of management skills or adequate financial resources (Peters, Rice, & Sundararajan, 2004). Thus, providing support for new businesses has become an important element of entrepreneurship policy for most countries. A countryâs entrepreneurship policy should create an economic environment that encourages productive entrepreneurial activity (Minniti, 2008). While creating this environment, entrepreneurship policy is expected to focus on qualitative aspects rather than quantitative ones. Fostering regular low value-added start-ups has a limited effect on productivity, but supporting the establishment of high value-added businesses may have a greater impact. Empirical studies have shown that economies that support high-impact entrepreneurs, which are innovation-driven, high-growth firms, are superior to those that give importance only to the number of entrepreneurs or SMEs (Henrekson & Sanandaji, 2014; Henrekson & Stenkula, 2009; Mason & Brown, 2013). In fact, Shane (2009) argues that enhanced economic growth cannot be achieved by only encouraging more and more people to start businesses. Thus, governments should stop subsidizing the formation of traditional start-ups and focus on those start-ups with growth potential. If the countries desire to grow economically and create jobs, Shane recommends encouraging high-quality and fast-growing companies (Shane, 2009). Technology-based entrepreneurship is said to be among the most desired entrepreneurial activities. Technology-based entrepreneurship is considered an important factor contributing to the economic development of countries because it produces more competitive products and more value-added products compared to others. Finally, it creates jobs for well-educated people (Curth, Chatzichristou, Devaux, & Allinson, 2015; Malerba, 2010). Thus, many countries have developed dedicated support mechanisms in order to have potential entrepreneurs focus on technology and high value-added goods and services.
Although technology-based entrepreneurs do not represent uniform features as a group, they seem to have unique characteristics that distinguish them from other entrepreneurs. First of all, commercial knowledge alone is not enough for them to become successful, but in-depth technical knowledge plays a vital role in their success (Hsu, 2008). Compared to other start-ups, technology-based start-ups show faster growth rates, generally have well-educated owners or founders, act on new markets that are hard to access, and have intangible assets and complex products (Norrman, 2008).
Against this background, the aim of this chapter is to present and analyze public policy programs to enhance technology-based entrepreneurial activities and their initial results in Turkey. The chapter is structured as follows: first, general information about entrepreneurship in Turkey is given and then the public programs and schemes implemented in Turkey in the last decade are presented. This is followed by interview findings from Turkish entrepreneurs who benefited from those programs. The chapter terminates with the proposal of some policy recommendations to increase the efficiency of cur...