IN 1942 the great Austrian-American economist Joseph Schumpeter saw the entrepreneur as an agent of long-term growth, calling him the force behind “creative destruction”—the disappearance of an existing order, with its processes and products, and the emergence of a new one.
Economics literature acknowledges the importance of the entrepreneur, but formal theoretical analysis—as in microeconomics—gives him only an invisible role, mainly as a possible explanatory variable for “the residual”—that part of gross domestic product (GDP) growth that cannot be attributed to employment, investment or even technology. This disconnect needs to be corrected, and if formal analysis does not correct it, the reality on the ground will.
That is why we greet with tremendous joy the announcement that Global Entrepreneurship Week will be celebrated from November 17 to 23. The celebration will focus on the creation and nurturing of entrepreneurs who will take an active, if not a leading, role in the establishment of enterprises that will help boost our economy.
Participation will be led by Go Negosyo, the pioneering firm that spent the last nine years motivating and teaching people to become entrepreneurs, instead of job-seekers. It will be joined by the Villar Foundation, whose work in exploring business opportunities for families of overseas Filipino workers has been outstanding; and the Philippine Long Distance Telephone Co.’s SME Nation, which has been giving the MVP Bossing Award to outstanding entrepreneurs in the last five years.
Lately, the group has been joined by the British Embassy, led by Ambassador Asif Hamad, giving the program an international dimension.
The leadership and participation of very eminent firms and personalities in the entrepreneurial-development program can only spell success for the endeavor.
However, the task of the firms and their leaders is not easy, as can be gleaned from the Schumpeterian definition: An entrepreneur must be one who will not only discover the opportunity to make a profit, but also act to bring that opportunity to reality. If the person concerned has the initial bundle, no problem; but if, as in the majority of cases, he does not have it, what is he to do? He can borrow money from relatives and friends, convince people to come in as shareholders or take out a bank loan. The leaders will have to provide perspectives on how to deal with this issue.
We hope that the international collaboration on the development of entrepreneurs attracts more people to its programs and develops greater ability among them to work up the “gales of creative destruction.”
Already, announcements on the progress made by some of the program’s graduates—people of various ages who are “dreaming big and achieving something bigger”—are truly encouraging and inspiring.
The success of this program will contribute not just to the expansion of our economy, but to the solution of the nation’s unemployment problem, for the entrepreneur will not only seek a job for himself, but also create jobs for others. Here’s wishing the program success all the way.
Image credits: Jimbo Albano