Претприемничката способност е ситуација во која технологијата или можностите за економски - страница №1/1
INFORMATION AS POWER FOR ENCOURAGING NEW OPPORTUNITIES IN ENTRPRENEURSHIP
Riste Temjanovski, Ph.D1
Entrepreneurial ability is a situation in which technology or changes in economic, political, social and demographic conditions create the potential for creating something new. Entrepreneurial opportunity can be utilized by creating a new product or service, opening new markets, develops new ways of organizing, using of new material, or introducing new manufacturing process. The main question is how making the possibilities in entrepreneurial world? How to help people figure out new business ideas that have the potential to create profits? Why some people but not others, creating new ideas for products, services or markets, or they recognize the opportunities in the outbreak, which may develop into successful new businesses?
Different information and situation enables some people to be successful in making decisions about a business idea. Some people have better access to critical information, information that helps identify opportunities or to formulate new ideas, innovation product or service and that they discover opportunities others miss.
Key words: information, ideas, entrepreneurial behavior, business models, economical development
ИНФОРМАЦИЈАТА КАКО СИЛА ЗА ОХРАБРУВАЊЕ НА НОВИ МОЖНОСТИ ВО ПРЕТПРИЕМНИШТВОТО
Претприемничката способност е ситуација во која технологијата или можностите за економски, политички, социјален и демографски услови создаваат потенцијали во креирањето на нешто ново. Претприемничката можност би можела да се искористи во креирањето на нов производ или услуга, отворање на нов пазар, развој на нови начини на организација, користење на нови материјали или воведување на нов производствен процес. Основно прашање е како д а се креираатможноститет во претприемничкиот свет? Како да им се попомгне на луѓето да обликуваат нови бизнис идеи кои ќе создадат потенцијал за профит? Зошто некои луѓе креираат нови идеи за производи, услуги или пазари, или ги препознаваат можностите кои можат да создадат успешни бизнис?
Различни информации и ситуации овозможуваат луѓето да донесат успешни одлуки за бизнис идеи. Некои луѓе имаат критички информации, информации кои помагаат да се помогне и идетификува можноста или да создадат нова идеја, иновативен производ или услуга и да ја најдат можноста што кај другите отсуствува.
In this paper, the key issue to be addressed was whether information is main point to entrepreneurship and entrepreneurial ideas. Information can be like a word, picture, shape, marketing idea, to motivated and to discover something new and different (product, process, activity) which are directed at connection and coordination of different production factors in order to achieve the profit. The meaning of information is to identify or create a product (whether a good or a service) in a creation process, services or in a marketing processes.
There was a time when the concept of creativity like information, innovation was only associated with writers, painters, musicians and similar people in artistic professions. But with the ever-increasing necessity of cultivating a unique brand personality, the need for creative information has transitioned from the arts into everyday business. In addition, the act of producing a product that distinguishes itself from competitors in a marketplace where differences are often hard to come by demands a high degree of creativity both in information and innovation.
The word entrepreneur or entrepreneurship is gaining more popularity in the recent years. Modern conditions for doing business, that apply to enterprises and any sort of organisation, emphasize progressiveness in entrepreneurial behaviour. Entrepreneurial behaviour demands and creates changes not just in the company itself but also in its external environment. The purpose of entrepreneurial behaviour is a constant search for higher efficiency through permanent changes in the profit potentials of an enterprise. Entrepreneurship is not just about economics, but rather it is related to all aspects of human behaviour and actions.
With all this hype and fame of entrepreneurialism, most of us still don’t have a clear definition of what entrepreneurship is. To begin embracing it, let’s take a closer look at the meanings and definitions of entrepreneurship. The concept of entrepreneurship has been noted as a factor in microeconomics since the 17th century, with the work (Essai sur la nature du commerce en general” first published in 1755) of Richard Cantillon who anticipated the belief that the entrepreneur brought equilibrium to a market by correctly predicting consumer preferences. From this concept, the meaning of entrepreneurship has evolved through the development of business and economics in the recent years and decades.
A little over 200 years ago, the French economist J.B. Say remarked, “The entrepreneur shifts economic resources out of an area of lower and into an area of higher productivity and greater yield.” But, who is this entrepreneur Say speaks of? In the United States, an entrepreneur was defined as “one who starts his own, new and small business,” although Drucker noted that not every new small business is entrepreneurial or represents entrepreneurship. Also, not every entrepreneurial business is innovative. Drucker identified entrepreneurs as people who see “change” as the standard, echoing Heraclitus of Ephesus, the Greek philosopher who said, “The only constant in life is change.” Entrepreneurs regard change as essential and welcome it as beneficial to the lives of big corporations and small businesses alike. However, the kind of change implied here, Drucker clarified, is typically not the kind that can be brought about simply by deciding to create it. Rather, it is created by entrepreneurs who actively go looking for existing change in order to exploit it.
In a crisis, knowledge or information can save a life. In daily life, knowledge can prevent us from making serious mistakes. In the current economic crisis, knowledge would have given us the power to prevent it. We know that knowledge is power because dictators can only stay in power by withholding or distorting information.
However it does suggest that entrepreneurs may often collect information and respond to it in more innovative ways. Peter Drucker viewed innovation as the tool or instrument used by entrepreneurs to exploit change as an opportunity. He argued that innovation, as a discipline, is capable of being learned, as well as practiced. While he never agreed to a theory of innovation, he realized enough was known to develop it as a practice – a practice based on when, where and how one looks systematically for (innovative) opportunities and how one judges the chances for their success or the risks of their failure. From Drucker’s perspective, systematic innovation consisted of the purposeful and organized search for changes, and in the systematic analysis of the opportunities such changes might offer for economic or social innovation.
Information + motivation + creation = Entrepreneurship
Today, innovation is about much more than new products. It is about reinventing business processes and building entirely new markets that meet untapped customer needs. Most important, as the Internet and globalization widen the pool of new ideas, it's about selecting and executing the right ideas and bringing them to market in record time.
Creative entrepreneurs can weather the current global economic crisis better than traditional businesses, 'It's not only the creative entrepreneurs but it's the large companies that are being challenged. Creative companies can survive any condition
If we’ll search the Internet for the definition of entrepreneurship now, we will found the following evolving meanings published by some of the leading providers of information online:
From these definitions, we can extract the following qualities and characteristics of entrepreneurship:
1. Initiative, innovation and creativity
2. Business sense, economy, productivity and profitability
3. Organization, leadership and responsibility
4. Risk management and strategy
5. Passion and voluntarism
Innovation, motivation and creation go hand-in-hand to Entrepreneurship. Informational issues are central to entrepreneurship theory. Opportunity identification, investigation, and exploitation can be seen as an information collection process, with entrepreneur’s optimal strategy being closely related to this information costs, and his belifs.4 For instance, some entrepeneurs already in the relevant industry might be able to cheaply trial a new idea, while for others trialling the same idea could be much more expensive.
The real options approach in entrepreneurship theory gives lessons on how to respond to future information arrival. According to real options thinking, the entrepreneur should value uncertainty, making investiment that generate real options. For instance a relatively small investment may generate the information needed to know whether it is worthwhile to invest on a larger scale. Hence high rate of failure of new entreprenueurial firms can be at least party interpreted as result of a process of testing the water, or in other words of creating real options. One restriction on the application of this line of reasoning is that sometimes entrepreneurs need to invest on a significant scale at the outset in order to build barriers to entry before others who observe what they are doing copy their ideas.
It is simply assumed that particular information will bland or will arriver at particular times, rather than that the decision-maker has to decide what information to collect. The entrepreneur is assumed to be creator of real options rather than a collector of information. Note that, when considering what information an entrepreneur will collect, it is a mistake to assume that he will economize on information costs simply by deciding how much information to collect, then collection it, and then making a decision. The collection of information inherently involves option value. For instance economic search theory involves the derivation of rules to decides when to stop collection information and make a final collect. Information collected so far affects the expected the expected value of collection further information, so the decion of when to stop needs to be made as the information to collect not before. There is also option value in deciding which information to collect next. Information collect so far changes beliefs, so affecting choices over the subsequent path of information collection.
In order to optimize the information collection process, and hence option value, the correct choices have to be made over what information to collect next. Other things being equal, it is best to collect cheaper information next. However the incentive to collect particular information next is also increased if is more likely to alter the subsequent path, or lead to rapid abandonment.
Further, information is often collected as a by product of implementation actions. For instance, in starting a venture the entrepreneur learns more about it, such as the market response. Therefore, as part of optimizing his information collection process, the entrepreneur has to decide how, and in what order, to perform implementation actions. Collecting information as by product can reduce the option value that it involves, as reacting to the information in ways that do not build on what has already been done involves a loss of sunk costs. By product information leads the entrepreneur to adjust his plans after launching a venture, but in ways that are to some degree constrained by his initial investments. Having gained by product information, the entrepreneur might have alternatively decide that he refers abandonment. For instance, he might have discovered that there is not the market for the product he is producing that he had expected. This need not be seen as “failure”, as it can be the result of an entirely efficient process of information collection. The point is that the entrepreneur needs to collect the right information, in the right sequence, and in the right ways. Further he needs to be willing to abandon at the correct moment, if it is justified by the information that he has collected.
Etymologically speaking, entrepreneurship means being able to start certain activities with the aim of achieving a certain goal. Today, entrepreneurship has become a specific conditional philosophy, a set of appropriate cultures and different capabilities of people. But source of those activities lies on the information.
Information about the information economy, so to speak, is critical as nations re-tool for innovative enterprises. As a result, benchmarking entrepreneurship and innovation was an important policy reform that countries should undertake. For example, America’s ATP program evaluates the impact of projects and tracks their results through the life of the project, and every other year for six years. “Only with better data and information can we make more informed policy and program decisions,” explained experts of the US Commerce Department’s Technology Administration. Innovative entrepreneurship is becoming the cornerstone of economic growth in the developed world. It is the source of jobs and high living standards for individuals, as well as great benefits for society in the form of technical progress and economic development. Of Fortune magazine’s Global 500 companies, one-third did not exist 40 years ago, and a quarter were only created over the last two decades. Today’s multinationals are yesterday’s start-ups. Promoting innovative entrepreneurship is therefore a central concern for government and industry. To achieve this, a myriad solutions are proffered – which is itself a reliable indication that no one really knows how to do it for sure. Yet our ignorance does not restrain our ambition. Rather, huge amounts of financial and human resources are poured into fostering an environment for innovative entrepreneurship to thrive, with mixed results.
At the top of the list are the masters of many genres of innovation. There are business model innovators, such as Google, Apple Computer Inc. Nokia, BlackBerry, IBM, BMW, Toyota, Procter and Gamble, General Electric Co., 3M, are the most creative companies.
The main point is how they does organize and management their innovation. The companies are speed requires coordination from the hub: "Fast innovators organize the corporate center to drive growth. They don't wait for [it] to come up through the business units." They team up people from across the org chart and link rewards to innovation. Innovative companies build innovation cultures. They have to be willing to get down into the plumbing of the organization and align the nervous system of the company. Embrace the collective brains of the world. Make it a goal that 50% of the company's new products come from outside P&G's labs. Tap networks of inventors, scientists, and suppliers for new products that can be developed in-house.
A lot of companies fall into the trap that they thought things were really improving, but in the end, it didn't work out that way. They don't want to make that mistake. For many companies, cross-functional collaborations last weeks or months, not years. Southwest recently gathered people from its in-flight, ground, maintenance, and dispatch operations. For six months they met for 10 hours a week, brainstorming ideas to address a broad issue: What are the highest-impact changes we can make to our aircraft?
Each time par example BMW begins developing a car, the project team's members -- some 200 to 300 staffers from engineering, design, production, marketing, purchasing, and finance -- are relocated from their scattered locations to the auto maker's Research and Innovation Center, called FIZ, for up to three years. Such proximity helps speed up communications (and therefore car development) and encourages face-to-face meetings that prevent late-stage conflicts between, say, marketing and engineering. In 2004 these teams began meeting in the center's new Project House, a unique structure that lets them work a short walk from the company's 8,000 researchers and developers and alongside life-size clay prototypes of the car in development.
P&G has helped establish several outside networks of innovators it turns to for ideas the company can develop in-house. These networks include NineSigma, which links up companies with scientists at university, government, and private labs; YourEncore Inc., which connects retired scientists and engineers with businesses; and yet2.com Inc., an online marketplace for intellectual property.
Infosys Technologies Ltd., the Bangalore-based information technology services company that popped up at No. 10 on our Asia-Pacific list, takes a direct approach to making sure management stays involved in the innovation process. Each year the company selects nine top-performing young guns - each under 30 -- to participate in its eight yearly senior management council meetings, presenting and discussing their ideas with the top leadership team. They believe these young ideas need the senior-most attention for them to be identified and fostered. If an organization becomes too hierarchical, ideas that bubble up from younger people.
Table: The world’s 15 most innovative companies - 2008.
Source: The Boston Consulting Group (2008, survey and analysis of 1070 senior executives in 63 countries) http://www.businessweek.com/ (04.02.2012)
Few companies have embraced the open innovation model as widely as IBM. While the company's proprietary technology is still a force to behold -- Big Blue remains the world's largest patent holder, with more than 40,000 -- the company is opening up its technology to developers, partners, and clients. Last year it made 500 of its patents, mainly for software code, freely available to outside programmers. IBM helped fund the Open Invention Network, a company formed to acquire patents and offer them royalty-free to help promote the open-source software movement.
In a climate when innovation efforts and research and development budgets are likely to see more scrutiny than ever, our 2008 list of the World's Most Innovative Companies adds three financial measures to the mix to determine the rankings. For this year's list, votes cast in the proprietary BusinessWeek-BCG survey received 80% of the overall weighting, stock returns were weighted 10%, while three-year revenue and margin growth each got 5%. While these changes -- only votes from our survey counted in the past -- marked the biggest shift yet in our rankings of the World's Most Innovative Companies, there are some similarities to previous years. Once again, Apple's design whizzes lead our list, followed by Google’s search geniuses and Toyota's hybrid car mavens.
Ihe list of the world’s most respect names in innovation sends two power messages. First, design is a differentiator, and Innovation is becoming ever more broadly defined. But every idea is born from information.
How to Set Up a Creative Work Space to Foster Innovation
Creativity is the mental and social process used to generate ideas, concepts and associations that lead to the exploitation of new ideas. Or to put it simply: innovation. Through the creative process, employees are tasked with exploring the profitable outcome of an existing or potential endeavor, which typically involves generating and applying alternative options to a company’s products, services and procedures through the use of conscious or unconscious insight. This creative insight is the direct result of the diversity of the team – specifically, individuals who possess different attributes and perspectives.
It’s important to note that innovation is usually not a naturally-occurring phenomenon. Like a plant, it requires the proper nutrients to flourish, including effective strategies and frameworks that promote divergent levels of thinking. For example, by supporting an open exchange of ideas among employees at all levels, organizations are able to inspire personnel and maintain innovative workplaces.
Therefore supervisors must manage for the creative process and not attempt to manage the creativity itself, as creativity typically does not occur exclusively in an individual’s head but is the result of interaction with a social context where it’s codified, interpreted and assimilated into something new. Within this system, incentives are paramount – ranging from tangible rewards such as monetary compensation to the intangible, including personal satisfaction and social entrepreneurship.
Establishing a creative environment takes more than just turning your employees loose and giving them free reign in the hope they’ll hit on something valuable. As with any other system, the process of creativity requires the proper framework to operate effectively, which also enables management to evaluate the profitability of the results.
Popular approaches to fostering innovation through creativity include:
And fostering that environment (not the act of creativity itself) is the task of creative leadership.
There are six common traits present in creative people:
The first three traits are largely cognitive and the last three refer to aspects of personality. As none of the six are viewed to be genetically inherited, creativity can be taught and, as it relates to modern business, cultivated.
When properly managed, creativity can be found in any employee, regardless of the job description. On the whole, creative people typically fall into a variety of categories, ranging from those who are quick and dramatic to people who are careful and quiet. But one thing remains true of all: most creative ideas are not flashes of inspiration in an individual’s head but rather come from how people identify, create, store, share and use the knowledge they’re exposed to in their surrounding environment.
Experience with entrepreneurship in R. Macedonia
All countries in transition process were faced with initial restrictions in development of entrepreneurship and small and medium sized enterprises such as: low level of business knowledge (particularly in the area of management), regulatory and administrative barriers, limited access to available sources of funding in the medium and long term, inadequate access to sources of business and market information and limited availability of specialised business services. When implementing such important tasks, these countries used measures and mechanisms of developed countries, adapting them to their needs and level of economic development.
Macedonia has a long tradition in apparel manufacture, having supplied the former Yugoslavia as well as many major brands and retailers throughout Europe. The industry is an important source of employment for Macedonia with more than 40,000 employed in this sector. It is also a significant exporter with average annual exports exceeding $500 million. For the last decade, the industry has suffered a slow decline in both exports and employment, exacerbated recently as a result of economic recession in key export markets. Macedonia struggles to compete in its main type of production—cut make trim (CMT)—when compared to other production locations (e.g. Asia), except in market segments where quality and lead time are as essential as price. Many companies in the Macedonian apparel industry are looking to move upstream, into full package, private label or own design/brand manufacturing where companies can add more value to customers and/or capture higher margins by taking on new roles in the design and production process.
In order to ensure transparency of the Strategy development process and in order to include views and opinions of other governmental agencies, private institutions and international organizations in an effective manner, in 2003 Agency for Promotion of Entrepreneurship of the Republic of Macedonia (APERM) has been formed to coordinate the whole process of Strategy development and activities for promotion of entrepreneurship and creation of competitiveness of the small business in the RM and other programs adopted by the Government, concerning entrepreneurship and small business.
Strategy for Development of Small and Medium Enterprises represents an expression of full commitment of the Government of Macedonia to strengthening development and growth of small and medium enterprises while its implementation should lead to further improvements in business climate, strengthening of financial support, improved entrepreneurial education and advisory services, additional support for beginners in business, completion of institutional infrastructure for development of SMEs, enhanced innovation, dialogue and partnership between public and private sectors and their promotion. These measures will lead to an increase in the employment rate, more dynamic growth and development, stronger competitiveness of small and medium enterprises and also a reduction in regional disparities.
For developing countries, like the Macedonia, entrepreneurs are considered to have a significant role in promoting national wealth and economic growth in different fields and activities. Terms, such as “be your own boss”, “create jobs rather than find jobs”, innovative products, and other prominent phrases, have been circulating in the online and offline world of information. Business schools and training centers are now also offering entrepreneurial courses from short entrepreneurship seminars to the longer and more in-depth master’s in entrepreneurship.
Fostering a creative environment in R.of Macedonia
Last year, the World Economic Forum’s Global Education Initiative began a task force to advance entrepreneurship education globally, deeming it as one of the critical drivers of sustained social development and economic recovery. Its recent report, “Educating the Next Wave of Entrepreneurs”, it recommended focusing on three areas: youth (with a focus on disadvantaged youth), higher education (focusing on high growth entrepreneurship) and social inclusion (with a focus on marginalized communities). In Europe, the Oslo Agenda for Entrepreneurship Education aims to embed entrepreneurship into the education curriculum from primary school to post graduation studies. With this agenda, the leaders of the EU membership hope to raise awareness, stimulate creativity and innovation, and ultimately engage more people in the creation of new businesses.
At the initiative of the Macedonian Chambers of Commerce, Entrepreneur of the year is traditional manifestation awards for the most successful entrepreneurs of micro and small enterprises in the Republic of Macedonia.
The purpose of this festive event is encouraging entrepreneurial spirit in the country by promoting entrepreneurial success stories. The elections were awarded I and II Award for most successful entrepreneur in two categories, micro enterprises and small enterprises. The main organizers of the Entrepreneur of the Year are Macedonian Chambers of Commerce, Macedonian Enterprise Development Foundation, Economic Chamber of North-West Macedonia and the Center for Entrepreneurship and managers. Co-organizer of the Entrepreneur of the Year 2010: The European Business Association, the National Centre for Development of innovation and entrepreneurial learning and the Agency for Entrepreneurship Support of Macedonia. Institutional sponsor is the Ministry of Economy of Macedonia.
One of the key components mentioned above is encouragement. In fact, if we really analyze each of the leadership tools mentioned, they all boil down to one basic function: support. And since creativity springs from a highly personal reaction to one’s environment, it’s the leader’s task to create an environment that fosters creativity. To do so:
The Government of the Republic of Macedonia will continue with the measures for improving the business climate and increasing the competitiveness of the Macedonian economy. The experiences of many European countries and the recommendations of the World Bank and international financial institutions are incorporated in these measures. The measures will be aimed at reducing bureaucracy, cutting expenses and shortening procedures when obtaining administrative documents by applying for and obtaining permits and licenses electronically, and by further reducing the companies’ expenses. Measures for improving the competitiveness of the Macedonian economy will be implemented by linking the companies with the universities and innovators, through the implementation of research and development projects. The results are: Macedonia is top business reformer, ranking a 6th place in the ranking of 183 economies on ease of starting a business, by further improving its one-stop shop, and lowered tax costs for businesses by requiring that corporate income tax be paid only on distributed profits. Macedonia has made the biggest jump and is now among 30 in the world.
The final part incorporates preliminary key overarching conclusion and recommendation. The observation, statement and recommendations expressed in this report are based on meaning of information in entrepreneurial area. Innovation, motivation and creation go hand-in-hand to Entrepreneurship. Informational issues are central to entrepreneurship theory. Opportunity identification, investigation, and exploitation can be seen as an information collection process, with entrepreneur’s optimal strategy being closely related to this information costs, and his beliefs.5 For instance, some entrepreneurs already in the relevant industry might be able to cheaply trial a new idea, while for others trialing the same idea could be much more expensive.
It is simply assumed that particular information will bland or will arrive at particular times, rather than that the decision-maker has to decide what information to collect. The entrepreneur is assumed to be creator of real options rather than a collector of information. But, how to derive information into creativity. Creativity is the mental and social process used to generate ideas, concepts and associations that lead to the exploitation of new ideas. Or to put it simply: innovation. Through the creative process, employees are tasked with exploring the profitable outcome of an existing or potential endeavor, which typically involves generating and applying alternative options to a company’s products, services and procedures through the use of conscious or unconscious insight. This creative insight is the direct result of the diversity of the team – specifically, individuals who possess different attributes and perspectives.
The main point is how they does organize and management their innovation. Embrace the collective brains of the company on same place. A lot of companies work with inventors, scientists, and suppliers for new products. The others establish several outside networks of innovators it turns to for ideas the company can develop in-house. The third’s companies select top-performing young innovator to participate in council meetings, presenting and discussing their ideas with the top leadership team.
In order to facilitate development of small and medium enterprises and further harmonization with the principles of the EU in this area, R.Macedonia takes some positives steps to encourage the entrepreneurs. Macedonia is top business reformer, ranking a 6th place in the ranking of 183 economies on ease of starting a business, by further improving its one-stop shop, and lowered tax costs for businesses by requiring that corporate income tax be paid only on distributed profits. Macedonia has made the biggest jump and is now among 30 in the world.
Seeing the list of the world’s most respect names in innovation sends two power messages. First, design is a differentiator, and innovation is becoming ever more broadly defined. But every idea is born from information. The role is to manage information flows not on a hierarchical level, but on a reconfigurable level across time. To make this approach work, it will require a new model of innovation that touches on the interaction of knowledge, collaboration and the organization of firms and governments, as well as the activities of clusters and academic institutions.
We’re moving into a networked world where these links are more important, and the information that flows across them may be more important than the ‘random walk. Every society need to supply conditions for free flow of information for better civilization development. In these context the results of intellectual work of peoples need to properties of whole society in future technological development.
1 Associate Prof. Riste Temjanovski, PhD, “Goce Delcev” University – Faculty of Economics – Stip, R.of Macedonia e-mail: firstname.lastname@example.org
4 Casson M., [et all.]: The Ohford handbook of entrepreneurship. Oxford: Ohford University Press, 2006. 106 p.
5 Casson M., [et all.]: The Ohford handbook of entrepreneurship. Oxford: Ohford University Press, 2006. 106 p.