Posts tagged with: entrepreneurship

Acton Institute Honors Richard M. DeVos with Faith and Freedom Award

GRAND RAPIDS, Mich. (Sept. 2, 2010) – Richard M. DeVos will receive Acton Institute’s Faith and Freedom Award in October for his remarkable accomplishments in business, American cultural life and philanthropy.

Rev. Robert A. Sirico, president and co-founder of the Acton Institute, cited DeVos for his “decades-long exemplary leadership in business, his dedication to the promotion of liberty, his courage in maintaining and defending the free and virtuous society, and his conviction that the roots of liberty and the morally-charged life are to be found in the eternal truths of the Judeo-Christian tradition.”

DeVos will receive the award on October 21 at Acton’s 20th Anniversary dinner in Grand Rapids. For more on the event, please visit: www.acton.org/dinner

Richard M. DeVos

Few American stories better encapsulate the value of hard work and free enterprise than that of Richard M. “Rich” DeVos. In the late 1940s, DeVos and friend Jay Van Andel became independent distributors for Nutrilite. The California manufacturer of vitamins used a person-to-person direct-selling approach that DeVos and Van Andel adopted when starting Amway from their Ada, Mich., homes in 1959. Together, they refined the direct-selling method of offering individuals the opportunity to build businesses of their own that became the model for scores of direct-selling companies and marked the start of a major worldwide direct-selling industry. Amway, a subsidiary of Alticor, now operates in more than 80 countries and territories around the world and enables more than 3 million people to own independent businesses.

DeVos and his wife, Helen, generously support hospitals, colleges and universities, arts organizations and Christian causes in their hometown of Grand Rapids, and they support numerous organizations in Central Florida. Among the many institutions they have helped create are DeVos Children’s Hospital, the Cook-DeVos Center for Health Sciences, the DeVos Communications Center at Calvin College, the DeVos Campus of Grand Valley State University, and the DeVos Place convention center. Florida contributions include the DeVos Sport Business Management Program at the University of Central Florida, and the Orlando Magic Youth Foundation. DeVos owns the Orland Magic NBA franchise.

DeVos is also an accomplished author. In his books, DeVos presents his most poignant stories and important principles. Compassionate Capitalism (1994) outlines 16 principles for integrating compassion with free enterprise. A later work inspired by DeVos’ heart transplant, Hope from My Heart (1997), imparts ten lessons for life on subjects including persistence, confidence, optimism, respect, and faith. President Gerald R. Ford hailed the book as “exciting, inspiring, and down-to-earth with God-given advice for everyone.” Ten Powerful Phrases for Positive People (2008) continues DeVos’ mission of sharing wisdom from his remarkable life experience and his philosophy.

DeVos is a graduate of Grand Rapids Christian High School and attended Calvin College in Grand Rapids. He served in the United States Air Force from 1944 to 1946. Rich and Helen DeVos, who have been married more than 60 years, have four children and 16 grandchildren.

The Faith and Freedom Award was established as part of the Acton Institute’s tenth anniversary celebration in 2000. The award recognizes an individual who exemplifies commitment to faith and freedom through outstanding leadership in civic, business, or religious life. For this award, the Institute commissioned a sculpture of Lord Acton, the Institute’s namesake, who held firmly to the two pillars of faith and freedom.

Past recipients include, with date of award: John Marks Templeton (2000); Cardinal Van Thuan (2002); Rocco Buttiglione (2004); Charles W. Colson (2006); Mart Laar (2007); and William F. Buckley (2008).

Link to news release on Acton Press page here.

This August 3 Wall Street Journal article is based on a Legatum Institute survey comparing Indian and Chinese entrepreneurship and raises important issues about the roles of the state and the family in promoting entrepreneurship.

The common elements between Indian and Chinese wealth-creators are their optimistic view of the future, compared to Americans (“Why I’m Not Hiring”) and Europeans (“Everything’s Fine With Greece, Just Ignore Some Facts”) presumably, and their lack of concern about the impact of the global financial crises on their businesses.

But Indians and Chinese differ widely on why they become entrepreneurs in the first place, where they look for capital, and whether they look to the state to support and encourage them. As the article’s subtitle puts it, “Indians believe they succeed despite the state. The Chinese say they succeed because of it.”

I draw two conclusions from the study: Those who favor freedom, creativity and self-employment seek limited government, while those who seek greater wealth for its own sake are seemingly indifferent about the size and scope of government. And greater trust in the family seems to go along with less trust of the state.

It follows that friends of freedom and the family ought to favor the Indian to the Chinese version of entrepreneurship.

This week I’m attending Mises University, one of the largest and most rigorous summer courses in the Austrian School of economics (or “reality economics,” as my friend Michael McKay likes to call it).

Among the various lectures, there was one in particular that struck me as particularly relevant to the work of the Acton Institute. Peter Klein, professor of economics at the University of Missouri, delivered a presentation on entrepreneurship, a large part of the focus of his academic work.

Dr. Klein approaches the subject of entrepreneurship from the more realistic Austrian perspective. Rather than viewing people as examples of the homo economicus, as almost robotic, quantitatively-driven machines, Dr. Klein views human beings as unique and free actors. When we act, we do so under conditions of time and uncertainty. Though every human action presupposes cause and effect, there is no guarantee that our instincts are correct or that our efforts will pay off. In this way, every one of us, whenever we choose some action, is a kind of entrepreneur. In the face of uncertainty, we have an intended – but not guaranteed – result of action.

Combine that with the Austrians’ very realist take on production: production is not some kind of abstract graphical function, but the concrete act of taking a natural resource (e.g. some wood, a stone,  some metal ore), and using one’s labor – almost investing a part of oneself – to physically transform it.

In a very broad sense, we all participate in this two-sided entrepreneurial action: actively and consciously transforming the world around us, and doing so in the face of uncertainty and imperfect knowledge.

In a much more specific sense, this activity applies to the people we would usually call entrepreneurs (Ludwig von Mises called them, “entrepreneur-promoters”). These are the businessmen we all know: the small-business owner, the investment banker, the risk-taker. These are individuals whose entrepreneurial spirit in a special way exceeds those of everyone around them. They are the ones willing to take on greater risk, confront greater uncertainty, and make more difficult decisions.

In any case, I find that this realistic description of the role of entrepreneurship fits extremely well with the theology in The Call of the Entrepreneur. In the film, we learn that the entrepreneur is a “co-creator”: He  participates in the act of transforming raw materials and natural resources into products for consumers; but the entrepreneur does so by investing time and energy into the production process. And creativity and imagination play an indispensable role in this process of co-creation.

I remember a kind of feeling of awe when this thought dawned on me during Dr. Klein’s lecture. Here we find yet another example of how the market process, when understood and employed correctly, is not simply a morally indifferent result of choice, but a morally positive thing. Society and its consumers are made better off, and both the laborer and the entrepreneur are reminded of their human dignity as they participate in God’s work of fashioning the world.

This week’s Acton Commentary from Baylor University economics professor John Pisciotta:

Americans have less confidence and trust in government today than at any time since the 1950s. This is the conclusion of the Pew Research Center survey released in mid-April. Just 22 percent expressed trust in government to deliver effective policies almost always or most of the time. With the robust expansion of the economic role of the federal government under George W. Bush and Barack Obama, the Pew poll is evidence of an opportunity for advocates of freer markets.

That Americans distrust their government is not unadulterated good news. An effective rule of law, one aspect of which is a government that can be trusted to act justly and equitably, is a necessary precondition of the free and virtuous society. Still, in the context of the extraordinary extension of government control in areas such as finance and health care, news of political skepticism offers an opportunity for those who recognize that both the moral and economic wellbeing of our nation depends more on the health of individuals, families, and other institutions than on the engineering of bureaucrats. The apostle Peter advised Christians to “always be ready to give an answer” to those who ask for “a reason of the hope that is in you” (I Pt 3:15). This advice is relevant for defenders of private sector reliance. We must not merely repeat slogans regarding private enterprise. We must express the reasons why we defend decentralized, voluntary organization of our economy over centralized control. Here are my top 10 reasons, in reverse order, for the hope that is within me.

10. Difference in competition. Competition is at work in both government and private markets, but the competition in markets is more civil and evenhanded. Business competition is similar to golf. Each competitor works to improve his own performance. Political competition—between parties, between candidates for office, and among legislators—is more like basketball. While a competitor works to elevate his own game, participants also attempt to undercut, debilitate, and intimidate opponents. It is common to see political advertising that is hostile, even to the extent of lying about the opponent. Combative ads are the exception in business appeals to consumers.

9. Enterprise expansion. In private markets, a business venture has to be profitable to expand, whereas expansion is “in the DNA” of government ventures and programs. Program beneficiaries and bureaucratic suppliers work in collaboration with elected politicians to expand particular government programs. The basic idea is this: If a government program is good, an expanded program would be even better.

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As we’ve noted before, the Planet Money team is on the ground in Haiti getting a hands-on look at the economic situation after the disaster. Today they broadcast a moving story of an entrepreneur who lost all her capital in the earthquake. Now she totes a 30+ lbs. bin of chicken necks to make a few dollars a day.

The story is a testament to the power of micro-finance, the complications of an international import operation, and the bookkeeping practices of a purveyor of chicken necks. Check it out and visit the Planet Money blog tomorrow to get the follow-up on how Yvrose fared with her lender.

Blog author: jballor
Tuesday, February 16, 2010
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NPR’s Morning Edition had a touching piece the other day that illustrated how great a blessing business can be, and just how terrible things can be when there’s no freedom to innovate, produce, and create wealth. Chana Joffe-Walt and Adam Davidson of Planet Money put together the narrative of George Sassine of Haiti and Fernando Capellan of the Dominican Republic, “Island Of Hispaniola Has Two Varied Economies.”

Both men shared the same dream: to open up a T-shirt factory. Sassine has had to struggle through all kinds of adversity in the attempt to realize his dream. And just as it was about to take off for good, to really get going, the earthquake hit. Says Sassine, “I’ve had a coup d’etats. I’ve had hurricanes. Now, I have an earthquake.” The “simple cut-and-sew factory” that Sassine had managed to put together lies in ruins.

Cappellan, on the contrary, started with a simple cut-and-sew operation, but in the interim has enjoyed great success; “His business now is, as they say, several steps up the value chain from the dream he started with.”

Sassine puts his finger on what differentiates him from Cappellan. It’s not ability, or ingenuity, or diligence. What has really prevented Sassine from doing for Haiti what Cappellan has done for the Dominican Republic?

Sassine asserts assuredly of Cappellan, “fortunately, for him, his country, his government was behind him. Me, I’ve been having governments against me all my life.” Political instability, corruption, and tyranny are what kill dreams like Sassine’s and Cappellan’s.

Blog author: jballor
Monday, February 1, 2010
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Business Weekly, a production of BBC World Service, had an informative feature on Toby Sheta, a Zimbabwean mobile phone trader, who provided insights into the courage and tenacity required of entrepreneurs under Mugabe’s brutal dictatorship (you can download the original Business Daily story in MP3 format here).

During the worst times of the Mugabe regime, Sheta would illegally buy and sell fuel coupons, a profitable enterprise because of the chaos of governmental interference in international trade and domestic fuel markets. Sheta says in the context of survival the “black market actually became the formal market,” the place where products were available. “For us the black market was the real market.”

Sheta says that what he gained as an entrepreneur in the emergency economy translate into more normalized economic conditions: “The skills that were learned and some of the principles that we’re using apply in any situation.” Sheta says, “Zimbabweans overall have gone through a school, a very informal school that was first upon us, in some ways in a positive way for us, to actually think and work for ourselves, work with our hands and see where we can see opportunity.”

Risk is a constant feature of enterprise, and Sheta testifies to the survival of the human spirit of innovation: “What I’ve learned is, even as I think of Haiti right now, as long as you’re human, and you’ve got your two feet, your two hands and your brain is still functioning, you’ll survive.”

“As you go into the problems you also go in terms of our creativity and learn how to survive,” he says.

As put by dairy farmer Brad Morgan, featured in Acton’s The Call of the Entrepreneur, “You put your butt in the corner, you’d be surprised what you can achieve.”

In terms of Zimbabwe’s future, Sheta points to stabilization in 2010 and beyond, in part because of the dollarization of the economy, and he concludes that Zimbabweans have “graduated to another level” from the emergency school of economics under Mugabe, looking forward to “see opportunities where in the past we wouldn’t have seen those opportunities.”

Blog author: rsirico
Monday, January 18, 2010
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Published today on National Review Online:

When I first heard the news from Haiti and watched the horrible stories on television, I had the same impulse I imagine millions around the world experienced: I found myself thinking of catching the next plane to Port-au-Prince to help in whatever way I could.

What was the basis of this impulse? It is our moral intuition, sometimes called the principle of solidarity. This is the recognition of ourselves in the other. We feel pain when others feel pain and joy when they experience joy; we slow down on the freeway when we pass an accident not merely for some macabre or prurient interest, but because we recognize that “there but for the grace of God go I.” We help others who are suffering because we would like to be helped in a similar situation.

And yet I had to ask myself the practical question: What would I actually do when I got off the plane in Haiti? I do not know how to set broken bones. I can’t fix mudslides. I cannot operate on limbs and eyes. Only after all these things were done would I be able to fit into the division of labor to authentically serve people.

I am deeply grateful for those who can do these things, and I am inspired that they are there. In fact, aid workers have been emphatic that the last thing Haiti needs right now is a massive influx of people bringing only their good intentions. Such a run on the country right now would increase the need for food, shelter, transportation, and more.

The impulse to help, to do anything — largely and understandably based on our emotions — is exactly what confuses our thinking about charity and economics. It is the confusion between sentiment and practicality, between emotion and reason, between piety and technique.

On the other hand, it would be a cold and spiritually dead person who sat back without any sense of emotion over this Haitian calamity. If we merely said, “We should just forget this place. It is a poor country, the infrastructure is not in place, they have been unable to accumulate capital . . .” — if we said only these things, we would be callous. And yet, we know that what has compounded the suffering in Haiti is not only the earthquake as such but the poverty that hindered the necessary preparation and at all levels of society.

The practical and the emotional are at war right now.

More generally, the fundamental problem in Haiti is not bad weather or natural disasters. It is a problem of economics. Haiti has suffered from various forms of dictatorship for many decades, which has eviscerated from Haitian culture a general sense of entrepreneurship and enterprise.

This is not to say that Haitians aren’t entrepreneurial. One need only observe Haitian immigrants selling goods on the streets of New York to be convinced of their entrepreneurial spirit. Rather, what has made Haiti as a culture resistant to entrepreneurship has been the inability of Haitians themselves to gain control their own lives by ridding themselves of government policies that have made the country dependent on foreign aid and powerful dictators.

We like to imagine that we could send our favorite things — such as cars, computers, and the best medical equipment — to help. But when there is no electricity and few sources for fuel, and when the roads can’t be used for heavy transportation, all our gizmos and products and conveniences become useless.

Nor is it the case that piles of paper money are going to be a magic cure-all. When there is nothing to buy, and when replacement parts are not available, and the retail- and wholesale-trading sectors cannot support an advanced economy, money alone cannot do much good.

Haiti needs practical help and generous charity right now — implemented intelligently, and with a keen eye for existing conditions. We need to support aid agencies that provide water and medicine. In the long run, we have to look at what Haiti needs to prevent such disasters and minimize their impact. What the country needs is economic development and a culture that can support such development.

We are a very long way from that, and this catastrophe has set Haiti back even further. However, this is an opportunity to build a society that is prosperous, industrious, virtuous, and free. The unromantic truth is that charity does not really ameliorate poverty. Rather, it provides a necessary and temporary fix for an unusual problem. What Haiti needs are the institutions that provide protection and cushioning in cases of emergency. Most of all, it needs to develop economically.

No matter how many of us leave tonight for Haiti, that process will take a very long time, and it can only be carried out by the Haitians themselves.

Buzz Aldrin walks on moonToday marks the 40th Anniversary of the one of the greatest feats of human exploration, courage and innovation: man’s setting foot on the surface of the moon.

Responding heroically to the challenges of the “Space Race” (while its arch-nemesis, the Soviet Union, was clearly in the lead), the United States stood proud to represent the free and enterprising West. To put the challenges of victory into perspective, America was running adrift amid pretty rough waters at the time: two great wars in Asia had taken their tolls on the government’s treasury; cities and communities were torn by civil riots; national inflation was escalating at a record pace; and an irreversible paradigm shift was occurring in its traditional moral values. Sound painstakingly familiar?

Yet, America loved (and still loves) challenges and risks. It excels (and still wants to excel) under pressure. It was the land forged by underdogs, the under-rated, the under-financed, while driven by an ever-zealous entrepreneurial optimism and creativity when facing life’s “insuperable” obstacles.

And all these great values were apparently at stake, as the United States stood boldly united to beat the Russians in a manned-mission to the moon. Americans knew full well that the tides of history would be turned against them had the Hammer and Sickle been raised before the Stars and Stripes on that powdery lunar desert. The American “brand” of innovation and entrepreneurship its citizens had worked so hard to achieve would have received a disgraceful black-eye. (more…)

anatomyentreperneur-1 Is moral enhancement of the entrepreneur possible? That’s the question Michael Severance, operations manager for Istituto Acton (the Acton Institute’s Rome office) recently posed to Dr. Adriana Gini, a neuroradiologist at San Camillo-Forlanini Medical Centre in Rome and an expert bioethicist at the Pontifical Athenaeum Regina Apostolorum. Dr. Gini recently led Istituto Acton’s monthly Campus Martius seminar “Moral Enhancement: Back to the Future” and offers some further insight on her topic. An audio recording of her seminar is available on the Istituto Acton home page.

Michael Severance: Dr. Gini, thank you for taking time to explain your views on the fascinating subject of moral enhancement. Most of us have heard of various forms of “physical” enhancement, as with genetic splicing for disease prevention, pre-selection of human embryos to produce “savior siblings” and mixing chemical cocktails to improve the physical endurance of our organs…In what way are the two types of enhancement – physical and moral – related, if at all? Or is this just a play on words?

Adriana Gini: The association between the word “moral” to the type of life we live, the decisions we make, our efforts and struggles to improve society and ourselves is perfectly natural. In fact, morality depends on our acts and our acts are the expression of what we are as human beings. Our behavior, as moral agents, is quite complex and, no doubt, involves our physicality. Nonetheless, a pure physical/neuronal explanation of morality -with no reference to a more comprehensive knowledge of the human person- is rather hazardous. As such, the term “moral enhancement” does not have an immediate, direct connection to some forms of genetic, pharmacological or biotechnological enhancement, unlike the ones targeted at cognitive enhancement.

MS: From an Acton perspective, it is interesting to know if there is some type of “competition” or “economic” factor driving neurological science in the direction of improving the human moral condition. What is at the bottom of all this? For example, is the real inspiration to improve human action found in creating a competitive edge in intelligence within the marketplace? Some might find it hard to believe that secular science is really interested in fostering moral excellence for its own sake in its laboratories. Much less so in its lab rats and guinea pigs!

AG: According to some authors, as with Julian Savulescu, director of the Oxford Centre for Practical Ethics and head of the Oxford Centre for Neuroethics, contemporary research aimed at enhancing human cognition will result in an economic improvement (cf. Chap. 1.4 of Enhancing Human Capacities edited by Dr. Savulescu). In other words, better people make for better jobs, and in the end, better, more productive societies – in an economic sense. However, Savulescu’s claim is that such enhancement might also lead to a greater world of evil action. For example, we can use drugs or other biotechnological means to improve our mental abilities, but sometimes also to our detriment: smarter terrorists mean fiercer terrorist attacks with the mental enhancement to fabricate more powerful, more intelligent weapons of mass destruction. Therefore, in Savulescu’s opinion, any means to morally enhance the human species in terms of cognitive enhancement should only progress alongside research on moral enhancement. No one really knows, however, how to improve the human species morally by biotechnological means alone, since morality is not purely “biological”…, although there are certainly biological correlations to human moral behavior. (more…)