Posts tagged with: entrepreneurship

Acton University has been full of thought provoking lectures and stimulating discussion. It is easy to see why the attendees wish the conference was much longer. There are many interesting lectures, one just wishes he or she could attend all of them.

Yesterday Dr. John Bolt, of Calvin Theological Seminary, taught a course titled “Centralization and Civil Society.” Bolt’s course paid special attention to Alexis de Tocqueville and his contributions to defining a civil society. As one can imagine, by bringing Tocqueville into his lecture, Bolt discussed the role of religion and the sense of community in the United States.

Bolt explained that America is self-reliant; however, this self-reliance didn’t come through reflection. The American people didn’t wake up one day and decide they wanted to be more self-reliant. Instead, Bolt explains that America’s self-reliance is habitual. Furthermore, Bolt discussed how Tocqueville demonstrated that America can afford to be self-reliant and individualistic because it was founded on Christian principles and that liberty exists in the United States because of religion and Christian principles.

The dinner lecture was a real treat last night. The Acton Institute has always promoted entrepreneurship and what it means to intertwine faith with entrepreneurship. A panel of successful entrepreneurs shared their insight on how business can promote the common good. Betsy DeVos, chairman of the American Federation for Children and Alliance for School Choice and chairman of the Windquest group, articulated how she finds joy in enterprises that make a difference in other people’s lives. She believes that enterprise is a vehicle we use and invest our God given talents in.

According to Mark Murray, president of Meijer, Inc., entrepreneurs need to be servant leaders. In order to succeed they must remain rooted in integrity. Murray explained how the values found in Christianity, such as humility, are not only applicable but needed in business. Furthermore, we are all created in the mage and likeness of God. We are called to use our God given gifts and express our creativity. Murray believes we put our talents and creativity to use through work, and the development of the human capacity is promoted through business.

Stewardship was highlighted by John Kennedy, president and CEO of Autocam. We are all temporary custodians of everything and have to do the best with the assets we are given. Furthermore, Kennedy said that we must remember people and employees are all assets and leaders must discover the gifts of their employees and how those gifts can most help the enterprise. Not only are employees assets, but so is capital. Entrepreneurs are called to be stewards of both their employees and capital and use all they are given to the fullest extent, and by doing this entrepreneurs demonstrate their appreciation for all God has given and blessed them with.

While there are flawed business leaders who are not examples of how businesses contribute to the common good, Acton University attendees witnessed what it really means to be called to entrepreneurship. When the calling of entrepreneurship is accepted and founded in Christian principles, the entrepreneur is a tool to create and promote the common good.

Detroit has has been plagued by the economic downturn more than most cities, and has struggled to recover. However, sometimes gloomy economic conditions breed innovation. That is the focus of Jordan Ballor’s “Let Detroit’s farms flourish” which appeared in the Detroit News.

Ballor explains that residents are putting vacant lots to use by urban farming:

These areas of growth, in the form of cooperatives, community programs and individual plots, represent a significant avenue for the revitalization of the city. The benefits of urban farming are manifold. Otherwise unproductive vacant lots, which have been estimated to number close to 100,000, are put to an economically and socially positive use. Urban farmers learn skills and discipline necessary to have long-term economic success.

For some, urban farming is a necessity, for others, such as the youth, it may be a new opportunity to keep them off the streets; however for everyone partaking, it is form of creativity and responsibility rooted in the Bible:

In these kinds of efforts we see the spark of human creativity and responsibility shine through in the face of adversity. This creativity reflects in a human way the creativity of the divine. The biblical account of creation includes the blessing to humankind, “Be fruitful and increase in number; fill the Earth and subdue it.” (Genesis 1:28). This blessing has been understood to refer to human cultural work in all kinds of areas, including the cultivation of the land and the raising of crops. We find God’s specific injunction to Adam to reflect this aspect of cultivation quite clearly: “The Lord God took the man and put him in the Garden of Eden to work it and take care of it.” (Genesis 2:16). And as the Bible begins with human beings caring for a garden, it ends with restored humanity living in a city, the New Jerusalem (Revelations 21).

Unfortunately some Detroit residents are discovering that everyone isn’t encouraging their innovation and desire to farm. City regulations are preventing some from succeeding:

There are perils, of course, and perhaps there are none greater than the political culture of regulation, entitlement and corruption that has marred the city for decades. The city government must not crush this nascent urban gardening movement through superfluous regulation and the instinctive reflex to government control.

This has already happened in the case of Neighbors Building Brightmoor, which maintains gardens on city-owned lots. Reit Schumack, who heads up the group, says that new city regulations will, among other things, prevent him from organizing a youth group as he has done in the past to grow food and sell it at a farmers market. “It’s a beautiful self-sustaining program where 15 kids are busy the entire growing season, make money, learn all kinds of skills, and really, I can’t do this. This is forbidden, what I’m doing,” Schumack recently told Michigan Public Radio.

Let’s hope that Detroit sends a message of hope and encouragement to its residents. In these struggling times, innovation and the entrepreneurial spirit should be encouraged. Detroit’s past has been plagued by a corrupt overregulated political culture. Instead of stifling growth, Detroit should seize upon this opportunity to demonstrate that it is going to take a new path towards creating a political environment that allows it to flourish once again.

Click here the read the full article.

One might think that Muslim women, in traditionally Muslim countries, are under severe constrictions when it comes to becoming entrepreneurs.  After all, in Saudi Arabia, women cannot drive, and in places like Iran, women are forced to veil themselves under the law.  Do such restrictions create undue burdens for women wanting to start and maintain businesses in the Muslim world?

In a study published in International Management Review (Vol. 6 No. 1 2010), John C. McIntosh and Samia Islam of the College of Business and Economics at Boise State University set out to explore the question:  “How is female entrepreneurship shaped by Islamic traditions and Shari’a  in a conservative Muslim context?”  (Shari’a law is traditional Islamic law.) The researchers looked at concepts like wearing the hijab (a scarf Muslim women wear to cover their hair), and whether or not being a women limited one’s social and business contacts due to gender restraints in Islamic society, such as adult women needing to rely on male family members to make contact with male non-family members.

The results?  Muslim women are not suffering undue constraints when it comes to entrepreneurship in Islamic countries.  Women wearing the hijab did enjoy better access to business networks, and those women with supportive families enjoyed greater social contacts that aided in building up their businesses.  However, when it comes to securing funding from banks, wearing a hijab was statistically insignificant from not wearing a hijab for the loan-seeker.

This is not startling news.  If one were to look at the business world anywhere, one could say that appropriate cultural dress, supportive families and social contacts are three keys to starting and maintaining a new business.

What does it take to become an entrepreneur?  There are many sound answers to this question, but none of them should have anything to do with gender, religion or geography.

Writing in the Sacramento Bee, Margaret A. Bengs cites Rev. Robert A. Sirico’s Heritage Foundation essay “The Moral Basis for Economic Liberty” in her column on faith communities and government budget battles.

As a priest, Sirico has met many entrepreneurs “who are disenfranchised and alienated from their churches,” with often little understanding by church leaders of the “vocation called entrepreneurship, of what it requires in the way of personal sacrifice, and of what it contributes to society.”

This lack of understanding, he believes, is due to the collection basket economic model which “tends to foster a view of the economic world as a pie that needs to be divided.” The entrepreneur, instead, engages in producing wealth, not redistributing it.

“Entrepreneurs create jobs, reduce human suffering, discover and apply new cures, bring food to those without, and help dreams become realities,” he says. In contrast, “the welfare state is too often thought of in morally favorable terms, but its social consequences, however well-intended, can be largely damaging.”

Read “Putting faith in economics to help the poor” in the Sacramento Bee.

Also see Acton’s Principles for Budget Reform and download the free “What Would Jesus Cut … from the Constitution” poster.

The Dressmaker of Khair KhanaPoverty is inevitable in a war zone, right? One’s movements are restricted, buildings and businesses are damaged, people flee. Add to that random acts of violence brought by the Taliban and the already damaged economy of Afghanistan in the mid-1990s and poverty seems unavoidable.

Never underestimate the entrepreneurial spirit. In The Dressmaker of Khair Khana: Five Sisters, One Remarkable Family, and the Woman Who Risked Everything to Keep Them Safe, journalist and Harvard Business School student Gayle Tzemach Lemmon sets off in search women who are able to start and sustain businesses in the most harrowing of times: war.

In Kabul, Lemmon meets Kamila Sidiqi, one of eleven siblings who must find a way to support her family during the years of Taliban rule. With her father having to flee the city and her mother in poor health, it falls on her shoulders to make sure she and her siblings eat and stay safe. She decides to learn sewing from her eldest sister and literally turns the family home into a design-studio, production line and warehouse. She seeks out clients, develops new lines of clothing and makes good on delivery dates. In other words, she creates a successful business.

But Kamila Sidiqi is not satisfied with merely keeping her own family safe and sound. As a Muslim, she believes it is her duty to help those less fortunate. She begins to train and hire neighborhood women to sew and do the detailed embroidery and beading work that her business requires. Her hope is to not only grow her own business, but teach skills to women so that they, too, can start their own businesses.

Eventually, Sidiqi is approached by the Women’s Community Forum, an NGO that teaches and trains women in business. Sidiqi is asked to become a leader, to travel and give workshops to other Afghani women trying to start businesses. If trying to keep a business going in war-torn Kabul is not frightening enough, traveling with the Women’s Community Forum is absolutely terrifying. In fact, one of Sidiqi’s sisters tries desperately to take Kamila out of taking this role, fearing for her life (with good reason). Sidiqi plunges ahead, believing again it is her duty to help as many people as she can escape poverty.

By the 2005, with the Taliban out of power, Sidiqi has started another business, “Kaweyan” (after a prosperous Iranian dynasty), that seeks to train aspiring business owners in skills such as writing business plans, budgeting, and utilizing interns in Afghanistan and several other countries. Her goal at that time was to create mobile teams that were able to visit and teach those in remote areas.

The Dressmaker of Khair Khana is a captivating war-time adventure story, but it is also a lesson in tenacity and courage. What will it take to overcome poverty? One person, with a great business idea, and the willingness to do whatever it takes to make that idea a reality.

Blog author: lglinzak
posted by on Thursday, April 21, 2011

Easter is fast approaching, and in light of this revered day, we take a look at Easter messages the Acton Institute has published in the past.

A day celebrated by all Christians, Easter can mean many different things for people. The article, “An Easter Message for Business” explores what it means for entrepreneurs and business men and women. In the article we find that business is a calling and business men and women are called to utilize their Christian principles by applying them to in their every day lives on the job:

As the ability to work and function in the market system is a gift from God, it must be carried out according to moral precepts. Thus, a moral code must be present and alive in everyday business life. Every transaction, trade, or exchange must have at its core values based on natural law. In the Pontifical Council for Justice and Peace’s Compendium of the Social Doctrine of the Church, the description of Pope Pius XII’s teaching on social doctrine emphasize this point: “He insisted on the notion of natural law as the soul of the system to be established on both the national and the international levels”(53–54). How can the businessman know whether his actions are based on natural law? “Society, its structures and development must be oriented towards the progress of the human person” (56).

[…]

One might object that business cannot always take into consideration every person. How can a business function and make a profit while trying to maintain the dignity of all? In Centesimus Annus, John Paul II provided a response: “A business’s objective must be met in economic terms and according to economic criteria, but the authentic values that bring about the concrete development of the person and society must not be neglected.”

The business cannot be responsible for every person; rather its responsibility is towards its employees and contacts. Again, John Paul II admits, “The social doctrine of the Church recognizes the proper role of profit as the first indicator that a business is functioning well: when a firm makes a profit, this means that productive factors have been properly employed.” Prosperity and human flourishing need not be opposed, so long as corporate productivity and human dignity are brought into concord. The Church reminds business, “The legitimate pursuit of profit should be in harmony with the irrenounceable protection of the dignity of the people who work at different levels in the same company” (Compendium, n. 340).

On Easter we are reminded the powerful meaning of Christ conquering death. Ray Nothstine explains this influential message in “Easter: The Resurrection & the Life” which can resonate with all Christians:

Easter Sunday celebrates the power of Christ over death, and how that power is the joy and the fulfillment of the life of the believer. Our suffering, imperfections, tears, and grief are wiped away by the promises and power of Christ. It brings meaning and assurances to everything we know about the Christian faith. “The Gospels do not explain the resurrection. The resurrection alone is what can explain the Gospels,” says Thomas C. Oden.

The witness of faith for those who gather to celebrate Easter will testify mightily against a world and lifestyle that suffers to find meaning, redemption, joy, immortality, and love outside of God. All too often we see the consequences of the kind of lifestyles that are absent from faith, and the haunting despair that follows. But the Christian lives with the assurance and promise of eternal life because of the intercession and power of Christ over sin and death.

Another important message found in Easter is the message of hope. Hope is found in the resurrection of Jesus, and as Ray Nothstine articulates in, “What the Resurrection Means to Me” just when we find ourselves full of despair, we are reminded to look to the resurrection of Christ and are reminded that God is always with us:

Often in the burdens that afflict our inner most being we can only find meaning in the resurrection. The trials, despair, and pain of this life crushes us too much. But when we spend our time dwelling on the risen Lord, our despair turns to hope. We know that he will not abandon us or forsake those who love and worship him, especially beyond the grave. The resurrection is a cause for endless celebration. It is the seal that we will fully dwell in the everlasting with the Triune God who created us for relationship with him for his glory.

April 1 was no Fool’s Day in Verona, Italy.

Istituto Acton held a private viewing and debate on The Call of the Entrepreneur in the romantic city of Verona, better known for its romantic association with Romeo and Juliet than with one of Italy’s most enterprising commercial regions.

Arranged and sponsored by the investors group – Noi Soci – of Cattolica Assicurazione, a private insurance company founded 115 years at the turn of the 19th century, the documentary was shown on April 1 to a private audience of 220 of the company’s stakeholders, colleagues and business partners – who actually showed up early – a rarity of time management and courtesy not often experienced in the southern city of Rome, where Acton’s Italian office is located.

The company’s original mission, based on protecting the private landholdings of farmers against natural disaster, was the brainchild of 34 entrepreneurs who boasted more than 14 Catholic priests in its original investment group.

When I heard this story, I had to ask the president of Cattolica Immobilare (the real estate investment firm owned entirely by Cattolica Assicurazioni), Enrico Racasi, to repeat what he had just told us.

“Few people realize this, but among the insurance company’s original founders there were actually 14 priests who were very much concerned about the survival and welfare of local enterprise”, Racasi said.

“We still commence our executive meetings with prayer and often meet for Mass beforehand … We need priests to become entrepreneurs again. Wouldn’t that be wonderful if we were all working privately together for the common good? But times have really changed!”

Debate and commentary on the film included inspiring remarks from Verona’s mayor, Flavio Tosi, a “no excuses” conservative politician from the north. Tosi said that politicians should be much less concerned about “legislating a good society” in order to “let private individuals lead the way” to work hard and improve society themselves.

“Everyone should work with a spirit of calling and moral purpose … All we (politicians) can do is encourage free enterprise among our citizenry through adequate public policies and fiscal incentives.”

One of the entrepreneurs present on the speaker panel, Giuseppe Pasini, president of Federation of the Italian Steel Companies, Federacciai, said Jimmy Lai’s story as portrayed by the documentary was most inspiring.

Istituto Acton Director Kishore Jayabalan conducts interview for Italian television.


Pasini said today’s entrepreneurs need to dig down to find inspiration for their enterprise within their deep moral values and convictions. (more…)

Blog author: jballor
posted by on Monday, March 21, 2011

A piece in Fast Company, “Why True Grit Matters in the Face of Adversity,” focuses on the virtue of “grit” in various fields, including public lobbying and business. Dan and Chip Heath distinguish “true grit” from “hard work,” as they write:

Grit is not synonymous with hard work. It involves a certain single-mindedness. An ungritty prison inmate will formulate a new plan of escape every month, but a gritty prison inmate will tunnel his way out one spoonful of concrete at a time.

True grit: "You put your butt in the corner, you'd be surprised what you can achieve."

They continue, contending, “Grit is often undervalued in business, because businesspeople like breakthroughs, which are good ideas that you’ll have next week.” But in the case of innovation and entrepreneurship, “grit” is essential, and juxtaposing perseverance with breakthrough is a false dichotomy.

It recalls to my mind the story of Brad Morgan (as documented in The Call of the Entrepreneur). True grit in the face of adversity means not giving up, even when it seems as if there is no way to survive.

As Brad Morgan put it, “Our county extension agent, first year we was in business, he come here and look me right square in the eye and says, ‘You’re broke. Get out.’ I looked right back at him and I says, ‘What have we got to do to get this right?’”

That’s true grit. Or as Morgan also says, “You put your butt in the corner, you’d be surprised what you can achieve.”

See more about what Brad Morgan has achieved here.

The original Article Who’s Responding: “The Call of the Entrepreneur” in La Spezia was written by Francesco Bellotti for the Italian newspaper “Avvenire” (translation and editorial contributions from Michael Severance):

Kishore Jayabalan responds to questions in the industrial city of La Spezia

“The Christian entrepreneur is not the person who goes about wealth creation all week and then leaves a nice offering at church on Sunday. Rather, he is exemplified by the type of person who gives the best of himself to create wealth and opportunity for himself and others,” said Mr. Kishore Jayabalan, Director of the Italian office of the American think tank, Acton Institute, while introducing the premier showing of the Acton documentary “The Call of the Entrepreneur” at the Teleliguria Sud TV studios in La Spezia, Italy last February 19.

The documentary’s showing and debate on television was organized in collaboration with the Movement of Christian Workers of La Spezia before a private audience of entrepreneurs, business executives, and free-lance professionals invited from the northern Italian region of Liguria.

“No doubt there are greedy entrepreneurs, just like any other group of greedy professionals and tradesmen,” Mr. Jayabalan said. “But they are certainly not defined by this (vice).”

For the good entrepreneur, “risk-taking is born out of his trust and hope in the future. He perceives things that others do not easily see and works to build something where there is nothing.”

Continuing his reflection on the entrepreneurial vocation, Jayabalan stressed that economics is not like a game of poker.

“Economics is not zero sum game in which the rich get richer at the expense of the poor. The free market is a means by which all of man’s material needs may be satisfied.” The entrepreneur must “study his fellow men in order to better satisfying their needs. In this way, his creative work contributes to the common good. What’s more, he creates jobs while risking his very own well-being.”

To be sure, it is not this way for all entrepreneurs, but “we must know how to recognize and value such a vocation that is absolutely rich in meaning, especially in the social sense,” said Jayabalan.

When asked, how can we help support the growth of entrepreneurship, Jayabalan concluded by saying “we cannot “program or plan” for good entrepreneurs to come about. Indeed, they are persons who respond to a certain calling. But, at any rate, there are some fundamental conditions which our state institutions must guarantee to facilitate entrepreneurship, namely: respect for private property, rule of law, minimal bureaucracy, and fair taxation.”

One of the panelists at the debate, Massimo Ansaldo, an attorney and executive member of Italian Catholic business society “Compangnia delle Opere di Liguria”, said: “When thinking about it, the principle of subsidiarity must be followed, in order for us to pass on social responsibility from the state directly into the hands of the local private intermediaries, such as the family, businessmen, professional associations and cooperatives.

Gianluca Ceccarelli, an infopreneur on the discussion panel, said, “With my work, I am able to support my family. I am not interested in earning huge lumps of money, but rather reinvesting it to continually improve my state…The internet affords endless information and opportunity for growth. It is an incredible phenomenon, though we need to know how to take advantage of what it offers, otherwise we can easily lose our wealth.”

Gian Piero Marafante, an entrepreneur in attendance, gave his reactions to the documentary: “What I like most is teamwork in building up business. Often people ask me why I am so willing to share my business secrets with my colleagues. My answer is that, first off, no one can take my experience from me. But, above all, when teaching others my skills I contribute to the growth of the team and gain tremendous satisfaction from this.”

Finally, Rev. Pietro Damian of the nearby Diocese of Massa Carrara and immigrant from Bucharest, gave his personal testimony from the speaker panel: “When I arrived in Italy, I came to understand the ‘secret’ of economic development in Western countries.”

“Unlike in communist countries where the state owned everything, here people could freely develop (wealth) according to their own talent and ingenuity,” he said.

“My participations in Acton’s educational initiatives (Acton University) in the United States has enriched my knowledge and inspired my pastoral outreach to promote the values that have made our civilization great. Without faith, we risk stifling progress, even in economic terms! Instead of ideologically demonizing business, let’s inspire a rebirth of a culture that unites free enterprise with ethical responsibility, as we find its very foundation in our Christian faith.”

The Acton Institute’s Italian premier of “The Call of the Entrepreneur” in the city of La Spezia was the first of many more showings foreseen in the coming months to stimulate debate in Italy on the virtues of entrepreneurship. Soon the American think tank will travel to Verona for another showing of its documentary before members of the Union of Christian Entrepreneurs and Managers from the Italian region of Veneto.

Electronic engineer Dr. Francesco Bellotti is Professor of Industrial Research and Development for the University of Genoa.

Blog author: abradley
posted by on Wednesday, February 9, 2011

My latest for Acton Commentary. I’m also adding a couple of videos from Hotep and the Institute for Justice.

Let the Hustlers Hustle

By Anthony Bradley

If necessity is the mother of invention, then there is nothing worse than quenching the entrepreneurial spirit of people seeking to improve their situation by imposing arbitrary third-party constraints. America’s unemployment problems linger because hustlers cannot hustle.

For many, “hustling” connotes business activity that is shady, or even illegal. But in the black community it is common to use the term to describe the entrepreneurial spirit that drives people to take risks to meet one’s needs and to provide legitimate services through creative enterprise in the marketplace. The latter view is the one taken by indie Hip-Hop mogul Hotep, who has created Hustler University as an effort to redeem hustling as a way to create space for economic empowerment. Clients include the NAACP, the Urban League, Clemson University, the National Education Association, Illinois Public Schools, and Morehouse College.

Hotep defines a “hustler” as “an enterprising person determined to succeed, [a] go-getter.” Participants in Hustler University are exposed to the idea that human beings were made to be innovative and creative and “to manifest our dreams into creation,” says Hotep. Among the Hustler’s 10 Commandments that Hotep aims to teach today’s entrepreneur are the aphorisms “your network is your networth,” “the early bird gets the worm,” and success is “where opportunity meets preparation.”

Hotep offers helpful direction, but for independent-minded hustlers to succeed and thereby benefit both themselves and their communities, they need an environment that provides them opportunities to work freely. While there are many factors that keep entrepreneurial spirit dormant such as laziness, the absence of mentors, and skill deficiencies, one of the greatest obstacles is the mass of regulations generated by federal, state, and local governments.

The Institute for Justice recently released a report describing how government regulations prevent entrepreneurs from taking off. In Houston, for example, hustling a mobile food truck business is nearly impossible. For starters, a would-be mobile food entrepreneur must obtain a license from the City of Houston Department of Health and Human Services. Potential hustlers must submit, in-person, two sets of plans that satisfy a 28-point checklist. During the government truck inspection, the vendor must provide extensive documentation including an itinerary and route list. He is required to pay $560 in fees, which includes $200 for the installation of an electronic tracking device. Operators must also disclose their menu, including every ingredient used as well as its origin, and how each dish is prepared. Even worse, a form must be filled out for each ingredient. This is just a sampling of the regulations in one city. Similarly daunting tangles of red tape exist in every jurisdiction in America, preventing entrepreneurs from starting and maintaining small businesses.

It’s clear that this regulatory regime especially hurts small businesses, the primary source of new jobs. Mark Crain, William E. Simon Professor of Political Economy at Lafayette College, conducted a study several years ago describing the disproportional burden imposed by federal regulations on small business. Crain found that firms with fewer than 20 employees spend 45 percent more per employee complying with federal regulations than do larger firms. Small firms spend 67 percent more per employee on tax compliance than larger firms do, and, compared to the largest companies, more than 4 times as much ($3200 vs. $700) per employee to comply with environmental regulations.

The black unemployment rate currently (January 2011) stands at 15.7 percent. Hispanics are a little better at 11.9, but both lag whites at 8 percent. The last thing we need are burdensome government regulations preventing hustlers from hustling. Whether intentionally job-killing or not, these types of government regulations dampen the entrepreneurial spirit of people who are trying to improve their situation and make contributions to the civic good by providing services that people need. Based on employment figures, these regulations arguably affect blacks and Hispanics disproportionately.

If America is really serious about addressing abysmal unemployment rates, federal, state, and local governments would do well to take the handcuffs off of hustlers and free them from the regulations that keep them from creating wealth. In other words, get government out of the way and let the hustlers hustle!