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CCSBE-CCPME
Current Newsletter - September 2008
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From Quebec
Message from the President
By Benson Honig
I am both pleased and excited to start the year as the incoming president of CCSBE/CCPME. This continues to be an important year for us. The efforts made by our Canadian colleagues in hosting the ICSB conference were outstanding, and they provided a high quality and very relevant program that truly showcased what we Canadians, as well as CCSBE/CCPME, can achieve. Hat’s off to the entire ICSB team!
Other recent developments include the launch of our new practitioner journal, SMEE review. A special note of thanks for our past-past president, Jean-Marie Nkongolo-Bakenda, and to Bob Anderson, for championing this important task. To view this exciting publication go to: www.ccsbe.org.
We’ll be beginning the “term” with an executive board retreat, that will take place in Waterloo early in October. This will hopefully set the stage for our future strategic direction, with an aim to diversify our financial resources, provide more value to our membership, and increase our membership base. Should any member have a particular interest or concern, I invite you to contact me, (bhonig@wlu.ca) or any other board member, regarding your thoughts and suggestions. The last time we held a retreat was nearly five years ago, and we have an entirely new board and leadership group – so we should all be looking forward to many new and exciting ideas!
Our next annual conference is already being planned, sponsored by Ryerson University in Toronto, under the watchful eye of Neil Wolf. It’s not too early to put October 16-18, 2009, on your calendar, as this will be a very special annual conference. We have lots of new ideas in store, particularly regarding the practitioner community.
As President, I’ll be representing CCSBE/CCPME at both the mid-annual ICSB meeting in Anaheim, and at the annual meeting in Korea. I hope to advance some of our specific interests and concerns at these meetings. For example, I have already “networked” with similar regional presidents on the idea of creating a doctoral consortium, probably in conjunction with our European or American affiliates. Of course, I’ll report back to you regarding what transpires, looking for opportunities to have the greatest impact on entrepreneurship both within Canada and globally.
Finally, I wish to thank each of you for the confidence (and honour) of serving as incoming President of CCSBE/CCPME. I will try my utmost to enhance and improve our already growing, important, and deserving organization.
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2008 ICSB World Conference June 22 – 25, 2008
By Maureen Joudrey, Conference Coordinator
Hosted by the Canadian Council for Small Business and Entrepreneurship, the 2008 International Council for Small Business World Conference was held in Halifax, Nova Scotia at the World Trade and Convention Centre from Sunday June 22nd to Wednesday June 25th. The conference organizing consortium was a partnership between Acadia Centre for Social and Business Entrepreneurship, Dalhousie University Faculty of Management, and Saint Mary’s University Business Development Centre.
With approximately 550 delegates in attendance, the conference explored the theme “Advancing Entrepreneurship: From Research to Results”. Delegates from 60 countries around the world came to present their research and best practices based on five themes: (1) Entrepreneurial Institutions, (2) Challenges and Opportunities to Entrepreneurial Development, (3) Social and Sustainable Entrepreneurship, (4) Creation to Exit : Fostering Small Business, and (5) Francophone. Approximately 230 Canadians benefitted from this international research.
Canadian keynote speakers, Jim Reid and Ben Barry, showcased Canadian entrepreneurs. Jim Reid spoke at lunch on Tuesday, June 24th about Green Standards North American Inc. which helps companies to divert corporate waste such as furniture and equipment from landfills and donate it to worthy causes such as schools and charities. Ben Barry captivated the audience at the Gala Awards Dinner on Tuesday night speaking about his business Ben Barry Inc. which helps companies to reach their target market through the selection of models that best reflect their customers.
Overall, delegates were satisfied with the information presented at the conference. Coordinating workshop presentations with academic papers throughout the timeline of the conference attempted to provide individuals with the ability to follow a theme from research to results. This provided practitioners, academics, researchers and small business owners a medium to share and discuss international research being conducted on small business and entrepreneurship.
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2008 ICSB World Conference- International Perspective
By Ayman El Tarabishy, Executive Director for ICSB
The 2008 ICSB World Conference, held from June 22-25, 2008, in Halifax, Nova Scotia, Canada brought together researchers, educators, policy makers and business service providers from around the world. In total the conference attracted approximately 550 delegates from over 60 countries. This global network of ICSB proved to be a great opportunity for participants to connect and network with leading professionals from the worldwide entrepreneurial community and engage in dialogue on the latest research, policy issues, and development trends.
The theme of the conference was “Advancing Small Business and Entrepreneurship: From Research to Results.” A key aim of the conference was to bridge the gap between research and action. By tackling a number of significant issues related directly or indirectly to small business and entrepreneurship, the 2008 Conference Proceedings represented a truly global perspective on small business research.
Five papers were selected by reviewers as the best for each of the presentation themes. The conference best paper was "Entrepreneurship and Spirituality: An Exploration Using Grounded Theory" by Sandra Kauanui, Kevin Thomas, Cynthia Sherman, Gail Waters and Mihaela Gilea.
Serving as host affiliate, the Canadian Council for Small Business and Entrepreneurship (CCSBE) put together a stimulating program and conference agenda with the organizational assistance of three Canadian universities: Acadia University, Dalhousie University and Saint Mary’s University. CCSBE, like our other ICSB affiliates, is dedicated to the growth and development of entrepreneurship and small businesses around the world. ICSB serves as an umbrella organization that integrates the activities of diverse organizations and professionals who deal directly with small business on a daily basis. The global ICSB network creates and distributes new information on small business management and entrepreneurial development. Ideas drawn from government, education, and commerce are provided to the small business community through the efforts of various Council members. Other ICSB affiliates include the European Council for Small Business (ECSB), the Small Enterprise Association of Australia and New Zealand (SEAANZ), the Korean Small Business Institute (KOSBI), ICSB Puerto Rico and Caribbean, ICSB-Brazil, Taiwan and Japan, the United States Association for Small Business and Entrepreneurship (USASBE) and the newly formed ICSB Middle East.
Throughout the four days of the Conference, delegates and participants from around the world actively took part in paper sessions, workshops and social gatherings with the goal of renewing friendships and building new relationships. This community that represents ICSB is truly what sets our organization apart and serves as the foundation for a global network, as mentioned by Dr. Charles Matthews, President of ICSB. From the ICSB Board of Directors that represents over 6 countries alone, to the students who participate in our Doctoral Exchange Program, ICSB crosses all boundaries to focus on a singular goal of promoting small business and entrepreneurship. The high energy 2008 ICSB World Conference ended with a call to action to continue the expansion and strengthening of our global network.
The 2009 ICSB World Conference will be held from June 21-24, 2009, in Seoul, Korea at the Convention and Exhibition Center (COEX). The event will be hosted by ISCB Korea and the Korea Association of Small Business Studies with support from the Korean Small and Medium Business Administration, Korean Small Business Institute, Korea Federation of Small and Medium Business, Small Business Corporation and Industrial Bank of Korea. The theme is ‘The Dynamism of Small Business: Theory, Practice, and Policy”. The conference is expected to be a unique gathering of business leaders, scholars, government officials, and economic experts interested in sharing best practices, building new relationships, and discussing diverse issues for the development and advancement of small and medium sized businesses (SMEs). For more information please visit http://www.icsb2009.org/.
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2008 ICSB Call for Papers gets overwhelming response
By Maureen Joudrey Project Coordinator for the 2008 ICSB Conference
and Robert Anderson, 2008 Paper Chair
We were all very excited about the overwhelming response we had to our call for papers. We received over 650 submissions representing 61 countries. These included papers and workshops. Of these submissions, we are proud to say that 20% were submitted by Canadians.
After thoroughly reviewing the submissions, we accepted 450 papers and 70 workshops to be presented at the conference. Many thanks to the reviewers. The number of reviews of paper alone was in excess of 1,600.
The accepted papers and workshops were then sorted into 4 themes and a program developed. This was an immense task undertaken by Chris Pelham, Ann Mcgrath, Ed Leach, Mary Kilfoil and Shelley Hession along with the two of us. The result was a program that was well-received by those attending the conference.
The final task was to review the full paper submissions to determine the best paper. This was done in three stages. First, the track co-chairs reviewed the papers in their respective track, selecting the best for each track. Then, these papers were grouped into the five themes and reviewers were asked to determine the best paper for each theme. Theme winners were announced at the conference. Finally, a panel evaluated the theme papers and selected one best overall, Entrepreneurship and Spirituality: An Exploration Using Grounded Theory. The winners are listed below:
| Theme |
Title |
Authors |
| Entrepreneurship and SME Development in Transition and Developing Economies |
Entrepreneurship and SME Strategy in the Chinese Economic Transition: A perspective of personal values |
Ke Gao and Bernice Kotey |
| Types of Entrepreneurship and Entrepreneurs (e.g., Women, Minorities and Community and Social Entrepreneurship) |
Social Entrepreneurship Activity and Different Skills Associated With Successful Social Entrepreneurship in South Africa |
Boris Uirban |
| Social, Environmental, and Ethical Responsibility and Sustainable Development of SMEs |
Entrepreneurship and Spirituality: An Exploration Using Grounded Theory |
Sandra Kauanui, Kevin Thomas, Cynthia Sherman, Gail Waters and Mihaela Gilea |
| Entrepreneurship and the Commercialization of R&D |
New High-Tech Firms’ Commercialization of R&D Compared With High-Tech Large Firms |
Bruce Kirchhoff, Aron Spencer |
| Types of Entrepreneurship and Entrepreneurs (e.g., Women, Minorities and Community and Social Entrepreneurship) |
Particularités du processus de création d’entreprises par des femmes |
Candido Borges, Louis Jacques Filion and Germain Simard |
Thank you!
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Inclusive markets: creating value for all
By David Wheeler
As the world becomes more inter-dependent financially, socially and environmentally, finding a way to reduce global poverty and spur economic growth becomes vital to global sustainability. Through our research over the past two years, we have seen first-hand the transformative power of "inclusive markets" – markets as diverse as a local camel dairy in Mauritania and a major construction company in Mexico. Over one billion people do not have access to safe drinking water. Some 1.6 billion lack access to electricity, and 5.4 billion have no access to the Internet. The poor may have only limited access to most formal markets, but what they do have are resilience, ideas and energy. They have a largely untapped potential as primary producers, employed workers, innovators, traders and entrepreneurs – and consumers. Inclusive business models engage the poor on the demand side as clients and customers, and on the supply side as producers, employees and business owners.
Last month, more than 200 academics and business practitioners from Africa, Asia, Eastern Europe and Latin America – as well as North America and Europe – came together at the Growing Inclusive Markets Forum at Dalhousie University. Participants from more than 40 countries gathered to share research and offer practical suggestions in support of enterprise that advances human development as well as economic goals. It was the first time such a large group of developing country academics had gathered to discuss the potentially symbiotic relationship between the private sector and the poor. Halifax was an ideal location to host such an event. Not only is Canada a leading donor and a major source of private investment in developing countries, but Canadian academics and political figures have a keen understanding of the important role entrepreneurship plays in development. In 2004, at the request of then-UN secretary general Kofi Annan, a commission headed by former Canadian prime minister Paul Martin and former Mexican president Ernesto Zedillo produced a groundbreaking report, Unleashing Entrepreneurship. That report provided compelling arguments in favour of more private sector involvement in alleviating poverty, many of which were echoed by Mr. Martin in his keynote address to the Halifax conference. But that was only the beginning. As Peter MacKay, Minister of National Defence and a keynote speaker at the conference, pointed out, Canada has helped unleash the conditions for pro-poor private enterprise in many countries, not least Afghanistan with over $1.9 billion US spent and pledged for reconstruction. By developing inclusive markets through local and international entrepreneurs – even in zones of conflict – the evidence suggests that enterprise-led economic growth will provide a more secure future where men and women have decent work and children can obtain a good education.
This month, the United Nations Development Program (UNDP) launches its follow-up report, Creating Value for All: Strategies for Doing Business with the Poor, which showcases myriad examples of inclusive businesses from around the world. The report features practical tools to identify market needs and 50 commissioned case studies by authors predominantly from the developing world, many of whom presented their work at the Halifax conference. Based on these cases, the report identifies five key constraints to doing business with the poor, such as limited market information and ineffective regulatory environments, and five effective strategies for overcoming these constraints, such as building on the strengths of the poor to increase the labour pool and expand local knowledge. Yet private sector organizations alone – small or large – cannot meet the needs of, or overcome all the obstacles to doing business with, the poor. Businesses, governments, communities, non-governmental organizations, donors and international organizations must all be engaged.
UN Secretary General Ban Ki-moon recently issued a call to action on the Millennium Development Goals, urging an international effort to accelerate progress and to make 2008 a turning point in the fight against poverty. On Sept. 25, the secretary general will reaffirm this call at the UN General Assembly. By then, we expect over 50 countries will have launched the GIM Initiative. It is shocking to note that more than 50 countries were poorer in 2000 than they were in 1990. We hope that by the end of this decade, that trend will have reversed in part by creating new opportunities for the poor through private enterprise.
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2008 ICSB Policy Forum
By Lois Stevenson
The June 20, 2008 Policy Forum was the fourth in a series offered as a pre-conference event to the Annual World Conference of the International Council for Small Business (ICSB). The first ICSB Policy Forum was held in conjunction with the 50th anniversary conference in Washington, DC in 2005, followed by forums in Melbourne, Australia in 2006 and Turku, Finland in 2007.
The objective of the 2008 Policy Forum was to bring together policymakers, SME/ entrepreneurship researchers and SME associations from around the world to dialogue on policy issues and questions related to stimulating a more conducive environment for entrepreneurship and SME development to contribute to economic growth. The theme of the Forum was “Trends in Entrepreneurship and SME Policies: Creating an Entrepreneurial Economy”. The program included expert panel presentations on SME/entrepreneurship policy platforms and the latest policy trends in Denmark, Ireland, China, and OECD and transition countries; on how research and advocacy efforts can be used to effectively influence policy development; and on how to assess, what some may consider to be, opposing policy choices – whether to focus policy and program initiatives on new firms, existing firms, high-growth firms, or innovative enterprises; whether having targeted policies and programs for women entrepreneurs is a good policy decision; and the appropriate role for government in stimulating SME development. These are topics of concern to governments and service providers from both developed and developing countries around the world.
Speakers included government policymakers, policy-oriented researchers and business association representatives from Europe, the US, New Zealand, and Canada. Delegates had the opportunity to engage with these experts in invigorating discussions on key issues affecting the development of an “entrepreneurial economy”.
The keynote address by Anders Hoffman, Danish Ministry of Economic Affairs, laid out a scientific approach to the formulation of entrepreneurship policy and the impact assessment of different policy measures. By adopting the Entrepreneurship Framework approach and experimenting with its outcomes, the Danish government case will contribute substantially to the knowledge base in this new policy domain. Rosemary Sexton, Enterprise Ireland, and David Smallbone, Kingston University, gave concrete examples of how SME and entrepreneurship policy play out differently in different contexts, from Ireland (developed country) to Former Soviet Republic economies (transition countries) to China (developing country). Participants had the opportunity to listen to arguments in favour of different points of view regarding policy objectives and targets – whether to target start-ups or growth firms by Anders Hoffman, women and other target groups by Julie Weeks, Womenable; when innovative entrepreneurship policy is a good policy choice by Zoltan Acs, George Mason University; and whether to develop broad policies affecting the environment for all small firms or to implement specific program interventions to address specific challenges faced by small firms by Dennis Dennis, National Federation for Independent Business. Benne Van Popta, Royal Dutch Association of SMEs, outlined very well the challenges created by the different perceptions researchers, policymakers and SME associations have of each other and what is needed for SME associations to effectively influence the policy process. And finally, participants heard views from Ian Drummond, UK Department of Business, Enterprise and Regulatory Reform, and Claire Massey, Massy University, on how to improve the impact of research on policy development, including how “not” to do it!
The Forum was co-chaired by Lois Stevenson, International Development Research Centre and Rob Van der Horst, 2007-08 ICSB President. About 50 participants from 13 countries attended, representing policymakers, researchers, entrepreneurship and enterprise centers, economic development agencies and business associations.
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Acadia Colloquium on Strategic Integration of Entrepreneurial Education
By Lisa Lowthers
“I was not one of the passionate when I arrived, but have been converted,” says Heather Johnston of Brandon University. Johnston was one of 27 educators and administrators from as far away as Mexico and Japan that attended an international colloquium hosted by the Acadia Centre for Social & Business Entrepreneurship (ACSBE) and held at Acadia University on June 20 and 21. Entitled “A Holistic Approach to the Strategic Integration of Entrepreneurial Education”, the event was designed to provide a platform to highlight three integrated models – those of ACSBE and Acadia University, Universite Laval and the Northern Ireland Centre for Entrepreneurship at the University of Ulster and Queens University (NICENT).
Despite unique local economies, institutions and diverse programming, the similarities from the three models presented were easily recognized by the participants. Small teams of educators reviewed the models and built hybrid “best practice” presentations as a means of considering how to integrate entrepreneurship at their own institutions after the event.
These presentations were then reviewed by Lisa Lowthers of ACSBE and Sharon Porter of NICENT and a summary of the findings were presented at the ICSB conference.
Common themes included:
- An acceptance and utilisation of a broader definition of entrepreneurship which does not solely concentrate on new business starts (Enterprise for Life/ Skills for Life) but which promotes entrepreneurial attitudes, values and competencies.
- A shared focus on personal development and helping students to realise their dreams and potential in life.
- A shared drive to integrate entrepreneurship education in all disciplines of study and to migrate it beyond the traditional boundaries of Business and Management.
- A focus on student centred learning in action: experiential and practical application.
- A focus on fostering an entrepreneurial culture through education.
- A desire to bridge university with the wider community.
- All utilised a strategic approach to integration which recognises unique cultures and contexts.
- Similar implementation challenges were encountered.
- Common entrepreneurial traits such as: need for achievement, need for autonomy, need for power and control, tolerance for ambiguity, self-confidence, control of one’s destiny, high level of sensitivity and instinct.
- Common entrepreneurial skills and characteristics such as: creative thinking, innovativeness, vision, flexibility, resourcefulness, problem solving, communication, risk taking, intuition, opportunity recognition.
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CCSBE and Dell Canada Announce 10 Small Business Excellence Award Finalists
Award recognizes small businesses that use technology to better serve customers
TORONTO and HALIFAX, June 25, 2008 – At the 2008 International Council of Small Business (ICSB) World Conference in Halifax, Nova Scotia, Dell Canada announced the ten finalists for the company's fourth annual Small Business Excellence Award. To learn more about the award, visit www.dell.ca/ceaward.
“Technology facilitates interaction and trust with customers. Successful small businesses are leveraging that asset to grow their businesses,” according to Kevin Peesker, vice president and general manager Small and Medium Business, Dell Canada. “The ten finalists clearly demonstrate innovative application of technology, and we are proud to recognize them.”
Each of the finalists will receive a Dell business-class laptop computer, and a national winner will be named in August following another round of judging. The national winner will then be considered from among 12 country winners for the first global Dell Small Business Excellence Award that will be announced in fall 2008.
The 2008 finalists for the Dell Canada Small Business Excellence Award were:
- Britec Computer Systems, Ltd., Calgary, Alberta, implements information solutions, providing support, accounting software and network systems.
- Eclipse Awards, Vancouver, British Columbia, is a supplier of personalized crystal recognition awards.
- Fifth P Solutions Inc, Mississauga, Ontario, helps clients deliver their brand promise by developing learning solutions that enable their people to provide a superior customer experience.
- Global Infobrokers Inc., Saskatoon, Saskatchewan, provides entrepreneurial training, development and coaching by entrepreneurs for entrepreneurs.
- Jolera Inc, Toronto, Ontario, is a technology consulting, integration and support firm.
- SAFEC Inc., St. Laurent, Quebec, offers businesses a tool that enables them to quickly source information on government and private funding programs.
- Speechworks, Winnipeg, Manitoba, works with people of all ages with speech, language, fluency and voice disorders.
- 2Design Web, Ottawa, Ontario, is a web design company specializing in content management solutions.
- Valerie's Extended Wear, Marathon, Ontario, provides retail plus size clothing, men and women's regular sized clothing and consignment goods.
- WRI Supply, Kelowna, British Columbia, is a wholesale distributor of sign, digital and awning supplies.
Annette St Onge, CCSBE past president, and incoming ICSB President represented CCSBE in the judging panel for Canada finalists.
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Small Business Policy Roundtable Industry Canada, Small Business Policy Branch
Prepared by Ron Robichaud and Lois Stevenson
The following is a summary of the Small Business Research Roundtable, held by the Small Business Policy Branch of Industry Canada, at the International Council for Small Business (ICSB) International Conference, which took place in Halifax, Nova Scotia, June 22nd-24th, 2008. The meeting was chaired by Lois Stevenson, and the list of participants encompassed a wide variety of academics and professionals. This article reviews the highlights of the roundtable discussion and enlightens some of the key areas of interest that were revealed through this discussion.
The purpose of the Small Business Research Roundtable was to advance discussions on the development of a small business research agenda for Industry Canada and to assess the future challenges facing small businesses as well as governments seeking to encourage the development of entrepreneurship, with a focus on gaining insight from the international community of experts in small business and entrepreneurship research.
The Roundtable was attended by 24 people: 4 representatives from the Canadian research community; 8 international small business and entrepreneurship research experts (from Australia, Denmark, New Zealand, the UK, and the USA); 4 officials from Industry Canada; the Ontario Ministry of Small Business and Entrepreneurship; plus observers from the International Development Research Centre, the Government of Egypt, the Acadia Centre for Social and Business Entrepreneurship (ACSBE), the Atlantic Canada Opportunities Agency (ACOA), and Dalhousie University.
Industry Canada indicated that the current aim of the Small Business Policy Branch is to turn more research attention to two areas:
- Growth firms—which appear to have a disproportionate impact on the economy and employment—and the different strategies they utilize and specific barriers they face; and
- The nature of innovation in small firms where some have argued that radical innovations are more likely to emerge.
Outcome of Roundtable Discussion by Theme
Growth Firms
There was agreement that not enough is known about how and why companies grow. Two of the key questions are, how to build the systems to grow a company beyond $1 million in revenue and how entrepreneurs gain the management talent in order to do this.
In addition to studying firms that grow (and the processes by which they do so), it would be useful to research firms that do not grow and examine why they do not. For instance, what are the barriers (tax policies, regulation, motivation, etc.)?
At the same time, more research is needed on the process of growth in firms. Where is the expertise coming from in growth firms? There is also a gap in the knowledge base about the role of acquisition for growth companies. Is there a difference between organic growth and acquired growth? Are the requirements different? How does “acquisition” fit into the growth firm equation, and what is the process of growth for an “acquired” firm? This could be an issue for the research agenda. For example, a country might have a large number of gazelles, but they could be “acquired” firms. In fact, research shows that the single most likely outcome for a gazelle is to be acquired within the next 3-5 year period. This is an interesting area to investigate.
Another key question is, does government have any role to play in these high growth firms, and, if so, what is it? What defines success? And what policies are likely to be most effective? For example, in the US, tax policy (i.e. taxation of capital gains) does not have a significant effect on the supply of venture capital because most venture capital comes from university endowments, which do not pay taxes. However, making changes to pension fund regulations would be a more effective policy for unleashing more venture capital than tax policy. In other words, it is critical to undertake research to assess the impact of policies.
It is also important to understand the geographic context in which growth firms emerge. What explains the difference in the propensity for high-growth firms in one region of the country versus another?
Entrepreneurship Framework
It was agreed that the Organization for Economic Co-operation and Development (OECD) Entrepreneurship Framework provides a vehicle for focusing the debate on policy issues and priorities. The question is, how can the Framework be developed more extensively by adding data and benchmarking results over time? The problem is that the Framework relies quite heavily on data and requires international benchmarking, thus, the international community needs to be engaged in the project. However, with good evidence-based data for each of the indicators, the Framework will enable policymakers to more effectively establish policy priorities. As well, use of the Framework requires the setting of targets. What does the government want to achieve—an increased start-up rate, or improved growth rates? The Framework allows a more structured assessment regarding what configuration of policies might create shifts toward achieving those objectives and balance short-term and long-term outcomes.
The Framework process involved first publishing data on the performance side – start-up rates, data on high growth firms and new high growth firms, etc. Then, indicators for each of the determinants of entrepreneurship were (are being) developed, using existing data or Expert Opinion Surveys. The Framework is also being modified to respond to regional analysis and differences. The Danish government recognizes the advantage of applying the Framework, as it outlines a comprehensive evidence-based policy approach and allows tracking of trends and changes over time and benchmarking against best-performing countries. The government focuses on certain elements of the framework each year and holds educated discussions to flesh out the policy area in more detail and to be more specific at the program level.
Innovation
Considering different cultures, the supply curve, and the demand curve, there seems to be a disconnect between Research and Development (R&D) and innovation/commercialization outcomes. First of all, significant public investment is being made in R&D, but very little in research on how to produce better commercialization outcomes. As well, there is a large focus on the supply of R&D but little focus on the “demand” for R&D. A lot of R&D is being produced by universities but very few pay attention to the market demand for potential new products and services. It is cumbersome to convert research into marketable solutions and to establish companies to do this. It can take a long time to work through the commercialization process and much more is needed to be known about the commercialization process itself. The crucial point is determining how to get more out of R&D. To understand this better, more focus should be placed on the consumer or the market.
Another research question relates to knowledge about what programs are more likely to support commercialization outcomes? There are many programs to support innovation (i.e. incubators), but virtually none to support the marketing aspects. Participants also noted that there is a lack of impact evaluation on many of the existing support mechanisms. For example, what is the real track record of incubators? Which university commercialization models and infrastructure are the most effective? What is the “best practice” in accelerating the commercialization of R&D being conducted in universities and fast tracking it into high-growth sales? One of the challenges is that universities are focused more on technology transfer, which really has nothing to do with starting a business. Therefore the systems they have in place do not support spin-off activity, which could be a big component of commercialization activity.
Intellectual property (IP) rules and procedures were also raised as a policy issue. Each Canadian university has its own IP policies, making it very difficult and cumbersome to negotiate venture capital deals when more than one university/technology is involved. This is impeding the commercialization process and there is a need for studies of international good practice in shortening the length of time in dealing with universities on licensing and patenting. Marketing expertise in Canada is also limited.
Management Capability
It was noted that Industry Canada did not mention management capability in its list of research priorities. The main reason is that the “the jury is still out” on the role of government in supporting the development of management skills due to contrasting views on the “spillover” effects.
One key lesson learned is that entrepreneurs learn from other entrepreneurs. There was a call for research to examine the best international programs to transfer good management practices between entrepreneurs (i.e. mentoring programs, self-help groups, and wisdom exchanges) and to identify what makes these programs successful.
Entrepreneurship Education
Why not start entrepreneurial education in grade primary as part of building an entrepreneurial culture, i.e. instill entrepreneurial values and teach children that it is okay to succeed? To what extent are children being encouraged not to excel? They should at least be made aware of their potential to be an entrepreneur.
There was some debate among participants about the goal of entrepreneurial education– whether it should focus on educating university students more broadly or target entrepreneurs who want to create fast-growth firms. This will affect the kind of entrepreneurial/management skills needed.
There was consensus, however, that one of the key issues was developing the skills to grow a business. Training someone to build a growth company is very difficult and involves competencies quite different from those to start a company. In many cases, growth firms are led by entrepreneurs with a university education. Participants at the roundtable were in agreement that teaching Entrepreneurship in universities is essential. What, then, can universities do to more effectively build entrepreneurial capacity?
There is a need to rethink the methodologies used in university teaching – e.g. make use of entrepreneurs to mentor students, build networks, and to examine what is being taught. This kind of benchmarking and milestone data is essential to improving entrepreneurial education practices and producing better outcomes (i.e. not only the proportion of graduates starting a business, but those with high growth firms). These outcomes need to be tracked over periods of up to 10 years following graduation. Currently, it is difficult to track the impact of entrepreneurship education on university graduates because of the lack of access to university records for data collection. At the same time, it is important to understand what should be measured as an outcome of entrepreneurship education (i.e. The number of students starting a business? The amount of shareholder value created by the firms as they start and grow?¹). Perhaps Entrepreneurial Education Panels (longitudinal, control group studies) should be developed to see if there is evidence that education influences behavior at different points of business start-up and growth.
In any study of entrepreneurship education in Canada, Industry Canada was cautioned to include some questions to capture “social outcomes” as well, since entrepreneurship is a social phenomenon.
In any study of entrepreneurship education in Canada, Industry Canada was cautioned to include some questions to capture “social outcomes” as well, since entrepreneurship is a social phenomenon.
Another issue worthy of research is the role of self-selection in assessing the impact of entrepreneurship education. Are students who enroll in entrepreneurship courses and enter business plan competitions already predisposed to becoming entrepreneurs, and what incremental value is being produced? While Business Plan Competitions do produce start-up companies, not much is known about the growth trajectory of these firms over time.
There was also consensus about the lack the management talent to produce high growth firms. Business schools are teaching the management of existing resources and how to do business plans and start companies, but not many are offering courses on how to manage growth, which requires a different set of knowledge and skills. Participants agreed that this gap should be addressed.
¹At Babson College, the evidence does not strongly support the theory that entrepreneurship education makes a difference. Students who take entrepreneurship courses are more likely to start a business but this does not appear to make a significant difference on the outcome of the business (i.e. its success or growth rate).
Macroeconomic versus Microeconomic Policies
Roundtable participants agreed that one can easily get it wrong with macroeconomic policies, and that governments have made many mistakes in the past. It is important to also focus on the microeconomic level. For example, there is a role for institutional infrastructure—offering Business Support Services, information, and advice to help businesses get started and grow. The “market” is not going to develop on its own—“something has to happen”. As well, governments need to know when to “step out” of the support role. For example, incentives may be needed to kick-start a venture capital industry, but once it is developed, government should let the private sector take over. However, rigorous impact assessments on policy measures must be undertaken and the results of these assessments shared broadly in the stakeholder community.
Conclusion
This Small Business Research Roundtable offered much insight and revelation. The diverse background of the participants created a unique circle of ideas, concepts, and concerns, and illumined areas to pursue with further vigor in the pursuit to develop successful entrepreneurship.
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Entering A Foreign Market
(http://www.bdc.ca/en/my_project/Projects/articles/exporting_entering.htm?WT.mc_id=CS_EN_CCSBE)
Before venturing into foreign markets, it's important to have a clear understanding of culture, customs and market conditions. This BDC article gives tips on the type of information entrepreneurs should seek about prospective markets. The article includes a number of links to online information sources and makes recommendations about visiting potential markets and attending tradeshows. It offers guidance on how to find the right market entry strategy, choose the right foreign partner, and make the most of strategic alliances.
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CCSBE/Ryerson 2009 Conference Update
By Neil Wolff, 2009 CCSBE Conference Chair
and Robert Anderson, 2008 Paper Chair
We are enthusiastically working on the 2009 CCSBE conference to be hosted at Ryerson in 2009. The conference will be held on October 16, 17 and 18, 2009. We have secured fantastic rates at the Toronto Marriott Downtown Eaton Centre Hotel which will also be available for three days prior to and after the conference for those who would like to plan an extended stay in Toronto. While we will welcome all quality contributions for presentation, the focus of the conference will be "Commercialization of Innovation". The Journal of Small Business and Entrepreneurship has also agreed to publish a special issue that focuses on the theme of the conference. We are busy planning for the event and will have more details after the CCSBE board retreat early this fall.
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- - - REGIONAL UPDATES - -
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From
Quebec. . .
An International Colloquium “Vulnerability of SMEs in a global environment”
The University of Québec at Trois-Rivières will be the host of an international colloquium, organized jointly by the SMEs Research Institute, AUF and AIREPME, called “Vulnerability of SMEs in a global environment”. It is the Eleventh Scientific Days of the Entrepreneurship Network.
This Colloquium will be held in May 2009, 27th to 29th and will be divided into six sub-themes:
- Minimizing risks and vulnerability of the business against globalization by using strategies, behaviours and adapted governance models;
- Vulnerability of SMEs, proximity strategies, sustainable development and social responsibility;
- Financial inclusion, social responsibility and sustainable development;
- SMEs and internationalization strategies
- Outsourcing production activities by large national businesses: impact on SMEs;
- Public intervention and Not-for-profit organizations: disengagement and/or new intervention strategies for SE/SMEs
Important dates to remember:
| Oct. 2008, 30th |
Announcement of communication intentions by authors (Title, author(s) and a short description less than 200 words). Deadline to submit a Round Table proposal |
| Nov. 2008, 20th |
Deadline to submit full communication |
| Jan. 2009, 15th |
Answer to authors of approved communications |
| Jan. 2009, 15th |
Deadline to submit a paper for doctoral consortium |
| Apr. 2009, 1st |
Deadline to submit final revised communication |
For more details or to register, please go at http://www.uqtr.ca/JS2009
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