From turmoil in domestic and international financial markets to mounting concerns for environmental issues, entrepreneurs are likely candidates for finding the very solutions that the world needs. The Case for Entrepreneurship, a panel discussion held at Boston College last night, pinpointed the benefits that entrepreneurs bring to these problems, as well as the importance of creativity and innovation in a rapidly changing marketplace.
Presented by the BC Entrepreneur Society, the panel consisted of Jack Hughes, BC '84, who is an entrepreneur with several successful business ventures, Harold Petersen, a professor in the economics department, Jessica R. Manganello, vice president of Exemplar Law Partners, LLC, and Michael J. Cermak, GA&S '13, who is a founding member of Real Food BC.
The discussion began with each of the panelists' thoughts on what it means to be an entrepreneur. Most importantly, Hughes said, an entrepreneur is someone who has an idea about how to do something better. Building off this description, Petersen said, "Entrepreneurs are people who have this vision of what could be, and make it happen." Further piggybacking on this response, Manganello called entrepreneurs people who, when confronted with a problem or challenge, makes the most of their resources to take advantage of an opportunity.
Perhaps the most telling definition, however, came from Cermak. For him, the word "radical" comes to mind when talking about entrepreneurship. Derived from the Latin word "radix," which means root, the word "radical" reminds Cermak that while entrepreneurs may have what others call radical ideas, they in fact are simply "working from their roots to make a change in the world."
Moving on, Hughes addressed the tension between risk and reward that entrepreneurs continually face. "There are two central themes here. What is the entrepreneur looking to achieve? What is the risk?" he said. For many entrepreneurs, Hughes said, the prospect of coming up with an idea that makes a difference in the world is the true reward, and it is self-fulfilling.
Despite an entrepreneur's best intentions, Hughes reminded the students in attendance that most startup companies and new businesses inevitably fail. "Many entrepreneurs are incapable of seeing the potential risks of a particular venture," he said. "This lack of perception is usually due to their fixation on the potential reward."
The next topic centered on the increased entrepreneurial opportunities that come along with an economy in recession. Petersen believes that despite the poor economy, entrepreneurs remain a driving force for economic growth. "Times of crisis and change are also times of tremendous opportunity," he said. Manganello agreed. "Now is the perfect time to take the entrepreneurial leap," she said. Similarly, entrepreneurs stand to make gains in the environmental sector, creating and sustaining jobs and ideas that will make industry "greener." For Manganello, entrepreneurship is clearly the way to affect infrastructure and policy changes that will help address global warming, climate change, and energy shortage. Innovation and creativity typically come from small business owners, she said. Large companies have a lot of red tape and bureaucratic nonsense that prevents them from implementing "green" initiatives.
As a result, entrepreneurs who are more likely to take risks in developing "green" business models, practices, and inventions end up pushing the envelope. "All you need is that proof of concept, that 'yes, this can work,' and that will drive bigger companies," she said.
Along that line, Cermak talked about the importance of "growing local value" and how entrepreneurs have the unique opportunity to do so. Cermak described three relationships that dictate how successfully an entrepreneur can use local resources to generate business. The first relationship, he said, is between the business and the people in the local community. "Valuing local people is essential to making them feel as if they're part of your platform of business," he said. The next relationship is between the community and the product. Cermak reminded the audience that while looking at pre-existing trends of a local community or culture can be difficult and time-consuming, the overall effects of such an ethnographic effort will be monumental for the success and sustainability of the product. Finally, entrepreneurs should take a look at what literally grows in and around a local community. "Understanding what actually grows in your region can definitely be a starting point for a successful business proposition or application," Cermak said.
Next, the panelists discussed the likelihood of "mom and pop" stores successfully competing with the larger outlets such as Wal-Mart or Target. While Petersen believes that these smaller, local stores can only survive if they identify and maintain a niche market, Hughes emphasized the importance of innovation and risk-taking. Because the larger outlets were once smaller, local stores at their conception, they've grown to the point where they are now too stretched out.
"The antithesis of creativity is destruction. Especially with the economic crisis now, small business must find new ways of doing things that will eventually replace the established behemoths," he said.
Overall, entrepreneurs will be vital to the future of the global economy, environment, and greater society. "Entrepreneurs are key to any potential progress," Manganello said.
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