The evolutionary promise of entrepreneurship
Entrepreneurship has a strong, positive brand…and it should. Its contribution to the growth of the economy and, by extension, to the improvement of life is immeasurable. Counting the full costs of domestic goods and services only begins to calculate the value of business activity. A more difficult to pinpoint, but no less important, metric is the qualitative importance of longer, healthier, and happier lives that we collectively enjoy due to the innovation, risk-taking, and savvy of successful entrepreneurs.
The popular image of the entrepreneur could be said to be that of a self-assured, driven performer who productively balances inspiration and perspiration, perfectly timing the market, persevering with a laser-like focus, and willingly venturing into uncertainty—all that. which leads to the realization of sweet success and generous profits as just reward. We appreciate that illustration. It’s reassuring. It goes a long way in shaping our national and cultural identity.
Growth-minded startups have also been known to increase hiring, strengthen competition, and improve productivity by injecting new products, services, and business designs into new markets.
Given the almost universal gains we receive from entrepreneurship, what possible improvements can be expected from the practice? Well, can I suggest one. One sector where we desperately need creative problem solving by entrepreneurs is in promoting shared prosperity. The time is right for an entrepreneurship that is less concerned with concentrated wealth and more with the dispersion of capital, particularly among key stakeholders such as employees and citizens of the communities in which companies operate.
We don’t need corporate social responsibility manifestos to get there, just energetic, awake, and committed business owners who choose to direct their talents to provide a higher degree of distributed benefits over the more common asset consolidation we typically associate with entrepreneurs. An alternative form of excitement and sense of reward can be derived from building businesses that intentionally promote greater economic growth and strong job creation among the greatest number possible.
Political pressure to tackle wealth inequality is growing and appears to be a key issue in the upcoming election season. If the current trajectory of wealth accumulation does not change, the call for government intervention will only increase. Some or most government intercessions will no doubt be seen as interference and obstruction by many in business. Encouraging executives, both young and old, to embed a shared prosperity ethic can mitigate coercion in policymaking.
It’s not that entrepreneurs and business leaders haven’t practiced this approach before. It has been widely reported that the period from the end of World War II to the 1970s was more economically stable due in large part to the relative lack of dissimilarity between the administration and the rank and file. Of course, this was a time of strong unions and more general political endorsement of government revenue equalization approaches. However, one cannot help but wonder if the shared sacrifice evident during the war stimulated a national value system whereby the distribution of wealth was more easily accomplished. Can we take care of each other similarly now?
Perhaps the most endearing gift that entrepreneurs give us is tangible creativity. They model and encourage thinking, which becomes options from which consumers can select the most solution-oriented or life-enhancing potentialities. This has historically caused human progress. Keep doing it. Given the current and ever present range of problems in the world that require answers and resources, we seek influencers, thought leaders and pioneers to develop and implement transformational strategies, services and products.
Deliberately including and addressing Americans left behind by a changing and segregating economy could prove not only nationally unifying, but also good business.