MSMEsDay2023

Apr 20, 2023

MSMEs Day 2023 at the United Nations

Micro, Small, and Medium-sized Enterprises (MSMEs) are vital in creating jobs, reducing poverty, and driving economic growth, particularly in developing countries. MSMEs are businesses with fewer than 500 employees and generate less than a certain amount of revenue, depending on the country. To recognize the contributions of MSMEs and raise awareness about the importance of supporting them, MSMEs Day is celebrated annually on June 27th. In addition, the United Nations General Assembly designated the day in 2017 to align with the Sustainable Development Goals (SDGs).

The SDGs are 17 goals adopted by the United Nations in 2015 to promote sustainable development and address global challenges such as poverty, inequality, and climate change. Achieving the SDGs, including Goal 1 (No Poverty), Goal 8 (Decent Work and Economic Growth), and Goal 9 (Industry, Innovation, and Infrastructure), requires the active participation and support of MSMEs.

MSMEs face challenges, including increasing competition, changing consumer preferences, and technological disruption. To address these challenges, MSMEs can adopt a human-centered approach. This approach involves understanding the needs and preferences of customers, employees, and other stakeholders to improve products, services, and operations. By adopting a human-centered approach, MSMEs can create more effective and user-friendly solutions, resulting in greater efficiency, productivity, and a positive user experience.

The International Council for Small Business (ICSB) is a non-profit organization that supports the interests of MSMEs globally. The ICSB was founded in 1955 and has been instrumental in advancing research, education, and programs that promote small business growth and development.

MSMEs Day provides a significant opportunity to recognize MSMEs’ contributions and raise awareness about the challenges and opportunities facing these businesses. The ICSB, under the leadership of Ayman ElTarabishy, will continue to play a critical role in supporting and supporting MSMEs globally and advancing initiatives and programs that promote small business growth and development.

Looking to the future, MSMEs will need to remain agile, adaptable, and innovative to succeed in an ever-changing landscape. By embracing innovation and a human-centered approach, MSMEs can positively contribute to the global economy and society. MSMEs Day provides an opportunity to recognize the contributions of MSMEs to the global economy and to raise awareness about the importance of supporting them to achieve the SDGs and promote sustainable development.

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Human-Centered versus People-Centered

Apr 15, 2023

Human-Centered versus People-Centered: Understanding the Difference, because words do matter

Macroeconomics is a branch of economics that studies how an overall economy—the markets, businesses, consumers, and governments—behaves. The focus is on metrics on output, not on the individuals who carry out the tasks to make these sectors work. On the other hand, human rights connect us through a shared set of rights and responsibilities. Every person has value and dignity.

In entrepreneurship and policymaking, two approaches are often used to address the needs of individuals and communities: human-centered and people-centered. While they share a common goal of improving the well-being of people, there are significant differences between the two approaches.

People-centered approaches tend to prioritize the needs and concerns of specific groups or communities, while human-centered approaches prioritize all individuals’ fundamental needs and values. While both approaches have benefits and drawbacks, it is essential to understand the distinctions to determine which method is appropriate for a given situation.

For example, consider the case of small businesses. A people-centered approach to small business policy might focus on the specific needs of small business owners and their communities, such as access to capital, tax incentives, and workforce development programs. While this approach can effectively address the concerns of small business owners and their communities, there may be more effective ways to ensure the long-term sustainability and growth of small businesses.

On the other hand, a human-centered approach to small business policy would prioritize the fundamental needs and values of all individuals involved in the small business ecosystem. This might include fair labor practices, environmental sustainability, and equitable access to resources and opportunities. A human-centered approach to small business policy can create a more sustainable and reasonable ecosystem for small businesses by prioritizing these fundamental needs and values.
It is important to note that a human-centered approach does not oppose the interests of specific groups or communities. Instead, it seeks to ensure that their interests are aligned with the interests of all humans and the greater good. By focusing on the well-being of all individuals involved in a particular ecosystem, a human-centered approach can create a more just and equitable society for everyone.

To achieve a more sustainable and equitable future for small businesses, it is crucial to adopt a human-centered approach that prioritizes the well-being of all individuals, regardless of their background or affiliation. As the world moves towards achieving the United Nations’ Sustainable Development Goals (SDGs), we must shift our focus towards implementing people- and human-centered policies.

At the International Council for Small Business (ICSB), our focus on human-centered policies for MSMEs aligns with the UN SDGs and our commitment to sustainability. By prioritizing the needs and well-being of individual entrepreneurs and their communities, we can create a more prosperous and equitable future for all. Through our research, programs, and networking efforts, we aim to promote policies and strategies that prioritize the human element of small business ecosystems, ultimately leading to a more sustainable and equitable future for all.

For ICSB, being Human Centered is synonymous with promoting Humane Entrepreneurship. Humane Entrepreneurship is an approach to entrepreneurship that prioritizes the well-being of individual entrepreneurs and their communities. It seeks to create sustainable and equitable ecosystems that are profitable and socially responsible. Humane Entrepreneurship creates an environment where businesses can thrive, and communities can prosper by prioritizing the fundamental needs and values of all individuals involved in a particular ecosystem. ICSB believes that a human-centered approach to entrepreneurship, grounded in the principles of Humane Entrepreneurship, is essential to creating a more just and equitable society for everyone.

Ultimately, a human-centered approach is not only essential for sustainable development and social progress, but it is also a moral imperative. We must create a world that prioritizes all individuals’ well-being and fundamental needs, regardless of their background or affiliation. So let us work together to create a more just and equitable world where all conditions are met, and everyone has the opportunity to thrive.

Written by:
Dr. Ayman ElTarabishy
President & CEO, ICSB
Deputy Chair, Department of Management
GW School of Business

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WhenAIMeetsSmallBusiness

Mar 28, 2023

When AI Meets Small Business

Artificial intelligence (AI) is changing the landscape of small businesses by offering new solutions to long-standing problems. However, while AI can potentially increase efficiency and productivity, it also comes with challenges.

Pros of AI for Small Businesses

Increased Efficiency

One of the primary benefits of AI is that it can automate routine tasks, freeing employees to focus on more complex and creative tasks. For example, chatbots can handle customer service inquiries, reducing the workload of customer service representatives. Similarly, automated inventory management systems can track stock levels and reorder products when necessary, reducing the need for manual input.

Improved Customer Service

AI-powered chatbots and virtual assistants can provide instant and personalized customer support 24/7. This can improve customer satisfaction and loyalty, as customers feel heard and valued. Additionally, AI can analyze customer data and provide insights into customer preferences and behaviors, helping businesses tailor their products and services to meet their customers’ needs.

Enhanced Decision-Making

AI algorithms can process vast amounts of data quickly and accurately, providing businesses with insights that would be impossible to uncover manually. This can help companies to make data-driven decisions that are more informed and accurate, leading to increased profitability and competitiveness.

Cost Savings

AI can help small businesses reduce labor costs by automating routine tasks and reducing the need for manual labor. Additionally, AI-powered inventory management systems can optimize stock levels, reducing the amount of capital in inventory. This can result in significant cost savings over time.

Cons of AI for Small Businesses

High Initial Investment

AI requires a significant initial investment, including hardware, software, and employee training. As a result, small businesses with limited budgets may find it challenging to justify the expense of implementing AI technology.

Lack of Expertise

AI technology is complex, and many small businesses lack the in-house expertise to implement and manage it effectively. This may require firms to hire outside experts, increasing the cost of implementing AI.

Data Security Concerns

AI relies on data to function effectively, but this data can be vulnerable to cyber-attacks and other security breaches. In addition, small businesses may not have the resources to implement robust security measures, making them more susceptible to data breaches.

Ethical Concerns

As AI becomes more advanced, there is a growing concern about its impact on society. For example, AI algorithms can perpetuate bias and discrimination if incorrectly designed and implemented. Therefore, small businesses must be aware of these ethical concerns and ensure their AI systems are designed and implemented ethically and responsibly.

Conclusion

AI has the potential to revolutionize small businesses, offering new solutions to long-standing problems. While challenges are indeed associated with implementing AI, the benefits are significant. Small companies can leverage AI to increase efficiency, improve customer service, enhance decision-making, and save costs. First, however, small businesses need to be aware of the potential drawbacks of AI, including the high initial investment, lack of expertise, data security concerns, and ethical concerns. By understanding these pros and cons, small businesses can make informed decisions about whether and how to implement AI technology.

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HumaneEntandSDGS

Mar 26, 2023

Humane Entrepreneurship and the United Nations Sustainable Development Goals

Humane entrepreneurship is an approach to business that places equal importance on social and environmental impact as it does on financial profit. The United Nations Sustainable Development Goals (SDGs) are 17 global goals that aim to promote sustainable development and address various social, economic, and environmental challenges facing today’s world.

Humane Entrepreneurship:

Humane entrepreneurship is a concept that emphasizes the importance of social and environmental impact as well as financial profit. The primary goal of compassionate entrepreneurship is to create socially and environmentally responsible businesses while being economically viable. Humane entrepreneurs aim to create products or services that benefit society and the environment while ensuring their business practices are ethical and sustainable.

Humane entrepreneurs use various strategies to create social and environmental impact. For example, they may focus on creating products or services that promote sustainability, such as renewable energy, eco-friendly products, or sustainable agriculture. They may also prioritize social impact by creating products or services that address social issues, such as poverty, hunger, or access to education.

Humane entrepreneurs may also implement sustainable and ethical practices throughout their supply chain. For example, they may use environmentally friendly materials, reduce waste, and ensure fair labor practices. Doing so can positively impact the environment and society while building stronger relationships with customers and stakeholders.

UN Sustainable Development Goals:

The United Nations Sustainable Development Goals (SDGs) are 17 global goals that aim to promote sustainable development and address various social, economic, and environmental challenges facing today’s world. The SDGs cover many issues: poverty, hunger, health, education, gender equality, clean water and sanitation, affordable and clean energy, sustainable cities and communities, responsible consumption and production, climate action, and more.

The SDGs provide a framework for businesses to align their strategies with global sustainability goals. By incorporating the SDGs into their business practices, companies can positively impact society and the environment while achieving financial success. For example, companies can focus on creating products or services that address specific SDGs, such as reducing poverty, promoting gender equality, or reducing greenhouse gas emissions.

Businesses can also use the SDGs to guide sustainable and ethical practices throughout their supply chain. For example, they can use renewable energy sources, reduce waste, ensure fair labor practices, and prioritize responsible consumption and production.

How Humane Entrepreneurship and the UN SDGs are Connected:

Humane entrepreneurship and the UN SDGs are closely connected, aiming to create a more sustainable and equitable world. By incorporating the SDGs into their business models and practices, humane entrepreneurs can positively impact society and the environment while achieving financial success.

Humane entrepreneurs can use the SDGs to guide the creation of products or services that address specific social and environmental issues. For example, a humane entrepreneur may focus on creating a product that addresses the issue of hunger by using sustainable agriculture practices. By doing so, they can positively impact society while also creating a profitable business.

Humane entrepreneurs can also use the SDGs to guide sustainable and ethical practices throughout their supply chain. By prioritizing fair labor practices, using environmentally friendly materials, and reducing waste, they can positively impact the environment and society while building stronger relationships with customers and stakeholders.

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DoPolciesWork

Jan 23, 2023

Evaluating the Impacts of SME and entrepreneurship policies

WHAT’S THE ISSUE?

Is SME and entrepreneurship policy having its intended effects? Do the benefits of specific programmes justify their costs? Could these benefits be achieved more cost-effectively through alternative approaches? Evaluation provides the key to answering these questions, by determining the relevance, efficiency and effectiveness of a policy or programme in relation to its objectives.

This is particularly important in the field of SME and entrepreneurship policy because questions can legitimately be put as to whether current SME and entrepreneurship policies are fit for purpose, or whether changes are needed in its scope and focus. For example, does the policy mix need to be adjusted or do the enterprises and entrepreneurs targeted need to be modified?

However, reliable impact evaluation is rare in the field of SME and entrepreneurship policy, and less common than in fields such as labour market policy. This remains the case, despite recent improvements in available data and methods for evaluation. One of the reasons is a lack of widespread knowledge among policy makers about how reliable impact evaluation should be taken.

The just-published OECD Framework for the Evaluation of SME and Entrepreneurship Policies seeks to address these issues by making two major contributions. First, it sets out how to achieve reliable impact evaluation in SME and entrepreneurship policy, including offering a six-step scale to judge the reliability of any evaluation or evaluation method. Second, it provides a summary of what is known about policy impacts from international meta-evaluations and a selection of reliable individual evaluations in the field, spanning a wide range of policy areas and OECD countries.

WHY ATTEND THE WEBINAR?

This event will launch the OECD’s new Framework for the Evaluation of SME and Entrepreneurship Policies and Programmes, including its messages for evaluation methodologies and learning from the findings of previous evaluations. It offers the opportunity to get involved in debate and discussion with a range of constituents from the OECD and ICSB communities on this important topic. The issues that will be covered include:

What are the features of reliable impact evaluation?
What is the evidence from past evaluations?
What are the lessons for future policy design and evaluation practice?

REGISTER HERE

VIEW PROGRAM

ABOUT Our Partners

The OECD Centre for Entrepreneurship, SMEs, Regions and Cities provides comparative statistics, analysis and capacity building for local and national actors to work together to unleash the potential of entrepreneurs and small and medium-sized enterprises, promote inclusive and sustainable regions and cities, boost local job creation, and support sound tourism policies.

For more information, contact Jonathan.Potter@oecd.org

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GuideToWomenPreneurs

Jan 7, 2023

A Guide to WomenPreneurs

How to Get the Funds You Need as a WomenPreneur

There are many ways for womenpreneurs to get a jump on funds to start or grow their businesses. Funding options include traditional bank loans, venture capital, angel investors, and more!

Finding out which funding option is right for you depends on your business goals and stage of development. It’s essential to research the costs associated with each type of funding and what conditions might be attached to your options. Here are some ideas on where to start when looking for money to begin your next business venture or help your current business grow!

The challenges womenpreneurs face when seeking funding.

Womenpreneurs often find it more difficult than their male counterparts to secure funding from investors. There are several reasons for this, including that women in business are less likely to be taken seriously by potential investors, and they’re typically asked to prove their business acumen and financial stability. Women must overcome this authority gap if they want to succeed in growing their businesses.

To overcome this gap, you’ll need to understand and be able to explain the ins and outs of not only your daily business operations but other businesses within your industry. Have answers in mind to questions such as:

How does your business make a profit?
How do your company and industry employees typically write and manage a budget?
What is your business strategy, and how do you choose based on your plan?

If you have brief answers to any of these questions that often come up, you’ll be able to make more people sit up and listen when it comes to finding funds to run your business.

How to find the right funding source for your business

There are several funding sources for female-owned businesses. The Small Business Administration (SBA) offers several loans and grants specifically designed for women entrepreneurs, including the Women’s Entrepreneurship Development Program Loan and the 8(a) Business Development Program. Other means of funding include venture capitalists, angel investors, or asking friends and family for help.

More traditional routes to finding funding options for female-run businesses involve expanding into more inclusive approval structures. This includes small business loans from many big-name banks and credit card companies that offer higher rewards and cash back if you use their card on purchases from women-owned small businesses.

Regardless of your funding option, it’s essential to research to find the right funding source that will meet your needs and fit your business plan accordingly. Weigh your options and decide whether you can afford to borrow money or need to start with grants or crowdfunding first.

What to do when your application is rejected

When your loan application is rejected, don’t give up! You can do many things to improve your chances of approval the next time.

Find opportunities to participate in organizations such as the International Council for Small Businesses (ICSB) and attend conferences where you can network with other womenpreneurs. By joining in with other like-minded business owners who know and experience the same struggles you face, you’ll find a meaningful support group. Often, you’ll find peers who have reached their business goals and want to invest in other women to help raise them to the same level of success!

Approach the friends, family, and fools (FFFs) in your network and see if they’re able and interested in investing in your business to help get you off the ground or through a difficult stage of growth. Don’t feel like you’ve failed if you have to take this approach! You’ll be among the 35-40% of startups and businesses that raise money similarly.

How to negotiate with potential investors

A few things to remember when negotiating with potential investors as a woman. First, be confident in what you’re offering, and make sure to set goals with realistic expectations. Be clear about what you need from the investor, and be prepared to answer any questions they may have. Most importantly, don’t be afraid to speak up for yourself – know your value and advocate for it!

Investors can be broken up into two groups: venture capitalists and angel investors. Going into a meeting with different investors will require different approaches. Here are two scenarios to keep in mind:

Venture Capitalists:

Often, a newer business looking to grow will seek additional help from venture capitalists. Show them how you’re managing your money. If they see you handling your finances well, they’ll see you as someone they can trust with their money in the form of investment. Return on investment (ROI) is your main focus here.

Angel Investors:

Startups often approach angel investors either right after or before opening their doors. In this case, showcase your team, the novelty of your business idea, and the potential traction your idea can generate. If they like your current energy and potential for growth, they’ll be more likely to invest in your venture.

Tips for creating a successful pitch deck

Going into an investor meeting can be nerve-wracking. If you’re worried about missing the mark when making a first impression, make sure to follow these four tips when putting together your pitch deck:

Make sure it’s visually appealing and easy to read. Use clear and concise language, and don’t overload the viewer with too much information at once.
Focus on telling a compelling story that showcases why your business is worth investing in.
Be clear about what problem you’re solving, how you’re doing it differently than others, and what kind of potential return investors can expect.
Always be prepared to answer questions from viewers of your deck! Anticipate common concerns and be ready to address them clearly and succinctly.

How to keep your business finances in order

Keeping your business finances in order is essential to ensure that your company remains successful. There are a few key things you can do to make sure this happens:

Make sure all expenses and income are documented and tracked correctly. This will help you understand how your company is performing financially over time.
Set aside money for unexpected costs or emergencies. It’s always important to be prepared for the worst-case scenario, even if it doesn’t happen often.
Make a habit of leaving yourself enough breathing room in the budget for unexpected minor expenses, so you don’t have to scramble for funds or rely on credit cards to carry you over from month to month.

Closing Thoughts

Womenpreneurs still face unique challenges when accessing capital and other financial support. This is especially true for women who operate businesses in traditionally male-dominated industries or sectors. To help level the playing field for womenpreneurs, we must continue working together to create policies and programs to support entrepreneurship among women!

Dr. Ayman El Tarabishy
President & CEO, ICSB
Deputy Chair, Department of Management, GW School of Business

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