The Shift Toward Humane Entrepreneurship
In championing people first, humane entrepreneurship inhabits a unique role in the business world as inherently human-centered. In light of the pandemic, the necessity of humane entrepreneurial practices has become more apparent than ever before. As we contended with COVID-19 head-on, many MSMEs saw governments responding swiftly in support. However, while we seek prosperity in our post-pandemic society, we must address three essential questions:
* Will this government support continue?
* How can MSMEs recover in the aftermath of COVID-19?
* How can we actively support MSMEs, not only from a business standpoint but on a human level?
The Research Behind the Model
The journey towards humane entrepreneurship was initiated five years ago by Drs. Ayman El Tarabishy and Ki-Chan Kim. Research presented at the ICSB Human Entrepreneurship Conference demonstrated that humane companies, or "Firms of Endearment," outperformed the overall market by a nine-to-one ratio over ten years. By investing in human capital, these firms create High-Performance Work Systems (HPWS).
The Recipe for Success
Humane entrepreneurship follows a seven-element process:
- Empathy
- Empowerment
- Enablement
- Proactiveness
- Risk-taking
- Innovativeness
- Performance
Professor Kim argues that the foundation is a CEO with a clear mission. By hiring people who share a philosophical belief in improving society, leaders create a culture where employees are physically and mentally engaged.
Defining the Enterprise
Citing Colin Mayer, the former dean of Said Business School at Oxford University, we understand that "the purpose of a business is not to produce profits" and that an enterprise is "the most productive place to solve problems on the planet." Ultimately, a humane company challenges the status quo, and a humane entrepreneur takes action to make their vision for a better world a reality.