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Breaking the Stranglehold on Enterprise

May 9, 2011

For a few years now I seem to have been living in Groundhog Day.

Not everyday, but enough to be disconcerting.

I will be chatting with an enterprise professional, perhaps a lecturer in a University, an enterprise coach in a ‘deprived’ community, a start-up business adviser or a bureaucrat managing an enterprise project. In our conversations about enterprise we will recognise how it is not all about business. How enterprise can be expressed in a seemingly infinite number of ways.

Sure, for a significant and important minority, it is about commercial endeavour.  Business, profit, and social impact in some combination. In order to express their enterprising soul a minority have to start a business.

But for the majority being enterprising, being proactive in pursuit of a better future, does not mean starting up a business. It may mean making a phone call, having a conversation, calling a meeting or writing a letter. Taking some action that increases agency and power in pursuing a preferred future. It may be taking the opportunity to reflect on ‘The direction in which progress lies’, or ‘What are the next steps that I can take to make progress?’ or ‘What options have I got?’

We will reflect on how some of the most enterprising people we know may work in the Council, or the University, or organise festivals and campaigns in the community. That the enterprising soul finds its expressions in many forms and not just in entrepreneurship.

We will agree that the real point of leverage in our communities lies not in providing start-up advice with those who are already minded to start a business, although of course this IS important. The real leverage lies in helping more people to establish the direction in which progress lies for them and their loved ones and helping them to plan and execute actions designed to move them in that direction.

If we can significantly increase the stock of enterprising people then, as sure as eggs is eggs, we will also increase the stock of entrepreneurial people. And we will not lose so many who are completely turned off by enterprise because of the Gordon Gecko or Victorian perceptions of enterprise nurtured by the reality TV shows and newspaper headlines.

We will also increase the survival rate of new businesses as people make natural progress into entrepreneurship instead of being persuaded to start a business (‘all you need is the idea and the determination to succeed’) when they have not yet gained the real skills or capital that they will need to succeed.

In our conversations we will agree on these things. And then almost invariably they will head off to run another course on ‘Marketing and Sales’ or ‘Business Planning’ or to look at monitoring returns that count bums on seats and business start-up rates. If ever there was an industry that needed to innovate and re-invent itself and its role in modern Britain it is the enterprise industry. If we really want to build a much more enterprising Britain then we need to break the stranglehold that the business start-up industry has on enterprise policy.

Now of course there are a lot of people who like things the just the way that they are.  There are a whole army of ‘enterprise professionals’ out there with ‘start up workshops’, business planning sessions and assorted ‘enterprise = business’ paraphernalia all telling the policy makers that ‘This is the way’.

Yet in decades of trying to increase the business start-up rates things have not changed significantly. Indeed according to Global Entrepreneurship Monitor in the last decade the ‘nascent entrepreneur rate’ (the percentage of 16-64 year olds actively involved in setting up a business in the UK) has dropped from 3.3% in 2001 to 3.1% in 2010.  And this in spite of enterprise and entrepreneurship climbing the policy agenda and attracting significant investment.

Time for the community to reclaim the enterprise agenda from the suits perhaps?

This might be just one of the ideas we can explore at Enterprising Communities: The Big Conversation in Leeds on May 19th.

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2 Comments
  1. David Gray permalink

    Might we (people who might be trying to support the creation of new [social] enterprises) therefore seek out enterprising people in their communities as a source of future entrepreneurs and focus our support on them?

    • I think this is the most potent strategy of all in community development. Find people who want to do something and organise ‘the community’ to help them do it. Nurture them, develop them, build their power and potential. Build social capital and a social process that does this continually and consistently without favour. Help the community to celebrate successes and to recognise what CAN be done and the power of collaboration and community in empowering people.
      That is very much my preferred strategy for community development!

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