Dr. John Psarouthakis, Executive Editor, The Business Thinker; Founder and former CEO JPIndustries, Inc., a Fortune 500 industrial corporation. CV Click here
Technology-based new entrepreneurial enterprises have become
a major force for economic growth and development as we move further into the 21st century. However, these enterprises, we have learned over the past three decades or so, differ significantly from the entrepreneurial cultures and activities of the past. They only loosely approximate Adam Smith’s model of economic activity.
For one, there will be a strong link to answers in research and technology by small companies that have heretofore been the province of major companies. As our total knowledge base and technology base grows, there will be increasing opportunities for niche exploitation, which only a small company can grasp. However, to do so, these new entrepreneurs will be increasingly managed, operated, and inhabited by individuals with degrees similar to my own.
Because of the internationalization of markets, as well as the booming advances in telecommunications technology, the “maneuvering space” of the new entrepreneurial companies will be significantly expanded. It will be possible for a small company to successfully engage in business on a worldwide basis, and not be captive to local and regional markets, assuming that regulations to not block the developing opportunities. There will be an increase in use of partnerships and alliances between small companies as a way of entry to new markets, as well as for exploring technological trajectories. All of this, of course, will be fueled by the rapid turnover of products, decreased product life-cycles, and the ever-discriminating taste of the billion-person advanced market.
It is also relatively clear that this new sub-culture of technology-driven new enterprise has a set of roles, values, and behaviors that are incumbent for us to understand. And there are a few places in the world where these new entrepreneur-realistic sub-cultures flourish. One for example, is of course, the Silicon Valley area of northern California. Others are found in certain parts of northern Italy, Western Europe, and elsewhere. An important word to the wise is to learn how to do this well, in order that this can become the way in which societies can grow and flourish