B Corps

Introduction

Entrepreneurship research and practice has received a great deal of attention in the past decade. Due to the role that entrepreneurial activities can play in tackling grand challenges, the predominant focus of such studies has been on the entrepreneurial journey, the network, the impact, the process, as well as the cultivation of ‘the entrepreneur’. However, as studies in entrepreneurship have grown, maintaining the
balance between objective and subjective implications have proven to be challenging.

To this end, there has been an increase in calls for ‘contextualizing’ entrepreneurship research, cutting across levels of analysis in order to be able to provide relevant suggestions for research and practice. In an attempt to address this call, this book provides the first theoretical and empirical collection of studies that are embedded in and borne out of the context of (southern) Africa. The continent is home to seven out of ten fastest growing economies in the world, and from a business perspective, it is considered by Alex Liu, chairman of A.T Kearney “a large-scale start-up”. Yet, little is known about the state of entrepreneurial activities that aim to shape the continent’s future. This book delves into the micro- and macro-level foundations of
entrepreneurial activities across southern Africa, providing theoretical frameworks that take into consideration the entrepreneurial ecosystem in the continent, as well as the formal and informal economy that contribute to the growth and development of its countries.

This book is divided into three sections. The first section sets the context for entrepreneurship, with considerations given to its embeddedness in the broader environment. Examining entrepreneurship and entrepreneuring on a systems-level, this section begins with a chapter that discusses the role of the fourth industrial revolution and its influence on the entrepreneurial state in Africa, and given that, offers an ‘ecosystem’ perspective for the examination of entrepreneurship. Having
set the scene for the complexities that 4IR impart, Chapter two offers a path towards managing complex systems through the use of networks consisting of simple software agents, which uses probabilistic reasoning to adapt to their environments. Chapter three examines the contextual challenges facing social enterprises in Africa, such as the lack of data, cultural heterogeneity, fragmented ecosystems, infrastructure and
financing, and offers recommendations to various stakeholders for overcoming these challenges in order to scale social impact. The fourth chapter in this section provides a model for the utilization of networks, and in doing so, it sheds light on the economic benefits of migration capital and how development programmes such as the Caravan
Programme can leverage such capital to provide economic growth for migrants’ host countries. Undertaking a multi-case approach, Chapter five encourages reframing strategies in order to mobilize values and action for the creation of a ‘regional bio-energy niche’. This chapter calls for attention to the taken-for-granted socio-cognitive frames related to traditional uses of energy. It provides framing strategies for actors
operating in this field. Within the education sphere, Chapter six explores how innovative and context-appropriate, video-led case studies can widen and strengthen the impact of curriculum design and delivery across education by restoring the agency of voice. It argues that in order for educational institutions to widen the impact of values-led enterprises, they need to democratise their curriculum by allowing all voices to come
through. This chapter offers innovative practices that facilitate this process.

The second section is dedicated to the role of organizational-level activities in entrepreneurial developments. Chapter seven examines the role of B-Corporations on the African continent and discusses the activities that these organizations engage in, in order to provide impact for the environment they are operating in. Notwithstanding their limitations, recommendations are made for the development of B-Corporations on the continent. Chapter eight explores the ways in which we can undertake collaborative methods to grow a venture, particularly under resource-constrained environments. It argues that it is, in fact, collaboration and partnering, and not competition that fosters growth, and provides a step-by-step description of how this process can be implemented. Continuing on the path of new venture support, Chapter nine illustrates the ‘lessons learnt’ in the process of supporting
early-stage entrepreneurs during their incubation journey. This study is built on primary findings triangulated from founders, funders, industry experts and incubation programme partners. Chapter 10 argues for greater congruency between what Business Schools teach and do, and their African cultural contexts, as well as the importance of reciprocal networks and entrepreneurial ecosystems between nations inside and outside of the African context. Chapter 11 acknowledges the importance
of psychological safety and respect for the human dimension in social enterprises.

The hybrid orientation for social enterprises, together with its commitment to social value creation, are highlighted – by identifying such practices and their challenges in the manufacturing sector. Supporting entrepreneurs in the venture creation process is further illustrated in Chapter 12 by a study conducted in a business accelerator
located in the disadvantaged area of Philippi Village in the Western Cape province of South Africa.

The third and final section delves into the micro-level foundations of entrepreneurial activities, deriving from both empirical and theoretical studies. Given the centrality of the entrepreneur’s role in venture creation, it is not surprising that much attention is given to the ‘entrepreneur’. Chapter 13, undertaking a mixed-method study in South Africa, examines entrepreneurial propensity and provides an index based on intrinsic
and extrinsic factors that can be used to assess whether an entrepreneurial tendency will result in venture creation. In line with entrepreneurial propensity, Chapter 14 provides evidence for the relationship between the entrepreneur’s locus of control and
their happiness regarding entrepreneurial activities. It therefore argues that internality is linked to entrepreneurship and suggests that internals perform more efficiently in environments that allow control over their actions. It thus offers a ‘best-fit’ approach based on the entrepreneur’s locus of control. Considering that the entrepreneur needs to relate to, and build relationships with, various stakeholders, Chapter 15 draws our
attention to the importance of empathy and, in particular, self-empathy in fostering such relationships. Given that the entrepreneur needs to firstly rely on him/herself, the chapter offers the skillsets required for self-care. It does so by walking us through a case of an entrepreneur undergoing self-empathy coaching sessions, and providing recommendations for future practice. Building on the importance of coaching, Chapter 16 provides a qualitative study of how executive coaching becomes an
entrepreneurial venture.

From the perspective of the entrepreneur, it reveals the important components of building an executive coaching venture, namely networks, architecture, value proposition and financial support. Thus, providing the factors that contribute to a successful coaching business model. Chapter 17, which aims to provide a theoretical framework for micro-entrepreneurs and their start-up teams, focuses on the impact of emotions and the entrepreneurs’ disposition to trust in the early stages
of venture creation. Using the lens of ‘person-in-situation perspective’, the chapter draws from individual-level factors such as personality traits, emotions, entrepreneurial mindset, propensity to trust, and assessment of others’ trustworthiness in order to provide a framework that takes into account the importance of entrepreneurial networks on venture creation, thus, providing a point of departure for micro-entrepreneurs and
their start-up teams. Chapter 18 looks at the challenges in ensuring collaboration in the racially segregated spatial arrangements of South Africa, even when we know that diversity and inclusion are enablers of entrepreneurial ventures. The chapter also highlights the inadequacy of traditional training and education in preparing modern-day
entrepreneurs, and calls for greater permeability of a myriad of traditional boundaries in the pursuit of solutions for social challenges. This section concludes with a microlevel lens on the personal journey of an immigrant entrepreneur in Cape Town. Through narratology, Chapter 19 explores the resilience, efficacy and achievement of African refugee entrepreneurs in South Africa and provides a unique perspective on not only factors that lead to success, but also the challenges and obstacles that are faced in the venture creation and growth process.

The book offers interesting and rich perspectives on parts of the African
entrepreneurial ecosystem, through a number of lenses, from both local Africans as well as international researchers and practitioners who are passionate about the future of Africa. Many of the perspectives offered and insights from actual praxis on the continent can prove instructive to other parts of the world, particularly the developing and emerging economies around the globe.

Resumen Cuando parecía que los momentos más difíciles de la última gran recesión quedaban atrás, en 2020 la COVID-19 vuelve a hacer tambalear un sistema globalizado. Fenómenos como los ciberataques a gran escala, las crisis financieras, el cambio climático o las pandemias, que emergen cada vez a una mayor velocidad, han pasado a ser riesgos sistémicos endémicos. Es tal la interconexión que la transformación del modelo de desarrollo actual parece ineludible. El renovado paradigma de lo común, conformado por iniciativas cooperativas (auto) transformativas, y su cristalización en las Empresas B, que van más allá del objetivo de generar ganancias económicas procurando maximizar su impacto positivo a través de una gobernanza y liderazgo innovadores, parecen posibilitar una mayor sostenibilidad ambiental y social y una mayor justicia, solidaridad y autonomía humana. Mediante una revisión bibliográfica para la identificación de las singulares características de los líderes de las Empresas B y sus modos de gobierno abiertos y cooperativos, este artículo contribuye a una comprensión de la contribución que el paradigma de lo común realiza a las problemáticas sociales que desde lo local han adquirido una escala global. Palabras clave: liderazgo; empresas b; transformación; innovación Abstract Just when it seemed that the most difficult moments of the last great recession were behind us, 2020's COVID-19 shakes up a globalized system once again. Phenomena such as large-scale cyber-attacks, financial crises, climate change or pandemics, which are emerging at an ever-increasing speed, have become endemic systemic risks. The interconnectedness even makes the transformation of the current development model seem inescapable. The renewed commons paradigm, made up of (self) transformative cooperative initiatives, and its crystallization in B corporations which go beyond the objective of generating economic profits, seeking to maximize their positive impact through innovative governance and leadership, seem to make possible greater environmental and social sustainability, and greater human justice, solidarity and autonomy. Through a bibliographic review to identify the unique characteristics of B-corporation leaders and their open and cooperative modes of governance, this article promotes deeper understanding of how the commons paradigm contributes to social problems that have transitioned from a local to a global scale.