International Business -Week 3 Discussion Responses #2

Cassandra’s Post

From a resource-based view, what are the resources and capabilities that post-COVID entrepreneurs need in order to succeed?

Looking at the rise of entrepreneurs from a resourced-based view I believe the resources and capabilities that the post-COVID entrepreneurs would need is investments, to be flexible, mobile, have a strong IT and virtual presence, and a minimal footprint. It could be teleworkers, reliable vehicles, contracts with specific companies that are deemed essential, and a strong business plan to gain the venture capital investors. Due to the change in consumer demand the startups are centralizing around logistics, delivery, and IT industries (Altun, 2021).

From an institution-based view, what changes are needed in the institutional framework in order to foster more diverse and more inclusive entrepreneurship?

The institutional-based view I have of the framework is that it needs to change in the acceptance and investment to minority and female run companies. Venture capital investments pre covid were going more to Silicon Valley type ventures, which is not helpful for society as a whole if the framework is set up to invest in smaller startups, like how the TV show Shark Tank does it. When I think about it, UBER was featured on Shark Tank and now look at the company. If the system was more inviting to the minority category, I feel that it would foster a more diverse and inclusive group of entrepreneurs. As the text says, “An ugly Pandemic has created a once-in -a-century chance to loosen old structures and recharge the global economy (Peng, 2023).”

ON ETHICS: As a venture capitalist, should you stick with the traditional (Color blind and gender-neutral) economic criteria or use race, gender, and other diversity and inclusivity dimensions as part of the criteria when evaluating funding proposals?

If I were a venture capitalist I would 100% break the traditional ways, diversity and inclusion are what make things different and grow. To continue to invest in these large companies that buy out or take over each other, does not promote growth. I would rather diversify and hedge my bets on smaller diverse companies that have new ideas, products, or ways of doing things then, the same old business plan. In a study it was found that companies with a more diverse work force have a 19%higher revenue due to innovation (Beyond Good Intentions: Why Diversity Is Vital In Investment Decisions, 2023). For the economic criteria, race, gender, and other diverse and inclusive dimensions would be a part of the criteria when evaluating funding proposals. I would want to invest in a company based off its business plan, who the owner is, the proposed company’s culture, and profit margins.

References Altun, Y. B. (2021, April 09). Pandemic Fuels Global Growth Of Entrepreneurship And Startup Frenzy. Retrieved from Forbes:

https://www.forbes.com/sites/forbestechcouncil/2021/04/09/pandemic-fuels-global- growth-of-entrepreneurship-and-startup-frenzy/?sh=237ded917308

Beyond Good Intentions: Why Diversity Is Vital In Investment Decisions. (2023). Retrieved from AON: https://www.aon.com/unitedkingdom/insights/why-diversity-is-vital-in- investment-decisions.jsp

Peng, M. (2023). Global business (5th ed.). Cengage Learning.

Summer’s Post

• From a resource-based view, what are the resources and capabilities that post-COVID entrepreneurs need in order to succeed?

While the tech titans of today are reminiscent of the coal or railroad barons of yesterday, smaller start-ups have always cropped up as offshoots, or even eventually get bought up by the larger companies. One of the things right after COVID that even massive companies experienced were employee empowerment, requesting remote or hybrid working conditions or even just quietly quitting, because we should be working to live, not living to work. To succeed in today’s fluid environment, new businesses need a good idea, innovation, and gumption. “The best innovations are created in response to specific, urgent, and sizeable problems” (Schroeder, 2020). In addition to these capabilities, additional resources could include start-up capital via loans, grants or savings, a network of mentors, and comfort with technology to bring awareness to your products or services.

• From an institution-based view, what changes are needed in the institutional framework in order to foster more diverse and more inclusive entrepreneurship?

The institutional framework should be altered to be more involved in community outreach projects that help lift up and support diverse and inclusive start-ups. "Institutions that facilitate entrepreneurship development—both formal and informal— are important” (Peng, 2023, pg. 327). Since technology is no longer an option but a core need, providing more available digital resources to entrepreneurs is critical to the success of a small business. Streamlining the funding process, especially in less economically stable areas, should be an easier process, especially because many post- pandemic startups are digital and have more diverse needs than pre-pandemic conditions. “Most companies opened with one to five employees and don’t currently have a brick-and-mortar location; without payroll and rent expenses, founders are able to invest their startup money in product development, marketing, and other essential costs instead” (Flaum, 2023).

• ON ETHICS: As a venture capitalist, should you stick with the traditional (Color blind and gender-neutral) economic criteria or use race, gender, and other diversity and inclusivity dimensions as part of the criteria when evaluating funding proposals?

Diversity and inclusion should always be taken into consideration in funding proposals by venture capitalists looking to invest. “Large institutional investors are the lifeblood of venture capital, and they can and should leverage their outsized resources and unique position to hold venture capital funds accountable for addressing race and gender gaps in their investment portfolios” (Lang & Van Lee, 2020). While the traditional way could be argued that they were bringing fairness to the playing field, it often tends to not offer funding to entrepreneurs who are looking to resolve a specific gap in their neighborhood or environment that the investors have no insight into, even though there is a market for it. “The percentage of venture capital dollars going to women-founded companies has barely budged since 2012, and the numbers are even worse for Black and Latinx founders — only 1% of VC-backed founders are Black, and less than 2% are Latinx” (Lang & Van Lee, 2020). This seems incredibly short-sighted, even from the perspective of an investing novice.

Flaum, G. (2023). How the Pandemic Inspired a New Generation of Entrepreneurs. Salesforce. Retrieved from https://www.salesforce.com/resources/guides/pandemic- new-entrepreneurs/Links to an external site. . Lang, I., & Van Lee, R. (2020, August 27). Institutional Investors Must Help Close the Race and Gender Gaps in Venture Capital. Harvard Business Review. Retrieved from https://hbr.org/2020/08/institutional-investors-must-help-close-the-race-and- gender-gaps-in-venture-capitalLinks to an external site. .

Peng, M. W. (2023). Global business (5th ed.). Cengage Learning. Schroeder, D. (2020, July 2). Turn Your Covid-19 Solution into a Viable Business. Harvard Business Review. Retrieved from https://hbr.org/2020/07/turn-your-covid-19-solution- into-a-viable-businessLinks to an external site. .