Editorial

Citation

Ali, A.J. (2011), "Editorial", Competitiveness Review, Vol. 21 No. 2. https://doi.org/10.1108/cr.2011.34721baa.001

Editorial

Article Type: Intellectual entrepreneurs and emerging markets From: Competitiveness Review: An International Business Journal, Volume 21, Issue 2

Is it possible for emerging markets to leap forward without the active involvement of dynamic entrepreneurs? Countries like Brazil, India, Turkey, and many other emerging economies, have experienced rapid economic growth which, unlike China and Russia where the state assumes major function, has been attributed to creative deployment of resources by indigenous entrepreneurs. These entrepreneurs show imagination in organizing and deploying resources and in recognizing what has to be done to propel their respective countries from a state of backwardness and into the twenty-first century.

In emerging markets, the role of entrepreneurs is of historical significance. These individuals play a part that goes far beyond the economic domain by engaging in building or reinforcing state institutions and enhancing the capacity of civic organizations to sustain vitality in the face of adverse conditions. Indeed, the role of entrepreneurs is strategic in nature and acquires national and international value.

In Brazil, Indian, and Mexico, among other countries, entrepreneurs have contributed greatly to national development and world economic integration. Ratan Tata, the Chairman of the Tata Group, along with other Indian entrepreneurs, has transformed India into a formidable global economic actor. In South Africa, rising entrepreneurs like Lance Fanaroff, Yossi Hasson, and David Jacobson similarly to their counterparts in Mexico (e.g. Enrique Ramon Eisenring) and Columbia (e.g. Jose Fernando Velez) have improved market conditions and institutional vitality in their home markets.

These entrepreneurs are pioneers in their home markets. Their contribution is arguably similar to that of early entrepreneurs in the USA where Henry Ford, Andrew Carnegie, and Henry Plant, among others, were instrumental in setting the stage for economic growth and national economic integration. However, unlike the early pioneers in the USA, the entrepreneurs in the emerging markets have not been carefully studied and their creative engagement is not given proper coverage in the media and in intellectual outlets.

Recently, I visited Saudi Arabia; a country that is experiencing profound economic, and to a lesser degree, political transformation. Entrepreneurs are stepping up economic growth and cautiously attempting to steer the political situation toward openness and inclusiveness. Though traditional entrepreneurs have been in existence for a relatively long period of time in the Kingdom, intellectual entrepreneurs are a rising phenomena. This group includes individuals who are active in economic development and are engaged on the global stage defending complex political, environmental, and social issues that confront the Kingdom and the whole region.

One of the most dynamic intellectual entrepreneurs that I have met is Musallam Ali Musallam. Musallam completed his undergraduate and graduate studies in the USA and obtained his doctorate degree from Georgetown University. While he was a student, he managed part of his family business and built a network with influential intellectual, political, and business people around the globe. His father established a thriving conglomerate and Musallam served as a senior executive. Upon the death of the founder, his father, Musallam was confronted with contradictory interests and the demands of several half brothers and sisters, and he had to deal with the Islamic inheritance law where multiple members of the extended family, including a dying a grandmother, had claims on the business.

Musallam’s task was not an easy one and his priority was focused on how to save the business. He had to convince his half brothers and sisters, along with others, that it was in the interest of all members that the business be transformed into a jointstock company and it must be run by professional management. Through careful deliberation, the majority agreed to the proposition. A sound foundation was created to sustain the capacity of the company to evolve and grow.

During his role as managing director, president, and now a chairman of the board for the company, Musallam never overlooked his responsibility to his community, the country, and the region where he lives. He engaged in several global activities like serving as a member of the Council on Foreign Relations, New York, American Businessmen of Jeddah, and the World Economic Forum, among others. In his capacity as an active member of these organizations, he promotes business interests and political dialogue to address challenging questions and issues.

Recently, he created a business venture which focuses primarily on preserving traditional architecture and design and has layouts which are environmentally friendly and of cultural significance. Likewise, he diligently advocates for the rights of unfortunates, especially those who are victims of political disputes or wars. Those who talk to him get a sense that his concerns are not parochial and that safeguarding human dignity is central to his thinking and business conduct. The latter reminds me of Ted Turner who has tirelessly promoted issues essential for having a balanced approached to the relations between man and environment, individual and the state.

Certainly, the relations between the individual and state should be guided by enlightenment principles and concern for the continuity of civilization. This is possible only when people are exposed to the outside world and when reason becomes the basis for conduct and for judging the purpose of the state and business in light of their capacity to optimally serve their constituency and safeguard human dignity.

Should executives engage in intellectual endeavors and promote civility and idealism? Musallam appears to think so. For him, the Arab World and the entire Middle East is passing through a critical stage where the consequences could be very costly in terms of human suffering and destruction. He believes that there is no escape from the current vicious circle of violence except by relying on reason and discovery, dialogue, and positive engagement. These might be ideals, but in life ideals open the door for possibilities and possibilities lead to hope and purposeful conduct. The latter differentiates traditional entrepreneurs from intellectual ones and links the journey of business to societal goals.

Since emerging markets encounter chaotic economic and political conditions, their development and economic growth must be built on sound foundations. Intellectual entrepreneurs are a viable safety valve. Therefore, it is imperative that intellectual entrepreneurs are cultivated and their base is enlarged. Their existence is of historical, political, and economic significance.

Abbas J. Ali