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 Francis Gatare: Reconciling Through Public and Private Alliances April 20, 2008Francis Gatare (pictured left with SEP member and President of LBL Strategies) is a senior governmental official (Director General, Investment and Export Promotion Agency) who basically oversees business development for the country (i.e., he fast tracks investment opportunities for the county). On behalf of the government, his role is to find ways to create and attract new domestic and foreign businesses and foster relationships between the public and private sectors. As we were literally sitting down with him for Sunday lunch, Francis' first question was pointed and directed to me: "Can you explain to me fear in business decision-making?" I asked for some additional clarification, and he went on to explain that he is frustrated that there are a high number of small (1-2 person) businesses that have growth potential with owners who do not want to expand. He attributed their hesitation to fear. We talked about some basic psychological dimensions of why one might be hesitant to make changes to her or his business, and this was put against a cultural backdrop laden with real remnants of intense generalized fear. I also told him that some of our bright and talented I/O and business psychology students might have some specialized insights, and I promised that I would try to send him some additional information. (If anyone has any immediate insights, please post a comment, as I will likely see him again before I leave. Otherwise, expect me to solicit information from you when I get back!) In our discussion, Francis emphasized the Government of Rwanda's (GOR's) strong interest in developing the private entrepreneurial sector of Rwanda for economic development toward a primary goal of establishing sustainable peace and meaningful reconciliation. Running a little with this, we talked about the collective ways we, as a group, are exploring mentorship opportunities to develop emerging Rwandan entrepreneurs and the private sector. He was excited to hear about the compatibility between our interests and the GOR and how we could help develop the people for whom he seeks business opportunities. As lunch was coming to an end, however, we encountered a somewhat unusual turn of events. Francis asked for one of us to mentor HIM, and we are going to take him up on this very flattering offer to help develop this very influential member of the GOR through combined resources of the SEP team under the leadership of Mike Poulos, Senior Partner of DLA Piper law firm.
Comments:
Dr. Rabe,
You mentioned my first thought, which is a generalized culture of fear, given recent political and social events. My second thought is that there is a big difference between a business owner and an entrepeneur, and it sounds like these two very different types of individuals are being put into the same group. A business owner is most likely out to meet the goals of providing for their family and immediate future. Respect of the community is probably a large underlying goal. In contrast to that, an entrepeneur is out for limitless success and fortune. This is more of a strategic, planful approach that requires certain personality traits, namely, optimism, drive and willingness to take risk. I think the Chicago School is a very good example of entrepeneuralism in education. So it seems that Frances may have a group of business leaders who are not interested, or may not have the underlying traits and skills to be entrepeneurs. What may be more beneficial is finding and selecting people who do show promise in this area. I hope these initial thoughts are helpful and hopefully others can come up with some insight I might have missed. Dr. Thompson
Dr. Rabe
Mr. Gatare is observing a trait common to all of us, including entepreneurs. One of the foundation premises of behavioral economics, often referred to as the differential slope hypothesis, is that people find avoiding losses more salient than gathering gains. Think of of why you buy insurance. This fear also be related to the culture of fear. Or, it may associated with the nature of the entrepreneurial process. In Stage 1 firms, survival is the focusing dilemma. Given that condition, with little slack, it might even be prudent for entrepreneurs to resist change or growth in favor of stability. This effect may be resolved as firms mature. Or, perhaps, by the incentives and sanctions that a government can use to promote business, economic, and community development. The critical point is the right balance with the right frame at the right time. That coordination takes some skill. RW Ackley
Historian Joseph Ellis, in describing a young America, wrote that "before we were a nation of laws, we were a nation of men." His point: there is simply no substitute for a culture of trust in dispelling fear and getting people--and men in particular--to work together toward a common goal.
The irony is, as long as businesses remain small, and owners' livelihoods are tied up with the success of the business, those business owners will be doubly reluctant to grow and share the spoils of their hard work... what if that employee turns out to be a thief? Or an ambitious usurper? These fears will be layered atop prevailing cultural norms. In this case, believe it or not, there is a solution, and it's relatively simple in concept, and everyone in Rwanda is familiar with it: the business owners in question need to have a common enemy... nothing rallies men to come together like a big challenge from the outside. And I'm being quite literal in my language--a common goal is not enough. It has to be big enough to leave a pit in people's stomach, and has to mean so much to them that they are more afraid of failure than of each other, and no goal accomplishes these differences as effectively as a common enemy. Once upon a time, this psychological "trick" tore the country apart... but under the right leadership, it could be used once more to bring people together. Now *that* would be special!
I wanted to follow up on Dr. Ackley’s notable comment about the stage of the firm. Growth could lead to the demise of a company, if not controlled properly. A young company may not have the systems in place or the financial stability to support growth. Thus, a fear of growth, or perhaps a better term might be a 'cautious approach' to growth, may be warranted. I agree with Dr. Ackley in that experience, external resources, or governmental support might assist companies that do aspire to grow.
Another perspective I would like offer is that the owners of these businesses may not 'fear' growth, rather they just do not 'want' it. In other words, these individuals are making an active choice not to grow. These individuals are satisfied with their business models and have no reason to seek out more. There is no desire to grow, with these individuals, because their businesses bring them gratification and can provide the challenge and lifestyle that they seek. There are those who will always want more, and then those that are content once their needs and wants are met. This speaks to the point raised by Dr. Thompson about personality types. As she noted, there are different underlying traits and needs of an entrepreneur versus a business owner. While both types of individuals will likely experience fear, the willingness to face fear and take risks is typically inherent to the entrepreneur’s personality. Ilianna H. Kwaske, Ph.D.
Dr. Rabe,
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A culture of fear is difficult, but not impossible, to change. Fear is a paralzying emotion and creates passive follwers instead of empowered leaders. The mind set of passive follwers is compliance and business as usual. A shift from passive followers or "walking wounded" to proactive business leaders who take initiative and are optimistic about the future can be overcome by mentoring and leading by example. I am proud to know that students and faculty from The Chicago School will be helping the buisness leaders of Rwanda move toward proactive, optimistic leadership styles. << Home  Francis Gatare: Reconciling Through Public and Private Alliances  
Deane M. RabeAssociate Vice President of Engagement and Student Affairsdrabe@thechicagoschool.edu Dr. Rabe, Associate Vice President of Engagement & Student Affairs, has a breadth of administrative experience. Prior to entering higher education, he worked clinically with children, adolescents, adults, and older adults in traditional outpatient, intensive outpatient, inpatient, forensic, and nursing home settings from an integrative psychoanalytic and systems perspective. His professional interests include social entrepreneurship, psychological assessment, forensic evaluation, supervision and training, sex therapy, and corporate consultation. |
