When your columnist studied economics in the early 1970s, enterprise was not a factor of production. Only land, labour and capital were. Since then, the economics profession has come to recognise enterprise as a value-generator for the economy.
With their business acumen and innovative products, entrepreneurs add value to people's welfare through job creation and enjoyment of life.
Take the case of a young couple reported recently in the press. Ten years ago, they gave up well-paying jobs to venture into manufacturing and selling artisanal ice-cream. With much labour and risk, and despite the pandemic, they grew their business into the largest homegrown ice-cream chain in Malaysia.
They can now savour the fruits of their toil as they sell two-thirds of their business to a big corporation for nearly RM84 million.
Their case illustrates what young people can achieve in life, and how they can benefit society when they are supported and empowered by society itself.
Here are five strategies to boost such entrepreneurial behaviour.
FIRST, there is the critical role of the government in promoting entrepreneurship. This role includes formulating policies that foster research and innovation, infrastructure, especially digital, and access to capital.
A recent World Bank report commends the government for improving access to finance for start-ups through government-sponsored venture capital, peer-to-peer financing and equity crowdfunding.
The RM1.4 billion Dana Penjana fund also helps in growing start-ups. But the level of venture-capital activities is still low compared with Malaysia's economic development.
There is, therefore, space for greater government financing, especially in the early stages of start-ups.
SECOND, as our story of the young couple illustrates, the private sector can support entrepreneurship by investing in and partnering with start-ups. Such synergy can help both parties grow and succeed.
THIRD, with government-linked companies taking over technical and vocational education training, the 2023 Budget infuses entrepreneurialism into the 1,000-odd TVET institutions.
That should create a renewed focus on TVET to help budding entrepreneurs turn their ideas into profitable ventures. That will empower the 10 per cent of unemployed youths to strike out on their own.
FOURTH, society, too, has a role to play in empowering entrepreneurship.
Harvard management guru Michael Porter, in his 2008 book On Competition, said domestic demand and its rigour in ensuring quality innovation can ensure the survival of an enterprising firm.
Who knows, with a critical mass of local demand, the start-up might even trigger a world-wide trend or demand.
FIFTH, beyond the ecosystem, much will rest on the aspiring entrepreneur. He must be bold in risk-taking and creative in problem-solving.
As Albert Einstein said: "We can't solve problems by using the same kind of thinking we used when we created them."
An incremental approach to risk and innovation may provide creature comforts in one's lifetime. However, only the disruptive variety would provide for future generations.
Victor Hugo, the French writer of Les Misérables fame, once said: "Dream no small dreams. They have no power to stir the hearts of men."
To be radical in innovation, an entrepreneur must find solutions to issues confronting society.
Jack Ma, a Chinese billionaire and entrepreneur, did not start out to be rich. Rather, he and his team were purpose-driven. They wanted to serve society and businesses by capitalising on the Internet for e-commerce.
Relatedly, David McCourt in his 2019 book, Total Rethink: Why Entrepreneurs Should Act Like Revolutionaries, believes that an entrepreneur should be inclusive in problem-solving.
McCourt highlights this inclusiveness by comparing the high-speed rail system to that of some parts of India, where the poor can get a cheap, if not free, ride hanging on to the handlebars at the entrance or squatting atop the coaches.
However, with sleek high-speed trains making inroads, the poor can only watch them whizzing by.
As such, "we need to dream big, but we also need to dream smart".
The writer is AIMST University vice-chancellor
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times