Good afternoon to you. Before our next theme, which is the analysis of the environmental context, and even though I was not able to share the political context in the case of China-El Salvador commercial relations, I would like to share some additional and general thoughts about it.

The analysis of the political context of a specific entrepreneurship endeavor is key. Why?  Well, because we do not want to become political entrepreneurs.

The way our economies work: Each country has economic agents or parties or actors. Economic agents are mainly individuals, businesses (multinational, large local corporations and SMEs), social organizations and governments. Economic agents belong to industries. And nowadays, the way societies work, it happens that each economic agent has become a political entrepreneur.  It is very rare to find economic agents which are not political entrepreneurs.  Eleonora Escalante Strategy is not a political entrepreneur, in consequence, my company is one exception to the rule.

Let´s understand what is the meaning of the term “political entrepreneur”?

Political entrepreneurs can be:

1. Political activists (people who are involved directly in the field of politics and who are founders or are part of political projects, political parties or political groups. For example: In the US, we find two main political parties: the republicans and the democrats.
2. Other political actors (which are not necessarily politicians), who are looking to pursue their own political career interests by using popularity or influence. This would include leaders of political and social movements as well as military leaders whose policies can have an impact on political processes especially with regard to violent conflicts.
3. Economic agents or business owners who seek to gain profit through subsidies, protectionism, government contracts, or other such favorable arrangements with the government(s) through political influence (also known as a rent-seekers). The reason why economic agents support politicians or political parties is simple: they wish to gain profits for their own companies, once its respective political party is elected.

Once we understand the concept of political entrepreneurs, and if you are not a politician, but we are economic agents, it is imperative to try to not become political entrepreneurs. It is important to do the political context analysis for our entrepreneurship endeavors because we wish to avoid corruption or the people who are participating in corruption (at every level). If our new companies are clean, why do we want to make them dirty? We have to avoid corruption at all cost.

For our company, Eleonora Escalante Strategy, Political Entrepreneurship is non-ethical. Businesses can´t be political entrepreneurs, because if they do it, they are promoting corruption. After wars or conflicts or violence, corruption is the next enemy of democracies. Corruption is the real evil in our development race.

“The interplay of corruption and inequality also feeds populism. When traditional politicians fail to tackle corruption, people grow cynical. Increasingly, people are turning to populist leaders who promise to break the cycle of corruption and privilege. Yet this is likely to exacerbate – rather than resolve – the tensions that fed the populist surge in the first place” (Transparency International).

Do you want to find out what score is your country in terms of corruption: Visit the Corruption Perceptions Index 2017.

It is so important for all entrepreneurs in the world to understand the political context of your endeavors. Each of us, particularly those who believe in Jesus Christ, are demanded to try to stop corruption, and this must be done at the individual level first.

Entrepreneurs without money may be tempted to promote corruption. And they can become political entrepreneurs. Eleonora Escalante strategy advises to don´t become “political entrepreneurs”.

But what is corruption? Please read  Transparency International website. It is one of the experts’ entities who know about this topic with exquisite detail. Click here: https://www.transparency.org/what-is-corruption

In general, corruption is a form of dishonesty or criminal activity undertaken by a person or organization entrusted with a position of authority, often to acquire illicit benefit. Corruption may include many activities including:

• Bribery
• Embezzlement
• Traffic of influences
• Fraud or theft
• Small favors (petty corruption)
• Grand Corruption
• Systemic Corruption
• Weapons Trafficking
• Graft
• Extortion and Blackmail
• Influence Peddling
• Abuse of discretion
• Nepotism, Clientelism, and Favoritism
• Corporate Corruption (in the private sector)
• Price manipulation (collusion)
• And many more…

This is all for today. Wishing you a beautiful weekend. Don´t forget to go out with your family or friends. Enjoy the nature.  Life is precious. Thank you!

Source References used to write this article:

https://www.transparency.org/

Disclaimer: All the presentation slides shown on this blog are prepared by Eleonora Escalante MBA-MEng. Nevertheless, all the pictures or videos shown on this blog are not mine.  I do not own any of the lovely photos or images posted unless otherwise stated.

Published by eleonoraescalantestrategy

Corporate Strategy Artist, San Salvador, El Salvador View all posts by eleonoraescalantestrategy