Starting with the history
How did the developed countries get there?
Looking into the beginning of the Industrial Revolution, we must look into Britain, Germany, and Switzerland, and over time many others followed. But what was the driver and what made it work? In history books, we read a lot about natural resources like coal, iron, and so forth but there were countries with far more of those resources. Then we read about education – which is a far more important aspect but interestingly enough, most of the ingenious ideas and the realization of those ideas did not require any special education. Moreover the top educated people believed in things that have been created and proofed hundreds of times that things worked. Yet this was not true for the steam engine, nor for the diesel engine, not for cranes and not for steel ships let alone airplanes and so forth. In some cases history tries to make us believe war or politics is one driver but nobody can prove that this is true.
Now, looking into how Carl Benz developed the first Automobile, it becomes apparent that it was a bit of accidental ideas, inspiration, a bit of free time at hand and the support of friends and family. Most others found it stupid or dangerous, or meaningless, and so forth. But continuous effort and an amazing energy to make it work was finally the main necessity to create the first automobile that was driven by his wife to friends in order to demonstrate it worked.
The pattern of Carl Benz’ development is also the pattern one way or the other of Robert Bosch, Werner v. Siemens, Friedrich Krupp in Germany, Alfred Escher, Robert Schindler, Henri Nestle and much later Tim Berners-Lee in Switzerland, Much later when Silicon Valley emerged it was William Shockley, Robert Noyce, Gordon Moor und later Steve Jobs that laid the foundation for yet another Industry Leap in the US. Equally interesting is to look at Sooth Korea and the sudden rise of their economy which where mainly driven by Lee Byung-Chul of Samsung, Koo In-Hwoi of LG and Chung Ju-Yung of Hyunday.
All developed economies have been built by entrepreneurs, taking risks and creating what seamed to be impossible.
In other words, globally we experienced several industrial revolutions in different countries at different times and the latest and most substantial one in China.
In other words
An Industrial Revolution is NOT a singular event that happened in the 1800’s and those who did not participate are out. However, many countries who create a industrial revolution back then and got more and more controlled through governmental rules and structures, also began to prevented other countries to rise. In particular those who had resources the industrialized nations needed and wanted them cheap. Even though colonialism was not evoque anymore, a silent “Neo colonialism” emerged.
What went wrong?
Lack of creativity, fierce competition, increased pressure from investors and many other things led to a significant loss of innovation power and rise of fast and dirty business practices most of the ordinary consumer had no idea about. Today the “West” operates in a way that is simply speaking inacceptable – not only for the the countries who are exploited but also the population that has to live with that inacceptable practice.
We need to support all nations on their way to their economic independence so humanity can advance as a whole.
Future of countries
Entrepreneurship
You have an idea and you are excited about it. Often times young entrepreneurs would like to get a validation from some experienced entrepreneurs or investors. Validating your idea is a great first move. But instead of talking to other entrepreneurs or investors – talk to 23 potential customers. Do that before you even invest time and resources in building prototypes.
CHECKLIST
- We have approximately 500,000 registered companies globally with 250+ employees. Each of them were founded by one or two, maybe 3 entrepreneurs. That means roughly 0.007% of the global population. How many do you have and how many more would you need?
- Germany’s 80 Million population has roughly 12,000 businesses that employ more than 250 people each. All of them are or had been somewhat innovative in order to grow that far.
In other words 0.00015 entrepreneurs with larger companies off the entire population. How many do you have.
Become a country that invites entrepreneurs from all over the world.
Investments
Entrepreneurs will need significant investments to grow and scale their company and reach a size that is possible good for an IPO in your country. The IPO in your country is essential not only to keep the companies that you have nurtured but also to allow the non entrepreneurial part of your society to gain wealth from the future growth of those companies. Wealth development from investment and wealth development from entrepreneurship represent on average 95% of a country’s wealth. Otherwise wealth distribution gets out of balance and make it less attractive to stay in the country.
CHECKLIST
- Do you have the necessary incentives to attract investors inside your society to support entrepreneurship and balance wealth distribution?
- Do you have the necessary tax and legal advantages for wealthy entrepreneurs to stay und invest in other young entrepreneurs? If it is too complicated you loose either entrepreneurs or investors and either one is the end of your innovative nation.
Become a country where local investors see an advantage in investing in their own country.
Administration
Today it should not take more than an online registration page a fee to be paid by credit card to start a company. Companies under 250,000 in revenue should be exempt from any tax and legal overhead. Companies who reinvest their meager profits should be tax exempt. Hiring teams and letting them go if necessary should be very simple. Providing teammates with stock options should be a simple and tax-free exercise while they keep the stocks and only require tax when they actually sell them with a profit. Business administration varies widely from country to country – those who make it very easy win the best talents for others only those who cant find access to those nations will look for less attractive alternatives.
CHECKLIST
- Do you have one of the easiest possible online company registration and taxation system in the world?
- Do you have a simple and easy to understand administration infrastructure (ideally all in English) so that people would love to move rather than feel like refugees?
Become a country where administration for doing business. transactions and legal work is just simple and easy.
Political Involvement and Future of countries
Every government may have a tendency to help everybody to do the right things. But history has clearly shown that entrepreneurs unfold their maximum talents when they are let alone and develop what a future market is eager to buy, use or consume. Therefor, governments quickly focus on protecting their consumer but that is mostly driven be the industry that fears to be disrupted by the new products or services. There are countless examples how this goes totally wrong. A free market consists of free consumers who know what they want and most of them are conservative and see what other want – there is absolutely no need to protect them as they protect themselves.
However – bigger companies got used to complicated taxation, difficult legal requirements, complicated rules and regulations. If that is the case – make a change you unfold productivity in your existing firms and attract new firms. That is an strategic involvement for any country and developing countries may have a huge advantage not even creating those complex mechanisms.
All the above mentioned industrial revolutions could unfold because no government was there to block it and that includes China.
Watch the progress but don’t build roadblocks.
Culture Building for the Future of countries
Building a culture is not something a government can do. It only can enforce a behavior but that is not a culture. In the early days of the industrial revolution an entrepreneurial culture arose and competitors even exchanged thoughts while their sales people competed for market share on the street.
In Silicon Valley an even more open arose as people from almost every nation on the planet was present there and tried to build what nobody believed is possible. Only over several decades that spirit began to decay, competition through their investors became harder, communication less open, funding was only possible for a few and small investments died out for new starters. The culture evolved over about 50 years but died slowly the last 10 years.
If a culture is evolving from the inside it can create amazing effects like scaling itself, drive unimaginable creativity, unfold almost impossible energy and unparalleled inspiration. External influence with even the best intention will destroy it faster than it evolved – period.
Allow the maximum legally available free space. No need for any “support” even if it is well meant.
CHECKLIST
- Allow for a physical area where entrepreneurs can create, connect, build, market and scale.
- Don’t provide any support and don’t create any limitations
- Investors take by far the biggest risk financial risk and they should never be punished for that . Moreover, tax advantages is a great way to stimulate additional investments. The real money comes only after 10+ years but taxing peanuts in the beginning is just not inspiring anybody.
- Ensure that the entrepreneurs stay in your country and IPO their company.
Imagine if Carl Benz, Robert Bosch… had left Europe and go to Persia back then. Our economic map would look entirely different.
Long Term Vision
Future of countries
Please consider this scenario
Even the strongest country in the world can only reach its maximum potential if every country has reached theirs. Exploitation, colonialism, no matter in what form, unfair business practices, can only delay the reach of the maximum potential. 8 Billion well-educated, motivated, and inspired people, eager to make the world a better place would outperform the achievements of a small elite of a few hundred Million within 48 hours. And 25 Billion would be just barely enough to bring us to other planets one day.
Today people believe that war is the way to a better world because their mind tell them that they have the answer, others believe our population is already too big despite the fact that we can put 30+ billion people into the USA and still have a lofty population density of Munich and the entire rest of the world is our fruit and farm garden. That is why we believe we need to educate people to become intelligent and creative parts of a highly diverse population – and leverage the 87 billion brain cells that we ALL have.
Look into the next 25+ years – no matter how impossible it may look like. An Economy may take even 50 years to unfold.
Governmental Support
The World Innovations Forum is not only for startup entrepreneurs and investors but also able to coach governments. We have no diplomatic skills and we are no pleasers. We just follow our long term vision – stated above.
Everything we described here is geared towards simplicity, easy development and overhauled administration. This is also true for our engagement.
- Let’s arrange a call with decision makers and our senior management.
- If the call leads to a meeting or a follow on call lets make arrangements.
- In case we agree on a consultancy, lets make simple but very clear and undisputable agreements.
- We execute based on the agreement we made.
- UNDERSTANDING: we are a non profit organization mut must cover all cost.