Tag Archive for: economic development

Since thousands of years, innovation has been the primary success factor for any business and for any economy. And the counter fact, a declining ability to innovate, results in declining successes and the business or nation eventually vanishes away from top of mind as one of the companies or nations people talk about.

Emerging country entrepreneurs have the best potential for innovation

When recognizing a big problem and working in a team to find  a solution, emerging country entrepreneurs have a big advantage of the developed world: No limits from ideation to idea validation, to early production and entering into the mainstream market. In the developed world, even existing innovations like Amazon, Facebook, Tesla, Uber, AirBnB are attacked by pseudo legal conflicts all the way to banning those innovations. Mercedes can’t run autonomous driving test cars in Germany and need to do it in Silicon Valley, the arch rival of innovation. Amazon gets fought as the killer of the small businesses as customer prefer the much easier online offering. Facebook is a constant victim of attacks due to its sheer size and influence based on their innovation that attracts two billion users daily and represent essentially 90% of the digitized world. Like Amazon, AirBnB and uber are even banned in some countries because their innovation has put the lagard and conventional businesses in jeopardy. And instead of “counter innovating” the slow moving and far to letharging old world businesses fight with legal attacks however obscurely created. Whether one creates or tries to implement innovative and disruptive solutions in the developed world is doomed to fail. The good news. Europe and the US with its combined 1 billion population is only one 8th of the world population. The other close to 7 billion people, 1.4 billion in fast rising Africa, 4.5 in even faster growing Asia are more then enough to become  a world leader in any solution of the millions of unsolved problems. The innovative minds in those developing and fast emerging nations are not just the only chance those countries have to get out of poverty – it is the only chance for all of us to get the much needed innovation to thrive as the human race.

Innovation is at the heart of the Word Innovations Forum

The World Innovations Forum Foundation was established as the “global exchange for innovative minds”. In the early days of our work we did that in 2014 under the Society3 brand as an accelerator in San Francisco, California. We expanded to Europa and began to work also in South east asia. Whatever country we visited, we saw the exact same pattern than in Silicon Valley, the rest of the US, Europe and the rest of the world: There are highly innovative, fearless, determined and intelligent entrepreneurs who want to change the world. Their gravitational force is almost magic and they attract hundreds of young people wanting to become an entrepreneur too. And even several of them make it as well. The rest is copying stuff that is already out there, hope they can make it cheaper and eventually fail and close their shop. With six years of experience what works and what not we are constantly improving our selection processes and with it making our acceleration and guidance as well as mentorship ever more demanding. One clear request we have not been stressing enough in the past is the WILLINGNESS TO INNOVATE. We have seen entrepreneurs who just did not have the right idea because they didn’t even know where to start to look for the right idea. We were able to help. But those who lack the mental bandwidth or interest to innovate we will no longer support. This has nothing to do with trying to be an elite club – we are the opposite. But without innovative the eagerness to create an mindset a team just can’t be successful. If one wants to become  movie star because of the glamor but is not willing to work for the skills and develop the talent it’s a waste of time for all parties. Innovation is at the heart of or organization AND in its name from day one. Going forward we will exclusively work with innovative minds and let other organizations who work with any startup do their job as good as they can. With the limited resources we have, we must focus on the best talents out there, who can make a difference.

Where do those magical innovative ideas come from?

The founders of the World Innovations Forum are known for their innovation history, creating 5 innovative businesses, with disruptive business models. That experience led to building the San Francisco Accelerator within the Society3. Yet another creation is coming out of Society3: BlueCallum. After four years of research where innovative ideas are coming from and how they are created, the team got inspired by latest neuroscience discoveries and found the answer. BlueCallum is a wholly owned business of Society3 and now focusing entirely on innovation creation, called Neuro Ideation and innovation process management with a new “Deep Innovation Design” model. Unlike many innovation methods including the “Design Thinking” model, Deep innovation design start before ideas get created and only finishes once the innovative idea is successfully brought to global markets. BlueCallum effectively disrupts the act of innovation itself. The close relationship between WIForum and BlueCallum is a great advantage to all WIForum members.

Searching for 007 Entrepreneurs

In every country we find at least 0.007% of the population being top successful entrepreneurs and the number can grow up to 0.3%. A successful entrepreneur has three key attributes: 1) has an innovative vision and approach, solving a major problem. 2) builds a company with thousands of jobs. 3) Has the execution power to export their products and create a major contribution to the nations GDP. Getting out of university and building a billion $ company is sort of the mainstream view of the entrepreneurial super stars. Fact is that all today’s top entrepreneurs have been gaining business experience by working in a large company and understanding how such a business works. Another globally spread myth is that experimentation, pivoting and trying something new gets a startup to a great result. Fact is that none of those ever made it to the top – none means zero. Another myth is that the lean startup method is a great method to follow. Fact is that it is a method created by somebody who failed 3 times and the big win was explaining it with creating a method. Since it was the first methodical startup approach every business school and university jumped on it but it was never proven to be successful. We wee looking at success pattern and the skills that connect all of the top entrepreneurs. We could not find one skill that connected them but ten traits / talents that were found in each of the top entrepreneurs. I don’t want to repeat it hear so just a pointer to the corresponding blog post:

We need all our partners, supporters, friends, friends of friends and networks to identify those golden talents in each country. After explaining above in great detail the why, let us share the how: 10 most relevant founders traits

If you get across anybody, however crazy, with absurd ideas to make a difference, point them to the world innovations forum and in particular to the InnoPreneurs Program AKA “007 Program“.

By answering a few questions we get a first indication of the entrepreneurial mind.
We follow up with a casual conversation to better understand motive, objectives, desires and so forth
Maybe a follow on conversation exploring the idea and the vision
Thereafter we will consult with our country ambassador for more insights.

If we can find 2,000 of such entrepreneurial minds in a 30 Million population country, we are at 0.007% of the population and it would be an amazing start.

Entrepreneurial Spirit Development

The first thing we will do, is to help an develop an entrepreneurial mindset. There are a few biases with even the most potent entrepreneurial superstars may have, mostly due to misseducation and wrong guidance:
1) Believing that they need money to start a business
2) Believing they need a university degree to create a company
3) Believing that they cannot afford top notch co-founders
4) Believing they need to be an engineer to craft a solution for a problem
5) Believing that they need a big advertising budget to get into the market
6) Believing that after the first round of funding they are over the hump
And several other believes like that

We will help curent that as all of that is neither necessary nor correct.
And since we realized that we are continuously working with our portfolio companies, even after six years, we created a long term program of mentorship and guidance, accompanying the teams through all phases of a business from start to full maturity.

Global Mentorship & Support Network

Since long term support is not only a problem in emerging countries, we will support entrepreneurs from any nation by building up an digital network of mentors and other successful entrepreneurs to be helpful to the next generation. The unfortunate pandemic however also trained everybody to be digital, accept digital and use the digital engagement to their advantage. At the World Innovations Form we are building a online network of mentors and supporters. If you like to help entrepreneurs with your entrepreneurial experience join the global network and become a member.

 

I’ve been asked countless times if it is worth to still enter the startup hype – or will it be gone sooner or later. Yes, in the developed nations, where legal structures, capital markets and production gets ever more complicated, it may fade away. If the is is good or bad is a very important question to ask.

 

When The Startup Hype ends

Startups exists for approximately 12,000 years. The 300,000 years before that people have been already innovative, but not as a full time job. But 12,000 years ago, when during the agricultural revolution individuals produced more food than they and their family could eat – everything changed. That was the time when some people ventured out to specialize and did no longer gather or hunt but built pots, bend metal, built housing and others began t sell those products and services as a full time job. The simply traded products and even services for food. Those were the first entrepreneurs. And that never faded away. After hunting and farming, building and trading have been the oldest businesses on earth.

Today, roughly 0.007% of the world population are entrepreneurs. In the developed world, about 0.03% are entrepreneurs, approximately 3% are busy farming and taking care of food and 97% are working for those entrepreneurs or for the government. As most governments have the tendency to grow, the number of startups and innovations are sinking. In the developed world, South Korea, Japan, Germany, Switzerland and the US are some of the most efficient with less than 15% working for the Government.

The more people work in “safe” jobs in large enterprises and the government, the lower the number of startups and with it the lower the likelihood to grow the next generation of innovation powerhouses. That’s when the startup hype ends in those nations and grows in other nations as the windows for new opportunity widen quickly.

And we could see this over the past 12,000 years. Egypt led the longest time as global economic leader. But it was not sustainable. Other leading nations rose. The Roman empire, the chinese high times, the british empire, and so forth. Today – the economic power is far more distributed. California, China, Germany, South Korea, Switzerland are all leading nations. But when the startup “hype” vanishes away, so do their countries on the global leader list — BUT — with 20-30 years of a delay.

What are your prediction, when the startup hype will end?

As an organization, who has INNOVATION in its name, obviously we are diving very deep into the topic and getting a large variety of perspectives and insights. Innovation tightly connected to entrepreneurship. As a consequence, we asked ourselves, what can we do to bring economic development in developing countries to an all new level. A level where we can see progress in a much shorter time period. Obviously education is one of the initial needs.

Phenomenal Education Development

Africa, most of South East Asia and Latin America has showed phenomenal progress in education already; having 1,000 times more academic graduates than 50 years ago. There are now thousands of Universities across those continents, which created millions of well trained people – but with no equivalent job. What would a math degree do if you can’t work with it? Today there are more than a million graduates in in each of the three continents. The best they can do would be try to get to Europe or the US. Yet – that would be a devastating brain drain and remove all hopes, those nations have today. Before the inception of development aid, education was a function of having better employees to handle the jobs – but here we have better education but no jobs. We realized we needed to find out how exactly did developed countries develop.

The Rise of Developed Countries

In the early and mid 1800’s, Switzerland was the poorest country in Europe. Germany was a poor country, South Korea was one of the poorest countries in Asia, California was a desert and the most western farmland in the US. If not for the Gold, California would hardly be on the map. Yet the natural resources died out quickly. A similar risk the Arabian peninsula is facing. However something changed above and beyond natural resources and tourism: Innovation and entrepreneurship. When Carl Benz, Robert Bosch, Werner v. Siemens and Friedrich Krupp, crazy entrepreneurs with useless ideas, started to engineer, develop, produce, market, sell and scale their businesses, Germany became a wealthy nation. There is nothing else that propelled the German economy as much as these crazy entrepreneurs. At the same time period, Alfred Escher wanted to build a railroad in Switzerland. But since this was a low priority for the very poor Swiss population, he could not raise any capital. So he asked for foreign investment, the sheer amount he raised, required him to create a more international bank, Credit Suisse. Since he needed more talent, he created the Zürich based University, ETH, today one of the most renowned Tech Universities in the world. Did you know the jet engine was invented in France? Now you know why France is still one of the world’s leading aerospace nations. Did you know that Silicon Valley was essentially based on five entrepreneurs? Almost all developed countries started poor, had an environment where crazy entrepreneurs just could do their thing, no matter how useless and money could flow in from foreign investors. The US, Germany, Switzerland, South Korea, Japan, and all others have been based on that very principle. Thousands of years before that it was war, theft and the financing of their armies to do the very same: invent, grow, sell and come to prosperity. Since thousands of years, the nations that carried their goods in foreign countries and received investment from foreign countries rose. And there is no reason to continue that path with an ever larger number of nations. We never tried to answer the question, how can we get 3.5 Billion people out of poverty with the help from the West? We wanted to know what made the developed countries so prosperous and if we could apply that learning to eradicate poverty.

Economic Development 4.0

We realized that nearly all developed countries, on three different continents rose to prosperity through innovation and entrepreneurship. Moreover, in understanding that entrepreneurship is not a western ‘invention’ but a universally applicable concept, for thousands of years across all cultures. We began to look for such entrepreneurs in developing and emerging countries. And we found jar dropping entrepreneurs and their startups in Argentina, Ghana, Nigeria, Peru, Vietnam and many other countries. With those results, we decided to turn economic development towards a direction that was probably not very well understood before: innovation and entrepreneurship.

We envisioned entrepreneurial journeys from local to global enterprises in most nations. We developed unique tools like the Innovative Thinking Model, Digital Engagement Methods, and explored Next Generation Digital Stock exchanges that could make a huge difference to those entrepreneurs embarking on a catch up race with developed nations. These measures have a good chance to play a defining role in enabling fast growing innovative companies. They will develop far more environmentally friendly products, find new ways of packaging, new ways to turn deserted land back to green land, turn abundant energy like wind or solar heat into usable energy or even mechanisms to leverage those energies directly. We see entrepreneurs working on biological material and AI solutions, like in Nepal, in a way nobody ever thought about. We will not come with technology and ideas that they can execute but with ways to stimulate their ingenuity to do the impossible – and radical different things. Those new businesses can create hundreds of thousands of jobs quickly absorbing the already waiting academics. This is not an idea or concept. Again, this is exactly how developed countries emerged. And since today’s startups no longer take 30 years to rise but already after 3 years have somewhere around 50+ employees and rise to the top within 7 to 10 years, we have a good chance to turn 20 to 50 nations into prosperous developed countries by 2030. The only key task to perform is the work with governments to enable three things: Foreign Direct Investments, Infrastructure development, and Investor/Entrepreneurship friendly policies.

Economic development 4.0 is all about inspiration, education, stimulation – and letting the local entrepreneurs do what they think, what they want and what they believe is the right thing to do. If nobody wants to develop tools to structure their overwhelming city traffic, well, than there maybe no need and we may learn from the way that flow is going – very much like the flow of our blood does not need signs and stop lights ;) Economic Development 4.0 was created to prevent our developed experiences from influencing their development. You may also notice that none of the fastest growing economies these days such as China, Vietnam, Rwanda… are democracies. And we have no right at all and under no circumstances to change that. The only ones who may want to do that are the respective countries themselves – no matter what.

We are starting end of this year with “Seeding Innovation 2020” in 17 countries in Africa, Latin America and South East Asia. This is an open invitation to join us. Https://wiforum.org/join