I never did understand the frenzy around startups and small biz as an engine for job creation, but I kept still—no one makes a fool of themselves intentionally.
Then last July I read an article by Andy Grove about what it takes to create jobs and my thoughts didn’t seem quite so ignorant. In September I read that after the first rush of hiring small and large companies are fairly even regarding job creation.
I also couldn’t understand the economic value of companies such as Groupon, Twitter, Zynga or even Facebook. I really couldn’t see how new ways to sell stuff was going to rebuild the middle class; it just didn’t seem that anything new and real was actually being created, but I didn’t broadcast those heretical views, either.
So if this tech bubble is about getting shoppers to buy, what’s left if and when it pops? [Steve] Perlman [founder or WebTV] grows agitated when asked that question. Hands waving and voice rising, he says that venture capitalists have become consumed with finding overnight sensations. They’ve pulled away from funding risky projects that create more of those general-purpose technologies—inventions that lay the foundation for more invention. “…But they are building on top of old technology, and at some point you exhaust the fuel of the underpinnings.”
Beyond all this is the fact that selling stuff requires a strong middle class to buy it and even startups with real products aren’t contributing to the manufacturing jobs that underpin that same middle class.
“The scaling process is no longer happening in the U.S. And as long as that’s the case, plowing capital into young companies that build their factories elsewhere will continue to yield a bad return in terms of American jobs.” –Andy Grove
China and India are consumer powerhouses not because of their newly minted uber-rich, but because of their growing middle class.
Most of this has been said in one way or another, but it doesn’t seem to have sunk in. I certainly don’t have the answers, but I am sure that the conversation needs to become a lot louder before anyone notices, let alone takes action.
Quick. What comes to mind when you hear “entrepreneur?” Do you think first of someone young?
Does innovation bring to mind a new social or mobile app?
Does it excite you that it was US ingenuity that gave the world a social way to get discounts (Groupon), tell the world they what they had for lunch (Twitter) and brag that they are mayor of the local Starbucks (Foursquare)?
These questions come from a recent conversation I had and my response to all three was ‘no’, which, obviously, puts me way out in left field. (My answers were that entrepreneur is age-neutral and innovation links directly to the stuff that excites me, such as the polio vaccine, semiconductors and DARPA, which counts the internet among the things it fostered.
The kinds of innovation and invention that blow me away are rarely focused on supplying ephemeral consumer experiences, but rather they directly make or cause material changes in our world—hopefully for the better; they often take years of effort and don’t result in rock star status or millions of followers and friends.
A self-taught inventor named Gary Cola has developed a process for manufacturing steel that results in the creation of a product that’s 7% stronger than the strongest steel – and 30% lighter. The steel is also incredibly ductile – meaning that it can crumple a great deal before reaching a breaking point. Even better? His heat-treating process only takes 10 seconds. Compare that to conventional steel manufacturing, where heat-treating can take hours or even days.
Many that will reshape the world are born through academic research, such as Glassimetal Technology (a metal alloy that can be molded like plastic).
Then there are Hugh Crenshaw and Charles Pell, who, using their background in biomechanics, keep inventing and innovating in multiple fields.
And over the past 20 years they’ve profitably translated their understanding of biomechanics into inventions, from robotic submarines to pill sorters.
They aren’t stopping, either, now they’ve focused on reinventing the surgical tray, starting with the rib spreader.
Now you know what excites me, what innovation/inventions excite you?
No, Kim Kardashian does not figure in any way in this post. Actually, I’ve never seen her, know almost nothing about her and have no interest in changing that. But I am going to introduce you to some very cool people and their fashion-connected innovations.
But first, something for all those who were ever forced to change not only their job, but their entire career.
What if you had the coolest, most awesome job in the world and your company closed, eliminating your position? Worse, what if it was the only company in that business? What would you do?
Next up is David Barton, a five foot, five inch powerhouse who created and runs the coolest gyms on the planet. (If I’m wrong about that you can correct me in comments.)
Every wonder who profits from the millions of toys that are given away in cereal boxes and places like Carl’s Jr? Meet George Namkungm founder of Namkung Promotions Inc.; the same guy who traded in the plush lifestyle those toys gave him to create a way to feed lunch five days a week to 15,000 children.
Innovation can also be turned on ones-self. What kind of career would you create for yourself if you were a six foot tall fashionista? Image-maker, of course, which is exactly what Rachel Johnson did, only she styles celebrity athletes, instead of the glitterati.
Ever wondered what else clothes can do besides the obvious?
On the high tech side there is wearable there are clothes that act as sunscreen and “anti-odor” polo shirts.
On the low tech side is something far cooler. A mom who wanted to give her blind daughter access to the fun of cool slogans on tees found 3-D embroidery and connected with the right company. The result is Braille-A-Wear—check it out.
This final link doesn’t address entrepreneurs or innovation, but it does take a look at the flip-side of an age old fashion dilemma that every woman knows—and it’s hilarious. Enjoy!
During the original dot com boom a young woman told me that there had been no startups before the Internet and that all startups involved it.
Once again it seems as if all the focus is on web startups that sell, or help sell, stuff to consumers.
But there are other kinds of entrepreneurs, some start companies, while others innovate inside the system—and the system isn’t always a company nor is the end result a product.
Sometimes it’s people.
Dr. Carnell Cooper, an associate professor of surgery at the University of Maryland in Baltimore, is such an entrepreneur, although I’m sure he doesn’t think of himself that way.
Those who treat young victims of violence know that there is a high probability that the same kids will be back again and again and that one of the next incidents is likely to be fatal.
Dr. Cooper knew that, but he believed there was a way to break the cycle.
In a country where violence remains a major public health issue and homicide remains the 15th leading cause of death and the leading cause of death among African-American males ages 15 to 34, the work of Dr. Cooper and his colleagues has resulted in an 83 percent decrease among participants in repeat hospitalizations for violent injuries, a 75 percent reduction in criminal activity and an 82 percent increase in employment. He created a hospital-based violence intervention program that has helped more than 1,500 victims of violent crime and their families.
According to Mark Suster, an entrepreneur turned VC, a successful startup needs to solve a real problem and “win the battle for share of mind.”
Granted, Suster is referring to Net startups, but there’s no question that the problem Dr. Cooper is addressing is very real. Nor is there any question that its impact is wide-spread, its cost enormous and its impact on our GDP substantial.
Dr. Cooper started his program in 1998, ran out of funding in 2001 and has subsisted on grants ever since.
He found a real solution to a real problem, but still can’t capture mindshare.
Will Americans ever accept that we have problems that can’t be solved with an app? And that the solutions that do work should be funded even if they don’t offer an obvious 10x return?
If a business collects data on consumers electronically, it should provide them with a version of that data that is easy to download and export to another Web site. Think of it this way: you have lent the company your data, and you’d like a copy for your own use.
He goes on to offer specific examples of ways in which people would gain significantly from having access to that data if it was in a user-friendly form.
(His comments reminded me of the legal fight by people whose genomes were added to data bases without their consent.)
Senators John Kerry and John McCain (wow, that is an odd couple) have co-authored a bill called the Commercial Privacy Bill of Rights, which is good (if it passes), but Thaler says it only addresses privacy and security issues, not useable access.
Both sound like a good idea.
The UK already has both.
US marketers claim that any kind of privacy or data control will affect the economy adversely; I even heard some say that any kind of limitations on the use of data in the US could impair the global recovery.
Pu-leeeze!
If, as Thaler demonstrates, giving useable access to collected data would allow consumers to better evaluate pricing to find the best deal the result would be less smoke and mirrors and (slightly) more authenticity.
It seems to me that would benefit the recovery—at least for those companies that aren’t playing games.
There is much talk these days about entrepreneurs and entrepreneurism, what makes the first and the importance of the second.
Today we look at the story of Vijender Shekhawat, a struggling small business owner turned entrepreneur with an unlikely product, but one that is changing lives for the better.
Eight years ago 29 year old Vijender Shekhawat, warrior caste and descendant of kings, did what millions of Indians do each day—he stepped in elephant poop.
But unlike the other millions, his reaction was to study the poop and in doing so he realized it was similar to the wood pulp he used to make his custom paper (that wasn’t doing all that well).
Through trial and error he found the right ration of poop to cotton to produce a unique and beautiful custom paper; he uses organic dyes, including beet juice for red paper, dried pomegranate skins for gray and the castor oil plant for green.
Talk about sustainable!
When dung prices skyrocketed because there was a market for it, Shekhawat found a solution that not only made everyone happy, but also improved the quality of his raw material.
He provided the elephants’ food, pleasing the mahouts. The beasts ate better, pleasing the elephants. And higher-quality dung emerged, pleasing Shekhawat. “Before, keepers skulked around dumping it at night,” Shekhawat said. “Now they’re delighted.”
The paper is now sold in Europe and the US.
Like many entrepreneurs Shekhawat wants to do good along with doing well and that attitude drives his expansion plans.
Shekhawat has always had a charitable bent — as a boy he gave his lunch to beggars, his mother said — and his next dream is to help villagers by moving his workshop to a rural area and providing jobs, especially for women who often don’t have much chance to leave the house, and serving as an example for wannabe entrepreneurs.
Metaphorically speaking, we have all stepped in elephant poop at one time or another and are bound to do so again.
The real question is what will you do the next time it happens?
As Shekhawat points out, “the difference between being a fool and a genius is success.”
I used to have six aquariums, the smallest was a 25 gallon, six inch deep room divider and the largest was 100 galleons.
One day I moved a small, about four inches, black ghost knifefish from the 25 gallon tank to the 100 gallon aquarium. Over the next year it grew to about 11 inches.
This happened because fish grow based on the concentration of a chemical they secrete into the water. Nature stops growth when the concentration indicates that the environment won’t support them further.
Human beings grow similarly—they will grow as long as the environment they are in supports their growth.
Curiosity, investigation, discussion, dissent and debate are the chemicals humans secrete, but the most important is curiosity.
Limit curiosity and you limit growth; shut it down and growth stops cold.
This applies just as much to parenting as it does to managing or “leading.”
Just think what would happen if each of us worked to encourage unlimited curiosity, investigation, discussion, dissent and debate in our own little corner of the world.
Think of the growth that would be unleashed; the happiness that would be generated; and the difference between that world and our present one.
A great deal of innovation, including those with the potential to change the world, is done not just by entrepreneurs, but internally in corporations.
Fast Company offers a list of what it considers the 2011′s 50 Most Innovative Companies. Some are innovation standards, while others will surprise you, however number 21, DonorsChoose, innovative or not, is a sad commentary on US education.
Innovation, like sex and love is often progressive, with one idea often leading to another. First off, now on the Web, the two have progressed from sex (general and nitch porn) to love (general and nitch dating sites) to infidelity. Obviously, if someone works their way through these sites sequentially then the next needed innovation is divorce, which is provided by Tim McNamara at ClearViewDivorce.
The next three are my personal favorites, because they address my personal needs so perfectly.
Liquid glass looks like a solution to any problem surface that I want smooth and easy to clean.
A new wall panel made by National Gypsum called Thermalcore seems like a great way to cut my heating bills when I finally remodel.
Finally, my office faces my front yard where I feed dozens of birds, a few squirrels and the occasional hawk that stops by for a starling lunch and I enjoy them through three large fixed pane windows. Unfortunately, the birds often crash into the glass, but a German company has solved that problem. I’m replacing the panes with Ornilux.
Earlier this week I mentioned that changes were coming to MAPping Company Success.
The main reason for the changes is I’m bored and if I’m bored I’m sure to bore you. Additionally, with the release of Option Sanity™ I’m more involved with startups and entrepreneurial issues (meaning startups that are focused on becoming sizable enterprises as opposed to small biz or home-based biz).
However, my focus on MAP (mindset, attitude, philosophy™) and its effect on company culture, management, retention and motivation is applicable to anyone, whether in a startup, self-employed or working for a larger organization.
There are some specific changes coming.
Wordless Wednesday will focus more on applicable or interesting videos (you have no idea how difficult it is to find good subjects for WW).
As I mentioned yesterday, Leadership’s Future will be come an occasional feature on a different day and Thursday’s focus will be on the stories of specific entrepreneurs.
Sunday’s Quotable Quotes will occasionally share its day with a new feature focused on odd facts and stats.
Tuesday’s Ducks in a Row, about culture, and Saturday’s Expand Your Mind, with links to articles of interest continue.
Another change is to invite guest posts from you, my friends and readers. 500 words or less on a topic of your choice, as long as it is relevant to the broad focus of MAPping Company Success and you believe it would be of interest to others.
Of course, none of this is carved in stone, so I would love to hear additional suggestions from you.
Last, but certainly not least…
HAPPY NEW YEAR
I wish you and yours a healthy, happy, adventurous, exciting and successful 2011!
It’s funny, most bloggers release products, immediately write about them on their blogs and then all of their blogger friends write about them. It’s logical to do so, even reasonable.
So why haven’t I done it? Actually, I announced it in August, but there was no reaction or comments you, my readers, or any of the bloggers I contacted (but more on them in another post).
Going forward, I thought it would be fun to share some of the challenges, problems and results of our marketing effort, since it turns on subjects about which I frequently write.
In case you don’t remember, Option Sanity is a totally new, values-based way to allocate stock options, with a focus on fairness. It levels the playing field and even makes investors happy.
To give you a much better understanding of how it works, here is the video tour. There is additional information on the website and for those who are really curious, you can play with the full app demo and post your thoughts, opinions or questions here or on the review page.
I never did understand the frenzy around startups and small biz as an engine for job creation, but I kept still—no one makes a fool of themselves intentionally.
Quick. What comes to mind when you hear “entrepreneur?” Do you think first of someone young?
No, Kim Kardashian does not figure in any way in this post. Actually, I’ve never seen her, know almost nothing about her and have no interest in changing that. But I am going to introduce you to some very cool people and their fashion-connected innovations.
Dr. Carnell Cooper, an associate professor of surgery at the University of Maryland in Baltimore, is such an entrepreneur, although I’m sure he doesn’t think of himself that way.
By now you all know that I am a digital dinosaur, no cell phone, no iAnything, and a careful participant online.
There is much talk these days about entrepreneurs and entrepreneurism, what makes the first and the importance of the second.
I used to have six aquariums, the smallest was a 25 gallon, six inch deep room divider and the largest was 100 galleons.
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