Entrepreneurship

Naeem Zafar: Entrepreneurship for the Better World

Editor’s Note: Naeem Zafar is the president and CEO of Bitzer Mobile, a company that simplifies enterprise mobility. On November 15, 2013 Oracle announced it has acquired Bitzer Mobile. As a member of the faculty of the Haas Business School at the University of California Berkeley, he teaches Entrepreneurship and Innovation in the MBA program. He is the founder of Startup-Advisor, which focuses on educating and advising entrepreneurs on all aspects of starting and running a company. His entrepreneurial experience includes working directly with six startups, and he has extensive experience in mentoring and coaching founders and CEOs.

Mr. Zafar holds a Bachelor of Science degree in electrical engineering from Brown University (magna cum laude), Rhode Island, and a master’s degree in electrical engineering from the University of Minnesota. He is a charter member of TiE .He is also a charter member of OPEN where he serves as the Board member.

You can read his full bio from here, here and here.

eTalk’s Niaz Uddin has interviewed Naeem Zafar recently to gain his ideas and insights about StartUp, social business and entrepreneurship for better world which is given below.

Q: You’re a successful entrepreneur. As a member of faculty of the Haas Business School at UC Berkeley, you teach entrepreneurship and innovation in the MBA program. At the beginning of our interview can you please tell us what exactly is entrepreneurship?

A: Entrepreneurship is a state of mind. It is a way to look at a situation and see how could you make a profitable venture out of it. It is very innate. People, educated or not in urban or rural setting, are just as likely to spot an opportunity and drive it to commercialization.  The likelihood is there just as it is for a Silicon Valley hotshot startup guy. So it transcends all boundaries of education, race and gender. It is a state of mind.

Q: You believe that entrepreneurship can be a powerful tool to alleviate poverty and extremism of the world and social businesses can fill the gap where public institutions often fall short. Can you please tell us more about that?

A: If you think about the definition of a business….its objective is to maximize shareholder return. So the shareholder who invests in the company has an expectation that the management should do whatever it can to maximize return; that is perfectly fine. We have seen tremendous companies and innovation come out of that model. But if there were a concept of setting up a company with the sole purpose of not  maximizing shareholders return but to address its social ill….. that can work for alleviating poverty.

It can be something as simple as the city doing lousy job of collecting garbage. Let’s say the garbage is not being collected on time which is very unpleasant as we know. We can set up a company so that there speedy pick up and disposal of garbage. The purpose of that company is to address this social ill. It is not to maximize shareholder profit. Imagine setting up the company with that objective and shareholders putting in money. This company’s objective is for this social ill to be addressed and not to maximize profit. Now, it is still a for profit company. It still pays market wages and hires the best people to address the issue but it is not trying to maximize profit.

This model which can be very rewarding for the shareholders as it is a new way of looking at solving many of the problems which governments are not well suited to solve. That’s called social business. I think the concept is a powerful one. It’s put forward by the Nobel laureate, Muhammad Yunus, in his 3rd book and I think it is a tremendous way for communities to organize and address issues which plagued them without having to wait for government to show up.

Q: How do you connect these three dots: social entrepreneurship, alleviating poverty and making a better world?

A: If you look at my previous answer I just connected the three dots for you.  Making a better world is about alleviating poverty and giving people a chance to participate in economic growth and well-being. Social businesses and entrepreneurship is a way for them to have that opportunity.

In the country that I grew up in you look for government to give you a good job. However, the government is not well equipped to provide a job for everybody. On the other hand, the private sector is well positioned. As we have seen in US, the private sector produced even submarines, bombs and fighter jets. This was quite shocking to me when I came to this country.

The government’s job is not to produce goods. Its job is to set policies and systems so that companies and entrepreneurs can thrive.

Q: How did you find the idea for Bitzer Mobile? Can you please briefly tell us about Bitzer Mobile?

A: Bitzer Mobile’s technical founder, Ali Ahmed, was working as a software architect for large companies in insurance and oil verticals for many years. He continued to recognize that people were struggling to allow employees mobile access to data.

Ali was having to solve the problem for every company in a unique way. So the idea was, why not come up with the way so that the employees can easily and securely access corporate data and be productive from wherever they happen to be. And that gave birth to Bitzer.

Q: As far as I believe for changing the world, we need to find complex, interesting  and  big problems of the world and then have to build great organizations that will sustain in the long run to keep solving those problems as well as to keep contributing for the betterment of the mother earth. Can you please tell us how can we find interesting, complex and big problems of this world?

A: First of all, I don’t agree with your definition. It is not about solving big problems. It is about solving problems. Problems of all sizes. Sometimes all you have to do is look around you. There are problems in your community, where you live, where you work. Solve those problems. Big ideas come from people trying to solve small problems which turn into great movements. So looking for the great problems to solve is not the only way and may not be most efficient way to do it either.

Q: What are your suggestions on finding interesting ideas and bringing the ideas to life to solve?

A: Interesting ideas to solve come from deep domain knowledge. It’s very difficult for entrepreneurs when they are young to come up with ideas as they can be light weight. The average age of an entrepreneur in America is 37. This means that many people are older than 37 when they start their company. So only if you worked in the industry for 5-10 years you really understand what issues are, what the problems are, and then you can see how you can solve them. So my advice is:  look around you, work in some industry, learn the hard skills. Then you will see the problem and you will be well equipped to solve them. This is how you address this issue.

Q: What are your takes on finding the right business model and identifying early customers?

A: To find the right business model and early customers is simple. You should be able to answer these two fundamental questions: what problem are you solving and who has this problem.  If you cannot concisely answer these two questions you don’t have clarity in your head. I insist that people should talk to 5 to 10 actual users and buyers of whatever product they’re planning to buy and try to understand what their pain is. If you cannot clearly articulate what pain your customers have do not start the company. Then discuss with customers what you are planning to do and if this would be interested in it. If you cannot generate this early customer interest, do not start the company.

And stop worrying about confidentiality. People have other problems to solve in their lives. They are not running to copy your idea. It is the execution of your idea that is the hard part. By bouncing these ideas off suitable customers and users and consistently getting positive feedback, you may be in a position to start the company and then they likely will buy it. Everything else will clarify itself during the course of this process.

Q: Can you please tell us about the legal process of starting a company?

A: Legal process depends on in which country you are starting the company in, what the local regulations are.  My book which is a legal guide for entrepreneurs goes into fair amount of details: What is the process, what options you have in the United States. So read the book. It’s available at naeemzafar.com.

Q: As you’ve seen during Internet bubble, there were so many companies founded and were committed to change the world. But with the changes of time around 90% of them got obsolete. And we ended up having some great companies. Now, there are also so many startups working with cloud computing, big data, wearable technologies, space, robotics and so on. The data shows most of them will also get obsolete as the success rate of startups is very low. But there are always some common characteristics, values,  philosophies and ideas that  keep some startups alive and helps to sustain in the long run. You have profound experience of seeing all the trends as you have been advising companies and working with great entrepreneurs in Silicon Valley. What are your suggestions on building the next big organization?

A: Aspect of building the next big organization is about solving a big problem. It is easy to spot what are the problems that need to be solved. All the trends you mention have tremendous potential.

Big data and business analytics can pinpoint precisely if you put a restaurant in the corner of this street and that street. They tell you what will be your monthly sales when you put it in the corner of that street and that street. So, the way businesses will be making decision could be based on not intuition but actual data.

If you read the book or watch the movie called Moneyball, it is about applying statistics to baseball. It is about how a mediocre team became the number one team by using big data. And that is applicable to every single business. So look for a big idea around you and build a great team with high caliber people. If you can put together a right market with the right team, you can build a lasting company too.

Q: How do you think about hiring remarkable people and let them scope to work on achieving vision that will change our world for good?

A: I think it’s good idea to hire remarkable people. You should do that. It’s not easy to do that. Remember the good people  will follow somebody which they can respect and whose vision they share. If you don’t have the passion and vision yourself why would A people, A players, best players follow you. Best players want to follow someone that they believe in. If you have that you shall attract the right team. And yes, you will be able to do great things. So step up to the stage and stage could be yours.

Q:  Whenever we talk about changing the world, thing that always comes first is changing ourselves. After changing our own life, we can go and change our family, then our society and then our country and then we can have a mission of changing the world to make it a better place to live in. But changing the world is hard, complex, challenging and hurting. You have come a long way and have already left a body of works to make this  world a bit more special. Can you please tell us about what your life has thought you in this amazing journey?

A: What my life has taught me is that it’s not a sprint. It is a marathon. So you have to create your own brand. You have to be genuine and honest and people will follow you . If you have  a vision that attracts people, you will have easy time attracting them.

So my advice to myself and other people around me is that if you’re a genuine person and a truthful person and you have a strong vision and can articulate it, you will have people willing to follow you. Once you have people willing to follow you then there is no challenge you cannot take tackle, no matter how big it is.

You will be able to overcome it over time and there are plenty of problems to follow around the world. But be true to yourself and always look for the team who is willing to follow you.

Q:  Last but not least, can you please give some advice to entrepreneurs who are on the mission of changing the world?

A: Changing the world is important and changing the world sometimes happens. But that is not the goal to start with. It is too big goal. It is too audacious and maybe even too arrogant to have this goal.

Martin Luther King did not have the goal of changing the world. He was just trying to change some laws so that black people could have equal rights. When Steve Jobs was starting Apple he wanted to do a music iPod. He was not trying to change the world. So I’m a little bit suspicious of your question because changing the world has come up multiple times.  Forget about changing the world. Do something meaningful for the people around you and your community. If you’re lucky enough it will have a big impact.  So think more practical and try to make local change. Stop worrying about changing the world – that will come later if you’re so lucky.

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Further Reading:

1. Peter Klein on Entrepreneurship, Economics and Education

2. Derek Sivers on  Entrepreneurship, CD Baby and Wood Egg

3. F. M. Scherer on Industrial Economy, Digital Economy and Innovation

4. Diego Comin on Entrepreneurship, Technology and Global Economic Development

5. Stephen Walt on Global Development

6. Juliana Rotich on Social Entrepreneurial Innovation

Peter Klein: Entrepreneurship, Economics and Education

Editor’s Note: Peter Klein, is Executive Director and Carl Menger Research Fellow of the Mises Institute and Associate Professor in the Division of Applied Social Sciences at the University of Missouri. At Missouri he also directs the McQuinn Center for Entrepreneurial Leadership, and he holds adjunct faculty positions with the Truman School of Public Affairs and the Norwegian School of Economics. His research focuses on the economics of organization, entrepreneurship, and corporate strategy, with applications to diversification, innovation, food and agriculture, economic growth, and vertical coordination. Klein has authored or edited five books and has published over 70 academic articles, chapters, and reviews.

He taught previously at the University of California, Berkeley, the University of Georgia, and the Copenhagen Business School, and served as a Senior Economist with the Council of Economic Advisers. He is also a former Associate Editor of The Collected Works of F. A. Hayek. He lectures regularly at the Mises University and other Mises Institute events.

Klein received his Ph.D. in economics from the University of California, Berkeley and his B.A. from the University of North Carolina, Chapel Hill. He co-founded the popular management blog Organizations and Markets.

To learn more about him, check out this this this this and this.

eTalk’s Niaz Uddin has interviewed Peter Klein recently to gain insights about entrepreneurship, economics and education which is given below.

Niaz: Dear Peter, thank you so much for joining us in the midst of your busy schedule. We are very thrilled and honored to have you at eTalks.

Peter: It’s my pleasure to participate!

Niaz: You are the prominent researcher, speaker, author, analyst and think tank in the field of entrepreneurship, innovation, economics, and education. At the very beginning of our interview can you please tell us about Entrepreneurship? What is entrepreneurship to you? What are the different contexts of entrepreneurship?

Peter: The terms “entrepreneur,” “entrepreneurship,” and “entrepreneurial” are used in many ways, not always consistently! On the one hand, entrepreneurship is often used to mean self-employment: an entrepreneur is a person who starts or operates a small business. On the other hand, we also use the term “entrepreneurial” to refer to something broader, a mindset or way of thinking that emphasizes novelty, creativity, and initiative. Obviously one can be entrepreneurial in this sense without being a small-business owner.

In the academic literature, things get even more confusing. Originally the word entrepreneur was identified with decision-making, risk-bearing, and responsibility: entrepreneurs were the business people who organized production, transforming resources into valuable products and services for consumers. That usage goes back to the 18th century. More recently, scholars have identified entrepreneurship with narrower activities or functions such as alertness to profit opportunities or the introduction of new goods and services or new ways to make existing products. In my academic writing I adopt the concept developed by the American economist Frank Knight and the Austrian economist Ludwig von Mises which emphasizes judgmental decision-making under uncertainty.

This variety of concepts and definitions causes problems, both in academic and in popular discussions. I sometimes think it would be better if we avoided the language of entrepreneurship altogether! As an exercise, I require my PhD students writing about entrepreneurship to describe their dissertation topics without using the word entrepreneurship or any of its cognates. If a student is writing about venture capital and IPOs, then call it “new-venture funding,” not entrepreneurship. If she is studying how people evaluate and compare new business models, then call it “business-model evaluation,” not entrepreneurship. I typically find that if people struggle to explain a particular phenomenon or research question without using the language or entrepreneurship, they probably don’t really understand what they’re doing!

Niaz: Can you please define what an entrepreneur is?

Peter: As discussed above, there are many definitions floating around in the academic and practitioner literature. I prefer to define entrepreneurship as judgment, the act of combining and recombining heterogeneous resources under conditions of uncertainty. But arguing about definitions is often counterproductive. I prefer to think in terms of the research question to be answered, or the practical problem to be solved. Defining entrepreneurship as self-employment or technological innovation or opportunity recognition may be useful in some contexts, but not others. Let’s focus on the phenomena and relationships of interest, even if we disagree about the labels!

Niaz: Why do you think entrepreneurship is the fundamental stand of understanding economics? And how?

Peter: Unfortunately, most people see economics as a dry, technical subject that involves poring over charts and graphs and writing equations to describe the “equilibrium” behavior of hypothetical actors. But economics is a logical, deductive, human science about real people acting in the real world, with all the dynamism, unpredictability, and creativity that entails. Markets aren’t static, lifeless mathematical constructs but lively, vigorous spaces where people interact and coordinate. Firms, markets, and industries don’t just come into existence by themselves, they have to be created and operated by real people with real responsibility. These people are entrepreneurs, what Mises called the “driving force” of the market economy. That’s one reason I’m attracted to the “Austrian” approach to economics, which has always placed the entrepreneur at the front and center of production and exchange—not an incidental actor who steps in to introduce novelty then fades into the background as the “normal” market process resumes. Entrepreneurship, as decisive action under uncertain conditions, is at the very heart of a market economy.

Niaz: At eTalks, we believe entrepreneurship is a great tool that helps building sustainable economy. We also believe entrepreneurs are the rock starts those who work to keep economy growing. Both entrepreneurship and entrepreneurs are the driving forces and instrumentals to build strong economy. Now, how do you connect these three dots: entrepreneurship, economic growth, and development of a country?

Peter: If we think of entrepreneurship is the broad sense of judgment under uncertainty, then economic development and growth can not exist without entrepreneurship! It is the entrepreneurs who invest the capital necessary for productivity growth, who organize production into firms and industries, who compete and cooperate to create and distribute goods and services to consumers in the most efficient and profitable manner. If we think of entrepreneurship more narrowly, as small business or startups or venture funding, then the story is more complex. To be sure, smaller and newer firms are often disproportionately responsible for employment growth and, in some contexts, the introduction of new products and new technologies. At the same time, large enterprises can also be innovative, and capital accumulation is often critical to achieving economies of scale and scope, even in today’s “knowledge economy.” And not every individual wants to be responsible for owning and operating a small business. Unfortunately, large firms are typically more adept at securing for themselves special political privileges and protection against competitors, though small firms play this game as well. Ultimately, I am agnostic about what mix of small and large, new and mature, and high-tech and low-tech firms is best for economic growth; I prefer to let competition in free markets sort it out.

Niaz: As you know, America is a great country having being built all big and great corporations. In the last two decades we have seen the structural and revolutionary contribution of the most exciting companies like Apple, Microsoft, Google, Facebook, and Amazon in American economy. But things are not happening in the same ways throughout the world. In some points, things are happening more devastatingly. Some countries are taking optimum advantages of cutting age technologies, disruptive innovation, and digital economy. On the other hand, most countries are lacking behind and economic condition is becoming worse. According to you what drives entrepreneurs to build great organizations? And what are the role of culture and entrepreneurial environments in that endeavors?

Peter: Clearly culture and environment are critical for the success of entrepreneurs, however defined. Unfortunately, there is little consensus in the research literature about the precise mechanisms by which culture, including social norms and beliefs, affects economic behavior. We have a general sense that cultures in which experimentation and creativity are rewarded, and failure is tolerated, are more conducive to the kind of risk-taking that entrepreneurship requires. At the same time, there are plenty of counterexamples—the Nordic countries, for example, are relatively egalitarian and homogeneous, while still being highly entrepreneurial.

When it comes to the legal and political environment, the evidence is clearer. Countries with strong property-rights protection, a well-functioning monetary system, and minimal government intervention in the economy provide the best environment for entrepreneurship and economic growth. There is a strong temptation among many government planners to try to micro-manage entrepreneurial activity through targeted subsidies, infrastructure spending, tax and regulatory codes that favor one type of firm or location over another, and other attempts to create geographic or industrial clusters of innovation. Everyone wants the next Silicon Valley in his country or region. But entrepreneurial clusters like Silicon Valley emerge, endogenously, from the bottom up; they cannot be established from the top down. To be sure, strong “anchor” entities like research universities and established companies are important for kick-starting local entrepreneurial activity. But most attempts by government planners to target particular areas or activities for an entrepreneurial boost have fallen flat. The policy environment should also allow the “freedom to fail”—no bailouts and subsidies for unsuccessful ventures! Monetary and fiscal policies designed to “stimulate” the economy are also harmful, as they tend to generate asset bubbles and other forms of price inflation that make it more difficult for entrepreneurs to plan and invest.

Niaz: Why don’t we see big organizations getting formed in other countries? What are their core challenges?

Peter: Well, we do see large-scale enterprise around the world, but it often takes different forms such as diversified business groups, keiretsu, chaebols, and the like. Often these large groups are nominally private, but closely connected to the state, which tends to extend them special privileges that make it more difficult for them to innovate and compete internationally. Size is great when it results from superior performance on the market, but not so good when it comes from subsidies and political connections.

Niaz: How can they overcome those challenges?

Peter: Newer and smaller organizations looking for sustained growth have to find a balance between doing the things that made them successful in the first place—acting with boldness and imagination, being willing to experiment, finding the right niche—and developing routines and capabilities that keep it going. Often there is a change in mindset; in the early stages, founders feel like outsiders, Young Turks shaking up the establishment with little to lose.  Over time, the competitive landscape changes, and the outsider becomes the incumbent. This creates two problems: the team may still be in startup mode, still fighting the old battles, or it may become complacent, unaware of the potential competitor around the corner.

Complacency is a common problem for any successful organization. Clay Christensen has shown how large companies—and, I’d add, other large organizations like universities—struggle to adapt the newest and latest technologies. They are often too successful at what they already do, too effective at serving their existing customers using existing methods, too reluctant to disrupt their existing revenue streams. Of course, large and successful companies can also be innovative, typically by delegating decision authority to subunits, providing strong incentives for performance-enhancing innovations, setting up “skunk works” and internal corporate ventures, and other strategies. But it is not easy, and many large firms fail to adapt to changing circumstances.

Niaz: What other countries can learn from Silicon Valley and from its culture, environment, attitude, and innovativeness?

Peter: As noted above, Silicon Valley is a unique case and difficult to duplicate. What we see there, as in other successful innovative clusters, is strong anchor entities (e.g., Stanford University, Fairchild Semiconductor in the 1950s and 1960s, Hewlett-Packard in the 1970s and 1980s), a concentration of highly skilled and highly mobile workers, local venture funding, and a dose of serendipity. Economists have been studying agglomeration—the benefits of locating similar or complementary activities in geographic proximity—since Alfred Marshall’s work in the 1890s. Paul Krugman’s academic reputation rests partly on his elaboration of Marshall’s insights (not, incidentally, for anything Krugman wrote on macroeconomics!). Once a cluster emerges, it can exploit economies of scale: skilled workers, attractive firms, and aggressive funders want to be located close to each other. The trick is to get the cluster started in the first place. Nobody knows exactly how—otherwise we’d have Silicon Valleys all over the place.

However, it’s also important to recognize another force, what we might call economies of diversity. The late Jane Jacobs masterfully demonstrated that the growth and vitality of cities stems not from the way they cluster similar or complementary people and activities, but how they bring together a wide variety of dissimilar, and seemingly unrelated ones. Exposure to new ideas and new ways of thinking is more likely in a diverse, heterogeneous environment. So maybe we should care less about same-industry clusters, and think more about how to encourage interactions among firms and industries doing radically different things.

Niaz: In this information age, now we seriously need to redefine, rebuild, and redesign our Higher Education to help us in pursuing entrepreneurial, actionable, and effective knowledge to learn, grow, and work to contribute in global economy. What are your suggestions to change and build an effective education system?

Peter: That’s a huge question. I can’t speak authoritatively on primary and secondary education but I have strong opinions on the structure of the higher-education industry in the US and Europe. Basically, the established universities are the privileged incumbents who tend to be swept away by the disruptive innovation Christensen talks about. Most are highly inefficient, slow to embrace new technology, and highly dependent on public subsidy. Technology has encouraged many new entrants, mostly at the low-quality end of the market. The incumbent universities have responded by discouraging people from consuming these entry-level products—“Those online, for-profit universities are fly-by-night organizations, they don’t offer real degrees like we do!”—but I do not think this strategy can succeed in the long run. At present the established universities are coasting on their reputation for quality. Reputation lags are long, so it may take time for consumers to begin voting with their dollars and feet for more innovative, lower-cost competitors.

In short, the higher-education industry is poised for a new generation of entrepreneurs, in both the for-profit and non-profit spaces, to experiment with new forms of educational content, new production and delivery methods, new ways to package information, and a range of further innovations we cannot yet foresee. MOOCs are but one highly visible manifestation of this. I find it ironic that the established universities are struggling to embrace the MOOC, seeing it as a way for them to leverage their brands and extend their market shares. They assume that, in the future, students in the developing world will be taking online courses from Yale or Illinois. I think it’s more likely that students in New Haven or Urbana-Champaign will take courses from some brilliant and articulate lecturer in Bangalore.

Niaz: To me a great entrepreneur is someone who understands economics, can see the big picture, and analyzes the things globally. He is also an economist, a research scientist, and a remarkable doer. What are the core things of economics and globalization should entrepreneurs be master at?

Peter: I think everyone should understand basic economics—say, by reading Henry Hazlitt’s classic Economics in One Lesson. Most of economic principles are common sense: there’s no such thing as a free lunch, benefits and costs should be compared at the margin, voluntary exchange is mutually beneficial, actions often have unintended consequences, and so on. Basic knowledge about globalization—the radical drop in communication and transportation costs, the often-surprising differences in legal, political, and social rules and customs around the world—is important too. But I don’t think a deep theoretical knowledge of economics or international trade is a prerequisite to successful entrepreneurship. Intuition and experience are typically more here valuable than “book learning.” (And I say that as a university professor!)

Niaz: What are your advices and suggestions to entrepreneurs to find big and complex problems, to build actionable business model to work to solve those problems, and to make this world a better place to live in?

Peter: The most important advice is not to listen to people like me. Seriously, one can fill a large library with books about entrepreneurship, innovation, competition, and business success, most written by scholars or journalists or policymakers without any experience or expertise with actual entrepreneurship. Thinking conceptually about entrepreneurship, and studying the great entrepreneurs of the past, can be useful and informative. Knowing basic accounting, finance, and marketing is important. But these things are neither necessary nor sufficient for entrepreneurial success. Entrepreneurial judgment, as Mises put it, “defies any rules and systematization. It can be neither taught nor learned.”

From a social or policy point of view, I think we need an environment in which those who wish to experiment with entrepreneurship can do so. Many people are attracted to “wicked problems,” for the intrinsic satisfaction of solving them as well as for financial gain, and we should allow people young and old, novice and experienced, to try their hands, knowing that they can reap the rewards if they succeed, but will have to bear the costs if they fail.

Niaz: Last but not least, if you could send a message about the benefits of entrepreneurship, what would it be?

Peter: As educators, I think it’s critical to remind people who are not entrepreneurs—I’m looking at you, politicians and journalists—that entrepreneurship is the driving force of a market economy, and that entrepreneurs need property rights, the rule of law, sound money, and free and open competition to be successful.

Niaz: Dear Peter, thank you so much for your valuable time and sharing us your invaluable idea, experience, and knowledge which will help us to pursue entrepreneurial excellence.  We are wishing you very good luck for your good health and for all of your upcoming endeavors.

Peter: Thanks for the great questions, and I look forward to reading future entries in your series!

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Further Reading:

1. Diego Comin on Entrepreneurship, Technology and Global Economic Development

2. Derek Sivers on  Entrepreneurship, CD Baby and Wood Egg

3. F. M. Scherer on Industrial Economy, Digital Economy and Innovation

4. Stephen Walt on Global Development

5. Robert Stavins on Environmental Economics

6. Ely Kahn on Big Data, Startup and Entrepreneurship

Derek Sivers: Entrepreneurship, CD Baby and Wood Egg

Editor’s Note: After making a living as a professional musician, Derek Sivers went looking for ways to sell his own CD online and ended up creating CD Baby, once the largest seller of independent music on the web with over $100M in sales for over 150,000 musician clients. In 2008, Derek sold CD Baby for $22M, giving the proceeds to a charitable trust for music education. Since 2008, Derek has traveled the world and stayed busy creating and nurturing creative endeavors, like Muckwork, where teams of efficient assistants help musicians do their “uncreative dirty work.” He is a frequent speaker at the TED Conference, with over 6 million views of his talks.

Sivers is also the author of ‘Anything You Want, which shot to #1 on all of its Amazon categories. His new company, Wood Egg, is publishing annual startup guides to 16 countries in Asia.

Derek writes regularly on creativity, entrepreneurship, and music on his blog: Sivers.org

To learn more about him, please read his amazing book ‘Anything you want, visit his official blog, read his Wikipedia Bio, watch his amazing TED Talks Weird, or just different?, How to start a movement, and Keep your goals to yourself.

You can also follow him on Twitter, Facebook and LinkedIn.

eTalk’s Niaz Uddin has interviewed Derek Sivers recently to gain insights about Entrepreneurship, CD Baby and Wood Egg which is given below.

Niaz: Dear Derek, thank you so much for joining us in the midst of your busy schedule. We are very thrilled and honored to have you at eTalks.

Derek: Thank you Niaz.

Niaz: You are a musician, programmer, writer and entrepreneur. You have founded CD Baby and MuckWork. You are also the author of an amazing book ‘Anything You Want’ which shot to #1 on all of its Amazon categories. In 2011, you have moved to Singapore and started your new company Wood Egg. At the beginning of our interview, can you please tell us about Wood Egg?

Derek: Starting five years ago, I got deeply curious about the differences between countries and cultures, fascinated with understanding the different perspectives. Two years ago, I moved to Singapore, and started visiting all the countries in Asia, asking dumb questions, making good friends.  But my learning felt too unstructured. So while walking around Yogyakarta, Indonesia, remembering “the best way to learn something is to teach it”, I came up with an ambitious plan. I decided to produce and publish 16 books per year on 16 countries in Asia: Cambodia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Mongolia, Myanmar, Philippines, Singapore, Sri Lanka, Taiwan, Thailand, and Vietnam. Knowing they wouldn’t be great at first, I committed to improving them every year for many years. After a few years of doing this, they should be pretty awesome.

Niaz: Can you please tell us why have you moved to Singapore? 

Derek: Really it’s just understanding a different point of view.  And not just visiting, but really living somewhere long enough so that it really feels like home.  We’re so surrounded by people who think like us that it’s impossible to see that what we think are universal truths are just our local culture.  We can’t see it until we get outside of it.

Niaz: What have you learned about the entrepreneurial environment of Asia? How is it different from other cultures?

Derek: I was born in California and grew up with what I felt was a normal upbringing with normal values.  I was speaking to a business school class here in Singapore. I asked, “How many people would like to start their own company some day?” In a room of 50 people, only one hand (reluctantly) went up. If I would have asked this question to a room of 50 business school students in California, 51 hands would have gone up!  Thinking maybe they were just shy, I asked, “Really!? Why not?” – and asked individuals. Their answers:  1. “Why take the risk? I just want security.” 2. “I spent all this money on school, and need to make it back.” 3. “If I fail, it would be a huge embarrassment to my family.”  Then I realized my local American culture. The land of entrepreneurs and over-confidence. I had heard this before, but I hadn’t really felt it until I could see it from a distance.

Niaz: What are the cultural challenges to build, operate and sustain next big organization like Apple, Google, Amazon, Facebook or Twitter from Asia?

Derek: The sense of possibility.  When you live in New York City or Los Angeles, you see famous people around you all the time.  If you want to be famous, seeing those people next to you gives you the feeling that you’re very close to your dreams – you’re in the place where it can happen.  But if you’re living in Urugay or Estonia, you feel that you’re a world away from that kind of fame.  So once a few super-ambitious people have a big international success with a company out of Indonesia, for example, it will give huge encouragement to other people from Indonesia – to give them the feeling that they are so close – that they can do it.

Niaz: What are the necessary steps should be taken to overcome those challenges for making a welcoming, sustainable and supportive environment for entrepreneurs?

Derek: Just do what Singapore and Hong Kong are doing.  They’re doing everything right.  Mix in a little of India’s “jugaad” rule-breaking culture, for a real winning combination.

Niaz: We love to say about breaking the rules though it happens in reality very rarely. You are one of those few remarkable people who have broken so many rules for making things happen, specifically while working with CD Baby. You had a moment you describe in the book when all the MBAs and VCs were asking you “What’s your plan, what’s your growth rate, what are your projections?” And you basically said, “My focus is on helping the customers, and as long as we’re doing that, I don’t care about the projections.” Business Students invest Hundreds of Thousands of Dollars in Top Business School to learn planning, strategy, growth, leadership and setting goals. And you have build CD Baby and sold it for $22 Million where you have not literally cared about planning, forecasting, strategy, and even growth. Can you please tell us about the evolution and success story of CD Baby?

Derek: Ah, it would take about 88 pages to properly tell that story, but that’s why I wrote “Anything You Want”.

Niaz: Can you please briefly tell us about ‘Anything You Want’?

Derek: It’s only 88 pages, a $4 purchase on Amazon, can be read in under an hour, and really tells the tale from beginning to end of starting CD Baby, growing it beyond my wildest dreams, the mistakes I made along the way, then selling it for $22 million, as you said.  It’s distilled down to “40 Lessons for a New Kind of Entrepreneur”, as the publisher put it.  I’m not just telling my story, but looking back, found some important and usable lessons that you can apply to your own business.

Niaz: Now StartUp means finding an idea, taking seed funding, inviting angel investors and ending up taking fund from Venture Capital. It’s really a very complex cycle. I know it has two sides like a coin. In one side it’s tough to get funding. In other side, it’s tough to get right funding and advisers. Vinod Khosla, one of the co-founders of Sun Microsystems who later went on to create Khosla Ventures, cited in Techcrunch Disrupt SF 2013, ‘95 percent of VCs add zero value. 70-80 percent add negative value to a startup in their advising’. As it’s the scenario, you have had a great and different story. You have done great job with CD Baby and made it a multi million dollars company without taking help from VC. How can an entrepreneur build multi million Dollars Company without taking help of VCs? Is it possible now? Can you please explain it for us?

Derek: I know less-than-nothing about investors, VCs, or any of that.  Never dealt with them.  Asking me how to make a company without them is like asking an Argentinian farmer how he grows his crops without the Empire State Building.  It’s just not a part of my world, so I don’t even know how to compare my approach to another.

Niaz: What are your secrets of taking initiatives and how do you stay confident on taking those risky and challenging initiatives?

Derek: I’ve never done anything that felt risky or even challenging.  When you’re on to something good, and you’re the right person to do it, it just feels like common sense, and quite obvious.  If it feels too risky, too challenging, maybe it’s an unwise venture or maybe you’re the wrong person to do it.

Niaz: Many people now believe that we have already solved all of our interesting problems. New StartUps and companies are also working on almost similar basis. By any chance, if someone is coming with a great idea, rest of the others are getting into it and ending up creating mess. Can you please tell us about how to find really big and interesting problems, working on it in the long run to solve those problems and ending up building next big organization?

Derek: You don’t need big problems or big organizations like you don’t need big passion.  A few times, I’ve been asked a question like, “But what if I haven’t found my true passion?” It’s dangerous to think in terms of “passion” and “purpose” because they sound like such huge overwhelming things.  If you think love needs to look like “Romeo and Juliet”, you’ll overlook a great relationship that grows slowly.  If you think you haven’t found your passion yet, you’re probably expecting it to be overwhelming.  Instead, just notice what excites you on a small moment-to-moment level.  If you find yourself diving into a book about Photoshop and playing around with the program for hours, go for it! Dive in deeper. Maybe that’s your new calling.  For me, CD Baby was just a curiosity: that little hobby that kept me up until 2am every night, programming and experimenting. It just grew from there.

Niaz: Based on your exciting entrepreneurial career and the lessons you have learned over the years, can you please list 10 advices for Startup Company to survive, to grow and to go global?

Derek: I can’t, because it’s different for everyone.  When someone shows me their business plan and asks what they should do, I say, “Well – who are you? What kind of life do you want? Easy? Challenging? Why are you doing this? Money? Impact? Love? To prove something to the high school bully?”  Businesses are not the same.  Business paths are not the same.  Motivations are not the same.  No list of 10 advices apply to everyone.  And I can’t separate business and people.  What you should be doing with your business depends on who you are as a person, not on the business itself.

Niaz: What excites me mostly about you is your Humanistic Perspective of Entrepreneurship. Can you please tell us about the humanistic perspective of entrepreneurship?

Derek: I don’t understand how the two are different or separated in any way.  It’s like asking about the humanistic perspective on marriage.  It’s 100% completely and thoroughly human.  What’s good for business?  What’s good for people!  What’s good for each customer?  What’s good for each person working there?  What’s good for the owner?  These are inseparable questions.

Niaz: Do you think humanistic perspective of entrepreneurship is seriously big thing that will help entrepreneurs to be more human to solve real big problems of this mother earth to make it a better place to live in?

Derek: No.  I don’t think that big.  But I’m glad you do.

Niaz: What’s the one last thing you want to tell us?

Derek: Don’t make your business like someone else’s business.  Don’t make your life like someone else’s life.  Ignore people who tell you what you should be doing because someone else did.  Your life, joys, and motivations are different than theirs.

Derek: Thank you so much for sharing us your invaluable ideas, knowledge and experience. We are wishing you very good luck for all of your upcoming endeavors.

Derek: Thanks Niaz.  I really appreciate it.  Sorry I don’t have very many answers.

_  _  _  _  ___  _  _  _  _

Five Inspiring Quotes By Derek Sivers:

#1

You grow (and thrive!) by doing what excites you and what scares you everyday, not by trying to find your passion.”

#2

Success comes from persistently improving and inventing, not from persistently pushing what’s not working”

#3

You can’t please everyone, so proudly exclude people”

#4

Anything you hate to do, someone else loves. So find that person and let him do it”

#5

If you really care about starting a movement, have the courage to follow and show others how to follow. And when you find a lone nut doing something great, have the guts to be the first one to stand up and join in”

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Further Reading:

1. Jeff Haden on Pursuing Excellence

2. Daniel Pink on To Sell is Human

3. Barry Schwartz on Wisdom and Happiness

4. Hugh Mac­Leod on Creativity and Art

5. Shaka Senghor on Writing My Wrongs

Ely Kahn: Big Data, Startup and Entrepreneurship

Editor’s Note: Ely Kahn is the Co-founder and VP of Business Development for Sqrrl, a Big Data Startup. Previously, Ely served in a variety of positions in the Federal Government, including Director of Cybersecurity at the National Security Staff in White House, Deputy Chief of Staff at the National Protection Programs Directorate in the Department of Homeland Security, and Director of Risk Management and Strategic Innovation in the Transportation Security Administration. Before his service in the Federal Government, Ely was a management consultant with Booz Allen Hamilton. Ely has a BA from Harvard University and a MBA from the Wharton School at the University of Pennsylvania.

You can find him on Twitter and LinkedIn. Learn more about his Big Data Startup Sqrrl [here]

eTalk’s Niaz Uddin has interviewed Ely Kahn recently to gain insights about Big Data, Startup and Entrepreneurship which is given below.

Niaz: Dear Ely, thank you so much for joining us in the midst of your busy schedule. We are very thrilled to have you at eTalks.

Ely: My pleasure. Thank you for having me.

Niaz: You’re a former management consultant and senior government official who turned Big Data Entrepreneur. At the beginning of our interview, can you please tell us something about entrepreneurship? What is entrepreneurship? Why are you an entrepreneur?

Ely: While in government, I viewed myself as an “intrapreneur”, and I focused on developing new public sector programs that could disrupt traditional ways of doing business.  Moving to private sector entrepreneurship was a natural evolution for me.  Entrepreneurship takes all different forms, but the type of entrepreneurship that is most interesting to me is modeled around Clayton Christensen’s theory of “Disruptive Innovation.”

Niaz: You have a BA from Harvard University and a MBA from the Wharton School at the University of Pennsylvania. You’ve served in a variety of positions in the Federal Government and before your service in the Federal Government; you were a management consultant with Booz Allen Hamilton. How have you transformed your career into entrepreneurship and why? What’s the most exciting thing about entrepreneurship to you?

Ely: Innovation has been a key theme in all my jobs so far and cuts across consulting, government, and startups.  However, business school was actually an incredibly valuable tool for making the transition from government to a technology startup.  More than anything, it was two years that allowed me to explore different startup ideas in a very low risk environment.

The most exciting thing about entrepreneurship for me is the continuous learning environment.  Every week it seems I am picking up something new across a wide variety of functional areas, including sales, marketing, business development, product management, and finance.

Niaz: You’re the Co-founder and VP of Business Development of Sqrrl, a Big Data company. How did the idea Sqrrl come up and how have you started?

Ely: Sqrrl’s technology has its roots in the National Security Agency (NSA) and that technology is called Accumulo.  Accumulo powers many of NSA’s analytic programs.  I was introduced to the NSA engineers that helped create Accumulo while I was in business school, and from there I started to put together the business plan and investor pitch to commercialize Accumulo.

Niaz: At this point, can you please kindly tell us a bit of funding? Who are the core investors at Sqrrl?

Ely: We have two world-class investors:  Atlas Venture and Matrix Partners.  We closed a $2M seed round with them in August 2012.

Niaz: So everything you are doing at Sqrrl is all about Big Data and Big Data Products. Can you please tell us what is Big Data?

Ely: Big Data is generally referred to as data that cannot be processed using traditional database technologies because of the volume, velocity, and variety of data.  Big Data typically includes tera- and petabytes of structured, semi-structured, and unstructured data, and examples are sensor data, social media, clickstreams, and log files.

Niaz: Why do you think Big Data is the next big opportunity for all of us?

Ely: Big Data technologies like Hadoop and Accumulo enable companies to analyze datasets that were previously too expensive or burdensome to process.  This analysis can become new forms of competitive advantage or can open up completely new lines of business.

Niaz: How do you define Big Data Product? Can you please give us some examples of Big Data products?

Ely: Big Data products span a wide range of technologies, including storage, databases, analytical tools, and visualization platforms.  Two classes of Big Data technologies that are of particular importance are Hadoop vendors and NoSQL database vendors.  Hadoop + NoSQL enable organizations to process petabytes of multi-structured data in real-time.

Niaz: How will Big Data products change the perception of building products?

Ely: Many Big Data products are still “crossing the chasm” from early adopters to mainstream users.  However, these products have the potential to bring the power of massive parallel computing to many companies.  Historically, these types of capabilities have been the domain of massive web companies like Google and Facebook or large government agencies like the NSA.

Niaz: Now can you please briefly tell us about Sqrrl?

Ely: Sqrrl is the provider of a Big Data platform that powers secure, real-time applications.  Our technology leverages both Apache Hadoop and Apache Accumulo, which are open source software technologies.

Niaz: What are your core products and who are the main customers of Sqrrl?

Ely: Our technology offering is called Sqrrl Enterprise and it enables organizations to securely bring their data together on a single platform and easily build real-time applications that leverage this data.  Some of the use cases for Sqrrl Enterprise include serving as the platform for applications that detect insider threats in financial services companies or serving as the platform for predictive medicine in healthcare companies.

Niaz: You’ve started at August 2012. How’s company doing now?

Ely: The company is doing great.  We now have about 20 employees and a number of customers in a variety of industries.

Niaz: What is your vision at Sqrrl?

Ely: Our vision is to enable organizations to “securely analyze everything.”  Our Big Data platform helps organizations perform analytics on massive amounts of data and often times this data has very strict privacy or security requirements on it.

Niaz: How big is Big Data industry?

Ely: According to the analyst firm Wikibon “the Big Data market is projected to reach $18.1 billion in 2013… [and] on pace to exceed $47 billion by 2017.”

Niaz: What do you think about the other Big Data startups? How’s Big Data community doing?

Ely: There is an amazing ecosystem of Big Data startups that are doing some amazingly innovative things.  I am paying particular close attention to startups focused on machine learning and data visualization, as these are complementary areas to our product.

Niaz: Well, we all know that starting a company is not an easy task for us. So, can you please put in the picture what are the difficulties of starting a company we may face?

Ely: The thing that is fascinating about doing a startup is that there is a never ending series of challenges:  raising funding, hiring, finding product-market fit, customer acquisition and retention, and the list goes on.  The key is to be continuously prioritizing where to spend your time.

Niaz: What have you learned by starting a company?

Ely: I have learned many things, but the lesson that I am continuously learning is to be resilient.  Startups are inevitably filled with small failures, but the key is to quickly learn from them to avoid any large failures.

Niaz: What are the mistakes an entrepreneur can make in the early stage?

Ely: I think the biggest mistake that an entrepreneur can make is being afraid to make mistakes.  Early stage entrepreneurs need to be continuously running experiments to find product-market fit.

Niaz: Can you please share some of your life lessons for our readers?

Ely: Stay humble.  Entrepreneurship requires both luck and skill, and I think people sometime mistake luck for skill.

Niaz: Thank you so much for joining us and sharing your invaluable ideas, insights and knowledge. We are wishing you very good luck for the greater success of Sqrrl.

Ely: Many thanks.

_  _  _  _  ___  _  _  _  _

Further Reading:

1. James Allworth on Disruptive Innovation

2. Viktor Mayer-Schönberger on Big Data Revolution

3. Gerd Leonhard on Big Data and the Future of Media, Marketing and Technology

4. Brian Keegan on Big Data

5. Irving Wladawsky-Berger on Evolution of Technology and Innovation

Trond A. Undheim: Entrepreneurship and Social Change

Editor’s Note: Trond A. Undheim, Ph.D.,  has over fifteen years of multi sector experience in strategy, policy, communications, academia, and entrepreneurship. Currently, he is a Senior Lecturer at MIT Sloan School of Management. Formerly, he was a Director of Standards Strategy and Policy at Oracle Corporation, with wide responsibilities in long-term business development, strategy, public policy and standardization globally and in Europe. Trond is an executive, speaker, entrepreneur, author, traveler and blogger. You can read his full bio from here.

eTalk’s Niaz Uddin has interviewed Trond A. Undheim recently to gain insights about Entrepreneurship and Social Change which is given below.

Niaz: Dear Trond, thank you so much for your time in the midst of your busy schedule. We are honored to have you at eTalks. You teach Global Economics and Management as a Senior Lecturer at MIT Sloan School of Management. You are a leading expert on strategy, technology policy, entrepreneurship and the role of technology in society. At the beginning of our interview can you please tell us about entrepreneurship?

Trond: Entrepreneurship is to see, seize and share an opportunity to change something for the better in a lasting, institutional way, by creating a company, entity, program or initiative which provides services, generates products or makes concepts that can be traded or enjoyed by many. That was a mouthful, I guess: entrepreneurship is about embracing risk, change, and convincing people—this is sometimes hard.

Niaz: What is the significance of entrepreneurship in global economy?

Trond: As the trading of physical commodities gradually shrinks, entrepreneurship is about to become the only valuable commodity in the global economy. The reason is—it is all about flexibility. All sources of comparative advantage are temporary. The time window for innovation is arguably getting somewhat shorter every minute. This being said, entrepreneurship takes many forms. It is not just about startups, and the culture of entrepreneurship is different in each country. In my work with Global Entrepreneurship Lab (G-Lab), at MIT Sloan School of Management, I have found that even as emerging markets are at different stages of development and each have their own culture, the desire to innovate is the same among young entrepreneurs everywhere. All they want and need is to see good examples in front of them. Our student teams help out with getting quicker through the process, escalating change throughout society. But it starts one-on-one. It must build up. So, as significant as entrepreneurship might be, it is a slow force.

Niaz: How are technology, innovation and entrepreneurship integrated with each other? How can this integration be a help for the global economy?

Trond: There is entrepreneurship without technology but it is less effective. There is technology without entrepreneurship but it is futile and short lived. There is innovation wherever there are people connecting the dots between entrepreneurship and technology.  Without integrating the three, there will be no global economy, only elite pockets of internationalization.

Niaz: Do you think technology, innovation and entrepreneurship could be the solution to Poverty? How?

Trond: Despite new solar cooking devices, peer lending schemes, or cell phone empowered social movements, there is no single solution to poverty. For too long, technology has been thought of as a panacea that solves all problems, but we are far from it. Technology opens certain opportunities and forecloses others. Moreover, even though it initially may seem technology transforms opportunities for everyone, it usually, in the end favors the established elite or those who have resources to take the most advantage of it. This is the reason there are still problems everywhere we look around us, despite what many call ‘technological progress’, ‘information age’ or ‘globalization’.

We have increased the differences between people, and hence the opportunity both to succeed and to fail, spectacularly. Herein lies the challenge of integration; the globally economy theoretically connects things, but someone needs to establish those connections and re-establish connections when broken. Innovative initiatives that mobilize people, share information, gather knowledge, discuss best practices, or create marketplaces of ideas, products and services across boundaries of time, place, resources, and ability, will definitely contribute to the poverty issue in various ways. However, the issue is too complex for one strain of innovation to transform it all. Change needs to trickle down. Change needs to spread out. Change needs to bubble up. Poverty is clearly a multi-faceted problem that will fascinate, frustrate and motivate smart people, organizations and institutions to act for decades to come.

Niaz: Throughout history, high tech industries mostly belong to developed countries. As a result, under developed and developing countries alike have lagged behind. Can you please suggest us some ways to help those countries to come up with proper strategies to get involved with high tech industry to contribute to the global economy?

Trond: High tech industries are fostered by individual initiative, investors who are willing to take risks, and by a willingness to go to or even create markets where there yet are none. However, as small ecosystems of high tech entrepreneurship start forming even in countries that are not yet on the radar as emerging economies, each time, it gets easier. The challenge is to get enough launch momentum. Typically, what we see is that entrepreneurs, given such challenges, either are funded from outside the country by particularly risk prone or long perspective persons or institutions, or are a result of family money. Only in a few cases will angel investors emerge on their own, since they typically are former high tech entrepreneurs themselves. One strategy is for government incentives to stabilize and attract expats back to contribute. Another is to focus attention on particular locations around a strong university. A third is to build the products at home but use the born global concept to immediately try to act on the global market, or more realistically, one selected foreign market.

Niaz: You worked at Oracle Corporation as the director of standards strategy and policy, where you lead global business development, drove standardization, and influenced government policy in the EU. What do you think about the core challenges of entrepreneurs of third world countries have in order to come up with great ideas to build global technological business as well as to contribute in global economy?

Trond: The core challenge is to acquire the right set of skills and grasp the attention of funders and potential customers early enough, and before your money (and motivation) run out.  Moreover, another tough challenge is to convince the establishment that ideas matter, which means people around the entrepreneur—the first clients and investors must not just nod to existing power structures. They may need to be prepared to accept causing a bit of a stir. Entrepreneurship is a dangerous force to those not prepared to change or to those with vested interests to defend, such as established ways of doing things, monopoly markets, successful products, or healthy revenue streams that may be threatened by a new entrant, however small.

In terms of standardization, entrepreneurs should keep in mind that one thing is to have a novel idea, but a whole other thing is to be able to enact infrastructure change across a whole new market. To do that, you need to think in terms of standards, following standards, shaping standards, creating new standards that people will go along with. It is a negotiation game. You either join or try to create an ecosystem and then try to make it surround you and your customers. You cannot go it alone. Even Oracle learned that, early on, as that company was a startup facing the giant IBM. Oracle picked up the importance of having a database standard and built a great product around it. Look at where it is today. Larry Ellison can create a Japanese lake in California, own luxurious boats, and buy a Hawaiian island. Not a bad life to some. But, frankly, I think entrepreneurship is about much more than the money you create. It is about the relationships you build and the pride you get out of creating something new and at the same time something lasting.

Niaz: How to overcome those challenges?

Trond: I think the best way to overcome such challenges is to enlist team members who have experience from abroad. That way, you can bring change along with you. The other thing is to align with the forces for change within the country. You cannot turn everyone, but you actually only need to turn one-by-one. Every entrepreneur has heard this, and everyone knows what it means: be prepared not to take no for an answer. Beyond that, you need to find something that is actually doable. There are many good ideas out there but not all are doable. Doable for you, that is, in your situation. Make sure you have a good story. Storytelling can overcome most challenges. Even dictators, monopolists, and old money love a good story.

Niaz: You have also served as the national expert of e-government in the European Commission, where you created ePractice.eu, the world’s most successful best practice initiative in e-government, e-health, and e-inclusion. Can you please give as a brief of these terms: e-government, e-health, and e-inclusion?

Trond: E-government is when public services are reorganized and ideally improved or made cheaper or more convenient using ICT, although that is a tall order. E-health applies ICT to citizen/patient interaction, health-service providers, institution-to-institution transmission of data, or all of the above. E-inclusion aims at reducing gaps in ICT usage in order to improve economic performance, employment opportunities, quality of life, social participation, and cohesion.

Niaz: What is the response to the ePractice.eu initiative? What are the significant changes that have occurred because ePractice.eu?

Trond: ePractice.eu blends online and offline interaction on good practices in using ICT for services of public interest. It brings a varied set of around 100,000 stakeholders together, government policy makers, consultants, the ICT industry, NGOs etc. So far, it contains 1626 self –submitted cases from 35 countries around the world, For the EU, it has radically improved information and knowledge sharing. It has achieved significant momentum. Joining the community has tangible value, people attend workshops, contribute views, share, and learn. It is a true knowledge community, virtual and physical.

Niaz: What are the steps could be taken by the policy makers of third world country to get the maximum benefits of e-government, e-health, and e-inclusion?

Trond: As the UN e-government survey reveals each year, there are indeed gaps between nations’ internet readiness. This is unfortunate but something we all need to take into account. The issue is not just access to the internet, but what content is accessible once you are on the internet and which skills you have to make sure you can benefit and contribute. The challenge is multifaceted: education, training, specific skills, infrastructure, and content. Even the countries who have invested a lot of resources occasionally, some would say too often, get it wrong. This stuff is not simple. You need awareness across the supply and delivery chains.

Niaz: You have published your book ‘Leadership From Below’. Can you please give us a brief of ‘Leadership From Below’?

Trond: Leadership From Below, for me, is two things. A perspective on leadership: No need for a position in a hierarchy to have influence. A perspective on life: lead when you need.  There are many books out there right now tapping into the fact that the web seemingly has lowered barriers to lead. However, what I am saying is not that. There are still barriers. Technology is not really the point here, although it can help (and hurt). The point is to reconfigure the notion of what it actually means to lead. It simply has nothing to do with somebody giving you power from above (despite what those who elect the pope might think). True power can only emerge from below, from trusted relationships. Even God Almighty in Christendom was of the opinion that it was wiser to send his son Jesus to earth to convince people of the state of things than to simply tell them with a roar from above.  Even smart CEOs realize this. They know they are accountable to the Board, to shareholders, and to society at large (well, at least some CEOs think this way).

Leaders at all levels need to reflect upon what it takes to achieve real, lasting influence. Using force always has a cost. In fact, getting your way always has a cost, especially if it is recognized that you benefit from it. Instead, leaders need to embrace the somewhat slower, but surer process of involving peers in small-scale change efforts that have ripple effects across teams, organizations, and societies.

So, leadership from below is not simply a message to a new generation of leaders, or to small-scale leaders. It is the essence of true leadership. Leadership from below is not just a trend. In fact it is a stable feature of any society but it has recently become trendy. Oh, and one more thing, I did not write the book to say we should not accept any authority. My view is not anti-hierarchy, but a-hierarchical, or beyond hierarchies. I say: Follow when you can. Lead when you need.  Finally, since I wrote the book back in 2002, I have reflected a bit more and taken in some criticism, too. As it turns out, hierarchy remains systemic part of society. The reason is complexity. Things are getting complicated out there. The other is delegation. People love to delegate. Once you delegate, you give up power.

Niaz: What is the set of advice you would like to leave behind for technology geeks, innovators and entrepreneurs?

Trond: I wanted to leave a little piece of advice from my research on strategy failures in high tech entrepreneurship. First of all, it seems too few of us are willing to take a serious look at negative outcomes. This is unfortunate because there is a lot of learning to be had. But since those stories are often buried (although I am about to uncover some), every time you hear of a success story, try to find out what challenges have been overcome to get there. You will soon find that it is often those who have overcome the greatest challenges who succeed in the long term. Why, well, because they have also learned resilience.

If you want to learn more about this, follow my research on strategic outcomes in Cleantech firms. Essentially, we know that a lot of cleantech companies have failed over the last decade. There are many reasons why, but for the benefit of humanity, we need to ensure that some succeed and clean up our planet before it is too late. This is my agenda. It turns out both governments, multinationals, VCs, and entrepreneurs are interested in my work. We should indeed learn more from failure and we should talk about it. There is no shame in failing as long as you can reflect around how to do things different next time, or tell others about the perils of the unforeseeable unforeseen.

Niaz: Thank you so much for sharing us your ideas. I am wishing you good luck for all of your endeavors.

Trond: You are very welcome. It was a pleasure to speak with you, Niaz, and best of luck in your exciting entrepreneurial endeavor, eTalks. What a great concept: asking a set of great questions to people and change agents across the globe over email and letting them answer these questions on their own time without the pressure of a word limit or timeline. This is perhaps one of the keys to the future of communication: letting people speak. Sounds simple but it rarely happens.

_  _  _  _  ___  _  _  _  _

Further Reading:

01. Philip Kotler on Marketing for Better World

02. Hugh Mac­Leod on Creativity and Art

03. Daniel Pink on To Sell is Human

04. Naeem Zafar on Entrepreneurship for the Better World

05. Derek Sivers on  Entrepreneurship, CD Baby and Wood Egg

06. Jeff Haden on Pursuing Excellence

07. Rita McGrath on Strategy in Volatile and Uncertain Environments

08. Gautam Mukunda on Leadership

09. Gerd Leonhard on Big Data and the Future of Media, Marketing and Technology