My Beauty Best Teacher

If you’re interested in education (which means you’re thinking abou the future), you should watch JSB’s keynote from the DML conference this week. “Entrepreneurial Learning isn’t about creating entrepreneurs. It’s about people having an entrepreneurial way of learning.” “Entrepreneurial Learners are Makers and Tinkerers.” Tinkering is a way of dealing with constant change.

To eke out a living, poor entrepreneurs like Bouazizi -- not just in Tunisia, but across the world -- have little alternative but to join the local extralegal economy with its own rules for making transactions and protecting assets. Bouazizi, for example, paid 3 dinars a day for the regular use of a location on the street -- what the ILD calls an "extralegal property right." According to our research, he had worked his entire life to establish a small place in the local market economy -- and lost it in a matter of minutes.

During our research we found hundreds of small enterprises like Bouazizi's, run by Tunisians with no legal identity, no legal address, and no legal right to their shack or market stall. Without legal documents, their ability to make the most of their assets is limited, and they live in constant fear of being evicted or harassed by local officials. According to our research, around half of the entire Tunisian workforce is employed by extralegal businesses of this kind. Around the region, the number is far larger -- over 100 million Arabs.

If committing suicide over the loss of $225 worth of goods and a regular location on the street for a fruit stand seems inconceivable to most people in the United States and Europe, Bouazizi's counterparts throughout Tunisia and in the extralegal economies in the rest of the Arab world understood immediately his desperation. In their eyes, Bouazizi had not been just the victim of corruption or even public humiliation, as horrible as they are; he had been deprived of the only thing that stood between him and starvation -- the loss of his place in the only economy available to poor Arabs.

Image courtesy of Parallel Zero

They started off from nothing in the Fifties and became amongst the richest in their homeland, Togo. They're the Nana Benz, the women who sell traditional African fabrics. Particularly the sought-after “wax” which is printed in Holland. They've made a fortune, they've travelled the world over, becoming a reference point for the fabric trade in Western and Central Africa. They were the first to purchase what, at the time, was a real status symbol: the Mercedes Benz. Hence their name. Today their fame has waned a little. And the economic crisis has affected them too. Turnover has dropped, but they're still here, together with their daughters – the Nanette, - to whom they've entrusted their work. You can find them in the Grand Marché in Lomé or in the boutiques around the city. Keeping always an eye on their businesses.

"Most investment funds that have been set up in the social/impact spaces (i.e. Impact50) are focused on mezzanine and growth stage investments (in other words: if you are already making money, we may invest our money; if you are not, then you are too early)"- Laurie Lane-Zucker

If you combine that fact with the undeniable requirements for investments in risky endeavors, especially when challenges require invention and innovation, you can see not just the Ponzi scheme but a nearsighted lens on executing the hard stuff. Hard stuff is not just collecting information on a mobile phone about health, it's about creating that diagnostic or treatment device for you to do something about it in the first place. Hard stuff is not just creating a super mashed up version of a business model that assumes social entrepreneurs actually enjoy a strange lifestyle that combines exotic conference locations with a struggle-pay-their-student-loan lifestyle. Hard stuff is investing in the SE startup facing the reality that the co-founders have 10 different options in the non-SE space that will be meaningless, yet investible. The hard stuff makes an impact and it's a road worth travelling. We're just going to have to find better vehicles than Cinderella pumpkins.

The new African middle class will flourish in knowledge centers that are connected to the global economy. The seeds of such growth can be found in places like Ikeja, the nascent computer-based industrial district of Lagos, and emerging knowledge-based industries such as Nigeria’s movie production network (“Nollywood”) will produce a new crop of entrepreneurs ready to shape the character of the next generation of middle-class Africans.

The shops are stacked six feet high with goods, the streets outside are jammed with customers and salespeople are sweating profusely under the onslaught. But this is not a high street during the Christmas-shopping season in the rich world. It is the Onitsha market in southern Nigeria, every day of the year. Many call it the world’s biggest. Up to 3m people go there daily to buy rice and soap, computers and construction equipment. It is a hub for traders from the Gulf of Guinea, a region blighted by corruption, piracy, poverty and disease but also home to millions of highly motivated entrepreneurs and increasingly prosperous consumers.
Over the past decade six of the world’s ten fastest-growing countries were African. In eight of the past ten years, Africa has grown faster than East Asia, including Japan. Even allowing for the knock-on effect of the northern hemisphere’s slowdown, the IMF expects Africa to grow by 6% this year and nearly 6% in 2012, about the same as Asia...[continue reading]

Private citizens were the first to connect Wenzhou to neighboring regions by building roads, bridges, and highways, as well as the city’s airports and substantial portions of the dock. Even today the city is scattered with infrastructure investment firms through which groups of businessmen pool money to build the transport routes they all need to get their goods from factory to the point of sale. The result is not pretty. Aside from the confusion faced even by residents driving into the city, it is not uncommon to see sidewalks torn up to insert piping, with seemingly no intention of replacing the concrete. Nevertheless, the system is crudely efficient, merchants can all easily access factories, and the factories in this geographically isolated city now have sales networks that span the globe. ...

Images courtesy of Reason

The streets around the railway station are covered in stalls selling $3 blue jeans and $5 boots. There’s a city block dedicated to baby clothes next to a street that sells plastic signs for bathroom doors. In one run-down alleyway you’ll see people repairing televisions, making blankets, and selling fruits, vegetables, and poultry (live or dead). Further outside the center, you can find small shops dedicated to aluminum rods, sheet metal, tire rims, and tires. ... Pool halls are set up wherever there’s open space that you can set a tarp over. Gambling dens are openly advertised. Taxi drivers often drive off the meter. The karaoke parlors are numerous, and almost all of them double as brothels. The poorest residents take part in one of the largest citizen recycling programs anywhere in the world. In an alley one family collects scraps of fabric to sell to the local textile mills, another hoards scraps of paper and cardboard to send to the paper mills, and in front of a lot that looks like it is being used for a garbage dump, a man has set up a secondhand goods shop.

Uncle Joe's roofing sheet fabrication facility

At first glance,there’s nothing extraordinary about the shed sitting next to Uncle Joe’s mud brick home in the coastal Ghanaian village of Atabadze.Inside there’s a certain familiarity about the clutter – tools propped up against stacks of roofing sheets and machinery – the kind of organized chaos you’d find in tool sheds and workshops anywhere in the world. But the sheer ordinariness of it of all belies the fact that this is the birthplace of a remarkable and important technology.Those roofing sheets – Uncle Joe made them,out of local river sand,using only his own ingenuity and the electric vibrating table in the corner – he made that too.
Uncle Joe is an innovator.He has brought his community something they never had before:a roofing material that is both sturdy and affordable.Before his intervention,his neighbours had a hugely unsatisfactory choice between using expensive,often imported, manufactured materials, or local unprocessed thatch, at a fraction of the price,but at the cost of durability;there was no middle ground.But Uncle Joe was not so sure this was necessarily a matter of ‘either or’; why couldn’t there be an alternative that was both manufactured and local, he wondered.
So he set about answering his own question,experimenting with local environmental inputs and different manufacturing processes.And through his efforts he developed a process to produce roofing sheets from river sand – a sturdy,high quality product The poor need opportunities to generate income and work themselves out of poverty manufactured from a sustainable local resource. To produce these sheets,Uncle Joe even had to build his own electric vibrating table,a vital piece of machinery that blends the sand with a small quantity of cement (added as fixative),enabling the mixture to set.All in all,an unlikely triumph of innovation considering the poor infrastructure and extremely limited availability of capital and manufacturing know-­‐how in his rural locality.
Uncle Joe is a prime example of the creativity and dynamism that are blossoming in Africa; one of the manyindividuals and communities championing innovative technologies that,by mobilising local resources to provide essential goods and services,and create income generation opportunities for the poor,can deliver sustainable and equitable ‘grassroots’development across the continent.And yet his story also illustrates the uphill task they face.
For all the originality of his idea and his dedication to implementing it,Uncle Joe cannot currently make ends meet manufacturing tiles – he simply cannot afford to hire the labour he needs to produce viable volumes.Without capital,his operation will not reach a level at which the technology can really impact the livesof the poor.

For the global development community (donors,NGOs,etc) Uncle Joe’s story is one of opportunity: it highlights an opportunity forthem to create the opportunities the rural poor need to work their way out of poverty.To date the governmental and multilateral institutions with the resources and clout to change the lives of those living in poverty have favoured...To make meaningful inroads into poverty reduction in Africa,the development community must foster the growth of robust local industries that mobilise the continent’s substantial environmental resources to meet local needs and create opportunities.Technologies like Uncle Joe’s manufacturing process are the foundation on which such industries are built,and donors should support their development,whether by investing in the entrepreneurs pushing innovative local solutionsor by providing the tools and training rural communities can use to unlock the developmental potential in their local environment.

“ICT4D” represents a mental roadblock. A term that brings as much baggage with it as a sea of white SUVs, representing the humanitarian industrial complex’s foray into the digital world. It means we’re trying to airlift in an infrastructure instead of investing in local technology solutions. Like the SUVs, it’s currently an import culture that will not last beyond the project’s funding and the personnel who parachuted in to do it.

First, the African technology startup scene is young, but it’s ready to be treated as a real industry with real investors looking to make real returns. When the people who are doing business and making money in African tech get a sniff of an “ICT4D” project, they immediately dismiss it – labeling it as a special needs project where the regular rules don’t apply.

Second, the funds and work put into this space by the NGOs are creating a false floor in the economy. They’re undermining the community of tech entrepreneurs who could be building the same products and services and charging for it, just like we’d expect any company in the West to do if there was a valuable service worth paying for. If it’s a service that should be supplied by the government, then they’re short-circuiting those responsibilities and subsidizing actions that subvert the public offices away from their duty.

As we become more and more engaged with the internet in every aspect of our lives, powerful questions have arisen regarding the ownership of digital media and information, the relationship between corporations, governments, and individuals online, the power of pop culture influence, and the dissolving border between the digital and physical worlds. Taking these issues head-on is The Free Art & Technology (F.A.T.) Lab. An international group of 21 artists, hackers, thinkers, designers, developers, and entrepreneurs, F.A.T. Lab employs art, activism, pop culture, and a wealth of knowledge about how the internet works to create projects that challenge people and institutions to think a little deeper about this new world we all live in.

Existing studies on natural industrial clusters in Africa have found that the lack of managerial skills among entrepreneurs running micro and small enterprises is a major constraint for innovation and growth in the clusters. As a part of this study, pilot managerial skills training programs were conducted in two industrial clusters on an experimental basis, where a group of randomly selected entrepreneurs within the clusters were given three-week long crash course of based management such as bookkeeping, marketing, business planning, and production management. The impact evaluation of the experiments showed significant positive impacts of the training programs on value added and gross profits of enterprises.

Raising the current survival-type industrial clusters, which have been formed as a coping mechanism to weak investment climate, into more dynamic innovating clusters will be an important avenue for fostering growth of micro and small enterprises in Africa. While national efforts to improve investment climate and investments in human capital are undoubtedly important, there could be more targeted policies to be formulated, in complementing general policies, to support growth of micro and small domestic enterprises using existing industrial clusters as a natural springboard for their growth. In that context, the study discusses the merit of cluster-based managerial human capital development to build steps toward more innovation-oriented clusters, the importance of sound spatial planning policy, particularly at the local level in the context of urban planning, the need to expand market access and economic linkages for industrial clusters including regional integration and linkages with large enterprises

What was the inspiration behind the Tony Elumelu Foundation?

After retiring from UBA Mr Elumelu wanted to give back something to the next generation of entrepreneurs and business leaders in Africa. Tony’s story is the kind you don’t often hear. He was born and raised here in Nigeria, where he did all his education and has spent all his career, and he has still been able to be very successful and build a pan-African business that’s worth several billion. His vision is that if you can remove the obstacles that are preventing other African businesses from emerging, then a lot more companies like UBA can be built in Africa, become pan-African and help transform the continent.
The Foundation is quite unique in that although there are a growing number of foundations in Africa founded by Africans, we are African-founded, African-funded, in Africa and pan-African focused. I don’t actually know of any other like that. And part of what we want to do is set the policy so that if people set up foundations like this they get some kind of tax benefit.

One Hen empowers kids to become social entrepreneurs who make a difference for themselves and the world. We do this by equipping educators with educational resources to inspire kids to four values: financial responsibility, personal initiative, global awareness and giving back-website

Desperate efforts by governments to widen the socio-economic factors in Africa are likely to become a fiasco if adequate attention is not given to creative successful entrepreneurs. Building the future of Africa is a multi-book project being implemented in 53 countries in Africa. Contributing to education of young entrepreneurs through vision shapers sharing experiences and expectations in building a bright future is one of the challenges Africa is facing for its development.
Entrepreneurs in Africa are facing the challenge of leveraging necessary connections and accessing quality education to implement their ideas and projects. Building a unique and powerful ecosystem for sharing connections, ideas and motivating a new generation of entrepreneurs in Africa is what the project seeks to achieve. Bringing to light inspirational stories, adventures, success stories, bright minded entrepreneurs made in Africa could help create the necessary tribe working with joining hands to challenge the world.

Conglomerates are a vehicle, not for creating development in SA but for exploiting natural resources without creating in-depth, inclusive social and economic development, which is what SA needs. That is what is wrong with protecting conglomerates.
The second problem with the formula of BEE is that it does not create entrepreneurs. You are taking political leaders and politically connected people and giving them assets which, in the first instance, they don’t know how to manage. So you are not adding value. You are faced with the threat of undermining value by taking assets from people who were managing them and giving them to people who cannot manage them. BEE thus creates a class of idle rich ANC politicos.
My quarrel with BEE is that what the conglomerates are doing is developing a new culture in SA — not a culture of entrepreneurship, but an entitlement culture, whereby black people who want to go into business think that they should acquire assets free, and that somebody is there to make them rich, rather than that they should build enterprises from the ground.
But we cannot build black companies if what black entrepreneurs look forward to is the distribution of already existing assets from the conglomerates in return for becoming lobbyists for the conglomerates.

if we want to develop SA instead of shuffling pre-existing wealth, we have to create new entrepreneurs, and we need to support existing entrepreneurs to diversify into new economic sectors.