A new wave of micro-businesses is emerging. We are going through turbulent times in which interconnectivity and rising socioeconomic complexity make it increasingly difficult for large corporations to adapt and build long-term strategies. Meanwhile, individuals are leveraging networks, crowd-funding, and new platforms to create informal and micro-enterprises that better respond to, and thrive in, our unstable business environment. Microbusiness is not a niche, but often overlooked and definitely underserved. In most countries it represents over 70% of employment, and is the world’s fastest growing sector of the economy as new forms are emerging, like micro-manufacturers and parallel entrepreneurs.
Structure
In this workshop we will provide insights into this new wave of micro-businesses and their unmet needs. Then small groups will work together to create services that solve for their specific challenges in new ways. Together we will answer the question: How can we design better services that meet the real needs of today’s micro-business?
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...
Innovating services for the NEXT wave of micro-business - business innovation jam at IESE Doing Good Doing Well conference 2014
1. Claro Partners – Business Innovation Jam
Innovating services for the NEXT wave of micro-business
Doing Good Doing Well Conference at IESE Business School
21 February 2014
#microbusiness,@claropartners,
13. Micro-business is rising globally:
Change,photo,
• Comprise more than 95% of all
businesses
• Employs 60-80% of the global workforce
• Fastest growing segment in both
emerging and developed markets
• Significant part of the 10 trillion dollar
informal economy
• 40% of Americans predicted to be
freelancers by 2020
#microbusiness,@claropartners,
14. Micro-businesses arise amidst the same shifts that disrupt large enterprises
A new business
context
#microbusiness,@claropartners,
15. Micro-businesses arise amidst the same shifts that disrupt large enterprises
! Seeking a new lifestyle
! Generation Flux
! Unemployment/accidental
entrepreneurship
! Networked society
! Collaborative consumption
& peer-to-peer exchange
! New models of work
Uncertainty
Informality
Immediacy
! Economic & corporate crisis
! Alternative payments & funding
! Lengthening of the long tail
Volatility
Experimentation
! Accessibility/usability of
technology
! Mobile technology &
payments
! Platforms
#microbusiness,@claropartners,
16. We conducted fieldwork and one-on-one contextual interviews
#microbusiness,@claropartners,
17. We used various tools and exercises
#microbusiness,@claropartners,
18. OUR APPROACH!
We had conversations with experts, thought leaders and professionals"
David Li
Founder of China’s first hacker
space- Xin Che Jian
Leif Krinkle
Director at Visible Futures Lab
Althea Erickson
Policy Director at Etsy
Jessamine Buck
Director of Program and Member
Services at Freelancers Union
Renato Fonseca Andrade
Development and Innovation
Manager at SEBRAE
Ben Lyon
Director at Kopo Kopo
Suraj Sudhakar
Robert Neuwirth
Regional Fellows Manager at
Journalist, Author
#microbusiness,@claropartners,
Acumen Fund
20. OUR APPROACH!
Throughout the project, we researched micro-business more broadly
using a range of secondary resources"
#microbusiness,@claropartners,
21. OUR APPROACH!
We interviewed and learned from key
stakeholders within our partner organisations
#microbusiness,@claropartners,
22. Micro-businesses are not a new phenomenon, but this next wave is now appearing in new
places and new forms. They are online and offline; entrepreneurs and mom and pop
businesses; micro-manufacturers, crowd-funded, networked and global.
#microbusiness,@claropartners,
23. While they exist everywhere, micro-businesses are often
misunderstood. And their needs are underserved.
23,,|(,
#microbusiness,@claropartners,
24. Micro-businesses are misunderstood
and underserved
Narrowly defined by size and income
Homogenized and lumped together
Not easily categorised or recognised as they blur personal and business
Formal steps and processes do not match their reality
24,,|(,
#microbusiness,@claropartners,
25. PROJECT OVERVIEW!
5
25,,|(,
COMMON MISCONCEPTIONS
1
Micro-businesses are tiny versions of big enterprise
2
‘Micro’ means isolated and constrained
3
Micro-businesses strive to grow
4
Micro-businesses exist on the extreme edges
5
Micro-business owners lack processes and skills
#microbusiness,@claropartners,
26. 1
MISCONCEPTION
Micro-businesses are tiny versions of larger businesses
Micro-business are not shrunken enterprises.
They have unique business models, motivations,
attitudes and needs.
26,,|(,
#microbusiness,@claropartners,
27. 2
MISCONCEPTION
‘Micro’ means isolated and constrained
Micro-businesses operate through expansive
networks and cannot be treated as distinct from
them.
27,,|(,
#microbusiness,@claropartners,
28. 3
MISCONCEPTION
Micro-businesses strive to grow!
Many micro-business owners are content with
their size.
Conventional metaphors of linear growth obscure
their real experiences and desires.
28,,|(,
#microbusiness,@claropartners,
29. MISCONCEPTION
4
Micro-businesses exist on the extreme edges
Micro-businesses are often discussed in the extreme:
as either very poor, even illegal, or highly
entrepreneurial and profit-seeking “start-ups”.
The reality is most are in the middle.
29,,|(,
#microbusiness,@claropartners,
30. 5
MISCONCEPTION
Micro-businesses lack processes and skills!
Micro-businesses learn by doing.
Their experimentation is often misrepresented as
frantic, reflecting a lack of knowledge of what one
is doing.
Yet, their trial-and-error practices fit their context.
30,,|(,
#microbusiness,@claropartners,
31. Exploring stories of microbusinesses around the world
New York City
MAKERS
São Paulo
ELASTIC MICROBUSINESS
Shanghai
PLATFORM
ENTREPRENEURS
Nairobi
PARALLEL
ENTREPRENEURS
#microbusiness,@claropartners,
32. ELASTIC MICRO-BUSINESSES
Elastic micro-businesses are micro-businesses that
are able to quickly rescale and adapt to the changes
in their environment.
Corporate Partners
example: Whole Foods
Odesk
Dabbawallas
#microbusiness,@claropartners,
33. MAKERS
Makers leverage new technologies, work spaces and platforms
to create physical products, and are part of a global movement.
Arduino
Fablab
Etsy
#microbusiness,@claropartners,
34. PARALLEL ENTREPRENEURS
Parallel Entrepreneurs are entrepreneurs who are running
more than one business activity at the same time.
Task Rabbit
Kabbage
Vayable
,
#microbusiness,@claropartners,
35. PLATFORM ENTREPRENEURS
Platform entrepreneurs use platforms to connect, extend their
reach and quickly react to market changes and demands.
Shapeways
Ebay
Alibaba
#microbusiness,@claropartners,
36. Despite this diversity, micro-businesses share a set of needs and characteristics
•
•
•
•
Redefine Business Fundamentals
Operate Through Networks
Driven By Freedom
Face Multiple Challenges
#microbusiness,@claropartners,
37. Micro-businesses share a set of
needs and characteristics
Redefine business fundamentals
• Growth is not always desirable
• Value is more than profit
• Competitors are also peers
#microbusiness,@claropartners,
38. Micro-businesses share a set of
needs and characteristics
Operate through networks
• Spread operations throughout
networks
• Gain form and flexibility
• Blend personal and business
#microbusiness,@claropartners,
39. PROJECT OVERVIEW!
Pyramid of motivations and needs for business
SELF-ACTUALIZATION
EXTERNAL ESTEEM
BELONGING
SECURITY
MASLOW’S PYRAMID
39,,|(,
#microbusiness,@claropartners,
40. PROJECT OVERVIEW!
Micro-businesses: operate through networks, driven by freedom
SELF-ACTUALIZATION
Freedom
EXTERNAL ESTEEM
Visibility
BELONGING
SECURITY
Adaptation
Flexibility and Options
MICRO-BUSINESS
40,,|(,
#microbusiness,@claropartners,
41. EXPERIENCE MODEL | EXPERIENCES AND CHALLENGES!
The experience of micro-business owners is chaotic and uncertain!
41,,|(,
#microbusiness,@claropartners,
42. EXPERIENCE MODEL | EXPERIENCES AND CHALLENGES!
However, under the chaos, they have a simple mental model - comprised of two sides!
PATH TO MARKET
42,,|(,
OVERHEAD
#microbusiness,@claropartners,
43. EXPERIENCE MODEL | EXPERIENCES AND CHALLENGES!
Owners feel pulled apart and do not treat these two sides equally!
PATH TO MARKET
43,,|(,
OVERHEAD
#microbusiness,@claropartners,
44. EXPERIENCE MODEL | EXPERIENCES AND CHALLENGES!
They are more comfortable with their path to market…!
PATH TO MARKET
44,,|(,
OVERHEAD
#microbusiness,@claropartners,
45. EXPERIENCE MODEL | EXPERIENCES AND CHALLENGES!
Micro-business owners find overhead a burden…!
PATH TO MARKET
OVERHEAD
(image)
45,,|(,
#microbusiness,@claropartners,
46. EXPERIENCE MODEL | EXPERIENCES AND CHALLENGES PATH TO MARKET!
The path to market is reconfigurable, giving micro-businesses many options for delivering
their offer!
PATH TO MARKET
OVERHEAD
DEFINE
MAKE / PROCURE
MARKET / SELL
DISTRIBUTE / DELIVER
CUSTOMER SERVICE
46,,|(,
#microbusiness,@claropartners,
47. EXPERIENCE MODEL | EXPERIENCES AND CHALLENGES OVERHEAD!
Overhead can be feel rigid, lacking in options and overwhelming!
OVERHEAD
ORGANISATION"
INFRASTRUCTURE"
PAPERWORK"
REVENUE & COST"
47,,|(,
#microbusiness,@claropartners,
48. EXPERIENCE MODEL | EXPERIENCES AND CHALLENGES!
The micro-business experience is comprised of two sides!
PATH TO MARKET
DEFINE
OVERHEAD
ORGANISATION"
MAKE / PROCURE
INFRASTRUCTURE"
MARKET / SELL
PAPERWORK"
DISTRIBUTE / DELIVER
CUSTOMER SERVICE
48,,|(,
REVENUE & COST"
#microbusiness,@claropartners,
49. WHY DOES Micro-Enterprise matter FOR YOUR BUSINESS?
New partners
49,,|(,
New customers
New competitors,
#microbusiness,@claropartners,
50. ENTERPRISE PERSPECTIVE!
Corporations and micro-businesses have complementary strengths and weaknesses
for the emerging context!
STRENGTHS!
CORPORATIONS!
Economies of scale
Available capital
Broad customer base
Established infrastructure
Hierarchical organisation
MICRO-BUSINESSES!
Customized offers
Lean organization
Deep customer relations
Reconfigurable
infrastructure
WEAKNESSES!
Process efficiency
50,,|(,
Networked organisation
Experimentation capacity
Slow pivots
Wasteful spending
Higher costs
Lack of resources
Lack of customer
understanding
Difficult to scale customer
relationship management
Legacy infrastructure
Dependent infrastructure
Low customization
Low reach
#microbusiness,@claropartners,
52. ENTERPRISE PERSPECTIVE!
We identified four models of engagement for enterprise to harness the elasticity of
micro-business !
SERVE!
ENABLE!
PARTNER!
LEARN!
52,,|(,
#microbusiness,@claropartners,
55. ENTERPRISE PERSPECTIVE | SERVE MICRO-BUSINESSES!
As-you-go services
! Micro-entrepreneurs constantly learn and make decisions with direct impact
on their business
! Offers are flexible, immediate and easy for micro-business
Task Rabbit allows microbusinesses to outsource small
tasks at reasonable prices,
greatly freeing up their time
while still getting things done.
Square offers a payment solution that
allows micro-businesses to take
payments at any location or time.
55,,|(,
Vistaprint provides a complete set of
products that can be ordered separately
or combined as micro-businesses need.
By,Todd,Plif,,USA,TODAY,
#microbusiness,@claropartners,
56. ENTERPRISE PERSPECTIVE | SERVE MICRO-BUSINESSES!
Micro-business specific
! Micro-businesses are not scaled-down versions of large corporations
! Traditional management theory is not necessarily applicable
! Offers designed specifically for micro-businesses are more relevant
Wave apps understands that the lines
between business and personal are
often blurred for micro-businesses,
that’s why they provide personal
financial management tools in parallel
with their micro-business toolkit.
Planet Soho provides a free, businessmanagement suite designed specifically for
micro-businesses. “My favourite part about
PlanetSoho is the streamlined and intuitive
organization it provides.” - Sean Hilty (user)
56,,|(,
Kabbage is an online financing
company that specifically lends
to micro-businesses selling on
eBay, Amazon, Etsy and
Shopify. The company meets a
lending gap left by traditional
debt sources due to higher
risks.
#microbusiness,@claropartners,
57. ENTERPRISE PERSPECTIVE | SERVE MICRO-BUSINESSES!
Curated solutions
! Micro-businesses often reconfigure solutions to meet their evolving needs
! Solutions come from a range of providers that solve specific issues
! Platforms that curate solutions connect micro-businesses with solutions that
best meet their needs
Intuit Quickbase catalogues and
provides templates for custom
applications. Members from the
community can use and share
templates that best meet their specific.
needs
Etsy apps is a collection of
third-party apps enabled by
the Etsy API that provides
solutions to sellers.
57,,|(,
Taobao University by Alibaba Group
partners with institutions like Institue
of Suzhou Software to teach Taobao
sellers how to improve efficiency in
processing orders and speed of
delivery.
#microbusiness,@claropartners,
58. ENTERPRISE PERSPECTIVE | SERVE MICRO-BUSINESSES!
Offers serve micro-businesses in both path to market and overhead!
PATH TO MARKET
OVERHEAD
DEFINE
ORGANISATION"
MAKE / PROCURE
INFRASTRUCTURE"
MARKET / SELL
PAPERWORK"
DISTRIBUTE / DELIVER
CUSTOMER SERVICE
58,,|(,
REVENUE & COST"
#microbusiness,@claropartners,
59. ENTERPRISE PERSPECTIVE | SERVE MICRO-BUSINESSES!
GUIDELINES TO SERVE!
! Provide when and how is needed!
! Design for micro-businesses, not yourself!
! Act in their best interest!
59,,|(,
#microbusiness,@claropartners,
63. PLACE THE MICRO-BUSINESS CHALLENGE HERE
WHAT ARE WAYS TO SOLVE THIS CHALLENGE?
Brainstorm potential service ideas to meet this challenge.
Micro-businesses operate through networks.
How can networks be part of your solution?
WRITE YOUR SERVICE IDEA HERE
HOW DOES THIS SERVICE SUPPORT MICRO-BUSINESS NEEDS?
(We find it easiest to start from the bottom)
How can this service give micro-businesses freedom to set and navigate towards self-defined goals?
FREEDOM
How can this service increase micro-businesses’ visibility?
VISIBILITY
How can this service allow micro-businesses to quickly respond to changing circumstances?
ADAPTATION
How can this service provide micro-businesses with flexibility and options?
FLEXIBILITY AND OPTIONS
#microbusiness,@claropartners,
64. PLACE THE MICRO-BUSINESS CHALLENGE HERE
WHAT ARE WAYS TO SOLVE THIS CHALLENGE?
Brainstorm potential service ideas to meet this challenge.
Micro-businesses operate through networks.
How can networks be part of your solution?
WRITE YOUR SERVICE IDEA HERE
#microbusiness,@claropartners,
65. WRITE YOUR SERVICE IDEA HERE
HOW DOES THIS SERVICE SUPPORT MICRO-BUSINESS NEEDS?
(We find it easiest to start from the bottom)
How can this service give micro-businesses freedom to set and navigate towards self-defined goals?
FREEDOM
How can this service increase micro-businesses’ visibility?
VISIBILITY
How can this service allow micro-businesses to quickly respond to changing circumstances?
ADAPTATION
How can this service provide micro-businesses with flexibility and options?
FLEXIBILITY AND OPTIONS
#microbusiness,@claropartners,
66. VALUE PROPOSITION
What is your service’s value proposition to micro-businesses?
WRITE THE FINAL NAME OF YOUR SERVICE HERE
VALUE EXCHANGE MODEL
Example:
Illustrate the business model for your service. What value (resources,
knowledge, skills, connections,…) is exchanged between service
providers, microbusiness, customers and others?
#microbusiness,@claropartners,
67. VALUE PROPOSITION
What is your service’s value proposition to micro-businesses?
WRITE THE FINAL NAME OF YOUR SERVICE HERE
VALUE EXCHANGE MODEL
Example:
Illustrate the business model for your service. What value (resources,
knowledge, skills, connections,…) is exchanged between service
providers, microbusiness, customers and others?
#microbusiness,@claropartners,
68. WRITE THE FINAL NAME OF YOUR SERVICE HERE
VALUE EXCHANGE MODEL
Example:
Illustrate the business model for your service. What value (resources,
knowledge, skills, connections,…) is exchanged between service
providers, microbusiness, customers and others?
#microbusiness,@claropartners,
69. 759(March!
Join strategists, developers and designers all
across the world come together in one weekend
to explore, create and prototype a service –
mentored by Claro Partners, their clients and
other professionals"
Register NOW at barcelonaservicejam.org!"
#microbusiness,@claropartners,