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. 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? This workshop was given at the LIFT conference in 2014, Geneva. http://liftconference.com/lift14/workshops/innovating-services-next-wave-micro-businesses

1. Claro Partners
Innovating services for the NEXT wave of micro-business
LIFT Conference
6 February 2014
#microbusiness,@claropartners,

2. Innova&ng(services(for(the(Next(Wave(of(Micro5Business:(Workshop(Agenda(
,
,
9:00,–,9:10,
,Introduc9ons,
9:10:,9:25
,Ge>ng,to,know,the,next,wave,of,Micro:businesses,and,their,challenges,
9:25:,10:10
,Small,group,work:,idea9ng,services,for,real,micro:business,needs,
10:10:,10:30 ,Share,back:,5,minutes,per,group,
10:30
,
,End,
,
#microbusiness,@claropartners,

3. Share(your(thoughts?(
@claropartners,
#microbusiness,#liJ14,

4. Claro,helps,corpora9ons,
and,startups,to,navigate,
disrup&ve(shi@s(in,
society,and,business,,
delivering,service(design,
and,business(innova&on(
Elisabeth(
Netherlands,
Michael(
USA,
Aldo(
Netherlands,
Rich(
USA,
Megan(
UK,
Mandy(
Lebanon,
Abby(
USA,
Jiri(
Belgium,
Gunes(
Turkey,
#microbusiness,@claropartners,

5. 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,

6. Micro-businesses arise amidst the same shifts that disrupt large enterprises
A new business
context
#microbusiness,@claropartners,

7. 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,

8. 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,

9. Why are they misunderstood?
•
•
•
•
Narrowly defined by their size and
income
Assumption that their main intent is
high growth
Homogenized and lumped together
Few studies of their real needs and
experiences
,
Despite being everywhere,
Micro-businesses are not well
understood & their motivations
and needs are not well served
#microbusiness,@claropartners,

10. Why are they underserved?
•
•
Government, legal and financial
processes do not match reality of
the micro-business experience
•
Despite being everywhere,
Micro-businesses are not well
understood & their motivations
and needs are not well served
Micro-businesses are not easily
categorized, so often remain
unregistered and invisible
Available services don’t allow for
the high experimentation and
flexibility that micro-businesses
need
•
Treated as small, isolated
businesses rather than a network of
highly dependent entities
,
#microbusiness,@claropartners,

11. Exploring stories of microbusinesses around the world
New York City
MAKERS
São Paulo
ELASTIC MICROBUSINESS
Shanghai
PLATFORM
ENTREPRENEURS
Nairobi
PARALLEL
ENTREPRENEURS
#microbusiness,@claropartners,

12. 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,

13. 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,

14. PARALLEL ENTREPRENEURS
Parallel Entrepreneurs are entrepreneurs who are running
more than one business activity at the same time.
Task Rabbit
Kabbage
Vayable
,
#microbusiness,@claropartners,

15. PLATFORM ENTREPRENEURS
Platform entrepreneurs use platforms to connect, extend their
reach and quickly react to market changes and demands.
Shapeways
Ebay
Alibaba
#microbusiness,@claropartners,

16. 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,

17. 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,

18. 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,

19. Micro-businesses share a set of
needs and characteristics
Driven by freedom
SELF-ACTUALIZATION
• Needs at different levels
• Fundamentally different drivers
than large enterprise
EXTERNAL ESTEEM
• Can thrive even in context of
uncertainty
BELONGING
SECURITY
MICRO-BUSINESS
#microbusiness,@claropartners,

20. Micro-businesses share a set of needs
and characteristics
Face multiple challenges
• Experience can often feel chaotic
• Pulled apart by 2 sides
• Prioritise path to market
PATH TO MARKET
OVERHEAD
#microbusiness,@claropartners,

21. WHY DOES Micro-Enterprise matter FOR YOUR BUSINESS?
New partners
New customers
New competitors,
#microbusiness,@claropartners,

22. Exercises introduction
Customer(awareness(and(
reputa&on(depends(
(on(word(of(mouth(
Fluctua&ng(cash(flow(
Business(and(personal(
networks((are(intertwined(
Lack(of(capital(to(buy(
(what(they(need(
PATH TO
Struggle(to(define(their(focus((MARKET
while(keeping(op&ons(open(
Poorly(defined(pricing((
OVERHEAD
Personalized(customer(service((
is(&me5consuming(
and(revenue(models(
Must(wear(all(hats(
Prefer(to(learn(by(doing(
Hard(to(Priori&se(tasks(
Development(not(aligned(with(bureaucra&c(or(
legal(procedures(
#microbusiness,@claropartners,

23. Contact us to learn more
Aldo de Jong | partner
aldo.dejong@claropartners.com
+34 647 857 922
Abby Margolis | research director
abby.margolis@claropartners.com
+34 674 061 648
Claro Partners S.L.
C/ Provença, 290, 3-1ª
08008 Barcelona
+34 931 786 332
#microbusiness,@claropartners,