Going Beyond Networking - Launching a Venture in the Base of the Pyramid
This question came up in a recent discussion with a colleague from the Univeristy of North Carolina. Dozens of students graduate each year from UNC’s Kenan-Flagler Business School with a top-rated MBA degree and a passion to pursue Base of the Pyramid (BOP) opportunities, but few companies are hiring for these types of positions. You can always start your own business, but how does an aspiring entrepreneur from the top of the pyramid attract the resources needed to launch a new business in the BOP?
Just like any other entrepreneurial endeavor, it’s all about building credibility.
Credibility gives your entrepreneurial idea the power it needs to become a true business innovation. The higher your credibility, the higher your probability of finding funding, partners, customers, etc: i.e. all the resources you need to get going. The farther afield you are going in terms of geography, expertise or industry, the farther you have to build up your credibility to win the resources your venture needs. MBAs are taught how to do business planning and how to detail the growth of our companies, but rarely do we think of the same step-by-step methodology to plan the growth of our credibility and how we will pay for our learning curve. And credibility is critically important in the Base of the Pyramid where ideas greatly outnumber available funding*.
David Bornstein, who chronicles social entrepreneurs in his acclaimed book "How to Change the World", offers a description of this process. Bornstein states that social entrepreneurs typically start with what they know and issues they feel passionate about:
Social entrepreneurs, like business entrepreneurs, should begin with what they know best and should focus on an idea or issue that resonates deeply in their lives. Entrepreneurs rarely come up with their ideas suddenly. Typically, they spend years thinking about them–often searching for the right moment in their lives to move forward. Sometimes their ideas can be traced all the way back to childhood interests.
The budding social entrepreneurs then go through a stage of credibility building.
Before starting out on their own, they often work in jobs that teach them how a particular type of business or industry operates. Social entrepreneurs go through the same types of "apprenticeships." They usually work for several years in a particular field, profession or organization, acquiring the knowledge, skills and contacts that enable them to branch out on their own and improve upon what is currently being done. Then they enter the "launch" phase–when they start preparing to build their own organizations. Again, like business entrepreneurs, social entrepreneurs usually begin by tapping their personal networks–friends, families, colleagues, teachers, mentors. They often start with a few well-selected tests of their ideas–to demonstrate early viability–and build credibility and momentum. They enlist advice from well-connected and experienced allies about how to raise funding, think through strategy, and build a team of supporters and advisors.
For MBAs and others starting ventures in the BOP, creating a series of projects to build relationships in your target area is critical. Even if these projects are volunteer or charitable works, the credibility you build will be invaluable. For example, here at BRINQ, we seek to gain experience in new markets by running small toy-design contests with local non-profits, helping us to build the relationships and credibility we need to promote our commercial "sow & gather" approach to innovation. For another example, take a look at Theresa Williamson in Rio, Brazil, described as a "powerhouse" by WorldChanging.com. Williamson founded her high-impact "Catalytic Communities" four years ago as her doctoral thesis at the University of Pennsylvania. Williamson recounts her own learning curve in detail in her dissertation “Catalytic Communities: the Birth of a Dot Org” (PDF).
The key lesson to learn is that when you’re starting with very little and need the most help, you have to find ways to give the most help you can. And not just to the people you want to serve, but to the people you most want to partner with. You need to go beyond networking to credibility building. Afterall, you measure your network by the number of people you can call when facing a problem, but you measure your credibility by the number of people who will call you.
And when people start calling, the resources will follow.
* To illustrate the scarcity of funding, BRINQ recently made it to the semifinal round for Echoing Green funding. Echoing Green is one of the few organizations that will consider funding "for-profit" socially oriented ventures. We were one of 700 groups Echoing Green was considering for funding in 2005, we’re now one of 150. Echoing Green will eventually select 12 organizations to fund, a funding rate of under 2%.


What is the most popular holiday in Viet Nam?




Who: PRODEM FFP



“Who is Rain?” asked the little girl in the lantern light.
“Rain is a dancer,” I replied.
“A dancer?” she said, prompting for more.
“Yes, a dancer,” I repeated, pausing for a moment to glance at our slumbering fields and up to the empty sky. The night was full and people were starting to arrive.
I raised my hand and gestured toward the stars, “Rain dances on the veil above, his feet tapping and bouncing on the cushion of the sky. Sometimes his feet will sink into the pillow of a cloud and water shakes loose and falls below to wash the earth and feed our crops. Some days he dances lightly, others with tumbles and leaps, the sound of his landing shaking the earth as his smile flashes and lights up the world.”
“But he doesn’t like to dance here,” the little girl said, sandals removed and toes bunching on the dry earth beneath her feet.
“No,” I replied, “not for a long time.”
“But why?”
The truck with the speakers rumbled by. I waited until it had stopped at the improvised floor, where the circle would form, and then I leaned forward in my chair and said, “Let me tell you a story.”
–
One day, a man climbed atop the house on the highest hill to look for Rain. He saw the dancer in the distance, down by the sea, far away and twirling by. With all his might he shouted his question, “Tumbling Rain, why do you dance for us no more?” He expected no reply; Rain is often too busy dancing to have conversations with Man. Yet moments later an answer came back, wafting on the wind.
“I see you bent over the plow,
day after day,
with tears on your eyes.
You are unhappy.
I see your woman,
hauling the water, pounding the beans,
with tears on her eyes.
She is unhappy.
I see the little ones toiling,
no laughing, no leaping,
with tears on their eyes,
they are unhappy.
You are all so unhappy.
Your tears make you unhappy.
When I dance, tears fall from the sky.
Why would I wish to make a sad people,
more sad?”
–
“But that’s silly!” exclaimed the little girl after I finished my tale, “my tears don’t make me sad. It’s being sad that makes my tears!”
“Ah, but Rain is just a simple dancer,” I explained gently, “How is he to know the difference?”
“Oh,” she said. The little girl looked up into the night sky, toward a lone, distant cloud shadowing the moonlight, and asked, “Will he ever return?”
“I suppose that’s up to you, little one,” I said.
“Me?” her wide eyes now stared into mine, “What can I do? I’m little. Everybody says so.”
“Ah, but you’re the most important one of all,” I said, sliding from my chair to settle in front of her, “You can laugh, you can leap. You can dance, you can play. You can show the world that tears or no tears, you live with joy. And drawn by your joy, perhaps Rain will dance with us once again.”
Music flowed from the back of the truck and I could see partners forming in the circle. I stood to join them.
“Now go play little one,” I urged with a fond pat to her head, “the dance is beginning, and Rain is watching.” 

