Friday, January 08, 2010

Ending Poverty (period)

It seems like ending poverty has become quite fashionable in recent years. Movie stars, politicians, and economists are all getting in on it. No doubt, it's a great sound bite, and who could possibly criticize it? For much of recent history, it has been articulated as a goal of any modern society.

As humans moved from rural agricultural societies to urban industrial societies, wealth began to be created at levels that made the elimination of poverty possible, at least theoretically. Inspired, we have had "wars on poverty" and much important literature, as well as social and religious movements, have been aimed at this worthy goal. We have seen the launch of the UN's Millennium Development Goals to halve poverty by 2015. We have seen books with titles like "The End of Poverty" (with a forward by Bono) and "Creating a World without Poverty" (just out in paperback).

Well this bothers me.

What's wrong with me? How can I be against ending poverty? Don't I agree with Dr. Yunus's hope that someday our grandchildren will have to go to a museum in order to see what poverty was like?

Sure. It is a grand sentiment: the eradication of poverty, period. But this grand sentiment can have a pernicious effect on entrepreneurs and activists. Billions of people are in poverty, and no one is going to lift all of them out of poverty. Perhaps poverty will always exist.

So, as a budding entrepreneur or activist... what if your venture is only going to help a few villages, perhaps by providing a cleaner source of drinking water? Should you even bother? Surely, it isn't fair to people in neighboring villages who don't get clean water. And, heck, maybe clean water isn't the biggest problem, maybe you need to build schools too. Wise people will advise you to "scale up." Others will tell you that you need to have systemic solutions. Otherwise, you just aren't a player.

One of the people I respect most in the field, Paul Polak (who wrote "Out of Poverty") is fond of saying "if you can't lift 1 million people out of poverty with your idea, don't bother." Now, I know Paul pretty well, and I think he says this with a wink. He is being provocative. Encouraging entrepreneurs to think big, to consider how they could scale up. But I think (hope?) that he has a lot of respect for entrepreneurs that will educate 10,000 girls, or help 1,000 midwives make a living by providing healthier birthing environments.

For better or worse, I hear apparently well meaning people repeating these "don't bother" words like they were engraved in stone and found on a mountain. Who wants to invest in a small village water project? How will we eliminate GLOBAL poverty with these many small efforts? Listening to TED talks and experts, I keep hearing of all these big ideas to eliminate poverty. Woe unto any entrepreneur who wants to figure things out for a while before they talk about scale. The message seems to be: Better to go BIG and be wrong, than go little and get it right.

I disagree. I'd like the donor community to start seeing themselves as community gardeners: encouraging thousands of entrepreneurial seeds to sprout in their plots. Perhaps with each focusing on a few crops, but trying lots of varieties. Sharing their seeds from successful plantings with others who have similar soils and climates. I am pretty sure that monoculture, even from benevolent souls, is not the answer to our global challenges. We are eager to find the super productive and adaptive crop, and transplant it all around the world. To date, these transplants have had little success.

I am skeptical of the large scale efforts, and attempts at rapid scaling. I certainly understand the entrepreneur's propensity to see the limitless impact of their idea and their desire for speedy implementation (these are personality quirks from which I occasionally suffer). A few years ago, word got around that to be attractive to VC's, entrepreneurs had to offer a certain package ("$50 million in revenue in 5 years"). Soon, every business plan hit this number. Then that wasn't enough, and business plan inflation ensued. I am not sure this resulted in new ventures growing any faster, although it may have eliminated some honest entrepreneurs. I am afraid that budding social entrepreneurs are being lead to believe that they need to hit similar numbers to find capital.*

Yes, I hope that we can end poverty, but I believe it will happen one family at a time, one business at a time, one community at a time. The path of human development is a frustratingly slow one. To figure out how to improve income or health for a thousand people is worthy work, and should be celebrated, even if it doesn't "scale up" to millions. The venture that has served 1,000 people has a better chance at scaling than the idea that has served none.

Loren Eisley's starfish fable is instructive. I don't plan to invest my money or my time in ventures that claim they will save all the starfish on the beach (often while standing on a bluff above the beach, sipping chardonnay). I will spend my time on those ventures that are down on the beach, have saved a few starfish already, are dedicated to continuing their work and have a knack for teaching others to save starfish. Period.
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*Kudos to Ian Fiske of the William James Foundation Business Plan Competition, who asks evaluators to measure the ventures against their self-defined measures of success, rather than some artificial hurdle of triple bottom line success.

Thursday, December 31, 2009

Charity

As many of you know, I am a pro-business kind of guy. Entrepreneurship... capital... new business models... sustainable product design- these are the topics I write about with respect to tackling the challenges of the BOP. My bleeps know I also believe there is a role for charity (see my "Matrix" post).

So, what does my family do for charity? Where do we "invest"? What organizations do we support?

We focus our charity in 5 areas, which I list below, along with the specific organizations to which we gave, and my twitter length rationale. Careful readers will also note that many of these organizations are BOPreneurs, or directly support BOPreneurs. But not all. It's a theme, but not a screen.

1) Environment: because we can't live without it
-Nature Conservancy: an innovative leader in conservation; preserves threatened ecosystems; builds strong, sustainable local partnerships.
-Envirofit International: reduces air pollution with energy efficient products in developing world. Has sold almost 100,000 improved cookstoves in India, which use less fuel for cooking and make for healthier homes.

2) Health: because health is the cornerstone of development; it's hard to work or go to school if you are sick or dead.
-Rotary Foundation: Working to eradicate polio and build infrastructure (schools, clinics, libraries, water systems), a service organization of which I am proud to be a part.
-One World Health: Developing affordable medicines for the developing world, a non-profit pharmaceutical company.
-Doctors Without Borders: Nobel Award winning org who perhaps best fits the needs of delivering aid in times of crisis. Truly inspiring work.
-VisionSpring*: VisionSpring is working on innovative, scalable models to help people see. The answer is simple, inexpensive eye glasses, but the implementation is difficult. Vision problems are common reason for loss of livelihood.

3) Social/International Development: Admittedly, a catch all category. But basically for organizations that are working on innovative, primarily private sector approaches.
-Ashoka: they coined the phrase "social entrepreneur" decades ago, and now support thousands of them around the world. An army of change-makers (and quite a few BOPreneurs).
-Acumen Fund*: A non-profit venture capital fund. We like to invest in oxymorons. But seriously, they are breaking new ground in financing BOPreneurs and priming the social enterprise sector for investment. Seems like I should pitch in.
-One Acre Fund: a bottoms up approach to helping over 10,000 small farmers "grow their way out of hunger." A BOPreneur for sure.
-Ayllu Initiative*: a start up venture in Brazil, working on an innovative approach to launching and scaling social enterprises. I used them for an exam question, and so many students liked what they do, I thought I should make a donation.

4) Education: We are fans. Much positive change comes from education. Of course, we are "contributing" less to this category now that all our kids are out of college!
-CSU College of Business: Weird. Why give money to your employer? Well, we think CSU is doing some of the more innovative things in public education and sustainability. Land Grant University 2.0, baby.
-Central Asia Institute: building schools in Afghanistan and Pakistan. But don't read my tweet, read the book. Mortenson was a BOPreneur before I knew what one was.
-Bainbridge Graduate Institute*: a leader in sustainable business education- "we are changing business for good." We support their scholarship fund for enhancing diversity.
-Vittana: another start up venture I used in my exam. They are the Kiva of student loans for BOP. I like that. I hope they go BIG.

By the way, we have stopped giving to the schools we attended. Each year, we consider it, but with limited funds, they don't make the cut.

5) Local Charities: there are so many needs in our own communities.
-Colorado Combined Campaign- Larimer Co. United Way- we think of them as a portfolio manager for investments in local non-profits.

I hope that by sharing our choices with you, we inspire you to give to those organizations you think are doing good work. Really, every donation counts!

Happy New Year!

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*indicates new organizations we began supporting in 2009

Monday, December 14, 2009

What if?

What if? This is one of my favorite two word questions.* An artist's question. A builder's question.

How might we...? This are my favorite three words to start a question. Implies a team. To me, a team provides fuel for any innovative spark I am lucky enough to have. And it implies a problem to be overcome.

Who could help us? A really good four word question to ask.

How do we get started? An essential five word question.

Coming up with new ideas and teams is simple. But not easy.

Really? [a one word question].
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Of course, bleeps, "What Sucks?" is also one of my favorite questions, and it comes before "what if ?" But "what if ?" works in even the politest of company.