innovating services for the next wave of micro-business
DESCRIPTION
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-businessesTRANSCRIPT
#microbusiness,@claropartners,
Claro Partners Innovating services for the NEXT wave of micro-business LIFT Conference 6 February 2014
#microbusiness,@claropartners,
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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,
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Innova&ng(services(for(the(Next(Wave(of(Micro5Business:(Workshop(Agenda(
Share(your(thoughts?(@claropartners,#microbusiness,#liJ14,
#microbusiness,@claropartners,
Claro,helps,corpora9ons,and,startups,to,navigate,disrup&ve(shi@s(in,society,and,business,,delivering,service(design,and,business(innova&on(
Jiri(Belgium,
Aldo(Netherlands,
Rich(USA,
Megan(UK,
Mandy(Lebanon,
Elisabeth(Netherlands,
Michael(USA,
Gunes(Turkey,
Abby(USA,
#microbusiness,@claropartners,
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
Micro-business is rising globally:
#microbusiness,@claropartners,
Micro-businesses arise amidst the same shifts that disrupt large enterprises
A new business context
#microbusiness,@claropartners,
Micro-businesses arise amidst the same shifts that disrupt large enterprises
Uncertainty Informality Immediacy
Volatility Experimentation
! Seeking a new lifestyle ! Generation Flux ! Unemployment/accidental
entrepreneurship
! Networked society ! Collaborative consumption
& peer-to-peer exchange ! New models of work
! Accessibility/usability of technology
! Mobile technology & payments
! Platforms
! Economic & corporate crisis ! Alternative payments & funding ! Lengthening of the long tail
#microbusiness,@claropartners,
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,
Despite being everywhere, Micro-businesses are not well understood & their motivations and needs are not well served
• 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 ,
Why are they misunderstood?
#microbusiness,@claropartners,
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
• Government, legal and financial processes do not match reality of the micro-business experience
• 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
,
Why are they underserved?
#microbusiness,@claropartners,
Shanghai PLATFORM ENTREPRENEURS
Nairobi PARALLEL ENTREPRENEURS
São Paulo ELASTIC MICRO-BUSINESS
New York City MAKERS
Exploring stories of microbusinesses around the world
#microbusiness,@claropartners,
Corporate Partners example: Whole Foods Odesk Dabbawallas
Elastic micro-businesses are micro-businesses that are able to quickly rescale and adapt to the changes in their environment.
ELASTIC MICRO-BUSINESSES
#microbusiness,@claropartners,
Arduino Fablab Etsy
Makers leverage new technologies, work spaces and platforms to create physical products, and are part of a global movement.
MAKERS
#microbusiness,@claropartners,
Task Rabbit Kabbage Vayable ,
Parallel Entrepreneurs are entrepreneurs who are running more than one business activity at the same time.
PARALLEL ENTREPRENEURS
#microbusiness,@claropartners,
Shapeways Ebay Alibaba
Platform entrepreneurs use platforms to connect, extend their reach and quickly react to market changes and demands.
PLATFORM ENTREPRENEURS
#microbusiness,@claropartners,
• Redefine Business Fundamentals • Operate Through Networks • Driven By Freedom • Face Multiple Challenges
Despite this diversity, micro-businesses share a set of needs and characteristics
#microbusiness,@claropartners,
• Growth is not always desirable • Value is more than profit • Competitors are also peers
Micro-businesses share a set of needs and characteristics
Redefine business fundamentals
#microbusiness,@claropartners,
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,
MICRO-BUSINESS
SECURITY
BELONGING
EXTERNAL ESTEEM
SELF-ACTUALIZATION
Micro-businesses share a set of needs and characteristics
Driven by freedom
• Needs at different levels • Fundamentally different drivers
than large enterprise • Can thrive even in context of
uncertainty
#microbusiness,@claropartners,
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,
WHY DOES Micro-Enterprise matter FOR YOUR BUSINESS?
New partners New customers New competitors,
#microbusiness,@claropartners,
PATH TO MARKET OVERHEAD
Exercises introduction
Customer(awareness(and(reputa&on(depends((on(word(of(mouth(
Business(and(personal(networks((are(intertwined(
Struggle(to(define(their(focus((while(keeping(op&ons(open(
Personalized(customer(service((is(&me5consuming(
Fluctua&ng(cash(flow(
Lack(of(capital(to(buy((what(they(need(
Poorly(defined(pricing((and(revenue(models(
Must(wear(all(hats(
Prefer(to(learn(by(doing(
Development(not(aligned(with(bureaucra&c(or(legal(procedures(
Hard(to(Priori&se(tasks(
#microbusiness,@claropartners,
Contact us to learn more
Aldo de Jong | partner [email protected]
+34 647 857 922
Abby Margolis | research director [email protected]
+34 674 061 648
Claro Partners S.L.C/ Provença, 290, 3-1ª
08008 Barcelona+34 931 786 332