“The other 6 billion” - Impact entrepreneurship in developing countries
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Transcript: English(auto-generated)
00:18
Good afternoon, everyone. Impact and innovation cannot happen in isolation.
00:23
It requires collective action. In fact, we all are always talking about ecosystems, innovation, impact. But in fact, in our daily life, sometimes it's not reflecting that we also want to do that globally. We always think we want to do it globally. But a lot of times, also people here in Western Europe
00:43
are forgetting about the other six billion in the world. And that's why we chose to speak about the six billion. Six billion, what does that mean? We are having, again, 7.3 billion in the world. Six billion out of them are actually in developing countries.
01:03
Quick facts. We are three organizations in Asia. That's why we also have quick facts of Asia. But of course, in those six billion, we also have our friends from Africa, from Latin America, which are also here because you can speak with a lot of global people also here because we are from the global innovation gathering at the maker space.
01:24
But back to this slide. Why should you care about these six billion people? Because those are huge opportunities. People there, or the talents there, are people you want to collaborate with. For example, Southeast Asia is getting younger.
01:43
In fact, for example, in the Philippines, we have 53% below 25 years old. Can you imagine? 53% in 105 million population country below 25 years old. Imagine this creativity and these talents which are out there.
02:01
Well, again, 4.3 billion live in Asia. Not all of them are, of course, developing country. The middle class is also growing, for example, in China. With that, of course, the spending power is growing, meaning also for the entrepreneurs here in this room, or also at the Republica, don't forget the market in Asia or in the other developing countries.
02:23
Mobile internet penetration in Asia is really growing fast. More than 50% are using already internet. Of course, with that also, investments are coming in also in startups. The other thing what we also want to talk about is we're tackling real problems.
02:41
Again, those are developing countries. People who might have been here already for the talk previously, you saw those are real problems, right? It's not just marginal. It's huge. We're talking about disasters which we can find solutions for. And those are also markets which we here in this room can tackle. And of course, with that also,
03:02
we have more innovation incubation spaces. Not as much as in Berlin. So let's start for the next 15 minutes. You'll hear three organizations and then you have plenty of time hopefully to do Q&A. I'm Lisanne Kuster. I'm the co-founder of Impact Up Manila
03:21
and maybe to share also a small little story, a personal story. I'm half Swiss and half Filipina. So I grew up in Switzerland 27 years long. I was there. And the six billion really is why or the talents in these developing countries, especially in the Philippines,
03:41
are why I really wanted to go back to the Philippines and spend time there. So what did I do? Or what did we do with my co-founders? We joined one of the largest entrepreneurial networks worldwide. It's called Impact Hub. Who knows Impact Hub? Oh, that's so nice. Okay, cool.
04:00
For the ones who don't know Impact Hub, we are really a cross between innovation center, global network incubate and coworking spaces. We believe that entrepreneurship has a positive impact in the world. We created last year 5,300 jobs and had some fundings and programs, et cetera.
04:21
In the Philippines, we have six coworking spaces. We're doing this with our partner KMC Solutions and also to give you maybe a small insight of that. Normally, coworking spaces or also Impact Hubs have one big hub in one city or maybe bigger hubs in some areas of the city. The Philippines, especially Manila,
04:42
has 16 cities with 15 million people. For seven kilometers, going from one point to the other, you need sometimes two hours. I know for people in Berlin, you can't imagine that. Also for a Swiss person, it's like, oh my God. Seven kilometers in two hours, this is just like, oh. So that's why we also said,
05:01
okay, we can't just have one hub. We need to have six hubs. And that's why this is a difference. Also from Berlin, for example, or for a developed country to a developing country, you need to look at the market. You need to ask your users, what do you really need? And people, of course, were responding that
05:21
they don't want to travel to work for like two hours for like seven kilometers. The other thing which we discovered also is we, again, we have a lot of talents in the Philippines, a lot of entrepreneurs, also a lot of techpreneurs, by the way. But we didn't have too many incubation programs
05:42
or incubators. We have just a few. One of them is also here, Jay, from Launch Garage, also from the Philippines. And that's why we said, okay, we want two different incubation programs. We do, for example, in infrastructure verticals, let's say for energy or mobility or for women, or we also collaborated for startups Asia Berlin,
06:04
to bring people from Berlin also to Asia to explore how it is there. The other topic which I said before is tackling real problems. And again, this does not need to be only Filipinos for Filipinos. This can also be Germans for Asians
06:22
or Asians for Germans, whatever. So for example, oh, so this is a drone company. They are our first winner for one of our incubation programs for mobility. It's called SkyEye. They are having drones. And the cool thing about this is two things.
06:40
One, yes, we also have drones. Second, the drones are used because we are having around 24 typhoons every year. And the drones are also used to see and oversee the areas which people should not live in because there will be, you know, the water will just come again. The typhoons will just hit them.
07:02
And that's why, for example, we are using drones. Another thing we are also doing, or we want to do is, it's super inspiring to be in Berlin because we also see how many corporates and how many organizations are actually in the innovation field. We don't have that. This also means it's a huge opportunity, right?
07:22
We are trying to be really inclusive and that's why we are having a lot of like innovation and incubation workshops here too. One is with Citibank and one with LBC. So what I want to say or highlight out here is, again, there are so many opportunities to collaborate with.
07:41
And this is one of my favorite quotes. Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it's the only thing that ever has. Everything we see, everything we can touch, every software, everything we see, it always started just with you, sir, or you madame, with someone of this room.
08:02
And let's really try to create more impact and more innovations in a really global world. So that's my share. And of course, now I would love to have Rosanna on stage.
08:23
Hi, good afternoon. My name is Rosanna. I'm the founder and CEO of Sparkle Lab, a design and innovation hub based in Manila. When we broke ground about four years ago, Sparkle Lab was imagined as a space of possibility and a space of possibility especially for young people.
08:41
So Sparkle Lab is a research and development space where we imagine the future of education. What new models for engagement, for student success, and for teaching and learning can we come up with? You know, I always use these series of slides and it's like when you look at other industries, for example, the aviation industry,
09:01
and you see how much has changed and how much innovation has occurred within the span of 100 years, for example, or even in communications technology, from the telegram to getting messages from all over the world at the touch of your phone. And then when you look at the classrooms of 100 years ago and you look at the classrooms of today, it's really quite sad because they're exactly the same.
09:23
And we've innovated so many sectors of society, but not education, and that is problematic. It's problematic because the kids we're teaching today are not the kids we were teaching 10, 20 years ago. And sometimes this results in a little bit of confusion, as you can see with this slide, or even frustration and irritation on the parts of kids
09:42
as well as parents and teachers. And so at Sparkle Lab, we are a maker space where on the one hand, we conduct workshops for kids on Steam. So we do robotics, electronics, we do e-textiles, wearable technology. We teach about game design and code.
10:01
But the focus is really on creating these playful, gamified learning experiences so that kids can always be at wonder with the world around them and so that they can also become producers and find creative solutions to local problems. So just in sum, Sparkle Lab,
10:22
we wish to re-imagine what learning will look like. And that doesn't necessarily mean schooling, because we think of education more broadly. It's ecological, it happens at the home, it happens in school, it happens in the park, in the playground, in the supermarket. We are trying to sow the seeds for a more playful, creative society
10:41
by using, for example, gamified learning experiences. We're also reaching out to kids and having kids solve problems by giving them design challenges, which may affect the sectors of education to public health or civic participation, for instance. But more importantly, we really try
11:02
to foster a feeling of empathy among the kids, right? And telling them that our technology is only as good as our humanity. So our kids have worked with people who have survived through disasters, for instance. They've done collaborative filmmaking with these kids.
11:20
They've done outreach programs and tried to develop toys and assistive technology for kids with disabilities, for instance. And so the vision is really that of creating an incubation space, but for kids, where young people can come up to solutions, but for problems that kids and teens face.
11:42
So yes, thank you very much. It's a little bit about Sparkle Lab. I'll be passing you on now to Bahar. Hello, everyone. My name's Bahar, and I'm from Nepal Communitare. And who are we?
12:01
So Communitare's a really young organization. We're about a year and a half old. And what I find really brilliant about the entire organization is the premise behind innovation. The idea that we have is that disaster can become a catalyst for innovation, especially in a resource-limited country like Nepal. So that means that when countries
12:22
have to rebuild their lives with limited resources, they're that much more creative. That's the assumption. And what we are doing at Communitare is creating a resource center and harnessing some of that ad hoc innovation that's emerging in rural contexts, in Kathmandu itself, and seeing if we can convert some of these brilliant ideas
12:42
into successful small businesses. Yeah, but we're only a year and a half old. So I'm hoping to connect here with folks who are gonna help me get there, help us get there. So how do we do that? We have a maker space. We have this workshop that some people in this room
13:01
helped us put up during our Maker Faire last year. And it has welding equipment, carpentry, electrical equipment. And basically, we also have 3D printers and drones and all that great stuff. And it's really a space for people to come and bring in their projects to prototype and design. And iterate and iterate and iterate
13:21
and get it to a point where maybe it can go to market. We also have a training lab and we provide coaching and mentoring and some co-working services as well. One thing that's really interesting about Nepal is even prior to the 2015 earthquake, there was a growth of entrepreneurship. And these social enterprises were being initiated
13:40
by young Nepalis in their 20s, educated in Nepal. So this was not Nepalis who left, like my husband, and came back. But these are Nepalis young that are saying, I'm ready, I'm ready to give it a try. I'm ready to take the risk. I have a really great idea. And that's just evidence that there's a lot that can be accessed in the developing world.
14:00
There's a lot of stuff that's open source. There's a lot of exchange that's happening. There's a lot of cross-cultural collaboration. And they're accessing it, and they're hacking, and they're building, and they're doing some brilliant work. So when Communitaire really came up, it was actually, the timing was really brilliant because the community was ready for a maker space.
14:21
They were ready for an innovation hub. And what we do is we engage people when they're makers. And what we want to do is take them through this process and see if we can make them and convert them, coach them into becoming successful businesses. We don't provide funding. What we do is we connect them to the seed funding that's needed to get them to the next level.
14:41
As you can imagine in a country where there's a lot of eager young people wanting to sort of enter social entrepreneurship, the groups that are funding them are really looking for them to be at a certain level. And so that's what we're doing. We're trying to get them to a point of readiness to be able to absorb more substantial funding. So one of the most exciting things that we did last year
15:03
is where I met Geraldine from the Global Innovation Gathering, is we held the very first Humanitarian Maker Faire. And this was attended by 1,500 people. Both international and locally in Nepal. And in the midst of torrential monsoon rain, we held a brilliant celebration of how the maker movement can really be applied
15:23
to the humanitarian sector. And some of the projects that were showcased is a virtual reality project that really looked at how can disabled communities access the Himalayas, which are so difficult to go trekking, but how can we increase tourism for communities that don't have access to it?
15:40
We have a young man here from the Robotics Association of Nepal, who's completely, this team knows how to build drones with local parts and pieces instantly. They are able to hack things and rebuild them for a fraction of the cost. We have a hydroponics project, which was about how to basically grow and produce food in non-seasonal times.
16:02
So it's basically addressing food security in Nepal. We had a young man, no engineering background at all, but as a result of the earthquake, had a few people in his community who were disabled. And in Nepal, you eat with your hands. He was watching people eat with their feet and he just had to do something about it.
16:21
So he came up with a feeder, and that's what you see in the corner there. One of the most brilliant prototypes that he came up with, simply because he was committed to this idea that he needed to address in his community. We had women who were welding and we just had really a brilliant celebration. And this is just the cusp of what's possible in Nepal. This was the very first time we did this.
16:43
What's happening now, and actually this is not recent, but migration is a huge, huge challenge for Nepal right now. There's about 1800 people who leave the country every day across the spectrum, mainly low-skilled laborers, and we've got the brain drain. So people are leaving the country to get higher education, better jobs.
17:01
And majority of them are all men, like over 90%, or 95%. So we've got villages where there's no men, no young men there. You've got elders, you've got children, and you have women. That's all that's left. And this is happening. This has still been happening. So this is what we're seeing now in our space,
17:21
which is really dynamic, and to date, we have not received any significant donor funding. So that means we're community-responsive, not donor-driven. And what that allows us to do is truly see who's coming into our space and what are they doing. So we're seeing more and more young women come in and start brilliant projects. So here, Praditha was here at Republic last year,
17:43
and she is one of the founders of a group called Ms. Tech. She's now doing her MBA in technology and business. Brilliant, she's the second cohort in this one university that's doing this project, program. And we've engaged her to see if a 3D printing business is viable in Nepal.
18:01
So we've started a 3D printing lab, and she's part of the design team, along with Pratna. So there's a need or a question about whether we can engage women in the ICT sector in Nepal. Can they fill a void that's there and where men are gone? And the question that I have, I'm not a techie,
18:21
so I'm really curious, in a very patriarchal culture, what is this gonna do to gender roles? I mean, historically, we see this all the time, where men leave, women fill a labor gap, and what does that do to their identity, their role, their sense of empowerment? So this is a wonderfully interesting time in Nepal, where a disaster, economic shifts,
18:42
are presenting themselves in really wonderful opportunities for women. And so we're gonna see now, is our space conducive to presenting and enabling women to enter a sector that's traditionally not a career opportunity for them? And see what it does over time to gender roles as well.
19:03
I was just gonna, I think we have some time, I'm gonna show you a little fun video of some young people doing some fun stuff during our Maker Faire. So we held a summit where we prepared Nepali makers to demonstrate and exhibit and pitch their projects.
19:22
So this is part of that summit.
19:48
Not a lot of young women, right? Didn't see a lot of young women. But this is the kind of joy that actually comes out of making, which I'm sure you all are quite aware of. So this is basically what Communitare is all about.
20:02
I just wanted to open it up to any questions you guys might have for any of us here. Thank you.
20:25
First question over there. Arne Ernst, House of Research. I would like to know about scarcity as a driver of innovation and businesses which probably came up out of scarcity and maybe not directly ITC related.
20:44
Thank you. So one of the big scarcities right now is access to finance. So I know that's probably not the type of answer you're looking for, but right now the biggest challenge right now is there's a huge growth and interest in entrepreneurship
21:01
and access to finance and capital is one of the biggest challenges. But scarcity right now is also in Nepal itself is skilled labor. Like we get our carpenters, our electricians from India. And then our skilled labor goes to the Middle East. And so there's a huge need to build our skilled labor
21:23
and build a market, a fair market to pay them appropriate wages so that they stay in Nepal.
21:40
Hello, yeah. Thanks for the presentations. I'd like to ask a question around supporting small businesses and entrepreneurs. Once those businesses have been established or registered, we often see these businesses fail very quickly. So what steps or measures or strategies are you guys implementing to make them more likely
22:02
to succeed and continue to exist? Thanks. Question? Okay, great. I think the whole failing and getting up again or whatever, I think it's very similar to also these kind of markets here. I think one of the big differences is that,
22:22
for example, seed funds or VC or angels are not really existing. What does exist is mentorship and skill development programs. So that, we're trying with these programs also to ensure that they can run all the way. What we also see, if they do fail,
22:42
so maybe two things. If they do fail, sometimes they also join corporates because sometimes they are like small one people innovation departments. Here I guess they're like 20, 30, 40, 50 people in one innovation department, but there it's maybe one person. And failed entrepreneurs join corporates
23:04
as those innovation staff. The other thing which we also see, for example, is yes, of course, everyone is always talking about unicorns, but maybe also going back to that question scarcity, a lot of entrepreneurs are also doing it because of the impact
23:21
and also because they want to create not just, not livelihood, but they want to create a solution. They don't want to create the next unicorn. So that's why it also keeps them sometimes longer alive and not failing that fast because they don't need to be the next billion company.
23:42
There was a question over here. Olivier. No, I think it was a woman, right? No? No? There, the first row. The first row, ah. Not a woman, but also, nice hat. Hello, I'm Olivier. My question has to do with, you mentioned it briefly there about the support system of the existing entrepreneurs
24:03
or businessmen and mentors, does that exist enough in Nepal and in the Philippines? Is there enough support to help pull up these young people that want to be the next entrepreneurs? In Nepal, I don't think there's enough
24:22
with the type of initiative that's taking off. So there's a lot of startups, there's a lot of young people who want to sort of build out their ideas and there's a few really successful, wonderful entrepreneurs that are mentoring a lot of these groups and I think they're really just spread really thin. So a lot of times what needs to happen
24:42
is ongoing coaching and mentoring and that doesn't seem to be as sustainable as we'd like it to be. One of the things that I think I was talking to some of the folks here is, at least in Nepal, collaboration is really challenging right now. So there's a lot of people, people are really protective of their ideas and so even if you come in to say look, I want to help you,
25:02
I want to build a partnership, I want to get you to that next point, there's a lot of hesitation, especially with young people who are brilliant, seeing that their ideas are just going to be exploited. So that's been a bit challenging to build trusting relationships so that we can sort of coach and mentor groups to success. I think I agree absolutely with Bahar.
25:23
The other thing is they don't need to be just from the city, right? They can, to talk again about involvement or to talk about engagement, there are so many cross-regional or cross-national programs which are happening. I mean again, Berlin is doing fantastic stuff. There is a program which is called Startups Asia Berlin
25:42
where people from here and also from Bangalore, Jakarta and Manila are traveling around the globe to actually also mentor each other. So it doesn't need always to be localized, the whole mentorship, but it can be all of us talking or collaborating with each other. So please make use out of that.
26:02
The other thing which I would like to also point out to be involved is not just skill development, right? For example, startups here, you can also, for example, prototype in developing countries. You can also tackle these markets or again, like prototyping all your, whatever, developments or whatever you want.
26:21
So there are so many different points how you can be involved and I think also for younger kids and for in the educational system, I'm sure you can also collaborate a lot. How would they do that? Probably quite a few ways that we could collaborate. One would be say sharing of knowledge and skills
26:42
and so if you, for instance, have a project that you would like to bring to young people in the Philippines or like teach a workshop and stuff, we would love to help you over. So that's one capacity. Another one is that one of the visions of Spark! The Lab is really is that we want kids in an international setting to be able to join together in a community of practice
27:03
and mentor one another and create all these wonderful projects together. And so you can talk to me after a little bit more about this but one of the things that we want to do is maybe get kids from Berlin, from Manila, from Tokyo, from Bangalore, come together and think of solutions to local problems as a team.
27:22
And to make it super easy, I mean, just join groups like Global Innovation Gathering or Impact Hub or you know, just talk to us. Thank you. Thank you and if there are more questions and if you are interested to talk a little bit longer in the main hall at the Blue Bus at the Makerspace, there's also all the three ladies will be there
27:42
to answer your questions and have a nice talk. And just a closing remark, I remember a few weeks ago, we had the Women G20 Summit. That was the one where Ivanka Trump said she's a feminist. And yeah, and I thought of maybe it's time that all these levels growing together. The World Bank wants to developing women entrepreneurship programs.
28:02
I don't know how far away these ideas are but I think this grassroots and that level has to connect but that was just an idea to closing that. Thank you for being here. More questions at the Blue Bus. I'm sure there are more questions in the room but at first, thank you all three of you for being here.