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10 Common Mistakes In Developing an Enterprise Culture

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Many projects designed to stimulate an enterprise culture fall foul of one or more of the following:

  1. they focus too much on the individual and not enough on the enterprising ecosystem – failing to address social context – instead trying to help individuals to ‘overcome the odds’
  2. believing that the reasons for low levels of enterprise are because we have not provided the right building – commissioning the latest interpretation of the ‘catalytic space’ – hoping that if we build it they will come
  3. failing to educate and engage other stakeholders and agencies involved in community development about the role of enterprise in economic and social development.  Helping them to see that this is about education and the development of human potential
  4. focusing on persuasion rather than education – using ‘carrots and sticks’ to drive people towards enterprise – rather than helping them to clarify their own self interest and then developing their power to realise it
  5. pretending that enterprise is a good thing – instead of portraying it in a balanced way as a double edged sword – a powerful vehicle for life that can crash horribly or take you on a wonderful journey
  6. skimming communities for those with most developed ‘enterprise potential’ and helping them take the last few steps – instead of helping those who have not explored their enterprise potential take the first few steps – ‘Have you got a great business idea?’
  7. designing interventions around 121, 12-several and 12 many interventions – instead of around word of mouth and other network effects – failing to train gatekeepers to act as educators and enthusiastic referrers
  8. designing services that are policy led (designed to achieve specific policy goals) rather than client centred – designed to help clients to become more enterprising in their own terms
  9. starting from where we want to start rather than from where clients are
  10. failing to recognise that strong, long term relationships are critical to building the trust and support necessary to enable people to take more enterprising actions – and a bonus number 11
  11. failing to build teams capable of starting sustainable growth oriented business – instead pandering to the myth of the lone entrepreneur bravely riding the range.

Any that I have missed?

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Rise and Fall

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I am sad to hear that the Rise Catalyst Centre in Seacroft, Leeds, that was only opened in November last year is closing.  Instead of an investment producing entrepreneurs it will  now be used to train bricklayers and similar trades.

I have nothing against bricklayers, but genuine entrepreneurship is needed to help communities to grow in modern economies.  It is in large part an over-reliance on employment in blue collar industry that has held communities like Seacroft back.

Seacroft residents interested in enterprise will now have to meet their advisers at Seacroft library rather  than in a wonderful purpose built facility. 

However, putting the advisers where the community already meet makes a lot of sense, saves a lot of money and was always the right thing to do.  We have to take our work to the community and not expect, that just because we have built great facilities, that the community will come to us.

Worlds Most Wicked Problems – Or Just Great Questions

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2008 Survey of Wicked Problems

  1. Balancing long-term goals with short-term demands
  2. Predicting returns on innovative concepts
  3. Innovating at the increasing speed of change
  4. Winning the war for world-class talent
  5. Combining profitability with social responsibility
  6. Protecting margins in a commoditizing industry
  7. Multiplying success by collaborating across silos
  8. Finding unclaimed yet profitable market space
  9. Addressing the challenge of eco-sustainability
  10. Aligning strategy with customer experience

Survey sponsored by Neutron and Stanford University. See the Business Week article: “Neutron and Stanford’s Survey of Wicked Problems”

Multi Level Marketing and Enterprise Development

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I went to a fascinating workshop last night organised by a multi level marketer and hosted at Shine in Harehills.

The evening kicked off with a series of presentations from the Business Link Yorkshire Ideas Team, Job Centre Plus and HMRC.  Three competent, wide ranging presentations.  For me, just too many talking heads.  Still I suspect all three were able to put ticks in boxes and they certainly gave the evening a solid air of credibility and professionalism.

After a short break things got really interesting.

We were presented with an introduction to Multi Level Marketing and how it differs from pyramid selling (pyramid selling is illegal and only those in at the beginning can get to the top, MLM is much more meritocratic in that if YOU do the work YOU get the rewards was the message I picked up).  The person making the presentation was a Multi Level Marketer for one of the largest MLM oufits in the world, Herbalife.  A little web research on Herbalife leads to some very mixed messages.  Clearly for many people it works well; they make money and enjoy good health.  The internet suggests that this is not everyone’s experience.

http://www.mlmwatch.org/04C/Herbalife/herbalife00.html

http://herbal-nutrition.net/st

http://www.club40.net/sales%20site/shop.htm

http://herbal-nutrition.net/goodfoodguide

After the presentation one of the current herbal life distributors told us how it had transformed her life and it could transform ours too.  We could make money while we are on holiday, get repeat business, never have to talk with strangers, enjoy low start up costs etc.  It all sounded too good to be true.

This was not enterprise education – this was recruitment.  This was not impartial and independent advice.  It was MLMers doing their stuff, recruiting more MLMers and piggy backing on the credibility of Business Link, HMRC and the Job Centre.

Finally we had a very brief and very credible presentation from Robert Looker.  He provided a balanced and professional introduction to the concept of the franchise.  Robert was open about the fact that he worked for Exemplas.  He did not point out that Exemplas were one of the partners behind Business Link Yorkshire.

I think Business Support organisations have to engage with MLM schemes.  They are in our communities.  The vast majority of those ‘Need an extra income’ signs fixed to lamp posts lead to MLM organisations.  We have to find ways of making sure that they add value in our communities and do no harm. MLM works for some people not all.  Its reputation is mixed.  Typically it requires you to have a network of friends with disposable income (not massively common in super output areas).

I don’t beleive the public purse should be used to provide a platform for any single MLM organisation – although it should be used to educate about MLM.  If the workshop had been an impartial ‘All you need to know about MLM’ then I for one would have been much more relaxed.  I was pretty shocked that one MLM outfit had established this platform of credibility to promote themselves directly into the community.  This was neither independent nor impartial.

I have been involved in the development of the Business Link brand for over 15 years.  I understand independence and impartiality.  I also understand how easily these brand values are compromised – and I think they were last night.

Developing more enterprising cultures in ‘areas of deprivation’ is difficult  and fragile work.  There are always ‘get rich quick and easy’ schemes looking to part people from their cash and we need to be very careful to help people make good choices as we prompt them to flex their enterprise muscles.  We bear a burden of responsibility as we encourage people to be more enterprising.

I  doubt that our responsibilities are best discharged by wrapping advocates for one direct MLM organisation in the shrouds of publicly funded  business support.  I am sure it is the herbalife agents who will be following up interest. I am also sure that it was the public purse that picked up the tab for the refreshments.

I am distictly uncomfortable.

Am I the only one?