Tag Archive for 'Business'

Supporting Innovative Design

Quote:

“Here are a few strategies suggested by experts to encourage innovation that might surprise you: Hire naive misfits who argue with you; encourage failure; avoid letting client input limit your vision; and fully commit to risky ventures.”

link: Creating a firm culture that supports innovative design

A Couple of Ideas for Social Entrepreneurship

Quote:

So he started Orphans Against AIDS (www.orphansagainstaids.org), which pays school-related expenses for hundreds of children who have been orphaned or otherwise affected by AIDS in poor countries. He and his friends volunteer their time and pay administrative costs out of their own pockets so that every penny goes to the children.

Mr. Klaber was able to expand the nonprofit organization in Africa through introductions made by Jennifer Staple, who was a year ahead of him when they were in college. When she was a sophomore, Ms. Staple founded an organization in her dorm room to collect old reading glasses in the United States and ship them to poor countries. That group, Unite for Sight, has ballooned, and last year it provided eye care to 200,000 people (www.uniteforsight.org).

Universities are now offering classes in social entrepreneurship, and there are a growing number of role models. Wendy Kopp turned her thesis at Princeton into Teach for America and has had far more impact on schools than the average secretary of education.

One of the social entrepreneurs here is Soraya Salti, a 37-year-old Jordanian woman who is trying to transform the Arab world by teaching entrepreneurship in schools. Her organization, Injaz, is now training 100,000 Arab students each year to find a market niche, construct a business plan and then launch and nurture a business.

The program (www.injaz.org.jo) has spread to 12 Arab countries and is aiming to teach one million students a year. Ms. Salti argues that entrepreneurs can stimulate the economy, give young people a purpose and revitalize the Arab world. Girls in particular have flourished in the program, which has had excellent reviews and is getting support from the U.S. Agency for International Development. My hunch is that Ms. Salti will contribute more to stability and peace in the Middle East than any number of tanks in Iraq, U.N. resolutions or summit meetings.

Another young person on a mission is Ariel Zylbersztejn, a 27-year-old Mexican who founded and runs a company called Cinepop, which projects movies onto inflatable screens and shows them free in public parks. Mr. Zylbersztejn realized that 90 percent of Mexicans can’t afford to go to movies, so he started his own business model: He sells sponsorships to companies to advertise to the thousands of viewers who come to watch the free entertainment.

Mr. Zylbersztejn works with microcredit agencies and social welfare groups to engage the families that come to his movies and help them start businesses or try other strategies to overcome poverty. Cinepop is only three years old, but already 250,000 people a year watch movies on his screens — and his goal is to take the model to Brazil, India, China and other countries.

link: The Age of Ambition

Price List of Bribes in Russia

Quote:

Perhaps most interestingly, the INOP-CESSI study also produced a “price list” of bribes. According to the list, a place on a party list for a State Duma election cost $2 million-$5 million while getting legislation introduced in the Duma for consideration costs $250,000. For a state monopoly to win a “goszakaz,” or state purchase order, it must pay 20% of the order’s total value; for it to participate in a national project, it must pay 30-40% of the project’s total value; for it to get a line item in the federal budget, it must pay three percent of the project’s total value.

A large private company must pay $1 million-$5 million to get a license, prevent a license it has from getting revoked or get a competitor’s license revoked. For a large private company to win a “goszakaz,” it must pay a third of the order’s total value. For a small business to ensure that a transaction is carried out, it must pay a third of the transaction’s value; in order to get “help” from officials, a small business must pay 10% of its total profits. Getting customs duties reduced costs 30-50% of the sum on which the duties were assessed; getting tax arrears written off costs anywhere from $1000 to 30-50% of the sum of the arrears.

To get the Central Bank to begin examining documents costs a bank $500,000, while winning the right to transfer federal budget funds costs a bank five percent of the sum of the transfer. To win a case in a civil court or an arbitration court costs 10% of the awarded damages. To win a grant costs a charitable foundation 20-30% of the value of the grant. Finally, according to the INOP-CESSI study, to get a television “talking head” to criticize an official costs $20,000 a month (Vedomosti, February 6).

link: Researchers Study the “Nature and Structure” of Russian Corruption