Hard Work is only worth it in Right Conditions

[Warning Minor Spoiler Alert]

In season three of House of Cards Frank Underwood’s legacy as President depends on the success of a job package. In the middle of the season, Frank acknowledges that hard work is only worth it in the right conditions. Being consistently aware of society is difficult and when others cannot see the value of an idea hard work brings minimal results. Amongst other factors, timing, separated the success of Facebook to Myspace and one should consider if an idea has value others. Timing is complex and involves knowing whether an idea meets a demand and is supported by physical, societal and institutional conditions.

Physical Environment- does the infrastructure exist for the successful implementation of the idea?

The physical environment surrounds two aspects, (i) do spaces exist to support the idea and (ii) how to best use the space for success. When companies are started in close proximity a growth cluster can be formed which improves access to financing, reduce cost and encourage funding. The nanotech industry started from product development research by IBM to allow scientist to work with nanoscale samples. Prominent universities pooled resources to create a collaborative research space to share expertise which reduced equipment and attracted more funding to the industry. Caribbean entrepreneurs should be alert to their physical conditions to find opportunities for collaboration such as growth clusters.

Secondly, technological development which increased broadband penetration and simplified watching videos online contributed to Youtube’s success. Adobe Flash replaced the codex system to watch videos online, therefore Youtube became a platform that drastically reduced barriers to putting content online. Youtube further invested in six studios to give content creators easy access to quality equipment and expertise. Content creators can now experiment in a low cost environment using state of the art equipment to give viewers the best experience. A strong lesson is that a venture benefits most when the physical environment is used to improve its value proposition.

Societal Conditions- does the idea satisfy a need or provide a benefit that is a relevant to your society

Entrepreneurs should consider whether entrepreneurship is stimulated in their society and if others can get value from their idea. Ideas are more successful when they address relevant challenges and needs in a cost effective manner that empower persons. A celebrated example is the Grameen Bank which uses microloans to finance disadvantage persons. The widespread poverty in Bangladesh gave this model acclaim by creating a sustainable business while lending to poor people. In Brasil, the ACT empowered natives to advocate against deforestation by training them with GPS equipment to map their ancestral lands. Natives can now supply accurate information to authorities for enforcement of local forest conservation efforts. Air BnB was passed by investors but the need for extra money during the recession made renting to strangers attractive leading to its success. These examples highlight that the idea was valuable as persons became empowered to address their challenges. Customers can respond skeptically when the societal context is misread. Tidal struggles as a music streaming service as customers cannot relate to its value and would prefer to use free services like Spotify. The dynamics of streaming do not directly affect customers as most companies operate at a loss but manage to stay afloat.

Institutional Environment- do the current rules and regulation encourage such an enterprise?

Entrepreneurship can be found anywhere at any point in time but its impact is guided by policies and institutions. The institutional environment provides the rules (formal and informal) that outline how certain activities should be legally commercialised. Incentives like fuel subsidies, financial assistance and relaxed taxing direct entrepreneurial efforts towards certain activities while discouraging others. Governments can only foster an environment conducive to business because there is no ‘one size fits all’ entrepreneurship policy. In Uganda, after independence the Ugandan Commercial Bank was established as a source of credit with less stringent rules for small African entrepreneurs. Likewise to increase the number of persons able to invest the JOBS Act created the legal framework for crowdfunding as a means of publicly raising funds online. The probability of success increases when entrepreneurs appreciate how accommodating the institutional environment is to their idea.

In conclusion, an awareness of the conditions can help Caribbean entrepreneurs direct their efforts. Frank Underwood’s awareness of the political climate and laws made his plan start on a limited scale. I would never advise Frank’s methods however we can respect his ability to get results by understanding his environment.

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Joshua Hamlet is an evangelist for the importance of collaboration to entrepreneurs and successful start-ups. He started Inspire Consulting Ltd (ICL) which focuses on start-up education, entrepreneurship and mentorship in the Caribbean. He works in research and business development with civil society through The Rose Foundation. Mr. Hamlet holds a Bsc. Psychology and Msc. International Relations from the University of the West Indies.