Times have changed....here is how we can keep up
We interact with each other, buy items and use transportation oftentimes with little consideration of how technology is changing these basic activities. As these changes occur, the Caribbean should be looking towards tools such as crowdfunding to keep pace. Crowdfunding uses campaigns to raise funds online from community. With regional entrepreneurial ecosystems in their infancy, crowdfunding is the perfect tool to give entrepreneurs the support needed to participate in global trends. A brief review of how these basic activities are changing will demonstrate why crowdfunding is important to Caribbean entrepreneurs.
- Interacting with people
Digitising interpersonal interaction began in 1979 when Usenet developed the first digital bulletin board. Users could read and post messages into the groups. A decade later internet relay chat made it possible to share files, links and keep in touch. In 1997, Six Degrees, was the first social media platform and Wikipedia, in 2000, was the first free online encyclopaedia service connecting people to new information. Between 2000 and 2014, platforms such as Facebook, Youtube, Reddit, LinkedIn, Flickr, WhatsApp, Snapchat, Tinder and Vine were launched. Each platform digitised a different aspect of interpersonal interaction; Facebook focused on social connections, Youtube on video content, WhatsApp on messaging and Snapchat changed how we share stories.
From work to leisure are now digital with the latest trends applying artificial intelligence (AI) so platforms can interact with us. Popular examples include Snapchat Filters and Instagram Stories. The takeaway for Caribbean entrepreneurs is the huge value in digitising niche aspects of interpersonal interaction. Further, successful platforms are easy to use and allow customers to transition seamlessly to a digital reality.
Crowdfunding is a digitised version of regional practices such as the sou-sou and using it means that entrepreneurs benefit from technological improvements.
- How we pay
In November 2016, India began demonetising by renouncing several banknotes as legal tender. Demonetisation has forced the unbanked to join digital payment platforms. Paytm is one platform that has benefitted from demonetisation, growing by 400%. The exponential growth in individual and merchants using the platform allows users to shop at bakeries and fruit stalls without cash.
As India represents 17% of the global population, the initial outcomes of their cashless initiative have some lessons for the Caribbean. Firstly, entrepreneurs have to be well positioned in the market to benefit. India’s initiative being government driven shows that regulation can quickly change. Paytm benefitted from having a strong business model when the change happened. Secondly, traditional financial institutions also want a piece of the digital payment space. These institutions are developing their own digital payment platforms to evolve and innovate alongside entrepreneurs. Finally, investments are available for digital payment platforms. Paytm’s growth attracted over $2bn in investments from Alibaba and Softbank. The platform is now going beyond payments to offer loans, banking services and even a ‘digital gold service’.
As Fintech continues to grow, crowdfunding should be used as a tool by developing countries to reduce their cash dependence and support regional digital payment platforms.
- Transportation
Automation, logistics and big data are the changing forces in transportation. Amazon, Ford, Google and Tesla are driving forces in automation. Tesla and Google continue to develop legal driverless cars and Prime Air from Amazon offers drone delivery to shoppers. While Ford plans to mass-produce autonomous vehicles by 2021. Logistics wise, blockchain technology is reinventing supply chain management. Blockchain acts as a system of checks and balances through its ability to create verifiable and auditable information packets from each transaction. Advanced telematics enable companies to monitor factors relating to the driver and the freight to improve efficiency. This technology will facilitate automated freight matching to generate the most efficient and cost-effective scenarios to transport loads.
Big data tools such as predictive analytics are also improving efficiency. Convoy uses analytics to match incoming deliveries with available trailers to reduce shipping downtime. This technology has wide application, customers can find cheaper insurance and dealers can streamline their inventory.
The Caribbean’s lack of manufacture in the auto-industry should encourage entrepreneurs to develop platforms that bring technological benefits to current road users. The growth of big data means new revenue streams for companies that can mine information for sale. This adds value to the market validation and customer acquisition aspect of crowdfunding campaigns. Crowdfunding is a practical way for entrepreneurs to get into high value services within the transportation sector.
As technology changes basic activities, crowdfunding can be used as a tool to assist entrepreneurs keep up with technological changes.
This article was originally posted on the nDuna platform....see it here
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Joshua Hamlet is the Co-Founder of a crowdfunding platform called nDuna. His company Inspire Consulting focuses on education and mentoring for Caribbean entrepreneurs and start-ups. He holds a LLB and Msc in International Relations.