Introduction, Creative Capitalism, and Disruptive Leadership

[Mark Beckford]

Hi all,

I am a new member of this social network as it aligns with my passion for building high-growth businesses using the principles of “creative capitalism” to create profits and progress in untapped markets and under-served populations around the world.

After 11 years at Intel, I left to take some time off and have started a consulting business as there are not many companies that are pursuing businesses that align with my passion.

I recently returned from a three year assignment working and living in China (I led the group that created Intel's Classmate PC and World Ahead Program.) I have had the privilege of doing business 40+ countries around the world, serving as Intel's channels/emerging-markets spokesperson, and have presented at global leadership gatherings, including the World Economic Forum and the World Congress of IT on the role technology can play in accelerating economic development. I will be moderating a panel at SoCAP next week and will be actively tweeting (my twitter handle is http://twitter.com/mbeckford).


I have recently started blogging about disruptive strategies for creating high-growth business in emerging markets at http://www.disruptiveleadership.com and am a staff writer for NextBillion.net

I am looking forward to contributing and learning from this community.


Mark

[jessica romo]

Hi Mark,

I have been reading your blog. I think is great you want to share your experiences with the community. I was wondering if you could let me know a couple of things:

In your experience what kind of sustainable activities can be also profitable? because we know that most of the sustainable development projects are conducted via NGOS and governments but many companies (other than the ones investing in renewable energies) don't seem to have the same interest in developing markets, specially if they are small and isolated communities. A very good example would be driving a Lorrie around a couple of communities that have abundance let's say in coconuts. Many communities if not all are more than capable of producing vegetables or fruits that can be a good source of income for the community but also for the company that decides to invest. I also think that big supermarkets limit greatly the possibility of these communities since they only buy wholesale and under just in time conditions. If they were to accept small portions of the products that local communities produce both would benefit.

Simple example but again it seems that stakeholders just want to get as much money out of their investments and most of the time that could be re-invested in the company or more projects. Anyways, I hope you could give me your business man opinions and if you would agree for example to impose some serious regulations to companies in order to make them more sustainable and socially responsible.

Thanks,
Jess

[Mark Beckford]

Hi Jessica,

I replied on my blog and via email, but so others can read it as well, I thought I'd share my response here.

“In your experience what kind of sustainable activities can be also profitable”

I would turn around your question. Can a focus on profit make nonprofit businesses more sustainable? I believe that is the crux of the argument around social and creative capitalism, social enterprises, and what not.

This effort is in its infancy. At the Social Capital Markets conference a few weeks ago in San Francisco, a question was asked “Is there any successful social enterprise out there besides microfinancing?”

There really isn’t with the exception of smaller efforts. (Check out OneRoof). The examples are thus limited. I do know that for profit companies like Intel, AMD, and Microsoft are serious about focusing on very poor communities with new products and services, and have had limited success at this point at the very bottom of the pyramid.

These companies do see the opportunity. I think it will differ industry by industry depending on the difficulties of tapping into the BOP in cost effective ways.

The real reason of the limited examples is that doing this is very hard. For nonprofits and for profits.

I think there will be slow but improved progress as the social enterprise movement takes off. For profit companies that have the least barriers to entry will be the first to begin offering products and services, and as these hopefully great better conditions, prosperity and infrastructure, other companies will follow suit.

Regarding your last question: “if you would agree for example to impose some serious regulations to companies in order to make them more sustainable and socially responsible,” I would NOT impose regulations in this case as it would only add extra burden/cost and unnatural behaviors that in the long run would hurt vs. help. Regulations are necessary to prevent hazardous externalities that pure capitalism brings (e.g. exploiting labor, pollution, etc.). But forcing companies to invest and focus in specific areas puts government bureaucrats in charge of enforcing business dynamics that will force companies to inefficiently manage their business in a less impactful manner.

The movement has begun, and I think more examples will be forthcoming. Currently the movement is in experimental phase.

Thanks for your comments and your interest.

Mark Beckford