The Rise and Fall of Entrepreneurialism
I ran across a blog post by Simon Black at the Sovereign Man blog recently, and because it is so timely, I thought I would post it here in its entirety. It discusses the emerging entrepreneurialism in Zimbabwa, as well as some of the effects of over-regulation on entrepreneurs in the U.S.
January 17, 2012
Santiago, ChileOne of the most phenomenal human beings I’ve ever met hails from Harare, Zimbabwe of all places. His name is Time. That’s seriously his name. When you ask him about it, he shrugs, grins, and says, “My mom felt that she was in labor for way too long.”
Time is a real Sovereign Man. He understands that his family comes first and foremost above all else, and growing up under the regime of Robert Mugabe, he had to get very creative in order to support his loved ones.
By the time he was 15-years old, Time could see the writing on the wall. Mugabe had all but destroyed the market and private property rights, and Time knew there would be absolutely no prospects for him in Zimbabwe.
So what did he do? He learned a valuable skill and looked beyond his own borders for the best opportunities. He spent years in the wilderness living with the native bushmen learning how to track animals. He worked diligently to improve his English. He read everything he could get his hands on about botany.
He traveled to Tanzania and Botswana to cut his teeth as a safari guide while Mugabe plunged Zimbabwe into hyperinflation. He worked hard, saved his money, and always sought to improve his professional capabilities to become a better guide.
When the smoke cleared, he returned to Zimbabwe and took a tracker job at one of the most exclusive lodges in southern Africa. I got to know him when I was visiting the lodge last year, and we became fast friends due to our common philosophical outlook.
Time and I talk regularly, and I’ve been helping him to invest in Zimbabwe’s burgeoning agricultural sector. Mugabe’s economic policies absolutely devastated what used to be one of the most fertile places in the world… but now it’s starting to make a comeback. Time is eager to capitalize on the opportunity.
A few months ago, he scrapped his savings together and bought a small piece of land that he wants to begin planting with various small-scale organic crops. I offered to pony up the $3,000 he needs to buy submersible pumps for irrigation.
“Western Union,” he told me, “is the most efficient way to receive cash in Zimbabwe. As you know, because of Mugabe, we don’t have our own currency anymore. But be advised, they’re going to give you a hard time when you tell them that you want to send money to Africa.”
My next call was to Western Union.
“I’d like to send money to Zimbabwe,” I announced to the operator.
“What’s the city and state, sir?”
“Zimbabwe.”
“Is that an international transfer?”
“Yes!”
“What country?”
“Zimbabwe.” I was about to lose it. I heard the familiar click, click of the keyboard as his system pulled up the country-specific rules.
“Uh, sir, we are obliged to discourage you from sending money to people that you don’t know. Did you receive this request to send money from an email?”
“No, it’s cool, I know this guy, we’re friends.”
“Yes, sir. But did you receive this request by email from an unknown person?”
“What did I just say? No. I know the guy personally, quite well. Let’s proceed.”
“Yes, sir. Will you be sending the money in local currency?”
“There is no local currency in Zimbabwe.”
“… sir?”
“Nevermind. Let’s just send US dollars. $3,000 total.”
“Yes sir. Now, US government regulations require that I collect your social security number for any money transfer in the amount of $3,000 or more.”
“What? Seriously? I’m calling you from Chile trying to send money to Zimbabwe. What business is that of the US government??”
“…”
“Look. Let’s just make the total $2,995. OK?”
“Yes, sir.” And then he proceeded to collect all the information about Time, confirm my credit card information, and all the other nonsense. After a few more minutes, he submitted the order for processing, and then told me,
“I’m sorry sir, the transfer has been declined.”
“What? Why? Was the credit card declined? I can call Mastercard.”
“No, sir, it was declined on our end. Our system refused to take the order. US government regulations require…”
Steaming angry, I politely thanked the man for his help, hung up, and sent an email to my banker in Singapore asking if they could send money to Zimbabwe.
“No problem!” she replied. Exactly the answer I was hoping for.
As I write this note, I’m happy to say that the funds are on the way to Time, and that he should be up and running by the middle of next week.
The whole affair was just another friendly reminder of why I try to avoid doing anything in the US at all. Regulations, financial tracking, consumer protection… it’s just too damn difficult to get anything done.
In fact, that I achieved my objective by using a flexible, “can do” bank in Singapore is probably the perfect conclusion to this allegory.
Well, it is great to see that entrepreneurship is coming back to Zimbabwe and that young people there can start their own businesses again. Maybe that could be an example for entrepreneurs in other countries.
On the other hand, it is sad to see how the U.S. is crippling free enterprise with an unbridled lust for more and more regulations.*
According to Senator Collins of Maine, there are over 4,200 new business regulations being prepared in Washington for imminent implementation—a large number of them aimed specifically at small business. That is why she introduced Senate bill S.1539 – Regulatory Time-Out Act of 2011, to slow down the avalanche of new regulations.
Of course we won’t even mention the customer service at Western Union.
Sadly, many people commenting on forums, blogs, and YouTube believe that all these regulations are good and proper—that they keep us safe and healthy. What do you think?
* The annual cost of federal regulations in the United States increased to more than $1.75 trillion in 2008. Had every U.S. household paid an equal share of the federal regulatory burden, each would have owed $15,586 in 2008. (SBA Office of Advocacy, September 2010)
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Create Guerilla Marketing Ideas
It is rare when new and attention-grabbing guerilla marketing ideas come along, that’s why they stick out so dramatically and we remember them. I think of guerilla marketing as anything of a promotional nature that is so far out of the box that it actually causes me to pay attention. Here is an example of what I mean:
Obviously, none of us are going to have the financial means to do something like this, but the point is—these people were thinking way beyond the typical car ads and they certainly caught everyone’s attention. I can’t remember a single car ad I saw on TV last night, but I remember this promo for Mercedes from long ago.
Now, the question is: “What can you do in your business that is different enough that it causes people to remember you and your product and service?” You certainly don’t have to spend the kind of money Mercedes spent on their promo piece, but you do have to be just as creative in your thinking.
Watch this video a few times and try to understand just how far they went away from the typical ads we are bombarded with for car sales. Then sit back and think about your own marketing promos and how similar they are to everyone else’s in your industry. Then try to take your thinking as far away from the “norm” as Mercedes did in their promo.
If you get stuck and need some inspiration for new ideas, take a look at Jay Conrad Levinson’s newest book The Best of Guerrilla Marketing–Guerrilla Marketing Remix.
What can you do in your business that can catch your customer’s attention and make them remember you…some pleasant, or exciting, experience that will have them thinking about you and your business the next time they want your product or service? Can you create guerilla marketing ideas for your business?
Think about it.
What extraordinary thing have you ever done to promote your business? I would like to hear about it.
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