January 17, 2012
Santiago, Chile

One 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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This is the third-annual Global Entrepreneurship Week, and more than 10 million present and aspiring entrepreneurs will participate in events during the week of November 14-20, 2011.

Anyone, anywhere can participate in wide-ranging activities that includes virtual and face-to-face events, competitions, and intimate networking gatherings. In the U.S. alone, 1,400 organizations will be hosting 3,500 events across most of our states. For information on entrepreneurship activities wherever you live in the world, click here.

Global Entrepreneurship Week is an initiative of the Ewing Marion Kauffman Foundation of Entrepreneurial Activity, the world’s largest foundation of its kind. Here is what Carl Schramm, President and CEO of the foundation had to say about this special week:

“For one week each November, students, educators, entrepreneurs, business leaders, and government officials come together to pursue one cause—to spread the power of entrepreneurship. It’s during this time that we celebrate the innovators who bring ideas to life, drive economic growth, and expand human welfare.”

Although supported by dozens of global leaders and well-know entrepreneurs, the mainstream media seems to have totally ignored the significance of the events of this special week. In the long term, these events could be much more significant to global economic stability and growth than all the G-20 meetings combined.

How many of you are participating in a Global Entrepreneurship Week event near you?

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In this case, the owner had an MBA from a prestigious business school, and while in school had specialized in entrepreneurship…she was a well-trained entrepreneur—or was she?

Here were the business problems that surfaced during the course of the show:

• This entrepreneur had no previous“experience” running a business. This was her first business.

• She had no “core knowledge” for running a restaurant.

• There was a distinct lack of passion for her chosen business. She said she wanted an existing business so she would not have to “start from scratch,” and this opportunity just showed up.

• She exhibited no leadership, nor control, over her staff. The cooks did whatever they felt like doing, and the owner was mostly unaware.

• This business owner spent little time on the “front line” with her people—she was oblivious to what actually went on in the kitchen. The “front line” was in disarray and she didn’t know it.

• She could not test the products she was serving customers, because she was a vegetarian, and this was not a vegetarian restaurant.

• She was also dating one of her employees, which, in a small business, totally precludes any sense of leadership within the business.

• This entrepreneur was totally out of touch with her customers. The food was poor, and she responded to their immediate complaints with apologies, but never tried to fix the long-term problem.

• No improvements were ever made to the customer’s “experience” during the five years this person owned the business. The menu stayed the same, as did the décor, and dishes.

• The computer system for transmitting food orders to the kitchen was antiquated and worn out.

It was obvious that during her MBA studies, this person was not taught much about becoming an entrepreneur and actually operating a Business. Of course, Gordon Ramsey “fixed” everything and turned the business around—but for how long? It would be interesting to see a follow-up show to see just how much this person learned from Ramsey about becoming an entrepreneur.

Watch for my next post where I will give some tips on how to become an entrepreneur.

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Notice the passions this business owner has—he loves his business, he loves his customers, he supports other small businesses, he tries to stay away from unhealthy products, he rejects unhealthy packaging, he is passionate about the environment (and points out the hypocrisy of governmental environmental rules)…and on and on. This entrepreneur could be the poster boy for small business.

How well do you fit this standard?

A report just released by the nonprofit, nonpartisan, public think tank, Information Technology and Innovation Foundation (ITIF) indicates that innovation in the U.S. is rapidly falling behind the rest of the world. The study currently places the U.S. in sixth place in the world, and running at a pace that will place it even lower over the next decade.

There have been many studies made over time, as well as more recently, that place the U.S. as the world leader in innovation. However, those studies have been based on opinions, interviews, and surveys. This report by the ITIF is the first to approach innovation from a scientific perspective, using 16 indicators to study innovation and competitiveness. These indicators fall into six broad categories:

• Human capital

• Innovation capacity

• Entrepreneurship

• IT infrastructure

• Economic policy

• Economic performance

Not only did the ITIF study place the U.S. in sixth place in the world for innovation and competitiveness, but the study also determined that all of the other 39 nations/regions studied have made faster progress toward the new knowledge-based innovation economy in recent years than did the U.S. The study shows that the U.S. has made the least progress of the 40 nations/regions in improvement in international competitiveness and innovation over the last decade. The U.S. is dead last in this category.

This should come as no surprise, since the National Academies published their landmark study, “Rising Above the Gathering Storm,” back in 2005. It warned then that America’s lead in science and technology was “…eroding at a time when many other nations are gathering strength.” It appears their warning has come to pass.

What is happening to the greatest industrial nation in the world? Have we allowed greed and avarice to cloud our minds, so we can’t see beyond the next payday? Are IPO’s more important than innovation? Is shareholder value more important than spending profits and dividends on R&D and innovation? Are our industrial leaders so intent on filling their pockets, they have lost their way? Has our government (under the guise of public interest) regulated the heart out of those companies that could best put the U.S. back in the role of world leader?

The ITIF study presents six things that need to be done by the U.S. (or any nation/region) to improve their innovation and competitiveness. I will present these six things as part II in my next post. Watch for it.