By David Crow
Reposted from StartupNorth post.
In my Part 1 yesterday I talked about reading Michael Cusumano’s Dealing with the Venture Capital Crisis in the October 2009 issue of Communications of the ACM, and how I was struck by the idea that our geographical proximity to the US, advanced economy, good universities and strong intellectual property rights might be the spawning ground for new ventures, sources of wealth, social welfare and employment.
I suggested we look at the positive factors and exploit the constraints to build opportunities and isolated two of these where entrepreneurs can have an impact.
- Advanced economies
- Sophisticated customers
- Good universities
- Strong intellectual property rights
- Favorable tax laws
- Vibrant entrepreneurial cultures
For entrepreneurs, we need to work on helping develop sophisticated customers. Often these customers are located near where the entrepreneur is building their product or service offering. However, this is not a requirement. Entrepreneur should look for sophisticated customers around the globe. Including customers in your product design and development process is key to creating products that meet customer needs and to developing more sophisticated customers. Steve Blank and Eric Reis have proposed the Customer Development Manifesto and Lean Startup as ways for founders to engage customers in the earliest work. All startups should read these posts.
Vibrant entrepreneurial cultures
Isn’t this what we’re trying to do? Read our thoughts on:
Part of the reason that we are lucky enough to have Dave McClure in Toronto (and he had a great time). First Round Capital had office hours with Chris Fralic and Phin Barnes. We continue to see folks from Atlas Ventures, General Catalyst, and Microsoft (Don Dodge presented at StartupEmpire and will be presenting at CIX). This is a result of your participation. Canadian cities have a lot of buzz and attention based on the things that are going on.
It is the force of a thousand butterflies flapping their wings. All of the blogging, twittering, attending conferences, showing up to events, participating online. It’s about the DemoCamps, Launch Parties, StartupDrinks, Social Media Breakfasts, Third Tuesdays, Founders & Funders, NEWTECH, SproutUps, Meshes, and everything else. It is a cumulative effect. It doesn’t take a lot of extra effort, but it adds up to the rest of the world paying attention to the noise.
We have great spokespersons like Saul Colt, Mathew Ingram, Mike Lee, Michael McDerment, Leila Boujnane, Brian Sharwood, Sarah Prevette, Pema Hagen, Bryan Watson, Anand Agarawala and others running around the world telling their stories of being a startup and the reasons they are doing it in Toronto. In Vancouver there’s Robert Scales, Kris Krug, Boris Mann, BootupLabs, Boris Wertz, Andre Charland, amd others. In Montreal it’s Austin Hill, Heri Rakotomalala, John Stokes, George Favvas, Ben Yoskovitz, Fred Ngo, Pinny Gniwisch, Ray Luk and others. Let’s not forget Social Media Breakfast, StartupOttawa, Scott Lake, Allan Isfan, Jacqui Murphy, and everyone that I’ve missed (it’s on purpose, because I don’t like you any more and I hate your startups).
But it is up to us to make noise. It’s up to us to build successful companies. It’s up to us to make Canada a better place for startups. No one is going to walk in and make it easier. We all have to participate and build a vibrant entrepreneurial culture. We need to talk about entrepreneurship as a career path. We need to talk to politicians about policy decisions.
So the first rule of being an entrepreneur is to reach out. Invite a friend. Make a connection. Tell a customer. Most of all, do the things that make the ecosystem better for you.
David Crow is an emerging technology and start-up advocate/evangelist. At Microsoft Canada, he is responsible for helping Canadian start-ups gain access to software, support and visibility in the Microsoft ecosystem through programs like BizSpark (details at microsoft.com/bizspark). David blogs at http://davidcrow.ca/ and http://startupnorth.ca/ or follow him on Twitter @davidcrow
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