Tag: Startup Nation

The Software Guru: On Refuting Peter, Premature Startup Culture, and Change for the Next Generation (Part 2 of the Joey Gurango Series )

mattlapid
The Software Guru, Joey Gurango of Gurango Software
The Software Guru, Joey Gurango of Gurango Software

In one of his blogposts, Peter, refers to the concept of the Argonaut from the book, Start-up Nation.

What are your personal opinions on the contribution of the Argonaut to a Philippine Startup Nation? 

Joey: I think the Philippine Startup scene is about 10 years away from being labeled as mature. A lot of my colleagues, maybe including Peter, might say that we’re on the cusp, about four years away from being a mature startup scene, I don’t think so. I actually don’t agree with some of the assumptions  [Peter] is making on the Philippines as a Startup Nation and the impact that you can make on it.

For me, it’s almost like saying that the Philippines is a mature democracy, but how far are we from a being a mature democracy? Well, to fix the problem it’s not just a matter of a constitutional amendment or having honest government officials or organizationally trying to change things, I think it goes far beyond all that stuff. It gets down to the common tao, the man on the street. Same thing, when thinking about ourselves as part of a mature Startup Nation. The common man on the street does not think about business. He thinks,

How do I get mine?

Now, I don’t mean that in a derogatory way, but there are too many people in this country that aren’t able to fulfill what would be considered the basic luxuries of life. There aren’t too many people who are at a level, in which they can comfortably say,

I’m enjoying my life, and I have time to think about things other than trying to just make ends meet from one paycheck to the next.

As long as you have a society, in which majority of the people are trying to make ends meets, you won’t have the mentality to think about starting a business. Now, when I say business, I don’t mean a business, in which the guy is doing pasaloads or running a sari-sari store. I’m talking about a real business which will attract employees and grow into something substantial. But when was the last time you saw a locally made television show that featured this happening?

In comparison to the typical US sitcom, how often do you see the TV characters start a business? Just the other week I was watching The Office and one of the characters in The Office was going to join a startup. It’s a common thing there [in the U.S.], but I don’t see that in the mainstream media here [in the Philippines]. If anything, you see some big business man who is corrupt, greedy and oppressive to his employees doing anything to make a profit. I believe that’s the common man’s perception of a successful businessman. We have to change that first. It’s going to take a while…many years…

In your opinion, what is the key to development in the Philippines?

Joey: Changing people’s perception about entrepreneurship. In all the things we’re doing, what Peter’s doing, what I am going to do as part of our advocacy with the Software Industry Association, and TechnoNegosyo. All of these efforts when you get down to it is geared towards changing people’s perception. We want to show people that pursuing a career in entrepreneurship is viable.

Right now, what the masses understand are celebrities. The most popular figures in the country are celebrities or politicians.

But you talk to the common man about who the most popular business man is and they’ll probably say MVP or the Ayalas. If you ask them about a regular businessman, not part of a conglomerate or oligarchy, who started a business… you ask them who started Jolibee… they wouldn’t know. This is the type of rags to riches story that our culture doesn’t promote.

Will changing the perceptions of individuals change our country?

Yes, and it starts with your generation. It starts with the people who are in their 20s.  It will take a whole bunch of successes and more people learning about what theses successes do to make this movement happen.

The Software Guru: On Refuting Peter, Premature Startup Culture, and Change for the Next Generation (Part 2 of the Joey Gurango Series )

The Software Guru, Joey Gurango of Gurango Software
The Software Guru, Joey Gurango of Gurango Software

In one of his blogposts, Peter, refers to the concept of the Argonaut from the book, Start-up Nation.

What are your personal opinions on the contribution of the Argonaut to a Philippine Startup Nation? 

Joey: I think the Philippine Startup scene is about 10 years away from being labeled as mature. A lot of my colleagues, maybe including Peter, might say that we’re on the cusp, about four years away from being a mature startup scene, I don’t think so. I actually don’t agree with some of the assumptions  [Peter] is making on the Philippines as a Startup Nation and the impact that you can make on it.

For me, it’s almost like saying that the Philippines is a mature democracy, but how far are we from a being a mature democracy? Well, to fix the problem it’s not just a matter of a constitutional amendment or having honest government officials or organizationally trying to change things, I think it goes far beyond all that stuff. It gets down to the common tao, the man on the street. Same thing, when thinking about ourselves as part of a mature Startup Nation. The common man on the street does not think about business. He thinks,

How do I get mine?

Now, I don’t mean that in a derogatory way, but there are too many people in this country that aren’t able to fulfill what would be considered the basic luxuries of life. There aren’t too many people who are at a level, in which they can comfortably say,

I’m enjoying my life, and I have time to think about things other than trying to just make ends meet from one paycheck to the next.

As long as you have a society, in which majority of the people are trying to make ends meets, you won’t have the mentality to think about starting a business. Now, when I say business, I don’t mean a business, in which the guy is doing pasaloads or running a sari-sari store. I’m talking about a real business which will attract employees and grow into something substantial. But when was the last time you saw a locally made television show that featured this happening?

In comparison to the typical US sitcom, how often do you see the TV characters start a business? Just the other week I was watching The Office and one of the characters in The Office was going to join a startup. It’s a common thing there [in the U.S.], but I don’t see that in the mainstream media here [in the Philippines]. If anything, you see some big business man who is corrupt, greedy and oppressive to his employees doing anything to make a profit. I believe that’s the common man’s perception of a successful businessman. We have to change that first. It’s going to take a while…many years…

In your opinion, what is the key to development in the Philippines?

Joey: Changing people’s perception about entrepreneurship. In all the things we’re doing, what Peter’s doing, what I am going to do as part of our advocacy with the Software Industry Association, and TechnoNegosyo. All of these efforts when you get down to it is geared towards changing people’s perception. We want to show people that pursuing a career in entrepreneurship is viable.

Right now, what the masses understand are celebrities. The most popular figures in the country are celebrities or politicians.

But you talk to the common man about who the most popular business man is and they’ll probably say MVP or the Ayalas. If you ask them about a regular businessman, not part of a conglomerate or oligarchy, who started a business… you ask them who started Jolibee… they wouldn’t know. This is the type of rags to riches story that our culture doesn’t promote.

Will changing the perceptions of individuals change our country?

Yes, and it starts with your generation. It starts with the people who are in their 20s.  It will take a whole bunch of successes and more people learning about what theses successes do to make this movement happen.

6 Crucial Lessons From The Rise Of THE Startup Nation, Part 2 of 3

Peter Cauton

(This is the second of a two-part post regarding the tremendous lessons we can apply from closely looking at how the preeminent Startup Nation developed. Part 1 can be found here.)

4. We Need To Have More Filipino Argonauts

argonauts

In Greek mythology, the Argonauts  were sailors and adventurers who travelled with Jason in search of the Golden Fleece.

In her book The New Argonauts, AnnaLee Saxenian writes, “The New Argonauts are foreign-born, technically skilled entrepreneurs who travel back and forth between Silicon Valley and their home countries.”

This “argonaut” concept of people coming back and forth from centers of global innovation, like Silicon Valley is a key component of Israel’s development. In Startup Nation, the authors describe several Israeli “argonauts” who would gain knowledge and status in their international companies, but have always intended to return. And when they do, they would become catalysts for Israel’s technological and entrepreneurial development. The book says Israel owes much of its success in this “argonaut” model, not only from diaspora in the Valley, but from quite a number of other countries as well.

I think Winston Damarillo is the clearest example of this here in our country. He resides in the US West Coast, but you’d regularly see him in the startup circuit here in the Philippines. In doing so, he transfers a ton of technology and insight back to the country. I think this is crucial. We need more Winstons.

I wrote a bit about our own diaspora in this post, and I’d like to make the same call again here.

To all our Filipino brothers and sisters around the world who have found success in their respective fields and are in positions of influence and knowledge – come back. I think its high time to seriously think about doing something for the country.

One very very common thread I felt while reading Startup Nation was the extreme sense of nationalism and giving back that these Israelis felt. Even while studying abroad, even while working in their foreign firms and achieving much success – they always knew they would come back and build something.  (not all of them of course, but a significant number)’

I think this sense of nationalistic pride is found in so many of our countrymen abroad. Perhaps you have been biding your time. Perhaps you have been waiting for the right time.

I think now is the right time.

For the first time in my life, I now see a surge of foreigners going here. (hello, Matt) They are in startup events. They are looking for employment. They are looking to build here, and some have already built great startups here. (including multi-awarded Payroll Hero). It’s easy to see why.

The tables have turned. Asia is now the global growth area. The Philippines itself is in a state of incredible growth. It’s not only the “nationalism” carrot I’m dangling here, but amazingly, even the “practical” carrot.

You want to take advantage of this?

Come back.

Build something. At least look into it.

PS: I’m writing this series  a tad longer than expected. I might need to extend this to a series of 3-4 posts, instead of the original 2-part plan.

PSS: A special request of mine? Please share this, especially to Filipino diaspora you know around the globe. What’s to lose?

6 Crucial Lessons From The Rise Of THE Startup Nation, Part 1 of 3

6 Crucial Lessons From The Rise Of THE Startup Nation, Part 1 of 3

Peter Cauton

So who’s the real Startup Nation?

Nope, it’s not who you think.

The country we are talking about received more venture capital per capita than any nation in the world – 2x as much as the United States. They have more companies listed in the NASDAQ than Korea, Japan, Singapore, China, India and all of Europe combined. They’ve done this despite their small populace (just 7 million people), having relatively little natural resources, and being in a perpetual state of war (it is surrounded by its enemies).

israelflagIt is Israel.

In their amazing book, Start-up Nation: The Story of Israel’s Economic Miracle, authors Dan Senor and Saul Singer tells the story of how Israel has recently achieved tremendous economic growth through the development of startups.

As someone whose passion lies in the development of Filipino startups precisely for economic growth and poverty alleviation, the book simply enthralled me and made my imagination run wild.

The book talks about innovation, about “battlefield entrepreneurs”, about the importance of survival mentality, nationalism through enterprise, about the critical role of diaspora, and naturally, about chutzpah.

The book talks about how a powerfully entrepreneurial culture made all the difference in their transformation into Startup Nation.

We HAVE to emulate their example.

Here are some the most compelling arguments and ideas which crossed my mind while reading the book:

1) We have to destroy hierarchical thinking

Precisely because they are surrounded by enemies from all sides, Israel requires all young men and women mandatory service in the IDF – the Israeli Defense Forces. Now, you might be thinking “joining an army?! this is the absolute LAST thing you want to do to challenge hierarchical thinking!”

But this is where it gets interesting.

The IDF employs a curious bottom-up culture where hierarchy is thrown out the door. Subordinates are actually encouraged to challenge their superiors. In fact, subordinates can oust superior officers through vote (!).

miss israel
Miss Israel 2009, IDF soldier

Consequently, from a very young age, Israelis are trained to challenge the status quo and assert themselves – in extremely high-pressure environments.

Is there a better way to train would-be entrepreneurs?

With the combined experience of University AND a 2-3 year, one-of-a-kind stint in IDF (which the book explains through a greatly-named chapter, Battlefield Entrepreneurs), the Israeli 25-year old would-be entrepreneur has no global peer.

So…how can we start changing our culture here?

Our schools, by and large, teach our children to follow rules and singular ways to solve problems (multiple choice, fact-based learning, etc). Our companies, by and large, teach our workers to follow very defined job descriptions and kowtow to the boss.

This needs to change. We have to find a way to reward risk-taking and encourage doing things different, especially with our younger generations.

(Note – this school thing really worries me. My 5-year old was recently accepted in a big university, and when we were given the official introduction of what happens in school – I really second guessed this decision. I think our schools still produce graduates built for the industrial age – and the industrial age is dying fast. 

Startup dreamers take note – the education system is just waiting to be disrupted – it is now starting in the US. Why not here?) 

2) We need to embrace and use technology, regardless of our “field”

I talk to a lot of entrepreneurs who say “technology isn’t for me,” and that’s that. I think a quick dismissal of using technology is huge mistake. Technology is precisely what has made this world flat. Technology is what leveled the playing field for any entrepreneur in any part of the world to compete on a global scale. Why not use it? It is precisely what can take us to the next level.

Technology can be applied to ANY field, with wondrous results.

A budding social entrepreneur can say “I just want to help the farmers, I don’t want to be involved with tech.” Guess what? Hi-tech in Israel started with agriculture. Without much land (and most of it infertile) and much water, Israel was able to turn itself into an agricultural force, increasing its agricultural yield a whopping 17 times!

How did they do this?

Technology.

Are you a doctor who wants to build a startup? A musician? A publisher? An events organizer? A marine biologist?

Look hard at technology. Embrace it. It isn’t your enemy, and it can become your bestest friend.

How can technology allow you to do something different and new and innovative in my field?

(In Israel for example, you’ve got doctors working with engineers on a startup which aims to build a credit-card like device which aims on making the injection obsolete. The book lists so many of these “mashup” startups which combined expertise and technologies from different fields. Amazing.)

3) We Need More Venture Capital, Much More (and the government needs to get into the game)

The book is very very clear on the role of venture capital in Israel’s startup-powered economic transformation. They call it “Innovation Finance.”

I always try to encourage bootstrapping, and essentially, this was also how Israel started – with an awful lot of bootstrapped firms fighting for survival. But in order for us to scale our businesses on a global level? Venture capital is a crucial key.

fundingSeeing the strategic role venture capital had in its development, the Israeli government started a program called Yozma (Hebrew word for initiative) in the 1990’s. The government investment $100 million in forming ten venture capital funds. A key part of the strategy was to have each fund represented by 3 parties: a young Israeli venture capital company (in training), a foreign venture capital firm, and an Israeli investment company of bank. To attract foreign VC’s,  the Israeli government offered that its shares can be bought out cheaply after 5 years, if the fund was successful. This essentially meant that while the government shared the risk, it offered the investors all the reward – an unusually great deal.

The government did this not only to attract foreign capital, but to have the young Israeli VC;s learn about successfully managing venture capital from their successful foreign counterparts.

In a few years, this same fund has grown to around $3 Billion, all to support hundreds of Israeli startups and ventures. The Yozma program has resulted in copycat programs all over the world.

Is there any innovative Philippine politician, lawmaker, or national leader listening?

(and if you know anyone, please forward this to him or her)  

If there are, let me tell you personally, startups are the key. We Filipinos LOVE technology. We are naturally innovative. We speak great English, the startup language. We can build great, globally-relevant startups.

Over the past year, we’ve seen fund sources sprout up from the business sector, all aiming to help startups. This is great news and has to continue. We have also seen startup-related initiatives by DOST, and a few other government sectors, but you know what, I think we might just need MORE help.

Game-changing, Yozma-type help.

(Jump to Part 2 here!) 

PS: If you know anyone who would resonate with this post or to whom this post would be pretty useful for, do practice some yozma and share! Who knows what could happen if you do?