[Music]
all right I’m sorry about that delay but
so my talk is called the tub so my talk
is called the entrepreneurial equalizer
and keeping with our theme of overcoming
adversity I want to go over three main
points today one is the correlation
between entrepreneurship and
socio-economic mobility socio-economic
mobility is about moving from one social
class to another usually in an upward
direction the second thing is how we can
use this knowledge and these principles
to encourage small business education as
well as basic business principles around
the world to help alleviate poverty and
third while started why starting your
own small business may not be as
outlandish an idea as you may have
originally thought so first let’s talk
about some statistics about overcoming
adversity in today’s business world so
of the 10 wealthiest people in the world
7 of them were born into middle or lower
class families and of the 3 that weren’t
2 of them are actually from the same
family now of America’s billionaires
alone 62% are self-made and of the 25
wealthiest people in the world 14 are
entrepreneurs now furthermore this is
quote down here that I really like its
entrepreneurship is living a few years
of your life like most people won’t so
you can spend the rest of your life like
most people can now the reason I like
this is it kind of talks about how
entrepreneurship is so deeply tied to
adversity that the two are essentially
inseparable there’s almost no
entrepreneur in the world that can say
they haven’t faced some sort of serious
adversity on their way to the top unless
of course they have daddy to give them a
small loan of a million dollars but
that’s the whole other story
now we want to talk also about the
developing world and kind of areas where
private poverty is a lot more prevalent
so here we have a graph of from 2005 to
2007 teen of three of the world’s most
top developing economies Brazil China
and India and what we have here is the
Green Line tracks
entrepreneurship position should have
them
number of registered businesses on
average per country and the blue line
tracks the poverty rate so from 2005 to
2007 teen what you can see is that the
poverty rate was cut nearly in half on
average between these three countries
from eighteen point nine nine two
percent to about ten point one percent
and in that same period of time the
average number of registered businesses
in each country nearly quadrupled from
four point one one million to 16 point 1
million now this isn’t just a random
correlation or a coincidence
this is actually a serious relationship
between the two that shows that increase
small business entrepreneurship leads to
less poverty in areas now how exactly
did this happen one of the main ways
that we can encourage this and replicate
this into our own communities is a
process called micro financing and now
it’s something that sounds and looks a
lot more complicated than it really is
the way it works is that first you have
a group of donors or investors that give
or donate their money to what’s called a
microfinance institution or an MFI now
this microfinance institution can either
be a for-profit investment company or a
nonprofit charity that’s why it tends
donor slash investors this microfinance
institution then goes to developing
world or areas that are underprivileged
and finds micro entrepreneurs or people
who desire to start their own business
but lack of resources and funds and then
gives them small loans in developing
areas it can be as little as 50 bucks
and in the United States it’s anywhere
from 1500 to $8,000
so they give them that sort of money
they also help them with advice give
them free consultation to kind of get
their feet up and eventually the goal is
to make them self-sufficient now the the
results in this just the United States
alone are actually really incredible so
in the United States like I said the
threshold is from 1500 to $8,000 and
when you look at the statistics of how
this has worked out in the United States
of the businesses that received a loan
on average sixty percent of those
businesses hired additional workers as a
direct result of the loan they received
furthermore the average business that
the average loan created 2.4 jobs and
the 2.4 jobs that were created paid on
average 25 percent higher than
minimum wage so it’s something that is
as at maximum eight thousand dollars in
the United States have the potential to
create two and a half jobs that paid
significantly more than minimum wage and
even the entrepreneurs themselves
indicated seventy percent indicated that
their own housing improved as a result
of their business improving now why does
this matter to you you guys may be
thinking this is cool it sounds nice and
everything but like why should I care
about this now in the United States we
kind of have the stereotype of what a
business is of like people in suits and
fanciness and all this bureaucracy but
in reality when we look at America’s
twenty seven point nine million
businesses nationwide the vast majority
are actually small businesses with
people working from home fifty-two
percent of which work from home 79
percent of entrepreneurs are single
employee company so other all the
companies in the United States 79
percent have just one individual running
them and this really is the backbone of
our economy now what the main benefit to
strengthening entrepreneurship and
increasing basic business education
increasing small business ownership in
general is that not only do we get a
stronger economy through entrepreneurs
but also more entrepreneurs equals
stronger consumers and smarter consumers
let me explain why that is now in
America and actually in any capitalist
economy we do what’s called voting with
your dollar which means that anytime
that you buy a McDonald’s burger over
Burger King or you buy Honda over a
Toyota you are essentially giving your
stamp of approval to one company over
the other right and therefore weakening
one over its competitor now the reason
this matters is because the more
informed and smarter a consumer is the
more likely they are to make the right
buying decision unfortunately there’s a
lot of people out there that maybe not
due to their own fault
are either misinformed or are uninformed
and make decisions anyways and end up
picking the wrong product and businesses
there are certain unethical business
practices that take advantage of this
and make them buy products are either
way higher than prices that are way
higher than should be or much lower
quality when you have a smarter consumer
pool that
knows more about what it’s spending for
what it’s buying and why it’s buying it
you have less you’re less likely to have
these fraudulent businesses expand and
stay in place so essentially you have a
safer more fair economy for everyone now
the second one is a greater power spread
so in America in the political sphere
and everyone kind of talks about how
there’s certain corporations that have a
lot of power in specific industry right
this idea of a monopoly and just simply
put the more competitors you have in a
specific industry the less the more
competition there’s going to be and the
more competition there is the lower
prices are going to be the higher
quality products are going to be there
you have best better customer service
and all in all it’s just going to be a
better industry so we look here with the
same market right whether it’s 10 P 10
competitors vs. 5 competitors it’s
better to have 10 because they’re going
to be competing more and they each have
less market share and therefore it
ensures that a monopoly can’t be created
now finally I want to sum up by creating
one final point and that is that great
businesses aren’t built in Manhattan
sized skyscrapers they aren’t built with
CEOs who are 10,000 dollar suits or take
home multi-million dollar bonus pays
every year the built and dirty basement
garages with CEOs who are sweatpants to
work and survive on a week supply of
ketchup and mustard sandwiches now if
you still don’t believe me that you can
that we all have the power to go out
there and make a difference in our
community in our economy do something
meaningful with the resources we have
then I just want to remind you of one
thing and that was that less than 20
years ago a tweet was just a sound that
a bird made Amazon was the name of a
rainforest Facebook was what you call
the kid that fell asleep in class and
Alibaba was a character from an Arabic
folktale now the reason I say this is
because it proves that the world can and
does change it’s our choice whether or
not we want to be a part of it thank you
very much for your time
you
all right I’m sorry about that delay but
so my talk is called the tub so my talk
is called the entrepreneurial equalizer
and keeping with our theme of overcoming
adversity I want to go over three main
points today one is the correlation
between entrepreneurship and
socio-economic mobility socio-economic
mobility is about moving from one social
class to another usually in an upward
direction the second thing is how we can
use this knowledge and these principles
to encourage small business education as
well as basic business principles around
the world to help alleviate poverty and
third while started why starting your
own small business may not be as
outlandish an idea as you may have
originally thought so first let’s talk
about some statistics about overcoming
adversity in today’s business world so
of the 10 wealthiest people in the world
7 of them were born into middle or lower
class families and of the 3 that weren’t
2 of them are actually from the same
family now of America’s billionaires
alone 62% are self-made and of the 25
wealthiest people in the world 14 are
entrepreneurs now furthermore this is
quote down here that I really like its
entrepreneurship is living a few years
of your life like most people won’t so
you can spend the rest of your life like
most people can now the reason I like
this is it kind of talks about how
entrepreneurship is so deeply tied to
adversity that the two are essentially
inseparable there’s almost no
entrepreneur in the world that can say
they haven’t faced some sort of serious
adversity on their way to the top unless
of course they have daddy to give them a
small loan of a million dollars but
that’s the whole other story
now we want to talk also about the
developing world and kind of areas where
private poverty is a lot more prevalent
so here we have a graph of from 2005 to
2007 teen of three of the world’s most
top developing economies Brazil China
and India and what we have here is the
Green Line tracks
entrepreneurship position should have
them
number of registered businesses on
average per country and the blue line
tracks the poverty rate so from 2005 to
2007 teen what you can see is that the
poverty rate was cut nearly in half on
average between these three countries
from eighteen point nine nine two
percent to about ten point one percent
and in that same period of time the
average number of registered businesses
in each country nearly quadrupled from
four point one one million to 16 point 1
million now this isn’t just a random
correlation or a coincidence
this is actually a serious relationship
between the two that shows that increase
small business entrepreneurship leads to
less poverty in areas now how exactly
did this happen one of the main ways
that we can encourage this and replicate
this into our own communities is a
process called micro financing and now
it’s something that sounds and looks a
lot more complicated than it really is
the way it works is that first you have
a group of donors or investors that give
or donate their money to what’s called a
microfinance institution or an MFI now
this microfinance institution can either
be a for-profit investment company or a
nonprofit charity that’s why it tends
donor slash investors this microfinance
institution then goes to developing
world or areas that are underprivileged
and finds micro entrepreneurs or people
who desire to start their own business
but lack of resources and funds and then
gives them small loans in developing
areas it can be as little as 50 bucks
and in the United States it’s anywhere
from 1500 to $8,000
so they give them that sort of money
they also help them with advice give
them free consultation to kind of get
their feet up and eventually the goal is
to make them self-sufficient now the the
results in this just the United States
alone are actually really incredible so
in the United States like I said the
threshold is from 1500 to $8,000 and
when you look at the statistics of how
this has worked out in the United States
of the businesses that received a loan
on average sixty percent of those
businesses hired additional workers as a
direct result of the loan they received
furthermore the average business that
the average loan created 2.4 jobs and
the 2.4 jobs that were created paid on
average 25 percent higher than
minimum wage so it’s something that is
as at maximum eight thousand dollars in
the United States have the potential to
create two and a half jobs that paid
significantly more than minimum wage and
even the entrepreneurs themselves
indicated seventy percent indicated that
their own housing improved as a result
of their business improving now why does
this matter to you you guys may be
thinking this is cool it sounds nice and
everything but like why should I care
about this now in the United States we
kind of have the stereotype of what a
business is of like people in suits and
fanciness and all this bureaucracy but
in reality when we look at America’s
twenty seven point nine million
businesses nationwide the vast majority
are actually small businesses with
people working from home fifty-two
percent of which work from home 79
percent of entrepreneurs are single
employee company so other all the
companies in the United States 79
percent have just one individual running
them and this really is the backbone of
our economy now what the main benefit to
strengthening entrepreneurship and
increasing basic business education
increasing small business ownership in
general is that not only do we get a
stronger economy through entrepreneurs
but also more entrepreneurs equals
stronger consumers and smarter consumers
let me explain why that is now in
America and actually in any capitalist
economy we do what’s called voting with
your dollar which means that anytime
that you buy a McDonald’s burger over
Burger King or you buy Honda over a
Toyota you are essentially giving your
stamp of approval to one company over
the other right and therefore weakening
one over its competitor now the reason
this matters is because the more
informed and smarter a consumer is the
more likely they are to make the right
buying decision unfortunately there’s a
lot of people out there that maybe not
due to their own fault
are either misinformed or are uninformed
and make decisions anyways and end up
picking the wrong product and businesses
there are certain unethical business
practices that take advantage of this
and make them buy products are either
way higher than prices that are way
higher than should be or much lower
quality when you have a smarter consumer
pool that
knows more about what it’s spending for
what it’s buying and why it’s buying it
you have less you’re less likely to have
these fraudulent businesses expand and
stay in place so essentially you have a
safer more fair economy for everyone now
the second one is a greater power spread
so in America in the political sphere
and everyone kind of talks about how
there’s certain corporations that have a
lot of power in specific industry right
this idea of a monopoly and just simply
put the more competitors you have in a
specific industry the less the more
competition there’s going to be and the
more competition there is the lower
prices are going to be the higher
quality products are going to be there
you have best better customer service
and all in all it’s just going to be a
better industry so we look here with the
same market right whether it’s 10 P 10
competitors vs. 5 competitors it’s
better to have 10 because they’re going
to be competing more and they each have
less market share and therefore it
ensures that a monopoly can’t be created
now finally I want to sum up by creating
one final point and that is that great
businesses aren’t built in Manhattan
sized skyscrapers they aren’t built with
CEOs who are 10,000 dollar suits or take
home multi-million dollar bonus pays
every year the built and dirty basement
garages with CEOs who are sweatpants to
work and survive on a week supply of
ketchup and mustard sandwiches now if
you still don’t believe me that you can
that we all have the power to go out
there and make a difference in our
community in our economy do something
meaningful with the resources we have
then I just want to remind you of one
thing and that was that less than 20
years ago a tweet was just a sound that
a bird made Amazon was the name of a
rainforest Facebook was what you call
the kid that fell asleep in class and
Alibaba was a character from an Arabic
folktale now the reason I say this is
because it proves that the world can and
does change it’s our choice whether or
not we want to be a part of it thank you
very much for your time
you
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