I’ve been known to be an irrational optimist. I think anyone jumping into entrepreneurship, and more so those who are serial entrepreneurs, tend to see the glass as half-full rather than half-empty. Entrepreneurs tend to see opportunities where others see none. This also lends credence to the Chinese philosophy that in crisis there is opportunity. But being an eternal optimist doesn’t mean you are not grounded in reality. I think it translates to having a positive attitude in the face of extreme adversity. The irrational optimist in me believes inclusiveness can save the world.
Let’s face it: the world is facing a long list of life-threatening, end-of-the-world scenarios, including climate change, terrorism and civil/regional wars, overpopulation, extreme poverty, natural disasters and incurable viral outbreaks.
All of these global problems will be exacerbated by climate change. Yes, climate change is (to borrow a military term) a real “threat multiplier.” Continued rise in world temperatures will change our biodiversity, cause parts of the world to be uninhabitable, and reduce the world’s arable land, hence collectively threatening our food supply. This leads to a domino effect across a whole host of issues (crime, terrorism, migration). Mass migration will be unstoppable due to the increase in the number of “hot zones” or danger zones. You simply cannot contain or compartmentalize this.
To sum it up, we are facing a perfect storm with regards to global issues facing the next generation. Climate change experts predict that by 2047, the world’s temperature every year will be hotter than the hottest day in the last 150 years! There will also be irreversible damage to the ocean and parts of the world. The situation will worsen with every degree the world’s temperature rises, leading to an uninhabitable world for both humans and mammals.
The problem can be best compared to a train wreck that will inevitably happen. The question is at what speed the train will hit the wall... the speed and momentum will determine if there will be a total loss of life or if we can save lives. Slowing down global warming and reducing carbon emissions should therefore be our top priority. Change cannot happen unless the entire ecosystem participates. If we are to turn around this proverbial nosedive, we cannot simply expect this problem to be solved by government.
What can the next generation do to solve problems their parents’ generation was unable to solve?
I am a big believer in applying business philosophy to solving problems. How do we get the entire millennial generation (those born in the 1980s to early 2000s) thinking and acting like their evolved counterparts that look towards a future of global sustainability, inclusive philosophy and doing business with a higher purpose? How do we get the global community to share a common vision and values?
The answer is inclusiveness.
Wikipedia defines “inclusive business” as sustainable business that benefits low-income communities. It is a business initiative that contributes to poverty reduction through the inclusion of low-income communities in its value chain.
Inclusive business can link First World consumers with their Third World counterparts. That economic relationship creates an opportunity for development of an ecosystem that thrives on similar values.
Some examples of inclusive business initiatives linked to sustainable development are:
• The Body Shop founded by Anita Roddick, whom I consider one of the pioneers and early adopters of inclusive business practices before it became modern-day jargon, works with 30 suppliers across 20 countries that employ over 25,000 people.
• L’ Occitane of Provence is one of the biggest buyers of shea butter, buying 500 tons per year, which employs more than 17,000 women in Burkina Faso.
• Nestlé is sourcing coffee from 5,000 farmers today and looking to 70,000 farmers by 2016.
• Jollibee orders vegetables from 8,000 small farmers.
The world has over two billion working-age adults that do not have bank accounts. Eighty percent of the world’s population live on less than $10/day. Fifty percent live on less than $2.50. This puts two billion people in the high-risk category. We need 200,000 businesses that can generate income for 10,000 people each to elevate the lives of two billion people. These inclusive initiatives can help promote sustainable development, which will help slow down climate change and a host of other issues. Linking income to sustainable practices is key.
Ask yourself, what is your business doing to support inclusive and sustainable practices? For those starting up, ADB and other institutions have committed funds to startups with inclusive business models.
In my next article I will be featuring tech startups that are looking to solve global problems. Some of these were presented in APEC during a whole-day event hosted by ABAC chair Doris Ho.
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