Unavailable
Unavailable
Unavailable
Ebook232 pages4 hours
Trust: Creating the Foundation for Entrepreneurship in Developing Countries
By Tarun Khanna
Rating: 5 out of 5 stars
5/5
()
Currently unavailable
Currently unavailable
About this ebook
Trust
Creating the Foundation for Entrepreneurship in Developing Countries
Entrepreneurial ventures often fail in the developing world because of the lack of something taken for granted in the developed world: trust. Over centuries the developed world has built up customs and institutions like enforceable contracts, an impartial legal system, credible regulatory bodies, even unofficial but respected sources of information like Yelp or Consumer Reports that have created a high level of what scholar and entrepreneur Tarun Khanna calls “ambient trust.” If a product is FDA-approved we feel confident it's safe. If someone makes an untrue claim or breaks an agreement we can sue. Police don't demand bribes to do their jobs. Certainly there are exceptions, but when brought to light they provoke a scandal, not a shrug.
This is not the case in the developing world. But rather than become casualties of mistrust, Khanna shows that smart entrepreneurs adopt the mindset that, like it or not, it's up to them to weave their own independent web of trust—with their employees, their partners, their clients, their customers and with society as a whole. This can certainly be challenging, and requires innovative approaches in places where the level of societal mistrust is so high that, as in one example Khanna provides, an official certification of quality simply arouses suspicion—and lowers sales! Using vivid examples from Brazil, China, India, Mexico and elsewhere, Khanna shows how entrepreneurs can build on existing customs and practices instead of trying to push against them. He highlights the role new technologies can play (but cautions that these are not panaceas), and explains how entrepreneurs can find dependable partners in national and local governments to create impact at scale.
As far back as the 18th century Adam Smith recognized trust as what Khanna calls “the hidden engine of economic progress.” “Frankness and openness conciliate confidence,” Smith wrote. “We trust the man who seems willing to trust us.” That kind of confidence is critical to entrepreneurial success, but in the developing world entrepreneurs have to establish it through their own efforts. As Khanna puts it, “the entrepreneur must not just create, she must create the conditions to create.”
Creating the Foundation for Entrepreneurship in Developing Countries
Entrepreneurial ventures often fail in the developing world because of the lack of something taken for granted in the developed world: trust. Over centuries the developed world has built up customs and institutions like enforceable contracts, an impartial legal system, credible regulatory bodies, even unofficial but respected sources of information like Yelp or Consumer Reports that have created a high level of what scholar and entrepreneur Tarun Khanna calls “ambient trust.” If a product is FDA-approved we feel confident it's safe. If someone makes an untrue claim or breaks an agreement we can sue. Police don't demand bribes to do their jobs. Certainly there are exceptions, but when brought to light they provoke a scandal, not a shrug.
This is not the case in the developing world. But rather than become casualties of mistrust, Khanna shows that smart entrepreneurs adopt the mindset that, like it or not, it's up to them to weave their own independent web of trust—with their employees, their partners, their clients, their customers and with society as a whole. This can certainly be challenging, and requires innovative approaches in places where the level of societal mistrust is so high that, as in one example Khanna provides, an official certification of quality simply arouses suspicion—and lowers sales! Using vivid examples from Brazil, China, India, Mexico and elsewhere, Khanna shows how entrepreneurs can build on existing customs and practices instead of trying to push against them. He highlights the role new technologies can play (but cautions that these are not panaceas), and explains how entrepreneurs can find dependable partners in national and local governments to create impact at scale.
As far back as the 18th century Adam Smith recognized trust as what Khanna calls “the hidden engine of economic progress.” “Frankness and openness conciliate confidence,” Smith wrote. “We trust the man who seems willing to trust us.” That kind of confidence is critical to entrepreneurial success, but in the developing world entrepreneurs have to establish it through their own efforts. As Khanna puts it, “the entrepreneur must not just create, she must create the conditions to create.”
Unavailable
Read more from Tarun Khanna
Trust: Creating the Foundation for Entrepreneurship in Developing Countries Rating: 0 out of 5 stars0 ratingsBillions of Entrepreneurs: How China and India Are Reshaping Their Futuresand Yours Rating: 3 out of 5 stars3/5
Related to Trust
Related ebooks
Principles to Fortune: Crafting a Culture to Massively Grow a Business Rating: 5 out of 5 stars5/5Mass Flourishing: How Grassroots Innovation Created Jobs, Challenge, and Change Rating: 4 out of 5 stars4/5Poverty Alleviation at Compounding Speed Rating: 0 out of 5 stars0 ratingsBillions of Entrepreneurs: How China and India Are Reshaping Their Futuresand Yours Rating: 3 out of 5 stars3/5Crisis, Economics, and the Emperor's Clothes Rating: 0 out of 5 stars0 ratingsEconomics and Sociology: Redefining Their Boundaries: Conversations with Economists and Sociologists Rating: 4 out of 5 stars4/5VC Investment Standard Requirements Rating: 0 out of 5 stars0 ratingsCommon Misconceptions of Economic Policy Rating: 0 out of 5 stars0 ratingsJoseph A. Schumpeter: The Economics and Sociology of Capitalism Rating: 5 out of 5 stars5/5Summary of Tim Higgins' Power Play Rating: 0 out of 5 stars0 ratingsRedesign the World - A Global call to Action Rating: 5 out of 5 stars5/5W. Arthur Lewis and the Birth of Development Economics Rating: 5 out of 5 stars5/5Summary of Edward W. Said's Culture and Imperialism Rating: 0 out of 5 stars0 ratingsMatt Mullenweg: The Young Man Who Made It Easy to Publish on the Web Rating: 0 out of 5 stars0 ratingsThe Economic Consequences of the Peace Rating: 0 out of 5 stars0 ratingsNo-Excuses Innovation: Strategies for Small- and Medium-Sized Mature Enterprises Rating: 0 out of 5 stars0 ratingsHistory of Big Recessions Rating: 5 out of 5 stars5/5Entrepreneurial Leader: A Lifetime of Adventures in Business, Education, and Government Rating: 0 out of 5 stars0 ratingsThe Resilient Founder: Lessons in Endurance from Startup Entrepreneurs Rating: 0 out of 5 stars0 ratingsSummary of Simon Clark & Will Louch's The Key Man Rating: 0 out of 5 stars0 ratingsBorderless Economics: Chinese Sea Turtles, Indian Fridges and the New Fruits of Global Capitalism Rating: 4 out of 5 stars4/5Social Preferences: An Introduction to Behavioural Economics and Experimental Research Rating: 0 out of 5 stars0 ratingsThe Stages of Economic Growth: A Non-Communist Manifesto Rating: 0 out of 5 stars0 ratingsThe Third Industrial Revolution: How Lateral Power Is Transforming Energy, the Economy, and the World Rating: 4 out of 5 stars4/5The New Financial Order: Risk in the 21st Century Rating: 4 out of 5 stars4/5Summary of Louis C. Gerken & Wesley A. Whittaker's The Little Book of Venture Capital Investing Rating: 0 out of 5 stars0 ratingsThe Enlightened Capitalists: Cautionary Tales of Business Pioneers Who Tried to Do Well by Doing Good Rating: 4 out of 5 stars4/5The Role of Education in National Development: Perdana Discourse Series, #3 Rating: 5 out of 5 stars5/5
Small Business & Entrepreneurs For You
Your Next Five Moves: Master the Art of Business Strategy Rating: 5 out of 5 stars5/5Small Business For Dummies Rating: 4 out of 5 stars4/5Starting a Business All-In-One For Dummies Rating: 4 out of 5 stars4/5Overcoming Impossible: Learn to Lead, Build a Team, and Catapult Your Business to Success Rating: 4 out of 5 stars4/5Summary of Timothy Ferriss' book: The 4-Hour Workweek: More time, more money, more life: Summary Rating: 5 out of 5 stars5/5Yes!: 50 Scientifically Proven Ways to Be Persuasive Rating: 4 out of 5 stars4/5Robert's Rules of Order: The Original Manual for Assembly Rules, Business Etiquette, and Conduct Rating: 4 out of 5 stars4/5Company Rules: Or Everything I Know About Business I Learned from the CIA Rating: 4 out of 5 stars4/5The Side Hustle: How to Turn Your Spare Time into $1000 a Month or More Rating: 4 out of 5 stars4/5The Ultimate Side Hustle Book: 450 Moneymaking Ideas for the Gig Economy Rating: 4 out of 5 stars4/5The Millionaire Fastlane: Crack the Code to Wealth and Live Rich for a Lifetime Rating: 5 out of 5 stars5/5The Everything Nonprofit Toolkit: The all-in-one resource for establishing a nonprofit that will grow, thrive, and succeed Rating: 0 out of 5 stars0 ratingsHow to Open & Operate a Financially Successful Notary Business Rating: 4 out of 5 stars4/5The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It Rating: 4 out of 5 stars4/5The LLC and Corporation Start-Up Guide: Your Complete Guide to Launching the Right Business Rating: 5 out of 5 stars5/5The Freedom Shortcut: How Anyone Can Generate True Passive Income Online, Escape the 9-5, and Live Anywhere Rating: 5 out of 5 stars5/5Real Artists Don't Starve: Timeless Strategies for Thriving in the New Creative Age Rating: 4 out of 5 stars4/5The Start Your Own Business Bible: 501 New Ventures You Can Launch Today Rating: 4 out of 5 stars4/5Capital Gaines: Smart Things I Learned Doing Stupid Stuff Rating: 3 out of 5 stars3/5How to Grow Your Small Business: A 6-Step Plan to Help Your Business Take Off Rating: 3 out of 5 stars3/5Nine-Figure Mindset: How to Go from Zero to Over $100 Million in Net Worth Rating: 5 out of 5 stars5/5The SBA Loan Book: The Complete Guide to Getting Financial Help Through the Small Business Administration Rating: 5 out of 5 stars5/5What Your CPA Isn't Telling You: Life-Changing Tax Strategies Rating: 4 out of 5 stars4/5The Art of Work: A Proven Path to Discovering What You Were Meant to Do Rating: 4 out of 5 stars4/5Bookkeeping: An Essential Guide to Bookkeeping for Beginners along with Basic Accounting Principles Rating: 4 out of 5 stars4/5Built to Last: Successful Habits of Visionary Companies Rating: 4 out of 5 stars4/5
Reviews for Trust
Rating: 5 out of 5 stars
5/5
1 rating1 review
- Rating: 5 out of 5 stars5/5A fantastic book to read. The issue of trust, which is key to business success.