Entrepreneurial Solutions to Insoluble Problems - Tides Canada

Growing OpportunityIntroductionFigure 1.1The opportunity landscapeIt’s remarkable how much of the financialworld’s vocabulary relates to water and tohydraulic imagery. We have liquid assetsand liquidations, we manage cash flowsand solvency, we float companies andexchange rates, there is sunk capital andthere are investments below water, moneygoes down the drain, we try to deflatebubbles, and we — or at least some people— launder money.In this spirit, Figure 1.1 plots five zonesof the opportunity landscape for entrepreneurs.On the vertical axis, we plot‘Impact’ (think leverage, blended valuecreation, 18 and system change), from Lowto High, and on the horizontal axis weplot the degree to which the ‘Drivers’of action are ‘purely’ Moral or ‘purely’Financial. Clearly, entrepreneurs ofdifferent types will spot opportunityright across this landscape.— Zone 1 (The Drain) is where moneydrains from the system, because ofpoor management — or because of thebribery and corruption that blights somany economies and new ventures.Enron operated in this space, as do thefraudulent ‘briefcase NGOs’ that blightcountries like India.— Zone 2 (The Well) is wherecommunities under stress — or thosethat help them — dip into capitalreserves and the benevolence ofordinary citizens, although (like wells)public benevolence can be overpumpedto the point of exhaustionor ‘donor fatigue.’ Médecins sansFrontières and the Red Cross areleading players here.— Zone 3 (The Siphon) is the area ofcorporate philanthropy, wherebusinesses create shareholder returns,but channel off a percentage, partlyto ensure their continuing licenseto operate. Think of the DanoneCommunities Fund, Shell Foundation,or Google.org.— Zone 4 (The Pump) is wherepredominantly non-profit or hybridnon-profit/for-profit ventures leverageresources to create blended value —and, through lobbying, promote widersystemic change. Organizations likeGrameen Bank, OneWorld Health,and PATH create change here.— Zone 5 (The Geyser) is wheredeep-seated seismic forces (thinkdemography, economic development,technology trends, and eco-pressureslike climate change) build a headof pressure that powerfully, if unpredictably,erupts in showers ofnew wealth — laying down deposits ofvalue and helping irrigate the entirecatchment area. Powerful players hereinclude Acciona, GE, Vestas, and muchof the cleantech sector.8Zone 5HighZone 4GeyserZone 3Zone 2Zone 1PumpImpactWellSiphonLowDrainDrainDrainConscienceDriversCapitalism