Claro Partners 
Innovating services for the NEXT wave of micro-business
LIFT Conference 
6 February 2014

#microbusiness,@...
Innova&ng(services(for(the(Next(Wave(of(Micro5Business:(Workshop(Agenda(
,
,
9:00,–,9:10,

,Introduc9ons,

9:10:,9:25

,Ge...
Share(your(thoughts?(
@claropartners,
#microbusiness,#liJ14,
Claro,helps,corpora9ons,
and,startups,to,navigate,
disrup&ve(shi@s(in,
society,and,business,,
delivering,service(design,
a...
Micro-business is rising globally:

Change,photo,

•  Comprise more than 95% of all
businesses
•  Employs 60-80% of the gl...
Micro-businesses arise amidst the same shifts that disrupt large enterprises

A new business
context

#microbusiness,@clar...
Micro-businesses arise amidst the same shifts that disrupt large enterprises

!  Seeking a new lifestyle
!  Generation Flu...
Micro-businesses are not a new phenomenon, but this next wave is now appearing in new
places and new forms. They are onlin...
Why are they misunderstood?
• 

• 

• 

• 

Narrowly defined by their size and
income
Assumption that their main intent is
...
Why are they underserved?
• 

• 

Government, legal and financial
processes do not match reality of
the micro-business expe...
Exploring stories of microbusinesses around the world 

New York City 
MAKERS

São Paulo
ELASTIC MICROBUSINESS

Shanghai
P...
ELASTIC MICRO-BUSINESSES
Elastic micro-businesses are micro-businesses that
are able to quickly rescale and adapt to the c...
MAKERS

Makers leverage new technologies, work spaces and platforms
to create physical products, and are part of a global ...
PARALLEL ENTREPRENEURS

Parallel Entrepreneurs are entrepreneurs who are running
more than one business activity at the sa...
PLATFORM ENTREPRENEURS

Platform entrepreneurs use platforms to connect, extend their
reach and quickly react to market ch...
Despite this diversity, micro-businesses share a set of needs and characteristics

• 
• 
• 
• 

Redefine Business Fundament...
Micro-businesses share a set of
needs and characteristics
Redefine business fundamentals
•  Growth is not always desirable...
Micro-businesses share a set of
needs and characteristics
Operate through networks
•  Spread operations throughout
network...
Micro-businesses share a set of
needs and characteristics
Driven by freedom
SELF-ACTUALIZATION

•  Needs at different level...
Micro-businesses share a set of needs
and characteristics
Face multiple challenges
•  Experience can often feel chaotic
• ...
WHY DOES Micro-Enterprise matter FOR YOUR BUSINESS?

New partners

New customers

New competitors,

#microbusiness,@clarop...
Exercises introduction
Customer(awareness(and(
reputa&on(depends(
(on(word(of(mouth(

Fluctua&ng(cash(flow(

Business(and(p...
Contact us to learn more

Aldo de Jong | partner
aldo.dejong@claropartners.com
+34 647 857 922

Abby Margolis | research d...
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Innovating services for the NEXT wave of micro-business

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A new wave of micro-businesses is emerging. We are going through turbulent times in which interconnectivity and rising socioeconomic complexity make it increasingly difficult for large corporations to adapt and build long-term strategies. Meanwhile, individuals are leveraging networks, crowd-funding, and new platforms to create informal and micro-enterprises that better respond to, and thrive in, our unstable business environment. Microbusiness is not a niche, but often overlooked and definitely underserved. In most countries it represents over 70% of employment, and is the world's fastest growing sector of the economy as new forms are emerging, like micro-manufacturers and parallel entrepreneurs.

In this workshop we will provide insights into this new wave of micro-businesses and their unmet needs. Then small groups will work together to create services that solve for their specific challenges in new ways. Together we will answer the question: How can we design better services that meet the real needs of today's micro-business?

This workshop was given at the LIFT conference in 2014, Geneva. http://liftconference.com/lift14/workshops/innovating-services-next-wave-micro-businesses

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Innovating services for the NEXT wave of micro-business

  1. 1. Claro Partners Innovating services for the NEXT wave of micro-business LIFT Conference 6 February 2014 #microbusiness,@claropartners,
  2. 2. Innova&ng(services(for(the(Next(Wave(of(Micro5Business:(Workshop(Agenda( , , 9:00,–,9:10, ,Introduc9ons, 9:10:,9:25 ,Ge>ng,to,know,the,next,wave,of,Micro:businesses,and,their,challenges, 9:25:,10:10 ,Small,group,work:,idea9ng,services,for,real,micro:business,needs, 10:10:,10:30 ,Share,back:,5,minutes,per,group, 10:30 , ,End, , #microbusiness,@claropartners,
  3. 3. Share(your(thoughts?( @claropartners, #microbusiness,#liJ14,
  4. 4. Claro,helps,corpora9ons, and,startups,to,navigate, disrup&ve(shi@s(in, society,and,business,, delivering,service(design, and,business(innova&on( Elisabeth( Netherlands, Michael( USA, Aldo( Netherlands, Rich( USA, Megan( UK, Mandy( Lebanon, Abby( USA, Jiri( Belgium, Gunes( Turkey, #microbusiness,@claropartners,
  5. 5. Micro-business is rising globally: Change,photo, •  Comprise more than 95% of all businesses •  Employs 60-80% of the global workforce •  Fastest growing segment in both emerging and developed markets •  Significant part of the 10 trillion dollar informal economy •  40% of Americans predicted to be freelancers by 2020 #microbusiness,@claropartners,
  6. 6. Micro-businesses arise amidst the same shifts that disrupt large enterprises A new business context #microbusiness,@claropartners,
  7. 7. Micro-businesses arise amidst the same shifts that disrupt large enterprises !  Seeking a new lifestyle !  Generation Flux !  Unemployment/accidental entrepreneurship !  Networked society !  Collaborative consumption & peer-to-peer exchange !  New models of work Uncertainty Informality Immediacy !  Economic & corporate crisis !  Alternative payments & funding !  Lengthening of the long tail Volatility Experimentation !  Accessibility/usability of technology !  Mobile technology & payments !  Platforms #microbusiness,@claropartners,
  8. 8. Micro-businesses are not a new phenomenon, but this next wave is now appearing in new places and new forms. They are online and offline; entrepreneurs and mom and pop businesses; micro-manufacturers, crowd-funded, networked and global. #microbusiness,@claropartners,
  9. 9. Why are they misunderstood? •  •  •  •  Narrowly defined by their size and income Assumption that their main intent is high growth Homogenized and lumped together Few studies of their real needs and experiences , Despite being everywhere, Micro-businesses are not well understood & their motivations and needs are not well served #microbusiness,@claropartners,
  10. 10. Why are they underserved? •  •  Government, legal and financial processes do not match reality of the micro-business experience •  Despite being everywhere, Micro-businesses are not well understood & their motivations and needs are not well served Micro-businesses are not easily categorized, so often remain unregistered and invisible Available services don’t allow for the high experimentation and flexibility that micro-businesses need •  Treated as small, isolated businesses rather than a network of highly dependent entities , #microbusiness,@claropartners,
  11. 11. Exploring stories of microbusinesses around the world New York City MAKERS São Paulo ELASTIC MICROBUSINESS Shanghai PLATFORM ENTREPRENEURS Nairobi PARALLEL ENTREPRENEURS #microbusiness,@claropartners,
  12. 12. ELASTIC MICRO-BUSINESSES Elastic micro-businesses are micro-businesses that are able to quickly rescale and adapt to the changes in their environment. Corporate Partners
 example: Whole Foods Odesk Dabbawallas #microbusiness,@claropartners,
  13. 13. MAKERS Makers leverage new technologies, work spaces and platforms to create physical products, and are part of a global movement. Arduino Fablab Etsy #microbusiness,@claropartners,
  14. 14. PARALLEL ENTREPRENEURS Parallel Entrepreneurs are entrepreneurs who are running more than one business activity at the same time. Task Rabbit Kabbage Vayable , #microbusiness,@claropartners,
  15. 15. PLATFORM ENTREPRENEURS Platform entrepreneurs use platforms to connect, extend their reach and quickly react to market changes and demands. Shapeways Ebay Alibaba #microbusiness,@claropartners,
  16. 16. Despite this diversity, micro-businesses share a set of needs and characteristics •  •  •  •  Redefine Business Fundamentals Operate Through Networks Driven By Freedom Face Multiple Challenges #microbusiness,@claropartners,
  17. 17. Micro-businesses share a set of needs and characteristics Redefine business fundamentals •  Growth is not always desirable •  Value is more than profit •  Competitors are also peers #microbusiness,@claropartners,
  18. 18. Micro-businesses share a set of needs and characteristics Operate through networks •  Spread operations throughout networks •  Gain form and flexibility •  Blend personal and business #microbusiness,@claropartners,
  19. 19. Micro-businesses share a set of needs and characteristics Driven by freedom SELF-ACTUALIZATION •  Needs at different levels •  Fundamentally different drivers than large enterprise EXTERNAL ESTEEM •  Can thrive even in context of uncertainty BELONGING SECURITY MICRO-BUSINESS #microbusiness,@claropartners,
  20. 20. Micro-businesses share a set of needs and characteristics Face multiple challenges •  Experience can often feel chaotic •  Pulled apart by 2 sides •  Prioritise path to market PATH TO MARKET OVERHEAD #microbusiness,@claropartners,
  21. 21. WHY DOES Micro-Enterprise matter FOR YOUR BUSINESS? New partners New customers New competitors, #microbusiness,@claropartners,
  22. 22. Exercises introduction Customer(awareness(and( reputa&on(depends( (on(word(of(mouth( Fluctua&ng(cash(flow( Business(and(personal( networks((are(intertwined( Lack(of(capital(to(buy( (what(they(need( PATH TO Struggle(to(define(their(focus((MARKET while(keeping(op&ons(open( Poorly(defined(pricing(( OVERHEAD Personalized(customer(service(( is(&me5consuming( and(revenue(models( Must(wear(all(hats( Prefer(to(learn(by(doing( Hard(to(Priori&se(tasks( Development(not(aligned(with(bureaucra&c(or( legal(procedures( #microbusiness,@claropartners,
  23. 23. Contact us to learn more Aldo de Jong | partner aldo.dejong@claropartners.com +34 647 857 922 Abby Margolis | research director abby.margolis@claropartners.com
 +34 674 061 648 Claro Partners S.L.
 C/ Provença, 290, 3-1ª
 08008 Barcelona
 +34 931 786 332 #microbusiness,@claropartners,

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