What do we as a society have to offer for renewal? Fundamental changes are needed to keep the world livable, and that realization is slowly dawning on us. Innovative entrepreneurs are taking the lead. They want to make a difference in essential issues, but: how long will they keep it up if development requires a long breath? Perseverance only works if the environment is also willing to invest in change....
Dream, dare, do: it sounds so simple, but in reality, making dreams come true comes down to perseverance. Every day I meet entrepreneurs who take the plunge to put their idea on the market. They include inspiring difference-makers: people who do business because they can contribute to a better world with their innovative technology, product or plan. Money is never their motivation; the real profit lies in offering sustainable alternatives. The mission of these entrepreneurs is successful when their innovative solutions contribute to fundamental changes. As existing systems become increasingly bogged down, they deliberately work on the new possibilities they see before them.
Inspiration and frustration
The innovations these difference-makers are working on also make me dream: wow, if this works, then we will have something! Yet inspiration is regularly drowned out by frustration, because true innovation requires a difficult process of trial and error. Partly because of the existing systems, which oppose rather than welcome groundbreaking developments. Yet inspired entrepreneurs stick their necks out to make a difference. They invest everything they have in their dream, they trade their steady jobs for risk, and they take a lot of setbacks. They deserve great credit for that, while in practice they mostly face skepticism, critical judgments and - when it comes down to it - little willingness to help make innovations possible. As a society, we apparently have difficulty dealing with the uncertainty that comes with innovation.
As an investment manager, I look to myself first. Because when it comes to funding, even we - bound by limits - cannot give carte blanche and we have to keep risks under control. This means that we certainly don't make things easy for entrepreneurs. Sometimes I struggle with that. Sure, being businesslike is part of entrepreneurship, but if we all want to work and live more sustainably, smarter and healthier, that requires investment. From society as a whole. Because I also feel as a consumer. Am I willing to pay more for a product that really makes a difference? And do I myself dare to let go of a bit of my acquisitions if it benefits the balance of the world? The honest answer is that my own selfishness causes me to find this difficult. I ask critical questions of entrepreneurs, but difference makers also make me think with their commitment to change.
Urgency
Fundamental renewal is only possible if society helps make it possible. From government and investors to companies and consumers: it requires from all of us the courage to make different choices and to dare to persevere in them. The sense of urgency is still too often lacking in market behavior. Everyone claims to be in favor of sustainable development, but what do companies and consumers do when they really take a risk by trying something new or spending more money on alternatives?
Startups can never compete with ruling multinationals in terms of price, but this is expected of them. No matter how groundbreaking they are in potential, if new concepts are not better and cheaper than what we are used to from day one, many innovations are nipped in the bud. And that's also because of other obstacles in the path of difference makers: a) the reluctance of existing companies to participate in pilots - so scaling up stalls - and b) the difficulty of finding good people to strengthen the startup - because a lot of talent chooses security. Because of the focus on technical innovation and the lack of manpower, there is often too little attention to the commercial and business side of entrepreneurship. And that, in turn, makes it difficult to convince others of your good ideas. Behold the vicious circle that many difference-makers end up in.
Stretching boundaries?
A major stumbling block for startups is funding, often in the form of grants. Innovative technology needs a long lead time, while regulations do not always provide that space. For example, entrepreneurs are no longer eligible for certain essential subsidies after only three years of losses. Investors also struggle with long development times; there are limits to accepting delays and setbacks. And I wonder: shouldn't we stretch those limits a little further in some cases? Because failure is necessary to give fundamental change a serious chance; it is part of innovative development processes.
My concern is the loss of change power when difference makers throw in the towel after a while. I think we desperately need these types of entrepreneurs and they deserve - besides respect and appreciation - our care and support. How can we give them more space? That's a quest. I see the challenges, but an easy answer is not obvious. Throughout the chain from supplier to end consumer, we need to change our mindset. This is a process that I myself am in the middle of right now, both privately and in my work. As an investment manager, I am guided as much as possible by the creation of social impact and the importance of facilitating entrepreneurs in doing so. From the realization that real change takes a long breath and that perseverance only succeeds if we all contribute something.
Klaas Kooistra works as Investment Manager for the Frisian Development Company (FOM), a fund of the Province of Fryslân managed by NOM. In this role, he has spoken to many innovative entrepreneurs and invested in their concepts over the past decade. Thus, he experienced up close the long road from concept to market product and growth; and sometimes also the sadness of failure.