Skip to content
Description
By: Tarun Khanna
A Harvard Business School professor and international entrepreneur explains the crucial ingredient for success in the developing world.
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, partners, clients, and customers—and with society as a whole. This can require 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
A Harvard Business School professor and international entrepreneur explains the crucial ingredient for success in the developing world.
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, partners, clients, and customers—and with society as a whole. This can require 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
You may also like
熱銷中 Top Trending
Dragon Masters #27 (正版) Haunting of the Ghost Dragon (Branches) (Tracey West)
Sale priceHK$47.00
Regular priceHK$69.00
In stock
Percy Jackson and the Olympians: Wrath of the Triple Goddess International Edition
Sale priceHK$92.00
Regular priceHK$140.00
In stock
Press Start! #14 Super Game Book! Special Edition (Branches)
Sale priceHK$48.00
Regular priceHK$80.00
In stock
A Day in the Life of a Poo, a Gnu and You (Winner of the Blue Peter Book Award 2021)
Sale priceHK$83.99
Regular priceHK$154.00
In stock
Treehouse, The (正版) Boxset / Bundle with QR code Audio (Andy Griffiths)
Sale priceFrom HK$179.00
Regular priceHK$673.00
In stock
Billy and the Mini Monsters #16 Monsters at Easter
Sale priceHK$46.00
Regular priceHK$84.00
In stock
