Launching i2i: A Case of Terrier-Like Determination

My mother loves to tell a story that she thinks demonstrates my unfailing determination. I was 12 years old, and I had just auditioned yet again for a solo in my choir class. Like the times before, I was woefully rejected. My choir teacher told me – in a kind, roundabout way – that I was just not a very good singer. But damn did I love it anyway. I sang in the shower. I belted tunelessly to my father as he shaved in the morning. I sang while I did my homework. I sang everywhere. Rejection wasn’t a sign of failure; it was an opportunity to learn and work harder. Come high school, I still wasn’t amazing, but I was a lot better. And I finally got my solo. A number of them.

I have been like this my entire life. I am not sure if it’s an endearing quality or rather annoying to the parties involved, but every time I’ve been told I could not do something, or that I wasn’t good enough, it was an invitation to prove people wrong. It was an opportunity to prove to myself that I could do anything I put my mind to. I’m not particularly brilliant, but I work hard. I listen. And I have the determination of a terrier (which are very determined dogs, in case you were wondering).

Terrier-like determination at its best: Ain't No Stoppin' Us Now.

Yesterday, I officially launched my start-up company, Invest2Innovate, or i2i, after a year of working hard, listening, and being unfailingly determined. i2i is an intermediary organization, helping social entrepreneurs (those taking a sustainable & entrepreneurial approach to poverty alleviation) maximize their impact to the low-income communities they serve, and matching them with funding/investment capital.

I developed i2i because I noticed the numerous disconnects that existed in this very dynamic and innovative space. First, a lot of entrepreneurs in emerging markets have low access to capital – some are unsure how to get investor attention, and others need support in turning their potential model into an enterprise that truly has a social and/or environmental impact. Second, investors (this brand of investors/funders known as impact investors provide capital in order to achieve a social impact with some varied financial returns), quite justifiably, are more comfortable funding businesses in relatively less-risky markets. In India, Latin America (especially Mexico & Brazil), and East Africa, we have seen the noteworthy development of this environment – or ecosystem – that is amenable to the success of social entrepreneurs. It is by no means perfect or fully developed, but we’ve seen the growth of the players that are integral to the support of these businesses – from business incubators to consultancies to investor networks to even government policies (in some cases).

I do not believe in the notion that social entrepreneurs are individual rock stars. And my criticism of this space is that we have a tendency to treat them that way, which I think hurts rather than helps in poverty alleviation. I’m a much bigger proponent of a broader ecosystem approach, in order to develop a space where entrepreneurship as a whole can flourish – whether that means workshops around business development or developing local mentor networks or having honest conversations about failure. This is not the only solution to poverty alleviation, but we’ve seen that in many developed countries, the growth of small and growing businesses has created jobs, generated income, and provided services and products to low-income and well-deserving communities. This thinking forms the foundation of i2i, and we aim to foster the necessary local networks as well as the regional and global collaborations to grow the ecosystem in the “untapped” markets.

About three and a half years ago, I launched this blog. CHUP was founded with the intention of providing a more nuanced perspective of Pakistan amid polarizing media coverage. Today, the situation is in many ways worse than it was three years ago, and yet I am launching a company with Pakistan as its pilot market (we plan to scale to other countries within the next three years). I know what you’re thinking. “No one is going to invest in Pakistan now, Kalsoom. You are an idiot.”

You can call me whatever you like.

I’m either completely naive or I just refuse to give up on Pakistan. It is probably both, but chalk it up to the terrier-like determination. In our country, 66% of the population lives under $2 a day. Many children, especially girls, still lack access to quality education. Families have little access to the healthcare they deserve. Years of foreign aid have fostered further dependency and created a culture of handouts. And yet we have a population full of young people that want to see tangible change in their lifetime. They just need the tools and opportunities to do so. With i2i, we may only have the capacity to provide tailored services to a limited number of social entrepreneurs a year, but we are also helping to create an environment where more businesses can have the broader tools and support to come into this space.

I relate my thinking behind i2i because frankly, you deserve an explanation. I’ve been a pretty crap blogger as of late. And I apologize (I also hope to be a lot better). But also because I feel like this company will be nothing without a community, without people who feel invested in the movement we are trying to create. And that starts with you. (Yes, you.) I had a pretty cathartic moment yesterday when our website went live, but that moment was followed with the harsh realization of the uphill battle we have ahead. I, for one, am damn ready for it. I hope you are too.

You can “Like” Invest2Innovate’s Facebook page here, and follow us on Twitter for constant updates. You can also check out our newly launched website (so fresh so clean!), I also upload photos, quotes, and videos that keep me inspired on our Tumblr blog. Feel free to reach out with questions, concerns, and feedback.

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Turkey, Pakistan & Lessons of Entrepreneurship – Elmira Bayrasli

Last week, The Indus Entrepreneurship [TIE] Conference was held in Lahore, aiming to bring together “a mix of leading local and international entrepreneurs, investors and business leaders” to explore the role of entrepreneurship as a change agent. The News’ Mosharraf Zaidi, who wrote about the conference, noted, “Without a generation of innovators and entrepreneurs, job creation in Pakistan will stay dormant, while our population and its appetite for consumption goes through the roof.” Elmira Bayrasli, a writer working on development issues, recently returned from a trip to Pakistan where she explored similar issues, noting in a piece for Portfolio.com that Pakistani entrepreneurs are driven mainly by a desire “to pull Pakistan out of its political and economic abyss.” Below, she delves further into this topic [which first appeared on her blog, Wonderment Woman, as part of a five-part postcard on Pakistan]:

“Welcome honored donors,” read the banner hanging over the passport control counter at Benazir Bhutto Airport in Islamabad.  That, along with hot, musty air, was my greeting to Pakistan, at 3AM two Sundays ago.  I had arrived, along with my colleagues Phil Auerswald and Sara Shroff to assess Pakistan’s entrepreneurial landscape.

Not far from the banner, there also hung a framed black and white photo of a gaunt man in a dark textured and triangular hat, similar to the one that Afghan President Hamid Karzai sports.  It was Muhammad Ali Jinnah, the revered founder of Pakistan – the land of the pure.  Jinnah established the republic in 1947, after gaining independence from the British and breaking from India.

Jinnah reappeared a half hour later when I entered the lobby of the infamous Marriott Islamabad.  He was there again the next day when we visited the Institute of Business Administration in Karachi.  Jinnah seemed to be everywhere.  The only other place I know of where that happens is… Turkey.  The image of Mustafa Kemal Ataturk, the blue-eyed founder of Turkey, is, like Jinnah’s, ubiquitous throughout Anatolia. Both dominate every government office, school entranceway and public space.

Pakistan and Turkey have a lot in common.  As predominately Muslim nations, both have struggled with secularism and Islam.  Both have had, as a result, numerous military interventions that have overthrown their respective country’s government.  As predominately agrarian societies, Pakistan and Turkey have wrestled with developing their respective economies in order to compete on the global marketplace.  For a long time, it was a tough fight.  Both countries choked under unemployment, debt, run away inflation and rent seekers.  Pakistan still does.  Turkey has broken from that cycle.

It broke as a result of the economic liberalization reforms enacted by late Prime Minister Turgut Ozal in the 1980s.  With less state-control and relaxed trade and banking laws, Turks embraced entrepreneurship.  Overnight, they turned Anatolian cities, more commonly known as “Anatolian tigers,” into textile and manufacturing centers and lifted Turkey’s poor into the middle and upper class.  Today, Turkey holds a seat at the G20 and the UN Security Council.  Despite being continually rejected by Brussels, it has, by the European Commission’s own account, the fastest (and perhaps only) growing economy.  It is an example that beleaguered Pakistan can and should replicate.  It should do so with Turkey’s guidance.

Turkey understands Pakistan’s economic struggles because Turkey once endured them as well. “We have common problems and common solutions,” said Turkish Prime Minister Recep Tayyip Erdogan while visiting Pakistan just last week.  Part of Turkey’s solution is taken directly from Washington in the form of aid.  *Sigh.*  Fortunately, the other part of Turkey’s solution is precisely what Pakistan will help Pakistan develop: investments.

Rather than a money problem, Pakistan suffers from an investment problem.  The money that Pakistanis possess is caged. It’s used to cover day-to-day expenses rather than being used as leverage to create new enterprises and, most importantly, jobs.  Turkey has discussed opening banks in Pakistan, increasing trade and encouraging its private sector to seek collaboration on construction, infrastructure, engineering, energy, agriculture, telecom and textile opportunities.  That is a good start.  But more can be done. 

Here are two suggestions:

1. From a historical, religious and cultural perspective, Turkish entrepreneurs and investors are ideal role models and mentors for aspiring Pakistanis with start-up ideas.  They can help advise on operating in a Muslim society where entrepreneurship has not traditionally been encouraged or possible, where risk has largely been absent and where failure has always been the kiss of death.  Both countries could develop an entrepreneurship exchange and mentoring program where Pakistani entrepreneurs spend time working in Turkey and Turkish entrepreneurs in Pakistan.
2. Turkish investors could establish, along with their Pakistani counterparts, a fund, with manageable interest rates and transaction fees, for Pakistani entrepreneurs.  It is an idea that American venture capitalists would benefit joining as well.  This will help unshackle Pakistan’s paralyzed capital that can then provide the leverage to jumpstart enterprise development and job creation.

It is imperative that Pakistan climb out of its current crisis and into prosperity.  There are signs it is prepared to do so.  The absence of Jinnah’s photo in the sleek and modern offices of the several entrepreneurs Phil, Sara and I met with was the clearest. Pakistan’s younger generation, while deeply patriotic, is not straightjacketed by the past.  They know that while Jinnah may have been their country’s founder, they are its keepers.  For now, they’re pushing their black and white past aside in order to keep their focus on what could be Pakistan’s abundantly colorful and high-definition future.

The contribution is the sole opinion of the author and does not necessarily represent the opinion of CHUP. If you would like to contribute a piece to CHUP, please email Kalsoom at changinguppakistan[at]gmail[dot]com. Pieces should be no longer than 800 words please. For past contributions, click here.

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