Unlearning to innovate: 7 steps entrepreneurs need to know when getting into inclusive business

Dr. Fernando Casado Cañeque, Director, Centre of Partnerships for Development

Unlearning to innovate:
7 steps you need to know when getting into inclusive business

Dr. Fernando Casado Cañeque. Director, Centre of Partnerships for Development

It is typically in crisis situations when the absence of political leadership becomes most evident. In such situations, it is also when social innovation becomes most needed.

However, as a concept, for innovation to be really social, it should challenge current thinking models and recognize that present decision-making parameters have not been adequate for solving global challenges. That is why it is now so necessary to start unlearning as a reflective method for critical inquiry, so we can fully analyze the limits of management promoting transition towards more inclusive and sustainable development.

We need to unlearn in order to innovate. This proposal presents seven steps that will help the unlearning process towards social innovation, enabling entrepreneurs to generate new business models in times of crisis that are more inclusive and sustainable:

First step: The world is limited. There is only one earth.

Current world growth is using the resources of 1.5 earths. If the whole world consumed at the same rate US citizens, it would take at least five earths to supply global consumption.

Opportunities for Entrepreneurs: propose economic models based on the concept of limited resources, that promote eco-efficiency, produce more with less, and design new products that generate social and natural value.

Second step: Population growth is the biggest challenge in our history

We are the first generation that has experienced a doubling of population during our existence. If it is difficult to ensure access to food, education, clean water, energy or housing for 7 billion people today, providing it for the additional 3 billion that will be incorporated in the next fifty years will be mankind’s biggest challenge ever.

Opportunities for Entrepreneurs: generate new markets enhancing public-private frameworks that ensure access to public goods and development goals for all.

Third step: Profit is not revenue minus costs

The main economic formula: Profit = Revenue – Costs proved false. Some of the externalities are not internalized properly and this is specifically worrying when it affects public goods and social or environmental assets.

Opportunities for Entrepreneurs: create business models based on the triple bottom line to help companies calculate the real value of their production process.

Fourth Step: Organizations are obsolete

Organizations have transcended their original nature (whether they are public, private or social) and there is an increasing evolutionary trend towards hybrid organizations that integrate social commitments with profitability targets.

Opportunities for Entrepreneurs: encourage the progression away from traditional sectors and develop new hybrid structures that promote economic and social development in a cross-sectoral approach.

Fifth Step: The challenge is not to have ideas, but to implement them

In an environment where open and shared technology becomes more and more prevalent, vested interest to own ideas and maintain patents is becoming obsolete. Enhancing knowledge accessibility is multiplying the potential of generating ideas, and promoting social transformation.

Opportunities for Entrepreneurs: foster open innovation and knowledge platforms to address global challenges.

Sixth Step: Talent evolves and migrates

Traditional business models have backed educational profiles based on rationalization and competitiveness. In the framework of inclusive business, other parameters such as empathy with strategic partners, emotional intelligence, intuitive management or complementarity are essential for success.

Opportunities for Entrepreneurs: leverage new professional profiles and promote business models aimed at achieving win-win partnerships among stakeholders.

Step Seven: Opportunities have moved

New business model creation has normally aimed towards wealth and resources, thinking this was where opportunities were generated. Now trends aim to go where there are gaps and needs. Resolving societal challenges define future markets.

Opportunities for entrepreneurs: promote business models that generate social and environmental value in low-income populations and increase access to development.

In short, our fate depends on how we understand and solve global challenges. Opportunities lie in how we innovate to achieve more sustainable and inclusive patterns of development. Unlearning is a key to these opportunities and essential for those who understand that innovation is the only path we have left towards sustainability.

Editor’s Note:

The Centre of Partnerships for Development offers courses on unlearning and innovation to companies, organizations and social entrepreneurs that aim to achieve social transformation to more sustainable and inclusive business models.

Follow Fernando on Twitter at @Fernando_Casado

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