Lesson on how we can conquer Western startups

[Suleman]

Interesting discussions. Valid points all round. Here are my thoughts.

1. We need to welcome direct foreign investments
2. We need to actively protect our interest

Basically, what I am saying is…

While we need to welcome direct foreign investment, we need to actively protect our interest.

In any business relationship, everyone actively looks out for his own interest. As the investor looks to make a killing (the most profit) in our country, we must look to learn as much as we can, develop our capacities and become globally competitive.

Every nation passes through various stages of development.

From being incapable of developing its resources beyond the raw material stage, to being capable of processing raw materials to finished goods and competing globally.

Real wealth is made when you are capable of processing raw materials to finished goods and competing globally. Find below links to learn the top ten exports of the world’s biggest economies:

1. United State
2. China
3. Japan
4. Germany

In comparison, take a look at our top 10 exports.

We are still in the first stage. We need to learn, develop our capacities and start to pull our weight.

How do we learn?

We learn from others, more specificifally, we learn from foreign direct investors. They possess and will bring in the know-how we need.

Yes, at the beginning it might seem exploitative. But if we know what we are doing we will learn in no time. When we do, we become self-sufficient and a force to reckon with.

China as an example started by enticing investors to set up shop with the promise of cheap labor and a conducive environment. It learned from such investors. And very well developed its capacity. Now it a great force to reckon with.

That said…

@dataGuru

1. First and most importantly, we must learn how to do business. Entrepreneurs are good at finding their way around politics and govt to do business. We must learn how to compete effectively.

Yes, I totally agree. But we best learn from others that have done it. And what better way than in close proximity in our envirnment. Which is what can be obtainable with foreign direct investments.

@dataGuru

i like your analogy but unfortunately this is simply not true. No business will run their business at a loss.

I disagree. Silicon Valley startup model is; move fast, gain market share ultimately building a monopoly. Make profit later.

Most unicorns are running at huge losses with the hope of making a killing after owning all or most of the market.

@OoTheNigerian

Now you forgot to mention Uber is CREATING new value when there was none.

I think that Uber and its like are the types of businesses we need to actively look out for. To be cautious about. They “MIGHT” destroy jobs without creating any worthwhile replacement. Thus greatly increasing income divides.

There are links about the wages of Uber drivers in some US cities (below or just slightly above minimum wage).

1. From Inc
2. From CNBC
3. From Cnet
4. From Vice’s Mother Board
5. From Business Insider

Uber has said it times without number that it looks forward to changing drivers with self-driving cars. For greater efficiency and profitability.

We discussed technology, automation and the future of work in a radar thread. There, I stated that…

@Suleman

While AI and associated technologies do present lots of opportunities, they do also pose significant threats. Threats we need to put in perspective or think about. Threats we seem not prepared to tackle.

@Suleman

We always want to make more and think the problems we create in the process will sort themselves out.

Just my thoughts.