It takes strength

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Joanna Montgomery graduated from DJCAD in 2010 with a brilliant idea, an enterprising spirit and a huge sense of determination. The concept was a simple but powerful one that resonated with people worldwide. Indeed, while still a student she had thousands of likes on her Facebook page and a You Tube video that today has attracted 850,000 views.

She started out by entering pitching competitions to raise capital (which she won) and working the media to build interest including BBC, CNN, Huffington Post – of which she became one of their regular bloggers. And of course, most importantly, working out how to bring it to market – in design, technical and business terms. From the pitching competitions arose her reputation as an inspirational speaker, culminating in her TEDx talk earlier this year.

There were setbacks along the way, many of which would have caused others to have given up, but not her. Some of the challenges arose from her position as a young woman in a male-dominated tech culture. She not only took these on, but wrote powerfully about them, so that others could benefit from her journey.

Yesterday Joanna launched Pillow Talk on Kickstarter. I never doubted for one moment that Pillow Talk would launch. Joanna excelled in the three vital aspects of enterprise – creativity, communication and commitment. She had powerful, relevant and innovative ideas, she perfected the craft of how to inspire others in this vision and in her journey, and she was committed totally to that journey.

And just about every year throughout this difficult and demanding journey, she found the time to come back to Dundee and talk to my students for an hour (or put up with them visiting her), never failing to inspire and generate huge interest. And if that isn’t enough, this inspirational entrepreneur found the time to train and compete to become England’s strongest woman.

But watching her transformation from a person who lived in “a body that I didn’t like” to a confident woman who could pull large trucks up hills with her bare hands, demonstrated something else. Strength is a skill, and skills are learned. The reason my students (and of course many others) find her inspiring is because she shows that with determination and focus, then we can all achieve strength in our work and lives.

Alongside strength, Joanna has another quality which we rarely encourage in entrepreneurs, but which marks her out – honesty – which is often a quality many find difficult to deal with. Her best Huffington Post pieces exemplify this honesty: “I’m OK, You’re OK – But Are We Really?”, “How to Take Care of Yourself When No One Else Will”, “Pretty Face and Thick Skin: Flourishing in a Male World”. I’ve read a fair number of books by entrepreneurs, and very few (if any, frankly) display honesty, which is why I recommend these pieces by Joanna to my students.

Yes, it takes strength: the strength to get through failure and setbacks; the strength to be totally honest; the strength to stay the course.

And as a former tutor, I’m very proud of that achievement.

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Scottish innovation: design and democracy

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We are perhaps seduced into believing that the UK is moving into the Harry Potter economy, in which so-called ‘creative’ industries, such as film production, television and publishing drive wealth creation and employment. Indeed, some years ago it was suggested that boy bands contributed more to the GDP than the aerospace sector. While I’ve never been able to fully examine the veracity of this claim, the day after One Direction called it a day, I paid a visit to the Tayside firm of Scott & Fyfe. The broad product portfolio of this textiles manufacturer includes composites that stitch bond together glass, carbon, aramid and other high performance fibres in products that are used in a range of sectors, including aerospace. While this company’s turnover may not quite be up there with the world’s top grossing music act, they represent a sector that is vital to the UK economy. The textiles industry in Scotland has undergone something of a renaissance in recent years, contributing over £1 billion to the economy, and generating considerable export earnings. There are currently around 570 companies Scottish textiles manufacturers directly employing around 9,000 people. In Scotland we still make things. But we make them, and create them very differently, and Scott & Fyfe shows us a unique way of doing things.

The company  has a 150 year history as a manufacturer of technical textiles, from its base in the small coastal town of Tayport in the north east corner of Fife. What it weaves and knits are the textiles that are used to create motorcycle helmets, rubber underlay backing, irrigation piping systems, bus interiors, yacht hulls, water slides, truck wind deflectors and much else. This company, which has a global reach in highly competitive markets, is a hidden gem of Scottish innovation. For me, its significance and inspiration comes from its unique fusion of design and democracy that creates an aspirational, highly creative firm that values and fully uses the skills and insights of its employees.

The global economic crash of the late 2000’s coincided with a crisis in the company’s fortunes. But its slide towards crisis was caused less by recession and more by its long-term failure to innovate and develop new products.

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“Ours is a business of failure”, said Michaela Millar, the hugely impressive Business Development Officer who had invited me to the company. Michaela’s background is in textiles design from DJCAD, but it is evident that her responsibilities go far beyond a design brief. She explained to me that the company’s varied markets demanded constant innovation and bringing new products to the market. Most of these products will fail, so the task is to learn from failure, build on success and move on.

In our risk averse culture, this attitude is refreshing and places Scott & Fyfe in a rare group of organisations which have succeeded in finding strategies that innovate through encouraging creativity.

Talking to me in one of the innovation pods in a huge open area adjoining the factory, painted in primary colours and floored in astroturf, Michaela told me how two key developments pulled this ailing family-run firm back from the brink. In 2010 the company began to work with Glasgow School of Art’s Design Innovation Studio, to explore how creative thinking and innovation could infuse its culture and operations. This resulted in a range of tools and methods being explored and applied in the company. This opened them up to new perspectives and – crucially – new thinking tools that could be applied to new product development.

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Joined by Business Manager, Michelle Quadrelli, the two spoke to me with obvious passion and enthusiasm how this design-led strategy was quickly accompanied by a move towards employee ownership. In December 2012 Scott & Fyfe evolved from a fourth generation family owned firm to a fully employee owned enterprise. The workforce is fully informed and briefed on what the firm is doing, and above all is valued in terms of their knowledge and skills. The tools provided by GSA are one means of harnessing this vital expertise, and turning it into new successful products.

This appears to be a vital element in the company’s success – and all too rare in the UK. Unlike Germany and the Scandinavian countries, industrial democracy has been notably absent from Britain’s industrial landscape. Perhaps predictably, it is on the agenda of none of our political parties, and it should be.

Scott & Fyffe shows another way ahead for our manufacturers – based on design and democracy. It embraces creativity – the creativity of ALL of its workforce. Far from pillorying failure, which is seemingly our national pastime, it uses failure as a useful source of learning. As Michaela said to me “we fail fast, and we fail often, and that way we do things better.” It uses methods of innovation and design thinking that I last saw being applied in California’s Silicon Valley. It trusts and it values its people. And yes, they are “people” not “human resources”.

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Giving relatively untested employees like Michaela trust and responsibility is refreshing. Hers has been a steep learning curve, but the scope to explore new markets and possibilities has brought the very best out of this highly talented young woman. But that is my enduring impression of Scott & Fyfe – an enterprise that knows that its employees are its most valuable asset. Respect and value them, give them a stake in success, support them and give them tools and space to creative, design and take risks – and you will succeed.

With design and democracy, Scotland’s enterprise can be world class.

Learning from Vanilla Ink

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So Vanilla Ink – the unique Dundee based jewellery start-up incubator and general creative powerhouse – is to shut up shop in the city; for a while at least. Kate Pickering has driven forward Vanilla Ink from an initial hazy notion of what she would have liked to have seen supporting her when she graduated as a jeweller a decade ago, through to being the creative exemplar cited in just about every talk and article about Dundee’s creative economy. Well, in mine anyway.

For Dundee this is an important moment – perhaps more important than we recognise, given the significance of design to the regional economy and to the future that we are seeking to create for ourselves. Personally it’s significant, in that I have worked with Kate in a very modest way over the last few years to support her in building her vision. Some reflection is therefore in order about what we can learn from the Vanilla Ink achievement, where it leaves us, and – most importantly – how we build on the incredible legacy that Kate has provided us with.

What, then, has Vanilla Ink taught us? It would be easy to say that it all rests on the remarkable Ms Pickering of whom I am hugely proud. But as an educator I believe that individuals who do remarkable things stand as an inspiration to us all, and as such help us all to raise our game.

It’s about vision

Right from the start, Kate had a clear vision about what she wanted to create – a workshop space to enable jewellery graduates to develop their businesses, supported by mentors and a structured programme of support that would help them to develop the skills, confidence and knowledge to succeed in the future. That was it. Hers was a vision propelled by the passion she has for jewellery, for the city she had chosen to call her home – and most importantly for people.

It’s about people

It was a vision about how people could work together, support each other and make their own visions real. This has echoes of the idea of the “social expert” – in which craft expertise (or indeed any expertise) is indivisible from social interaction, from mentoring and co-operation. This is in contrast to the idea of the “antisocial expert” who is competitive and selfish with their knowledge. Kate exemplifies the qualities of the social expert, and has created a project centred around the sharing of skill, confidence and creative entrepreneurship. I believe that a sustainable and convivial future is dependent on people who are passionate and caring about other people.

Telling the story

Visions do not become concrete unless they are shared – and to do that their story has to be told. Right at the very start, Kate told that story a little uncertainly, a little falteringly. But the more she told it, the more her confidence came, and the more vivid became the telling. The vision was just the start – it was the story, the narrative, the placing of this idea within her own experience and expertise that made this project a viable proposition. In November 2011 she was one of those invited to speak at Dundee’s first ever Pecha Kucha. Watch her presentation below:

Build alliances

Innovative places require innovative communities, and building communities is the most vital activity, without which change simply does not happen. Again, this is part and parcel of being a social expert, and Gillian Easson’s success in building the Creative Dundee community is evidence of this. Kate was a pioneer (to my mind anyway) in using social media as a means of building a real community around Vanilla Ink, and connecting with others, such as Jane Gowans and Hayley Scanlan, to demonstrate a vibrant community of creative women entrepreneurs in Dundee. Her use of Kickstarter for the first Vanilla Ink cohort was a brilliant demonstration of what crowdfunding could do to generate support, community and finances to raise the ambitions and profile of the group. Indeed, Vanilla Ink was one of the first UK Kickstarter campaigns. Kickstarter was a means by which the City could get behind Vanilla Ink and show its collective support.

Creative leadership

“Mike, I’m going to initiate and organise the first ever Scottish jewellery week. What do you think?”  I thought she was possibly a bit unhinged, and if it went wrong, then it would go spectacularly wrong, but when you are a proven and respected creative leader then that’s not really on the agenda. Creative leadership means forever looking outward, not inward, looking for new opportunities, creating a focus for your ideas, and bringing people along to share in what you create. From initiating Vanilla Ink, then a creative festival to celebrate jewellery was the logical next step. Creative leadership is also about being unpopular when that is necessary, it’s about facing up to setbacks and having the confidence to move on. It is about being brave. These are qualities that she has developed, and that the emerging generation of new change makers can learn from.

Knowing when to quit

There’s a real art to quitting. And indeed a science. I teach my students “the meaning of life” at then end of one of my lectures (no honestly, I really do), and this is in part about knowing when to quit – or rather about knowing when to reinvent. As the inspirational Charles Handy says “The world keeps changing. It is one of the paradoxes of success that the things and the ways which got you where you are, are seldom those that keep you there.” I have no doubt that Vanilla Ink could have just carried on in the same way, but the world does keep changing, the challenges shift, and new opportunities arise. This is linked to creative leadership, having an outward focus that constantly scans for new ways of developing and implementing vision.

 

Some lessons for Dundee…. be cool

Finally, a few lessons for Dundee. The creative industries are great. They can be transformative to regional economies and to the profile of a post-industrial city such as Dundee. They bring the allure of awards and celebrations, which of course cities love. But they have two other qualities: they are VERY fragile, and VERY mobile.

We are at a significant moment in our city’s development, which is overlain by some equally significant shifts in employment nationally and internationally. Scotland has a much improved rate of new business start-ups, but we have yet to see the kind of support for new businesses and for the self-employed that the RSA, NESTA and other organisations have been saying we need to see, and which I have been writing about for some time. It is time that the city and the country took the needs of our fragile but vital creative industries more seriously. This is not about asking for hand-outs or subsidy – rather the infrastructure, business support and mentoring that our Millennial-driven start-ups need.

Kate exemplifies Richard Florida’s idea of the creative class – these are the creative knowledge workers in fields as diverse as engineering, the theatre, life sciences, education and business start-ups that all economies demand to retain their dynamism. As Richard Florida says “In the future, they will determine how the workplace is organized, what companies will prosper or go bankrupt, and even which cities will thrive or wither.” One key characteristic of the creative class is that it is highly mobile, lacking the traditional bonds and loyalties that formerly bound people to place.

When he was Mayor of New York City, Michael Bloomberg wrote this in the Financial Times: “I have long believed that talent attracts capital far more effectively and consistently than capital attracts talent. The most creative individuals want to live in places that protect personal freedoms, prize diversity and offer an abundance of cultural opportunities. A city that wants to attract creators must offer a fertile breeding ground for new ideas and innovations…. Economists may not say it this way but the truth of the matter is: being cool counts.”

In Dundee we have made considerable progress, but we still have a fair way to go. I have yet to be convinced that the City truly understands the cultural dimensions of economic development, or indeed the needs of our fragile start-ups.

However, my belief is that by learning the lessons from initiatives such as Vanilla Ink, and strengthening the creative communities of Dundee, then we will continue to make progress. Vanilla Ink 2 Dundee will open up, and will take Kate’s vision into new territories. For this to happen we need new energies and ideas to join with hers. She showed us what was possible. Now let us build on that further and really put creativity to work in Dundee!

 

Dundee’s Daltrey data dilemma

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YouGov has a massive database of consumer and voter and lifestyle preferences based on 200,000 people which they have made available online for ‘profile’ access. You can’t drill into the data, for that you have to pay upward of £4,000 – but it’s a taste of the data that they have.

Visitors to the YouGov Profiles website are invited to type in “any brand, person or thing” – and will be presented with a typical persona of a consumer, fan or user. Using it we discover that the owner of an Apple iPhone is more likely to be a professional woman with politics in the centre. An Android user is more likely to be male, lower middle class and left wing in their politics.

So, what sort of typical person has an interest in Dundee? A male around 30, working class, with voting preferences bordering on the Marxist. Lorne sausage and Madeira cake are amongst their favourite foods, they are keen on tennis and possibly keep a budgie. They drive a Kia, shop at Tesco and Burton is their tailor of choice. They read The Scotsman and Reveal Magazine, and favourite entertainment includes Gary: Tank Commander and Roger Daltrey. 

But people who like the University of Dundee are more likely to be professional women aged over 40, conservative in politics with a taste for brown rice and horse racing, driving a Peugeot and reading The Herald.

Admirers of Alex Salmond shop at Lidl and drive a Skoda. If they invite you to dinner it’s likely there’ll be a Forfar Bridie involved. They like watching Braveheart, listen to The Stranglers and are regular readers of New Scientist. Yes, I too began to doubt the veracity of this when it got onto reading preferences.

But they’re bang on when it comes to the typical Arsenal fan: a posh woman in her early 20s who shops at Waitrose and John Lewis and reads The Guardian and The Economist. She has a taste for empanadas and probably keeps a goldfish.

I myself am broadly in the demographic of the wearer of Paul Smith (although my salary only really stretches to the socks, and I got given those as a present), a professional male of a certain age with a taste for Jack White, Morrissey, and Apple computers. However the real oddity is this: their politics are clearly left of centre, but they read The Telegraph. Go figure that one out.

YouGov profiles are probably a useful starting point for developing personas and I can see a role for it in teaching. They help to demonstrate differences in values as expressed by brands. As a starting point for other research I feel there us much to commend it. But if I was V&A Dundee planning their launch campaign, I probably wouldn’t rush to sign up Roger Daltrey.

 

 

Useful work: the changing landscape of entrepreneurship

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“Here, you see, are two kinds of work – one good, the other bad; one not far removed from a blessing, a lightening of life; the other a mere curse, a burden to life. What is the difference between them, then? This: one has hope in it, the other has not. It is manly to do the one kind of work, and manly also to refuse to do the other.”

William Morris, Useful Work vs Useless Toil, 1884

 

Bill was right all along. The alienated useless toil necessitated by capitalism would eventually give way to more constructive, satisfying and useful work. It would take a great deal longer than he expected and involve far less chintz, but the landscape of work would – in the early twenty first century – begin to shift towards sustainable autonomous production involving considerable numbers of people. Perhaps not as part of the socialist utopia predicted by him, Marx and others – but more as a means by which people in advanced industrial economies could gain flexibility and satisfaction, while coping with the erosion of the welfare state.

There are some profound shifts taking place in the landscape of entrepreneurship in the UK which educators and policy makers need to catch up on. Despite record numbers of new business start ups in Scotland, political debate has yet to seriously address issues that concern entrepreneurs or indeed the wider cultural and economic questions of entrepreneurship. This is regrettable because the latest research is providing some rich insights into why people go into business, what meaning it provides for them, and how working and creative practices are being transformed.

A recent report on microenterprise provides some fascinating insights: the RSA/Populus survey Salvation in a start-up? The origins and nature of the self-employment boom, produced in partnership with Etsy and authored by Benedict Dellot. Below I will pull out some themes from this report, link them to other recent research and identify some implications.

A cultural shift

Since the onset of the recession in 2008 we now have 600,000 more micro enterprises (firms with less than 10 employees) in the UK. Today, one in seven of the workforce are working for themselves, and this trend is clearly climbing. Just over the last year we have seen a 9% growth in new business in Scotland, and over the last five years the business start up rate for Scotland has been one of the highest in the UK. According to Entrepreneurial Spark founder Jim Duffy “Coming out of a recession, a new industrial revolution is starting in Scotland. So many people, who didn’t think they were capable of turning their hand to entrepreneurship, are now doing it.”

That much is certainly true. But they are not doing it because of the recession. They seem to be doing it because they want to: it is (to coin a perhaps overused phrase) a lifestyle choice. The RSA survey suggests that only 27% of startups had anything to do with escaping unemployment, and self-employment had in any case been on a steady climb all through the years of the economic boom. This is supported by other recent research including a survey conducted by Ipsos MORI for the Resolution Foundation, confirming that 73% of those who became self-employed since the recession “did so wholly or partly due to their personal preference for this way of working, and not solely due to a lack of better work alternatives”. While the RSA report argues for evidence of structural social and economic change to account for this, I would suggest that there is a more deeper seated cultural shift that is behind the new ‘start up tribes’.

 The new tribes of enterprise

The report identifies six tribes of self-employment, each of which describes very diverse characteristics and motivations of entrepreneurship – shown in the figure below. Only 33% fall into categories that we associate with conventional business culture – driven by profit, a focussed sense of purpose and desire for growth. Virtually all business policy is predicated on the assumption that startups have the ambition to grow and take on employees. The reality – revealed by this research – is that most don’t. Indeed, very few self-employed people who have started up in the last 5 years have taken on employees. There has also been a notable rise in part-time self-employment, suggesting that this can co-exist with part-time paid employment and other activities. Nearly half the rise in self-employment since 2000 is accounted for by part-timers, or nano businesses, as the report refers to them.

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Poorer but happy

Many of those in the RSA survey see work as inherently enjoyable (in contrast to much of society) and 85% say “they are now more creative, autonomous and satisfied in their work” with key advantages being flexibility to deal with their own health and the welfare of family. In other words, autonomy, flexibility and happiness appear to be the qualities of self-employment that are most valued. On the downside, they are earning less money. As the report argues:

“Life for the self-employed presents a paradox: they appear to earn less, work harder and be more isolated, yet in the round are some of the happiest people. The reason seems to be because their work offers greater autonomy, a source of meaning and – perhaps surprisingly – a greater sense of security. All of which suggests that the draw of self-employment lies in what the Swiss economists Benz and Frey term ‘procedural utility’. In other words, people who work for themselves gain more from the way something is done rather than the final outcome of that activity – namely money.”

I would suggest that there is a genuine movement towards creating a culture of useful work and autonomous welfare. The two massive failures of the modern age are the alienation and inflexibilities created by work and the shortcomings of our welfare state, especially in terms of childcare and inadequate pensions. Much of the shift towards self-employment would appear to be driven by an impulse to create meaningful, flexible work rather than profit. This is not to deny the vital importance of the visionaries and the classicals to local and indeed national economic growth, but their needs and significance have to balanced by the very different needs (and contribution) of the remaining two thirds of the self-employed. I will briefly look at three issues below and pull in some additional evidence.

Self employment is about thinking.

The biggest increases in self-employment since 2008 have actually been in professional occupations. In a piece entitled How British workers are losing the power to think, Guardian correspondent Aditya Chakrabortty has drawn on research that strongly suggests an erosion of autonomy in many occupations. “Since the mid-80s, academics have been carrying out regular skills surveys, asking detailed questions of thousands of employees. In 1986… 72% of professionals felt they had a great deal of independence in doing their jobs. By 2006, that had plummeted to just 38%.” Some researchers are suggesting a future workforce in which only 10-15% will have permission to think. “The rest of us will merely carry out their decisions; what the academics call ‘digital Taylorism’, in which graduates will end up on the white-collar equivalent of a factory line.” This would suggest that self-employment is driven by a very basic human need: to use your brain creatively and fully.

Self-employment is family friendly.

The successive failures of UK and Scottish governments to provide adequate and affordable childcare – in contrast to many other European countries – is providing one major motivation for self-employment. One recent survey showed that 65% of mothers with children under ten years of age are considering starting a business from home in the next three years, and 49% “believe that they would be financially better off if they started a business from home”. The rise of the ‘mumpreneur’ (a contentious term), of whom there are estimated to be 300,000, is part of a shift in self-employment away from its historical tendency to be male dominated. Indeed, over the last two years the number of female entrepreneurs has increased by 9.6% in contrast to a 3.3% rise for men.

Make a job – don’t take a pension.

The self-employed are getting older. Those aged 55–64 has risen by 40% since 2000, while the over-65s in self-employment have increased by 140%. The over 55s are now a significant start up demographic and we could perhaps see this group as shifting towards self-employment as a means of dealing with the pensions crisis that is otherwise undermining security into old age. This view is supported by the Resolution Foundation in their separate survey and report:

“28 per cent of the overall growth in self-employment is due to a decline in the rate at which people leave self-employment. Our view is that this is partly explained by the UK’s expanding and ageing workforce. The raising of the retirement age, longer life expectancy and low levels of pension saving may have led to people remaining in employment for longer, and because self- employed people tend to be older than employees, this disproportionately affects this group. Self-employment might be growing as an alternative or complement to retirement, rather than as an alternative to being an employee.”

A policy vacuum

The evidence suggests that this diverse and varied landscape of enterprise is simply not recognised as such by the state, and those public bodies there to support the self-employed. At least that is the view of those surveyed in the RSA report who “still largely feel as though they are overlooked by the state”. More significantly “the vast majority believe the Conservatives have the best policies for their business”. Worryingly, there is also widespread support for a cap on immigration. The Conservatives certainly have more policies and a clear ideological commitment to enterprise and self-employment. The left and the labour movement appears held back by long-established animosity. While the RSA report points out that the most obvious bodies to help provide the collective benefits and support needed by the self-employed are the trade unions, this is unlikely to happen any time soon as the unions “have been one of the most vocal in disapproving of the rise in self-employment, with the Trades Union Congress recently expressing its concern that this type of work is inherently insecure”. 

So perhaps in an independent Scotland the self-employed could be the driving force of a new economy, autonomy and community focused wealth generation and support? Best not hold our breath. In all of its 604 pages, the weighty tome that is Scotland’s Future : Your Guide to an Independent Scotland contains only one reference to the self-employed.

What is clearly needed are conversations to help set a new agenda to support the forms of self-employment that are reshaping work, enterprise and welfare. These conversations should seek to focus around the question of how the UK’s micro enterprises can be taken seriously and influence policy makers. A critical objective should also be to create a vision of how a world centred on useful work could develop and thrive. 

 

Riders on the storm: navigators of new enterprise communities

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This Tuesday evening I was invited to be one of four Ideas Experts at the showcase event of Nightriders in Glasgow. Initiated and hosted by Snook, Nightriders is a mentoring and support programme for emergent entrepreneurs “designed to help people see in the dark and navigate their way through Scotland’s enterprise support landscape”. It was an inspiring and uplifting evening, and there is a Storify which captures the spirit of the evening and the reactions of those who attended.

It should be easy to navigate your way from a sound idea to a viable sustainable business. But the reality is that it is far from easy. In Scotland there are around four hundred bodies and programmes set up to support new enterprise. Nightriders has been established to help those who have a business idea, but don’t know where to start. And it draws directly on the experience of the Snook founders who had find their own way through the tangle of advice and support to establish one of Scotland’s leading Service Design companies.

Nightriders is a novel approach to enterprise support that harnesses the power of networks, design thinking and business skills. It is not seeking to replace existing programmes or support structures, but rather “we are focusing on building confident communities who will take their ideas to the next level on their own or with these existing organisations”. That’s all well and good and reads like good copy – but when one of the Nightriders said ‘This is the most confident I’ve ever felt’, and you could sense she was speaking for them all, then it’s a claim worth taking seriously.

Scotland is currently enjoying something of an enterprise revolution, with a remarkable turnaround in entrepreneurship in the last few years. Scotland wasn’t just a poor performer in terms on new business startups in the UK – but in Europe generally. But things have changed. Between 2012 and 2013 there was a 19% increase in new business registrations, and the current total of 340,000 businesses operating in Scotland is the highest since records began. Indeed I have celebrated the achievements of some of Dundee’s creative entrepreneurs in another post on this blog.

Interestingly, we have entrepreneurship going full throttle in two different age groups. Gen Y wants to control its own destiny, and sees start up culture as the indy alternative. This is an enterprise culture that is well analysed and discussed. But far less attention is paid to the enterprising Boomers. The baby boomer generation accounts for over 1.8 million people in Scotland – but 40% of them have yet to save for their retirement. With the corporate and public sectors trying to shed these older more expensive employees, there may well be over one million people financially unprepared for their retirement. Increasingly, we will see baby boomers, retiring into work. For both of these age groups entrepreneurship is driven by both individual and social motivations. From the evidence of this week, Nightriders is meeting the needs of these diverse new enterprise communities.

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Nightriders works by linking business skills together with design thinking, all underpinned by the power of networking. In doing this, it provides a highly refreshing contrast to many business start up programmes that focus purely on business skills for an individual entrepreneur. What was remarkable in Tuesday was witnessing the fearless approach of the Nightriders, presenting ambitious but well thought through proposals.

Too many businesses are simply not designed. They may be planned. They may just happen. But the priority must be to apply the thinking, ideas, methods and tools that we all use every day – those from design and networking – to helping create sustainable enterprise.

There is a considerable challenge we face – particularly in the so-called creative sector. 75% of visual artists in Scotland earn less than £5,000 per year. There are indeed many reasons for this, not surprisingly the over-supply of artists in the first place. But on the evidence of this survey reported on this week in The Scotsman, the vast majority of those working in Scotland’s creative industries do so as hobbyists rather than sustainable entrepreneurs. With the right kind of support, that could fundamentally change. Nightriders represents a new model of support that meets the needs of Scotland’s new enterprise communities.

Invasion of the one person maker enterprises

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Interesting blog post over at the Royal Society of Arts that picks up on recent UK employment data. An edited extract is below.

“New data from the Business Population Estimates highlights a remarkable amount of growth in the number of one-man makers… The population of manufacturing firms with zero employees (i.e. just the owners) has increased by nearly 40 percent over the past 3 years alone, mostly in the last 12 months. By 2013 there were 50,000 more one-man makers than there were in 2010. This stands in stark contrast with the other manufacturing firm sizes, which have all shrunk in number… But what’s causing the boom? One explanation is that the proliferation of 3D printers is finally taking hold…”

OK, if it was me I would have preferred the phrase “one person makers”, but let’s move onto the substantive argument here. There is very little data to go on, but to claim that 3D printers have created 50,000 new one person manufacturing enterprises seems speculative in the extreme. However, I would say that there is something interesting happening and that technology has something to do with it – but enabling it, not causing it.

I’ve made the case before that in our world of Kickstarter, social media, flexible production systems, Amazon, Etsy and the like, then it has never been easier to finance, promote, manufacture and distribute. A recent article in the Harvard Business Review – Economies of Unscale: Why Business Has Never Been Easier for the Little Guy – makes this very case: “in a world with economies of unscale, we are empowered to take advantage of an extensive array of new, amazing services to build sustainable companies.”

From my perspective, one of the most significant aspects of the new enterprise landscape are the opportunities for collaboration and co-operative enterprise. We are not simply witnessing the invasion of a hoard of solo businesses all out for themselves like neo-Thatcherite zombies. In my home city of Dundee, collaborative networks and workspaces like Fleet Collective and Vanilla Ink provide co-operative frameworks that enable and support individual enterprise. And of course we find them throughout the world. Ironically as the UK Co-operative Movement lurches into an ever-worse crisis, so the principles of co-operation are being applied in new and highly relevant ways by a new generation of makers. These new entrepreneurs are not out for themselves. They are out for each other, recognising the value of sharing expertise, skills and celebrations of success. And money.

Kickstarter isn’t driving change – but it’s enabling that change to transform the financing of enterprise, pulling the gift economy into the mainstream. The latest data from Kickstarter suggests this is not trivial finance. To date over $1 billion has been pledged on Kickstarter, and design projects alone have brought in $127 million of support. The success rate for design projects is a remarkable 38%. Kickstarter’s first month of operating in the UK (which is the only data available) shows something else very significant. For US projects, 78% of backers have been from the US and 22% outside of it, yet in the UK 39% of backers have come from within the UK and 61% have come from outside of it. The gift economy transcends immediate family and friends. It transcends the idea of nation. The gift economy is global.

The new making economy is very diverse, and increasingly female. More than half of the 573,000 people who joined the ranks of the self-employed between 2008 and 2013 are women. A new generation of self-employed multi-tasking enterprising mothers have been dubbed mumpreneurs, and are driving change and new patterns of work and childcare in many communities. So, a trivial development perhaps? Well, not trivial when data suggests mumpreneurs contribute £7.4bn to the UK economy each year. Again, this is all tied in to collaboration and mutual support.

Yes, 3D printing does represent an emergent revolution in the world of manufacturing, and this will surely transform opportunities for makers in the years ahead. But it is the far more significant and well established revolution in the world of entrepreneurship that is promoting and sustaining new business in the manufacture of crafted, bespoke and small batch production. In co-working spaces and on kitchen tables people are collaborating and supporting each other to make a living making things. And that collaboration and support is fanning out across the world. It’s an internationalism of making – in the making!