Kick-Starting Business

Posted on September 30, 2013 by corinabizim

Entrepreneurship in Canada is growing, as 98% of all employer businesses in Canada are small businesses, with 1 116 423 registered small businesses in December 2010. What is specifically compelling is how many small businesses, not only in Canada, but all over the world, are using the consumer to fund their projects. Websites like Kickstarter allow potential buyers of a product to contribute money for this product to go into production. New Zealand brothers Doug Barber and Jimmy Hayes have gained considerable popularity from their innovative travel gear on Kickstarter. The response to the desired products gives the small scale entrepreneurs an idea of exactly what consumers want and then go forth to produce just that, simplifying the process of supply and demand. Similarly, San Francisco clothing company BetaBrand has developed a think tank (Try it out! http://www.betabrand.com/think-tank.html) in which customers help develop the designs of the clothing. They then commit to buying the article and if it receives enough funding, BetaBrand will manufacture it and provide a 30% off discount to the customer for committing their funds. With consumers demanding precisely what they desire, this lowers the barrier between buyers and sellers, allowing for increased mutual benefit in the marketplace.

Posted below is Doug and Jimmy’s campaign video for their Kickstarter campaign, in which they really try to connect to their consumers:

http://www.kickstarter.com/projects/minaal/protravel-carry-on-travel-faster-happier-and-more?ref=recommended

Sources:

http://techcrunch.com/2013/09/22/betabrands-new-think-tank-mashes-up-kickstarter-style-fundraising-with-cult-clothing-manufacturing/

http://www.cbc.ca/news/business/10-surprising-stats-about-small-business-in-canada-1.1083238

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11128769

The Consumers are Watching

Posted on September 12, 2013 by corinabizim

In my recent findings of the business world, it appears that businesses and organizations only behave ethically if they are caught having unethical practices. After news of the Sauder rape chants, I made comparisons with businesses, like Joe Fresh Clothing, who similarly suffered in the media after tragic incidents. Employee safety became a prime concern after the collapse of a Bangladesh factory. This issue was only addressed due to negative attention from disturbed consumers, which brings into question whether businesses really care about ethics or are willing to force improvement in order to restore a positive reputation.

Currently, factories are being monitored and Canadian employees of Loblaw Companies Ltd. are meeting with officials in Bangladesh to discuss the legitimacy of labor unions and safety. Loblaw has also created funding for victims of the factory collapse. Doing damage control on the company’s reputation is costly, and this proves that the costs are worth it when consumer concern is involved, but not when overseas worker safety is the initial problem. I think the lesson from this incident is that when consumers are educated about the operations of companies from whom they purchase products, this is when companies have the greatest incentive to behave ethically.