Monthly Archives: November 2013

Micro-entrepreneurs in Collaborative Economies

The traditional ways of the economy have long frustrated those freshly entering the workforce, prompting the creation of “collaborative economies”, a rising movement that strives to “save people time and money through cooperative efforts.”

“AskforTask” is the perfect example of what a collaborative economy is. This is an online marketplace where “askers” request for “taskers” to complete tasks at a negotiated price. Similar to sellers on sites such as Etsy, those who work through AskforTask have been dubbed “micro-entrepreneurs”, who continuously build their personal brand upon job completions.

This method allows one to obtain invaluable work experience and build networks while they continue education or search for a full-time position. Although most enter for financial reasons to begin with, many stay for the human connections they make while doing tasks.

AskforTask Helping Canadians Find Jobs They Love

As a student, entering a collaborative economy or becoming a micro-entrepreneur sounds exceedingly appealing, as I am able to make connections and money while completing school. This article has illuminated a new definition of “entrepreneurs” for me, showing just how fast business sectors adjust to keep up with the changing times as well as the importance of micro-entrepreneurs, something Etsy CEO Chad Dickerson also agrees with.

November 18, 2013Permalink Leave a comment

Need to Pay Tuition? Use Aeroplan Points!

Loyalty programs have always been a method companies utilized to try and keep consumers. This usually consists of collecting points in exchange for free items or “store money” that can be used for the following purchase. The market has been greatly saturated by variety though; consumers are now more perceptive when choosing which programs to join, selecting only those that are relevant.

Aeroplan saw this happening, and in addition to their current base of rewards consisting of flights, charitable donations, song downloads, necklaces, and fondue set, they have now expanded to include tuition with Higher Ed Points Inc.

“This was a category that we hadn’t touched before, and nobody else was playing in that area.” ― Francine Sternthal, Project Management Director, Aeroplan

Although 90% of Canadians belong to at least one loyalty program, this number has decreased from 94% in 2009. Sternthal makes good use of the first-in-the-market advantage, giving Aeroplan an edge at targeting youth with this innovative idea. While Bank of Nova Scotia and Cineplex Inc. have experience success with their SCENE loyalty program for young people, they are not active in the industry, giving Aeroplan even higher chances of success.

The use of tuition as a reward is infinitely more appealing to youths than fondue sets. As a student, I understand the pain of dealing with ever-increasing tuition fees and so I believe that if Higher Ed affiliates with more schools, it will definitely attract a large amount of the young adult consumer base.

November 17, 2013Permalink Leave a comment

App for Brats: a Market to Help Parents

Parenting has always been a tough task, but now parents can take a different approach instead of yelling to get their children to eat their vegetables.

Educational software and related content amount to a stunning $7.8 billion a year in the United States, with schools as the top consuming segment and parents trailing close behind. As such, app-makers have expanded their target markets ― and therefore their products ― to suit parental needs.

The common value proposition all educational apps deliver is “learning made fun”. Innovators have realized by making “dull” activities such as chores, eating healthy, and learning seem like a game, children are more likely to engage in it. In addition, the current generation, bombarded by technology as they are, pays more attention to devices such as iPads and tablets than their parents. Using apps would therefore be the natural solution to dealing with disengaged children.

“A little bit of digital babysitting is absolutely fine. But just like you don’t leave your child totally alone in a real playground; don’t leave them totally alone in the virtual playground.” ―Dr. Kate Highfield, Macquarie University

Parents should not rely wholly on these apps though, as it is vital for them to personally support their child in the growth process. As appealing as it is to obtain free or cheap apps to replace teaching a child math, learning in the real world will better prepare them for the future.

November 17, 2013Permalink Leave a comment

Using One Method on Another: How to Beat the Kickstarter Odds

Often used for start-ups, Kickstarter is “the world’s largest funding platform for creative projects.” It does, however, run on an all-or-nothing policy, meaning $1 off the target amount would cause a project to fail; this has created a failure rate of 56%.

Janice Cheam, co-founder of Energy Aware Technology, knew about this when she considered launching a crowdfunding campaign for new product idea Neurio on Kickstarter.

“Neurio is a home intelligence technology that monitors the power a home uses, and calculates the cost of running individual appliances in real time.”

Cheam knew Neurio would be desirable for homeowners, but was unsure if they would be willing to buy it. Kickstarter allowed her to put the idea out onto the market beforehand so as to gauge consumer interest levels, all the while raising funds for initial manufacturing costs. Keeping the failure rate in mind, Cheam recruited niche bloggers to help promote the brand story before official press releases to the media, effectively planting appeal and information that were waiting to be found once major media outlets learned about Neurio.

Cheam reached her funding goal in half the designated time acquiring almost double the amount, showing how meticulous planning can lead to success. She applied lean-start up methods and put her idea out there to measure market interest, evaluating whether or not further improvements would be needed. This highlights how knowledge in one aspect of business can be applied elsewhere to bring success.

November 17, 2013Permalink Leave a comment

Identity Crisis: What is Etsy now?

Customers and sellers of Etsy, a popular online marketplace for handmade crafts, are enraged by a recently implemented guideline meant to accommodate vendors who have a hard time meeting growing customer demands. The new policy allows sellers to hire employees, outsource shipping and fulfillment, and use manufacturers to produce their designs, all in exchange for transparency regarding the works of the business.

 “Your place to buy and sell all things handmade.” ― Etsy sales pitch

Etsy users complain about the site deviating from their original value proposition and how it is becoming a sales platform for small businesses, essentially losing the ethos that differentiated it from eBay.

Etsy rivals Aftcra and Zibbet jump for joy at the news, as they both advocate a strict definition of handmade. Zibbet even reported increased account registrations on their site after Etsy’s policy announcement.

As online blog Babbage points out, Etsy buyers “seek a sense of authenticity” from the items they purchase on this site. Elizabeth Wayland Barber, however, argues that none of the object we think are “handmade” truly is, as they almost always have manufactured parts (eg, processed thread and yarn).

As it stands, I agree with Barber; “handmade” items today are rarely that. Etsy sellers are simply trying to be more efficient with their sales by using manufactured parts to create their products. What should matter more is the effort and ingenuity used to craft the item; that is my definition of handmade.

How do you define “handmade”?

November 17, 2013Permalink Leave a comment

Corporate Social Responsibility: Now a Law?

6 core areas of CSR

As pointed out by fellow student Vivian Jung, corporate social responsibility (CSR) has become an important factor in the success of a business.

In fact, India has recognized how crucial CSR is by instigating a law mandating its implementation in a company. The 2013 Companies Act requires all companies to direct two percent of average net profits in the three preceding financial years for CSR activities. Firms will have the freedom to select the causes they would like to contribute, and are required to appoint an internal CSR committee within the company. Should they not comply with this law, businesses will have to disclose reasons in books as to why they were unable to fulfill this requirement or face disciplinary actions.

Critics of this law say that pressuring firms to incorporate CSR into their business models will not produce the positive outcomes the Indian government is hoping for. I disagree with this, however, as companies will still be giving positively in some form to fulfill this social commitment, perhaps simply not as effectively or efficiently. A benefit of this law are the openings in employment opportunities for fields like social work and environmental development, as some see CSR equivalent to industrial social work.

November 17, 2013Permalink Leave a comment