LEBANESE ENTREPRENEURSHIP SCENE: IS IT ALL JUST ONE BIG SCAM?

By Mohammad Hijazi

@mhijazi

ENTREPRENEURS?

The profile of a typical Lebanese entrepreneur: Dropped out of college/still student because Zuckerburg did it; no need for a college degree to go places

Can’t find a job; let’s create our own!

Skilled in one area; but lack business knowledge.

Convincing and talkative character

Knows a lot of jargon

Copy international ideas & localize them

GET RICH QUICK?

•Convince investors or crowdfunders to invest

•Use money for:• Higher than average salaries

• Media exposure

• Travelling the world

•No renewable source of money since product/service isn’t produced or improved and no monetization.

•Start-up tanks within 2 years

•Entrepreneur gained living expenses for 1-2 years, got media exposure and recognition, enjoyed a few vacations.

•Investor takes the risk.

MISTAKES?

•Seeking investments without a good product/service or proper monetization plan.

•Hiring unnecessary employees.

•Teammates not compatible.

•Talk and no action.

•Rely solely on free marketing tools.

•Small problems piling up.

START-UP ACCELERATORS?

•Don’t have an original idea to execute

•Organize start-up competitions to get ideas

•Co-working spaces to raise part of the funds

•Hire/Invest good ideas until founders develop them

•Sneaky contracts allow them to bully/fire founders and take over start-ups

•Start-ups fail due to lack of management

•Accelerator organizes events to prove superiority

CROWDFUNDING?

Crowdfunding is the practice of funding a project or venture by raising monetary contributions from a large number of people, typically via the internet.

CROWDFUNDING!

Crowdfunding sounds really cool and hip and fun but let us just call it what it really is…

Begging.

Shaking the electronic cup.

ARE THEY REALLY THE SAME?

A beggar (entrepreneur) looking for charities(crowdfunding) gives them a "promise" that they will return them some prayer (a finished product or service) if the person believes in those things. Begging funds a life (can that be called one form of idea?).

BEGGING?

It just seems more acceptable to beg on the Internet. It feels more professional…

People get away with asking for money far easier on social media than if they asked for it in person.

CROWDFUNDING AS A MARKETING SCHEME

Most companies that pursue crowdfunding campaigns do it primarily for marketing purposes. It’s cheaper to launch a crowdfunding campaign than any other type.

It’s basically a campaign targeted at early adopters, resellers, and the media, which are tuned in to the platform’s activities to begin with.

Add the special innovation ingredient (or angle) to the company’s image for free.

HOW TO SPOT BAD CROWDFUNDING CAMPAIGNS?

•They have given themselves only a few days in which to raise the needed money.

•They appear to be asking for maximum amount that they need.

•Their rewards are flimsy (virtual kisses, big thanks, shout-outs, T-shirts, mugs, Skype consultations).

•No prototype ready.

•Low-budget or no marketing material (videos, website, …)

GENERAL RULE

Think like a bank!

Would I give a loan to this entrepreneur?

ARE YOU AS PESSIMISTIC? Thanks!