GenV Campaigns

The Entrepreneurial Path – Tech4BtrWorld

Posted on 17. May, 2011 by Rob in Technology

Today’s post was written by Tech4BtrWorld campaign intern Lauren Viehbacher

We recently caught up with Ben Lyon, one of Ashoka Youth Venture’s TEDxYSE finalists in November 2010. After graduating from University of Colorado Boulder in 2009, Ben launched FrontLineSMS: Credit, using microfinance technology to help poor communities and families in Sierra Leone. A whirlwind experience and a few years later, he was selected an “Unreasonable Fellow” by the Unreasonable Institute, which is awarded to 25 young social entrepreneurs worldwide for a 10 week fellowship. Ben recently co-founded the organization Kopo Kopo and now lives in Kenya. Read below for more information about Kopo Kopo, and discover advice for becoming an entrepreneur!

Quick background information: What is mobile money?

Mobile money allows people to make payments without dealing with the hassle of cash, checks or credit cards. People can add credit to a mobile account and then use their phone to pay for goods and services. It’s easy, fast, and safe. Given that 75% of the 4 billion mobile phones worldwide are in developing countries, this system is very useful for increasing access to financial services.

Interview questions:

Which social entrepreneur or other public leader inspires you most? Why?

I have tremendous admiration for Ken Banks and Josh Nesbit of FrontlineSMS and Medic Mobile, the two entrepreneurs that took a leap of faith to support me and, ultimately, launch my career. Ken and Josh are the rare kind of people that pour their whole heart into their work and never forget where they came from or where they aspire to go. They know their stuff – and they know they know it – but always treat everyone with dignity and respect and, most fundamentally, always take the time to listen to and learn from others.

How did you decide to take an entrepreneurial career path rather than taking a ‘traditional’ job?

I think the fates conspired to give me no option! I graduated during the recession in 2009 and, despite my best efforts, never managed to land a job. After searching for months, I finally gave up and defiantly thought “I’ll just start my own job”. That decision led to a string of events I can barely recall that, somehow, ended with me responding to these questions from the iHub in Nairobi.

Even though the entrepreneurial path is stressful and uncertain, I’ve never felt happier or more fulfilled. I’m doing something I love and care about and, if successful, might play a small role in improving the lives of millions. That’s all the motivation I need to keep pushing forward.

You’ve been busy since Ashoka Youth Venture’s TEDxYSE event! Tell us about Kopo Kopo and how you became the co-founder.

Kopo Kopo is an organization that provides a software-as-a-service (SaaS) platform for integrating corporate mobile money accounts with microfinance core banking software. I formed Kopo Kopo with Dylan and Tom, our CEO and CTO respectively, because we realized that no one was tackling the integration challenge on a global, systemic basis. We all determined that a non-profit wasn’t the correct vehicle to rise to that challenge, so we decided to form a for-profit entity in order to secure the significant buy-in and resources we would require to succeed.

Since co-founding Kopo Kopo, Dylan and I have moved to Nairobi, Kenya in order to rollout our service throughout East Africa and, eventually, all of Sub-Saharan Africa. We launched in February 2011 and are in the process of negotiating several deals to go to market with a number of microfinance institutions in Kenya and Tanzania.

Ultimately, we aspire to be the preferred mobile money integration platform in Sub-Saharan Africa. To achieve this, we have created a business model that relies on high volume, not high margin, which allows us to offer the most affordable solution on the market. For example, a microfinance institution could either use our service for 12.5 years or pay the installation cost of one of our competitors. We see this approach as key to enabling microfinance institutions large and small to adopt mobile money as a payment channel and, in turn, offer their customers the most convenient, affordable financial services possible.

What is the most significant start-up challenge you’ve faced and what did you learn from the experience?

The most significant challenge is that challenges are countless and unending. I often think of startup life as a rollercoaster ride: some days are incredibly positive and energizing, whereas other days are overwhelmingly stressful and make me question everything. We’re faced with decisions that could lead to phenomenal success or abysmal failure on an almost daily basis. Accordingly, I think the best lesson I’ve learned is to roll with the punches, celebrate every success, assess every failure, and keep forging ahead.
What the benefits and difficulties of using microfinance? How have you tailored its practice to Kopo Kopo?

Even though ‘microfinance’ means different things to different people, our approach allows us to provide a simple, standardized service. For example, a savings and cooperative credit organization (SACCO) with 3,000 members will have similar integration needs to a microfinance institution (MFI) with 60,000 members. Accordingly, we are able to serve a large segment of the market.

You’re now based in Kenya – what are some of the cultural obstacles or joys you have encountered?

Moving to Kenya was one of the best business and personal decisions I’ve ever made. Living in our target market and learning from potential customers is a constant source of energy and inspiration. It makes our efforts tangible.

On a personal note, I love living in Kenya. When one of our investors passed through Nairobi he said “Kenya reminds me of India ten years ago”, which I think hits the nail on the head. East Africa, with Kenya at the helm, is quickly emerging as a global leader in mobile and financial service innovation. It’s definitely the right time in history to be in East Africa.

To be completely honest, the only real challenge I can think of is Nairobi traffic jams!

What is one way that you’ve seen technology contribute to social change?

Mobile money is one of the biggest catalysts of social change in East Africa. For context, over 55% of the adult population in Kenya uses Safaricom M-PESA, over which they transferred the equivalent of 20% of Kenya’s gross domestic product (GDP) in 2010. Mobile money is more affordable and safer than previous alternatives, which has enabled users to decrease transport and opportunity costs and, as a result, increase their household income.

Outside of mobile money, countless IT solutions are driving social change, especially in the political realm. Widely-known platforms like Facebook, Twitter, and YouTube have played key roles in the ‘Arab awakening’ in countries like Bahrain, Egypt, Libya, Saudi Arabia, and Yemen. And lesser-known but equally important platforms like FrontlineSMS and Ushahidi have played key roles in expanding the free-flow of information.

Based on your experiences, what advice would you give to teams launching their first technology-focused social venture?

If you have an idea, go for it. Build it fast. Test it. Let customers tinker with it. Incorporate their feedback. And iterate until you can iterate no more. Before all else, don’t wait until everything’s perfect before jumping in – if you wait until it’s perfect, you’ll never move at all.

For Ashoka Youth Venture and Best Buy Children’s Foundation’s Technology for a Better World campaign which you can check out at www.genvcampaigns.com/ or on facebook at www.facebook.com/YouthVenture