Arguably, two of the most important centers of innovation outside of Silicon Valley are in India and Israel. The reasons of why this is are numerous and could form basis of someone’s PhD thesis but for the purpose of brevity I’ll only highlight one: global from day one.
You talk to entrepreneurs from either India or Israel and they’ll surely weave great yarns about their companies (these are also two great storytelling cultures) but one thread that will be consistent is when the entrepreneur founded their company, they were immediately thinking of the global marketplace.
In Israel, it is because the domestic market is too small and there are limited opportunities to sell regionally. The story in India is that while population is huge, it is very poor so the actual local market for technology or technology services.
Faced with these challenges, Indian and Israeli companies would market to the US and Europe and often place key personnel in those geographies. Overseas became their across the street.
In the past year, Canada has been thrust upon the global stage several times. Whether it is praise for our banking system, our brave forces, our Gold-medaled athletes, or our ability to throw a party, Canada as a country has been seen as a global leader.
Will our entrepreneurs follow suit? Sometimes it seems that cross-cultural expansion from a Canadian perspective is an Alberta company selling into Quebec.
Unfortunately, as often as you hear of grand global ambitions from Israeli, Indian (and American!) entrepreneurs, you hear of relatively modest ambitions from Canadian ones.
All too often global expansion = US expansion. That is not the right formula.
Here’s a fact that is sometimes a bit uncomfortable, many American companies consider Canada as part of their domestic market. The effort and planning these companies put into Canada is the same one they put into Wyoming. (OK, maybe I’m overstating the point)
But here’s a suggestion, we should return the favor. Canadian companies shouldn’t think of the US as a “global” market but rather just an extension of the domestic one. When Canadian companies say global, they should mean it and have Asia, Latin America, the Middle East and Africa dead in their sights. These regions all have burgeoning and tech-savvy populations and are eager to get online.
So whether we’re talking about consumer, enterprise, SMB or SP services or products, let’s see Canadian entrepreneurs putting the “world” into their WorldWideWeb plans. Canada’s got the world stage for the moment. Entrepreneurs, make your entrance.
Indians and Israelis have a culture of travel. Go to any nation and there's a community of indians. Israel is a nation born out of immigrants.
I find Canadians do not travel or move as often as Indians or Israelis.
So that might be why Canadian entrepreneurs do not think global
I cannot think of one startup I have worked with that did not consider the US its primary domestic market. I caution, however, expansion plans beyond that. Too often startups try to expand in many countries, even localizing their service in other languages, when they have 0.000000001% of the addressable market in the US & Canada. Build a big base in N. America before getting distracted with other markets.
Indians and Israelis have a culture of travel. Go to any nation and there’s a community of indians. Israel is a nation born out of immigrants.
I find Canadians do not travel or move as often as Indians or Israelis.
So that might be why Canadian entrepreneurs do not think global
I cannot think of one startup I have worked with that did not consider the US its primary domestic market. I caution, however, expansion plans beyond that. Too often startups try to expand in many countries, even localizing their service in other languages, when they have 0.000000001% of the addressable market in the US & Canada. Build a big base in N. America before getting distracted with other markets.
I agree with what you're saying. While most of my customers are in the U.S., I have considered reaching the U.S. to be not a big deal; my goal is to build a truly international clientele that includes at least customers in Europe and the U.K., if not beyond. Further diversification is a better way to absorb localized fluctuations in economies.
If I may, I would like to add some nuance to your article. Looking at Canada and the U.S. as “domestic” and everything else as “international” probably does not do justice to those companies that are successfully reaching outside their own borders, be they municipal, regional, provincial, or national. I like to think of the problem as importing wealth. As a Halifax-based business, I do a disservice to my city if I have only Halifax-based customers. I am drawing from the wealth of the city to create my own. With every transaction there is loss (taxes, overhead) the overall wealth of the city decreases. However, as I gain customers outside my city's borders (and my province's, etc.) I am increasing the wealth of the city. Every dollar earned by my business from customers outside Halifax is a dollar of wealth for my city. Every dollar from outside Nova Scotia is a dollar that did not exist previously for my province. Every dollar from outside Canada is a dollar for my country, and on and on. The more dollars I can bring in from further afield, the more the quality of life for everyone around me is improved.
Thus, while looking to the U.S. is really just “domestic”, it is still wealth-growing for our nation, and should absolutely be celebrated. Better even, if we are able to grow the North American economy.
Suggesting that Canadian companies don't have ambitions that extend beyond the North American borders is demeaning. I think many Canadian entrepreneurs do think globally, but understand that growing internationally needs to carefully planned.
The obvious first market for most Canadian ventures should be the US, given its size, language, timezone, relative ease-of-entry, etc. I agree with Mark (startupcfo) that it is a mistake for many companies to incur the cost of internationalization of their products & services when they have yet to establish a meaningful share of the North American market.
Ron, your argument states that Indian and Israeli companies consider global markets from day one because their domestic markets are insufficiently lucrative. That simply does not apply here. With a very significant and accessible market at our doorstep, it would be imprudent for an entrepreneur not to start with the low-hanging fruit.
I agree with what you’re saying. While most of my customers are in the U.S., I have considered reaching the U.S. to be not a big deal; my goal is to build a truly international clientele that includes at least customers in Europe and the U.K., if not beyond. Further diversification is a better way to absorb localized fluctuations in economies.
If I may, I would like to add some nuance to your article. Looking at Canada and the U.S. as “domestic” and everything else as “international” probably does not do justice to those companies that are successfully reaching outside their own borders, be they municipal, regional, provincial, or national. I like to think of the problem as importing wealth. As a Halifax-based business, I do a disservice to my city if I have only Halifax-based customers. I am drawing from the wealth of the city to create my own. With every transaction there is loss (taxes, overhead) the overall wealth of the city decreases. However, as I gain customers outside my city’s borders (and my province’s, etc.) I am increasing the wealth of the city. Every dollar earned by my business from customers outside Halifax is a dollar of wealth for my city. Every dollar from outside Nova Scotia is a dollar that did not exist previously for my province. Every dollar from outside Canada is a dollar for my country, and on and on. The more dollars I can bring in from further afield, the more the quality of life for everyone around me is improved.
Thus, while looking to the U.S. is really just “domestic”, it is still wealth-growing for our nation, and should absolutely be celebrated. Better even, if we are able to grow the North American economy.
Suggesting that Canadian companies don’t have ambitions that extend beyond the North American borders is demeaning. I think many Canadian entrepreneurs do think globally, but understand that growing internationally needs to carefully planned.
The obvious first market for most Canadian ventures should be the US, given its size, language, timezone, relative ease-of-entry, etc. I agree with Mark (startupcfo) that it is a mistake for many companies to incur the cost of internationalization of their products & services when they have yet to establish a meaningful share of the North American market.
Ron, your argument states that Indian and Israeli companies consider global markets from day one because their domestic markets are insufficiently lucrative. That simply does not apply here. With a very significant and accessible market at our doorstep, it would be imprudent for an entrepreneur not to start with the low-hanging fruit.
Without question Canadian startups must think globally and almost always consider the US their domestic market. At the same time, following certain principles of the lean movement, finding that product market fit quickly and cost effectively can also be done locally with consideration for wider markets. As previous comments have already mentioned, the “domestic” market for Canadian startups is substantial and diverse and it is important not to stretch resources too thin early on. Going global must be well thought out and well timed to be successful. Even if product market fit is developed with a global mindset, the channels to reach global markets are quite different and often require local partners. As Canadians, we are lucky to have such a huge domestic market to gain momentum to go global.
Without question Canadian startups must think globally and almost always consider the US their domestic market. At the same time, following certain principles of the lean movement, finding that product market fit quickly and cost effectively can also be done locally with consideration for wider markets. As previous comments have already mentioned, the “domestic” market for Canadian startups is substantial and diverse and it is important not to stretch resources too thin early on. Going global must be well thought out and well timed to be successful. Even if product market fit is developed with a global mindset, the channels to reach global markets are quite different and often require local partners. As Canadians, we are lucky to have such a huge domestic market to gain momentum to go global.
Of course, when the time is right, Canadian entrepreneurs might want to focus their global expansion plans on the 350 million Chinese that have broadband access, or the 233 million with cell phones! http://ht.ly/2biO7
Risk-return profile?
Paul,
You are assuming that what you are producing is not profiting your clients. If you make something for a law firm in Halifax that allows it to be more profitable than you just created wealth for your city.
Only indirectly, and only if that law firm is bring in clients from outside the city. For me this doesn't count. It's little better than someone from Lunenburg buying a coffee in Halifax. For me the win is if the Halifax-based coffee shop starts a chain and opens a franchise in Lunenburg. For my metric, real cash must enter a city/region from outside that region for wealth to be increased. And for my measure of success, it must be my company building that wealth, not providing the tools for another company to build wealth. That is, direct wealth, rather than indirect wealth.
Please don't misunderstand. I value all business, including that which is locally focused. I honour those who take the risk and start their own business. For the sake of those businesses, I try to buy locally so that I can share the wealth that I bring in, rather than hoarding it.
Of course, when the time is right, Canadian entrepreneurs might want to focus their global expansion plans on the 350 million Chinese that have broadband access, or the 233 million with cell phones! http://ht.ly/2biO7nnRisk-return profile?
Of course, when the time is right, Canadian entrepreneurs might want to focus their global expansion plans on the 350 million Chinese that have broadband access, or the 233 million with cell phones! http://ht.ly/2biO7
Risk-return profile?
Paul, nYou are assuming that what you are producing is not profiting your clients. If you make something for a law firm in Halifax that allows it to be more profitable than you just created wealth for your city.
Paul,
You are assuming that what you are producing is not profiting your clients. If you make something for a law firm in Halifax that allows it to be more profitable than you just created wealth for your city.
Only indirectly, and only if that law firm is bring in clients from outside the city. For me this doesn’t count. It’s little better than someone from Lunenburg buying a coffee in Halifax. For me the win is if the Halifax-based coffee shop starts a chain and opens a franchise in Lunenburg. For my metric, real cash must enter a city/region from outside that region for wealth to be increased. And for my measure of success, it must be my company building that wealth, not providing the tools for another company to build wealth. That is, direct wealth, rather than indirect wealth.nnPlease don’t misunderstand. I value all business, including that which is locally focused. I honour those who take the risk and start their own business. For the sake of those businesses, I try to buy locally so that I can share the wealth that I bring in, rather than hoarding it.n
Only indirectly, and only if that law firm is bring in clients from outside the city. For me this doesn’t count. It’s little better than someone from Lunenburg buying a coffee in Halifax. For me the win is if the Halifax-based coffee shop starts a chain and opens a franchise in Lunenburg. For my metric, real cash must enter a city/region from outside that region for wealth to be increased. And for my measure of success, it must be my company building that wealth, not providing the tools for another company to build wealth. That is, direct wealth, rather than indirect wealth.
Please don’t misunderstand. I value all business, including that which is locally focused. I honour those who take the risk and start their own business. For the sake of those businesses, I try to buy locally so that I can share the wealth that I bring in, rather than hoarding it.