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by David Currie

October 16, 2014

Entrepreneurs from Korea have often lacked the success of their American counterparts, but that could change very quickly. The nation is filled with what Jay Eum, co-founder and managing director of TransLink Capital, called “the most tenacious people.” He argued that conditions are set for startups to quickly prosper, both domestically and abroad.

Joining Mr. Eum at the 15th  Annual World Knowledge Forum in Seoul, Korea, were Jason Portnoy, founding partner of Subtraction Capital, and Dave McClure, founding partner of 500 Startups. The group discussed how entrepreneurs can succeed globally and in the Korean market.

The panel discussed how government regulations and culture have had a damaging effect on the entrepreneurial spirit in Korea.

“Bankruptcy laws made it harder [for entrepreneurs] to take risks,” Mr. Portnoy noted. “There needs to be more tolerance for failure.”

Mr. McClure agreed that the competitiveness of Korean culture is working against them.

“It is hard for Koreans to make mistakes knowing that others are always watching them. They are worried about taking risks and failing,” he said.

But the nature of competition within Korea is not without its benefits. The competitiveness in the education system has enabled many young Koreans to speak English fluently.

“This skill is necessary for an entrepreneur when going global,” mentioned Mr. Eum.

While the spirit of entrepreneurship may be lacking, the spirit of feeding off the success of others is alive and well.

“If they can do it, why not me?” said Mr. Portnoy, attempting to illustrate the attitude of Korean entrepreneurs. But he offered caution to this, saying that some startups fail because they cannot all achieve the same results.

“Trying to copy others and do the same is a massive waste of time,” he added.

While this theme of replicating others leaves something to be desired, Korea has quickly become a market that is tech-savvy and educated.

“If you build a company or product that can be quickly adopted by this country, you could grow very quickly,” Mr. Eum pointed out.

Mr. Eum also emphasized the necessity for understanding one’s own domestic market before moving abroad.

“If you can’t win in your home market, there is no chance you will win abroad. Once you dominate Korean domestically, you can come out to the rest of the world and win,” he explained.

The panelists made it clear that achieving this success is no easy task, but rather a long and difficult journey that few survive. Mr. McClure and Mr. Eum agreed that it is necessary for a business to understand the needs of the market, and knowing how to best fill those needs will result in a successful venture.

“The best way to do this is to make a small amount of progress, consistently,” Mr. Portnoy reasoned. Contributing to this, Mr. Eum said there is a need to focus on one’s own venture and not be distracted by competition.

“Without doing this, your venture will not be a success,” said Mr. Eum.

Speaking from experience, Mr. Eum clarified that venture capitalists focus much more on a company’s strategy than their finances and other operations.

“Venture capitalists look to fill gaps in their technology and product road maps and find companies that they can work with to get into new business areas that they are moving into,” he said.

Korean startups have been dramatically unsuccessful in the United States compared to neighboring countries in Southeast Asia. They should build off of the success of past Korean companies that have entered these Asian markets, as they will be much more successful, Mr. Eum asserted. It is after this point of expansion that entrepreneurs should look to the United States for further growth opportunities.

by David Currie

October 15, 2014

Success is not always easy to achieve, and defining it can be a challenge. Mr. Pindar Wong,  Chairman of Consultancy at VeriFi Limited, attempted to do so during a roundtable discussion at the 2014 World Knowledge Forum in Seoul, Korea.

“It is one’s determination to succeed no matter what,” Mr. Wong said, that is the key. But the question, he said, is where to focus such determination, as the world is now in a transformational state that is creating new jobs and industries at an accelerating rate. 

Mr. Wong was joined by Mrs. Noni Sri Ayati Purnomo, President Director and CEO of Blue Bird Group Holding, Dr. Tetsuo Ochi, managing partner & CEO of MCP Asset Management Co. Ltd. and Mr. Xiaozhong Yang, Vice President of Trina Solar, to discuss a blueprint for success in Asia.

Currently, larger companies are earning most of the profits in Asia. But Mr. Wong said that such companies act as “big ships,” which are difficult to turn in the seas of constant change. Mrs. Purnomo added that smaller ships, or startups, are necessary for Asia to prosper in the future, yet they must have a strong corporate culture to continue to succeed as they grow.

Unfortunately, the panelists noted, Asia is struggling with innovation, most notably in the technology sector, while nations like the United States are currently thriving.

Addressing a group of students from the Hong Kong University of Science and Technology, Mr. Wong said, “The jobs you think you want to go into might not even exist now.”

“Asia is building the wrong kind of ecosystem,” he continued, adding that no one is willing to finance the risk of startups that can potentially offer substantial returns.

Mrs. Purnomo offered that Asia benefits from having a very tolerant and communal culture, but lacks the ambition of Western cultures.

“Women are most limited by themselves,” she said, explaining a common struggle to achieve signifiant prosperity due to a lack of confidence and the ability to be assertive.

To overcome this, Dr. Ochi reasoned that one must not be afraid to fail.

“It’s a shame when one fails, but it does not kill character, desire or hope. One needs to appraise himself,” he said.

This appraisal will help to determine strengths and weaknesses, which is necessary to achieve success, Mr. Yang validated.

“Failure is the mother of success,” Mr. Yang added. In the investing world, he explained that venture capitalists often seek entrepreneurs who have already failed twice. This individual was referred to as “a third time person,” which Mr. Yang said is a positive characteristic in an entrepreneur, as they have a better perspective on how to achieve success and how to measure risk, two qualities necessary for a good investment.

Touching on different ideas of success in Asia, Mr. Wong stated that parents in Hong Kong

typically do not want their children to become entrepreneurs. They would prefer them to have a safe and reliable occupation, such as a doctor or engineer, rather than taking risks on starting a business. Mr. Wong, on the other hand, has a much different parenting style.

“I want [my children] to fail early and often, as it is not failure if one learns from it and innovates from it,” he said.

Innovation in Asia also has much to do with the cultures each new business grows within. Mr. Yang expressed that companies must have respect for other companies and other regions they want to do business with. Without this understanding and mutual respect, a company’s culture can be misaligned with the local culture and business will suffer.

“Adaption is necessary for survival,” Mrs. Purnomo said, agreeing with her co-panelist.

She stressed that as new prosperous companies in Asia begin to accelerate their growth, a choice must be made to maintain success: losing corporate culture or slowing down growth. This adds to Mrs. Purnomo’s advice that companies need to know its own capabilities to be successful. Without this knowledge, she said, it can become lost and business will deteriorate.

The panel concluded on a positive note, with all speakers confirming that there is always a chance for success, no matter how unpredictable the future may be.