The Value Creators Podcast Episode #34. David Kong’s Entrepreneurial Voyage from Finance to Fine Glassware

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David Kong discusses his transition from Finance to Entrepreneurship and the process of building a supply chain for a product with exclusive features, such as thin, and handcrafted glasses. He explains how he searched for manufacturers, tested samples, and addressed production issues. Despite challenges with finding warehouses and improving packaging, Kong emphasizes the importance of creating value for customers. He shares insights on the emotional value of Glasvin stemware, its impact on the drinking experience, and the evolution of consumer preferences in the wine industry. Additionally, Kong discusses his direct-to-consumer (DTC) model, marketing strategies, and the significance of inbound sales for Glasvin.

Throughout the conversation, Kong underscores the value of efficient operations, strategic partnerships, and customer-centric approaches in building and scaling a successful business like Glasvin.

Resources: 

Database and Analytics company: SOMM.AI
Glasvin (Manufacturing company)
David Kong on LinkedIn

Shownotes:

0:00 | Intro: Origin Story and Entrepreneurial Mindset
02:12 | Origin Story and Entrepreneurial Mindset
05:05 | Idea of Somm.AI Came From Experience
06:19 | How Did Personal Interest Evolve into a Business?
09:18 | Value Proposition for B2B Users: Benefits and Analytics
10:47 | Big Claim: Largest Updated or Updating Database of its Kind
12:49 | Attracting High-Price Point Luxury Wines
13:43 | Global Database
14:28 | Glasvin: Origin Story
19:07 | Building a Supply Chain
23:03 | What’s The Emotional Value of Glasvin?
25:36 | Evolution of Desired Experiences is Fascinating
27:26 | How Did Packaging Evolve
29:25 | Direct-To-Consumer Model
30:44 | B2B Business: Selling to Business Customers
34:45 | Conferences: Getting in Touch with Restaurants
37:53 | Wrap-Up

Knowledge Capsule

Origin of Somm.AI (Wine List Aggregator):

  • Initially conceived as a personal tool to find rare wines.
  • Evolved into a software business after experiencing success with user engagement.
  • Adapted business model from B2C to B2B due to changing market conditions and opportunities.

Value Proposition for B2B Users:

  • Offers benchmarking capabilities for restaurants to assess performance and competition.
  • Provides analytics and insights to identify trends and target opportunities in the market.

Market Dynamics and Competition:

  • David Kong shares that Somm.Ai targets on-premise wine data, serving a niche yet valuable segment.
  • Faces competition from established players like Nielsen but focuses on unique data sets and pricing strategies.
  • Recognizes challenges in entering the market due to technical complexities and limited entrepreneurial interest.

Global Reach and Expansion:

  • Capable of expanding database globally based on client demand.
  • Acknowledges regional variations in wine list availability and penetration rates.

Transition to Glasvin (Glassware Business):

  • Explored entrepreneurship opportunities beyond software due to the time-to-revenue constraints.
  • David shares how he identified the market gap in affordable, high-quality wine glasses and opted to start his own brand, leveraging importing experience and existing demand.

Challenges and Opportunities in E-commerce:

  • David Kong recognized e-commerce as a viable business model with the potential for success.
  • Found opportunities to offer quality products at competitive prices.
  • Successfully launched Glasvin as an e-commerce venture in 2020, capitalizing on market demand and personal interest in wine accessories.

Product Development and Supply Chain:

  • David reached out to multiple manufacturers via email to find one willing to produce the desired glasses.
  • The process involved requesting samples, evaluating quality, and addressing production issues.
  • David shares the initial challenges included finding manufacturers capable of meeting specific criteria, such as glass thickness and weight.

Value Creation and Marketing:

  • David emphasizes creating value for customers through product quality and pricing.
  • Packaging and branding were initially less polished but did not hinder sales due to the product’s perceived value.
  • David Kong’s primary focus was on enhancing the drinking experience, making wine taste better with thinner glasses.

Direct-to-Consumer (DTC) Model:

  • Glasvin sells primarily through its own website powered by Shopify.
  • The decision was made not to sell on Amazon due to potential mismatches with the target customer base.
  • Inbound sales, driven by word-of-mouth referrals and brand reputation, are a significant aspect of Glasvinl’s sales strategy.

Restaurant Sales:

  • Glasvinl targets restaurants as a marketing channel, gaining exposure and credibility through partnerships with prestigious events like La Paulée.
  • The company provides glasses for rental at events, leveraging its association with high-profile wineries and events to expand its reach.

Evolution of Business Opportunities:

  • Participation in La Paulée led to the development of a rental program for the glasses, diversifying revenue streams beyond direct sales.
  • David identifies market gaps and opportunities, such as the demand for alternatives to Zalto glasses, and offers tailored solutions to meet customer needs.

Future Growth:

  • Despite current success, David emphasizes the importance of continuous adaptation and improvement to drive future growth.
  • The pursuit of growth involves remaining competitive, evolving the business model, and meeting evolving customer demands.

The Value Creators Podcast Episode #33 Mike DeKock on Building Competitive Advantage

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How do the value creation principles of subjective value, entrepreneurship and creativity apply in a highly technical rules-based environment like SOC Compliance audits. These are objective validations of data security measures based on customer-defined criteria similar to traditional financial audits but more specific and subjective.

The answer lies in the understanding of customer needs. Mike DeKock, CEO of MJD Advisors, an SOC auditing firm, has the insight: the customer seeks confidence – a feeling that they can approach their own clients with the assurance of providing the data security that they demand. Trust, reliability and commitment are the underlying values – emerging from technological rigor, at a much higher level of human need.

Mike discusses the evolution of compliance services and the changing landscape within the industry, and explains the importance of continuous compliance and how his company aims to provide ongoing support and guidance to clients throughout the year, for continuing reinforcement of the client’s feeling of confidence.

He recognizes the value of building relationships with clients, helping them navigate compliance challenges, and fostering organizational improvement. He sees value in creativity, curiosity and collaboration, and the need for continuous learning and adaptability in a rapidly changing industry. At MJD Advisors, there is a passion for helping clients find simple solutions to complex problems, emphasizing the satisfaction derived from making a meaningful difference in their businesses.

Resources: 

MJD Advisors: mjd.cpa
Mike DeKock on LinkedIn: https://www.linkedin.com/in/mike-dekock-7325a654/

Shownotes:


0:00 | Intro
02:13 | SOC Compliance: Mike Shares His Business Field Growth Journey
03:21 | Regulatory Audit Requirement is Optional
05:09 | Client’s Confidence is Subjective Essence
07:51 | Value Proposition
10:08 | Confidence Area: Empathy-Driven Insight into Client Needs
12:09 | Confidence Meter: How to Measure it? 
13:49 | Trust Measurement
15:16 | Data Security
18:05 | Business Model: Client-Centric Excellence 
20:01 | Trust and Confidence: Some Companies View Audits as Mere Costs
22:08 | MJD Advisors: Exceeding Client’s Expectations 
23:07 | Hiring: Interesting People VS Hard Stats
25:27 | Helping Clients Find Simple Solutions to Complex Problems
27:32 | Future Unpredictability Adds Complexity
29:20 | Entrepreneurial Ethic
30:40 | Wrap-Up

Knowledge Capsulse:

Importance and Application of SOC Compliance:

  • SOC Compliance is a customer-driven business: the regulatory audit requirement is optional but often required by larger enterprises during due diligence processes both internally and on suppliers.
  • SOC Compliance is commonly used by small growing startup software companies to meet enterprise needs – required to cross an eligibility threshold.
  • The field of SOC Compliance is constantly changing as a result of increased awareness and education about data security.

Focus on Providing Confidence to Clients:

  • Mike emphasizes that the continuous compliance approach helps clients navigate compliance challenges.
  • Building trust and relationships through understanding and solving client needs.
  • Any company in a supplier relationship can act with confidence in communicating the robustness of their own systems.

Measuring Success and Impact:

  • There are challenges in quantifying subjective values like confidence and trust.
  • Success is measured through client feedback, reviews, and business outcomes.

Impact on Client Image and Credibility:

  • Compliance reports serve as a mark of approval and credibility.
  • Mike DeKock shares that firms can build credibility and reputation through compliance efforts.

Tremendous Growth in Compliance Space:

  • Compliance tools and support for initiatives have become more accessible and affordable. Previously, smaller companies couldn’t afford compliance measures, but now it’s more feasible.
  • Raises expectations and sets accountability throughout organizations, providing various benefits to the ecosystem.

Business Model Approach:

  • The approach focuses on becoming an extension of the client’s compliance team.
  • Embraces a continuous compliance approach throughout the year, providing guidance and assistance

Complex Problems Simplified:

  • Mike shares how his company celebrates the beauty of simplicity in solving complex problems and how they help clients find simple solutions to complex problems.
  • At MJD Advisors, a collaborative approach is used, focusing on asking probing questions and learning from clients.
  • Compliance is a shared process.

The Value Creators Podcast Episode #32. Jeff Amerine on Entrepreneurial Ecosystems

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Jeff Amerine and Hunter Hastings, discuss the detailed process of building startup ecosystems and fostering entrepreneurship. Jeff Amerine, emphasizes the role of entrepreneurs in spearheading ecosystem development, suggesting that successful ecosystems are entrepreneur-led initiatives. 

Leveraging available tools and resources, including AI and cloud computing services, has democratized entrepreneurship, making it more accessible and efficient than ever before. Jeff highlights the significance of engaging universities in the ecosystem, tapping into the talent pool of students, and fostering an entrepreneurial mindset from an early stage.

Despite the challenges of scalability and trust-building, Jeff discusses the expansion of his organization’s footprint beyond Arkansas, aiming to bridge international venture ecosystems. The long-term commitment required for ecosystem development, emphasizes the transformative potential of entrepreneurship in driving economic growth and societal change.

Resources: 

Startup Junkies Consulting Website: startupjunkie.org

Startup Junkies Book: creatingstartupjunkies.com

Show Notes:

0:00 | Intro
02:31 | How Jeff Defines Enterpreneurship?
03:55 | Entrepreneurial Ecosystem: 4 Pillars
06:53 | Entrepreneurship Not Only a Mindset But Also a Talent 
08:34 | Cultural Perspective: Assessing Startup Ecosystem Readiness
13:40 | Capital is Hard to Break into for Startup Ecosystems: Capital Pillar
15:58 | Early Capitalism: Self-Funded Growth
16:32 | Community Engagement: Local Bank Support for Startups
18:58 | Startup Junkies Could Be Economic Developers
20:40 | Access to AI Tools Simplifies Startup Initiation
22:12 | Universities Play a Vital Role in Startup Ecosystems
24:33 | Operational Side of Entrepreneurial Support Organization
27:18 | Funding Process and Events
30:19 | Networking Defined 
32:45 | Time: Sow Seeds, Be Patient
36:05 | Systemize OR Stay Entrepreneurial?
38:00 | Wrap Up

Knowledge Capsule

Entrepreneurship as a Mindset:

Jeff Amerine shares his views that entrepreneurship is a mindset that prioritizes problem-solving and a propensity to challenge the status quo. It transcends stereotypes and focuses on individuals who see challenges as opportunities and are driven to innovate and create change.

Pillars of an Ecosystem:

  • Talent: Cultivating entrepreneurial talent through education and training.
  • Capital: Ensuring access to funding at all stages of venture development.
  • Culture: Fostering an entrepreneurial culture through events and engagement.
  • Community Engagement: Involving various stakeholders for support and collaboration.

Catalysts for Cultural Change:

  • Investors and leaders play a pivotal role in driving cultural change by investing in and supporting aspiring entrepreneurs. Their belief in the potential of entrepreneurial talent and willingness to take risks contribute to creating an environment conducive to innovation and growth.
  • Investing in visionary entrepreneurs involves providing financial resources, mentorship, and guidance to promising ventures. This approach fosters a culture of entrepreneurship by empowering individuals to pursue their ideas and realize their potential.

Capital Accessibility for Startups:

  • Challenges in Accessing Capital:

Many small or local entrepreneurial ecosystems struggle to access capital.

Traditional banking options like local branches of larger banks often need more support.

  • Diverse Funding Sources:

Startups rely on a variety of sources such as angel investors, friends and family, and government grants.

Non-dilutive funding options like Small Business Innovation Research (SBIR) awards offer alternatives to traditional venture capital.

 Early Capitalism for Business Growth:

  • Jeff emphasizes that we need to shift our thinking and build businesses through customer revenue rather than solely relying on venture capital. 
  • Jeff encourages exploring professional services and securing revenue traction before pursuing large-scale platform development.

Community Engagement and Networking:

  • Community events like startup crawls and networking gatherings facilitate connections and collaborations.
  • Events provide platforms for creative collisions and idea exchange among entrepreneurs and stakeholders.
  • Jeff advises that we need to engage large corporations involving targeted efforts to demonstrate the benefits of engagement, such as mentoring and knowledge sharing.

Impact of Technology and Universities:

  • Technological Advancements:

Democratization of tools and resources, such as AI and cloud computing, lowers barriers to entry for startups.

Access to flexible teams and efficient AI-driven processes enhances productivity and innovation.

  • University Engagement:

Universities serve as vital sources of talent, education, and entrepreneurial support.

Entrepreneurial programs, accelerators, and partnerships with universities foster innovation and provide resources for aspiring entrepreneurs.

The Value Creators Podcast Episode #31. Christian Sandstrom: How Entrepreneurial Initiatives Beat Government-Backed Missions

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In this episode of the Value Creators Podcast, dive deep into the classic battle between market-driven innovation and centrally planned industrial policy with our esteemed guest, Christian Sandstrom, a leading voice for individualism and free-market solutions and author and professor at Jönköping International Business School and the Ratio Institute in Sweden.

In this conversation, we unpack the government’s grand “moonshots” and “missions” which claim to solve societal challenges but always miss the mark due to bureaucratic inefficiency and a central planning approach that negates the potential of market dynamics.

Learn why centralized missions such as the cancer moonshot or the war on homelessness can become drains on public funds while failing to deliver meaningful progress, and the importance of fostering an entrepreneurial society where markets create value and select the best solutions organically, rather than imposing ‘one-size-fits-all’ government-led directives.

This episode is a treasure trove for anyone interested in the interplay between innovation, the economy, policy, and technological advancement!

Resources:

Christian Sandstrom’s Books:
Moonshots and the New Industrial Policy
Questioning the Entrepreneurial State

Episodes Mentioned:
Christian Sandström: Why Governments Can’t Act Entrepreneurially

Show notes:

0:00 | Intro
03:09 | Mission Economy: MOIP
05:16 | Attraction Perspective: Is the Mission Economy Same for all Governments?
06:33 | Book: Behavior of Economics
08:26 | Three Broad Headings: Sequence
10:50 | Public Intellectuals: These Are Not Serious Economists, These Are Celebrities
13:48 | Empirical Evidence Defined
17:04 | Apollo Mission: Examples
19:20 | Example: Home Building Challenge
21:07 | Alternative: Aim for Entrepreneurial Society 
27:26 | Challenge: Separating the Entrepreneurial Component from the Bureaucratic Government Entangle Component 
29:46 | Technology Can Decentralize Economic Activities
31:33 | Moral Beliefs and Imperatives 
34:04 | Entrepreneur Ecosystem
36:13 | Books Campaigns: Spreading Word Beyond Books
39:40 | Wrap up: Christian is Optimist OR Not?

Knowledge Capsule:

  1. Entrepreneurial Society vs. Mission Economy:
    • Societal goals are achieved when Individuals take personal responsibility,, translating abstract ideas into actionable steps.
    • Decentralized, bottom-up approaches are always superior to top-down, government-driven solutions.
    • Professor Sandstrom advocates for minimizing government restrictions and regulations to allow markets to evolve and find solutions organically.
  2. Challenges with Mission-Oriented Policies:
    • Complex problems (sometimes called “wicked problems”) can’t be solved by government-led missions.
    • They require decentralized, collaborative solutions rather than centralized control.
    • There is always the problem of government officials pursuing self-interest or being influenced by interest groups, leading to inefficient and muddled outcomes.
    • Mission-oriented policies can distort competition, neglect opportunity costs, and fail to address root causes of issues.
  3. Empirical Evidence Against Mission-Oriented Policies:
    • Historical case studies and literature review show limited success and unintended consequences of mission-oriented policies.
    • Examples like the Apollo program and the atomic bomb highlight engineering successes rather than entrepreneurial ones.
    • Such policies often fail to address systemic issues effectively, such as homelessness or economic revitalization.
  4. Role of Public Intellectuals and Behavioral Economics:
    • Public intellectuals often simplify complex economic concepts, leading to oversimplified policy prescriptions.
    • Behavioral economics can criticize markets but sometimes overlooks biases and inefficiencies in government decision-making.
    • There is a need for a more nuanced understanding of economic principles and policy implications.
  5. Alternative: Entrepreneurial Ecosystem and Technological Advancements:
    • Technological advancements enable smaller-scale entrepreneurship and decentralized economic activities.
    • Focus on building collaborative, complementary networks across firms and technologies for innovation.
    • Markets are seen as collaborative ecosystems rather than purely competitive arenas, emphasizing the role of cooperation and innovation in achieving great outcomes.
  6. Moral Beliefs and Imperatives in Policy Making:
    • Public perception often drives policy decisions, creating what are seen as moral imperatives for government action.
    • Balancing these supposed moral imperatives with practical, market-driven solutions is crucial for effective policy making.
    • Need to consider unintended consequences and trade-offs of policies driven by moral beliefs.
  7. Optimism for the Future:
    • Despite challenges, there is optimism that technology and entrepreneurial ecosystems can drive positive change.
    • Global interconnectedness and creativity offer opportunities for entrepreneurial solutions to societal challenges.
    • The potential for decentralized, collaborative problem-solving gives hope for addressing complex societal issues more effectively.

The Value Creators Podcast Episode #30. Kartik Gada: The Impact Of AI on Entrepreneurship

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Hunter Hastings and Kartik Gada discuss the transformative dynamics of the digital economy and its profound implications for society, economics, and governance. Kartik Gada provides a compelling analysis of how the exponential growth of the high-tech sector is reshaping traditional notions of supply, demand, and pricing, highlighting the unique characteristics of digital goods that defy conventional economic models

Through a deep dive into the future of taxation, entrepreneurship, and individual specialization, they explore the disruptive potential of AI and automation in revolutionizing the way we work, create value, and interact with the economy. Kartik emphasizes the significance of cybersecurity and ethical considerations in the digital age, and the use of technology to ensure fairness and safety for all participants.

Resources:

Book: ATOM: It is time to upgrade the economy
ATOM on YouTube
Kartik Gada on LinkedIn

Knowledge Capsule:

Kartik Gada is a futurist. He analyzes current and past data and trends to forecast what will happen in the future, and he has built a formidable track record. He joined The Value Creators podcast to talk about the future of entrepreneurships, of economics and of government.’

We are living in an era of ever-expanding entrepreneurship

  • Technological disruption creates new opportunities for entrepreneurs.
  • The only profession that never gets displaced by technological disruption is entrepreneurship.
  • What makes a human redundant for a certain task is, simultaneously, free money for the entrepreneur.
  • Automation makes revenue streams cheaper to generate for entrepreneurs, increasing the profitability of entrepreneurial activity.

Entrepreneurship should win out and result in a more decentralized economy, less dominated by big business – but government gets in the way.

  • The first principles of the accelerating technological disruption (Kartik calls it ATOM – the accelerating technonomic medium) are in favor of entrepreneurship.
  • But nation states are a countervailing force – a cartel of governance that doesn’t want to give up power.
  • Big corporations find it easier to enter into protection agreements with governments (e.g. vis lobbying for favorable legislation) rather than undertake open competition.
  • The switch from centralization to decentralized entrepreneurship will be turbulent as a consequence.

Accelerating technology favors the emergence of new business models.

  • Smaller and smaller teams can produce software and make money.
  • Social media is an example of providing celebrity influencers with the tool to generate profitable revenue flows.
  • AI will be a supercharger, making otherwise unprofitable revenue streams into profitable ones by reducing labor costs.

More and more industries are arriving at their disruption point.

  • Economic growth has been slow until now. For 5000 years it was zero, but continuous improvement in technology pushes growth rates up.
  • The higher the percentage of technology in the economy, the higher the growth rate.
  • No industries are immune to the effects of technology.
  • At the macro level, the effect is higher growth. At the micro level, it’s the accelerated disruption of existing industries and firms.

Education is an example of an industry ready for disruption.

  • Education (especially higher education) is an example of an industry attempting to create false scarcity which will be unable to withstand the technological provision of abundance.
  • The english speaking world alone has a million schools with millions of teachers teaching the same thing every day.
  • Technology can replace this wasteful duplication – giving all children access to all the education they can consume.
  • Higher education aims at gouging people with a scarcity-based model that is redundant.
  • Hiring corporations will change their recruitment practices to hire smart students prior to university and educate them internally. After a couple of years they’ll have both practical knowledge and an understanding of firm culture, making them extra-valuable employees.
  • It will be a modern version of apprenticeship.

Healthcare is another.

  • Patients already prefer ChatGPT to their regular doctor visit.
  • ChatGPT answers unlimited questions and isn’t trying to get rid of you for the next patient.
  • Access is 24 hours a day and there’s no need for an appointment – no need to spend 2 hours traveling and waiting for a 10-minute appointment.
  • Eventually, AI will disrupt the pharmaceutical industry too – most pharmaceuticals are just a reverse engineering of something that exists in nature, in plants, and AI will give access to this information.

Accelerating technology produces deflation; central bank money printing offsets it.

  • Technology always brings cost reductions; as it becomes a great part of the economy, this will be deflationary.
  • But we have a debt system, and deflation can be disruptive in this context: less cash available to pay debt.
  • Government central banks should increase money printing to address this problem.
  • Since demand for the dematerialized products of technological acceleration can grow to infinity, central banks will need to increase money printing far beyond its level today.

AI should pay taxes, not humans.

  • Governments cause the biggest problems for the new technological era through their fiscal behavior.
  • They spend more and more on the low tech welfare state, and they use taxation of productive human beings to pay for it.
  • But if AI can replace human workers, then AI should pay the taxes.
  • Eventually technology will replace the welfare state. Many services are already free in the technology realm, or paid for indirectly through pure exposure to advertising.
  • Google already provides free food and access to wellness services for its employees.
  • Governments build power over citizens with the income tax model and will be reluctant to cede it.
  • But they won’t be able to hide their colossally wasteful inefficiency from citizens who are familiar with tech services.

The Value Creators Podcast Episode #29. Raushan Gross on Entrepreneurial Value Creation in the AI Economy

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Professor Raushan Gross, who teaches Business Management And Leadership at Pfeiffer University, has focused his most recent research on the impact and influence of A.I. on entrepreneurship. He published some of this research in a series of articles at mises.org. One of them links A.I. to The Wealth Of Nations, and, of course, the wealth of nations is driven by entrepreneurship. From this vantage point, Professor Gross identifies the multifaceted impact of AI on society, economics, and business strategies, advocating for a paradigm shift in management thinking to adapt to technological advancements.

Resources:

The Fate or Wealth of Nations: AI, Robotics and Automation

Will AI Learn to Become a Better Entrepreneur than You?

Prices, Food, Employment: AI and Robotics Are for Regular Folks, Not Just the Elite

Would You Hire an AI-powered McRobot or a Human Employee?

Artificial Intelligence Enhances Consumer Sovereignty

Artificial Intelligence Can Serve Entrepreneurs and Markets

The Fear of Mass Unemployment Due to Artificial Intelligence and Robotics Is Unfounded

Show Notes:

0:00 | Intro
2:27 | Exploring AI’s Impact on Entrepreneurship
7:18 | Can AI Surpass Human Entrepreneurship?
8:48 | Exploring AI as a Service and AI Stacking
12:08 | AI as a Team Member in Entrepreneurship
15:10 | Small and Medium Businesses Can Embrace AI for Strategic Advantage
17:13 | Transition to Autonomous Decision-Making with AI
21:13 | Concerns on AI Centralization and Oligopoly
25:15 | Adam Smith: Global Scale AI is the Wealth of Nations
26:40 | Elon Musk on Value Creation: the Value Meter
29:14 | Does AI Redefine Management by Value Metrics?
32:14 | Wrap-Up: Rethinking Management in the Digital Age

Knowledge capsule

AI changes how individuals and entrepreneurial firms interact with the market.

  • We can’t be sure of the form the interaction will take.
  • But we know that we are using AI in every market transaction
  • While some individuals have doomsday visions of AI, entrepreneurs ask, “How can I use this to improve my business and how I serve customers?”

Human ingenuity will always be a critical and irreplaceable part of entrepreneurship.

  • AI is an active tool for entrepreneurs.
  • It will be a competitive factor in servingand delighting customers.
  • It’s a service to entrepreneurs to help them succeed.

Entrepreneurs can assemble and combine bundles or stacks of AI services into complete business models.

  • Austrian economics explains how entrepreneurial business consists of combining and recombining value-facilitating assets.
  • This is precisely how entrepreneurs utilize AI.
  • There’s no need to own the assets, just to control them and their value direction, and this is the business service that today’s AI tools offer.

AI can be a team member in value creation teams recruited by entrepreneurs.

  • Most productive work is done in teams.
  • AI can be a team member, bringing new knowledge, querying and challenging existing knowledge, and helping to advance knowledge-building at speed.
  • AI can also automate a lot of implementation processes, freeing entrepreneurs to focus on creativity and innovation.

AI will also play a role in technological deflation.

  • While governmental monetary and fiscal policy creates inflation, the role of the entrepreneur and technology is deflationary: making production faster and lower cost with improved quality.
  • AI will contribute by lowering the costs of doing business.
  • Entrepreneurs will be more empowered and the general level of well-being will rise.

Any risks lie in the danger of centralization of AI.

  • Will governments centralize AI under their singular control?
  • WIll the massive investments required in building AI server farms and databases and LLM’s result in a few corporations controlling AI for the whole economy?
  • It’s more likely that entrepreneurs will be able to build their own models using base LLM as a platform.

One of Elon Musk’s innovations points to AI as a “value meter”.

  • Algorithmic management at Tesla includes the ability of AI to assess the real time value creation product resulting from a team’s work with the resources at its disposal.
  • The AI can simultaneously scan all the other value creation opportunities available at the same time and reallocate teams and resources to higher value uses.
  • In this way, AI acts as a “value meter” for the productive activities of a work force and factory.

Global Competition in AI:

  • There will be a global race for AI dominance among nations.
  • Those nations that are most  energetic and innovative will shape the future landscape of AI development.