Large industries around the globe are primarily focused on quantity production; thus taking advantage of available cheap labor markets. Increased number of multinational companies is creating a wider gap between the rich and the poor, and subsequently eliminating the middle class.
Cash flow is mostly becoming one way—from the public to large multinational companies. It has been proven that Small Manufacturing Enterprises (SMEs) and/or self employment possibilities are the best tools in achieving two-way cash flow. Current market environment is not favorable towards SMEs. Governments around the world are faced with an unmet need of SMEs and self employment opportunities. However, key stakeholders have been unsuccessful in identifying and diagnosing the problem.
A globally believed assumption is that higher education (i.e. bachelor’s degree) is mandatory to establish SMEs dedicated to delivering innovation. Due to this misinformed notion, SMEs leaders are misled into thinking that acquiring disruptive innovation requires hiring of individuals with university or higher degrees. They are surrounded by successful stories of most for-profit disruptive innovative companies like Google, Apple, Microsoft, Facebook to name a few. However, they do not believe in the concept of “I’m possible” instead they believe achieving similar success of these companies is nearly “Impossible.”
Most multinational agro processor never rely on locally grown produces of only one particular region. Small and medium agro-based enterprises (SMEs) based on local raw materials when failed to adopt a model that best suited with local competitive advantage to generate sufficient revenue to meet cost of doing business including competitive salaries to their employees.
Large multinational companies are found to be more successful in rural areas because they can afford the service cost of body of knowledge (BOK) based industries. These industries can aid them in designing a customer-focused service which in turn leads them to generate more revenue than they would have otherwise. The service of larger BOK companies offered in rural areas only when there are extreme market competitions. Additionally, BOK based companies mostly found unwilling to serve SMEs due to time constraints, minimum orders, and uncertainty of future purchases. With similar limitations, smaller BOK companies with aim to serve local SMEs based on local raw materials are not yet develop in local area. Few that exist are also serving in a very limited sector.
Conception of local raw material based SMEs require the availability of small BOK based industries, and availability of employee with internal highly creative attitude (IHCA). SMEs should be considered as the only potential player to place any country in the forefront of innovation comprised of disruptive innovators. This is absolutely needed in order to cope with the need of next generation consumers. Globally, governments and key stakeholders are failing to recognize this gap.
Government and their subsidiaries are turning towards the same higher educational establishments to get remedies for non-productivity. However, other than adding incremental cost burden to taxpayer, this slightly modified old way of doing and thinking, is repeatedly failing to deliver desired results. Government level support are neither allocated nor felt necessary to develop local BOK based company to bridge the gap needed for disruptive innovation. Directly or indirectly institutions like universities and colleges are getting access to government support for short term programs which fail to generate marketable manpower. This further contributing to create social frustrations.
There is a need for a strong collaboration between agri-food processors and suppliers of innovative ingredients custom designed for agro-processors by BOK based private industries. This requires a team comprised of dedicated, disruptive innovators—not only thinkers but doers. One method of achieving this is through a comprehensive training module with disruptive innovation package. The School of Disruptive Innovation Toronto (sdiToronto) was created to spearhead a grass root level effort aimed at helping individuals achieve an innovative mindset through an unique incorporation of IHCA in our training modules.