The truth is that 90% of online startups fail. It is unrealistic to expect most incubees to build a successful business. However, the local economy may not require every person to be a business owner and the next online mogul. The program should aim to incubate a handful of successful online businesses to generate:
- Increased local job opportunities in the case study area.
- To provide a portion of the population with skills that can be transferred to others in the community. The end goal is to have locals mentoring locals and allow participating cryptocurrency projects to responsibly exit the case study area.
- To stimulate the local economy with money from outside of the community. This new money should provide additional local economic benefit and create opportunities for locals to build new businesses to serve the needs of online business employees and founders. For example, online business employees are going to require goods/services and have the disposal income to afford this. That provides an opportunity for other locals to meet this demand and facilitate trickle-down economics.
- Help grow an entrepreneurial and aspirational culture in the community.
- To give locals the knowledge, tools and opportunity to participate in the global economy.
With online businesses, it takes time to generate revenue. Indeed, it’s quite common for online business owners to work for over 6 months before they start generating revenues. It’s exceptionally important to ensure that these budding local entrepreneurs are supported whilst they are growing their businesses. This means that incubees should have their essential costs covered so that they can focus on working and gaining new skills, rather than wondering where their next meal is going to come from.
It is proposed that participating crypto projects solve this problem by committing to pay incubees a living wage for one year. As an example, the latest global poverty data from the World Bank states that 767 million people (around 10% of the global population) are living on below $1.90 a day. This means if crypto projects committed to a 50 person incubator and paid each incubee $3 per day in salary then the annual cost of incubator salaries would be ~$55k per year in Crypto. Previous research should reveal the value of a true living wage in the case study location. It is advised that this salary be enough to support a family to ensure that the incubees can focus on building their business.
The lure of a years salary and the opportunity to build a business and learn new skills for free is going to act as an extremely strong incentive for locals to register their interest in the program. However, it is key for the incubator program to only have incubee teams that are truly interested in learning and building a business.
TotalCrypto advises that the main efforts to physically deploy the incubator are undertaken after the community and local entrepreneurs have been successfully introduced to cryptocurrency though onboarding sessions and the local exchange is fully operational.