Maja Andjelkovic and Saori Imaizumi
Mobile Entrepreneurship
and Employment
A
sales
support
staff. IL
to managers
Given its strong recent growth, the global mobile industry is now a major source
of employment opportunities. Mobile industry jobs can be categorized into direct
and indirect ones, with a diverse labor force supplying each category. Direct jobs
are created by mobile operators and manufacturers in professions that range from
Internazionale
engineers
Telecommunication Union (ITU) estimates that around 1.5 million people are
directly employed in the industry worldwide (ITU 2011). The total number of jobs
fitting this narrow “direct” description may begin to decline as the industry
becomes commoditized. Indirect jobs, Tuttavia, show strong potential for growth,
in professions related to mobile application development, content provision, E
call center operations. Indirect jobs can be created by mobile operators and man-
ufacturers, as well as by third-party content and device producers, including entre-
preneurs. In some emerging markets, outsourcing of mobile content development
also creates significant numbers of indirect jobs. In India, the mobile industry is
expected to generate around seven million indirect jobs during 2012 (COAI 2011).
This report argues that faster mobile networks and more capable smartphones
make mobile communications a platform for innovation across different sectors
(such as health, agriculture, and financial services), supporting overall employ-
ment numbers in an economy. The greatest potential for employment growth
derives from demand for services enabled by mobile phones.
For many entrepreneurs in developing countries and rural areas, a mobile
device is a tool not only for contacting customers and accessing the internet, Ma
also for making financial transactions, establishing a client database, or coordinat-
ing just-in-time supply-chain deliveries. Such critical business functions can
enable small firms to thrive in locations where accessing markets or selling new
products would otherwise be impossible. It is difficult to estimate the number of
Maja Andjelkovic is a doctoral student at the Oxford Internet Institute. Andjelkovic
previously was a project officer with the International Institute for Sustainable
Development.
Saori Imaizumi is an Education Specialist at the World Bank, working with the edu-
cation team at the Human Development Unit in the South Asia Region. She special-
izes in skills development, higher education, and ICT and education, with a focus on
projects in Pakistan and India.
© 2013 the World Bank
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Maja Andjelkovic and Saori Imaizumi
people establishing new companies or the employment generated as small and
microenterprises expand, but mobile phones increasingly contribute to this
processi. It is also difficult to say with certainty how much the mobile communica-
tion sector has contributed to employment and entrepreneurship to date, because
no global count exists. It seems clear that the sector is a net generator of jobs, how-
ever, even though it can occasionally eliminate employment opportunities. For
esempio:
• In the United States alone, the mobile app industry provided an esti-
mated 466,000 jobs in 2011, with annual growth rates of up to 45 per cento
from 2010 A 2011 (TechNet 2012).
• In Canada, a large proportion of mobile apps are games. The gaming
sector is expected to expand by 17 percent over the next two years, driv-
en by increasing mobile broadband access; as a result, mobile games are
likely to generate a significant number of employment opportunities. Of
IL 348 gaming companies in the country, 77 percent expect to hire new
graduates in 2013 (Secor Consulting 2011).
• Mobile money schemes have generally proved to be net generators of
jobs. Safaricom’s M-PESA system supports 23,000 jobs for agents in
Kenya alone.1 Airtel Kenya, the second-biggest mobile operator, plans to
recruit some 25,000 agents for its mobile money service, Airtel Money.2
• By boosting access to information about market demand and prices,
mobile phones can also improve conditions for entrepreneurship.3 A
number of recent studies have shown that cell phones make entrepre-
neurial ventures less risky, mainly by reducing information search costs.4
This report showcases some of the mechanisms by which the mobile sector can
support entrepreneurship and job creation, with the aim of informing policymak-
ers, investors, and entrepreneurs themselves. Some of these approaches share sim-
ilarities with traditional donor initiatives, but many are novel ideas for which the
“proof of concept” has been demonstrated only recently. In an industry evolving as
quickly as the mobile sector is today, it is vital to tailor support to the local circum-
stances and to evaluate impact regularly. As a framework for entrepreneurial activ-
ities, this article examines open innovation and considers one particular way of
supporting entrepreneurial activity in the mobile industry, namely, specialized
business incubators, or mobile labs. The article also reviews mobile microwork and
the potential of the virtual economy, and considers mobile phones as a tool for job
seekers. Finalmente, it summarizes suggestions to support entrepreneurship and job
creation in the mobile industry.
OPEN INNOVATION AND MOBILE ENTREPRENEURSHIP
The rapid pace of innovation in the mobile sector is creating uncertainty and dis-
ruptive technological change while lowering barriers to entry and generating
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Mobile Entrepreneurship and Employment
opportunities for new firms and entrepreneurs.5 The rise of entrepreneurship in
the mobile industry is unsurprising. The lack of vertical integration and direct
competition between operators, handset manufacturers, and content providers has
resulted in a complex environment of different technological standards and inno-
vation in business models, with ample space for growing new businesses. Nuovo
information-sharing and collaboration practices that transcend the closed com-
munication channels are characteristic of newly establishing markets. Similar
information flow dynamics were present in the early stages of other high-tech
industries, including the semiconductor industry in the 1970s, PC software in the
1980S, and the Internet in the 1990s.
In today’s open innovation model, partners, customers, researchers, and even
competitors are finding new ways to collaborate in the product development
processi. The paradigm of open innovation assumes that firms can, and should, use
external as well as internal ideas and paths to market as they seek to advance their
technology.6 Today, firms in many sectors must complement internally oriented,
centralized approaches to research and development (R&D) with more open, net-
worked methods because useful knowledge has become more dispersed (both
within and outside firms), while the speed of doing business has increased.
Collaborative approaches to innovation also offer new ways to create value, espe-
cially in fast-changing industries. To capitalize on fresh opportunities, innovators
must find ways to integrate their ideas, expertise, and skills with those of others
outside the organization to deliver the result to the marketplace (Chesbrough 2003;
Aldrich and Zimmer 1986; Teece and Ballinger 1987).
One of the most promising areas for entrepreneurship is in mobile software
applications, where the barriers to market entry for individual developers and
small and medium enterprises (SMEs) are generally low. Mobile apps can be writ-
ten by programmers working for device manufacturers, network operators, con-
tent providers, or software development firms, and they can also be created direct-
ly by individual freelance professionals. In emerging markets, as in those more
sviluppato, there is no “natural” place where applications originate; for the most
part, network operators and device manufacturers provide their own apps, con
other apps supplied to market directly by developers. This room for independence
allows developers who also have entrepreneurial ambitions to start their own apps-
based businesses.
This ambiguity is accompanied by an array of choices of platforms and distri-
bution models, which can be challenging for entrepreneurs to navigate. For exam-
ple, most apps for lower end phones are written for SMS (short message service),
while apps for midrange devices often rely on mobile internet access and may be
written in Java or PHP programming languages. Smartphone applications must be
customized for each platform, including, for instance, the proprietary Apple iOS,
BlackBerry, or Windows platforms, or for the open source Android. According to
UN 2011 survey, developers used an average of 3.2 platforms concurrently, which was
UN 15 percent increase over 2010 (Vision Mobile 2011). Così, developers must hone
these skills in multiple platforms because no one knows which one of them—if
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Maja Andjelkovic and Saori Imaizumi
any—will become dominant in the future. In other words, developers choose to
diversify their skills because the market, at the moment, demands variety and flex-
ibility. Making decisions related to marketing and distributing apps is especially
challenging: app stores based on operating systems compete with those managed
by handset manufacturers and major global brands, and programmers must decide
which store, or stores, will be most effective as a delivery vehicle of apps to their
potential customers.
INFORMAL INDUSTRY NETWORKS FOR MOBILE ENTREPRENEURSHIP
The lack of formal information channels and uncertainty mean that mobile entre-
preneurs must take the initiative to keep up with changes in standards and indus-
try developments, resulting in frequent socializing and informal networking
between mobile entrepreneurs and developers. Informal social networks, consist-
ing of acquaintances, mentors, investors and other mobile entrepreneurs, serve
three distinct purposes in the development of new ventures—discovering oppor-
tunities, securing new resources, and obtaining legitimacy—all of which are nec-
essary for the survival of a young firm (Elfring and Hulsink 2003). Entrepreneurs
may have initiative, an appetite for risk, creative ideas, and business acumen, Ma
they may also need complementary resources to produce and deliver their goods
or services. Social networks are important sources of support and knowledge and
can provide access to distribution channels, capital, skills, and labor to start new
business activities (Greve and Salaff 2003).
One way to support jobs created through entrepreneurship in an era of open
innovation is through structured social networking events that can help define
business opportunities, identify talent, and draw investment into the mobile sector
in emerging markets. Networking events can also graft best practice lessons from
the ground back into the development and donor communities. An early example
of an informal social networking organization is Mobile Monday (www.mobile-
monday.net), an open community platform of mobile entrepreneurs, developers,
investors, and industry enthusiasts. Mobile Monday fosters business opportunities
through live networking events. It provides a space for entrepreneurs to demon-
strate new products, share ideas, and discuss trends from local and global markets.
Founded in 2000, in Helsinki, the community has grown to more than 100 città
chapters and is managed by 300 volunteers around the world.7 More narrowly
focused organizations, such as Google Technology User Groups (GTUGs)
(www.gtugs.org), cater to participants interested in a particular developer technol-
ogy. These groups provide training for developers using the open Android mobile
platform, followed by minimally structured networking events.8 GTUGs vary in
format, from a dozen people who may get together to watch a corporate video, A
large groups involved in product demos, lectures, and competitions dubbed “code
sprints” and “hackathons.” Smaller, local networks have also been formed in many
cities. For instance, Nairobi-based AkiraChix provides networking and training for
women and girls unfamiliar with software design. It cultivates the careers of young
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Mobile Entrepreneurship and Employment
developers of both genders by providing training in programming and mobile
application development. In Nepal, Young Innovations, the group behind the
Kathmandu-based organization Mobile Nepal, regularly hosts “bar camps”—open
conferences where entrepreneurs and developers give presentations and provide
feedback.9 In Georgia, the business social network mTbilisi promotes corporate
partnerships, coordinates events focused on incubating mobile start-ups, and pro-
vides a space for testing new ideas and designs.10
FEATURES AND DYNAMICS
OF INFORMAL NETWORKS OF ENTREPRENEURS
Mobile developers and entrepreneurs interviewed for this report identified both
informal gatherings and more structured social networking activities as helpful to
innovation and entrepreneurship in the development of mobile applications.
Respondents from Kenya, Nepal, and Uganda indicated that they are initially cau-
tious about sharing ideas and information but that they freely provide lessons and
support once they are established and have begun implementing their business
ideas.11 Entrepreneurs may first test options for starting their own business within
a circle of carefully selected contacts. As a second step, during the planning stage,
entrepreneurs often mobilize a large, informal network of friends, colleagues,
mentors, and other acquaintances, since they may not know who exactly can help
them (Berglund 2007). Information exchange in informal environments carries
risks for fragile new businesses, including the threat of idea theft: promising ideas
risk being taken over not only by peers and direct competitors but also by larger
companies, Quale, instead of hiring the idea generator to complete the work, may
assign an internal team to develop the project in-house. To mediate such risks,
once the project design stage has begun, entrepreneurs choose smaller, trusted
groups from a wider social network to form product development teams.
Entrepreneurs recognize that ideas are only relevant when they are accompanied
by a plan for execution: many people may identify demand for a specific product
or service; Tuttavia, it is execution, in particular functional design and an intuitive
user interface, that makes or breaks an app.
Developers and entrepreneurs tend to rely on their informal networks to iden-
tify potential partners, mentors, or peers who can be consulted in confidence and
relied on to help move a viable product from mind toward market. Once collabo-
ration is under way, individuals may come back to the network to talk about their
example of successful partnership and to share challenges. In other words, IL
interaction pattern seems to circle from a group setting to one-on-one interaction
and back to the wider network. The rewards of networking usually greatly out-
weigh the risks. Many mobile entrepreneurs note that collaboration is essential,
because few applications can be successfully brought to market by a single devel-
oper, let alone expanded to additional platforms and maintained afterward. Market
informazione, idea validation, and partnerships are among the most frequently cited
rewards of participation in social networks, according to more than 80 percent of
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Maja Andjelkovic and Saori Imaizumi
Figura 1. Rewards and risks from entrepreneur participation in social networks
Fonte: Author interviews. Note: Risks and rewards as perceived by mobile industry entrepreneurs,
based on a sample size of 54, split between Kenya, Nepal, and Uganda.
respondents to our survey (Figura 1). Access to finance (including small amounts
raised from friends and family) and mentorship opportunities were other impor-
tant rewards, listed by more than 60 percent of respondents. Finalmente, marketing
support is another benefit of participating in informal peer groups. On the risk
side, more than 35 percent of respondents are concerned about idea theft, in par-
ticular by more established businesses; Tuttavia, even these entrepreneurs recog-
nize the necessity of vetting or validating ideas with their peers and consider the
risk of idea theft to be tolerable. Loss of time, funds, and focus are concerns for 28
per cento, 9 per cento, E 7 percent of respondents, rispettivamente.
The marketing of mobile applications is typically the biggest expense and the
activity about which developers are often the least enthusiastic. Developers often
rely on partners or enterprise customers for all aspects of marketing, Quale, if exe-
cuted poorly, can stall the adoption of an otherwise successful app. For small teams
of developers working on mass market apps, marketing strategies can include dis-
semination and awareness-raising through word of mouth, Twitter, Facebook,
email, and SMS. Successful incubators, such as iHub Nairobi,12 act as useful “ampli-
fiers” of marketing efforts, because local media and investors tend to follow their
announcements and activities closely.
Participants report that small groups (from 4 O 5 people up to 20) are the most
helpful form of networking in discussing ideas and execution. Larger groups can
be too impersonal or too strongly driven by formal presentations. Di conseguenza, many
organizers (including Mobile Monday Kampala13) use breakout groups to ensure
more meaningful conversations at their events. Network sponsors can help
strengthen social networks by attracting well-known figures or VIPs to the meet-
ings as much as by direct financial support. Attracting respected experts to address
attendees can assist organizers in drawing out participants and broadening the
number and scope of conversations within the network.
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Mobile Entrepreneurship and Employment
Figura 2. Incubators in emerging markets
MOBILE LABS AND HUBS
While the informal networks of mobile entrepreneurs and developers described
above can provide many resources, including knowledge and connections to
investors, demand for more formal, hands-on learning spaces and supportive
office environments is also strong.14 A typical business incubator may house 5 A
20 start-up companies in a shared space offering common office equipment and
conference facilities. Most employ a resident manager who coordinates business
assistance, training, and other services, such as business plan development;
accounting, legal, and financial advice; coaching and help in approaching
investors; marketing; and shared services, such as administrative support. Once a
client or resident business is deemed financially viable, it moves its operations out-
side the incubator, enters the market, hires new staff, and expands its contribution
to the economy (Lewis 2001).
A number of incubators, or “labs,” focused on mobile entrepreneurs have been
established in emerging markets, including Grameen Foundation’s AppLabs in
Uganda and Indonesia, and infoDev’s regional mobile applications laboratories, O
“mLabs.” (Figura 2; Box 2). Launched over the past five years, these labs are still in
an experimental stage, but they offer several early lessons.
Each mLab is a technology-neutral physical space with testing facilities for
developing the technical skills and business sense needed to build scalable mobile
solutions into thriving businesses that address social needs. In addition to provid-
ing state-of-the-art equipment, the labs offer technical training and workshops,
and they connect developers and entrepreneurs with potential investors, experts,
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Tavolo 1. Services for entrepreneurs provided by mLabs and mHubs
and public sector leaders. The labs are complemented by a network of mobile net-
working hubs, which do not provide physical space. Together, through regular
informal events, workshops, and conferences, they act as convening spaces for the
mobile industry and allow entrepreneurs to access advice, mentorship, idea and
business plan competitions, and investors. Both the mLabs and mHubs are run and
used by local communities working to increase the competitiveness of enterprises
in mobile content and applications, and they are part of a wider mobile innovation
program that is seeking to develop talent and produce successful companies with
strong growth potential.
Mobile labs facilitate demand-driven innovation by grassroots entrepreneurs,
so breakthrough low-cost, high-value apps can be brought to market. Although
specialized incubators are not unusual, those focusing solely on mobile app busi-
nesses are a recent phenomenon. That presents an opportunity to integrate lessons
and best practices borrowed from related ventures, while tailoring new service
offerings specific to the mobile sector. Ideally, mobile labs should be designed in a
way that enables them to remain open and adaptable to their environment, so les-
sons can be incorporated continuously throughout the lab’s existence.
Mobile lab managers identify their members’ greatest needs as start-up capital
and opportunities to network with mobile ecosystem players and other technolo-
gy entrepreneurs. In addition, many mobile app entrepreneurs need specialized
business training to understand the mobile ecosystem, market demand, or both.
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Inoltre, because mobile app development needs a special set of technical
abilities, many app developers need specialized technical training to continuously
update their programming skills. Networking with local business professionals can
enhance the incubation experience, providing entrepreneurs with highly cus-
tomized advice that can accelerate the growth of their business. Mobile labs can
offer a wide range of services, including “business accelerators”—intensive train-
ing and direct mentoring meant to quickly increase the value of a company and to
help management develop a viable growth strategy. In poor or remote areas, virtu-
al incubation—business training, advice, mentorship, and networking over a dis-
tance and without a dedicated workspace, as well as links with knowledgeable dias-
pora members—can be particularly helpful. The service offerings implemented by
any given lab or incubator should reflect the environment and characteristics of
the region where it is located. These characteristics often dictate the services that
can be offered and the most likely mix of revenue streams. Incubators may be insti-
tuted as nonprofit organizations, for-profit companies (usually when they do not
receive grant funding), or foundations. The business models and regulations of a
given country usually dictate the most advantageous status for an incubator.
Regardless of the regulatory environment, Tuttavia, partners are essential to the
ultimate success of a mobile incubator through their support of the organizations’
development and distribution efforts. That is because, ideally, the incubator is near
or at the center of the value chain for mobile content creation and, in its role as an
integrator, brokers essential partnerships with all key mobile ecosystem players
(Vital Wave 2011).
Even in developed countries, mobile incubators are a recent phenomenon. In
the United States, the prominent mobile incubator Tandem Entrepreneurs was
launched in 2011 to enable a group of experienced entrepreneurs to provide
resources and mentorship to early-stage mobile start-ups. The incubator also offers
each resident company seed funds and a collaborative workspace in Silicon
Valley.15 As mobile services become more sophisticated and widespread, the poten-
tial of mobile entrepreneurs to contribute to the economies of both developed and
developing countries is likely to grow. Most businesses based around mobile app
technology are at an early stage of development but may offer enormous employ-
ment and economic potential, similar to that of the software industry in the early
1980S. Supporting networking and incubation of entrepreneurs in this space is an
important way to ensure that such potential is tapped.
MOBILE MICROWORK
New employment opportunities in mobile communications are not restricted to
highly skilled developers and entrepreneurs but can also extend to a relatively low-
skilled labor force. “Microwork” refers to small digital tasks (such as transcribing
hand-written text or determining whether two photos show the same building).
Typically, such tasks can be completed in a few seconds by a person without spe-
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cial skills or training, but they cannot be readily automated. Workers are paid small
amounts of money for completing each task.
For such work to be broadly accessible to workers from developing countries,
it should be performed via mobile devices as well as PCs. Tuttavia, the mobile
microwork market is still very much in its infancy.
Currently, microwork employs more than 100,000 people and contributes to a
virtual global economy valued at $3 billion a year, according to a recent infoDev
study (Lehdonvirta and Ernkvist 2011). To understand how a mobile user may be
able to tap into additional sources of income, consider, for instance, the growing
gaming industry, which enables online gamers to become microworkers compen-
sated in virtual game currency that can often be cashed in for real monetary gains.
Today’s online game market is very competitive, with monthly subscription fees for
some games nearing zero. Instead of charging players, leading online game pro-
ducers can earn revenue by selling virtual currency to players. The players buy vir-
tual goods and value-added services inside the game using virtual currency. Third
parties—monetization service providers—facilitate the exchange of real money
into virtual funds. Two such monetization services providers, Gambit and TrialPay,
allow gamers to pay for purchases by carrying out microtasks. After completing
assigned microwork, the player is paid in virtual currency, which can be traded for
virtual goods or converted to real money.
Because virtual workers come from a global pool, international microwork
aggregators must be able to provide compensation in foreign countries. This is
complex in any market, but it is especially challenging in developing regions,
where traditional financial infrastructure can be limited. Mobile money schemes,
which are more advanced in developing than developed countries, provide a viable
option for payment for microwork via mobile phones.
Leila Chirayath Janah of Samasource works with refugees in Dadaab, Kenya,
who are paid for performing small tasks for Samasource’s clients, including Google
and CISCO. She suggests that microwork may be a natural complement to micro-
finance, noting that, whereas microfinance can enable entrepreneurs to operate
small businesses serving local needs (such as producing chickens on a small farm),
microwork allows them to reach beyond the local market and develop a variety of
skills. Samasource now facilitates virtual assistance via microwork, including for
clients from the developed world. Janah also notes that, while typical microwork
tasks are not necessarily intellectually stimulating, they encourage interaction with
technology and access to global online social networks, which is “vital to having a
voice in the modern world.”16
Although third-party gaming services have existed for more than a decade, IL
general microwork industry remains relatively new and undeveloped, with mobile
microwork in an even earlier stage of development. And despite the relative sim-
plicity of tasks required, microwork faces the challenge of breaking down larger
business procedures or analytical problems into smaller components that can be
executed by microworkers. This is a technical as well as a procedural problem that
warrants further research by the development and business communities alike. UN
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Mobile Entrepreneurship and Employment
number of new ventures are considering potential solutions in the hope of enter-
ing a market that is likely to grow into billions of dollars a year over the next five
years. Easier-to-use interfaces and better distribution channels are also needed, if
mobile microwork is to prove a viable employment option for some of the poorest
and least educated workers in developing countries (Lehdonvirta and Ernkvist
2011).
MOBILES AND RECRUITMENT
In many countries, coordination and information failures arise between the
demand and supply sides of the labor market. While the demand for employment
exists in both the formal and informal sectors, information on recruitment is often
limited to those with a strong social network or access to job postings via the
Internet. The mobile phone can extend this access to those job providers or job
seekers for whom PCs are an ineffective or unavailable channel of exchange. UN
number of emerging business models are using mobile communications for
improving coordination and information flows in the labor market. At least four
such services are already running: Babajob (India), Assured Labor (Latin
America), LabourNet (India), and Souktel (Middle East and North Africa). Two
others, Pakistan Urban Link and Support (PULS) and Konbit (Haiti), have devel-
oped their systems and will soon start operating.
Skilled, educated workers may already have access to existing web-based job-
matching services such as Monster.com, but job-matching services that are
mobile-based will be even more important for people without access to web-based
services. Mobile-to-web technology will be beneficial for people with basic litera-
cy but not enough knowledge to create a resumé or access online resources.
Employers also find it hard to identify low-skilled workers for entry-level jobs in
developing countries because existing job-matching services mainly target highly
skilled candidates. Mobile-to-web technology promises to bridge some of these
gaps. Building trust among users is the most challenging task for the job-matching
business. Each of the new organizations mentioned above offers additional and
customized services to meet the specific needs of local users, including interview,
resumé writing, and networking skills training for job seekers, and access to a spe-
cial database for employers.
Depending on the job seeker’s target market and country of operation, mobile
phones may be used for different aspects of the job-matching business process.
Most of these organizations use mobile phones for registration and job-match
notifications for job seekers. The actual job-matching service is conducted mostly
via web-based databases. Ovviamente, such technology cannot fully replace the tra-
ditional interview process. Once employers become interested in certain candi-
dates, they can access job seekers’ information and then contact them directly for
an interview. Use of SMS text messaging can be popular where its cost is signifi-
cantly lower than that of voice services; Tuttavia, in multilingual environments
with illiterate populations, calls and voicemail remain particularly valuable.
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Perhaps the greatest impact of mobile communications on jobs lies not so
much on recruitment techniques but on the structure of employment. Beyond cre-
ating more vacancy notices, mobiles can stimulate entrepreneurial activity, as the
demand for mobile industry hubs and mobile incubators has shown, and it can
create many more opportunities for self-employment, part-time work, and flex-
lavoro. In a mobile-driven economy, second and third jobs will become much more
common—and much more important.
CONCLUSIONS AND CONSIDERATIONS FOR POLICYMAKERS
Overall, the rise of mobile technology carries great potential for employment, Ma
with the increased reach of powerful and affordable mobile devices, jobs also may
be lost. Mobile technology can occasionally eliminate jobs, especially where effi-
ciencies are created or resources made available that replace human input. For
esempio, as more individuals acquire their own mobile phones, the demand for
“village phones,” teleshops, and other phone-sharing services may disappear in
many countries (matching the demise of public pay phones in many countries fol-
lowing the widespread adoption of mobile phones), taking away with it an impor-
tant source of jobs. In sum, Tuttavia, with growing mobile penetration rates, IL
mobile industry is widely expected to produce a net increase in jobs:
• The direct number of jobs in the mobile industry from 1996 A 2011, COME
reported by governments to the ITU, shows a clear upward trend in most
(although not all) countries (ITU 2011).
• As the adoption of mobile technology increases, new jobs are needed to
support sales of prepaid cell phone minutes, mobile money transactions,
and other mobile-based services.
• The introduction of mobile broadband is expected to generate signifi-
cant revenues and jobs, especially in related spinoff industries, including
the development of mobile applications.
• Nontraditional business plans (such as those based on microwork) are
a source of potential growth in jobs enabled by mobile technologies.
• The labor market can benefit from the ability of mobile apps to improve
efficiency and lower costs in matching job candidates and employers.
This chapter has outlined a number of tools for enabling the growth of employ-
ment opportunities in the mobile ecosystem, including:
• Supporting informal community networks and activities such as busi-
ness competitions and hackathons to promote open collaboration, men-
torship, and introduction of entrepreneurs and investors, and to identify
viable new business ideas.
• Investing in mobile hubs and incubators, or mobile labs, in order to
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Mobile Entrepreneurship and Employment
equip entrepreneurs with updated technical skills, to provide them with
tools necessary for product prototyping such as testing facilities, and to
identify businesses with growth potential through business evaluation
and acceleration programs.
• Facilitating creation of micro- and virtual work opportunities.
• Investing in mobile platforms for recruiters and job seekers as well as
platforms that extend work beyond traditional work spaces and times.
To capitalize on the potential of mobile technologies to support entrepreneur-
ship and employment, policymakers may consider whether current regulation
supports an enabling environment for mobile broadband and entrepreneurship,
whether to provide financial support for entrepreneurs and incubation systems,
and whether to incorporate some of the aforementioned tools in their public serv-
ice offerings, such as schools and vocational training institutions, in order to
increase employment opportunities in the mobile ecosystem.
1. These could be considered part-time or supplementary jobs, because M-PESA agent tasks ar
often combined with other merchant duties. See http://www.safaricom.co.ke/index.php?id=252;
http://www.bloomberg.com/news/2010-10-14/safaricom-of-kenya-will-boost-access-to-credit-
insurance-for-unbanked-.html.
2. Bharti Airtel took over Zain Kenya’s network in 2010. Some of the Bharti Airtel agents will also
be M-PESA agents, but others will be new.
3. Mobile Entrepreneurs in Ghana. See http://www.webfoundation.org/projects/mobile-entrepre-
neurs/.
4. As but one example, see Aker 2008.
5. This environment can be contrasted with one of stability, continuity, and homogeneity of the
more established economy. The link between entrepreneurship and economic performance at
the individual, firm, and societal levels has been shown in numerous studies that provide a
framework of dual causality between a strong period of entrepreneurship and a growing and
rapidly innovating economy. Vedere, Per esempio, Audretsch and Thurik 2000, P. 26, E
Wennekers, Uhlaner, and Thurik 2002.
6. The phenomenon of open innovation is explored, among other things, at the Open Innovation
Africa Summit, organized jointly by infoDev and Nokia. The first two summits were held in
Nairobi, in November 2010 and in May 2012; see http://www.infodev.org/en/Article.640.html.
7. See www.mobilemonday.net.
8. See www.code.google.com.
9. See www.younginnovations.com.np/.
10. http://www.facebook.com/mTbilisi.
11. Nairobi and Kampala interviews conducted by the authors. See also Pfeiffer and Salancik 2003.
12. See www.ihub.co.ke.
13. See www.momokla.ug.
14. Globally, the shortage of employees with information technology skills has persisted in recent
years. Vedere, for instance, http://us.manpower.com/us/en/multimedia/2011-Talent-Shortage-
Survey.pdf.
15. See http://techcrunch.com/2011/11/01/mobile-startup-incubator-tandem-opens-new-”mobile-
home”-in-silicon-valley-now-accepting-applicants/.
16. See http://www.socialedge.org/blogs/samasourcing/archive/2009/08/25/microwork-and-micro-
finance.
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Maja Andjelkovic and Saori Imaizumi
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