Every business is built on the premise of solving a problem. In their quest to build a business,  do they really solve a problem, or do they end up creating new and more problems?

Every entrepreneur kicks off their business pitch from a common starting point – what problem am I solving?

After all, why would people need the “solutions” they’re offering if it’s not to remedy an existing issue, right?

If we dig just a little beneath the surface of these problem-solving businesses, we will discover that most of them tend to solve a problem only because there is an opportunity to make money, and often, the problems are not worth solving. I must confess, this is not a general statement but would hold good for a large number of businesses.

I have also observed that many entrepreneurs start their businesses with an honest approach to solving a problem, but as they grow, they lose their initial spark and end up being driven more by growth than the problem.

When the Solution Causes a Bigger Problem

Considering that my own work is in the area of sustainability, most of the conversations around me are about caring for the environment, building purposeful businesses, and how there is a shift and consciousness in the world today with the recognition that climate change is a real problem. Sustainability has many aspects to it, with the consumption of plastic being one of them. 

A few days ago, I was shopping at a grocery store in Singapore, and something in the fruits and vegetables section caught my eye, making me stop and ponder. Apples, guavas, and mangoes were being sold individually packed in plastic covers – not bags, but thick plastic-like ones often used for toy figurines. Until now, these fruits were only sold by weight, and one would shove them in a large plastic or a paper bag, but here, they were priced exorbitantly, packaged individually with no care for the excessive packaging. I would have considered such an undertaking in today’s time of ‘revived consciousness on sustainability’ criminal. 

I’m sure someone thought of that packaging to sort out a customer issue – may that be seeing bulk stacks of fruits unhygienic as they would be handled by multiple customers or having not-so-fresh fruits unacceptable for those who always want the best of the best for their family. And they took it upon themselves to solve this problem! 

Yes, one might argue that plastic packaging, in this case, solves a customer problem. I would, however, argue that the true intent behind this innovation in packaging was to now be able to sell these fruits at a premium as being fresher and, more importantly, better looking. This created new financial value out of the same old product by simply adding plastic packaging. 

I am sure this product, before being displayed on shelves of this grocery store (which, on its website and annual reports, claims to care for the environment and sustainability), would have gone through multiple levels of sanctions and approvals from people and departments who all care for sustainability but are driven by higher profits and margins. All of them either ignored the wastefulness, or it probably did not even occur when they displayed it for sale. They probably even convinced themselves that their primary goal is to serve their customers. 

Focusing on Problems that Impact the World

The above is an easy-to-recognize example of problems not worth solving and them being disguised in the business opportunity. In fact, the packaging, in this case, is so flashy that when we walk the aisles of this grocery store, we probably don’t even think about the environmental cost of some of these frivolous products. 

Instead of tinkering with minor problems, why don’t we focus our time and energy on problems that really need attention?

In 1973, university professors and design theorists Horst Rittel and Melvin Webber coined the term wicked problem. This pertains to complex problems, usually social or cultural, that are challenging or impossible to solve because of multiple factors and real-world constraints.

Wicked problems examples include climate change, poverty, biodiversity loss, and many others. These complex problems can be interrelated and are generally symptoms of other problems.

It goes without saying that these core issues are out there, and they remain tangled. Given the world’s resources and creative geniuses in various industries, why don’t more entrepreneurs address wicked problems in business?

The answer is simple: the probability of failure in trying to solve wicked problems is extreme. The opportunity to create a business out of it is even more slim. And as entrepreneurs try to avoid risks whenever possible, building a business around solving them can be extremely difficult. Unsustainable, even.

The Challenge of Addressing Problems Worth Solving

Yes, “fixing” a wicked problem may be impossible. But that doesn’t mean we can’t address them to reduce their complexity.

BillionBricks, for instance, was founded on the idea of addressing not one but two complex problems: climate change and lack of access to housing. These issues are closely correlated because buildings account for about 40% of global carbon emissions. We aim to build future-ready housing with the benefits of sustainable construction without harming the environment.

Of course, it’s not easy. While we saw a business opportunity to address core, systemic and societal problems, stakeholders tended to resist our innovation. After all, it’s new and unfamiliar, so it takes time, cost, and risk to overcome the sharp learning curve. 

Knowing the hardships attached to the endeavor, I don’t expect every founder to take on a wicked problem. But here’s my challenge to entrepreneurs: be honest whether you’re committed to solving a problem worth solving or merely driven by building a business.

In today’s world, where customers translate wealth growth into increased consumption, there are vast opportunities to make profits. Sadly, it can often be at the expense of the environment. But investors and industry leaders have the power and ability to question the norms and the status quo. We should do that every chance we get.

What we do at BillionBricks requires a lot – a significant amount of institutional change, power, courage, and resilience.

But do we give up and move on to a simpler, more profitable business idea? No. Because we believe that climate change and lack of access to housing are problems worth solving. 

The solutions – like the problems – can be complex. After all, many factors are involved, and the parts are constantly evolving. But I’d take that any day than a “solution” as flimsy and frivolous as shiny plastic wrapping.

References:

Waste and Resources Action Programme. Reducing household food waste and plastic packaging. February 24, 2022

Rittel, H. & Melvin Webber. Dilemmas in a General Theory of Planning. Policy Sciences, Vol. 4, No. 2 (Jun., 1973) 
Centers for Disease Control and Prevention. Fruit and Vegetable Safety. Last Reviewed: January 31, 2023