The entrepreneurial climate: 2009 and beyond: it seems clear that the ingredients for an entrepreneurial boom are in place.America has always been a nation of entrepreneurs. y grandfather was the original type of entrepreneur--a farmer. He had customers who followed him until the day he died. Together, he and my grandmother earned a living for their family and created a legacy for generations to come. They didn't have a lot, but they never went hungry.
Back then, they lived on optimism and hard work. Going through those tough times made our grandparents grandparents npl → abuelos mpl
grandparents grand npl → grands-parents mpl
grandparents grand npl and parents strong and shaped a generation that knew how to work hard and complain little. They weren't seeking a handout from anyone; in fact, they were likely giving the little they had to help a friend. When I think of today's entrepreneurial climate, I remain bullish Bullish
Word used to describe an investor's attitude. Bullish refers to an optimistic outlook, while bearish means a pessimistic outlook.
bullish on America. Don't count America out. The strength of America is in its people. I saw my grandparents and parents live through some tough times and come out strong. It is adversity ad·ver·si·ty
n. pl. ad·ver·si·ties
1. A state of hardship or affliction; misfortune.
2. A calamitous event. that builds strength and character, and it is this very recipe which fosters ingenuity and creativity. John D. Rockefeller said ... "These are the days when many are discouraged. In the 93 years of my life, depressions have come and gone. Prosperity has always returned and will again."
Federal Reserve Chairman Ben Bernanke said recently that the economy should begin to stabilize stabilize
See peg. later this year and the economic recovery will come early in 2010. We can only hope so. But even as today's economy recovers, we're emerging into a much different world than the one in which our parents and grandparents lived. Gone are the days when individuals will work for one or two employers, receive lifetime benefits and retire boasting double-digit service time from one employer.
Changing jobs is the norm in today's work force, either by choice to take advantage of a better opportunity or because of today's New Career Economy. The average American will have had 10 jobs between the ages of 18 and 38. In this New Career Economy, long-term security will be gained through people managing their own careers through self-employment and other alternative career options. More and more people are beginning to recognize this. We're no longer expecting a storm on the horizon. We're in it. Threats to the American worker's family that are completely out of their control include: colossal co·los·sal
Of a size, extent, or degree that elicits awe or taxes belief; immense. See Synonyms at enormous.
[French, from Latin colossus, colossus; see colossus. consumer debt, companies downsizing (1) Converting mainframe and mini-based systems to client/server LANs.
(2) To reduce equipment and associated costs by switching to a less-expensive system.
(jargon) downsizing or going out of business, elimination of benefits, massive pension deficits and Social Security insolvency insolvency
Condition in which liabilities exceed assets so that creditors cannot be paid. It is a financial condition that often precedes bankruptcy. In the context of equity, insolvency is the inability to pay debts as they become due; insolvency under the balance-sheet . This means that people are beginning to recognize that the stability they once thought was in the job market is no longer there. And for those who are employed, they're having a tough time making ends meet.
According to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. a recent Career Builder.com article, nearly half of all workers (47 percent) say they always or usually live paycheck to paycheck just to make ends meet, up from 43 percent last year.
The New Career Economy is characterized by:
* Increased worker knowledge of overall economic factors which support individual efforts such as business ownership to ensure long-term security for themselves and their families;
* Increased entrepreneurial success leveraging the knowledge and experience of men and women leaving the corporate workplace;
* Business-services sector increasing due to the need for people and companies aligning with business coaches;
* An increased desire for "personalization Custom tailoring information to the individual. On the Web, personalization means returning a page that has been customized for the user, taking into consideration that person's habits and preferences. " of new businesses to the lifestyle, goals and needs of the business owner; and,
* Increased diversity in the workplace characterized by women, minorities, veterans, disabled and older workers.
Starting a Business Now? Are You Crazy?
Fact or Fiction?
The small-business market shrinks during a recession?
We've all read that small businesses are the backbone of the U.S. economy and will drive our economy in the years to come. The logical assumption is that the small-business market will shrink during recession times. In fact, the opposite is true.
During downturn economies, not only does the net number of small businesses grow, but the number of start-ups actually increases versus previous years. The result of corporations downsizing is a catalyst for many to fulfill their dreams of being self sufficient. This serves as a launching pad for the nation's aspiring as·pire
intr.v. as·pired, as·pir·ing, as·pires
1. To have a great ambition or ultimate goal; desire strongly: aspired to stardom.
Where do all of the sharp, well-trained executives go when their firms make massive layoffs or cease to exist? Many of them start their own business. Historically, the number of new businesses spike as recessions get deeper. As the chart above illustrates, small businesses actually grow during downturn economies.
People are becoming less confident in "reactive" investments as well. Re-active investments such as stocks, mutual funds or 401(k) programs are considered reactive because they all depend upon the performance of corporate America. Ninety percent of all companies do not make their forecasted revenue figures in any given quarter. And more recently, the default rate for issuers of U.S. corporate junk bonds--those that Standard & Poor's rates BB+ and below--is expected to catapult catapult (kăt`əpŭlt'), mechanism used to throw missiles in ancient and medieval warfare. At first, catapults were specifically designed to shoot spears or other missiles at a low trajectory (see bow and arrow). to an all-time high of 13.9 percent by December, S&P reported in January. The collapse of the stock market last year left corporate pension plans at the largest companies underfunded un·der·fund
tr.v. un·der·fund·ed, un·der·fund·ing, un·der·funds
To provide insufficient funding for.
underfunded adj → infradotado (económicamente) by $409 billion. So what does this mean for the aspiring entrepreneur? They are beginning to realize that to meet their goals, needs and expectations, they need to take control of their own destiny.
Many franchisors are beginning to see people grab this "need for self-sufficiency" bull by the horns. Peter Taunton, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Snap Fitness Snap Fitness is a privately owned and operated fitness chain. The company was founded in 2003 by Peter Taunton, a health club owner and former raquetball professional. The company motto is "Fast, Convenient, Affordable", and brands itself as an alternative to the "big box" fitness agrees. "Over the past few months, we have seen a definite increase in the amount of franchise prospects who are ready to control their own destiny. Many who have lost their jobs due to downsizing have stated that they do not want to go through this again and they feel that the real way to financial security is to own their own business."
Polling firm Zogby International Zogby International is a polling firm which was founded by John Zogby in 1984. References
1. ^ About us. Zogby. Retrieved on 2007-10-11. conducted a joint interactive poll with WeMedia, asking the question: "Who will lead us to a better future?" Americans put entrepreneurs and small businesses at the top of the list, with 63 percent saying entrepreneurs and small businesses would lead the way. Next were science and technology leaders, with 52 percent having confidence they would lead us forward.
So it seems clear that the ingredients for an entrepreneurial boom are in place. Unemployment will continue to rise and create this form of "forced entrepreneur ship." The sooner the credit markets thaw, the faster this economic boom will occur. And as this fertile ground for entrepreneurs emerge, we'll have opportunities we haven't even thought of yet. We're seeing more of an emphasis on "lifestyle" franchises these days as well.
Colleague Leann Reynolds, president of Homewatch International, Inc. says, "As boomers age and the needs of society continue to change, I believe we are moving much closer to a service-based economy. Franchise companies that are postured to meet the growing demands of all people will see significant growth and new opportunity.
In the not too distant future, people will purchase services that make their lives easier and more productive; life-services will no longer be an indulgence indulgence, in the Roman Catholic Church, the pardon of temporal punishment due for sin. It is to be distinguished from absolution and the forgiveness of guilt. The church grants indulgences out of the Treasury of Merit won for the church by Christ and the saints. but a necessary aspect of living life."
Certainly technology is one way in which our lives have changed. Technological advancements have touched every part of our society. I recently read that if MySpace were a country it would be the fifth largest in the world. Think about this, in 1984 the number of Internet devices was one thousand; in 1992-one million and in 2008 it exceeded one billion.
It is said the amount of technical information is doubling every two years. This will change the future of entrepreneurship and of franchising.
Deb Evans, president and CEO of Computer Explorers agrees that today is a time full of opportunity. "Purchasing a franchise today is a time to embark on an exhilarating ex·hil·a·rat·ing
Causing exhilaration; invigorating.
ex·hila·rat and gratifying grat·i·fy
tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies
1. To please or satisfy: His achievement gratified his father. See Synonyms at please.
2. journey. Franchise owners have many opportunities available to them such as education, healthcare, automotive to name just a few. Technology has given many franchisees like Computer Explorers the opportunity to market and stay connected to their customers through social media which is very inexpensive or free. YouTube channel, Facebook, Twitter A Web site and service that lets users send short text messages from their cellphones to a group of friends. Launched in 2006, Twitter (www.twitter.com) was designed for people to broadcast their current activities and thoughts. will be an important part of how franchisees and franchisors operate in 2009 and beyond."
It's clear that the next 18 months or so will be bumpy bump·y
adj. bump·i·er, bump·i·est
1. Covered with or full of bumps: a bumpy country road.
2. Marked by bumps and jolts; rough: a bumpy flight. . No one can predict exactly when the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. or the world will emerge from this global downturn. Some good advice comes from war hero Admiral Jim Stockdale who was a prisoner of war PRISONER OF WAR. One who has been captured while fighting under the banner of some state. He is a prisoner, although never confined in a prison.
2. In modern times, prisoners are treated with more humanity than formerly; the individual captor has now no in the now famous "Hanoi Hilton." Held in captivity for more than eight years, he saw fellow prisoners who didn't make it out, yet somehow despite terrible odds and deplorable de·plor·a·ble
1. Worthy of severe condemnation or reproach: a deplorable act of violence.
2. conditions, he survived.
Jim Collins, author of "Good to Great," asked Stockdale what his secret was--why did he survive when others didn't. His response was simple, "This is a very important lesson. You must never confuse faith that you will prevail in the end--which you can never afford to lose--with the discipline to confront the most brutal facts of your current reality, whatever they might be." Admiral Stockdale didn't know when he was going home, and didn't think it was a good idea to predict. He simply knew it would happen, yet woke up every day to face whatever life dealt him.
We too may not know exactly when we'll wake up to a better day, however, we know we will, and if we play our cards just right we might learn a few things on the way. Terry Powell, CEO and founder of FranchiseSource Brands International, has some strong advice for new and existing business owners. "In today's bleak economy, business owners need to go on the offensive and look at these tumultuous times as a chance to implement bold, creative ideas, outflank the competition and overall improve the performance of their business." Seems like good advice to me.
Brian Miller is a British actor. He appeared in the Doctor Who serial Snakedance and provided Dalek voices in Resurrection of the Daleks and , CFE CFE Conventional Forces in Europe (treaty)
CFE Cash Flow to Equity (finance/accounting)
CFE Comisión Federal de Electricidad (México)
CFE Certified Fraud Examiner , is president of The Entrepreneur's Source. He can be reached at 203-405-2120 or brian@FranchiseSource.com.
Who will lead us to a better future? Small business and entrepreneurs 63% Science and technology leaders 52% Government 31% Large corporations and business leaders 21% Traditional media 13% Note: Table made from bar graph. Source: Zogby/WeMedia Poll 2/09 [c] Copyright 2009, smallbiztrends.com