Immigrants a Plus for the Economy

I've taken a break from the business blog for a month and with Labor Day just around the corner it is time to bring attention back to the New Iowa Entrepreneurs Coalition and these musings. I'm just back from a delightful 10 days in the Pacific NW - visiting grandchildren and relaxing.

While on the flights to and from SeaTec, I had some time to catch up on back issues of Business Week and Newsweek magazines that have languished in my inbox over the past few weeks. Here is one of the short takes that caught my eye.

Immigrants a Plus for the Economy

Immigrants create more jobs than they take. That is the take home message appearing in a recent issue of Newsweek from the following 'Smart List' item:

Lou Dobbs, take note: immigrants are good for our economy. The most skilled create jobs in technology and engineering, says Duke professor Vivek Wadhwa, who estimates that in 2005 immigrant-founded engineering and tech companies employed 450,000 people and generated $52 billion in sales. But even the least skilled more than repay their costs in schools and health care. Two highly respected Australian economists, Maureen Rimmer and Peter Dixon, studied the issue for the libertarian Cato Institute. "The net impact on U.S. households from tighter border enforcement is unambiguously negative," they found, because even low-skilled immigrants expand the economic pie and create jobs farther up the ladder. Cato's Dan Griswold says the study shows a $250 billion difference between the most and least restrictive immigration policies.

Not surprisingly, the blurb has generated a number of reader comments. And unfortunately, a majority use it as a misguided chance to complain about high unemployment rates in the US and jobs going overseas (a completely separate issue). My personal favorite mixes in a bit of anti-corporate conspiracy theory with its xenophobia:

"Only a magazine that makes its money from the ads it sells to soulless, nationless corporations would say immigrants create jobs. I guess the more immigrants, the happier the corporations are and the happier Newsweek is to sell them ad space. Corporatism is cracking. The American middle class won't take much more of their jobs being transferred to India. India needs to create its own jobs instead of sucking jobs from "American" firms."

In Good Times and Bad, Innovation Can’t Wait

Jonathan Ortmans, President, Public Forum Institute

Every day—while building roads, giving inoculations, sitting at computer screens—individuals are quietly thinking: “I know a better way to do this.” Or: “I could create something new that would make this easier for everyone.”
And then they go back to work, never transforming their thoughts into action. Why does this happen, and how can we unleash these hidden ideas?
Especially in times of crisis and uncertainty, innovation can be stifled by hesitancy to risk. People are tempted to hunker down in their cubicles until the storm passes. Yet that could be the most dangerous course.

As entrepreneurs know, timing matters in launching a new business, or improving an existing one. If you wait too long, your great idea may become irrelevant.

Yet many workers wait until a worst-case scenario—such as a layoff or corporate bankruptcy—leaves little choice but to finally take a risk. Anecdotes abound of people who say losing their jobs was “the best thing that ever happened to me” because they finally had the impetus to follow their dreams.

But that’s an impetus no one should wait for. Innovation is the engine that powers cultural development and economic growth—and when an idea sits stagnant, that engine stalls.
To get it moving again means fixing a number of paralyzing misperceptions. The Kauffman Foundation’s 2008 Economic Crisis Survey reports that seventy-one percent of Americans believe the economic crisis has made it more difficult to become an entrepreneur. While half of respondents saw a market for their ideas, only a quarter would consider starting a business within the next five years; even taking into account the economic crisis, this may be an excess of caution.

“The study shows a gulf between opportunities and those willing to seize them,” the survey reports. Ironically, in this same survey, the majority said they trusted entrepreneurial leadership to be the force for economic revitalization and survival.

To transform economic crisis into success requires more ordinary citizens seeing the world the way entrepreneurs do: perceiving the opportunity in the risk. In a World Bank study in China, for instance, entrepreneurs saw economic instability as far less of a problem than did non-entrepreneurs; the former were more worried about tax law.

Of course, great opportunity does not necessarily require huge risk. “American entrepreneurs work progressively; Russian entrepreneurs look for a breakthrough,” observed Sergey Borisov, president of a Russian public organization of entrepreneurs, during a Russian-American entrepreneurial forum. Regardless of nationality, countless entrepreneurs have found that relatively small risks and incremental progress can yield large results. Many successful entrepreneurs got where they are today by doing so; they innovated based on processes and science they are familiar with. I encourage you too read some of the profiles on our website of entrepreneurs who started during economic downturns.

Now more than ever, it is vital to support entrepreneurial innovators who are willing to take risks with the resources and connections to make it happen. Striking out on your own does not have to mean going it alone. Despite the stereotype of long hours spent working solo, entrepreneurs often find they network more, not less, as they create new businesses. Many form international alliances in which they can share strategies, get inspiration and learn smart ways to manage risk.

One of these new communities, http://www.unleashingideas.org/, connects entrepreneurs at all levels from around the world. It is being launched as part of Global Entrepreneurship Week, held annually the third week of November in more than 75 countries. A visit here or with other like-minded innovators is a way of making that first move out of the cubicle to turn a great idea into a reality.

And there is no better time than now – especially if you’re already employed. In its research study, “The Entrepreneur Next Door,” the Kauffman Foundation reported that people in the United States who already hold full- or part-time jobs are actually more likely to venture into entrepreneurship. Many find opportunities to work within their current position to make their ideas happen, transforming and strengthening their places of employment, as the Japanese corporate model has taught.

In uncertain times like these, we need to redefine notions of risk and opportunity, and we must embrace insecurity as a necessary pathway to a brighter future. After all, in today’s economic climate, a secure position is a relative term. Our global economy needs massive infusions of new ideas and entrepreneurs with the discipline to develop them. Innovators who are already employed and are willing to dare will be the ones who lead the way out of economic danger and toward greater prosperity for all of us.

In the words of Goethe, “The dangers of life are infinite; among them is safety.”

Big Ideas for Iowa - Part One - Business

Support Entrepreneurs; Recruit; Tell Iowa's Story
JACK EVANS, a former CEO of SCI Financial Group, is president of The Hall-Perrine Foundation, Cedar Rapids, and a member of the Iowa Board of Regents.

We in Iowa are fortunate. Common sense has kept our state finances in reasonable shape. Good judgment has kept our commercial banking industry healthy. Education and health care in Iowa are the envy of other states.

Iowans are also realistic. Although our unemployment rate is well below the national average, we know we're in a recession. What can we do?
- Insist our elected leaders create an environment conducive to entrepreneurial development. Finding the next Maytag, Collins or Deere is vital.
- Go out more. Attend local events, particularly at institutions of higher education. See that play, enjoy the ball game. Interaction with others is healthy and intellectually stimulating.
- Recruit. When visiting with out-of-state friends and family, tell Iowa's story. Describe our schools, and stress our quality of health care. Take notes; relay the information to local economic-development professionals.
- Volunteer. It's often said, "You make a living by what you get; you make a life by what you give." Make a life by volunteering.
- Walk. A healthy state is a better state. Walking gives you time to think, time to evaluate progress on your personal goals. Pick up litter along the way to keep Iowa beautiful.
- Take pride. Iowa has wonderful communities and world-class colleges and universities. Celebrate their successes and nurture their growth.

We in Iowa have a great story to tell. Let us all accept cheerfully our responsibilities. We Iowans are loyal and happy to help influence our destiny. Together, today's challenges will become tomorrow's opportunities.


Support Growth of the Private Sector
PAUL SCHICKLER is president of Pioneer Hi-Bred, Johnston, and DuPont vice president and general manager.

As Gov. Chet Culver and our state legislators face tough choices ahead to manage the state's budget through the recession, they must continue to do what has proven to drive growth over time - support private-sector investment and emphasize Iowa's strengths.

Current policies have encouraged Pioneer to increase its investment in Iowa by more than $100 million over the last five years. At a time when unemployment is reaching record levels, Pioneer has added more than 120 new employees in Iowa so far this year.

Now is the time to put policies in place that will stimulate business growth. Private investment, combined with a focus on our agricultural base, will carry us through this recession.

I'm Outta Here: How Coworking Is Making the Office Obsolete

Is the Office Obsolete?
Steve King

One indicator that a social or business trend is entering the mainstream is the publication of books on the topic. The release of the book I'm Outta Here: How Coworking Is Making the Office Obsolete is a clear signal that coworking is spreading.

Coworking office facilities combine the structure and social environment of corporate office space with the flexibility of working from home. They have desks to rent, conference rooms, Internet access, and office equipment. Most of the facilities rent space by the day, week, month, or year.

They appeal to freelancers, entrepreneurs, telecommuters, and other laptop nomads who are tired of working at home alone or in crowded and noisy coffee shops. And unlike traditional office suites, coworking facilities provide a community of like-minded people to collaborate and socialize with.

Written by coworking industry pioneers Drew Jones, Todd Sundsted, and Tony Bacigalupo, I ' m Outta Here covers the people, places, and trends that are creating this workplace revolution.

Not just for independent workers, the book also covers the growing trend of corporations reducing their office space and experimenting with telecommuting, hoteling, and other forms of remote work. This is leading to an increase in the number of

corporate employees using coworking facilities.

I'm Outta Here is quick and easy to read and useful for anyone freelancing, working from home, or telecommuting.

For more on coworking, including a list of coworking facilities, visit the

Coworking Community Blog.

Steve King is a partner at Emergent Research, where he leads a research project to identify, analyze, and forecast the global trends and shifts affecting small business. He blogs at http://www.smallbizlabs.com/.

If you are interested in co-working in Central Iowa - please take a moment to complete a brief survey about the assets, services and preferred locations for co-working offices in the Des Moines Metro. Just click on the 'New Iowa Group' logo and then click on the 'Survey Monkey' logo on the home page.

10 Big Myths About Copyright Explained

Summary:

Thanks to the Web, copyright laws are now front and center for entrepreneurs.

• Are the Fortune magazine quotes you use in your marketing e-newsletter protected? (Possibly)


• Are e-mails protected? (Yes and No)

This article, while not legal advice, is an excellent, readable guide to today's changing copyright laws.

10 Big Myths about copyright explained
An attempt to answer common myths about copyright seen on the net and cover issues related to copyright and USENET/Internet publication.
- by Brad Templeton

Note that this is an essay about copyright myths. It assumes you know at least what copyright is -- basically the legal exclusive right of the author of a creative work to control the copying of that work. If you didn't know that, check out my own brief introduction to copyright for more information. myths.

Go to source: (Templetons.com)

What Does President-Elect Obama’s SBA pick mean to you?

If you know me personally - you know that I am a bit of a political junkie and pretty well known for my policy "wonkishness". As we all approach this inaugural week with its history, ceremony and pomp - I am thinking, "What now? What (if anything) will an Obama administration mean for small business?"

I think we received a pretty good signal that the importance of the US Department of Commerce would be elevated in an Obama administration with the selection of Governor Richardson as its new Secretary. But now that Gov. Richardson has withdrawn, we must look to the new appointment for Commerce Secretary and to some others that Obama tapped for business leadership positions.


In late December the President-elect nominated a venture capitalist to head-up the Small Business Administration. Obama tapped Karen Gordon Mills, president of MMP Group, a private equity investment firm in Brunswick, Maine, to lead the SBA.

Several business media sites have asked small business experts and advocates for their thoughts on the Mills appointment:
"Hopefully, as a Harvard Business School graduate, Ms. Mills will demand more accountability from SBA programs.
"This department has been more fluff than action and according to our surveys has not served small businesses well. By this we mean that 47 percent of respondents said they had not been successful in obtaining help or viable options from the SBA in the past.
"For the average, successful small business, the SBA offers little in the way of viable information or support. The hoped-for emphasis of the Obama administration on the middle class, in which most small business managers fit, may change this lack of focus and follow-through." -- Donald Mazzella, publisher of Small Business Digest.


“We look forward to working together with Administrator Mills. In these difficult economic times, it is more important than ever for the SBA to refine, restructure and implement programs that will help America’s small business owners do what they do best – grow their businesses and create jobs, and thus help guide America out of this economic downturn.

"We hope that the administrator will begin to focus the agency’s efforts toward our established businesses, helping them with the technical assistance they need to grow, rather than focusing on starting businesses. Since 2001, the SBA has undergone a 27 percent budget cut, hampering it from providing the very programs that will help our economy the most.
"Her challenges are our challenges, and working together we can make a difference.”-- Barbara Kasoff, President and Co-Founder of Women Impacting Public Policy



“President-elect Obama's decision to name an SBA administrator so early in the transition is a good sign for small businesses. This appointment shows that his economic team recognizes the key role that small firms play in job creation and the need to take quick steps to revitalize the agency's role in spurring growth."
“Through budgets cuts and mismanagement during the last eight years, the SBA has become nothing more than a shell of the agency it used to be. Reversing this course is essential, and I look forward to working with the new administrator to accomplish this during the next four years."-- Nydia M. Velázquez, D-N.Y. House Small Business Committee Chairwoman

“Advantages: In general venture capitalists help small companies grow, and that bodes well for her.
"She is not a career politician. By nature the Small Business Administration exists to assist small businesses, and not all politicians can relate to the small business owner.
"Obama likes ‘green energy,’ and by picking Mills she may have a good understanding of the nuances of this field.
"Venture capitalists by very nature are risk takers, and it is an extremely competitive business. This administration may need to take some risks to help this very important component of the economy.
"Disadvantage: Most small businesses are ‘mom and pop’ and will never get venture capital nor want it. She may have a hard time relating to these truly ‘small’ businesses.”-- Scott Testa, a consultant who teaches marketing at St. Joseph’s University in Philadelphia

So, What do you think of the SBA and Obama's choice?