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Week of January 14-20, 2008 |
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Entrepreneurs Expect to Work Even Harder in 2008
If you want to be an entrepreneur, be
prepared to work some late and long hours. That’s one primary finding
from the second annual Staples National Small Business Survey, which
shows that 98% of small business owners regularly work during their time
off at vacation, on weekends, and at night. In addition, fifty-four
percent expect to work even harder in 2008. More than 2/3 of those
surveyed agree that they are “constantly challenged” by not having
enough time to complete necessary tasks. While business owners are
pressed for time, many are not taking advantages of effective time
management strategies and technologies. Seventy percent of those
surveyed did not have a written business plan, and more than 84 percent
do not utilize new media technologies, such as blogs, podcasts, or
virtual meeting tools. |
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State Tax Systems and Economic Competitiveness Analysts of national
and state competitiveness tend to focus most of their attention on
factors such as education policy, access to capital, and innovation
assets. But, the effectiveness of government finance systems also
matters. A new study from the Pew Center on the States raises some red
flags about how some US states are performing on this front. Effective
tax systems provide stable revenue, support efficient tax collection,
provide transparent information about incentives, and give localities
some say in how their tax dollars are used. Unfortunately, many state
tax systems fail on these measures. As a result, these lagging states
lack the ability to support new economic engines while continuing to
provide outdated and unnecessary incentives to other economic sectors.
The research cites the following states as strong performers in terms of
effective tax systems: Iowa, Maine, Minnesota, Mississippi, Nebraska,
New Jersey, Texas, and Utah. Poor performing states include: Arkansas,
Georgia, Louisiana, North Dakota, Oklahoma, and Vermont. |
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Economic Pessimism in Europe and North America
The latest McKinsey Global Survey of
Business Executives indicates that leading managers are feeling pretty
glum about economic prospects in the first of half of 2008. The survey
found that executives in Western economies remain concerned about rising
energy prices, rising inflation, and deteriorating economic conditions.
Economic pessimism is strongest in Europe and North America, while Asian
executives remain upbeat. While many executives expect inflation to
rise, they don’t really have effective responses in place. In fact,
fifty-three percent believe that their firms will not be able to raise
prices in response to rising inflation. As a result, firms are trying to
respond in other ways such as increasing investments in training and
human capital. Forty-seven percent of executives noted that their firms
expect to increase hiring in the coming six months. This increase in
hiring is likely to occur in all regions, but will be especially
pronounced in developing countries. |
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What is the relationship between a region’s
employment picture and its demographic picture? A new Brookings
Institution study from Harry J. Holzer and Michael A. Stoll seeks to
better understand the relationships between a community’s employment
patterns and its residential patterns. Using US Census data, they find
that a large majority of Americans now reside (65%) and work (60%) in
the suburbs. Over 1/3 of jobs and residents are located in higher-income
suburbs, which now represent a larger residential base and an equivalent
employment base to central city downtowns. Higher income suburbs enjoyed
especially high job growth during the 1990s, creating a major shift in
commuting patterns as more residents of central cities and lower income
suburbs are commuting into higher-income suburbs. Holzer and Stoll
conclude that US metropolitan areas need to do a better job of
connecting job opportunities to the residential locations of available
workers. |
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Immigrant Self-Employment at Home and in the US A growing amount of
research shows that immigrants are more likely to be self-employed than
are long-time residents of the US. Past research has pointed to many
demographic factors, such as age, gender, and education, to explain
these new patterns. A new working paper finds that self-employed
immigrants were also likely to self-employed prior to migrating to the
US. The research is based on the New Immigrant Survey, a nationwide
study of new legal immigrants into the US. It finds that self-employment
experience in one’s home country increases the probability of being
self-employed in the US by seven percent. However, this past experience
doesn’t seem to have much impact on the bottom line as these immigrant
entrepreneurs do not appear to earn more money or be more productive
than other self-employed individuals. The study also finds that
immigrant self-employment levels are higher for those individuals who
have been in the US for longer periods of time. This finding contradicts
the conventional wisdom that self-employment is generally the domain of
newly arrived immigrants. |
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Deadline Approaching for Economic Census If you own one of the 4.7 million businesses that received an Economic Census form, the clock is ticking. Businesses that received forms are required by law to respond. The forms are due by February 12. Economic indicators used every day -- like the Gross Domestic Product, monthly retail sales, and producer price index -- all depend on the Economic Census for continued accuracy. For more information or help completing the form, see the Census Bureau's business help site at www.census.gov/econhelp or call 1-800-233-6136. |
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The National Dialogue on Entrepreneurship is an initiative of the Public Forum Institute made possible by a grant from the Kauffman Foundation of Kansas City. Through NDE-news, we bring you short summaries and analyses of various trends driving entrepreneurship around the world. Subscribe now to receive your weekly copy. Archived issues are available online. |
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National Dialogue on Entrepreneurship
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stories © 2008 The Public Forum Institute
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