There's an Entrepreneurial Silver Lining in Today's Economy
(KANSAS CITY, Mo.) June 9, 2009 – According to a new study by the Ewing Marion Kauffman Foundation, challenging economic times can serve as the rebirth of entrepreneurial capitalism, leading to the creation of much-needed new jobs.
The study, "The Economic Future Just Happened," found that more than half of the companies on the 2009 Fortune 500 list were launched during a recession or bear market, along with nearly half of the firms on the 2008 Inc. list of America’s fastest-growing companies. The report also suggests a broader economic trend, with job creation from startup companies proving to be less volatile and sensitive to downturns when compared to the overall economy.
"You can see the story of the American economy in these numbers," said Carl Schramm, president and CEO of the Kauffman Foundation. "History has demonstrated this time and again: new firms create new jobs and fuel our economy. Policies that support entrepreneurship support recovery."
The study points out that while recessions often create widespread economic grief, they also can encourage potential entrepreneurs, acting "as an extra spur to founding a new company, if the founders perceive their prospective competition might be weakened." Rising unemployment can benefit new enterprises: entrepreneurs may view unemployment as an opportunity to start a company, and seize the advantage provided by the ability to tap into a larger pool of potential employees.
"While startups may not begin with the intention of reaching the Fortune 500 list, they're hard at work under the radar," said Dane Stangler, senior analyst at the Kauffman Foundation and author of the study. "These companies may remain invisible to most of us, or they may one day grow into household names. Either way, they’re steadily recreating our economy—generating jobs and innovations."
Stangler said companies that reach the Fortune 500 and Inc. lists demonstrate the strength and flexibility of successful entrepreneurial enterprises.
"We imagine the Fortune 500 to be giant dinosaurs lumbering across the landscape," Stangler said. "That's not the case. The turnover and churn on the list is remarkable. Successful, big companies have to be entrepreneurial, and they are."
Governor applauds innovative education savings tool at area companies
Workers connect to education faster with Lifelong Learning Accounts
Gov. Chris Gregoire has recognized three Western Washington employers as among the first in the country to offer a new program that helps employees connect with college, explore educational opportunities and build careers.
Julianne Hanner, a McDonald's franchise owner with restaurants in Grays Harbor and Pacific counties, HaloSource, a clean water and antimicrobial technology company with a facility in Raymond, and Vaughn Company, a Montesano pump manufacturer, are now offering Lifelong Learning Accounts (LiLAs) to their employees.
LiLAs are educational savings accounts, where employees make regular contributions matched by their employer, similar to a 401(k). For example, an employee who saves $20 per month, paired with a $20 employer match, can have $240 sitting in an account in six months. When combined with a LiLA launch scholarship, that's enough to enroll in a community college course.
"Washington and its businesses are leading the nation in engaging our workforce in lifelong learning," said Gov. Chris Gregoire in honoring the three employers and their employees. "LiLA gives workers a powerful new tool to save for their education and achieve their goals quickly, while rewarding employers with a more energized and talented workforce."
Although employers and employees contribute equally to LiLA, employees direct those dollars into educational programs they choose-whether it's a foreign language class, a welding workshop or an accounting course. By lowering financial barriers and focusing on employees' interests, LiLA can spark an interest in education that leads to professional and personal growth.
"LiLA has the potential to get adult workers excited about learning new things and moving forward with their education, in part because they're able to steer their savings into areas they're genuinely interested in. Most employer-supported training programs don't provide that same kind of personal flexibility-or fun," said Hanner, a long-time workforce advocate.
LiLA is overseen by the Workforce Training and Education Coordinating Board (Workforce Board), which promotes education and training needed by workers for family-wage careers. LiLAs have launched successfully in other parts of the country in partnership with the Council for Adult and Experiential Learning. In Washington, LiLA is being marketed as a pilot project to the five-county area of Thurston, Mason, Lewis, Grays Harbor and Pacific counties, with the eventual goal of taking the program statewide. Learn more at: http://www.lila.wa.gov.
The Workforce Board's core partners in promoting LiLAs include:
· Office of the Governor
· Association of Washington Business
· Washington State Labor Council
· Pacific Mountain Workforce Development Council
· State Board for Community and Technical Colleges
· Higher Education Coordinating Board
· Department of Commerce
· Northwest Career Schools Federation
· Health Workforce Institute
The Workforce Training and Education Coordinating Board is a partnership of labor, business and government, dedicated to helping Washington state residents obtain and succeed in family-wage jobs, while meeting employers' needs for skilled workers.
Download the Governor's proclamation supporting Lifelong Learning during the month of August.
SSTi : Feds Streamline Funding Process for Broadband Grant and Loan Programs
Federal Stimulus Supplementing State TBED in Governors' Budget Proposals
IBISWorld Announces Industries To Perform Best in 2009
LOS ANGELES – March 30, 2009 – The recession is crippling businesses across the nation, but several industries will remain unscathed by the current economic strife, according to recent Recession Updates published by industry research firm IBISWorld.
Articles in the News:
Lifelong Learning Accounts The LiLA Program is designed to assist employers and their employees in creating a lifelong learning environment in the workplace
Other links:
Lifelong Learning / New Strategies
Clean Tech Open calling for Washington entrepreneurs
March 23, 2009 – The Clean Tech Open announced it is expanding its 2009 business competition to include Washington, Oregon and Idaho. Clean tech entrepreneurs are invited to submit their clean tech ideas for the opportunity to win funding and turn them into viable businesses. The top three winners from these states will receive $50,000 and the chance to compete for a national prize of $250,000. The competition is part of the Clean Tech Open’s 100K Jobs Challenge to create 100,000 clean tech jobs in the country over the next five years. The deadline to enter is May 30, 2009. Visit the Northwest Chapter of the Clean Tech Open for more information, or click here to read more about the competition.
Where do Innovations Come From?
July, 2008, by Fred Block and Matthew R. Keller
Jobs may rebound in 2010. A new forecast by Moody's Economy.com shows U.S. employment growing in 2010-1012m but the outlook for individual states and job sectors varies widely.
Success of Persistent Entrepreneurs, February 2, 2009 by Sarah J. Gilbert
Let's Spend on Broadband & Power Grid, Jan 14, 09. Wall Street Journal
Vital Reads: Worth Your Time!
A New Approach to Capitalism in the 21st Century, Bill Gates web cast from the World Economic Forum
Obama Stimulus Plan May Generate $300M Research Windfall, UW Says
US Ranks 8th in Global Innovation
Perspectives on Obama Secience Policy
Innovation Experts Panel The Washington Economic Development Commission hosts an Innovation Economy Experts Panel discussion with Paul Sommers (Seattle Univ), Lee Cheatham (WA Tech Center), Lisa Cohen (Global Health Alliance), Julie Anderson (CTED), Don Brunell (Association of WA
WEDC Innovation Economy Press Briefing. The innovation strategy was presented to the Governor and the Legislature on February 6th
more
The WEDC hosts a Legislative Leadership Roundtable discussion with Rep. Phyllis Kenney (D-Seattle), Sen. Jim Kastama (D-Puyallup), Rep. Barbara Bailey (R-Oak Harbor), and Sen. Joe Zarelli (R-Ridgefield)
News
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