Dr. John Psarouthakis, Executive Editor
The Business Thinker. LLC Internet magazine and Founder and Managing Director of JP-Management Center, LLC.
A Lecture Given at Hillsdale College
some long time ago that I believe is relevant today
The subject was
Small Business Growth
I am pleased to be at Hillsdale College for many reasons not the least of which is that the subject of this talk seems particularly appropriate. I am concerned about the factors that lead to employment growth, something that should be of vital interest to every student. So often discussion about employment or business focuses on the largest companies. Yet I think that we have not looked at the relationship of company size to employment growth and value to the society as a whole. I’m sure you were all pleased to see that Money magazine ranked Hillsdale College among U.S. colleges and universities as a best value. One can raise the question of whether Hillsdale College is a best value for its size or does its size make it a best value. This relationship of size to value is an important one that is often distorted by mythology and misperceptions.
“Small business is the economic backbone of the nation.” “Small businesses are the only ones that are creating jobs in our economy,” “The future belongs to the person working at home connected to the outside world with a modem, computer, fax machine and a cellular telephone.” If all this has a familiar sound to it, it should. The last few years have produced endless streams of prose about small business and the new economy. Most of it glorifying the role of small business. Yet, for all the discussion, the concept of small business is more of an ideological construct than an economic or analytic one. One could argue that the ideological pull of small business is not a new phenomenon but a cultural mainstay of American life.
Continue reading Small Business Growth
PREPARING YOURSELF FOR MANAGING GROWTH
How do you manage a growing company? What can you learn from other CEOs facing the dual challenges of maintaining growth and profitability? What issues are you likely to face and how can you best resolve them? We address these questions and more.
We believe our book is unique. We combine extensive interviews and data from nearly two hundred companies along with first hand experience in building J. P. Industries (JPI), a Fortune 500 company.1 Our diverse research and management experience confirm that companies are dynamic and must be managed that way. We sum up our guidelines in the Dynamic System Planning Model that we will show is practical yet based on well-tested theory. We especially address challenges faced by small growing firms. But the model applies whether or not your company is growing right now. It applies whether you have five employees or five thousand, whether you face a maelstrom of growth and change or stagnation and decline. The model provides a means to develop a more successful company strategy for higher profits and growth.
THE DECISION: TO GROW OR NOT
Consider this unusual concept: you don’t have to grow to be self-employed and financially secure.
Ron started several businesses during his life, but once each venture was underway, he eventually reached a point where the business managed him rather than the other way around. While adept at identifying new markets and making sales, when it came to working with other employees, assigning tasks and coordinating their efforts, he never seemed quite able to make the transitions needed to assure business success. After several such failures, Ron hit upon a suitable niche for his talents–as a promoter of trade shows. He has no employees to contend with, each show is of relatively short duration, and he can move on to the next project before he gets bored or runs into complex management challenges.
Continue reading Managing Growth
Dr. Periklis Gogas
Department of Economics, Democritus University of Thrace
The Greek debt crisis led to an unprecedented reduction in the country’s real GDP by 26.5%. This recession is one of the largest crises that the world economy has ever seen. For comparison, the Great Depression in the US in the later 1920’s resulted in a GDP reduction between 25% to 30%. Moreover, the Great Depression lasted for four years, while the Greek crisis reaches almost 8.
Simply stating that Greeks lost 26.5% of their income paints a gruesome picture. The true impact of the crisis is even worse. We compare current Greek real GDP to the one in 2009 just before the crisis. By doing so we are not taking into account a very significant stylized fact of every economy: growth. All economies show a strong positive trend in their GDP time series. This is the result of a steady growth in the factors of production, i.e. human and physical capital. The available human-working-hours increase due to population growth and the amount of physical capital stock also increases over time as a result of investment in fixed capital. Last but certainly not least, an additional very important factor for continuous growth is the improvement in technology. Technology significantly increases the productivity of both human and physical capital.
Continue reading What is the real cost of the Greek crisis?