Tag Archives: Business Strategy

Small Business Growth

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.

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Corporate Governance in Asia — Challenges and Prospects

Executive Editor’s note: I am delighted to inform our readers that internationally known professor  Gunter Dufey has accepted our invitation to join us as  as the Director-Editor for the region of Singapore and Southeast Asia among his other activities. We are looking forward to his wise and experienced inputs. Below is a brief CV of his and the first article for our publication.

Professor Gunter Dufey, PhD or “GD” as he is known among friends and colleagues is Professor Emeritus of The University of Michigan Ross School of Business, in Ann Arbor, MI USA and Consultant on the faculty of Banking and Finance, Nanyang Business School, Singapore where he taught since 2000 to date. Parts of his academic career were spent at Stanford (USA), University of Texas, Wirtschaftsuniversität Wien (Austria), St. Gallen (Switzerland) and Universität des Saarlandes (Germany) where he was appointed Honorary Professor. His research interests focus on risk management, intl. financial markets and corporate governance. He has published widely. Parallel to his academic career, he worked for extended periods with a number of multinational companies and government agencies, such as  the US Department of the Treasury,, the Ministry of Finance ? FAIR in Tokyo and the Pacific Rim Bankers Program, Seattle, USA. He continues to serve on the Boards of Guinness/Atkinson, USA and until recently on several subsidiaries of Ally Financial (GMAC), Detroit and Toronto. He participates in managing the portfolios of several foundations. From 09/2001 to 02/2003 he was employed with McKinsey and Co. in Singapore, supporting the firm’s Corp. Governance practice in Asia. GD has been a member of the Singapore Institute of Directors, an active participant in the programs of the Asian Corporate Governance Association and currently serves part-time as Executive Director of EDUCATION EXCHANGE LTD, Singapore. Throughout his career he has been actively engaged in Executive Education.

Corporate Governance (CG) has been an enduring issue in the Region (Southeast Asia), especially after the Asian Crisis where poor CG made the crisis considerably worse as investors, local and foreign, harbored serious doubts about their fate when business firms confronted adverse conditions. In spite of progress made over the years, surveys conducted by organizations such as McKinsey & Co and well as the Asian Corporate Governance Association (ACGA) show that – while there are wide differences among countries in the Region – overall there is much room for improvement when compared to the developed markets in North America and Western Europe – although knowledgeable observers will hasten to add that there is considerable room for improving CG in these countries too.

Today, there are two factors that provide special urgency for CG ‘upgrading’: For one, a number of Asian countries, in particular Japan, South Korea, Taiwan, and the city states of Hong Kong and Singapore, have reached a stage of economic development where ‘technological catching-up’ can not be relied upon for further growth. With population increase severely limited and in some cases negative, can provide a further source of economic growth. The second factor, distinct yet related, is the looming pension problem in all these societies, driven by shrinking labor forces and rapidly rising life expectancies. With the traditional Asian family based retirement system disappearing, and ‘pay as you go’ social security systems ailing – to the extent they ever existed in the Region, the only alternatives are so called ‘defined contribution’ (DC) arrangements, illustrated by Singapore’s CPF. However, as this example shows, DC pension systems require the availability of assets with good returns over the long term. In practice only equities (incl. real estate related equities) can yield returns that make contributions affordable. And equity markets with good returns require high quality CG, where firms are managed for the benefit of investors.

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These 15 charts illustrate the current U.S. private equity landscape

From PitchBook on July 19, 2017

Being honest, our 2Q 2016 U.S. PE Breakdown is the best thing you can read to catch up on the latest private equity trends in dealmaking, debt usage, EBITDA multiples, exit activity, fundraising and more. It’s completely free and you can access it here.

If you’d rather look over the highlights, we’ve featured the top charts from the report below:

U.S. PE activity by quarter

2Q has brought activity back to the trends we previously anticipated, with both aggregate deal value and volume sliding. Overall volume has returned to 2013 levels.

For the entire article and remaining very informative charts please go to:     http://bit.ly/29YuEqW