Why more people will start up
Have you read the most recent BLS report? If you’re like most people, you don’t even know what a BLS report is! BLS stands for "Bureau of Labor Statistics," and this government office puts out a quarterly report on trends in labor in the U.S.
The big news from this quarter’s report isn’t the expected stats about how businesses with 1-4 people make up over 50% of all small businesses. Nor is it the fact that the vast majority of job creation comes from small businesses.
It’s the fact that people in corporate positions are getting more and more productive. Nonfarm business productivity rose at a 4.7 percent pace in the third quarter, the fastest quarterly gain since 2003, according to the December 6 report.
Sound like a good thing for big business? Think again.
What we predict will happen is people will continue to get overworked, underpaid, and will leave the corporate workforce to become entrepreneurs. (wahooo!!!)
More people will start up their own businesses because they won’t want to be worked as hard as they are when they’re not the primary beneficiary of all that toil.
The transition toward an "Ownership Society" is becoming ever more likely.
If you are or were a "productivity" stat for a big company, tell us your experience. Are we on track with our prediction?
December 9th, 2005 at 12:52 pm
I absolutely agree with this.
While there will be more of us who want the benefit of our work ("If we have to work for morons, we might as well be the ‘morons’!), there are still those who will want the (false) security of working for a big company. Those people are needed, too.
I’m stuck in the middle. I just started a micro business that I want to grow into a bigger business. Because, however, I have a daughter with Type 1 diabetes and I have MS (blessedly not a very agressive case!), I must have the benefits a corporate job affords me. What can I do about that without breaking the bank and that still allows me to bootstrap my new business?
Thanks!
December 9th, 2005 at 4:13 pm
Lucky for me my wife works for the school an dthi sis what she loves so our insurance comes form there.
But I too was a number for a big company and left very unsatisified everyday. Now I love to work and do not care when. I kept at out and it worked out with my online store.
December 9th, 2005 at 5:31 pm
Yes, I agree. Corporate burnout will occur more often now. I, myself am a corporate employee. More work load and less pay will be expected of corporate employees due in part to increased labor supply available to corporations brought on by the vast data communications connecting the world now. A person in India, for example, can do the exact same job located in the U.S. as someone located in the U.S. and usually for much less money. Supply and demand.
I really like the movie Seabiscuit because it tells the story of a transitional period in the economy. Old ways were going away, and new industries were springing forth. Those that stayed with the old lost most everything (Red Pollard’s family, Seabiscuit’s trainer), while those that took a leap into the new industries made it (Seabiscuit’s owner) and all at the same period of time.
The Internet is the new market place, allowing the whole world to be your market and prospect base. What new and exciting businesses are to come and who will be the innovators is exciting to witness, and take part in. While some stay in the old industrial economy which is being phased out in the USA others venture forth with a few bucks in their pocket, great dreams and ambition to lead them in to the future!
December 16th, 2005 at 10:49 am
So true. I’ve been saying this same thing for 2-3 years now. With pensions going kaput, 401k matching eroding (GE just canned their matching program yesterday) and wages stagnating while productivity soars, you’d have to be nuts not to at least WANT to start your own business. Of course, most people don’t have the wherewithall to cut it as an entrepreneur. That’s the exciting part for all of us who do.
John
"Whether you think you can or you think you can’t, you’re right."
-Henry Ford
December 16th, 2005 at 2:27 pm
john,
love the henry ford quote.
wondering why you think most people can’t cut it as an entrepreneur. we feel very differently about that.
we believe everyone should have–and can viably build– a business of their own.
they just have to get past the fear, lack of info, assumptions that "they can’t", and other unnecessary barriers… not to mention the huge need for the right kind of information and hand-holding that we provide!!!
this is not intended to take anything away from you as an entrepreneur, but to give something to people who might buy into the "NOT FOR ME" thinking that they might take away from your comment…
rock on! wishing you success!
rich