This weekend I wrote about the problems of being an entrepreneur in our Muddle Through Economy. I would like to follow that up with two brief (but somewhat controversial) essays on two aspects of starting up small businesses. The first, by Vivek Wadhwa, points out that start-ups account for all of the net new jobs, and is a summary of a paper from the Kaufman Foundation. (You can read the 12 page paper at http://www.kauffman.org/uploadedFiles/firm_formation_importance_of_startups.pdf)
The second is by my friend William C. Dunkelberg, the Chief Economist of the National Federation of Independent Business. He asks a very simple question: Why is thrift getting such a bad name? And if we take the potential savings from “the rich,” where will the savings come from to invest in start-ups?
Vivek Wadhwa is an entrepreneur turned academic. He is a Visiting Scholar at the School of Information at UC-Berkeley, Senior Research Associate at Harvard Law School and Director of Research at the Center for Entrepreneurship and Research Commercialization at Duke University.
The both make for thought-provoking reading, and offer some challenges to the conventional wisdom, which is what Outside the Box is supposed to do.
Your doing his part by creating start-ups analyst,
John Mauldin, Editor Outside the Box
Filed under: Economy, Growth, Jobs, Consumption, crisis, Cisco, Google, saving rate, IBM, Harvard, Oracle, Kaufman Foundation, Business Week, thrift, entrepreneur, Microsoft, Business Dynamics Statistics, Bush Tax Cuts