Small Business Labs

Baby Boomer Small Business Links

Hard to keep up with all the media on boomers and small business - and there are way too many to post on.  Here are some recent boomer articles I found interesting:

Baby Boomer?  You may start a business in 2008 - syndicated article saying that according to AARP only 20% of baby boomers are planning to a traditional retirement.  Small business is a major alternative to traditional retirement. 

For baby boomers, a longer ride into the sunset - It's a good thing only 20% of boomers plan a traditional retirement, because according to the Center for Retirement Research most boomers don't have the financial resources to fund a traditional retirement. 

Trading Retirement for Something Else - another choice for non-retiring boomers is social entrepreneurship.  NY Times blog Shifting Careers on encore careers and boomer social entrepeneurship.   

12 People Who Are Changing Your Retirement - on Yahoo finance and picked up from a Wall Street Journal article.  Covers a range of people who are working on aging issues.

Confessions of a Cobol Programmer:  for those of you who aren't boomer techies, Cobol is a really old programming language that - like boomers - continues to work past retirement age.  While the article talks about a relatively young programmer, we've heard from a number of baby boomer techies they are also looking to work with older computer programs that new generations never learned. 

Gardening Industry Targets Boomers: from the Canadian post.

Brave New Economy and Small Business

The Wall Street Journal (registration required) has an opinion piece focusing on the rise of consumer spending in developing countries.  Key quote:

In 2000, the consumer spending of the world's 17 largest emerging-market countries was equal to 48% of U.S. consumer spending; last year it was equal to 65%. At current growth rates, the developing countries could exceed U.S. consumer spending by 2015.

The global economic pie continues to grow, with an increasing share of the growth happening outside of the developed world - and outside of the US.  This is also true for trade flows:

"This consumption boom is changing global trade patterns. America's share of global imports has fallen to 14% last year from over 20% in 2000. The import share of the developing countries has grown to 40.6% last year from 33% in 2000."

Simply put, markets outside of the US are growing rapidly and also rapidly increasing their imports.  This is one reason why we believe US small business exports will substantially increase over the next decade.    For more on globalization and small business, see our most recent forecast report.

Artisan Cheese Makers

The Boomtown USA blog has an post on the growth of U.S. artisan cheese makers, who make limited amounts of cheese using a high degree of handcrafting.  Quote on the growth of artisan cheese makers:

"In the first year that someone bothered to count these chees producers in 1990 there were 75.  In the count in 2006 there were over 400."

There is even an American Cheese Society promoting aritsan cheese makers. 

We've posted in the past on the growth of small farms, local food and the emerging buy local coalition.  It comes as no surprise given these other trends that small cheese production is also thriving.

Entrepreneur Magazine on Small Business Influencers

Intriguing cover story in Entrepreneur magazine on the "25 people, trends and events" that will matter most to small businesses in the coming year.  The mixing of trends with people and events is quite interesting.  I couldn't help comparing their list with our list of the 10 key trends that will impact small business in 2008, and there is a high degree of overlap.

While I think almost all of their choices are good ones, I found a few odd.  The auction of the TV airwaves, for example, will have no impact on anyone (outside of the bidders) for at least several years.  There a few others that made little sense to me.

However, that is the nature of lists and debating them is part of the fun. 

FedEx Lawsuit and the Use of Independent Contractors

Interesting article on MSN Money on a lawsuit between express delivery company FedEx and the IRS.  The suit is over the employment status of FedEx's fleet of drivers.  FedEx classifies them as independent contractors - the IRS claims they are really FedEx employees. 

The issue is money. The IRS claims it loses billions of dollars in payroll taxes due to under-reporting by contractors.  FedEx sees the use of contract drivers as a way to save money and make their operation more efficient. 

The suit has huge implications because: (1) companies of all sizes are increasingly using contract workers; and (2) a growing number of people are choosing to work as independent contractors. 

This used to be much simpler issue from the standpoint of the independent contractors - they almost always wanted to become full-time employees.  Unlike contractors, full time employees have half their social security paid for by the company, receive benefits and, generally speaking, have a more secure employment relationship.

But more people are looking for contract work.  They are seeking the flexibility and work/life balance advantages contract work brings.  Many believe their contract wage rate coupled with the additional freedom more than make up for lost benefits.  They also feel that being independent is actually more secure these days than working for a company. 

The suit has major implications on the use of contractors by both large and small businesses.  If the IRS wins it will be mcuh harder for corporations to use contractors.  This, of course, it will impact the growing number of independent workers who are choosing contract work relationships. 

It is a lawsuit - and issue - worth following. 

It was the best of times, it was the worst of times

Forecasting is a fun business.  I got my latest financial Market Strategy update this morning from Raymond James.  In it they forecast how the stock market may move this week.  Key quote:

"While it looks to us as if the current wedge pattern has no "slant" (up or down), the DJIA is clearly coiling its way toward the apex of the wedge.  In fact, this is the week the DJIA should either break out to the upside, or the downside, of said "wedge.""

Put more simply, they are saying the stock market could either go up or down this week.  Later in the same memo they point out that the market could also move sideways. 

I love it when a forecaster takes a strong stand:). 

Book Review - The Illusions of Entrepreneurship

Scott Shane, who is a professor of entrepreneurial studies at Case Western Reserve University, recently published a fascinating book called The Illusions of Entrepreneurship.  In it Scott covers a series of myths about entrepreneurship and what they mean for investors, policy makers and entrepreneurs.    I really like his top 10 myths list, which you can find in a post he did on Guy Kawasaki's "How to Change the World Blog." 

The book draws on data from extensive research to provide accurate, useful information about who becomes an entrepreneur and why, how businesses are started, which factors lead to success, and which predict a likely failure.  Small business data is hard to find and often contradictory and confusing (at least it is for me).  Scott's done a great job in organzing and presenting a vast amount of key data on this topic.  He has also clearly footnoted his sources, which is a great help. 

Although it has only been out a few weeks, I've already referred back to it multiple times - and it is clearly going to be a key resource for me in the future.  While I don't agree with all of Scott's conclusions, the book is a great addition to small business literature and is a must read for anyone interested in entrepreneurship and entrepreneurship policy. 

Nascar Fans Big Consumers and Owners of Small Businesses

If you've ever wondered why Nascar races are mostly moving advertising billboards, take a look at the study press release pdf done by Scarborough Sports Marketing.  Key quote:

"Nascar fans are top-spenders in big ticket retail categories, avid tech consumers, and influencers when it comes to making business purchasing decisions."

According to Scarborough, Nascar fans are also "13% more likely than the national average to be small business owners."

Marketing Charts has more information on the study.

US News and World Report on Tips for Small Businesses Looking Abroad

US News and World Report has some tips for small businesses looking to sell overseas.  One tip I think is very important is to "budget for the barriers".  Quote from the article:

"...one of the most common mistakes businesses make is getting into a foreign market too quickly before working around all the rules and regulations...recommends that small businesses plan to set aside 5 percent of their expected revenue to pay for these costs."

While exporting has gotten a lot easier and cheaper over the last decade, it is not free.  There are still rules, regulations and expenses associated with exporting.  Small businesses need to be aware of these.

These tips are a sidebar to their "Small Businesses Go Global" article.

Shop Class Becomes Industrial Design

The San Francisco Chronicle reports on the rebirth of shop class at a SF High School as an industrial design class.  Key quote:

"....launched the Industrial Design Outreach Program in 2003, offering local high schools free hands-on instruction to encourage students to be creative thinkers and consider careers in the field. Local high school students have created CD packaging, designed musical instruments and produced innovative lighting."

The article goes on to talk about the wide range of students participating in the class:

"Truant students are finding their way to the class every day, and college-bound teens are considering careers they never knew about before the course."

These kids are the future Makers, and many will also likely be next-gen artisans.