Did you listen closely Wednesday to how Romney was going to increase jobs?
I hope so, as you might want to compare his plan – based on what he learned as a business leader 30 years ago to the latest reality-start up companies. Since 1977, there has been a net increase in jobs from businesses other than startups ONLY SEVEN TIMES. And start-up companies have changed significantly over that same period of time.
Start-ups are hiring fewer people; they are depending more on contract workers. At its peak in 1999, new start-ups employed 7.7 employees; in 2011, that number is 4.7 or a 46% decline. That means the numbers Romney knows from times past will most likely not be achieved in times present…despite his claim that from his “experience” he knows he can do this.
This revolution in start-ups and small business started first in Japan in the 1980s when manufacturers learned the value of creating products in smaller batches and refining them more often, according to Eric Ries, the author of “The Lean Start-up”.
Then, in the ensuing twenty years, as the technological impact became apparent, first through tele-commuting, those small businesses learned they are more flexible by using “contractors”.
It is a concept I have personally been experimenting with since 2007….which lead to a new sales high for me of almost $ 2 million annually in 2010 and 2011…with no employees. But more importantly, it allowed my company to better match the needs of my clients to very specific talents of contractors resulting in far less cost to the client than were I to have maintained a pool of potential skills within my own organization…and all the administrative staff, space and other overhead to support that pool of labor.
Fortunately, I also do not have to be concerned about “stakeholder value” so no decisions need be driven nor dollars diverted from obtaining client satisfaction; all sales dollars can be focused on providing top services at a fair price by the best in the industry….as supported by awards, honors, press, and the recognition we received for our work over those same two years.
This is a 21st century phenomenon now being called the Jobless Entrepreneurship. It is part of the change we are seeing in this digital, collaborative age of the 21st century. It most likely is partly responsible for slower than desired job growth and recovery since our economy imploded in the previous administration.
In spite of that, I’m proud to be one of the pioneers; and already, I am seeing those that have come after have experimented and tweeked and achieved ever increasing results for their clients.
There is no doubt, today’s entrepreneurs and their clients are on board and continue to push the envelope for better results. Results for clients themselves and for those they employ as contractors. If you haven’t spent any time in the “Business” section of a bookstore, you ought to plan a trip….Social Media, Learning, Collaboration and Contracting are front and center, as well they should be….because it is working!
It’s only the Politicians and the Press that are lagging behind. And I can assure you from experience, the 1980s successful businessman running for President does not have today’s business answers.
But what about his Governor experience, you say? Compare Bill Clinton of the ‘90s to Bill Clinton of today. He may have built on his experience in the ‘90s; but he does not rely on it for his credentials. Neither should Romney.
The World has Changed. Romney hasn’t.
created by CEK 