Q: Hello, Mr. Strauss. I live in Trinidad, in the Caribbean. Our country produces plenty of oil and natural gas, and tourism is also a sector of our economy. I was wondering what we could do to promote small business in our area. Thank you.
A.K.
A: The interesting thing about your question is that you are not alone; there are many communities, both outside the U.S. and in, that would like to encourage entrepreneurship, and government has an important role in that process.
Consider: In the late 1970s, there was an agricultural commune in China that was so dysfunctional and poor that the peasants and farmers who ran the commune were on the brink of starvation.
Facing catastrophe, they decided to risk their lives by challenging Chinese law and the status quo: One night, in secret, they met and decided to divvy-up the land. Each farmer was given his own private plot to farm. They further agreed that any extra produce generated could be sold instead of given to the collective.
Within a year, this commune became one of the most successful, most productive farms in all of China, and of course caught the eye of communist leaders. But instead of condemning this very un-communist plan, Party officials gave it their blessing, beginning the transformation of China being an orthodox communist country to a capitalist one. The result is what some have called the greatest anti-poverty program in the history of mankind as millions of impoverished Chinese became prosperous capitalists.
That governmental polices can have a tremendous impact on small business growth is an understatement. So what can communities do to foster small business growth? Here are a few suggestions:
Teach entrepreneurship: While business basics are often taught in community colleges and such, the actual nuts-and-bolts of starting and running a real business are not. That is where business incubators come in.
A business incubator is a public-private partnership that houses and helps new entrepreneurs. Often located on college campuses, business incubators bring together a variety of experts and expertise to assist new start-ups: Everything from legal and accounting assistance to marketing, advertising, and insurance assistance is typically provided at free or greatly reduced cost. Moreover, the incubator usually physically houses the new start-ups for little or no rent. This creates businesses.
Make capital available: Small businesses often have a difficult time raising capital, but loans guaranteed by the U.S. Small Business Administration foster entrepreneurship by making more loans, and somewhat riskier loans, available. The upshot again is more business are created. So if you want more small business in your area, you will need banks that offer loans secured by the SBA (or a similar governmental agency.)
Celebrate small business: Sponsor an" Entrepreneur of the Year Award." Such an award, especially if properly publicized, can reap tremendous rewards by getting people excited about the idea of starting a successful business.
Offer tax incentives: Local tax credits, exemptions, and refunds can be offered to encourage small business creation. For example, in many states, "enterprise zones" are created to do just that. In Florida for instance, "an Enterprise Zone is a specific geographic area targeted for economic revitalizing. Enterprise Zones encourage economic growth and investment in distressed areas by offering tax advantages and incentives to businesses locating within the zone boundaries." (Floridaenterprisezones.com.)
The 21st Century is going to be an era where entrepreneurship and small business grow ever more important. To quote an old phrase, communities that think globally, but act locally are the ones that will prosper.
Today's tip: According to TimeManagement4U.com, the Top 10 time wasters are:
1) Procrastination & Excuses
2) Running Errands & Commuting
3) Rushing
4) Telephone, Mail, & E-mail
5) Paperwork, Reports, & Memos
6) Meetings
7) Computers & the Internet
8) Planning & Decision Making
9) Entertainment, Television, & Radio
10) Saying Yes
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