Sunday, March 15, 2009

Small Business Econometric Study / Trends From SBA

Highlights from " An Empirical Approach to Characterize Rural Small Business Growth and Profitability"

• Education was a significant explanatory variablein assessing the growth of rural small businesses.The number of high school graduates increases thenumber of rural small businesses. Moreover, one of the challenges facing rural communities is how to retain a younger, more educated population.

• The amount of “natural amenities” available in an area can impact rural small business growth. This is defined as the attractiveness of a place to live,based on factors such as climate, topography, and proximity to surface water.

• Rural areas have difficulty attracting profitable,high-tech businesses, primarily because of a lack ofboth an educated labor force and necessary infrastructure.

• Rural policy initiatives are geared primarilytoward specific topics or regions, which often proveseffective when there are sufficient resources to helprural small businesses. According to individualsinterviewed on the topic, rural development centersand non-profit organizations are vital components foreconomic development.

• Some explanatory variables were specific to particular states. These range from the number of ruralprimary care physicians per capita in North Carolinato immigration growth in Maine.

Interesting read (for wonks and mortals).

Friday, March 06, 2009

The New of the New

If one looks at the real and virtual "stuff" we produce and consume, one of the big state changes comes from new economies of scale mediated by networked information.

Adoption rates for all sorts of things begin more and more to look like vertical lines (e.g., faster broadband versus slower) and better product architectures afford no small degree of modularity and component based systems.

What used to be called information float has become, to a great extent, less of a factor because federations of "smart friends and strangers" can rapidly vet vapor and mojo.

This new "component based and interoperable" lot of hardware, software, bio, and info means that the friction of creation and status quo form less of a barrier than before. This is the kind of environment that welcomes punctuated equalibria (evolution by jerks, as they say!) and disintermediation.

Removing (or mitigating) other frictional issues such as health care in turn improves the formation of new, and I assert, generally smaller organizations. From personal experience, I can say that the 1990s recession spawned a good number of high quality companies and think tanks.

With the provisioning of fractional services (payroll, HR, storage, webservers...) that reflect almost atomistic (and often "free") marginal costs compared to the big box running at 1% capacity, the formula for the production function begins to take rational, versus whole number or integer, steps. Again, with health care, the exploitation of the quaint statistic of large numbers in a common pool.... well, you do the math.

Trust in God but lock your car... I do believe that opportunities will be exploited if only from the fatigue of status quo and the inertia of the known.

Tuesday, March 03, 2009

Conservation Economy (via Ecotrust)


Portland Oregon's Ecotrust.org has made extensive use of a pattern language (see Christopher Alexander Pattern Language) as a design framework for sustainable systems.


"A Conservation Economy


When the health of ecosystems and communities is not integrated into economic activities, all three suffer. In turn, economic dependence on destructive activities creates apparent conflicts between work, nature, and community. How can we create an economy that effectively meets human needs while regenerating natural systems? An economy which grows organically — and fills new niches — by working with nature and enriching human capacities?


In A Conservation Economy, Economic arrangements of all kinds are gradually redesigned so that they restore, rather than deplete, Natural Capital and Social Capital. This will create extraordinary opportunities for those who foresee and drive these changes. The Fundamental Needs of people — and the Ecosystem Services which sustain them — are the starting point for a different kind of economic prosperity that can endure generation after generation."