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There will be more opportunities for more active participation in the economy through small business & entrepreneurship. One impact of the bifurcating characteristic is that employment is doing well at small businesses (as well as very large businesses). For those looking to develop their local or regional (or perhaps national) economies, there is a need and opportunity in helping and encouraging these small businesses and the entrepreneurs that start them. It may sound glamorous, but those who’ve been there know it is very risky and challenging to start a business. More attention to entrepreneurialism in the education system could help the small business success rate go up. A huge need in this space is providing assistance for the “in-between” times (as well as start-up time). Not only financial help, but retraining as entrepreneurs and their staff re-group between ventures. Policies that encourages people to take charge of their careers is welcome and worth incentivizing in my view as it fits the ethos of the emerging economy.
A second aspect of openness is that alternative approaches are emerging to help entrepreneurs raise money. Kickstarter is a popular site in which “creative” entrepreneurs can raise money on the web to fund their ventures. One of my students recently succeeded in a campaign to fund a television series on the future of money. Another mechanism in which people are taking matters into their own hands are the various peer-to-peer schemes. Prosper is a lending site in which people ask for small loans and others agree to lend if they like the idea.
Finally, a movement emerging from the fringes are the “makers.” It is kind of like a high-tech do-it-yourself movement. It is attracting huge amounts of people; with a recent maker fair attracting over 100,000 people. It’s not really a business-oriented movement, but one can see the potential entrepreneurial spirit there. And as Hal Varian, Google’s chief economic, suggests small companies can use global connectivity to build business that serve customers around the globe in Intermediate Microeconomics.
The common theme are the growing possibilities for individuals to participate in creating their economic future – raising issues of if or how we might want to help encourage that. Andy Hines
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