Making Business

Building businesses. One at a time.

Who does this? Who takes the responsibility to do this? Anyone?

At your next soiree, ask that question as a conversation starter. Listen for what happens. Does the group quickly think this is a policy issue for government? Would that be the federal or state government?

How quickly does the chatter settle on individuals and their entrepreneurial spirit? A few more minutes and…does the talk begin to focus on individual initiative coupled with government policy and programs?

There is no argument that government policy affects business operations, even business formation – start-ups. Mostly we think such policies hamper business but that would get us involved with ideological chit chat not always focused on facts.

It may surprise a lot of people to learn that governments at many levels are supportive of business formation and business success. It is simple to understand why – successful businesses do two things governments are interested in: paying taxes and employing people who also pay taxes, or at least buy goods upon which taxes are collected.

Yes; it is good business for governments to be concerned about business success.

How is this done mostly?  Here is a basic primer of government programs that help:

1. State funded colleges and universities offer business course and degree programs
2. University degree programs include bachelor, masters and doctoral levels of study
3. Community colleges provide all manner of business education; often these help to hone entrepreneurial skills in order to urge citizens to start their own businesses; later they help the same folks improve skills and operations to build long term success of those businesses
4. Federal programs include:
1. Small Business Administration: loans, advice, and mentoring support for small businesses; “from little acorns grow mighty oaks” and that sort of thing, you know
2. IRS: assistance with tax effects of various business tactics and strategies, help with understanding legal business organization choices and what the tax consequences are for each; help to structure paying tax obligations in order to maintain business sustainability
3. Grants to direct business activity in desired areas that currently have few players
4. Tax incentives to encourage new employment opportunities
5. Incentives for investments in new, needed areas of the economy
6. Research and development programs funded at colleges and universities throughout the nation designed to expand business knowledge and technology to support industrial expansion and global competitiveness
7. And much, much more
5. State programs include:
1. Tax incentives to attract new businesses to the state
2. Tax incentives to expand business in under served areas
3. Tax incentives to expand hiring
4. Education programs to encourage business formation and business success
5. Research and Development programs funded through state universities designed to expand business knowledge and technology to support expansion of industry and business
6. And much, much more
6. County and municipal programs include:
1. Tax incentives to retain and attract businesses to the area
2. Tax incentives to boost hiring in the region
3. Publicity designed to attract businesses to the area, and to retain existing firms
4. Local committees and commissions tasked to support local businesses and help improve their success
5. And much, much more

There are other agencies working to improve business success. These include local and regional chambers of commerce, trade associations and a hosts of special interest organizations focused on specific business functions and professional credentialing. All play a role in building business success.

And here’s an organization you may know about but few do: SCORE, the Service Corps of Retired Executives. SCORE provides free mentoring to small businesses, both in helping them survive and succeed, as well as forming start-up enterprises. SCORE is staffed by volunteers, most of them retired. The mentors share their lifelong expertise with younger less experienced people. SCORE is affiliated with the Small Business Administration of the federal government. SCORE works with individuals and organizations to further small business success including local libraries, chambers of commerce, community colleges and area universities.

All of this begins with one person’s desire to own his/her own business. The entrepreneurial ‘bug’ has to be present if starting a business is to happen in the first place.

I remember working at a state university and learning how many programs it could offer if it could only find the money to do so. I suggested creating services and programs people would be willing to pay for, at least in part, and thus develop revenue streams that would then pay for a broader array of needed programs and services. They allowed me to experiment and the results were terrific. Collaborative efforts grew among departments, colleges on campus, and university divisions. Staff time, facilities, ideas and some funding were shared to build programs with common interests for success. Such activities mushroomed and state budgeting woes were sidestepped successfully.

Entrepreneurial thinking exists throughout our national fabric – in for-profit and non-profit arenas. Also in social services where you would least expect it.

Human enterprise is needed everywhere we live and work. With collaboration and effort, business success is supported at many levels of society. And it is the task of each of us to make sure this happens. And succeeds!

July 14, 2014