Posts tagged with: business

Erika Andersen reviewed the “The Call of the Entrepreneur” for Human Events in a piece titled, “Entrepreneurship Preserves Life as We Know It.” The Call premiered last week to DC audiences at the E Street Cinema, as part of the Renaissance Film Festival.

In her article Andersen noted the international interest in the film:

Though it initially seems like the tale of the American dream, “The Call of the Entrepreneur” is an international story and is now being translated into Spanish and other languages. In fact, the film experienced its largest premier audience in Nairobi, Kenya with over 450 attendees.

Andersen also easily recognizes the importance of calling, or vocation, in business and in free markets:

The stories restore faith in entrepreneurs’ ability to build lives, strengthen nations and economies as well as fulfill God-given destinies. The film denounces the myth that capitalists are self serving, arguing rather that they are almost wholly devoted to others.

Human Events is one of the oldest modern conservative publications, and the one that President Ronald Reagan called his “favorite newspaper.”

Do you ever walk into a business and see a license on the wall and wonder if that specific industry really needs to be licensed by the state? I know I have thought that, if just a few times. John Fund of the Wall Street Journal looks at how licensing laws hinders low prices and competition in the marketplace. In a piece titled, License to Kill Jobs, Fund also explains how over regulation has stymied job growth and the ability of new entrepreneurs to become more self reliant.

Fund also notes in his column:

In the 1950s, only about 4.5% of jobs required a license to work. Today, that proportion is more than 20%. Many of the jobs that require a government stamp of approval don’t involve health or safety. Depending on the state, you need a license to be a hair braider, florist, auctioneer, interior designer or even fortune-teller.

The cost of the education for the license also hurts those who may have the necessary skills but can’t afford to meet all the requirements. Furthermore, sometimes the licensing requirements have little to do with the relevancy of the actual work performed. Another aspect Fund looks at is the arbitrary nature and requirements from state licensing, compiled by a major study by the Reason Foundation. California requires 177 specific business types to be licensed, while Missouri requires only 41. The “Live Free or Die” state of New Hampshire, requires a walloping 130 licenses for specific businesses types.

Another interesting point Fund makes is the licensing requirements hurt the very consumers it’s meant to protect. Fund notes just a few of the facts from the Reason Foundation study:

The higher prices such licensing bodies impose for services can also hurt consumers by creating incentives to do dangerous jobs themselves. “Electrocution rates are higher in states with strict electrical licensing requirements, as more consumers risk performing their own electrical work,” the study notes. “Similarly, states with stricter dental licensing laws also have the highest incidence of poor dental hygiene.”

In the Wall Street Journal piece, the author also declares how in some instances the courts have stepped in and found some of the licensing requirements completely unnecessary, and additionally acts as a regulatory infringement on the right to earn a living. Fund also declares, “Some courts are even citing the 14th Amendment’s due process and equal protection clauses in striking down protectionist government regulations.”

Which makes one wonder all the more: Are the over-zealous requirements and so called need for licensing helping the consumer or just perpetuating higher prices, and lack of competition, which can result in inferior products and service? Obviously licensing in some classes of business are needed. But does everybody, in say an interior design or the florist industry need to be licensed? There are large and powerful lobbying groups able to protect and strengthen certain businesses from more competition, but in some cases little help for newcomers trying to break into the market. In addition, we often overlook just how much the market can regulate itself.

It all reminds me a little bit about the stories you see in the news print and media about young children getting their lemonade stands shut down by bureaucratic governmental standards . Concerning the crackdown on lemonade stands, where are the “It’s For The Children” speeches when they are actually needed?

Blog author: jballor
posted by on Friday, March 9, 2007

Some of Michigan’s economic woes are pretty well outlined in an editorial in today’s OpinionJournal, “MoveOnOutofMichigan.org”.

It begins by noting a symbolically important defection:

Comerica Inc. was founded in 1849 in Detroit and the Detroit Tigers play in Comerica Park, but this week the bank holding company announced it is moving its headquarters to Dallas–where, it said, the bigger growth opportunities are. Consider it one more vote of confidence in the state the national expansion forgot, and especially in Michigan Governor Jennifer Granholm’s economic agenda.

Read the rest here.

Michigan’s unemployment rate was 6.9% in January, the worst in the US, and has been one of the worst in the nation for about the last two years.

As a side note, the actual website MoveOnOutofMichigan.org is “coming soon.”

Mr. Fred L. Smith, Jr. at the 2007 Acton Lecture Series

Mr. Fred L. Smith, Jr. of the Competitive Enterprise Institute was today’s guest speaker as part of the 2007 Acton Lecture Series here in Grand Rapids, speaking on the topic of The Irresponsibility of Corporate Social Responsibility.

Smith argues that Corporate Social Responsibility (CSR) has become the new rationale for old policies of transforming private firms into public utilities—and forcing them to perform whatever duties are politically attractive at any one time. The corporation is an extremely valuable way of organizing large numbers of people to produce goods and services efficiently—that is, to create wealth. That wealth then flows into the hands of shareholders, workers, customers, and suppliers, who are then empowered to advance their own individual goals and values. According to Smith, to “socialize” this process is to reduce the ability of individuals to advance their goals, placing the values of politicians as paramount. Nothing would do more to reduce the world’s ability to address poverty and pollution than to force CSR onto the world economy.

You can listen to his address by clicking here (7.4 mb mp3 file). We’ll be posting video of today’s event tomorrow, so stay tuned!

Blog author: jballor
posted by on Thursday, February 15, 2007

One of the stories told in the Acton’s forthcoming documentary, “The Call of the Entrepreneur,” (trailer available here) is that of Brad Morgan, a Michigan dairy farmer, who bucked the odds and the naysayers and turned the problem posed by the disposal of his herd’s manure into a profitable business venture.

His innovative solution to manure disposal, turning it into high quality compost for a variety of purposes, led to the formation of Morgan Composting in 1996, and more than ten years later the business is still going strong.

Sirico: “Sometimes they’re the most common resources that we walk over, that we ignore, that we even are perhaps repulsed by…”

Reflecting on the role of the entrepreneur in the market economy, Acton president Rev. Robert A. Sirico says, “Sometimes they’re the most common resources that we walk over, that we ignore, that we even are perhaps repulsed by, that become the source of wealth, the source of jobs, the source of prosperity. I mean this is an incredible institution.”

Perhaps no “resource” illustrates this reality better than manure. Brad Morgan turned the waste from cows into a valuable commodity. And now researchers and government officials are following Morgan’s lead.

Wendy Powers, a professor of agriculture at Michigan State University, says, “We really need to think outside the box on what uses for manure are.” Brad Morgan thought outside the box and Morgan Composting now offers a full line of products.

The Associated Press report says that “fiber from processed and sterilized cow manure could take the place of sawdust in making fiberboard, which is used to make everything from furniture to flooring to store shelves.”

“Farmers are having to put more and more money into dealing with manure,” said Tim Zauche, a chemistry professor at the University of Wisconsin-Platteville. “This is a huge cost to farmers.” A dairy farm can spend $200 per cow per year to handle its manure, Zauche said.

But looking at manure as a resource to be managed rather than waste to be disposed of is the key difference in perspective. That’s what Powers calls thinking “outside the box.”

In this month’s issue of Christianity Today, John D. Beckett, chairman of the privately held R. W. Beckett Corporation, speaks about his new book, Mastering Monday: A Guide to Integrating Faith and Work.

When asked, “Do you think churches still don’t understand business as a calling?” Beckett responds,

I do. Relatively few churches and pastors are reinforcing the legitimacy of a call into so-called “secular work.” I have colleagues with tremendous business influence who are starving spiritually in their local churches. There’s zero feeding; there’s zero reinforcing of the call they have in the marketplace.

There’s still much work to be done. Check out the trailer for Acton’s forthcoming documentary, “The Call of the Entrepreneur” here.

Blog author: jballor
posted by on Friday, December 15, 2006

Seth Godin wants to know.

“Christian consumption has gone far beyond the book as millions use their buying power to reinforce their faith and show commitment to the Christian community,” reads an article in the current edition of USAToday (HT: Zondervan>To the Point)

According to the piece, “Nearly 12% of Americans spend more than $50 a month on religious products, and another 11% spend $25 to $29, according to a national survey of 1,721 adults by Baylor University, out in September.”

There has been a great deal of media attention paid to the Bible market in particular in the past few weeks. Here are some examples from Publisher’s Weekly, The Wall Street Journal, and The New Yorker (HT: Reformation21).

Much of this phenomena flows from the affluence of the North American church, which itself entails a responsibility to be good stewards of those resources. As Ron Sider has poignantly reminded us, the way the church approaches the responsibilities and opportunities of wealth and affluence shouldn’t mirror the broader culture’s.

Reading through the parable of the sower in Matthew 13 the other day, I was struck by the danger of the third type of seed, that which “fell among thorns, which grew up and choked the plants.” In Jesus’ explanation, “The one who received the seed that fell among the thorns is the man who hears the word, but the worries of this life and the deceitfulness of wealth choke it, making it unfruitful.” Let us pray that the church in North America doesn’t fall prey to the temptations of the penultimate, but rather produces an abundant harvest for God.

If you’ve read any of David F. Wells’ books on this subject, such as God in the Wasteland: The Reality of Truth in a World of Fading Dreams, you know that he shares these concerns.

Blog author: kschmiesing
posted by on Thursday, November 30, 2006

The Acton Institute’s newest publication is volume 10 in the Christian Social Thought Series, The Good That Business Does, by Robert G. Kennedy.

From my foreword:

[Professor Kennedy] helps to elucidate the place of the modern business enterprise within contemporary society. In the best tradition of Christian social thought, his starting points are what we know about morality through reason and revelation and what we know about business through empirical observation. Using this method he articulates the responsibilities of business in a way that is both realistic and in keeping with the timeless truths of the moral law.

It is an excellent, compact treatise on business from the perspective of Christian moral reflection and will be of interest to those in the fields of business, business ethics, or Catholic social teaching.

Click here to learn more about the book or to order now.

Blog author: jballor
posted by on Wednesday, November 8, 2006

Strong claims coming from Sam at the Philanthropy in Culture, Education, Entrepreneurship blog:

The Charity model does not work – Fact. Time to move on. Responsible, accountable, dignified, respectable investment will liberate the developing world. Inventing a new model for the philanthropic space is not necessary. There is one already in existence – the business model. Change comes about through those who are bold and fearless, constantly innovating on a daily basis, questioning, re-inventing out dated methodologies. Trends suggest partnerships between business and NGO, sharing expertise to deliver lasting, viable solutions – a potent combination.

I guess it depends on what you mean by “the charity model,” but this strikes me as a false dichotomy. Why not both vibrant charity and vigorous commercial investment? Or is that what Sam is arguing for?