Posts tagged with: entrepreneurship

Silicon Valley certainly has a reputation for innovation and risk. But Christianity? Businesses designed not only to innovate but to pursuing business as an “intimate” adventure with God? That seems unlikely.

Christianity Today tells the story of several entrepreneurs in Silicon Valley who are grounded in faith, but are shrewd business people. Take, for example, Sonny Vu. (more…)

Brian Burrough has a mostly enjoyable New York Times review of a book that’s mostly positive about my native state’s mostly small-government formula for economic growth. Some excerpts:

Ms. Grieder, a onetime correspondent for The Economist who now works at Texas Monthly, and a Texan herself, has written a smart little book that … explains why the Texas economy is thriving. It’s called “Big, Hot, Cheap and Right: What America Can Learn from the Strange Genius of Texas”….

What might be copied, Ms. Grieder indicates, is the so-called Texas model — that is, a weak state government with few taxes and fewer regulations and services. It would be far harder to replicate the state’s civic DNA, which features traits that can be traced to its decade, beginning in 1836, as a stand-alone nation (independent, suspicious of Washington), the late-1800s cowboy era (self-reliant, fraternal) and the 20th-century introduction of oil and entrepreneurialism (pro-business, skeptical of government)….

Outside writers have been regularly caricaturing the state since the novelist Edna Ferber introduced America to postwar Texas with “Giant” in 1952. The canon ranges from “The Super-Americans,” by John Bainbridge (1961), to “As Texas Goes … : How the Lone Star State Hijacked the American Agenda,” by Gail Collins, a New York Times columnist (2012). Ms. Grieder’s is the rare book that takes stock of the Texas model without ridiculing many of its traditions and politicians.

My one concern is that the book’s author seems enamored of Gov. Rick Perry’s crony capitalist strategy of using subsidies to attract companies to the Lone Star State, a habit that is anything but small government and likely to come back to bite. On the whole, though, the book and the book review appear to give far more props to low taxes and limited government than I thought possible for a work endorsed in the pages of The New York Times. Maybe there’s hope for those city slickers after all.

In the video below, Ralph Baer, the “father of video games,” explains why he still invents at 90 years old. “What do you expect me to do?” he asks. He likens invention to the work of a painter. Would someone ask why a painter doesn’t retire? It’s what they love to do! Indeed, it is a calling.

In The Entrepreneurial Vocation, Fr. Robert Sirico writes,

Entrepreneurs, as agents of change, encourage the economy to adjust to population increases, resource shifts, and changes in consumer needs and desires. Without entrepreneurs, we would face a static economic world not unlike the stagnant economic swamps that socialism brought about in central Europe.

The same can be said about inventors like Baer as well. Like them or not, video games have been a huge source of wealth creation in our country over the last 40 years. Not only are whole teams of programmers required to create a single game, but modern games even employ actors, composers, writers, artists, and so on. In many ways they are (or at least could be) the culmination of culture up to our present time, and it all started because Baer invented a fun little gadget and managed to market it some 40 years ago.

I remember as a child of the ’80s, we actually had a Magnavox Odyssey 2 growing up. A child today would likely find it bizarre that I could find any enjoyment from such primitive sound, graphics, and interface, but it will always hold a special place in my heart. Yes, looking at it now, I can vividly remember the feel of the controller in my hand, the excitement of a child in wonder at what, at the time, was such amazing technology and a source of fun and competition with my brothers. It may not be impressive to many today, but inventions like this and the people who invent them ought to bring us to awe before the God who created heaven and earth and such fascinating and creative creatures as the human race, capable of wondrous invention after the image of the God who created them so fearfully and wonderfully unique.

Too many regulations: that’s the judgement of Fred Deluca, founder of the Subway restaurant chain. In an interview with CNBC, Deluca said he couldn’t start his business in today’s economic climate.

The Subway founder pointed to a number of government regulations that are degrading the business environment for entrepreneurs. Examples include the Affordable Care Act, an increase in the minimum wages and the end of the payroll tax holiday.

The Affordable Care Act, often referred to as “Obamacare,” is “the biggest concern of our franchisees,” Deluca said. “They don’t know what to expect. It’s causing a lot of concern, but that too will be passed on to the consumer.”

Deluca also said payroll taxes are a burden passed on to customers, and sales then decline. He said that if he were to try and start his business in today’s tangle of regulations and burdensome costs, “…Subway would not exist.”

Read “Subway ‘Wouldn’t Exist’ If Started Today Due to Regulations: Founder Deluca” at CNBC.com.

PovertyCure was featured in Forbes Magazine last week. Alex Chafuen, one of Acton’s founding board members, featured PovertyCure in his article on champions of innovation. He writes:

A new multifaceted initiative, called PovertyCure, provides abundant materials and resources for those who want to create lasting solutions to poverty. The program is founded on the conviction that each human person can be a source of great creativity. It highlights the incentives needed to unleash the entrepreneurial spirit that fills the developing world.

Chafuen also calls attention to PovertyCure’s focus on the big picture:

Many intellectual entrepreneurs and some of their donors and “angel investors” tend to be single-product champions. They focus on only one element in the road to reduce poverty, e.g., women rights, property titles, vaccines. This could lead to neglect of the fundamental problems that impede successful outcomes in their area of work… A fruitful dialogue among participants in PovertyCure can increase the chances that poverty or “human flourishing” programs will be structured with the proper incentives.

Instead of focusing on what we can do to solve poverty, the real question is how do people in the developing world create prosperity for their families and communities.

Learn more about PovertyCure, their network of over 180 organizations, and order the new PovertyCure DVD-Series, a 152-minute documentary-style series that challenges conventional thinking and explores the economic and theological foundations of human flourishing.

Over at Ricochet, Peter Robinson broaches the oft asked question about intellectuals and their disdain and rage against capitalism. Robinson unearthed Robert Nozick’s, “Why Do Intellectuals Oppose Capitalism?” Nozick declared,

The schools, too, exhibited and thereby taught the principle of reward in accordance with (intellectual) merit. To the intellectually meritorious went the praise, the teacher’s smiles, and the highest grades. In the currency the schools had to offer, the smartest constituted the upper class. Though not part of the official curricula, in the schools the intellectuals learned the lessons of their own greater value in comparison with the others, and of how this greater value entitled them to greater rewards.

The wider market society, however, taught a different lesson. There the greatest rewards did not go to the verbally brightest. There the intellectual skills were not most highly valued. Schooled in the lesson that they were most valuable, the most deserving of reward, the most entitled to reward, how could the intellectuals, by and large, fail to resent the capitalist society which deprived them of the just deserts to which their superiority “entitled” them? Is it surprising that what the schooled intellectuals felt for capitalist society was a deep and sullen animus that, although clothed with various publicly appropriate reasons, continued even when those particular reasons were shown to be inadequate?

The entire essay is thoughtful and worth the read and it reminded me of some of my own observations of life at Ole Miss, my own Alma Mater. Much of what Nozick explains in the essay may be magnified at a school that has a similar cultural makeup as that one. The University of Mississippi or Ole Miss, at least from my own experience, is a very solid public university. There are some excellent professors in residence, especially within the college of liberal arts. For a public university, especially when it comes to capitalism and cultural norms, the student body is relatively conservative. I would say though from my own experience, however, it isn’t a place of grand academic probing or curiosity for most students. How many colleges genuinely can claim that characteristic today, though? That is not to say students are less intelligent or thoughtful than elsewhere.

A deep intellectual curiosity among the student body, in most cases, would not ingratiate you towards your peers and it certainly did you little favor in the social scene. I immediately noticed a tension between some of the academics and a large portion of the student body. Social development, popularity, networking, and the general social scene was all the rage for many students. Whether it was through popular fraternities and sororities and social gatherings, those activities and influences took precedence over the academy and academic pursuits.

A lot students came from financially successful families and many of those families were popular in Mississippi. They had little interest in repudiating their background, upbringing, and many of the cultural norms that surrounded them. While some academics on campus wanted the students to at least in part, to repudiate some of those values and norms. And many of those same students – who might be described as not “academic” or “intellectual” – were masters of the social scene, where often financial success comes in life, especially in the field of business and entrepreneurial enterprise. The resentment of some in academic circles was palpable. They felt betrayed by the wider culture – no beautiful woman at their side, no expensive sport utility vehicle, and little popularity. Thus there was a feeling that the system is rigged and unfair. I suspect in many of the the more traditional campus settings, feelings like this are especially common.

There has been a lot written on the topic of the academy’s rants and raging against the free market. Certainly much of it has to do with the deep perception that some professors aren’t rewarded to a greater degree than those that are less academic but maybe more socially astute in life and business.

Perhaps the best examples today are the professors in SEC schools who carry impressive academic degrees and credentials but are dwarfed in salary by football coaches with motorcades bigger than the state governor, and a support staff greater than entire academic departments on campus. They are a visible reminder of the popular jock who got the girl, while simultaneously, being the most admired figure on campus. Is capitalism or the free market really to blame though?

When we think of markets, we may conjure up a picture of goods and services production, supply and demand economics, and freedom of exchange. This of course is an accurate depiction, but what if in addition to this, the marketplace is actually divinely inspired and can be utilized to fulfill God’s mission?

In the upcoming AU Online four-part lecture series, Building a Marketplace Theology: From Conception to Execution of an Evangelistic Marketplace Practicum, serial entrepreneur David Doty will explore this idea. The series is scheduled for January 22 through January 31. Online sessions will be held at 6 pm EST on Tuesdays and Thursdays. Visit auonline.acton.org for more information and to register.

For additional material on the marketplace as a reflection of God’s plan and its effectiveness as a poverty alleviation tool, check out the newly released PovertyCure DVD Series, a project of the Acton Institute.

The Good Rich and What They Cost Us, Robert Dalzell Jr.In a new book, The Good Rich and What They Cost Us, Robert Dalzell Jr. aims to address “a great paradox at the core of the American Dream: a passionate belief in the principles of democracy combined with an equally passionate celebration of wealth.”

In a review for the Wall Street Journal, Amity Shlaes notes that although the book provides an in-depth look at the history of American philanthropy, the author’s own personal prescriptions lend too high a trust to government redistribution:

“The Good Rich” starts out like a tour through a portrait gallery, describing rather than judging. For much of his narrative, Mr. Dalzell refrains from giving his own opinion explicitly and reports merely that the rich have often blamed themselves for their lapses or oversize good fortune, or that their peers did.

Toward the book’s end, though, Mr. Dalzell drops his own screen, putting forward a familiar argument: that democracy suffers unless wealth and philanthropy are redistributed to reduce economic inequality. Even the “good rich” cost us: They don’t give wisely, Mr. Dalzell contends, spending too much on “elite institutions like Harvard, Yale, MIT and Princeton, which seems unlikely to reduce the income gap by much.” …For the sake of the public good, then, the rich must fashion better charity projects while handing over more of their money to the government.

Such philanthropic efforts deserve to be thoroughly examined. Likewise, from the poorest of us to the wealthiest, we should be energetic in examining our own activities, using discernment and wisdom in how we use our resources. But as Shlaes indicates, if it’s difficult for we individuals to wrestle with these deep questions about stewardship — particularly when we’re calling on the Divine for wisdom, as many philanthropists under Dalzell’s microscope claim to have done — how much more difficult will it be for a bloated government machine to utilize proper discernment? (more…)

Young African American men, especially ex-offenders, face high obstacles to employment. City Startup Labs hopes to help change that by teaching them the skills necessary to become entrepreneurs:

This new non-profit was created to take at-risk young African American men, including ex-offenders, and teach them entrepreneurship, while creating a new set of role models and small business ambassadors along the way. City Startup Labs contends that an alternative education that prepares these young men to launch their own businesses can have far more impact with this population than other traditional forms of job readiness or workforce training.

Today’s economic climate allows employers their pick of candidates, leaving few options for anyone with a record. Young black men, who’ve had no brushes with the law, still routinely face real barriers in getting on a job ladder’s lowest rung.

According to a 2005 Princeton study, “Discrimination in Low Wage Labor Markets,” young white high school graduates were nearly twice as likely to receive positive responses from employers as equally qualified black job seekers. Even without criminal records, black applicants had low rates of positive responses – about the same as the response rate for white applicants with criminal records.

This is where entrepreneurship comes in. For example, a report done by the Justice Policy Institute states that, “…recidivism is higher for those persons who are unable to obtain employment after leaving prison and imposes a high cost on society; and yet employment opportunities are especially limited for ex-convicts. Thus self-employment would be a viable alternative for ex-offenders, at least for those with above average entrepreneurial aptitude…”

Read more . . .

solar light, developing worldOver a billion people are still using kerosene as a primary fuel source, with over 1.5 million dying annually from issues related to indoor air pollution and kerosene fires. For many in the developing world, solar lamps are a new, inexpensive solution to the problem. A recent piece in The Economist hails solar lamps as the next “mobile phone” for the poor, noting that “its spread is sustainable because it is being driven by market forces, not charity.”

In an article for Christianity Today’s This is Our City project, HOPE International‘s Chris Horst interviews two business leaders from the industry who share how their purpose and direction in providing these products stems from a strong missional orientation toward work and a belief in the power of markets.

For Brian Rants, vice president of marketing for Nokero, a leading solar light company, involvement in the industry came after a fundamental transformation in his thinking:

“I am very surprised to find myself in business,” Rants says. “Business seemed to be a backup plan to being a missionary. Or being a pastor like I thought I would be. It seemed like businesspeople were just ‘extras’ in God’s story, rather than lead or even supporting actors.”

Over the past ten years, Rants worked for a number of nonprofits and churches. After going through graduate school, however, he began to discover the ways enterprise is improving the lives of the poor around the world. Rants excitedly joined Nokero, equipped with a restored vision of vocation. Through leveraging his knack for marketing, Rants fights poverty not just through his volunteerism and philanthropy, but inherently through his work in business. (more…)