December 18th, 2008
Make the US Small Business Administration Super Venture Capitalists!
We are heading into the eye of a financial storm that has been threatening for months, and inconceivably large amounts of bailout money is being bandied around by the powers that be in the USA, with similar actions taking place in other countries around the world.
Most revenue is generated by small business in the USA and for example accounted for nearly 30% ($4.7 trillion) of commercial spending in 2006. Innovation typically comes from individuals, some of whom grow huge companies very quickly and generate vast tax revenue.
Rather than shoveling money into the crater left by failed and sometimes corrupt banking businesses and their regrettable lending and hedge fund activities, I think we should pump billions into the Small Business Administration (SBA).
Vast numbers of enormously talented people are being shed by businesses struggling to survive. Given a choice of unemployment money or funding for fresh innovation - the tech sector is the shining jewel in the USA’s business crown - this seems a very easy decision.
The USA’s tradition of ‘can do’ get up and go vitality is world renowned. With collaboration technologies we can form networks of experts at low cost, and leverage the benched brainpower out there to forge powerful new entities.
Entrepreneurs run a huge risk striking out on their own; the current SBA should become a funding body and safety net - a collection of mega VC funds (the VC’s are mostly on the ropes in the credit crunch so their pockets are currently empty) watched over by SBA employees drawn from entrepreneurial business.
Only by driving innovation will we help existing small businesses survive and create a vibrant generation of fresh innovators.
It’s far from clear what the US funds appropriated for the ‘bailout’ are being used for.
The transparency engendered in a new generation of business creativity could have a terrifically positive impact on morale, providing great hope and excitement for the future.
I’d love to see the SBA site transformed into a hub of activity, the epicenter and central plank of our economic future.
Shore up the remnants of the machine age business era to help create an orderly transition, but let’s fund a sparkling generation of startups instead of just doling out food stamps!
Oliver Marks provides seasoned independent consulting guidance to companies on the effective planning of 'Enterprise 2.0' strategy, tactics, technology decisions and roll out. See his full profile and disclosure of his industry affiliations.
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