America is not all about mega-corporations

Guess who else is important? Small businesses.

4. America is not all about mega-corporations. What do you see as the role of small business in the American economy and in the global economy?

Until 1980, I don't think people really understood the role of small business in an economy. A study was done at that time that showed that if you really wanted economic growth as measured by jobs, new products and services, small businesses are the key. Around 70% of the new jobs and new products come from small businesses. So in the future if one wants to grow the economy on a sustained basis, it is going to be through entrepreneurial ventures. Five years ago, Germany looked at their education system and its contribution to economic growth. Most of the schools in Germany were government sponsored except for one private school which had a course in entrepreneurship. Up until then, Germany had thought that it is the Mercedes, Siemens, and Deutsche Bank that were the drivers of its economy. But they had a rude awakening, it was the role of the small business, typically the DM25 million to DM50 million business that had contributed to growth – be it growth in jobs, new products or overall economic development. Therefore, they instituted professorships in over 25 universities to teach entrepreneurship. I am sure that this is true of anywhere in the world, be it Europe or Japan or Africa.

How about that? And now universities are teaching global entrepreneurship instead of entrepreneurship. Read the entire interview with Dr. Robert Hisrich from Thunderbird School of Global Management here.