Posts Tagged entrepreneurship

PovertyCure: Focus on Human Potential, Not Despair

I’ve written about PovertyCure in the past, but in the months since, their mission has taken significant shape. Thus, I thought it fitting to give their efforts an additional plug.

You can start by watching their promotional video, which sums up their approach quite effectively.

Share and distribute as you will:

The newly expanded web site contains a variety of valuable media resources, along with a mission statement and list of key issues that are strikingly on-target. Overall, it’s refreshing to see an anti-poverty campaign so unabashedly centered on human potential rather than human despair — one that seeks to build on truths we know rather than merely pacify or tame social chaos in the immediate.

At the center of all this must be the individual — the sacred human person whose plan and purpose in life needs locomotion, not bandaids. If we see fundamental change on that level, the rest will Read the rest of this entry »

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The Heart of the Entrepreneur: Realizing God’s Provision Through Burgers and Malts

About a year and a half ago, some of our closest friends, Brett and Emily Geselle, started their own restaurant. In the time since, Tommy’s Malt Shop has become a huge success (no small feat in the middle of a recession).

Prior to starting the restaurant, Brett had a successful career in the corporate world. Leaving that path for the high-risk prospect of starting a burger joint was not necessarily the easy, secure, or comfortable thing to do (pursuing the proper American dream typically isn’t). Yet there was something about pursuing the restaurant that made it worth the risk.

Hear their story here (HT):

This is entrepreneurship — and Radical Individualism — at its finest. Brett’s initial vision was not based in a humanistic, materialistic desire for power, glory or wealth, and neither were the actions that brought his dream to fruition. Instead, it was based in the leading of his heart by the Holy Spirit. The subsequent process involved sacrifice, strugglegenerosity, risk, wisdom, diligence, and hard work. That is how God works.

The result: a restaurant that meets community needs while also bringing the Geselles self-fulfillment and a realization of God’s provision. As Brett says in the video, “It has an impact on your heart and it will Read the rest of this entry »

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A Romantic Boom and Bust: The Opportunity Costs of Love

Last week, I explored the degree of risk and uncertainty involved in pursuing God’s ultimate will for our lives. This week, Tho Bishop has a great piece at the Mises Institute that echoes these themes from the angle of earthly love.

Bishop’s primary goal is to show the parallels between Austrian business cycle theory and what he calls an “Austrian romance cycle,” focusing specifically on the element of time.

The comparison makes for quite an enjoyable read.

Here is the gist:

Romance starts with a first move. Just as Austrians understand that it is the role of the entrepreneur to shoulder the risk of capital investment in order to potentially achieve profit, we can understand that it is the role of an instigator to take the risk in the hope of finding romantic success. Without an entrepreneur, economic growth is unobtainable; without someone making a first move, romantic growth is unobtainable.

To demonstrate the similarities, Bishop provides a brief parable about a young romantic named Adam. In the beginning of the story, Adam is interested in investing in a new relationship, and like any good investor, he is trying desperately to convince certain women that he is “worth the risk.”

Becoming a bit impatient with the slow growth of his success, Adam begins to “stimulate” his love life in the same way a government might try to manipulate an economy: by faking it.

Adam has become frustrated by romantic failure. Fed up with his lack of success in romance, Adam begins to tell every girl who will listen that he saved orphans from the rampaging cannibals of Rojinda, climbed Mount Everest, and once out debated Ron Paul on the House floor. Adam has decided to manipulate his “interest rate.” All of a sudden Adam finds himself as the center of attention.

Behold! The impressive splendor and all-encompassing prosperity of the boom! Spending for the sake of Read the rest of this entry »

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Iron Chef Church: Christianity and the Entrepreneurial Mind

Leigh Buchanan recently wrote a piece for Inc. Magazine titled, “How Entrepreneurs Think,” exploring a recent study on entrepreneurial psychology by Saras Sarasvathy, a professor at the University of Virginia’s Darden School of Business. (HT)

The study draws a clear line between entrepreneurs and corporate executives, concluding that the former typically exhibit effectual reasoning, while the latter are more prone to thinking causally:

Sarasvathy likes to compare expert entrepreneurs to Iron Chefs: at their best when presented with an assortment of motley ingredients and challenged to whip up whatever dish expediency and imagination suggest. Corporate leaders, by contrast, decide they are going to make Swedish meatballs. They then proceed to shop, measure, mix, and cook Swedish meatballs in the most efficient, cost-effective manner possible.

But this doesn’t mean that entrepreneurs are wandering aimlessly through life. Their approach is simply not static. Like an Iron Chef, they are highly mobile and highly adaptable.

The distinction here, according to Buchanan, is as follows:

That is not to say entrepreneurs don’t have goals, only that those goals are broad and — like luggage — may shift during flight. Rather than meticulously segment customers according to potential return, they itch to get to market as quickly and cheaply as possible, a principle Sarasvathy calls affordable loss. Repeatedly, the entrepreneurs in her study expressed impatience with anything that smacked of extensive planning, particularly traditional market research. (Inc.’s own research backs this up. One survey of Inc. 500 CEOs found that 60 percent had not written business plans before launching their companies. Just 12 percent had done market research.)

…Sarasvathy explains that entrepreneurs’ aversion to market research is symptomatic of a larger lesson they have learned: They do not believe in prediction of any kind. “If you give them data that has to do with the future, they just dismiss it,” she says. “They don’t believe the future is predictable…or they don’t want to be in a space that is very predictable.”

Jim Manzi, in his commentary on the article, points out that one must make another distinction between risk and uncertainty, with risk being somewhat quantifiable and uncertainty more  Read the rest of this entry »

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Planners and Searchers: Locating Demand Among the Poor

farmer, foreign aid, development, AfricaIn today’s post at Common Sense Concept, I summarize economist William Easterly’s marvelous dichotomy of planners vs. searchers.

Here’s the gist of the contrast:

The planners are the high-level organizers, sitting comfortably in their air-conditioned offices as they crunch numbers and try to plan their way to global prosperity. The searchers, on the other hand, are the folks on the ground, working effortlessly to locate direct needs, collaborate with on-the-ground resources, and create value.

The deeper issue, in my opinion, is that we need not confine such a contrast to matters of economic development. We as Westerners also need to transform our worldview to being that of a searcher.

Here’s another excerpt:

We as individuals, moral agents, and Christians, must become the searchers ourselves. Like an entrepreneur launching a new business opportunity, we need to get as close to the demand as possible. We cannot rely on a “fail-proof” plan for eliminating poverty. We cannot cower to a policy that promises to make the proper transfers on our behalf. Instead, we must expose ourselves to the searching process.

To read the full post, click here.

Read the rest of this entry »

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Charity as Investment: Bill Gates and the Malaria Vaccine

A couple months ago I wrote a post about the recent pledge by Bill Gates and Warren Buffett to give away at least half of their riches to charity. In my post, I noted the potential of such charity while emphasizing that giving away your money is not necessarily as transformative as investing it for profit.

However, if one does decide to divert their resources to charity, the main focus of the discussion becomes centered on whether those resources are being allocated efficiently and effectively. 60 Minutes recently interviewed Bill and Melinda Gates about the targets of their charity, and their responses indicate that their efforts are not lacking in the realm of care and consideration.

You can watch the video here (HT David Henderson):

As the report indicates, the Bill and Melinda Gates Foundation has 850 employees, all of whom are hired to determine “which science or development projects are worthy.” This reminds me of the daunting task undertaken by John D. Rockefeller.

As I’ve already mentioned, we are bound to disagree on where and how we think certain resources should be allocated because we all see value differently. For example, as a Christian, I am particularly concerned with the limits of Read the rest of this entry »

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Q&A with Arthur Brooks: A Conversation about The Battle

Arthur BrooksThroughout the 1990s and 2000s, the term “culture war” was used to describe a variety of public moral conflicts. AEI’s Arthur Brooks sees a new fight taking place in today’s culture, but this time it’s not about guns, abortions, or gays.

This time it’s a battle over free enterprise.

Brooks, who is president of the American Enterprise Institute, successfully captures this struggle in his new book, The Battle: How the Fight Between Free Enterprise and Big Government will Shape America’s Future.

Brooks was kind enough to talk about The Battle with Remnant Culture in this one-on-one interview. I am confident his answers will sufficiently whet your appetite, but I also encourage you to read my highly favorable review if you’re interested in purchasing a copy.

Q: Your primary argument is that we are currently in the midst of a culture war between free enterprise and big government. Why do you see this as a cultural struggle?

The struggle between free enterprise and big government is not about which system is more efficient at producing goods or services. It’s about who we are as a people — about our beliefs and values. It shows what we think about things like fairness, initiative, self-reliance, and accountability. These aren’t economic terms. They’re “character” terms, expressions of culture. Free enterprise is the system that best accommodates these values and beliefs, and this makes the struggle against big government a cultural one. The fact that free enterprise also is the most efficient means of creating wealth and economic growth is a secondary consideration. Though not a bad one, at that.

Q: Explain the concept of the “70-30 Nation.

As I point out in The Battle, Americans are overwhelmingly in favor of free enterprise. No matter how pollsters frame the question, about 70 percent of us prefer free enterprise over big government. The other 30 percent are more inclined toward the statism and redistributionism of Europe’s social democracies. The “hard core” of the 30 percent is made up of the usual suspects — from the worlds of academia, the media, and entertainment industries. And most worryingly of all, it is comprised of a growing number of young people.

Q: If the 30 percent coalition currently holds the “moral high ground” on economic issues, why do they remain at a mere 30 percent of the population?

Well, as we saw in the 2008 elections, the 30 percent has the ability to expand into a majority, on occasion. It was the financial markets crisis that gave them the opportunity to do just that. They developed a “narrative” about what caused the crisis, who was to blame for the crisis, and how government would Read the rest of this entry »

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The New Culture War: Free Enterprise vs. Big Government

The Battle: How the Fight between Free Enterprise and Big Government Will Shape America's FutureThroughout my childhood I was taught to live honestly, work hard, and pursue my dreams. It always seemed pretty generic. After all, it’s sort of the American disposition, which is probably why I never thought to question it.

That is, until I went to college.

From the start of my freshman year, I was bombarded by claims that capitalism was “immoral” and that the pursuit of happiness was selfish, materialistic, and possibly evil. Life was no longer about honing your free will or achieving your dreams, but about outsourcing such “burdens” to the benevolent State.

I had always believed that free enterprise was just and moral simply because it made sense. But here I was, surrounded by smart people, being asked to defend my political beliefs on moral grounds. I didn’t necessarily think I was wrong, but I felt stunned, overwhelmed, and confused.

I found myself in the middle of a moral struggle.

It is this type of struggle that Arthur Brooks hopes to capture in his new book, The Battle: How the Fight Between Free Enterprise and Big Government will Shape America’s Future.

Although such struggles have been going on since the beginning of time, Brooks sees a distinct battle over free enterprise taking place at the forefront of our current political discourse. Now is the time, Brooks believes, for the free enterprise movement to face its enemy (“big government”) head on.

Brooks, who is president of the American Enterprise Institute, is no stranger to discussions of morality and public policy. His previous two books (Who Really Cares? and Gross National Happiness) closely examine such issues with specific focuses on charity and happiness, but this time around, Brooks is not interested in mere social analysis. Above all, The Battle is a call to action.

Brooks begins by diagnosing the country, which he believes is in the middle of an aggressive culture war over the fate of the free enterprise system. Although he claims that the movement retains a vast majority of the American people (approximately 70 percent), Brooks is convinced that the remaining 30 percent have gained the moral high ground and have thus been able to seize the reins of policymaking.

Brooks then moves on to a dissection of the (very) recent financial crisis — a particularly good specimen for showing how capitalism can be wrongly accused (especially on moral grounds). Brooks walks the reader through what he calls the “Obama narrative” of the crisis, pointing out each distortion and fallacy along the way (and there are plenty).

Brooks believes that through a mix of misplaced good intentions, lust for power, and good old-fashioned hypocrisy, the free enterprise movement has Read the rest of this entry »

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Environmental Entrepreneurship: Plastic Bags in Nairobi

When the environment gets neglected, we hear that government needs to take action. When the economy goes down the tubes, we are told that bureaucrats must come to our rescue.

But for Evans Githinji, a 32-year-old entrepreneur in Kenya, achieving prosperity and exhibiting proper stewardship is simply a matter of imagination and initiative. Kenya’s economy is far from thriving, yet Githinji has found a way to both curb environmental harm and bring value to his economy despite his disadvantages.

Hear his story here:

As the video tells us, Githinji’s efforts have led to the opening of 23 collection yards, each of which employs 100 youths in collecting plastic bags.

“I feel great,” says Githinji. “And I feel I’m doing something good for this nation.”

But would it have been better if the Kenyan government had stepped in long ago? Would it have been more efficient if taxpayer money had been poured into dumptrucks and garbage collectors? Would the government have a better grasp on wage rates than Githinji does? Would it be better for Kenyans if the government banned Read the rest of this entry »

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From Poverty to Prosperity: Human Ingenuity and the Triumph over Scarcity

From Poverty to Prosperity: Intangible Assets, Hidden Liabilities and the Triumph over ScarcityLet’s say there’s an apple. I want to eat the apple and you want to eat the apple. Both of us can’t eat the same apple. We can divide it. We can determine who is more hungry. We can figure out who is willing to pay a greater price for it. We can find out who wants the core and who wants the seeds. But no matter how much we deliberate, we cannot share the apple in its entirety.

Economics used to be about how to distribute the apple most efficiently, but the world is changing. Although physical resources remain scarce, human innovation has flourished to the point where we can do much more with much less, and few have bothered to explain how or why.

Arnold Kling and Nick Schulz try to tackle this phenomenon in their new book, From Poverty to Prosperity: Intangible Assets, Hidden Liabilities and the Lasting Triumph over Scarcity. In the book, the authors try to grasp this new way of thinking by terming it Economics 2.0. Where Economics 1.0 saw the market as a means for allocating scarce resources (e.g. apples), Economics 2.0 sees the market as a mechanism for channeling innovation and triumphing over scarcity.

In the beginning of the book, the authors use laundry (of all things) to illustrate the difference. Economics 1.0 would try to explain how it might be more efficient for you to outsource your ironing to someone else. Economics 2.0, on the other hand, doesn’t look at the tangible items in the equation (the number of shirts, the cost of an iron, the cost of dry cleaning, etc.). Instead, Economics 2.0 is primarily concerned with the potential for innovation. For example, what about permanent press? What about wrinkle-free shirts?

As the authors explain:

Thanks to technical progress, many shirts today do not need to be ironed at all. Perhaps in another decade or two they will not need to be washed. Given the likely progress of nanotechnology, there is a good chance that shirts manufactured in 2020 will be ‘permanent clean.’ That’s Economics 2.0.

Another way to look at this is through what Kling and Schulz call the “software layer” of an economy. While Economics 1.0 is concerned with tangible inputs like labor and capital, Economics 2.0 is concerned with the intangible factors, such as collective intelligence, the existence of property rights, and levels of corruption. You can have all of the right hardware for a Read the rest of this entry »

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