Thank small businesses for making nation great

As we prepared for the Thanksgiving holiday this year, I was reminded once again how grateful we should feel to live in a country that, over the past 20 years, has economically outperformed the world and helped create wealth and prosperity for so many others worldwide.

Much of that prosperity was realized through the enormous efforts of our nation’s entrepreneurs. At this time - and throughout the year - we need to thank them and celebrate their achievements not only in creating businesses and jobs but also in creating the quality of life and endless opportunities we enjoy in our communities.

The United States leads all major industrial economies in the range and prevalence of entrepreneurship. In 2005, there were nearly 23 million Americans active as owners/managers of a firm, and 12.4 percent of the population had taken steps to start a business.

The "high-growth," or what some call the "high-expectation," entrepreneurs launch firms for the sole purpose of growing them, often selling them and moving on to the next great thing. These firms are the innovators - those who seek to do things better, faster, stronger. These are the software developers, the engineers, the life scientists, the nanotechnologists and the physicians who want to develop a new product, process or service. Best estimates are that there are 2.9 million of these entrepreneurs among the nation’s 23 million. These companies often are smaller, and the payoff they create in terms of jobs, sales and economic outcomes often is longer in coming because the commercialization cycle often takes several years.

In our center, we are privileged to work with both lifestyle and high-expectation entrepreneurs. They make our days and duties varied and exciting. We might meet with a local restaurateur in the morning and a faculty member developing nanotechnology for homeland security in the afternoon. Our conversations in one day might include how to price homemade soaps and crafts and the commercial potential of a weevil-resistant soybean. It’s that kind of interesting diversity and the ability to constantly sit in awe of such creative folks that makes our work so interesting. For that, we are grateful.

Imagine sitting across the table from the folks who first visualized Hewlett-Packard, Google, Genentech or Amgen - all of which started as university spinoffs. Small firms like this have been the incubators of amazing, world-changing ideas. And they all started with an idea developed by a handful of creative minds in communities not unlike ours. The rich research culture of our own University of Missouri has sown a fertile field for these ideas. Our role in helping them to the marketplace is not only a joy for us - it is a privilege.

Now for some sobering statistics:

● Foreign-owned companies and inventors account for nearly 50 percent of all U.S. patents.

● Only six of the world’s most competitive IT companies are in the United States. Fourteen are in Asia.

● Sweden, Finland, Israel, Jordan and South Korea each spend more on research and development as a share of the gross domestic product than does the United States.

● The venture capital industry - traditionally a U.S. strength - is rapidly globalizing, with more than half of the U.S. firms planning to expand into foreign markets, particularly China and India.

● Since 1998, venture capital spending has grown at an annualized rate of 2 percent in the United States compared to 18 percent in the United Kingdom and 40 percent in Japan.

Obviously, the playing field for high-expectation, high-technology and innovative entrepreneurs is changing rapidly. In addition to things moving more quickly than ever before, they are moving on a more global landscape than ever before. The United States is quickly being put in the position of playing catch-up.

We must do all we can in Central Missouri to ensure that our region, state and nation remain competitive. We can start on a regional level, where we will be most effective. After all, innovation is a contact sport, and the more closely we are connected to one another, the quicker and more effective we will be.

In my next few columns, I’ll be sharing some stories of high-expectation entrepreneurs in our community. Their innovations are unique, and their future is promising. And they are right here in our own backyard.

Give thanks.

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