Posts Tagged ‘Entrepreneurs’
Representation
America’s business sector is based on the entrepreneur. High tech engineering/manufacturing companies form the basis of innovation for tomorrow’s technologies. I think it is odd that these companies do not have a voice. Our Country favors large manufacturers because there seems to be a myth that large manufacturers represent the largest sector of new job formation. That’s incorrect. Without new technologies and new products developed by entrepreneurial companies, large manufacturers can’t exist, or if they exist, they do so only for a short time.
So, where is the voice of the small high tech engineering/manufacturing company? News Flash … there is no voice. There is no representation. How can our Country continue to be a leader when our political leaders don’t have a clue what obstacles face growth of high tech manufacturing & innovation in the United States.
FYI … Chambers of Commerce represent service sector business. Only a few Chambers will even consider high tech engineering/manufacturing companies, especially the entrepreneurial ones. For example, the Boca Raton Chamber of Commerce (Florida) openly discourages high tech manufacturing members because most entrepreneurial high tech engineering/manufacturing companies hire lower income employees which increases traffic from lower income regions.
Doesn’t seem fair … when will high tech engineering/manufacturing companies have representation. How can political leaders truly learn what obstacles face this important sector of our economy?
How often have you heard … if you need production funding, go to a bank? Well, banks and entrepreneurs just don’t work. Banks look for steady growth, and entrepreneurs by definition either grow explosively or die, but steady growth isn’t entrepreneurial. So, where does an entrepreneurial high tech engineering/manufacturer go for funding? Pretty much limited to venture capital. And where do you think venture capitalists go when the economy isn’t good? If you can tell me where they hide, let me know!
One of the most basic obstacles facing high tech engineering/manufacturing US-based companies is lack of capital. I think the feds know that, however their answer shows just how little they know about this business sector. Our government set up an agency called the Small Business Administration (SBA). And guess how this agency doles out money? Through Banks! The SBA claims they are understaffed and as a result depends on the qualification and eligibility programs instituted by local banks to qualify an entrepreneurial company for an SBA loan. Another government system that is broke!
It would be great if our government can figure out a way to directly fund small entrepreneurial high tech engineering/manufacturing companies without depending on banks. Interesting note, one Florida based bank requires a minimum of 3 years exponential growth before even considering a loan application, and by the way, that loan would be with a personal guarantee by the owner or owners of the company. According to the banker, the only companies they have even considered were legal/attorney firms. There’s an example of a service sector business that does well regardless of the economy!
