Recently in Management Category

Watch out, entrepreneurs...here comes corporate politics

"There are two things that are important in politics," Mark Hanna, the great Republican kingmaker of the late 19th century, once said. "The first thing is money, and I can't remember what the second one is."

The Supreme Court has ruled that corporations have a free reign in campaign advertising.  (But bloggers have to tell whether they received a review copy of a book). 

The US Supreme Court threw out regulations that prohibited corporations from buying campaign commercials that explicitly advocate the election or defeat of candidates.

Democrats called the ruling a threat to democracy.

Republicans cheered it as a victory for free speech.

I call it the ultimate case for paid speech.  And I'm a journalist who gets paid for speaking out. Right?  Will multinational corporations take our local concerns into consideration...or their global scale interests?  Who will buy their votes?  Is there any transparency mandated in this corporate sponsorship of political advertising? Do they have to tell us who is influencing their messages?  And who will benefit from their advocacy?  Will the FTC monitor, and regulate their "speech"?    

It has always disturbed me that corporations have ALL the rights of an INDIVIDUAL except voting.  And dying a timely death.  Now we're breaking the barrier that lets them buy votes, so I guess we're close to giving corporate directors the corporate vote.

What I can't understand is how these employees put corporate interests so far ahead of their spouse, children, parents, friends, neighbors and employees' spouses, children, parents, friends, neighbors and small business service providers.  How do they lose their humanity when they sign those big checks?

There are a lot of questions we need to ask...but have you ever tried to ask a corporate director a question?  Did you get through...and get an answer?  

Oh yes, "The first thing that matters is money..."
Entrepreneurial Leaders

Studied over an extended period of time, publicly traded stocks of companies led by entrepreneurs consistently outperform non-entrepreneurs by a wide margin, according to research by Babson Associate Professor Joel M. Shulman, associate professor of entrepreneurship.

These entrepreneurial leadership results ring true even after comparing the entrepreneurial group against non-entrepreneur peers adjusted for industry sector, market size, geographic territory, and time period of study, according to Shulman.

Keep Costs Low
Vigorously Grow the Business

Shulman suggests that because entrepreneurs try to keep costs low while vigorously growing the business, entrepreneurial companies are well positioned to perform better than ever in a sluggish, recovering economy.

Shulman's recent update on stocks for calendar 2009 show:

  • Stocks of entrepreneur-led companies significantly outperform non entrepreneurs (YTD through 12/1/09, 650+ global entrepreneurs are up 93%);
  • Stocks of "bureaucrat" companies underperform non-bureaucrats and entrepreneurs by a wide margin (these are stocks that individuals would sell or sell short);
  • Stocks of entrepreneur-led companies continue to outperform non-entrepreneurs even after adjusting by market cap size, sector, geography, or time period.

Joel Shulman. "Investing in Troubled times: Entrepreneurs Are Your Safest Bet", The Investment Professional, Fall 2009 http://www.theinvestmentprofessional.com/vol_2_no_4/investing-in-troubled-times.html

Babson College in Wellesley, Mass., is recognized internationally as a leader in entrepreneurial management education. Babson grants BS degrees through its innovative undergraduate program, and grants MBA and custom MS and MBA degrees through the F.W. Olin Graduate School of Business at Babson College. Babson Executive Education offers executive development programs to experienced managers worldwide. For information, visit www.babson.edu.

SOURCE: Newswise
Publishe  in the November 2009 issue of The Investment Professional.

Pages



About this Archive

This page is an archive of recent entries in the Management category.

Grants & Funding is the previous category.

Marketing is the next category.

Find recent content on the main index or look in the archives to find all content.