7.5 million reasons not to call your rival the Taliban
– Cynthia Hsu is a contributor to FindLaw’s Free Enterprise blog. FindLaw is a Thomson Reuters publication. This article originally appeared here. –
With the down economy, businesses these days are trying everything to get an edge. But whatever you do, be wary of defamation laws. For example: calling your rival car dealership something akin to the “Taliban Toyota” might just end up costing you millions.
That’s exactly what happened in the case of Bob Tyler Toyota of Pensacola, Florida. Employees at the Toyota dealership spread rumors and slurs about Shawn Esfahani, the owner of the Eastern Shore Toyota in Daphne, Alabama. They told customers that he was funneling money to insurgents. And that he was an Iraqi terrorist.
Esfahani is actually a naturalized U.S. citizen who is from Iran. The Taliban are an extremist group originating out of Afghanistan and Pakistan.
Esfahani brought a suit against Bob Tyler Toyota, alleging defamation. He prevailed. A jury deliberated for three hours before handing down their verdict: $2.5 million in compensatory damages and $5 million in punitive damages.
While Bob Tyler Toyota was trying to get ahead of their competitor, they were unfortunately running afoul of the law.
What should businesses know about defamation?
Is ‘Occupy Silicon Valley’ next?
– Connie Loizos is a contributor for PE Hub, a Thomson Reuters publication. This article originally appeared here. The views expressed are her own. –
There it was on Craigslist – an ad for “young, successful professionals living in America’s most emerging area, Silicon Valley,” ostensibly posted by a “major cable network” that’s looking to cast a Silicon Valley reality show.
No wonder. While many Americans are suffering through an abysmal economy, Internet startups seem impervious to bad news of any kind. Valuations have been rising for several years straight; companies like Zynga, Facebook, and Twitter are minting millionaires left and right; and many young outfits can’t hire skilled, highly paid software engineers or salespeople fast enough.
To get the picture, one only need look to the invitation-only, tequila-fueled industry party that entrepreneur-investor Sean Parker hosted two weeks ago. Split-roasted pigs, Dungeness crabs, and sashimi bars were a mere warm-up to nationally known musical acts like The Killers.
Silicon Valley has much to celebrate. It has the most highly educated workforce in the nation and boasts the highest economic productivity – almost twice the U.S. average, according to the Bay Area Council Economic Institute (BACEI). It also deserves kudos for creating the social media tools that have been empowering revolutions around the world.
But Silicon Valley sometimes seems as tone-deaf as Wall Street to the economic straits that most Americans face, and it’s in for a “shock,” says renowned Silicon Valley futurist Paul Saffo. He likens the Valley’s view of economic protests like Occupy Wall Street as “storms in other men’s worlds.”
“Because (Silicon Valley) has such a monomaniacal obsession to innovate, people tend to overlook things,” observes Saffo. It’s even easier to lose perspective, given that many in Silicon Valley are a part of the top 1 percent that accounts for 24 percent of the nation’s income and 40 percent of its wealth.
Even OccupySiliconValley materializes, it would seem more important to recognize that this is one sector of the economy that is creating jobs, and even more important to figure out how to extend the opportunities beyond the Bay Area. Articles like this just divide people further by making doomsday scenarios seem inevitable in the face of actual bright spots in the economy.
Exclusive: Small business backs Obama, not Democrats: poll
The Obama administration has hurt small businesses but the president still leads in backing among current 2012 election candidates, a new survey found.
Some 63 percent of small businesses said the administration’s policies had been damaging to small business, while only 16 percent indicated they had benefited, according to the poll by Manta, an online community that promotes small business. Some 67 percent were highly unsatisfied with government, with only 2 percent highly satisfied.
Meanwhile, the survey, which queried more than 2,300 small business owners online between August 12 and 29, showed President Obama as the candidate with 21 percent of support, followed by Texas Governor Rick Perry, a Republican, with 14 percent; Texas U.S. Representative Ron Paul, also a Republican, with 11 percent; and Republican former Massachusetts Governor Mitt Romney, with 9 percent.
“What’s happening now is that the individual plays as large a role as the party,” said Manta CEO Pamela Springer, adding that candidates “are trying to separate themselves even from their party, as there are so many independents out there. And the independent vote is very, very, very critical.”
Some 32 percent of owners polled in the Manta survey – the largest group – said none of the candidates supports small business, while smaller percentages backed Michele Bachmann, the U.S. Representative from Minnesota and former Alaska Governor Sarah Palin, both Republicans and Tea Party candidates.
The Republican Party still led in overall support by small businesses, with 23 percent backing, but the Democratic Party trailed by only 2 percentage points. The Tea Party had 17 percent of support, the poll said.
When asked what about policy priorities for politicians, 38 percent of those queried overwhelmingly indicated unemployment and job creation were their leading worry, while 17 percent said the budget deficit was of utmost concern.
90% of the small businesses contacted , which was 9 out of 10 selected from the DNC contributors list said they support Obama after being contacted by South Side Louie the 10th was on vacation…
6 tips for startups to take advantage of the recovery
– Chris Lynch is vice president of economic development at the Irvine Chamber of Commerce. The views expressed are his own. –
With recent reports the economy is becoming stable and showing signs of upward growth, the question is what are entrepreneurs going to do about it?
The answer is simple, they can take advantage of the upbeat perception that the economy is in recovery and benefit from the opportunities they didn’t have before. The following are some tips on how entrepreneurs can take advantage of the recovery, based on years of experience coaching successful startups.
1. Get a good start on the recovery. Right now the market is solid for proven ventures, but in about 18 months the market will be ready for riskier ventures. This is a critical time for when opportunities will be made, so start making new contacts, solidifying your business model and creating potential business relationships right away. Look into entrepreneurial or business workshops, such as what we provide at the Irvine Chamber of Commerce and the Irvine Entrepreneur Forum. An economic recovery is a good time to capitalize on the optimistic mood of investors and put your business out there in front of the right people. So make sure to perfect a quick elevator pitch and consolidate all your financial information.
2. Take advantage of the opportunities. It’s important for entrepreneurs and startup businesses to pay close attention to the opportunities and general attitude towards investing during a recovering economy. The fact that investors are becoming more willing and openminded towards investing is a good place to start. This means that the money is starting to flow back into venture capital and other investment options. People are looking for new places to put their cash and every entrepreneur should take advantage of the opportunities by getting their innovation out there to potential investor groups.
3. Consider the entrepreneurial landscape for 2011. Successful investors try to anticipate the future of business growth and need to have foresight as to where the demand will come from. They will look for new ideas and industry innovation, from major corporations that have shifted to doing R&D internally, to looking for acquisition of new technologies. A startup business will have to fulfill a demand, and the fewer number of options out there will result in a greater demand. Coming out of a conservative past few years, it’s advantageous to position your business more as a necessity for 2011 and not as a luxury.
4. Consider the hot industries for 2011. While some of the strongest markets of 2010 are going to get stronger, there is still more room for growth. For example, the hottest industries of 2015 probably won’t revolve around the same leading companies of 2010. In 2005, we weren’t looking at Facebook, Twitter or digital streaming entertainment by Netflix. For the most part people were just getting into MySpace and still renting DVD movies at Blockbuster. I suspect the leading companies in 2015 will likewise surprise us since we might just be hearing about them now.
In my opinion small businesses are what is going to pull our country out of the financial crisis we are in – this is very helpful and timely information.
Access trumps ownership in 2011
– Lisa Gansky is the author of “The Mesh: Why the Future of Business is Sharing” and the Mesh Directory live. The opinions expressed are her own. –
Disturbed by the sight of dead Christmas trees lying on the curb after the holiday, Los Angeles-based landscaper Scott Martin had an idea. Why not rent people living Christmas trees?
He set up a website and offered different types of live trees in a variety of sizes. Customers specified which tree, what size and on which day it would be delivered and where. Scott and his team also offered decorations for the trees they rented. After the holiday, each customer selected a day for the tree to be picked-up and Scott and his team even recycled the gift wrap and packaging. The trees were either returned to the nursery to be cared for and sold later or donated. An all around joyful holiday win for the customers, Scott and team, the community and the environment.
Like Scott’s company, many will increasingly focus on sharing as a core part of their offering in the New Year. So here are some to watch out for in 2011:
1. Propel peer-to-peer. Our peers are our customers and our purveyors. The mobile Web, location-based services, inexpensive and pervasive mobile apps, and new sorts of opportunities to access cars, bikes, tools, talent, and more from our neighbors and colleagues will propel peer-to-peer access services into market. I expect we’ll see many new offerings from popup general stores to car-, bike- and home-sharing services. These peer-to-peer structures will inevitably challenge the ‘fleet’ ownership structure of companies like ZipCar and Bcycle. Will they hedge their bets or massage their offerings?
2. Greasing the wheels. Insurance and funding traditionally drive capital investment. But in a world based on access, not ownership, the duration, value, cost and extent of financial services is distinctly different. RelayRides and WhipCar, AirBnB, Roomorama and One Fine Stay are all stellar examples of how new, access-based offers entice and provoke insurance companies and banks to re-think risk, value, customers and deal terms. Stay tuned: 2011 is going to be a year of early winners here.
3. Big brands. Brands with global audiences will get meshy in 2011. We have already seen Daimler, Hertz, Patagonia, Citroen, Virgin, and more enter their markets with access-based offerings.
There are several new peer to peer companies that I found in North America:
http://en.wikipedia.org/wiki/Peer-to-pee r_car_rental
One in particular really focuses on security & trust, JustShareIt. I have shared my car with a friend or tools with neighbors but not to a stranger. They have a good idea with a camera & car sharing within a trusted group.
Tax cuts for the rich bad for small business
– Lew Prince is managing partner of Vintage Vinyl, an independent music store in St. Louis. He is also a member of Business for Shared Prosperity, which has circulated a petition against extending the Bush-era tax cuts. The views expressed are his own. –
As a small business owner for more than 30 years, I have to be reality based.
I budget and make decisions that consider both short- and long-term realities. My company wouldn’t last a week if we kept repeating mistakes.
The Bush tax cuts for the richest Americans were a big mistake. We should let them expire, not repeat the mistake by extending them. It’s an illusion that it will be easier to end them after a two-year extension.
High-end tax cuts haven’t trickled down as job creation. President Bush had the worst job creation record since 1939. The only thing trickling down was economic meltdown, foreclosures, unemployment, business closures and budget cuts.
Contrary to myth, my tax rate doesn’t affect hiring. If I think I can do more business, I hire more workers. The costs of finding, hiring and paying new employees are business expenses. They’re deducted up-front from our taxable income.
We won’t heal our economy by repeating the toxic policies that are harming it.
I love your spirit and logic.
Unfortunately Free Trade, lobbyists and corruption will crush your small business before your children have a chance to pick it up.
You will be saddled with heavy heavy taxes in 2 years while the wise rich will have moved corporate head offices and money laundering off – shore. They now have a 2 year extension to do this and have more choice with free trade.
Extending tax cuts eliminates uncertainty
– Kelly Phillips Erb is a small business owner and practicing tax attorney at the Erb Law Firm in Philadelphia. She is also the author of the popular Tax Girl blog. The views expressed are her own. –
Let’s get a few things straight from the start. I don’t like the so-called Bush tax cuts. I don’t believe in trickle-down economics. And I don’t think it makes good fiscal sense to make the tax cuts permanent.
Yet, as the calendar creeps closer to December 31, I find myself in support of extending the tax cuts.
I know, it doesn’t appear to make sense, but there is a reason. You see, as a small business owner and an attorney who counsels many businesses, I can tell you there is something worse than the fear of higher taxes: the fear of the unknown.
That’s what we have right now.
Uncertainty can paralyze a business. Do you hire new employees now or later? Order more product or wait and see? A certain amount of planning is necessary to ensure that any business runs smoothly. Right now, that’s fairly impossible.
A recent Turbo Tax survey indicated that a majority of taxpayers are not engaging in year-end tax planning due to the uncertainty in the law.
I was thinking earlier today that the current economic environment coupled with the ever aging baby boomers creates a perfect environment for our leaders to further manipulate the populace by their favorite tool, creating fear. The author uses the concept of “uncertainty” as the basis for her decision making. Uncertainty of the future sure sounds like fear to me. So once again our “leaders” promise to create cuts to extend unemployment, tax cuts to the middle class and of course the rich get a huge cut. So we all line up and support this bad plan so we can have abit more “security” in our pocket,it drops our personal anxiety abit and allows us to turn a blind eye that our country continues to spend without the means to pay and from my perspective we continue to allow our leaders to dangle a carrot of security so we can later complain in private about the debt, poor policy ad how “they” whoever they are are ruining our country. I agree with a previous posting that everyone knows the country is broke. Unfortunately all of us are in on it, waiting in line for our portion of the unemploment check, entitlements is the rule of the day, cut someone elses but not mine…uncertainty, fear, its all about each of us wanting our part regardless of the effect on the Nation. Our leaders depend upon it.
Exclusive: Survey says small businesses upbeat about 2011
Small businesses are feeling better about the economy and are looking to grow in 2011, according to a new survey released this week by online marketing firm Constant Contact.
Of the more than 1,400 small business owners that responded to the survey (view full results), 73 percent expected their companies to grow over the next 12 months and nearly 40 percent felt “positive” about the economy over the course of the next year.
“They see the darkness behind them and looking forward they see some light,” said Eric Groves, Constant Contact’s senior vice president of global market development. He added the survey is a “followup” to the Waltham, Massachusetts-based company’s larger spring polling of roughly 4,000 small businesses. Groves said Constant Contact has more than 400,000 clients, predominantly small to medium-sized businesses.
Another key finding was that small businesses remained disenchanted with the Obama administration’s efforts to help, with a combined 51 percent of respondents rating the federal government’s attitude toward small businesses as “very unsupportive” (28.7 percent) or “moderately unsupportive” (22.6 percent).
“They’re looking at this as something they’re going to have to figure out themselves,” said Groves on the challenge respondents face in growing their businesses in a slow economy.
More than 70 percent of small businesses said they had not sought financing in the last 12 months. Of those that did secure financing, just 12 percent said they obtained a loan from the U.S. Small Business Administration – the prime government lending arm to small firms. In order, the most popular targets for funding were: banks (50 percent), family and friends (23 percent), angel or venture investors (13 percent) and Community Development Financing Institutions (CDFIs) at a mere 2 percent.
While 55 percent said they expected to enjoy moderate growth, just 35 percent said they would be hiring over the next year.
from PopTech:
Does our economy make us happy?
By Lisa Gansky
The opinions expressed are her own.
Does our economy make us happy?
The crash-and-burn of the financial system, a prolonged recession, and high unemployment obviously cause us enormous distress. We are forced to ask ourselves, “What can we afford now?”
The collapse has also made many of us rethink what we care about. We're finally asking, “Are all these things we’ve been buying (and probably still making payments on) truly making us happy?”
I started asking myself related questions long ago. Where do we look to derive value? What’s the source? As I talked with people, did research, and listened more intrusively to my own internal voice, I realized that in the process of choosing and buying we are actually being engulfed (essentially consumed), by the stuff in our lives.
With the Economy going to Hell, necessity becomes a Mother.
Bolstering our entrepreneurial ecosystem
Peter Cohan and U. Srinivasa Rangan teach at Babson College and are authors of “Capital Rising: How Capital Flows Are Changing Business Systems All Over the World”. The views expressed are their own.
Since the “Great Recession” began, at least 8.5 million jobs have vanished. How will we create new ones? The answer lies in improving the entrepreneurial ecosystem (EE).
Everyone looks to entrepreneurs to create jobs. The Kauffman Foundation found that firms five years old and younger created most of the 40 million jobs in the U.S. between 1980 and 2005.
Our research offers a broader and more effective way to think about spurring entrepreneurship. We traced the flow of capital around the world and concluded that countries can boost their share of capital by changing the conditions that attract it. Since job-creating startups need capital, a government seeking to add jobs should make a country’s economic soil the world’s most fertile for capital to plant its roots and grow.
Government can manage what we call the country’s four elements of an EE: transparent and efficient financial markets, reliable and effective corporate governance systems, human capital development systems, and clear and supportive intellectual property protection laws. While the U.S. has a world-leading EE, it could do better.
- Immigration Reform: Researchers from Duke University and UC, Berkeley found that between 1995 and 2005, 52.4 percent of Silicon Valley startups had at least one foreign-born founder. Another report in 2007 found that many of the fastest growing technology firms had been founded by foreign-born (and often U.S.-educated) entrepreneurs. Recently, our broken immigration system has stopped many foreign-born graduate engineers and scientists educated here from staying here and starting hightech firms. This needs to change.
- Intellectual Property Reform: The U.S. has had one of the strongest IP regimes of any country, which draws in capital for technology-intensive investments. But conflicts between two goals – promoting competition and spurring innovation – have created a fog of uncertainty. To boost investment in innovation we ought to burn off the fog.
- Financial Market Reform: Our financial markets have veered from their purpose. Accounting for 70 percent of daily trading volume, high frequency traders – whose computers flip stocks after 11 seconds – have helped turn finance into the tail that wags the economic dog. Current congressional proposals may further impede the U.S. financial markets’ most important function – to help innovative startups find risk capital.
- Venture Capital Reform: Finally, the corporate governance resulting from VC-backed startup investing, while harsh for entrepreneurs who don’t adapt well to VC pressure, generally helps bring new technologies to market. Policymakers have slowed startups by imposing higher compliance costs (e.g., Sarbanes-Oxley requirements). The U.S. should add incentives that boost the odds that VC-backed startups can go public.
This is particularly important now because VC returns plunged in the 2000s as the Initial Public Offering market evaporated. As of June 1999, The National Venture Capital Association reported that VC funds earned 83.4 percent 10-year average returns. In the ensuing 11 years, returns have collapsed so far that the average VC fund is expected to report a 10-year return of negative 5.2 percent (through June 2010).
