If you own a business or work in one, you know that business is all about business. It may be your job to look out for business opportunities. Perhaps you have employees, but they are part of the business team and directly involved with many business aspects. Regardless, you need to keep abreast of business news and current affairs because they affect business more than just your business. The following is a brief summary of some of the key economic topics of today and some of the current efforts that are being made to promote economic growth and stability.
Economic Development – One of the growing concerns in today’s business world is the vitality of business startups and job creation. Several state and federal programs have been established to aid business development. As mentioned above, entrepreneurs and small firms are seeing more economic opportunities for employment through these programs. As such, entrepreneurs are taking advantage of these programs and making investments in their business ventures.
Entrepreneurship – There has been a recent surge of entrepreneurial activity in the small business sector. Several companies and organizations have created small business incubators over the past few years in an effort to nurture new ventures. Additionally, several universities and colleges offer courses and programs specifically designed for entrepreneurship. These programs and courses allow interested students to obtain a thorough understanding of the business strategies and business development that successful entrepreneurs have used to become successful. While this may not guarantee future success, it does demonstrate the potential for entrepreneurship and provides a great foundation for the future success of small business firms.
Rising Costs of Commercialization – Today’s rising costs of business activities are eroding the profit margins that are typical of the mid-range and larger markets. In addition, the increased cost of labor and materials is making it difficult for small business firms to compete with larger businesses for market share. Because of this, many entrepreneurial hopeful entrepreneurs are turning their attention to developing their own companies instead of attempting to compete with existing companies on the high end of the business climate. However, even if a business fails and a new job opportunity emerges, entrepreneurs can still benefit from this type of entrepreneurial climate.
Central Economic Planning – The advent of the Internet has created a completely different business climate than was previously seen in the early parts of the twentieth century. Because of the Internet, entrepreneurs can now conduct business deals around the globe instead of having to enter into long and expensive business negotiations in the traditional marketplace. Additionally, entrepreneurs have the ability to utilize technology to reduce overhead and labor costs as well as save money on distribution costs. As a result, the business overhead has decreased while the amount of profit has increased. The result has been lower operating costs for business firms, resulting in lower taxes for the government and better economic conditions for central economic planning.
Network Marketing – Another advantage of entrepreneurial activity is the wide range of profit opportunities that exist. Many business firms are not necessarily started as businesses, but as small business operators who discover a profitable niche in a given industry. As a result, when a business fails, a new entrepreneur may find it easier to find other business opportunities in the same or different field. As such, it is not uncommon for a business firm to expand its market share in less time than it would otherwise take to achieve similar results with more traditional advertising methods. As a result, central economic planning has had to change to adapt to changing market conditions.
Direct Government Intervention – One of the primary reasons that business competition has become less feasible in the face of technological change is because of the direct government intervention that occurs in the form of subsidies. For instance, in the case of food processing, the federal and state governments provide subsidies to small firms who process and distribute food products in order to keep the cost of food at affordable levels. Because of this, it has become less feasible for small firms to enter a market where the cost of processing a particular product can be controlled; thereby, preventing inefficient use of human capital and resources.
The existence and growth of business news outlets have also had a significant impact on business competition. As business news publications have increased in size, it has made it less difficult for small firms to enter into markets that were previously too competitive. Small business news outlets tend to focus on topics that directly affect their target markets. As such, they can provide a unique perspective on local markets that cannot be found in larger business media outlets. A good example of this is news coverage of food processing plants, which tend to focus on the costs of running a facility versus the benefits that customers and employees will reap from increased efficiency. Another example is independent online business news websites, which are increasingly becoming a popular choice for small business firms due to their access to unbiased information.