Here’s what you might have missed among the news about special elections and earthquakes.
Immigrants could play a key role in new business growth according to a new study. The number of immigrants starting companies is growing — from .37% in 2006 to .46% in 2007. While these numbers are small, experts point to the fact that 25% of US tech companies in the mid-nineties had founders from other countries and half of the new tech companies in Silicon Valley were founded by immigrants, including Google, eBay, and Yahoo. This comes on the heels of news that a group of investors is trying to open the door to foreign entrepreneurs. They’re lobbying Congress for a new visa for non-citizens who want to start technology companies. (The Street and WSJ)
Regardless of your political affiliations, Brown and Coakley’s Boston senate race can teach entrepreneurs lessons about social media. A blogger from entrepreneur.com argues that political campaigns are essentially entrepreneurial ventures. She believes incorporating social media into your venture is critical to success, as no election or business will ever be truly local again. Some of the lessons she highlights are: utilize social media to engage your customers by responding to their requests; provide proper staffing — social media success isn’t just about strategy (the Coakley campaign didn’t have a social media champion to spearhead their efforts); allocate your resources effectively (don’t forget to give your social media guru cross-organizational support — social media touches many aspects of your business); just because you’ve innovated once doesn’t make you an innovator for life (the Tea Partiers have now leap-frogged over Obama supporters in terms of social media innovation). (Entrepreneur.com)
Don’t look to entrepreneurs to help with the unemployment rate. A Kauffman Foundation study has found that most entrepreneurs and small businesses don’t expect to generate new jobs this year. Only 8% of small businesses have increased their headcount in recent months and 36% of entrepreneurs have laid off staff. Additionally, 71% of entrepreneurs said that they would not be adding new jobs in 2010. (gaebler)
Only 1 in 10 entrepreneurs get the VC funding they need. Venture capital funding nationwide is at its lowest rate in the last 5 years according to a Thomson Reuters/National Venture Capital Association study released Monday. In 2009, venture capital fundraising from 120 funds totaled $15.2 billion, down 47% from 2008, when 223 funds raised $22.3 billion. (Pittsburgh Business Times)
Photo courtesy of Russell Cox
