In an economy hostile to small business, how are the most successful small firms surviving?
As former Small Business Administration head Karen Mills showed this year in a working paper published by Harvard Business School, bank lending to small businesses collapsed during the financial crisis and has yet to recover.
Harvard lecturer Joseph B. Fuller sees big problems in the supply chain for labor, with employers reluctant to hire full-time and invest in training workers, and prospective workers unsure of the skills they need to succeed in today's economy.
While the Great Recession is officially over, many Americans are still struggling to regain their economic footing. One way to get our country on a sound path to recovery is a focus on better preparing our students for success in the workforce. So says a new report by Harvard Business School's U.S. Competitiveness Project, "An Economy Doing Half Its Job."
Michael Porter was in the Twin Cities on Monday talking about regional clusters, American stagnation, and the country's failed economic development efforts.
Carla Walker-Miller and Markeith Weldon are both graduates of the Goldman Sachs 10,000 Small Businesses program, and they join Morning Joe to discuss.
Corporate boards lavish them with massive pay packages and politicians venerate them as "job creators." But it turns out that America's business chieftains would rather not create full-time jobs to do what needs doing if they can possibly avoid it, according to the latest annual survey from the Harvard Business School (HBS).
The growing U.S. wealth gap is "unsustainable" and the disparity between the rich, middle, and lower classes is likely only to increase in the near future, a new Harvard Business School study finds. Business leaders also do not expect worker compensation to increase over the next few years, according to the study.
A Harvard Business School survey of nearly 2,000 alumni has concluded that the divide between America's wealthy and lower-income classes is "unsustainable" and likely to feed into a negative cycle of weaker performance and stagnant wages among U.S. employers.
The San Onofre nuclear plant on the California coast is a dark, useless hulk today because Southern California Edison, a private utility, utterly screwed up a $700-million refurbishment project. Home Depot exposed 60 million customer credit and data cards to hackers all by itself, without any government help whatsoever. (In fact, some well-aimed government regulation might have forced Home Depot and other retailers to move to hacker-resistant smart cards long ago.)
Despite an improving economy and record corporate profits, business leaders are skeptical about their ability to compete abroad and downright pessimistic about the prospect of increasing pay or improving living conditions for American workers, according to a new report from Harvard Business School.
Co-authored by high-profile Harvard professor Michael Porter, the report also identified a "troubling divergence" in the economy, in which most businesses are thriving, as are highly skilled workers, yet middle-class and working-class employees are struggling.
The growing income inequality in the United States between the richest Americans and the middle and lower classes is "unsustainable" and may worsen, according to a new study by Harvard University.
A new survey from Harvard Business School paints a worrying picture for the health of small business in America.
While the American economy is adding jobs at a faster pace than at any point since the end of the financial crisis and is growing faster than many of its developed peers, it's still not close to full strength.
Top business leaders foresee U.S. competitiveness eroding but they're less pessimistic than they were and are far more bullish about the nation's corporations than its workers, according to a Harvard Business School survey.
Harvard Business School alumni have turned less pessimistic about U.S. competitiveness and more confident in the country's ability to keep up with or pull ahead of other advanced and emerging market economies, according to a survey released today.
Michael Porter, Harvard Business School professor, reveals the results of a recent study on U.S. competitiveness. What's not going well is America as a place to invest and create jobs, says Porter.
The widening gap between America's wealthiest and its middle and lower classes is 'unsustainable', but is unlikely to improve any time soon, according to a Harvard Business School study released on Monday.
The widening gap between America's wealthiest and its middle and lower classes is "unsustainable", but is unlikely to improve any time soon, according to a Harvard Business School study released on Monday.
The study, titled "An Economy Doing Half its Job", said American companies - particularly big ones - were showing some signs of recovering their competitive edge on the world stage since the financial crisis, but that workers would likely keep struggling to demand better pay and benefits.
A survey of Harvard Business School alumni released Monday reveals a series of trends that are widening income disparities and may be weakening the ability of the U.S. economy to grow in the long term.
Can the U.S. compete internationally? Its companies can. Its workers cannot.
That is the key finding from a new survey of Harvard Business School alumni that delves into their views of the U.S. business environment to see where the nation thrives and where it falters.
A new survey of Harvard Business School alumni reveals that business executives believe the United States' companies are thriving and will continue to do so while the American public suffers, the Wall Street Journal reported Monday.
Harvard study: 41% foresee lower wages & benefits for U.S. workers.
Need more evidence that the U.S. economy is moving on two tracks? A new Harvard Business School study, released Monday, may confirm your fears.
The report, "An Economy Doing Half Its Job," involved a survey of 1,947 alumni. The Harvard-educated business leaders expressed concerns about U.S. competitiveness in the global marketplace. But they were far more optimistic about the future for U.S. corporations than for that of workers, the survey showed.
On the heels of last week's lackluster jobs report comes a new survey of how Harvard Business School alumni assess the current U.S. business environment.
"The survey of 1,947 business-school grads found that 31% believe companies will be better able to compete globally in the next three years, compared with 26% seeing a worse environment," reports the Wall Street Journal. But is even that level of optimism warranted?
In its latest report on U.S. competitiveness, based on an alumni survey, HBS researchers observe: "Labor force participation in America peaked in 1997 and has now fallen to levels not seen in three decades. Real hourly wages have stalled even among college-educated Americans; only those with advanced degrees have seen gains."
The widening gap between America's richest and the middle and working classes is unsustainable and is unlikely to improve a survey released on Monday by the Harvard Business School has found.
A survey of Harvard business grads shows that they "see, on one hand, an uncompetitive K-12 education system, a poor tax code and a broken political system. On the other hand, they see high-quality capital markets, sophisticated management systems, pathbreaking universities and a vibrant environment for entrepreneurs."
Large U.S. businesses are posting strong profits and keeping up with the global competition, but American workers might see wages fall and full-time jobs become more scarce.
Says who? Says a new survey of 2,000 alumni of the Harvard Business School scattered across 73 countries. Title: "An Economy Doing Half its Job."
Massachusetts has created a model based on public-private partnerships, a promising blueprint other states should follow.
Few companies get involved in education to the extent that Southwire has, according to Jan Rivkin, a professor at Harvard Business School. Together with the Boston Consulting Group, the business school recently surveyed superintendents across the nation about the extent to which they collaborate with corporations. The survey found that most school districts receive some form of support from businesses, but it is usually limited to donations of money and equipment.
Georgia-based Southwire staffed a plant with troubled teens, who proved that hard work can overcome hard knocks. In the process they pioneered a model for education reform nationwide.
"It's a remarkable win-win-win. Students are graduating, the school system loves it, the company makes money. It's mutually beneficial," says Harvard Business School's Jan Rivkin, who has closely studied the company's efforts.
Critics calling for regulation of alternative lenders have pointed to high borrowing costs, which often top 50 percent on an annualized basis, and lack of transparency, especially among the brokers many lenders rely on to bring in business. On the other hand, "there are some who say the marketplace is solving the problem," said Karen Mills, former head of the Small Business Administration, in a recent interview. "You have innovators and entrepreneurs coming in, and you don't want to get in the way of this too soon."
Karen Mills' Harvard report on the state of small business lending paints a bleak picture, with the exception of technology.
This working paper by Karen Mills examines the small business credit environment during the recession and in the recovery-focused years since, as well as the impact persistent lending gaps may be having on job creation as a whole. Last, Mills takes a look at the dynamic and fast growing online lending market that has ignited since the recession and how the technology and innovation those entities are driving may change how small businesses and entrepreneurs finance their growth in the future.
Our nation's competitiveness must be built on regional economies, and because there is no "one-size-fits-all" economic plan, regional leaders must base their strategies around the assets and opportunities that make them unique.
Over the last few weeks the economy has sent some mixed messages. We received a good June jobs report, only to have it followed by a downtick in small business optimism.
Is our economy growing? And if not, what's going to jump-start it?
Look to Fargo, North Dakota, for a little inspiration.
The latest political "cliff" crisis is centered on funding for infrastructure maintenance and upgrades, specifically the Federal Highway Trust Fund. A quarter of American bridges are deemed structurally deficient, rail accidents exacerbate road congestion, mobile networks have variable coverage, and airlines are desperate for next generation air traffic control to reduce delays and fuel burn. America's elected officials must not only put politics aside and work together to invest in infrastructure, they should also modernize their frame of reference for infrastructure, with a focus on mobility.
"We do not take an approach—either at the national level or state level—that creates an ease of communications between employers and educational institutions that are going to impart skills and background to potential employees," said Joe Fuller, a Harvard Business School professor and faculty member of the school's U.S. Competitiveness Project. "This is why we have 12 million to 13 million unemployed people and 650,000 job openings in manufacturing right now."
Karen Mills, senior fellow at Harvard Business School, and Matthew Ferguson, Chief Executive Officer at CareerBuilder, talk with Erik Schatzker about the U.S. job market, the roles played by government and the business community in creating jobs, and the challenges for small business to find skilled labor to fill positions needed to grow their companies. They speak on Bloomberg Television's "Market Makers."
Despite the strong monthly U.S. jobs report released last week, it's likely too soon to cheer the positive numbers. In recent years, the number of jobs created has been anything but choppy; for instance, in October 2012 and again in February and November 2013, the U.S. economy generated more than 200,000—enough to keep up with population growth. In December and earlier this year in January, however, that momentum lapsed when job creation dropped to less than 150,000.
It's no wonder Americans remain anxious. In many parts of the country people don't believe they will be better off in five years than they are today. This anxiety shakes the very foundation of the American Dream.
— Karen Mills, Senior Fellow, Harvard Business School
The Indiana enginemaker believes deeply in the anachronistic idea that investing in its community is smart business. Could it be on to something?
"What they're doing is just taking an intelligent self-interest in their community rather than a selfish interest," says Harvard Business School professor Joseph L. Bower, who has studied Cummins.
The effect of unionization on a country's economic competitiveness is of great interest to — and controversy among — economists. Are countries with higher rates of unionization more or less economically competitive?
Dan Cunningham is looking for five or six fellow CEOs who are committed to narrowing the gap between wages and output in their own businesses and who are willing to share best practices with others. Cunningham also wants to partner with business and community leaders who are identifying regional clusters that are poised for growth and global competitiveness.
Cunningham, chief executive officer of the Long-Stanton Group, is fresh off a fellowship at Harvard University, where he studied with professors including Michael Porter, an expert on competitive strategy, and Larry Summers, the former U.S. treasury secretary.
Willy Shih is still worried. Five years ago, the Harvard Business School professor and his colleague Gary Pisano wrote that "restoring the ability of enterprises to develop and manufacture high-technology products in America ... is the only way the country can hope to pay down its enormous deficits and maintain, let alone raise, its citizens' standard of living."
But when IndustryWeek asked Shih to assign a grade to our nation's efforts to reverse the impact of decades of manufacturing offshoring and lost production capability, he answered, "C-."
As Administrator of the Small Business Administration (SBA), Karen Mills spent four years as part of President Barack Obama's senior economic team and a member of his Cabinet, specifically focused on the health and growth of America's small businesses and entrepreneurs. Now Mills has brought her experience as a policy maker—as well as 25 years of experience as an investor and small business owner—to the U.S. Competitiveness Project at Harvard Business School.
Launched in 2011, P-TECH offers students a college degree in an innovative six-year program created in partnership with IBM, which will give graduates first crack at jobs.
Read more on P-TECH in the BCG-Gates-HBS report, Lasting Impact: A Business Leader’s Playbook for Supporting America’s Schools.
Young adults born in the early 1980s held an average of just over six jobs each from ages 18 through 26, a Labor Department survey showed Wednesday.
Joe Fuller, a Harvard Business School professor and contributing faculty member to the U.S. Competitiveness Project, said the report contained no big surprises, but "what this data really says is, if you have less educational attainment, you're more likely to be unemployed."
U.S. manufacturing is on the rebound. And the shale gas energy boom is accelerating the progress, benefiting nearly every manufacturing sector, as well as U.S. consumers and workers, who will reap the benefit of as many as 5 million new manufacturing and service jobs by the end of this decade.
The U.S. Department of Energy announced that it is more more than 60 percent of the way towards achieving cost-competitiveness with conventional generation.
Employers added 113,000 jobs in January, well below the 185,000 economists had expected.
Gov. Jon Huntsman talks with Harvard Business School Professor Michael Porter about the importance of competitiveness and growth in America, and the challenge that No Labels is undertaking to help maintain America as a competitive society.
Airlines for America CEO Nicholas Calio tells Congress that US carriers are a strategic asset of the economy yet "the policies of our own government continue to impede the viability and competitiveness of our carriers."
As CEO of CKE Restaurants, I have firsthand knowledge of the vital role immigrants play in growing U.S. businesses, spurring innovation and creating jobs. Our broken immigration system hurts individual businesses, like ours, that create jobs and thrive on economic growth.
The US shale gas boom has revived the US chemical industry, which is becoming increasingly competitive globally, with access to guaranteed supplies of gas and cost-efficient processes. The question now: will there also be a shale gas boom in China and Europe? And would that undermine the global competitiveness of the GCC chemicals industry?
International education programs do more than advance cultural enrichment; they also are an economic boon to communities that host foreign students and to the students themselves, who improve their job competitiveness.
U.S. states are on the frontline of the battle to improve the bonds between education and business and they are the ones most properly placed to do it, Joe Fuller, a professor at Harvard Business School, told the National Governors Association's education and business summit.
Is America's public-education system adequately preparing its graduates for careers in the workforce? About 100 educators, policymakers and economic-development experts from 22 states and several territories joined several governors Monday in a daylong summit meeting.
Factors like lower American energy costs and higher Chinese wages have caused something of a revival in American manufacturing. But where are the jobs? An interview with Harvard Business School professor Willy Shih.
Abusive patent litigation is a drag on our economy. This may seem like a complex issue, but the fact of the matter is this is a problem impacting businesses and industries of all types and the jobs of the people who work for them.
Evercore Partners CEO Ralph Schlosstein discusses immigration with Tom Keene on Bloomberg Television's "Bloomberg Surveillance."
Thanks to state-sponsored cable/phone duopolies, U.S. broadband stays slow and expensive -- and will probably impede cloud adoption
No matter where you look in the air, outer space and within the depths of cyberspace, these are congested, contested and competitive environments. A recently released U.S. Air Force study scopes out a science and technology vision to deal with these concerns.
U.S. manufacturers are re-establishing their competitiveness globally after a decade-long slide.
Employees at Roper Corp. in LaFayette, Ga., blasted patriotic country music and waved red, white and blue pompoms while they waited for Georgia Gov. Nathan Deal to arrive Friday to recognize the plant's expansion.
U.S. auto sales continue to accelerate, posting the best July performance since 2006 as consumers flocked to dealerships to replace aging vehicles with new models at low interest rates.
The top 25 countries may be the same--albeit in a different order from past years--but this year's Global Innovation Index shows there is no short-cut to successful innovation: it takes continued development of talent, sustained investment, institutional support, and the right mindset.
By 2008, Detroit's "Big 3"—Ford Motor Company, General Motors, and Chrysler—were teetering, and two required federal government assistance to stay afloat. Within three years, remarkably, the Big 3 had turned around by improving competitiveness in quality, design, and cost, as well as through strong, decisive leadership on multiple fronts and improved union relations.
After much misguided hand-wringing about "American decline," Congress has a chance to do something to strengthen the United States at home and abroad.
Competition from China and other low-wage rivals, coupled with fallout from the 2007-'09 financial crisis, has put American wages under such unprecedented strain that they have shifted into reverse -- not merely stagnating, but falling.
Business leaders expect the nation's competitiveness to deteriorate, with companies less able to compete globally, pay workers well, or both, according to a new report released by Harvard Business School.
The Obama administration has put in place programs that attract more production, more investment, and more jobs back to our shores, according to Karen Mills, head of the Small Business Administration.
The central answer to the mismatch between jobs and employment is a 21st-century apprenticeship program.
Contradicting earlier studies, conventional wisdom and politicians' rhetoric, European researchers say that the Internet infrastructure of the United States is one of the world's best and getting better.
Housing prices in Silicon Valley remain defiantly high. New BMWs and Saabs cruise Highway 101. But for the first time there are signs that the current economic downturn is taking its toll on the country's cradle of technology and innovation.
Mass employment is not the fundamental reason we need a healthy and vibrant manufacturing sector. Manufacturing, or rather advanced manufacturing, is essential to the U.S. economy because it is the main source of innovation and global competitiveness for the United States.
A recent government briefing on the H-1B visa program offered facts and perspectives that are usually ignored or overlooked by the media; including from CEOs who use the program.
Michael Porter, University professor at Harvard, talks to Charlie Rose about the United States in the global economy.
Some argue that immigration reform will make more high-tech workers free to come to the US, ultimately improving U.S. competitiveness and job creation.
Cheap natural gas and increasingly competitive labor costs are bringing factories and jobs back to the U.S. Eight ways to win.
After decades of sending work across the world, companies are rethinking their offshoring strategies.
Analysts at AllianceBernstein doubt that solar will ever become cheap enough to compete without subsidies â" and they cite Germany as an example.
For the first time in our lives, the promise of upward mobility -- the core of the American Dream -- can no longer be taken for granted. The top priority for President Obama is to enact policies that support job growth and reduce worker anxieties.
To better understand what actually works to get the economy moving again, the administration should look at the nation's most successful cities and metro areas.
Harvard Business School Professor Rosabeth Moss Kanter joins Bhaskar Chakravorti, senior associate dean at the Fletcher School at Tufts University, to discuss what role government has in fostering innovation.
America has always been a nation of immigrants. Ever since the first colonists came over from Europe, wave after wave of people from foreign lands have moved here in search of a better life. But today, we are turning away the best and the brightest among them, and that is hurting the competitiveness of the United States. That's the starting point of Vivek Wadhwa's e-book, The Immigrant Exodus: Why America is Losing the Global Race to Capture Entrepreneurial Talent, published by Wharton Digital Press in September.
The United States can award special green cards for permanent residency to foreign scientists and engineers or it can give out the visas in a random global lottery, but it cannot do both.
Harvard Business School's U.S. Competitiveness Project aims to engage local leaders, find paths to prosperity
A comprehensive strategy aimed at strengthening U.S. establishments competing in global markets is needed for the United States to boost short-term recovery and long-term prosperity, according to a report released today by the Information Technology and Innovation Foundation.
The chairman and CEO of General Electric outlined five areas where he believes the United States needs improvement: the number of math and science majors should double, the manufacturing sector should increase, globalization has to be accepted, energy independence is necessary, and the value placed on training and education should be greater.
We have waited too long and cut too much to believe that ordinary creativity will be enough to move us once again to the front of the competitive class. We now need to be creative about being creative.
Job creation in the United States is hampered by supply and demand, but not in a traditional sense, according to new research from Deloitte. Specifically, the demand for highly skilled and adaptable workers is accelerating, but the skill set of the country's available talent is either outdated or out of stock, Deloitte reports.
The Energy Department released a new report highlighting strong growth in the U.S. wind energy market in 2011, increasing the U.S. share of clean energy and supporting tens of thousands of jobs, and underscoring the importance of continued policy support and clean energy tax credits.
Daniel Cunningham has a billion-dollar idea for Apple: Start building the iPhone intended for American markets in the United States. The result? A billion dollars in additional profit for the company.
How can America possibly sustain its culture of innovation when assets are so vulnerable to cherry picking by cash-rich Chinese companies? This issue — not last month's unemployment rate — should be the central issue as the U.S. tries to decide who will be its president for the next four years.
The migration of Japanese auto manufacturing to the United States over the last 30 years offers a case study in how the unlikeliest of transformations can unfold.
The United States remains the overall leader in space competitiveness, but its relative position has declined for the fifth straight year, according to a new report.
The United States is still the leader in biomedicine, and holds strong advantages in innovation. But each new study repeats significant warnings--trends that we must reverse.
The new satellite U.S. Patent and Trademark Office planned for the region is expected to streamline the process of protecting innovative ideas that once again have turned this region into a job-creating powerhouse.
The United States is losing its edge in innovation, and needs to implement strong pro-innovation policies as well as education reform, according to a new study by the Organization for Economic Cooperation and Development.
IBM is joining hands with the Lawrence Livermore National Laboratory to develop new technology, products and processes critical to the U.S. infrastructure in an effort to boost the global competitiveness of the country.
Booming U.S. shale gas production has prompted a series of firms to apply for permission to export liquefied natural gas (LNG) from the United States. This prospect has become controversial: some see an opportunity to gain from trade and to shake up global gas markets; others fear environmental damage, higher consumer costs, and lost manufacturing competitiveness.
Where will the next generation of great entrepreneurs come from? David Teten, a Partner with ff Venture Capital, showcases the Venture Capital Access Program, a pilot venture providing women and minority entrepreneurs with access to venture capital.
The Obama administration announced a $26 million multi-agency Advanced Manufacturing Jobs and Innovation Accelerator Challenge to foster innovation-fueled job creation through public-private partnerships.
Professor Michael Porter joins a roundtable discussion on a potential Romney administration, Wall Street regulations, and the fundamental issues facing the US as a worldwide economic competitor. The 7-minute conversation on competitiveness begins at about the 8:40 mark of the video.
China could become the world's largest trade nation in a few years and the largest overall economy by 2030, according to the World Bank. If the United States is to retain economic dominance, it must aggressively promote entrepreneurship in order to bolster idea innovation, productivity and job creation.
Former Secretary of State Condoleezza Rice said Tuesday that failures in education pose a threat to America's national security and to the country's leadership in the 21st century.
Everywhere you look around the world we see investments in the future which recognize what the 21st Century will look like, says former Intel CEO Craig Barrett. Isn't it about time we did the same? Instead of cutting back our funding for education and research, shouldn't we be doing the opposite?
Focusing on incremental ways to encourage entrepreneurship in the United States will help create jobs and great returns for investors fortunate enough to invest in the next generation of world class companies, writes David Teten.
Innovation, the classic basis for U.S. success in world markets, rests on foundational institutions, such as research centers, incubators for entrepreneurs, and skills training vehicles, that provide fertile soil in which to seed, grow, and renew enterprises, writes Professor Rosabeth Moss Kanter.
America's new energy reality requires a new way of thinking and talking about the country's improving energy position and how to facilitate this growth in an environmentally sound way--recognizing the considerable benefits this will bring in an era of economic uncertainty.
America's new energy reality requires a new way of thinking and talking about the country's improving energy position and how to facilitate this growth in an environmentally sound way--recognizing the considerable benefits this will bring in an era of economic uncertainty.