Where do you place your confidence?  Government, private business, newspapers?  Gallup has an annual Confidence in Institutions Index which has been tracking a very similar question back to the 1970s.  Today they released an update for July 2010.  While the headline numbers are mostly about confidence in Congress (ouch - 11 percent) and the Presidency (down 15 percent in a year), what always strikes me in this research is how difference small business and big business are rated.  In 2010, when asked "Now I am going to read you a list of institutions in American society.  Please tell me how much confience you, yourself, have in each one -- a great deal, quite a lot, some, or very little?," the second highest response in terms of confidence was small business with 66 percent while big business was scraping near the bottom with 19 percent confidence.

In a survey of youth in 2007 (and actually in earlier iterations), we ask a somewhat similar question, "How much do the following help make your community a better place?"  More details on the survey available online but I don't think we published these tables broadly.

	A lot	A little	Not at all
Small Business	32%	59%	9%
Big Business	22%	57%	22%
Government	19%	57%	24%
Individual People	55%	40%	5%

We are in the field with an update to this youth survey so we'll see how some of these things have changed among America's youth in the last three years.  In comparing the two questions and populations, it's interesting to see the only group the youth tended to have different views of in comparison to ther others is the role that individual people play in making their community a better place.  While I realize the phrasing of the two questions is different - confidence vs. making community a better place - I would argue that the two questions really are trying to get at similar things.  While Gallup doesn't include individuals in their categories (as they really aren't institutions), it looks to me on reading that some of the confidence that adults might have in small business is really a confidence in the power of individuals.  Additionally, it looks like the conception of small business being different from big business is something which must emerge after youth.  

I had a great conversation with Carol Corrado at the Conference Board last week in the neighborhood of this topic that was sparked by a Business Week article and some responses from colleagues/grantees at Kauffman.  I'm not going to jump into that full discussion but the thing I did want to raise with my post here is that there is no doubt that both small and big business play important roles in the U.S. economy, indeed wealth creation can only come through private businesses.  Carol's point, I think, was that we really don't have a fully-conceptualized picture of the roles, particular how big business is often supportive of small business.  I won't dispute that (and I hope our data infrastructures and conceptualizations can continue to advance so that these questions can be quantified).  But the polling continues to show the picture people get when thinking about the little guy is very different than when thinking about big business. 

	Dale - 8/9/2010 8:42:22 PM
	Excellent point, I know my confidence is in my small business. When I think about it, and look at the numbers that I post vs the numbers that huge companies can post, profit vs volume, or net vs gross, I am blown away at how slim the margin is on traditional huge corporations. My small companies are growing into these kind of sizable corporations, but will *not* be riddled with these kinds of inefficiencies ever. I know in my place this is a blessing, but it doesnt seem that traditional big corporations have room for innovation and creative thinkers who can make processes more efficient. There is a corporate structure and the innovative thinkers don't necessarily end up with the authority they need between different departments to streamline processes, in some of these giant corporations. But I know that my entrepeneurship is going to grow larger than most of these companies, and I am by no means cursing my own with this scenario.

	James Murray - 8/24/2010 8:19:48 PM
	Steps for Lifting the American Economy out of the Current Recession In order to improve the current economic climate, I believe everyone must sacrifice and pull together to get through these tough times. Making sacrifices is never a well-received option, but it is certainly necessary during this situation. First, I propose that fuel prices be raised by $1.00 per gallon. This increase would give the government funds to make much-needed repairs to our infrastructure, as well as encourage the development of more fuel-efficient vehicles. Second, I believe we should remove the toll roads that are slowing down our progress. If today we were to build a country from the ground up, a great transportation system would be one of the most vital objectives. How can we ask American companies to compete with the best companies in the world while they’re facing literal road blocks? The importance of efficient, successful trade routes is illustrated throughout history, including when Christopher Columbus and the Queen of Spain combined efforts to discover better trade routes. Another opportunity for changes lies in the auto insurance industry. Today, the cost of insurance is a major factor in the car buying process. Insurance prices are now so high that many people do not have the necessary insurance, particularly in the Philadelphia region. I believe this problem could be solved by instituting a policy where insurance companies bid on areas to insure and by having a portion of the gas tax mentioned above go toward a minimum insurance in those areas. Consequently, people who wish to drive a gas-guzzling automobile or drive a great deal will have to pay more for insurance. The mortgage industry is yet another area that requires our attention.To prevent thousands of people from losing their homes, I believe the banks must lower the interest rates. People with good credit scores should be given an introductory rate of 3%, with a maximum increase of 1%. These homeowners should also be given a one-month grace period that would be made up after two years time. I also believe the government should recast our mortgages so we do not have to pay fees to the banks. This will in turn put money into the hands of the people who have not overextended their finances, thus encouraging the purchase of rental and investment properties. Lastly, we must put people back to work. Small businesses are the biggest employers in the country, and we need to help more of these companies get started. We have a wealth of great tools that are used to build businesses, particularly computers and television. It is time we use the power of computers and television for more than just entertainment, and instead use them to help build companies from the ground up while also showing the public how to launch their own businesses. Clearly, we can’t expect our economy to change just by spending money; we need to get small businesses started. BUILDING THE GREAT AMERICAN COMPANY Today, television is flooded with shows that explain how to build a house, a gourmet meal and even a perfect relationship. However, where are the programs that discuss information about building a business? Just like a show that illustrates the steps taken to construct a house, I propose a business-building show that starts from the ground up. First, finance, marketing, economics and engineering students would be recruited from the nation’s best colleges and universities. They would then be challenged to present ideas from their respective areas of expertise in order to form the company’s building blocks. Next, a panel of experts drawn from today’s top companies would scrutinize the each idea “block” for soundness. The panel would also provide insight regarding the which idea blocks provide the most successful concepts for the construction of the business. The ideas presented during each episode would be voted on by the home-viewing audience, with the winning concepts then adopted into the business model. With each episode, each block would be put into place and another part of the next Great American company constructed. Building America strong together! With your help we can achieve it! Frequently Asked Questions Q. Where did you get the idea for this show? A. In the aftermath of 9/11, then-president George W. Bush spoke with the American public and encouraged us to keep our economy going by spending money. The United States is one of the most competitive countries in the world, and no one outspends the American public. During the past few years, many Americans have paid off their credit card debts with the equity from their homes thanks to the rapid increase in home prices. This large increase in home equity led people to feel comfortable about spending. Unfortunately, many people now have two mortgages and have on average $12,000 in credit card debt. At the time, it was good for the American public to have this extra money so we could keep spending and keep the economy going. We are now at a point that people are going into their 401K plans and paying down their dept. Now, I hear people believe we must go after the mortgage companies because they loaned money to people who should not have qualified for loans. I ask, how can we go after the mortgage companies now? These are the same companies that loaned money during the past eight years, causing the value of our homes to rise. We must remember supply and demand. Q. What are some things we can do to help the economy? A. In order to grow the economy, we need to spend money and create jobs. Unfortunately, few people currently have money to spend. As I mentioned above, small businesses are the biggest employer in the United States, but they’re facing a variety of problems. For every ten businesses that open, seven go out of business in as little as four years. By creating a television show like the one outlined above, not only will we be building a company, we will also be showing thousands of people how to create their own businesses. Ideally, I would like to see one of the big three sponsor a show like this to help the American people get back on their feet. Instead of letting the government give us other people’s money, let’s do something to keep this economy going. It's also vital for our government to make it easier for ideas to become reality. Thousands of American have great ideas—take Google's 10∧100 Project for example. With just one look at this unique program, it's easy to see how many people are working to get their ideas off the ground. It's often said that necessity is the mother of all invention, and it's during trying times like this when the best and brightest minds emerge. Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime. Chinese Proverb Education Here are just a couple ideas to make learning fun. Using Math and Science to Fight Child Obesity By James Murray 1. Like most parents, I am concerned that my children are healthy and receive the best education possible. Unfortunately, childhood obesity is currently one of the biggest health issues plaguing our nation. Some people are battling this problem by cutting back food serving sizes; discouraging McDonald’s, Burger King and other fast food establishments from serving children foods high in fat content; and urging food packaging companies to reduce the sizes of their portions. Recent news has also focused on people who believe we should tax companies who produce fatty and/or unhealthy food. Proponents of the tax, which is often referred to as “fat tax,” obesity tax” or “snack tax,” believe the consumption of junk food would decline if children would no longer be able to afford to buy it. Despite these claims, I for one do not believe we should blame or penalize the food companies or anyone else for our children eating too much or the wrong types of foods. Instead, I believe we can use the massive popularity of video games to help our children fight obesity and learn. To achieve these results, I have envisioned a distinctive type of video game that incorporates both pedometers and school textbooks. Many types of games could be created from this concept, thus appealing to a variety of ages and interests. For example, one particular type of this game could deal with car racing. As a child begins to play the racing game, he or she would be placed behind the wheel of an imaginary car and have to navigate a local race track. Unlike conventional video games that rely on the player’s experience, this unique game relies on the use of a pedometer. In order for the child to become more competitive and unlock features of the game like new tracks and more powerful cars, he or she would have to clip on the pedometer and go burn some calories. The pedometer would monitor the amount of energy used by the child—the more calories burned off, the better power, cars and tracks become available. In addition to the pedometer, each game would also contain a bar code reader to be used for studying. Once the game is switched from activity mode to learning mode, a parent would then swipe the bar code from the back of one of his or her child’s textbooks. A menu would allow the parent to select the particular chapter that the child is to review, thus creating video game questions based on the textbook material. The questions would pop up on the screen, giving children the opportunity to learn the material as they answer questions and progress through the game. This exciting video game creatively combines math and science to encourage both physical and mental activity in our children. Though this idea is still in the initial stages, I feel it holds great potential. I would appreciate your feedback as to how together we can make this concept a reality. 2. When my kids were young I would have them in our mini van and notice that they didn’t even have to see the name on the bike we were driving by and they would shout out the name of the bikes. My thought on this why not have bike with just molecule on them like that of Hydrogen and in this way they would know get to know the structure and even it’s place on the periodic chart. Littering I think the signs on the side of the road that are posted with the fine amounts are litter. What I would like to see is school art class competitions where students would make up signs for anti littering and they would be placed around their local town for a year. One idea I have for a sign would be a drawing of a young child around 4 years old with toys spread around the room and you can tell by the look on his or her face that they were just told to start picking up the toys. The caption above would read Welcome to Lumberton please don’t litter I have enough to pick up! Thanks Jim Murray Lumberton NJ 08048 609 518 -3552 E mail jjmjr27@msn.com