who likes to drive
who doesn’t like to drive
five people don’t like to drive I love
to drive anyone want to guess why
I’m going to be calling on people
okay I’ll answer this one there are
three reasons that I like to drive the
first one is I like being on my own time
I hate rushing to make flight I hate
getting to the airport and missing that
flight and my husband will tell you that
happens often and I like being able to
leave when I want to leave and I like to
be able to drive around when I get to
where I’m going
the second reason I like to drive is I
like to bring my dogs with me when I can
travel and I have big dogs and you would
notice if I tried to sneak them on an
airplane and then the third reason is
the main reason so this is if you look
back here this is where I drove to I
think about four or five weeks ago drove
down to the Houston area after a
hurricane drove around a lot of small
towns this is where I drove two weeks
ago and three weeks ago from
Indianapolis to Kansas City and I
stopped in a number of towns on the way
and then this is where I drove to
actually last weekend from Indianapolis
down to actually this map doesn’t show
you all the places but down to Atlanta
then to a little town called Lumpkin
Georgia
anybody know Lumpkin Lumpkin Georgia and
then up through South Carolina West
Virginia Ohio
I stopped in Dayton and then I went home
to Indianapolis here’s what’s really
interesting right when you drive around
this country and it’s a massive country
right you hear the same thing that you
hear when you drive around Sweden or
India or the Philippines or Iraq and you
hear the same thing also from
communities that are thriving and from
communities that are actually
underserved and are not thriving and you
hear one word
again and again and again jobs right so
in communities that are thriving you
hear people say it’s really great we
have a lot of jobs people are creating
businesses they’re hiring we have a lot
of people coming in and in places that
are underserved and that have high rates
of unemployment and that are of great
concern for all of us
Indiana everywhere people are saying we
don’t have enough jobs and we’re not
getting jobs and what do we do
everybody’s leaving jobs have gone
people have gone and we’re sort of stuck
so it seems like a really interesting
fix right but it’s not so where do jobs
come from so I am gonna call in someone
anybody yes sir
you answered the question six steps
ahead but okay so entrepreneurs so
explain to me how that happens
okay all right so jobs come from people
that create jobs entrepreneurs right and
then the entrepreneurs themselves are
actually self employing right those
people will often start businesses they
expand and through the expansion other
people get hired so you have job makers
or job creators and then you also have
job takers right and so what’s
interesting is jobs feed into and sort
of lay the foundation for what we would
call a virtuous circle right and in this
circle we have an entrepreneur right an
entrepreneur starts a business that
business services consumers so it brings
some kind of value which is benefit
number one through bringing value and
through expanding the entrepreneur may
then hire people so that’s job creation
which brings about income creation or
income generation that’s benefit number
two and then the third benefit is sort
of in direct relationship to our public
welfare and that is that by serving the
market and by hiring and by expanding
entrepreneurs widen broaden and also
basically diversify the tax base right
and so the reason this becomes a
virtuous circle is because the tax base
is what pays for things like roads what
pays for things like good public schools
and it all comes full circle when the
entrepreneur needs to hire right because
good schools mean good potential
employees you can cut a lot of time if
you have good roads right so your
productivity can go up and so that’s the
virtuous circle that we’re very
interested in and so it seems like a
fairly simple equation it’s not right
it’s difficult enough in prosperous
societies it’s much more complicated in
places of crisis right so how do we get
this kind of virtuous circle moving
right if you have a place of crisis
you’re really stuck in a vicious circle
which is you have low employment low
business creation poor public services
because you don’t have a lot of tax
revenue
and that circle sort of perpetuates oh
it’s the opposite of a virtuous circle
how do you basically kick your foot stop
the circle and then get it to spin the
other way right and answers
we don’t have any so think about it this
way if I start a business and let me see
I’m gonna make shoes I like shoes so
let’s say I start making shoes and I
build a factory right or I build a
manufacturing facility and I’m in a
place where there’s a terrorist attack
right it’s going to profoundly affect
what I do and how I invest after the
attack right if I lose my inventory I
have a few options I could just close
the business right I could continue as
if nothing happened and restock and work
with my suppliers it’s very unlikely I’m
gonna do that and the third option is
that I could continue the business but I
could keep less inventory so I would
basically lower my risk exposure in the
event that there were another attack and
you don’t want that to happen because
then my ability to meet consumer demand
also goes down and so that is the kind
of vicious circle that we see in places
that are often hit by terrorist attacks
that are in prolonged conflict but we
also see it in places that have natural
disasters right and that don’t fully
recover so when we think about what we
can do right there’s no easy fix because
entrepreneurs operate in basically
systems very complicated systems they’re
really ecosystems like a pond like a
forest you have big roots you have big
sky and then you have a whole lot of
diversity in between the roots in the
sky and so what that means is hey
there’s no formula to actually get these
places moving to stick your foot in the
door and be we want to really think
about the foundation right so when we
think about ecosystems we want to think
about the ground right and local
businesses local entrepreneurs what I
call the local store is that ground
is the foundation in these ecosystems
and you have to be really careful about
pulling up the ground you have to be
really careful about bringing things in
and covering it and suffocating it you
really want to think carefully about how
to nurture the ground but also make room
for seeds and other things from the
outside to come in
one thing that’s really interesting is
that everything is local and I know we
live in the world of globalization a lot
of people will probably disagree but
when you open a business when I open my
shoe factory and I’m in Bloomington
Indiana I’m going to think about
Bloomington roads I’m going to think
about Bloomington human capital I’m
going to think about storage facilities
access to logistics and shipping
facilities from Bloomington I may be
making shoes to sell in Germany but I’m
actually making them right here right
even if I’m making an app to sell
globally to people that have smartphones
in South Africa and in Kenya and in
China I’m actually still right here
making that app right and so a lot of
the conditions that I’m gonna factor in
to my decision making are very very
local when you start thinking about
areas that have been hit by terrorism or
by disaster or in some places by both
all of the local conditions are going to
drive your thinking so I open a shoe
factory and I’m in an area where there’s
a high risk of a terrorist attack I’m
going to worry about is my insurance
coverage going to be good if I lose
inventory I’m going to worry about what
if electrical facilities go out and I
can’t actually produce for three or four
days that means I can’t sign contracts
to deliver 500 pairs of shoes by next
Tuesday because I don’t know if I can
make them I don’t know if I can hire I
don’t know if I should hire because I
may not have the capacity to produce and
what happens if I have to drive my
inventory through a very insecure region
so all of these things factored into my
decision making process as a potential
shoe factory owner and and may result in
me not starting the shoe factory
starting but not wanting to grow too
much and over commit to production and
in the long run that aggregate that in
the aggregate can actually really
depress local and regional economies so
if we look at where I sit this is me the
entrepreneur and many other
entrepreneurs those are the little
rectangular dots I’m actually embedded
in my local environment so that’s me
in Bloomington in a socio-cultural
context I’m in the state of Indiana so
things like tax policy land policy those
are all going to affect me and then I’m
in a country so I’m in the United States
and then there’s all sorts of industry
and culture and sector cross-cutting
characteristics that are going to affect
my business activity in my business
decision now if you take me and you put
me you take me out of Bloomington and
you put me in Iraq or you put me in
Syria my investment decisions are gonna
be very different right and that’s the
sort of black box for policy makers and
for entrepreneurs because the evaluation
of risk is constant so when we think
about things at the local level we’re
thinking about many things but two in
particular one is risk and the other is
information so what you see is that in
underserved communities information is
actually very expensive to acquire and
information is not always reliable and
so if I have to spend a lot of my time
as a business owner as a potential
business owner thinking about getting
good access to information so I can
understand my market so I can understand
my risk it’s going to cost a lot of time
it’s going to cost a lot of money and so
while everything is local we also have a
few gifts from globalization which is
interesting and so these gifts are
basically technology collaboration and
networks and the relationship across all
three so
it’s now possible for local
entrepreneurs to get basically real-time
access when there’s been a break in the
supply chain so that means if I’m
sourcing something or I’m part of a
supply chain that’s in a place that’s
been hit either by a disaster or a
terrorist attack I will know right away
and I can take steps to compensate right
I will know that I can move inventory
based on where my networks are and so
this kind of information that has
actually sped up just be sped up the
flow of money and business relationships
much more quickly than than in the past
and so this quality this kind of
information is really really helpful the
other thing is that entrepreneurs are
now connected through voluntary
associations through industry
associations I can find out what my
partner’s three hours away are doing and
that kind of network is obviously great
for business right but it’s also really
good for other things and so you can
build security into these relationships
between entrepreneurs firms particularly
growing firms have a vested interest in
rebuilding in resilience and so using
networks across cities and across
regions that are underserved or that are
frequently attacked is actually a really
great option right it leads to
information sharing it leads to
partnerships and a lot of lessons that
we wouldn’t otherwise pick up so the
really interesting thing also about
resilience is that entrepreneurs don’t
just grow in these types of ecosystems
where you have good information you have
low risk and you have the ability to to
nurture them but they also contribute so
there’s a mutually reinforcing
relationship and that’s part of the
virtuous circle so
I’m gonna leave you with a couple of
brief thoughts and then a story from
about two weeks ago the first is that
there’s a lot of smart talented people
in areas of crisis right a lot of people
leave but a lot of people stay and local
people are the people that are going to
stay foreign investment is really great
wooing big companies to come to your
city is also really great they certainly
do create jobs but local residents local
people stay and one two months three
months two years after a major attack or
after a major disaster its local people
that are still doing the rebuilding all
right a lot of foreign investment
actually leaves for example in
low-income countries when the country
gets too complicated and so you really
want to think carefully about what our
policymakers are doing and what we’re
doing when we’re in those positions
about balancing big and small right so
you want again the foundation you want a
lot of small businesses but you don’t
obviously want to have only small
businesses right you want to have
companies coming in and out of where you
are so we’re all responsible for this
virtuous circle we’re all responsible
for creating this ecosystem
one thing that we haven’t spent a lot of
time thinking about and that we’re just
now sort of as a community looking at is
the role that entrepreneurs are playing
in disasters and in post terror
environments when you look at a lot of
terrorist attacks around the world what
you’ll see is that there’s a business
community that shows up right away and
we’ve sort of not paid attention to that
because we haven’t been looking for that
in the terrorist attack in Kenya which I
think people remember in the mall a few
years ago there was a business community
right there right I was and this is the
story I’d like to share with you I was
down in a small town outside Houston a
few weeks ago and brought some supplies
down and and helped a little bit and
found a woman and her husband both of
them small business owners in in the
local community and they were working
day and night 7:00 a.m. to 7:00 p.m.
actually probably 10 p.m. every day on
Sundays and they had stopped paying
attention to their businesses which
weren’t damaged they stopped paying
attention to their businesses and they
set up a full time distribution center
for the local community and when I was
talking to the woman she told me a lot
about what’s going on in the local
community and how they feel like they
might not be a priority with some
nonprofits and agencies and things like
that and so I said well why are you out
here why are you out here sacrificing
money that you could be making
completely taking over your store for
the distribution efforts why are you
doing this and she looked me dead in the
face and she confirmed everything that
I’d already thought but hadn’t heard
articulated so well and she said well if
I don’t who’s going to take care of all
our people
thank you
you
who doesn’t like to drive
five people don’t like to drive I love
to drive anyone want to guess why
I’m going to be calling on people
okay I’ll answer this one there are
three reasons that I like to drive the
first one is I like being on my own time
I hate rushing to make flight I hate
getting to the airport and missing that
flight and my husband will tell you that
happens often and I like being able to
leave when I want to leave and I like to
be able to drive around when I get to
where I’m going
the second reason I like to drive is I
like to bring my dogs with me when I can
travel and I have big dogs and you would
notice if I tried to sneak them on an
airplane and then the third reason is
the main reason so this is if you look
back here this is where I drove to I
think about four or five weeks ago drove
down to the Houston area after a
hurricane drove around a lot of small
towns this is where I drove two weeks
ago and three weeks ago from
Indianapolis to Kansas City and I
stopped in a number of towns on the way
and then this is where I drove to
actually last weekend from Indianapolis
down to actually this map doesn’t show
you all the places but down to Atlanta
then to a little town called Lumpkin
Georgia
anybody know Lumpkin Lumpkin Georgia and
then up through South Carolina West
Virginia Ohio
I stopped in Dayton and then I went home
to Indianapolis here’s what’s really
interesting right when you drive around
this country and it’s a massive country
right you hear the same thing that you
hear when you drive around Sweden or
India or the Philippines or Iraq and you
hear the same thing also from
communities that are thriving and from
communities that are actually
underserved and are not thriving and you
hear one word
again and again and again jobs right so
in communities that are thriving you
hear people say it’s really great we
have a lot of jobs people are creating
businesses they’re hiring we have a lot
of people coming in and in places that
are underserved and that have high rates
of unemployment and that are of great
concern for all of us
Indiana everywhere people are saying we
don’t have enough jobs and we’re not
getting jobs and what do we do
everybody’s leaving jobs have gone
people have gone and we’re sort of stuck
so it seems like a really interesting
fix right but it’s not so where do jobs
come from so I am gonna call in someone
anybody yes sir
you answered the question six steps
ahead but okay so entrepreneurs so
explain to me how that happens
okay all right so jobs come from people
that create jobs entrepreneurs right and
then the entrepreneurs themselves are
actually self employing right those
people will often start businesses they
expand and through the expansion other
people get hired so you have job makers
or job creators and then you also have
job takers right and so what’s
interesting is jobs feed into and sort
of lay the foundation for what we would
call a virtuous circle right and in this
circle we have an entrepreneur right an
entrepreneur starts a business that
business services consumers so it brings
some kind of value which is benefit
number one through bringing value and
through expanding the entrepreneur may
then hire people so that’s job creation
which brings about income creation or
income generation that’s benefit number
two and then the third benefit is sort
of in direct relationship to our public
welfare and that is that by serving the
market and by hiring and by expanding
entrepreneurs widen broaden and also
basically diversify the tax base right
and so the reason this becomes a
virtuous circle is because the tax base
is what pays for things like roads what
pays for things like good public schools
and it all comes full circle when the
entrepreneur needs to hire right because
good schools mean good potential
employees you can cut a lot of time if
you have good roads right so your
productivity can go up and so that’s the
virtuous circle that we’re very
interested in and so it seems like a
fairly simple equation it’s not right
it’s difficult enough in prosperous
societies it’s much more complicated in
places of crisis right so how do we get
this kind of virtuous circle moving
right if you have a place of crisis
you’re really stuck in a vicious circle
which is you have low employment low
business creation poor public services
because you don’t have a lot of tax
revenue
and that circle sort of perpetuates oh
it’s the opposite of a virtuous circle
how do you basically kick your foot stop
the circle and then get it to spin the
other way right and answers
we don’t have any so think about it this
way if I start a business and let me see
I’m gonna make shoes I like shoes so
let’s say I start making shoes and I
build a factory right or I build a
manufacturing facility and I’m in a
place where there’s a terrorist attack
right it’s going to profoundly affect
what I do and how I invest after the
attack right if I lose my inventory I
have a few options I could just close
the business right I could continue as
if nothing happened and restock and work
with my suppliers it’s very unlikely I’m
gonna do that and the third option is
that I could continue the business but I
could keep less inventory so I would
basically lower my risk exposure in the
event that there were another attack and
you don’t want that to happen because
then my ability to meet consumer demand
also goes down and so that is the kind
of vicious circle that we see in places
that are often hit by terrorist attacks
that are in prolonged conflict but we
also see it in places that have natural
disasters right and that don’t fully
recover so when we think about what we
can do right there’s no easy fix because
entrepreneurs operate in basically
systems very complicated systems they’re
really ecosystems like a pond like a
forest you have big roots you have big
sky and then you have a whole lot of
diversity in between the roots in the
sky and so what that means is hey
there’s no formula to actually get these
places moving to stick your foot in the
door and be we want to really think
about the foundation right so when we
think about ecosystems we want to think
about the ground right and local
businesses local entrepreneurs what I
call the local store is that ground
is the foundation in these ecosystems
and you have to be really careful about
pulling up the ground you have to be
really careful about bringing things in
and covering it and suffocating it you
really want to think carefully about how
to nurture the ground but also make room
for seeds and other things from the
outside to come in
one thing that’s really interesting is
that everything is local and I know we
live in the world of globalization a lot
of people will probably disagree but
when you open a business when I open my
shoe factory and I’m in Bloomington
Indiana I’m going to think about
Bloomington roads I’m going to think
about Bloomington human capital I’m
going to think about storage facilities
access to logistics and shipping
facilities from Bloomington I may be
making shoes to sell in Germany but I’m
actually making them right here right
even if I’m making an app to sell
globally to people that have smartphones
in South Africa and in Kenya and in
China I’m actually still right here
making that app right and so a lot of
the conditions that I’m gonna factor in
to my decision making are very very
local when you start thinking about
areas that have been hit by terrorism or
by disaster or in some places by both
all of the local conditions are going to
drive your thinking so I open a shoe
factory and I’m in an area where there’s
a high risk of a terrorist attack I’m
going to worry about is my insurance
coverage going to be good if I lose
inventory I’m going to worry about what
if electrical facilities go out and I
can’t actually produce for three or four
days that means I can’t sign contracts
to deliver 500 pairs of shoes by next
Tuesday because I don’t know if I can
make them I don’t know if I can hire I
don’t know if I should hire because I
may not have the capacity to produce and
what happens if I have to drive my
inventory through a very insecure region
so all of these things factored into my
decision making process as a potential
shoe factory owner and and may result in
me not starting the shoe factory
starting but not wanting to grow too
much and over commit to production and
in the long run that aggregate that in
the aggregate can actually really
depress local and regional economies so
if we look at where I sit this is me the
entrepreneur and many other
entrepreneurs those are the little
rectangular dots I’m actually embedded
in my local environment so that’s me
in Bloomington in a socio-cultural
context I’m in the state of Indiana so
things like tax policy land policy those
are all going to affect me and then I’m
in a country so I’m in the United States
and then there’s all sorts of industry
and culture and sector cross-cutting
characteristics that are going to affect
my business activity in my business
decision now if you take me and you put
me you take me out of Bloomington and
you put me in Iraq or you put me in
Syria my investment decisions are gonna
be very different right and that’s the
sort of black box for policy makers and
for entrepreneurs because the evaluation
of risk is constant so when we think
about things at the local level we’re
thinking about many things but two in
particular one is risk and the other is
information so what you see is that in
underserved communities information is
actually very expensive to acquire and
information is not always reliable and
so if I have to spend a lot of my time
as a business owner as a potential
business owner thinking about getting
good access to information so I can
understand my market so I can understand
my risk it’s going to cost a lot of time
it’s going to cost a lot of money and so
while everything is local we also have a
few gifts from globalization which is
interesting and so these gifts are
basically technology collaboration and
networks and the relationship across all
three so
it’s now possible for local
entrepreneurs to get basically real-time
access when there’s been a break in the
supply chain so that means if I’m
sourcing something or I’m part of a
supply chain that’s in a place that’s
been hit either by a disaster or a
terrorist attack I will know right away
and I can take steps to compensate right
I will know that I can move inventory
based on where my networks are and so
this kind of information that has
actually sped up just be sped up the
flow of money and business relationships
much more quickly than than in the past
and so this quality this kind of
information is really really helpful the
other thing is that entrepreneurs are
now connected through voluntary
associations through industry
associations I can find out what my
partner’s three hours away are doing and
that kind of network is obviously great
for business right but it’s also really
good for other things and so you can
build security into these relationships
between entrepreneurs firms particularly
growing firms have a vested interest in
rebuilding in resilience and so using
networks across cities and across
regions that are underserved or that are
frequently attacked is actually a really
great option right it leads to
information sharing it leads to
partnerships and a lot of lessons that
we wouldn’t otherwise pick up so the
really interesting thing also about
resilience is that entrepreneurs don’t
just grow in these types of ecosystems
where you have good information you have
low risk and you have the ability to to
nurture them but they also contribute so
there’s a mutually reinforcing
relationship and that’s part of the
virtuous circle so
I’m gonna leave you with a couple of
brief thoughts and then a story from
about two weeks ago the first is that
there’s a lot of smart talented people
in areas of crisis right a lot of people
leave but a lot of people stay and local
people are the people that are going to
stay foreign investment is really great
wooing big companies to come to your
city is also really great they certainly
do create jobs but local residents local
people stay and one two months three
months two years after a major attack or
after a major disaster its local people
that are still doing the rebuilding all
right a lot of foreign investment
actually leaves for example in
low-income countries when the country
gets too complicated and so you really
want to think carefully about what our
policymakers are doing and what we’re
doing when we’re in those positions
about balancing big and small right so
you want again the foundation you want a
lot of small businesses but you don’t
obviously want to have only small
businesses right you want to have
companies coming in and out of where you
are so we’re all responsible for this
virtuous circle we’re all responsible
for creating this ecosystem
one thing that we haven’t spent a lot of
time thinking about and that we’re just
now sort of as a community looking at is
the role that entrepreneurs are playing
in disasters and in post terror
environments when you look at a lot of
terrorist attacks around the world what
you’ll see is that there’s a business
community that shows up right away and
we’ve sort of not paid attention to that
because we haven’t been looking for that
in the terrorist attack in Kenya which I
think people remember in the mall a few
years ago there was a business community
right there right I was and this is the
story I’d like to share with you I was
down in a small town outside Houston a
few weeks ago and brought some supplies
down and and helped a little bit and
found a woman and her husband both of
them small business owners in in the
local community and they were working
day and night 7:00 a.m. to 7:00 p.m.
actually probably 10 p.m. every day on
Sundays and they had stopped paying
attention to their businesses which
weren’t damaged they stopped paying
attention to their businesses and they
set up a full time distribution center
for the local community and when I was
talking to the woman she told me a lot
about what’s going on in the local
community and how they feel like they
might not be a priority with some
nonprofits and agencies and things like
that and so I said well why are you out
here why are you out here sacrificing
money that you could be making
completely taking over your store for
the distribution efforts why are you
doing this and she looked me dead in the
face and she confirmed everything that
I’d already thought but hadn’t heard
articulated so well and she said well if
I don’t who’s going to take care of all
our people
thank you
you
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