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	<title>Scobleizer&#187; World Economic Forum</title>
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		<title>The real problem with Davos: not enough focus on small business</title>
		<link>http://scobleizer.com/2009/01/28/the-real-problem-with-davos-not-enough-focus-on-small-business/</link>
		<comments>http://scobleizer.com/2009/01/28/the-real-problem-with-davos-not-enough-focus-on-small-business/#comments</comments>
		<pubDate>Wed, 28 Jan 2009 10:33:23 +0000</pubDate>
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				<category><![CDATA[technology industry]]></category>
		<category><![CDATA[Davos]]></category>
		<category><![CDATA[davos09]]></category>
		<category><![CDATA[Small Business]]></category>
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		<category><![CDATA[World Economic Forum]]></category>

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		<description><![CDATA[It&#8217;s interesting the tweets I&#8217;m getting. @semipro writes: &#8220;@Scobleizer have we not come to expect way too much out of those meetings? They never produce anything and are a waste of time and money!&#8221; @spotcher writes: &#8220;@Scobleizer davos is for the good times. there are no solutions to this mess. it has to play itself [...]]]></description>
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<p>It&#8217;s interesting the tweets I&#8217;m getting.</p>
<p><a href="http://twitter.com/semipro/status/1154759836">@semipro writes</a>:<em> &#8220;@Scobleizer have we not come to expect way too much out of those meetings? They never produce anything and are a waste of time and money!&#8221;</em></p>
<p><a href="http://twitter.com/spotcher/status/1154775175">@spotcher writes</a>: <em>&#8220;@Scobleizer davos is for the good times. there are no solutions to this mess. it has to play itself out.&#8221;</em></p>
<p>I disagree with both viewpoints. Davos has many excesses (at least last year. This year things are much more somber) but when you bring many of the world&#8217;s politicians and rich people together you can get lots of changes. On the bus ride here I met a few non-profits who say that Davos is invaluable for them to make new contacts and convince the world&#8217;s rich to support their efforts. Bill Gates&#8217; foundation got mentioned several times on the bus ride in.</p>
<p>But, to me, I still haven&#8217;t heard much about how we&#8217;ll really get out of this mess: create tons of new small businesses. Big companies will NOT pull us out of this mess. They won&#8217;t hire people in big numbers until AFTER the economy starts turning around.</p>
<p>For me this all came to a head after reading Andrew Field&#8217;s pleas for help. Who is he? He runs Printing for Less. <a href="http://www.podtech.net/scobleshow/technology/1155/printing-for-less-in-the-middle-of-nowhere">I interviewed him three years ago for PodTech</a>. Back then his business was a growing one and was the darling of Montana&#8217;s rebuilding economy. Today? His business is under severe strain and might not survive the next few months, <a href="http://www.forbes.com/2009/01/16/small-business-loans-oped-cx_af_0116field.html">he wrote in Forbes</a>.<br />
<a href="http://www.forbes.com/2009/01/16/small-business-loans-oped-cx_af_0116field.html"><br />
Everyone should read his letter asking for a new kind of bailout</a>.</p>
<p>His pleas should be heard. It&#8217;s small businesses like Printing for Less that will pull the economy out of its problems. The problem is that small businesses are getting slammed. Here&#8217;s why:</p>
<p>1. Rich people have had their assets decimated by both the stock market and by Bernie Maddoff&#8217;s ponzi scheme. That makes them far less likely to invest in new, small, unproven businesses. Venture capital was down quite sharply last quarter, which proves this trend too.<br />
2. Housing prices are way down in many communities. That means entrepreneurs can&#8217;t pull equity out of their homes to keep businesses running short term. My mom, to buy a bookstore, took a loan on her home. That would be impossible if she were alive today.<br />
3. Customers have disappeared &#8212; maybe even permanently &#8212; as we all slow down our spending, start saving for the future. That means that many small businesses are struggling to make ends meet.</p>
<p>So, as I walk around the World Economic Forum I&#8217;m asking people &#8220;how will you help out Andrew Field?&#8221;</p>
<p>So far I&#8217;m not hearing a lot of answers and THAT is the real problem with Davos.</p>
<p>I&#8217;ll report if I hear any good ideas. Do you have any?</p>
<p>By the way, I&#8217;m tracking all Davos news over on <a href="http://friendfeed.com/rooms/davos">the friendfeed Davos room</a>.</p>
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