Don McNay Preaches the Virtues of Entrepreneurship

I spend quite a bit of time on these pages railing about the importance of entrepreneurship. Skills in small business (and enterprises in general) will be crucial for millions of American as our economy changes from one that favored big industry to one that smiles more brightly on small business. The reasons are simple: globalization and technology. Our economy is moving away from one that favored capital investment to one that favors human capital.

Don McNay gets that. Here are snips from his most recent op-ed, the entirety of which I strongly suggest folks read:

Every person in the financial world has skills that can be transferred to a business they own. Media people have a “brand name” with the public. Both groups can take the skills honed at large institutions and use them to make their own fortune.

Entrepreneurs in the next generations won’t have the opportunity of training at a large company. They will have to start business for themselves from day one, instead of learning their craft from experienced hands with vast resources.

[…]

In 1900, only 10 percent of Americans worked for large companies. The other 90 percent were self-employed farmers and shop owners. By 1970, the number of people working for large companies reached 90 percent.

It’s been dropping every year since 1970. We are on a steady march back to that 10 percent number. The recent economy is quickening that march.

So what do we do about it? McNay notes that it’s a challenge to prepare folks used to working for a big business to run their own business. But as he says: “it’s a challenge that must be met.”

But how? For starters, we need to get it. I really think that Governor Beshear gets it. (I'm not saying others didn't, but I think he gets it even more.) He preaches the gospel of growing Kentucky companies here in the state rather than recruiting them from elsewhere. If you read press releases from the Cabinet for Economic Development you’ll see that the Guv is relentlessly on message about the need to grow companies organically.

We should build on this kind of attitude. Pols should actively preach the virtues of that funny French word entre-pruh-neur-ship. That’s important. Because an entrepreneur is more than a small business owner. An entrepreneur is someone who creates new enterprises, taps new markets, does things innovatively.

In the legislature there are periodic attempts to promote math and science education in schools. What about entrepreneurship? The Kentucky Entrepreneurial Coaches Institute has long advocated for and actually implemented on a smaller scale youth e’ship programs. It’s time we get serious about these here in KY. Pols could play a vital role in the promotion of e’ship here in the bluegrass. Their bully pulpit and the fact that Kentuckians still look to them to do things to foster economic growth means that they can spread this message with ease.

Further, we should evaluate the myriad economic development programs and agencies in KY to see which ones are and which ones aren’t promoting entrepreneurship. We have to let our children know that they should align their college education with the realities of this new economy. And kids should know that lifelong learning is a must. No matter what entrepreneurial endeavor you launch, odds are it will change, possibly even die, in this rapid new economy. This means that they must be nimble and flexible.

The dinosaurs are becoming extinct folks, but the mammals are rising in their place. Don McNay gets that: “When people decide they’re not going to depend on a big boss to hand them opportunity, it is a liberating experience. Like our forefathers, we have the chance to thrive in an environment where we control our own destiny.”

Cross Posted at the New Economy Census blog.