Top 5 reasons why Michigan needs to embrace risk
The 10th Annual Collaboration for Entrepreneurship event on Thursday drew 1,000 entrepreneurs and investors to Ann Arbor's Skyline High School.
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Annual Collaboration for Entrepreneurship coverage |
The event was an altogether encouraging sign that Michigan's entrepreneurial movement is gaining steam.
A key element of reconstructing Michigan, however, is culture change. Michigan residents are largely averse to risk taking.
It's a legacy of our corporate culture, in which the safe and responsible thing to do was to work for the same company for 40 years. This generated a culture defined by an incredible work ethic and a suspicion towards entrepreneurialism.
"Failure is seen as a scarlet letter out here as opposed to the West Coast or the East Coast, where failure is a badge of honor and tenacity wins, talent wins," said Rick Galdi, president of the Detroit-based Great Lakes Angels investment group. "If you think you're going to hit a home run on your first swing, you're kidding yourself."
Nonetheless, taking risks is essential for Michigan.
Here's my top 5 reasons why Michigan needs to embrace risk.
Contact AnnArbor.com’s Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter.
Comments
PittsfieldTwp
Mon, Jan 25, 2010 : 8:42 a.m.
KJMClark - My point about long term personal weatlh security deals with good times and bad. If you are in your 50's or 60's, you are at a much higher risk of being one of the first cuts compared to someone 20 years younger. Dips in the economy always circle back around so odds are it will happen when you are in this age bracket. I am not there yet, but I am looking ahead to plan accordingly so I don't end up being a part of the common demographic group that was released from my office a few months back. Currently my plan is to always have skills that are in demand (at a compensation rate that is competitive), and perhaps five years down the road, my own business. Good discussion.
KJMClark
Sun, Jan 24, 2010 : 9:45 a.m.
Ed, I'm not sure that follows from the case you pointed out. The ruling itself points out that it's a complicated case. The employee didn't live in California. The employer she left wasn't based in California either. The company she went to *was* in California. So this was a consultant living in Maryland, working for a consulting company there, who wanted to jump ship and switch to a California company, without leaving Maryland. Pittsfieldtwp - I am a GenXer, and I don't read it that way at all. It looks to me like the lesson to learn is that in difficult economic times, very few employers are safe. Particularly when the largest employers in the state make things that run on oil when the world is being hit by one of the biggest oil price spikes in history. If we're thinking about being like California, we should implement more of what they do. They have six income tax brackets, from 1% to 9.3% (http://www.taxadmin.org/fta/rate/ind_inc.html), and a higher corporate tax rate than we do (http://www.taxfoundation.org/publications/show/22917.html). In-state undergrads at UC Berkeley pay about $2000/year less than in-state undergrads at UM for tuition and fees (http://registrar.berkeley.edu/Registration/feesched.html and http://www.finaid.umich.edu/Financial_Aid_Basics/cost.asp). The Tax Foundation ranks California 6th in the nation for combined state/local tax burden, but Michigan 27th (http://www.taxfoundation.org/files/sr163.pdf). The top 5 tax burden states are all coastal states. Reasonable people can read these things different ways. I read that as states with lots of innovation tax the successful more heavily, in part so that innovators who fail have more safety net to fall back on. But let's not forget that coastal states have a natural and historic trade advantage. Trade, including with the world's biggest currency manipulator, is what's killing manufacturing and Michigan, but that trade is helping states like California. And don't forget that many of the the coastal states are being hit almost as hard as Michigan in this recession, as trade *and* manufacturing have been hit.
Bogie
Sat, Jan 23, 2010 : 8:35 a.m.
I agree with G.W. We need to get rid of the elected officials, who dictate (with the tax code) the types of jobs we have in the state (i.e. the film industry). Back off the taxes, and let the private sector flourish!
G.W. Williams
Fri, Jan 22, 2010 : 8:36 p.m.
Yes, we do need to embrace risk, but also need to embrace the fact that there's a lot our elected leaders have to do before job creators start investing in Michigan. The Michigan Business Tax is too high and is sending companies outside of the state and dissuading out-of-state companies from investing here. Our regulatory process is also a job killer. Furthermore, our endless budget cycles, shutdowns and threatened shutdowns send a consistent message that our government is dysfunctional. Finally, we keep cutting education, which only hurts our future workforce. We need to do something different. The Michigan Turnaround Plan, put forth by Business Leaders for Michigan, offers some great options. www.michiganturnaroundplan.com
Frains
Fri, Jan 22, 2010 : 4:56 p.m.
Based on the strong attendance, maybe the sponsoring group for this "annual" conference should consider a similar conference on Labor Day to emphasize the contrast of Michigan's new economy from the old one. To compete in the next decade especially, the state will need entrepreneur-leadership to host public forums frequently as a means of introduction and teaching. Better if those seeking a comfy corporate parent leave the state and seek employment somewhere else... those days of big corporations driving the economy here are over - the new buggy whip industry of diminishing returns.
rugger
Fri, Jan 22, 2010 : 3:53 p.m.
Good thoughts on risk, Nate. Part of culture change means we have to teach business and the meaning of risk in our high schools and universities. I understand that Skyline has a business track. Excellent! U of M has great entrepreneurship classes and not just in the business school, but engineering and information technology. What about the other schools. The ACE committee had a hard time recruiting collegiate elevator pitch competitors with a $1000 prize! We need more entrepreneurship programs at all levels of education.
81wolverine
Fri, Jan 22, 2010 : 2:31 p.m.
I agree with the basic idea here. Changing the attitudes and culture of workers in Michigan will be key. Many of these workers grew up in jobs or in families where there was either a Union entitlement or job security mentality. That won't cut it in an entrepreneurial economy. Things move to fast. Employers in these startup companies want people who solve problems, work hard, are team members, and don't complain all the time about management. I know that some companies that looked at Michigan in the past as a place to move to, shied away from the State because of the attitudes of the workforce. That HAS to change for Michigan to develop an entrepreneurial economy like it once was many years ago.
PformerPfizer
Fri, Jan 22, 2010 : 2:18 p.m.
#6 - What does Michigan have to lose by taking risks? The status quo is yesterday. Pittsburgh embraces Bio-Tech in 90's after demise of steel industry during 80's. The old rules no longer apply. Cahnge and therefore risk are the only remaining options unless you simply want be be used as Hollywood sets for post-appolyptic movies (think mad max)
PittsfieldTwp
Fri, Jan 22, 2010 : 2:13 p.m.
If you are a Gen X or Gen Y living in Michigan and you have been paying attention, you would realize that the greater risk is relying on some employer to provide compensation in your 50's,60's, and beyond compared to providing it for yourself as an entrepreneur. As someone who has lived on the West Coast and in Michigan, I am not sure I agree with the statement in the video that people in Michigan work harder than people in California. On the West Coast there is no legacy mfg industry that has boosted income levels with the help of labor laws. That combined with the extreme high cost of living requires people to work much harder to aquire the same standard of living. I am not saying its better; its just the way it is.