Just as we see the prophet of financial chaos (Costello) challenge the leader of the wait-and-see movement (Turnbull), there are very real signs that the alliance of central bank stimulus packages is bringing back business confidence and creating a three day surge in the US market.
GE is on the way up, and GM says it can get through without a further handout.
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The tech market is stabilising and the stimulus packages are about to drop billions of dollars into consumer pockets to establish a foundation for justifiable consumer confidence.
What have Buffett, Bernanke and Brown got in common with Barack Obama? They all believe that large, globally co-ordinated stimulus packages will create a new market place for small and medium enterprise expansion in the next financial year.
As US Treasury Secretary Tim Geithner has said:
“Lots of things that did not seem realistic in the past are not just realistic but compelling. Forceful financial sector actions are critical to rebuild confidence, restore market functioning, get credit flowing again and bring stability to the global financial system.”
Economic changes drive significant challenges to the attitudes of people who manage and work in small and medium sized enterprise (SMEs), and the general public perception of the role of SMEs in the economy, but there is widespread acceptance that it is this sector that creates the bulk of new jobs for people dropped by the big guys.
It is increasingly recognised that entrepreneurship and the development of a vibrant SME sector play an important role in the generation of new industries and assist with industrial reconstruction, provided that the finance and banking industry move away from leveraging debt and investing in sustainable prosperity.
Under these emerging conditions, every small business should follow the lead of Toyota and ensure that one day a week is spent on keeping the best staff, offering them a longer term perspective, and providing high quality customer service-oriented training.
See also Building Engagement in This Economic Crisis from the Gallup Management Journal.
Dr Colin Benjamin is Entrepreneurship and Strategic Thinking Consultant atMarshall Place Associates, which offers a range of strategic thinking tools that open up possibilities for individuals and organisations committed to applying the processes of innovation, creativity and entrepreneurship. Contact: CEO Dr Jane Shelton.
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