Several of my friends have and are starting to expand their business operations into China. Market and economic literacy with China will be, increasingly so, a key component, not an ancillary one of any venture or business in the future.
Here are some highlights – the full article is fantastic
This week’s New York Times brings news of a non-event that is still fit to print: global trade data just out confirm that the size of China’s economy now exceeds that of Japan’s, making China the largest economy in the world save one.
It’s still a fit occasion, however, to pause and consider what this may mean for the world — especially because the average western business person may be assuming too little in that regard.
What they may not expect is that China’s increasing dominance will rewrite the rules of capitalism for everyone.
Note that the prevailing form of capitalism at any time is simply the form being practiced by the most capitalists.
As the center of gravity of global trade shifts toward China, the western style capitalism, with its heavy emphasis on free markets and private ownership, will no longer hold sway.
There are no such circumstances in the 21st century to compel the new number two economy, the challenger economy, to adopt the rules of the dominant one.
We read the news, we accept the fact that China is destined to be biggest. Yet most of us are not willing to see this shift as announcing that the rules of capitalism will evolve, ushering in an era of post-Western economics.
The banks reported that they declined 72 percent of cash flow-based loans, 90 percent of real estate-based loans, and 46.7 percent of collateral-based loans. The quality of cash flow and earnings were cited as the top two reasons that loans were declined, followed by weakening industries and current debt loads.
Here are some of the key questions that were asked in the interview.
- You surveyed 559 private companies, nearly half of which reported $3 million or less in annual revenue. What are their top concerns?
- Your survey shows that banks are more risk-averse than they used to be and they’re relying more on collateral and personal guarantees.
- Many bankers say they aren’t lending, at least in part, because demand for loans is down. But your survey seems to contradict that assertion.
- What about loan approval rates?
- But your survey shows that the creditworthiness of borrowers has been going up, despite the economy.
- You also polled venture capital firms and angel investors, who are often a source of early investment for entrepreneurs. What did you find?
- What does that kind of cautionary attitude mean for the economy at large?
Karen E. Klein is a Los Angeles-based writer who covers entrepreneurship and small-business issues.
Interactive Graph – click to view state by state details.
States are going to be dealing with some prettyÂ significantÂ challenges over the next couple years. It will be very interesting to see how the small business market reacts and responds to the opportunities and challenges that these circumstances present.
State and local governments plan many more layoffs to close wide budget gaps.Â
States face a cumulative $140 billion budget gap in fiscal 2011, which began July 1 for most, says theÂ Center on Budget and Policy Priorities.
Up to 400,000 workers could lose jobs in the next year as states, counties and cities grapple with lower revenue and less federal funding, says Mark Zandi, chief economist for Moody’s Economy.com.
from USA Today: