Michelangelo simply reflected on his work, “I saw the angel in the marble and I carved until I set him free.” Like the sculptor, entrepreneurs start with a heavy stone.  We work to shape soft ideas into hard realities. We know instinctively that, as with a piece of marble, the coarser the beginning the more brilliant the potential outcome.

To move from idea to operations, we must combine tenaciousness with energy and, most often, personal savings to overcome flaws. We sketch out our visions. We influence others to put capital at risk. We put extraordinary people to work, helping us carry the rock. We worry about stresses in the technology we build and whether anyone will buy what we have envisioned. 

Like most entrepreneurs, I cannot imagine expending all this energy only to find that we would not be paid for our efforts.

With this in mind, I understand the appeal of recently proposed legislation to the beleaguered community who supported its basic premise of stopping online piracy.  The Stop Online Piracy Act (SOPA) was introduced in the House of Representatives and intended to better enable U.S. law enforcement to reduce the exchange of copyrighted intellectual property and counterfeit goods.  The U.S. Senate introduced a similar bill, titled the PROTECT IP Act (PIPA).

However, I embrace the concerns of the opposition and mostly applaud their collective actions that put the brakes on the overreaching legislation contained in the SOPA and PIPA bills.  A vocal group comprised largely of web companies and venture capitalists successfully opposed the bills on the premise that they go beyond their stated intent, stifling free speech and, ultimately, innovation on the internet.

My early stage business relies on an unencumbered connection to my clients.  What small business doesn’t?  It is questionable if the SOPA / PIPA legislation is dead in light of the current actions domestically and on an international stage. Already underway, the recent expansion of top-level domain name-related extensions by ICANN will likely create a significant disadvantage to early stage businesses due to the insurmountable cost of this program.  This coupled with the movement to create a new international body to oversee internet governance out of the old International Telecommunications Union gives rise to the same innovation-stifling effect of the SOPA / PIPA legislation.  

In the likely event this will be revisited in Congress or, worse, the United Nations, the global start-up community needs to be just as informed as their large company counterparts and join the broader conversation.  Here are some good action steps to consider:

• A good first step is to read the Reddit community’s Free Internet Act online
• A second is to better understand the impact of ICANN’s top level domain program and how these changes could affect your business
• Actively read and understand the renewed effort of the United Nations to play a lead role governing the internet
• The last and most critical step is to take action by reaching out directly to your House and Senate representatives with your clear ideas on how they can balance future legislation

From the ground up, we have an opportunity to inform their discussions so innovative, small businesses are not overlooked in the emerging fray over internet governance.   It starts with us, picking up the point chisel and helping to remove large, unwanted chunks that inhibit our ability to carve out great businesses.    

The views expressed herein are those of the author and do not necessarily represent the views of The Guardian Life Insurance Company of America.

A new program from The University of Georgia Small Business Development Center’s Office of Minority Business Development is doing just that.  The center, located in Athens, Georgia, is sponsoring a Premier Development Program with the goal of providing assistance to existing minority-owned businesses.  The year-long program will begin in February 2012 and include high-powered training sessions and peer mentoring for minority business owners.  This kind of support is not just taking place in Athens, but nationwide, thanks to the U.S. Small Business Administration’s “Emerging 200 Initiative.”  The SBA’s goal is to identify 200 inner-city businesses across the country that show a high potential for growth and provide them the network, resources and motivation required to build a sustainable business.

In addition to the support and mentorship these companies need, a recent article in Entrepreneur.com noted the uneven distribution of capital among small business owners.  Specifically, the article cited a 2009 study by the Kauffman Foundation, which found that Caucasian-owned business have on average more than $80,000 of startup capital, while African American-owned businesses have less than $30,000.  In the article, University of Texas professor, John Sibley Butler said urban cities need to create entrepreneur ecosystems to aid growth in their communities.  To do that he recommends:

• Garnering the support of local academic institutions, government and businesses
• Conducting outreach to individuals who may become angel investors

What are your thoughts on these programs for minority entrepreneurs?  Do you have any other ways to support the growth of minority SBOs in their communities?  Tweet The Institute @SmallBizdomNews to let us know.

1. Evaluate each others’ strengths and weaknesses as business people and your ability to work well together. 

Dr. Greene adds, “The challenge is often to be able to separate personal and professional strengths and weaknesses and admit when one person is stronger (or weaker) than the other. Often it is helpful to have an external voice to evaluate these things.” 

2. Specify your individual professional goals as well as your goals for the business.  Make sure you are both aligned on those goals.

“The most important thing here is to be honest with each other, and to recognize that it is entirely possible that your goals will change over time,” said Dr. Greene. 

3. Designate specific roles for yourselves in the business.

“Don’t be afraid to be innovative with your roles and divide up the tasks in creative ways that fit you and your business.  You don’t have to match anyone else’s org chart,” said Dr. Greene.

4. Keep it professional in the work space.

"Not only for you, but for those around you,” said Dr. Greene.  “You are setting the tone for everyone that works in the business.  You need to respect each other so the others will do the same.”

5. Be diligent in engaging in open, honest communication. Learn to work through disagreements.

Dr. Greene advises that couples formulate a plan for how they will work through disagreements. “Determine what can be done in front of others (and how), what can go home, and what should never go home.”

6. Make time for yourselves as a couple. Make your marriage a top priority.

“And figure out how the rest of the family works into the picture as well,” said Dr. Greene.

7. Establish a game plan on what to do with your professional partnership if your personal partnership dissolves. Dr. Greene adds this final piece of advice for couples to consider.

We also discovered the following infographic by Column Five via the Intuit Small Business Blog that addresses husband and wife business partnerships.

There are nearly 4 million family-owned businesses in the U.S., and more than 1.4 million have husband and wife teams, according to the 2007 Survey of Business Owners. The stress of running a business on top of managing a household can be onerous, and many who are in business with their valentines can attest to the difficulties. The lack of separation, challenge of finding a healthy work / life balance and struggles of being a small business owner can often be overwhelming for couples. For others, they see their spouse as an ideal business partner because of the natural trust they share and commitment in making the business succeed.

So how do they make it work? The Institute spoke with a few married couples to learn their perspective of running a business together and find out their secrets to success.

“It’s essential that you understand the strengths and weaknesses of your partner and that you establish a clear delineation of roles in the business,” said Robert Hochdorf, who co-owns Button It Up, a novelty photography business in Atlanta, Georgia, with his wife Sharon.

Sharon started Button It Up in 1987, spending more than 20 years running the business herself. Robert joined as co-owner of the business in March 2008. He notes that the two did not have a “conscious plan” to become business partners, but that the partnership happened organically. “The two of us working together meant the business could expand, and we’ve been successful in growing the business in the last four years,” Robert adds. 

Barrie Mershon explains that her husband Ric initially started their business, Ric Mershon Photographers, and she joined him after two years. “The plan was that he would run the business solo, but then we realized that my strengths were different than and complimentary to his,” said Barrie.

Denise Rindsberg, president of Let’s Celebrate Events, an event design company that specializes in customized art designs, says one way couples can maintain both a strong partnership and healthy marriage is by having separate hobbies and sections of the business. She explains that her husband Frank runs the tech side of the business while she is in charge of the design and client side. The two have been working together for about 12 years. “We think differently about the business and go about building it differently, which ultimately makes it successful, ” said Denise.   

Some couples find that sharing the responsibilities of operating the business grants them more flexibility as a family.  “Robert devoted a lot of time to the business in the past. It was as if he was working two jobs, so it just made sense that he join the business,” said Sharon. “Plus, it allowed us to be on the same schedule.” Prior to becoming co-owner of Button It Up, Robert worked a typical Monday through Friday, 9-5 job, whereas Sharon spent most nights and weekends working.

For Barrie, she admits that the ease of syncing her work schedule with her husband’s is as much of an advantage as it is a challenge. “We spend far too much time together. The whole, ‘Honey, how was your day?’ question doesn’t often come up with us. We know exactly how the other’s day has been,” she said. “We have learned over the years that we have to schedule dates – even lunches – where business topics are off limits.”

Couples agree that trying to detach from the business after hours is a challenge. “As a small business owner, your business is an integral part of your life,” said Sharon. “But when your spouse is associated with the business, it becomes an even bigger part of your life.”   Robert adds that running a business together with Sharon creates a “commonality of interest and focus” between them. “The constant interaction between us is just part of our marriage, and it works for us.”

Be on the lookout for our follow up post later this week that that provides tips for couples in business together.

1.  Continued economic volatility in 2012.

• Action: Develop and deploy integrated action plans. Dynamic, flexible and proactive short-term and long-term plans make it possible for a business to deal with immediate challenges.

2.  Access to capital will continue to be tight, and lending practices even tighter. 

• Action: Consider where borrowed money can do the most for your business. According to The Institute’s data, business owners responded that the best thing to do with borrowed money is upgrade equipment (91.2 percent), cover short-term cash flow (81.3 percent) and invest in marketing (81.3 percent).

3.  Significant numbers of marginally successful businesses will be pushed to the brink

•  Action: Improve productivity.  A difficult economy presents an opportunity to right-size a company for long-term success.  Small business owners should ensure they have the right people in the right positions so they can focus on growing the business.

4.  Larger companies will aggressively market to prospects considered “too small” in the past.

• Action: Look for ways to meaningfully differentiate. Big businesses are vulnerable to the more responsive, localized and personal way of doing business that smaller firms can offer.

5.  Election-year campaign rhetoric will create an atmosphere of tension and negativity.

• Action: Be optimistic! If small business owners exude a sense of confidence, optimism and focus, their customers and employees will feel it and respond accordingly.

6.  Trade-offs and deal-making will characterize 2012.

• Action: Cut deals that create certainty for vendors, customers and the business.  Now is the ideal time to reconsider and revise business approaches and rethink how each dollar spent helps or hurts the business. Sit down with vendors and larger customers and offer to make commitments in return for price reductions or better payment terms.

For more information on each of the trends, visit The Institute website here.

Find out what the media are saying about The Institute’s predictions for 2012:

• Entrepreneur.com
• Forbes.com
• CNBC.com
• The New York Times
• BusinessNewDaily
• Examiner.com



According to research from Stanford Graduate School of Business Project on Emerging Companies, fewer than 10 percent of high-tech startups have a female CEO, founder or president. And yet, women own about 40 percent of the private businesses in the United States, according to the Center for Women's Business Research.

So why aren’t women leading tech startups? This issue continues to be clouded by complexity.

Certain small business leaders cite lack of access to capital. Women-owned startup companies tend to start with less capital than male-owned startups, according to research by the Ewing Marion Kauffman Foundation. However, the first and second quarter of 2011 brought some good news for women entrepreneurs seeking capital. Recent findings by the Center for Venture Research at the University of New Hampshire report that 26 percent of women entrepreneurs seeking angel investment in the first half of 2011 received it, which is above the overall average.

Dr. Patricia Greene, the Guardian Institute’s academic advisor, believes that the hurdles that were focused on 10 years ago – including financing and creating networks to support women tech entrepreneurs – are still plaguing female tech startup founders today.  Although these challenges have eased over time, they continue to be discussed in the media.  

Others reference the steps women take (or don’t take) to prepare themselves to launch a startup. Research by the Ewing Marion Kauffman Foundation finds that women do not patent their research as often as men do.  Additionally, women do not serve on scientific advisory boards of private companies as frequently as men do (the Foundation reports that the make-up of boards in private industry is overwhelmingly male, at approximately 93 percent). The Kauffman Foundation says this gender difference in business preparation can be addressed with better mentorship and networks that will help guide women entrepreneurs in making important connections and decisions regarding their businesses. Resources like Women 2.0, a global media company that supports female entrepreneurs and hopes to increase the number of female founders in tech startups, seek to mediate this issue.

Not everyone from the small business community points to the challenges faced by women-owned tech startups as cause for the disparity. Eileen Burbidge, an early-stage tech angel investor and advisor, told TechCrunch that she believes the low number of women in tech startups has more to do with a “supply side issue rather than a demand one.”

As Burbidge addresses, there is some discussion on whether women who work in technology even want to start their own businesses and if they are actively taking advantage of tech-related opportunities.

“There is no question that women are capable of building high-tech companies,” added Greene. “There are many questions about trying to paste women into an existing system that just doesn’t look that desirable to them. Those are the more interesting questions and deserve the more innovative answers.”