...Everyone knows the importance of small businesses in any economy. They
provide about three quarters of America’s new private sector jobs. But in the
coming decades a new type of small business – one that harks back to an age
gone by – will emerge as a real economic force.
...The Intuit Future of Small Business Report, “The New Artisan Economy,”
said that in the next 10 years we’ll see the re-emergence of “artisans” as an
important factor. It’s the modern rendition of the people who in medieval days
made goods in pre-industrial Europe and Asia.
...And they promise to make a comeback, thanks to the global economy and
technology.
...According to the February 2008 Intuit report, this next generation of artisan
will work outside the confines of big business and will make a living based on
craftsmanship, knowledge or a combination of both. They’ll function much
like the pre-industrial artisans, working in small shops or from home, making
goods or providing services the big boys either can’t or won’t provide.
...The artisans of medieval days were crucial to the development of the
economies of cities and towns. They were able to create products through
knowing how to get suppliers and other artisans together to produce goods –
and they knew how to get customers. They were doing “outsourcing” long
before the term came into existence.
...The production of cloth, for example, involved many stages from the
combing of wool to the spinning and, eventually, the marketing. The cloth
industry had a subdivision of production into separate specializations, and
depended on the coordinated efforts of all these independent specialists.
...The medieval book industry operated the same way. Authors and translators
were commissioned to produce new texts. The books and separate chapters
would frequently begin with miniatures illustrating the topic. Like the cloth
industry, the medieval book industry depended on a subdivision of specialties
– a scribe who wrote the text, artisans who decorated the pages and perhaps a
separate group that would paint the illustrations, all working independently in
their own workshops. Those in the same field would cluster together in some
cities in special neighborhoods.
...Workshops were comparatively small and part of the house., and often
involved an entire family.
...The industrial age changed all of that as mass production methods became
the norm.
...While mass production will continue to be a factor, niche activities are
growing in importance.
...The coming decades will see the birth of more small operations creating
specialized products and services. According to the Intuit report, most
industries will move to a barbell-like structure: A few giant corporations on
one end, a narrow middle, and a large group of small businesses balancing the
other end. Small businesses will find opportunities in niches untouched by the
giants, and collaboration will be more common. Small businesses will be better
positioned than large corporations to provide customers with highly targeted,
customized and relevant products, said the report.
...Ken Malone, director of the Hattiesburg-based Trent Lott National Center
of Excellence for Economic Development and Entrepreneurship, already sees
this occurring. He said he believes we’ll see more small-scale, innovative
businesses in the coming years in South Mississippi and elsewhere in response
to economic change.
...“The structural changes in our economy have been largely driven by our
need to find an answer to the low cost labor in other countries,” said Malone.
The United States will not win the low-cost battle, but it can win when it
comes to innovation. “I don’t just mean technological, but in terms of any
innovative business method – anything that gives an edge over low-cost labor.”
...And one of the ways to be innovative is outside the walls of a big company.
...“Large companies are large because economies of scale is important to
certain things,” said Malone. The list of examples is long – anything where
mass production is important, from the making of steel to the production of oil
products, vehicles and more. “But when you’re talking about innovation,
economy of scale is of no value. If anything, just the opposite of that is true.”
...What might move some towards their own business is concern over big
company layoffs.
...“What I find universally is none of them (students) believe a large company
has any future for them,” he said. Part of it may be the desire to control their
own destiny, but the larger part is the belief that the jobs will disappear. They
read about layoffs, in particular in the research sector, and that concerns them.
...“I think that is the fundamental driver. People are being put in a position
where they have no choice,” Malone said about the interest in creating small,
innovative businesses. He thinks the advances in information technology have
made it easier for people to work from home or in small shops and to
collaborate, but he does not think that has been the driver.
...Malone said that in Silicon Valley you’ll find hundreds of these little
companies, many of them working together. In Hattiesburg, there are 15 or 16
of what he said he would call cutting-edge. They all know one another and
work together on various projects.
...And Malone expects that trend to continue. - David Tortorano, Tcp
July 2008
provide about three quarters of America’s new private sector jobs. But in the
coming decades a new type of small business – one that harks back to an age
gone by – will emerge as a real economic force.
...The Intuit Future of Small Business Report, “The New Artisan Economy,”
said that in the next 10 years we’ll see the re-emergence of “artisans” as an
important factor. It’s the modern rendition of the people who in medieval days
made goods in pre-industrial Europe and Asia.
...And they promise to make a comeback, thanks to the global economy and
technology.
...According to the February 2008 Intuit report, this next generation of artisan
will work outside the confines of big business and will make a living based on
craftsmanship, knowledge or a combination of both. They’ll function much
like the pre-industrial artisans, working in small shops or from home, making
goods or providing services the big boys either can’t or won’t provide.
...The artisans of medieval days were crucial to the development of the
economies of cities and towns. They were able to create products through
knowing how to get suppliers and other artisans together to produce goods –
and they knew how to get customers. They were doing “outsourcing” long
before the term came into existence.
...The production of cloth, for example, involved many stages from the
combing of wool to the spinning and, eventually, the marketing. The cloth
industry had a subdivision of production into separate specializations, and
depended on the coordinated efforts of all these independent specialists.
...The medieval book industry operated the same way. Authors and translators
were commissioned to produce new texts. The books and separate chapters
would frequently begin with miniatures illustrating the topic. Like the cloth
industry, the medieval book industry depended on a subdivision of specialties
– a scribe who wrote the text, artisans who decorated the pages and perhaps a
separate group that would paint the illustrations, all working independently in
their own workshops. Those in the same field would cluster together in some
cities in special neighborhoods.
...Workshops were comparatively small and part of the house., and often
involved an entire family.
...The industrial age changed all of that as mass production methods became
the norm.
...While mass production will continue to be a factor, niche activities are
growing in importance.
...The coming decades will see the birth of more small operations creating
specialized products and services. According to the Intuit report, most
industries will move to a barbell-like structure: A few giant corporations on
one end, a narrow middle, and a large group of small businesses balancing the
other end. Small businesses will find opportunities in niches untouched by the
giants, and collaboration will be more common. Small businesses will be better
positioned than large corporations to provide customers with highly targeted,
customized and relevant products, said the report.
...Ken Malone, director of the Hattiesburg-based Trent Lott National Center
of Excellence for Economic Development and Entrepreneurship, already sees
this occurring. He said he believes we’ll see more small-scale, innovative
businesses in the coming years in South Mississippi and elsewhere in response
to economic change.
...“The structural changes in our economy have been largely driven by our
need to find an answer to the low cost labor in other countries,” said Malone.
The United States will not win the low-cost battle, but it can win when it
comes to innovation. “I don’t just mean technological, but in terms of any
innovative business method – anything that gives an edge over low-cost labor.”
...And one of the ways to be innovative is outside the walls of a big company.
...“Large companies are large because economies of scale is important to
certain things,” said Malone. The list of examples is long – anything where
mass production is important, from the making of steel to the production of oil
products, vehicles and more. “But when you’re talking about innovation,
economy of scale is of no value. If anything, just the opposite of that is true.”
...What might move some towards their own business is concern over big
company layoffs.
...“What I find universally is none of them (students) believe a large company
has any future for them,” he said. Part of it may be the desire to control their
own destiny, but the larger part is the belief that the jobs will disappear. They
read about layoffs, in particular in the research sector, and that concerns them.
...“I think that is the fundamental driver. People are being put in a position
where they have no choice,” Malone said about the interest in creating small,
innovative businesses. He thinks the advances in information technology have
made it easier for people to work from home or in small shops and to
collaborate, but he does not think that has been the driver.
...Malone said that in Silicon Valley you’ll find hundreds of these little
companies, many of them working together. In Hattiesburg, there are 15 or 16
of what he said he would call cutting-edge. They all know one another and
work together on various projects.
...And Malone expects that trend to continue. - David Tortorano, Tcp
July 2008
Rise of the artisan economy
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