While reading a recent Kauffman Foundation report, I was reminded of an amusing, little book entitled, Who Moved My Cheese? by Spencer Johnson. It is a motivational story about two miniature humans, Hem and Haw, who live in a maze and survive only on cheese. One day, in their typical quest for food, Hem and Haw happen upon a cheese-filled corridor. After setting up camp they soon become content with their find, and establish routines around the supply of cheese. At first they act as if the supply will never run out and are comforted by regularity, since they are afraid of change. When the supply of cheese becomes noticeably smaller, Haw decides to break free from his constrictive mindset and sets out in search for new cheese. Hem remains complacent and fearful of change. Towards the end of the story Haw finds a new supply of cheese and due to his past experience continues to explore the maze, preventing complacency.

This story ties into the topic of entrepreneurship by stressing the importance for the continued search of something new and innovative. Excitement in enterprise will spread throughout, benefiting others in the creation of jobs and improvement of the economy. If we continue to search for new cheese and pursue creative and imaginative ways for improving society, it will prove evident that the country’s economic growth and productivity can move and remain in a positive direction.

Earlier this month, the Kauffman Foundation released a report that found that because newer businesses have higher growth and productivity gains than mature ones, the business churning process increases productivity and living standards. This is exemplified by newer and more productive businesses replacing failing and exiting ones. While many jobs are obviously lost, new and growing businesses are responsible for the creation of jobs, which accounts for roughly 1/3 of all job creation in the United States. This suggests that while the U.S economy is slipping on various levels, the uncertainty allows room for a great deal of improvement. The void will be filled by new and growing businesses that can move into those empty spaces and drive the economy forward. This entrepreneurial spirit will bring innovation, creativity and a new breath of fresh air to the table. According to Steven J. Davis, a co-author of the report from the University of Chicago, “it appears that the turmoil in our economy is actually one of its greatest strengths.”

Tags: entrepreneurship, Kauffman

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