Global Entrepreneurs Need New Funding Models

Harvard Business Review

Entrepreneurship seems to have become the silver bullet for a job-scarce, unemployment-saddled global economy still struggling to shake off recession. In low-income countries, according to World Bank data in a recent paper by the consultancy Dalberg, 43% of businesses with between 20 and 99 employees say that access to finance is a major constraint. The White House has called this gap between the demand and supply of finance for small and medium enterprises a "market failure.[and]

2020 Top CHRO List – The People Leaders To Watch

N2Growth Blog

We find ourselves amidst the challenges of living and working in a triple-threat world of a global pandemic, economic instability, and political unrest. Leading a global workforce of more than 840,000 people is not for the faint of heart. and a development manager at Oracle Corp.

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Can Index Funds Be a Force for Sustainable Capitalism?

Harvard Business

These two trends may seem separate—or, some people believe, incompatible—but together I believe they have the power to improve finance’s role in the world. It is tough to beat the market and over long periods of time indexing has been shown to outperform most active managers. On the other side, fans of active management see it as a trend that can damage market efficiency and lead to distortions in market prices. Hiroshi Watanabe/Getty Images.

Spain Is Now Making Ireland's Mistakes

Harvard Business Review

Just like Ireland, Spain had a credit boom financed mostly with external debt, which meant that the balance sheets of their banks are now stuffed with bad debts as asset values collapse. And yet in the run up to the collapse in 2007, the combined asset footprint of the three main Irish banks was around 400 percent of GDP. In Ireland a National Asset Management Agency was formed to cleanse private banks' balance sheets and disburse the bad loans over a longer period.

How to Fix Financial Capitalism? Focus on Ethics

Harvard Business Review

These were among the questions addressed at a luncheon in New York convened by CFA Institute President John Rogers with financial industry leaders that included representatives from private and not-for-profit asset managers, public pension funds, insurance companies, and diversified financial services firms. It has forgotten, as economist Robert Shiller writes in Finance and the Good Society , that "financing is really creating the architecture for reaching a goal.

What’s Driving Superstar Companies, Industries, and Cities

Harvard Business

The debate about superstar firms and superstar effects has been intensifying, partly in response to the rapid growth of global US tech companies. In our recent research at the McKinsey Global Institute, we examined the superstar phenomenon across firms, as well as sectors and cities. These firms make up two thirds of global corporate pretax earnings (EBTDA) and revenues. Apexphotos/Getty Images.

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Rethinking Sustainability in Light of the EU’s New Circular Economy Policy

Harvard Business

We are academics and practitioners focused on product recovery economics and life cycle asset management. We began collaborating when we recognized how interlaced asset management and product recovery were in textbook CEs. Our combined skill sets (academic expertise on leasing, the choice of modularity and refurbishing, and practical expertise on asset management and product recovery) allowed us to identify three approaches to breaking through.

Why the U.S. Needs More Worker-Owned Companies

Harvard Business

Third, as a result of strong performances by worker- and employee-owned companies, it is becoming easier for workers to overcome arguably the biggest hurdle to worker buyouts: financing. That’s because a growing number of funders, both social impact funds and traditional institutions, are interested in financing workers’ takeover of a company. The biggest difference is that workers have an important say in who manages them and how profits align with values.

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Startups Could Fundamentally Change the Way Big Investors Operate

Harvard Business

The success of institutional-investment firms is socioeconomically vital: Their task is to grow the financial assets needed to fund retirements, development, education, scientific research, and many other capabilities associated with pensions, endowments, foundations, sovereign wealth funds, and the like. In September 2016 we undertook a survey of nearly 300 endowment and foundation managers. Innovation has the potential to transform the investment industry.

The End of Economists' Imperialism

Harvard Business Review

Lazear went on to describe how economists, with the University of Chicago's Gary Becker leading the way , had been running roughshod over the other social sciences — using economic tools to study crime, the family, accounting, corporate management, and countless other not strictly economic topics. Decision making Economy Finance"By almost any market test, economics is the premier social science," Stanford University economist Edward Lazear wrote just over a decade ago.

How Cloud Computing Is Changing Management

Harvard Business

Theories and practices of management often spring from the opportunities created by new technologies. Client-server technology begat enterprise resource planning systems, and the consequent system-wide visibility that was required for what we call business process management (BPM). That makes it imperative to start thinking about how management will be changed by the most impactful information technology of our time: cloud computing. yagi studio/Getty Images.

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How Companies, Governments, and Nonprofits Can Create Social Change Together

Harvard Business

In 2016, socially responsible investing made up more than one out of every four invested dollars under professional management. And recently, the head of BlackRock, the world’s largest asset manager, called on all companies to explain how their businesses make “a positive contribution to society” beyond just financial performance. Manage people effectively through decentralized teams across organizations. Ilka & Franz/Getty Images.

Making Sense of the Many Kinds of Impact Investing

Harvard Business Review

According to the Global Impact Investing Network, the market for impact capital, currently sized at $60 billion, could grow over the next decade to $2 trillion, or 1% of global invested assets. For instance, Triodos Sustainable Trade Fund provides finance to farmers whose cultivation practices are more sustainable in places like the Palestine Territories, Thailand, and the Dominican Republic, avoiding traditional chemically-intensive fertilizer in delicate ecosystems.

Why Verizon's iPhone Could Be Good for AT&T

Harvard Business Review

It may seem counterintuitive, but smart companies need to routinely rid themselves of less profitable customers, the same way an asset manager or rebalances an investment portfolio or a Major League Baseball general manager trades a declining player. They do this by building consumer P&Ls through cross-functional teams across marketing, sales, supply chain and finance, much like some companies have built account and product P&Ls.

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