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Entrepreneurship Suffers When Well-Paid Jobs Are Plentiful

The Horizons Tracker

A few years ago I wrote about innovation and entrepreneurship in Norway and Qatar. The author believes that while lower costs of capital would certainly help raise the entrepreneurship rate, it would be most beneficial to entrepreneurs with lower skills. of physicians operating as independent owners in 2019, versus 48.5%

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Should Companies Retain "Strategic" Cash?

Harvard Business Review

To enhance financial flexibility, companies have been retaining unprecedented amounts of cash on their balance sheets, calling it "strategic" cash to distinguish it from the "operating" cash that is needed to run the business. CFOs should always think about strategic cash within the context of a company's allocation priorities.

Company 13
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What’s Driving Superstar Companies, Industries, and Cities

Harvard Business Review

The debate about superstar firms and superstar effects has been intensifying, partly in response to the rapid growth of global US tech companies. To analyze the superstar dynamics of firms, our metric was economic profit, a measure of a firm’s profit above and beyond opportunity cost. (To Apexphotos/Getty Images.

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The Case for Investing More in People

Harvard Business Review

Beyond wages, other forms of investment in human capital include education and training, improved healthcare, and other, less obvious investments, such as the time and space to explore new ideas and professional development opportunities. Small and large companies alike are experimenting with these concepts.

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We Can’t Study Short-Termism Without the Right Metrics

Harvard Business Review

The McKinsey Global Institute, in conjunction with FCLT Global, recently released research stating that long-term-oriented companies perform better than those that focus on short-term results. While a laudable effort in principle, measuring a company’s tendency to make myopic operating and investing decisions is fiendishly complex.

EPS 8
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Shutting Down Stores Doesn’t Have to Be Bad for Business

Harvard Business Review

Our studies of a wide range of retailers have found that companies often have the most difficulty managing death. While legal restrictions set an upper limit on the length of a liquidation, managers may close stores early to save operating expenses. Deciding when to close a store.

Retail 8
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How to Quantify Sustainability’s Impact on Your Bottom Line

Harvard Business Review

For slaughterhouses and retailers (Brazilian operations), we also projected positive benefits: $20 million to $120 million (0.01% to 0.1% These ranges were wide due to the relative size of the different players in the supply chain (for example, a company that has higher revenues will realize greater benefits than a smaller firm).