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SMALL BUSINESS TRENDS brings you daily updates on trends that influence the global small business market.
Anita Campbell, Editor
Past life: CEO, corporate executive, tech entrepreneur, retailer, general counsel, marketer, HR ... (more)
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November 1st: Torsten Jacobi, CEO of Creative Weblogging, joins host Anita Campbell. Sponsored by Six Disciplines. Show details.
Saturday, July 31, 2004
Booming Scrapbooking Industry
A while back I posted an article about the knitting craze, and how small business knitting and yarn shops had boomed as a result.

Well, here's a trend along a similar vein: the boom in scrapbooking.

Scrapbooking -- or "memory crafts" as the hobby is also called -- has exploded in the past decade. According to the Hobby and Craft Association, the trade association for the craft industry, scrapbooking is now a US$2.5 Billion industry that is showing no signs of slowing growth. There are now over 3,000 scrapbooking stores nationwide in the United States, serving 25 million scrapbookers.

Scrapbookers save family memories, including military memories of loved ones. The hobby is predominantly female, with older women constituting a large portion of the market.

Many scrapbooking shops are run by small businesses, including the small business profiled in this Wisconsin State Journal report and in this York Daily Record report.


As with most hobby and enthusiast businesses, scrapbooking stores tend to be run by people who are themselves scrapbookers. They understand the craft, tend to stock more items than general craft store chains, and can be more helpful when answering questions.
Thursday, July 29, 2004
Entrepreneur's Best Friend: Social Networking Sites
Social networking sites are a hot trend and becoming ever more useful for entrepreneurs and small businesses, according to Xeni Jardin in an article at MSNBC.com:
"...there is growing evidence to support claims that some social networking services ... can be a powerful professional ally to businesses -- in particular, independent entrepreneurs and smaller companies, for whom each new personal connection is a significant business building block.

LinkedIn and ZeroDegrees are two of the more popular services that facilitate business-oriented connections...."
The article goes on to describe some of the uses that entrepreneurs have made of social networking sites: developing new sales prospects; researching companies you want to do business with; and job hunting and employee recruitment. Via Boing Boing.


I use two of the social networking sites for business purposes: Ryze.com and LinkedIn.com. I have made dozens if not hundreds of new connections through them. But you know my most valuable tool for developing business contacts online? It's this blog. It has opened the door to countless new connections, all over the world, with you, dear readers. My experience is right in line with the prediction of Scott Rafer, President and CEO of Feedster, who in the future sees social networking sites integrating with blogs.
Wednesday, July 28, 2004
Trucker Shortage Hurts Small Businesses
A piece in Crain's Cleveland Business (subscription required) suggests the U.S. has a shortage of truck drivers right now -- at least, long-haul truckers.

The article quotes Bob Costello, chief economist for the American Trucking Associations and says "the industry needs to hire about 34,000 new drivers each year due to industry growth, although that number is expected to rise in the future as truck freight is projected to increase more than 30% during the next 10 years."

The culprits: working conditions (being away from home); schooling requirements (it's expensive and there's no financial aid); and legal limitations (workers must be over 21 and have two years' experience, sending younger workers toward different career paths).

Small trucking companies are caught in the competition for drivers. The article highlights one small business, All Pro Freight Systems, that is focusing on job satisfaction, working conditions and pay in order to attract long-haul drivers.

This employment shortage could be a far reaching trend because of the dependence of the American economy on truck freight, and because so many small businesses are in the trucking business. According to the American Trucking Associations:

    "Trucking is an important industry in America. The trucking industry is comprised of more than 500,000 for-hire, private and government fleets, including owner operators. It employs 9.7 million people, including 3.12 million drivers, and accounts for nearly 5% of the U.S. gross domestic product."

Tuesday, July 27, 2004
Information is King...and Other Trends
My co-editor, Dave, and I recently had the pleasure of hearing Watts Wacker speak (listen here). Watts Wacker is a futurist, author and lecturer.

We picked up on four major trends in Watts' talk, to share with you:

  • What a Small World! Watts says we should all get used to the concept of a global culture -- not a U.S. culture, not a European culture, but a global one. Frenchmen go to a DisneyWorld for vacation and eat Big Macs. The world's culture knows no geographic borders anymore.


  • Information is King. "The value of information about goods and services eclipses the value of the goods and services themselves," he says. Watts gave as an example certain collectible Campbell's Soup labels. The soup cans cost far less than the labels, which are being sold on eBay for more than 10 times the price of the soup.


  • Paradox -- Get Used to the Word. As Watts pointed out, we will be seeing more paradoxes, where society moves in multiple different directions at the same time. For example, low carb diets are hot, at the same time cooking is hot. This is a reflection of the complexity of our world.


  • Capitalism Rules and China Ascends.The last two decades have seen the rise of capitalism, affecting China greatly as that country's economic system transforms and morphs. China now has a US$1 Trillion economy and is poised to be a major economic power moving forward.

Interesting talk. Both Dave and I can see how these four trends play out in the small business market. We've already identified a number of them as major trends affecting the small business market, over at our sister site, TrendTracker.

Globalism is a dominant trend affecting small businesses. Information, and the rise of intellectual property as a key business asset and differentiator, is something that has increased the ability of small business to compete. Paradoxes are obvious, especially in the way big companies keep getting bigger, while small businesses proliferate. And finally, capitalism has opened up untold opportunities for small businesses to start up and expand worldwide, and has awakened the sleeping giant, China.

Monday, July 26, 2004
Global Trend Toward Freer Economies
Ever since the 1980's, following the legacy of Ronald Reagan and Margaret Thatcher, the global trend has been toward freer economies.

That is one of the conclusions of a fascinating report entitled "Economic Freedom of the World: 2004 Annual Report." The report is by James Gwartney and Robert Lawson, in conjunction with the Fraser Institute and the Cato Institute.

According to the report, the country with the most economic freedom is actually part of a nominally communist country -- Hong Kong. The other countries in the top ten are Singapore, followed by a four-way tie between New Zealand, Switzerland, United Kingdom and United States. Rounding out the top ten are Australia, Canada, Ireland and Luxembourg, in that order.

So what is it that makes economies freer? The report measures five criteria:
  1. smaller government, including a lower tax burden to support that government;
  2. a secure legal structure and protection of property rights, so that businesses can be assured of reaping the benefits of contract rights, patents and innovations;
  3. access to sound money, including a reliable banking system and low inflation;
  4. freedom to do business internationally, including low tariffs and taxes; and
  5. less regulation of businesses.

These factors are important to businesses of all sizes. For small businesses they are crucial, because small businesses tend to have higher sensitivity to negative factors around them. A small business can be hamstrung or even wiped out much faster than a large business if any of these factors gets out of line.

It would be very interesting to see if there is a direct correlation between economic freedom and the current proliferation of small businesses and entrepreneurial enterprises. The report suggests that economic freedom provides greater opportunities for entrepreneurs (Chapter 2, pages 1-2), but does not actually measure or correlate the two with statistics.


Sunday, July 25, 2004
PowerBlog Review: Nanobot

Editor's note: This is the twenty-third in our popular weekly series of PowerBlog Reviews of other weblogs...

Howard Lovy's Nanobot is the place we go to for "independent nanotechnology information and commentary."

As the title suggests, the weblog is about nanotechnology, a very hot field right now.

Nanotechnology describes science at the molecular level. Materials and substances are made better (stronger, thinner, lighter) through nanotechnology.

Nanotechnology is still a pretty mysterious subject to much of the general public. It has a sci fi air about it, although it is very real and very much part of the here and now.

Howard Lovy, the publisher of Nanobot, de-mystifies nanotechnology. At the same time, he revels in the "gee whiz" aspect of it. And he knows how to use the gee whiz factor to capture his readers' attention, along with some humor and wit thrown in for good measure.

For instance, a recent post entitled "A Night at the Micro Opera" reproduces a photo of an incredibly tiny model of the Sydney Opera House.

"Swinburne University of Technology's Centre for Micro-Photonics constructed a model of the Sydney Opera House. Its dimensions are 64 x 38 x 41 micrometers, (yes, I know; not nano, but cool, anyway). It was built from a hybrid material of glass and polymer. *** What does any of this do to advance the science of nanotechnology? Probably very little. But when it comes to attracting the interest of the general public, you know what they say about that picture/word ratio. The micro opera house was among Yahoo News' most e-mailed photos."
One of the best things about this blog, in my opinion, is the comprehensive list of nanotechnology links and resources down the left sidebar. Nanobot is a great example of how a blog can make itself even more valuable to readers through assembling a great links section focused on a particular subject.

The Power: The Power of Howard Lovy's Nanobot weblog is in the way it brings us up-to-the-minute insights into this developing field of nanotechnology, delivered with wit and a sense of humor -- and the comprehensive set of nanotechnology links.


Saturday, July 24, 2004
Art in the Garden
Tracy DiSabato-Aust, author of The Well-Tended Perennial Garden and The Well-Designed Mixed Garden, made this interesting assertion at a garden design seminar that I attended today:
"Garden art ... we're not talking about the little wooden bent-over lady you see everywhere ... but true art... is a necessity in the garden today...."
That got me thinking about garden art as a trend. Art fits right in with the current broader trend toward treating gardens as outdoor rooms and decorating them. Most of the gardening books and magazines today feature garden art regularly in their photos. Even famous artists like Dale Chihuly are designing art specifically for the garden (see Red Reeds installation pictured below).

Few of us are going to spring for the six figures that a Chihuly installation costs. But modestly-priced pieces, such as metal sculptures or one-of-a-kind painted benches, are a different story.

Gardeners who are committed enough to want to decorate outdoor rooms with art, are likely to spend generously if it means a lightened spirit -- and "ooohs" and "aaahs" from visitors.

In my art gallery days I observed that the commercially successful artists tended to pay attention to changing tastes and trends. The garden art trend could open up new opportunities for artists with an entrepreneurial streak who pay attention.

Photo courtesy of www.chihuly.com. Be sure to visit the site and check out the slideshow for "Chihuly in the Garden" at the Atlanta Botanical Garden, a feast for the eyes.