Tracking Entrepreneurship in G7 Countries

U.S. entrepreneurial activity increases; new online advice for entrepreneurs; direct to consumer farming takes off; a new book sees a small future

by David E. Gumpert

Entrepreneurial Activity in the U.S. Far Outpaces Other G7 Countries

While the rest of the G7 countries gained on the U.S. in 2001 in terms of early-stage entrepreneurial activity, by 2005 the U.S. had retaken the lead. In fact, U.S. activity stands as double that of the other countries, according to a recent report of the Global Entrepreneurship Monitor, a joint research project of Babson College and George Mason University.

"The level of entrepreneurial dynamism for 2005 was significantly higher in the United States than in any of the other G7 counties," states the report. While the report doesn't make predictions, it observes that "a healthy entrepreneurial investment climate exists in the United States."

A New Service for Entrepreneurs in Search of Experienced Advisors

AdvisorGarage is an early-stage company, billing itself as an online resource for entrepreneurs seeking financing, board members, an interim executive, or a sales and marketing strategy. The service is free during the current beta period, and entrepreneurs can ask up to 10 questions of advisors daily. As of March, the service will cost $49 monthly for unlimited advisor contacts.

Direct-to-Consumer Farming Takes Off

A Saturday farmers' market in Vermont…in the middle of winter? That's what was creating the traffic jam outside the Grange Hall in Norwich, Vt., the first weekend of December. While the weekly outdoor summer farmers' market has been a big hit for several years, local farmers this year are experimenting with a winter market the first Saturday of each month.

"It was a very busy day," says Jennifer Megyesi of Fat Rooster Farm of South Royalton, Vt., who was selling a variety of root and green organic vegetables. Kathy Barrett of On the River Farm in Lyme, N.H., was likewise busier than she had expected selling grass-fed beef.

From a small-business viewpoint, this event illustrates the growing vibrancy, and opportunity, of direct-to-consumer farming. For Barrett, the trend enables her to sell beef for between $8 and $15 a pound to consumers eager to buy locally, vs. $1.65 to a meat distributor.

Vital Communities, a nonprofit organization that encourages local agriculture in central New Hampshire and Vermont, has 200 direct-to-consumer farms listed on its Web site, which consumers can search according to location and products. Lisa Johnson, director of the organization's Valley Food & Farm program, estimates that another 200 farms not yet identified by the program are also selling directly to consumers.

One of the organization's major accomplishments has been convincing Dartmouth College's dining service to purchase meat and produce directly from a handful of its farmers. In 2004 and 2005, Dartmouth purchased more than $400,000 of locally grown food via wholesalers, and this year has switched to purchasing the food directly from individual farms.

When Vital Communities in September organized its first "Feast in the Field"—a white-tablecloth dinner in a Vermont farm field featuring salads, chicken, potatoes, and apple cider from local farmers—more than 300 people showed up to pay $35 a person to support the organization's efforts.

Book: Next Up

The future looks smaller, as in shrinking IT devices, lower fresh water tables, and a reduced pool of young workers, predicts a new book, Future Inc. (AMACOM, 2006) by Eric Garland. Finding ways to care for aging parents of these scarce young workers will preoccupy companies, small and large. Huge opportunities await entrepreneurs in nanotechnology, health-care industries, and alternative energy.

In IT, "Even more than today, small companies will get access to the tools of the big corporations, letting them compete in markets that were once off limits." Though much of this book, such as its overview of alternative-energy options, is familiar, it makes interesting arguments suggesting benefits to businesses that adopt sustainability and ecology in their purchases and offerings.

David E. Gumpert covers business/health issues and also writes the biweekly What Entrepreneurs Need to Know column.