Chinese Entrepreneurs

The traits of Chinese entrepreneurs are not dissimilar to entrepreneurs elsewhere.  Being female and older tend to discourage people from starting their own business in many countries. And as in the West, social networks, a healthy attitude to risk and an inclination to work hard are all traits associated with entrepreneurs in China.

Until recently, not much was known about these entrepreneurs, but the emerging picture is one of a group of individuals who are able to navigate China’s uncertain institutional terrain and find opportunities in the world’s potentially most significant market. Their foray into overseas markets is as inevitable as the rise of China.  Chinese Entrepreneurs

Chinese Entrepreneurs

Financial Task Force Lists High Risk Jurisdictions

Our correspondent Andreas Frank reports:  FATF STATEMENT ON HIGH-RISK AND NON-COOPERATIVE JURISDICTIONS

Conclusions:  The Financial Action Task Force (FATF) issued an updated statement identifying jurisdictions with strategic deficiencies in their anti-money laundering and counter-terrorism financing (AML/CTF) regimes. This statement lists those jurisdictions in two categories and effectively replaces any earlier statements regarding those jurisdictions.

    1) Jurisdictions where FATF members and other jurisdictions have been asked to apply countermeasures to protect the international financial system from ongoing and substantial terrorist financing and money laundering risks emanating from the jurisdictions Iran and Democratic People’s Republic of Korea (DPRK).
    2) Jurisdictions listed for having strategic AML/CTF deficiencies that have not made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with FATF to address key deficiencies: Algeria, Ecuador, Ethiopia, Indonesia, Myanmar, Pakistan, Syria, Turkey, Yemen.

Major changes to the last FATF statement on high-risk and non-cooperative jurisdictions (18.11.2013):

Two African Countries – Kenya and Tanzania – made significant progress to improve their AML/CFT regimes and are no longer on the list of “High-Risk and Non-Cooperative Jurisdictions”. Kenya and Tanzania are now identified in the FATF document, “Improving Global AML/CFT Compliance.

Afghanistan and Cambodia are jurisdictions which are not making sufficient progress, the FATF said.

Jurisdictions no longer subject to the FATF’s on-going global AML/CFT compliance process Antigua and Barbuda, Bangladesh, and Vietnam.

The FATF kept the classification of Iran as a high-risk and non-cooperative jurisdiction and called on its members and other jurisdictions to apply counter-measures to protect the international financial system from the on-going and substantial money laundering and terrorist financing (ML/TF) risks.

The FATF failed to explain how the international banks will be able to transfer safely the billions of dollars

provided by the partial lifting of the Iran sanctions.      Frank-cs.org   Report on Countries

 Doing the Laundry

Are Companies Serious About Work Flexibility

Diversity Consulting firm Symmetra recently released the results of an international study of senior executives that exposes the bias against employees who take up flexible work options. While many large businesses make flexible work policies available to their workforces, the study found that attitudes exhibited by senior management demonstrate a lack of genuine belief in and support for flexible work.

The study revealed that flexible workers were perceived by management to be less serious about their careers, less credible and less likely to be able to build effective relationships and to develop others. In fact, a bias was found against flexible workers in 11 out of 14 attributes measured, with the only attribute that was found as having a positive bias for flexible workers was that they were perceived as having better work-life balance.

Findings like these go a long way in explaining the immense inconsistencies found in organisations between the desire for flexible work arrangements by employees and the actual uptake of those arrangements. Unfortunately, even when employers have a policy in place that supports flexible work, there is often a significant career disadvantage (both perceived and experienced) for those who choose to work flexibly. Consequently, many employees (both male and female) who would like to work flexibly do not request to do so, because they believe they will be taken less seriously in the workplace and their career will suffer.

The ever increasing reach and capability of technology provides a range of options for flexible workers, and while some core time in the office is usually a necessity, there are many tasks that do not require people to be in the office to deliver great results. When I think about how regularly many executives travel both domestically and internationally on business, it strikes me as interesting that rarely, if ever, does anyone question whether this time spent out of the office means these executives are not performing their jobs to a high standard. It is an interesting observation that regular absences from the office during business hours are often considered completely acceptable, but it is the reasons for which people are out of the office that some people find difficult to accept, with those working flexibly to balance work and other commitments (including family) being associated with negative traits and therefore held back.

Unfortunately because it is women who engage in flexible work most often, the biases revealed in the Symmetra study apply to a larger number of women than men and ultimately result in a gender bias. That said, I have a high degree of sympathy for men who would like to work flexibly but feel they would be disadvantaged as a result. I recently heard of a man who had taken parental leave to be the primary carer for his new baby, and during that time his leader resigned leaving a vacancy for which he applied. The hiring executive made the comment that “he obviously is not serious about his career” with reference to him taking parental leave. This is unfortunately an all too common but out-dated attitude that has no place in a modern workplace.

To truly move from a flexibility policy mindset towards an embedded culture of flexible work organisations need their most senior leaders to lead by example, adopting flexible work practices themselves and ensuring those working flexibly have a viable career path and access to the same opportunities as those who do not work flexibly. It is time for a courageous generation of male and female leaders who understand the vast talent that is available through the pool of flexible workers and who will challenge historical sacred cows about job design and outdated work practices to advocate and lead progressive change in this area.  Attitudes Toward Work Flexibiliy

Attitudes Toward Work Flexibility Work Flexibility

Taper, QE, OMT Around the World

The signal that the Fed has got its eyes on Europe came from the Minneapolis Fed.  Its President,  Narayana Kocherlakota has become a convert to perpetual QE. Kocherlakota resembles the worst kind of reformed smoker, who will not tolerate smokers in his house even if they smoke outside. His last egregious act was to fire personnel with dissenting economic opinions to his own. Now it appears that he has taken a step to promote the global remit of his dogma. In a pamphlet, similar to ones that can be imagined to have advised Presidents Woodrow Wilson and FDR, the Minneapolis Fed asked the rhetorical question:  Is it Too Late to Bail Out Troubled Countries in the Eurozone.  Narayana Kocherlakota Speech

QE, OMT and Taper

 

Outright Monetary Transactions

Assessing Bernanke

Thanks in large part to Bernanke’s policies, the rich have never been richer, and the gulf between the haves and have-nots has never been wider. No wonder billionaires like Bernanke.

But  there is the downright frightening prospect of what might happen to the bond market if the Fed ever decides to sell some of the $4 trillion of assets — all those bonds it has been buying — on its balance sheet, which is five times larger than before Bernanke’s buying spree.  Assessing Bernanke

Japan is in QE mode and the US may be in Tapering.

Japan is in QE mode and the US may be in Tapering.

Drawing by Dr. JanTomashoff

 

Entrepreneurs: Is Shark Tank for You?

The producers of the ABC reality series Shark Tank are on a nationwide search to discover the next successful (and possibly wealthy) entrepreneurs, inventors, businesspersons, creators and innovators. In each episode, budding entrepreneurs are given the unprecedented chance to make their business grow immediately.

Like Crowdfunding, this is a novel and tech savvy road to venture capital for small businesses.  Whether or not you apply, you can benefit from watching the show and the questions asked by successful entrepreneurs as the start up companies defend their idea.  Watch

Shark Tank Casting Call  Apply

Shark Tank

Small Business Entrepreneurs at the Olympics

When Kurt Walchle told people that he wanted to see the athletes on the U.S. Olympic team wearing his company’s bracelets, a lot of people thought the Jacksonville (Fla.) entrepreneur was crazy.

Walchle is proving skeptics wrong again: Last year he struck a deal with the U.S. Olympic Committee to provide its 800 American athletes with Team USA-emblazoned, red-white-and-blue bracelets and luggage tags.

The marketing oomph of the Olympics isn’t reserved for big companies like Ralph Lauren or Nike, where the iconic interlocking rings and American flags adorn everything from T-shirts and caps to umbrellas, lanyards, pint glasses, and toy gnomes.  One nice plus for Walchle: His bracelets are featured on the Team USA shop’s front page.    Entrepreneurs at the Olympics
Paracord

Too Royal to be a Crook

The husband of a Spanish princess, Mr Urdangarin, a former Olympic handball player, is accused of using his royal connections to win generous no-bid contracts from the regional Balearic Islands government to put on sports and marketing events before a 2008 property market crash, when local governments were awash with cash.  Judge Jose Castro is investigating how Mr Urdangarin overcharged and charged for services never provided, and how the proceeds went to a shell company without the appropriate tax being paid. The couple co-owned the shell company and used it for personal expenses including, for example, work on their Barcelona mansion and the princess’s salsa lessons.  Spanish Royals Involved in Corruption Case

The Princess and the Frog

Making an Old Product New

Companies achieve competitive advantage through acts of innovation. They approach innovation in its broadest sense, including both new technologies and new ways of doing things. They perceive a new basis for competing or find better means for competing in old ways. Innovation can be manifested in a new product design, a new production process, a new marketing approach, or a new way of conducting training. Much innovation is mundane and incremental, depending more on a cumulation of small insights and advances than on a single, major technological breakthrough. It often involves ideas that are not even “new”—ideas that have been around, but never vigorously pursued. It always involves investments in skill and knowledge, as well as in physical assets and brand reputations.

Elon Munk of Tesla takes an old product like a car and brings in into the future.  Elon Musk Takes Old Products into the Future

A New Train