Today’s roundup starts with news that large companies are acquiring smaller businesses to attract government contracts and includes news on how immigration reform is affecting SBOs and lessons of the MySpace failure.
Big firms acquire small companies to attract federal contracts
While both small and large companies are struggling in today’s economic climate, it’s the latter that’s getting creative. As Angus Loten of The Wall Street Journal reports, large firms are increasingly acquiring small firms to attract government contracts. How does this work? Well, the government traditionally awards contracts to small companies to spur economic growth—a place where the big guys see an opportunity. But before getting upset about corporate greed, understand that these acquisitions are helping some little firms stay afloat.
VCs push for expedited F.D.A. approval of medical devices
Venture Capital firms are entering the political ring and causing a lot of controversy. As Barry Meier and Janet Roberts of The New York Times report, VCs are pushing for the quick approval of medical devices. Why? Legislators say the industry is set to lose 400,000 jobs if the F.D.A. doesn’t speed things up. But here’s the problem: medical devices, when not properly regulated, can hurt patients. Do you side with the VC’s? If not, you might want to cross-reference your investor list with those backing the idea.
Employee verification system: bad news for SBOs
The immigration debate is landing squarely on the doorstep of small businesses. As Nick Leiber of Bloomberg Businessweek writes, several states are mandating that employers check new hires with E-Verify, a government program that investigates the background of individuals. Here’s how it works: after a person is hired, the business owner checks them through the system, and if the new hire is found to be an illegal immigrant, they are fired. One North Carolina-based wholesaler has already had to fire 60 recent hires and can’t find native unemployed persons to do the same jobs. This is a nightmare for SBOs. What is your opinion on the topic?
VC: ‘What I look for in an entrepreneur’
Here’s a special Thursday treat. As Christopher Mirabile (managing director of Launchpad Venture Group) writes on VentureFizz, good people skills are absolutely vital for an entrepreneur to be successful. It also helps to be smart, have high integrity, a good sense of humor, and knock your presentation out of the park.
Social media lessons form Weinergate
It’s been four months since Anthony Weiner stepped down from public office, but there are still lessons to be learned from his scandal. As SmallBusinessNewz reports, business owners are wise to double check social media postings before they go live. And while it is impossible to control your brand on those channels, sending out a constant stream of helpful information is the best way to retain consumer goodwill.
Lessons from the MySpace failure
It’s hard to believe, but MySpace used to be more popular than Google. TechCrunch’s Andrew Keen interviews MySpace co-founder on lessons he learned from the MySpace crash, which include not growing too fast (they hired 1,600 people in two years) and making sure to find the right buyer (NewsCorp wasn’t great—even Rupert Murdoch agrees.)