I remember reading an article when I was first contemplating the risks and rewards of starting a business tied to passions of urban/economic revitalization. The article won the rights to grace the magazine’s cover with a phrase I had forgotten: Creative Destruction.
The term was originally touted by economist Joseph Schumpeter, and largely touched on the entrepreneur’s impact on long term economic growth, often at the expense of challenging (or to the extreme of “destroying”) any given era’s stalwart companies and practices. I don’t set out to ignore proven conventions, but history repeatedly supports Schumpeter’s arguments, most recently with the American auto industry. Though many factors aligned to lead to its crumbling, my hunch is the organizations became too full of themselves by thinking their longevity insulated them from realities of the market. Their size and longevity ignored the speed and spirit of innovation that their founders used to astound the marketplace with real value. Management layers thickened, bloated committees and their spirit killing politics and power plays prevailed, and then the omnipresent bumper sticker philosophy of taming creativity and innovation became operational mantra – “if it ain’t broke, don’t fix it”. The latter allows you to quickly ignore the market and competitive shifts that are appearing in the rear view mirror – and those shifts, especially in today’s global economy, are definitely closer than they appear. Once they pass you, it really is broke, and a simple fix or innovation is now elusive.
More recently, there is something near and dear to my heart. A community realizing its real potential. Here is a new headline that recently caught my attention: New Orleans Attracting Entrepreneurs In Droves. After reading this, I couldn’t help make the connection to Schumpeter’s ethos. The two headlines appear to be blood related, and help support the arguments of the other. Here you have the epitome of a great southern town partially steeped in southern protectionism, culture and an economy largely based on the south’s form of tourism – please come and visit us, enjoy our peculiarities, spend your money in our restaurants, shops and attractions but at some point, please leave. I think this spilled over into business formation and attraction of new businesses. As the economy for many cities shifted long ago, New Orleans was perhaps reluctant, and the local economy, outside of tourism, was not one to model. Aside from the terrible hardships caused by Hurricane Katrina, the city is proving its destruction was the impetus to its creative resurrection. I remember arguments that New Orleans would not only avoid coming back as it once was, but that it may not exist as a strong American city – ever. It was over, some said. Thanks largely to the entrepreneurial spirit, creative enterprise and a can-do/will do attitude, the city is coming back. Jobs, money, opportunity, respect, community services. All of these things are starting to thrive, and according to the article – in droves.
Any city would do well to do what it can to attract and support new creative enterprise, and perhaps destroy a few mindsets and committees that say it can’t be done here – there are now too many examples proving otherwise. As another bumper sticker puts it, “it isn’t rocket science”, but it is difficult if your community is driven by those who do all it takes to protect their behinds, or are concerned with their representation in the press and blogposts that reek of negativity and misguided competitiveness. Many companies still think that just being in business for a certain number of years proves their superiority over the new kid on the block – a dangerous fallacy. I am a believer that each business, like each individual, has its own gifts, and they should let the marketplace help guide them to that realization. It is innovation and value that people need, not an endless portfolio of mediocre work and workers who don’t seek the edge for its clients. Think about it, has anything great ever happened without overcoming naysayers or opposition? I would say no, it only happens when limitations are destroyed – especially when done creatively.
