“This is the most manic depressive way you could possibly live life…” Leo Valiquette posted an interesting blog about the stigma around entrepreneurship certain people hold on blogs.itbusiness.ca and draws upon the documentary The Startup Kids. The opening line in quotations is the first example of what some people think of the entrepreneurial world, but Leo gives argument to the fact that entrepreneurs are needed in the world.

The blog is focused on the IT side of the world but the overlapping principle around entrepreneurs is relevant in any aspect of business. From an Ottawa perspective, the article pulls reference from ten years ago when the IT sector was in decline with telecom jobs and photonics startups failing left, right, and center. From the documentary, a kid tells his guidance counsellor that he wants to become an entrepreneur but is quickly told to abandon such a reckless idea. The failing IT industry a decade ago induced a reduction in enrolment into IT programs as dejected IT parents encouraged kids to go elsewhere.

I would agree with Leo Valiquette’s stance on entrepreneurship. Youth can not be turned away from such a career path because it is risky, or because it was not the career choice of the person giving advice. Entrepreneurs are a special breed of people with drive beyond comprehension, but this does not disuade the fact that they need guidance and help from experienced entrepreneurs who already know the tricks and have made the mistakes. Aspiring entrepreneurs are needed in society and should be given direction; they should not be told to move elsewhere.

The Startup Kids Trailer

The BP oil spill was a tragedy many may not still think about. However, the consequences of the spill are not yet over for neither the environment or the company. Today, BP agreed to pay $12 billion in government and private settlements over the 2010 Gulf of Mexico oil spill, but the company could face billions more in fines. The details of the fines can be found in an article on the Bloomberg website.

But what’s most interesting is that fines are not the only thing the company may have to deal with.

Individuals of the company have been charged with serious criminal offences. Three individuals who were in charge of the estimated flow rates of the spill were charged for deliberately low balling the numbers, making the spill seem less damaging. Two of the men were also charged for involuntary manslaughter with relation to the 11 deaths caused by the spill. Many other charges were also laid against several individuals.

The idea of such serious criminal charges coming from your job is an appalling thought to me. Other than a few financial fiascos, I don’t relate crime with business very often. Who knows who might have told the site managers to low ball the numbers? It seems an incredible stretch to charge manslaughter over to an oil spill which is nothing short of a horrible accident. From a law perspective, it will be intriguing to see how this one turns out.

Entrepreneurs, Wade Larson and Janice Cheam, in Comm 101 on Thursday, November 8, were both very enticing and captivating in their guest lectures. Janice talked through the concept, start-up, and continuanceof Energy Aware (a company selling meters measuring your energy consumption and its cost). Wade swiftly guided the audience through a brief history and explanation, as well as the future of UrtheCast (the first high-definition video platform of Earth). Both highly successful businesses started from scratch.

The lecture caused me to wonder: why do it?

Janice’s story spoke of long days trying to get Energy Aware off the ground while tutoring every night for months. Between the stress of launching a company while continuing to work and trying to pay the bills, I wonder: was it worth it? The opportunity cost of not only the money she and her family put in, but her time seems astronomical. I can only imagine that to want to push through all that, you have to want to be the CEO from the get go. The business surely could have flopped just as easily and all would be for naught.

Wade made me wonder what the biggest pull to become an entrepreneur is. He was in a good job, with 4 (almost 5) kids, a mortgage and bills to pay. What incentive is so strong that he decided to risk it all, and go for it? His project, involving millions of dollars, is an even more daring attempt than Janice’s.

I wonder if the two of them ever thought five, maybe ten years ago, that they would develop their own business, or if it was just a sudden click in their minds that they could and should.

The Globe and Mail posts an interesting problem developing in the work force today in its article about balancing work and life. Canadians today are less satisfied with life than they were twenty years ago, reports a survey taken by over 25 000 Canadians run by professors Linda Duxbury of Carleton University and Christopher Higgins of the University of Western Ontario. 

The survey states that more than two thirds of Canadians are now working more than 45 hours per week, up 50% from twenty years ago. Work weeks are also more rigid and flexible hours are becoming a thing of the past. A third of workers feel they have to do more work than time permits and an average of seven hours of work per week is taken home. If you include family responsibilities, 40% feel overwhelmed.

The survey also brings up an interesting point that employers may feel that giving more work to fewer workers will cut down on costs and increase productivity, but that’s not what professors Duxbury and Higgins found. The high stress and constant overload of work actually decreases productivity as sleep is often sacrificed. The result is everything from sick days to slower works. Flexible working arrangements need to be not just company policy, but part of understanding management, says Duxbury. 

Flexible hours, understanding management, and manageable workloads would be a very appealing factor in the recruiting process and actually attract better workers looking for a good life – work ratio. This is something employers should think about in their workplace.

The Globe and Mail’s article “Higher Mortgage Rates Would Hit Households Hard: BMO” is centered around a survey conducted recently by the Bank of Montreal. The survey suggests that nearly seventy five percent of Canadian households would be under financial pressure if mortgage rates were to increase “modestly.” This places a the Bank of Canada governor in a tricky situation. Low interest rates are said to be the cause of the nation’s high debt levels, but increasing the rates could diminish economic growth.

This is an extremely troubling situation for Canadians. Low rates have allowed many homeowners to get into the market but just barely. Jim Flaherty, Finance Minister, tightened the rules around mortgage this past summer in this Vancouver Sun article. This restricts the market, but it keeps consumers out of debt. Nearly all those surveyed said debt was a major issue for Canada. If low rates are the cause for debt, then rates should be raised, right? But with sixteen percent of homeowners saying they would be on the brink of being unable to afford their homes if rates were raised, this poses a huge ethical dilema. Raise rates to keep potential consumers out of debt or keep rates low to help existing debt carriers manage their finances?

This Time article sparks some interesting thoughts on sports team worldwide. Sport teams have a certain prestige about them and people have always been willing to pay big bucks to say they own a team. However, prices may finally have hit a ceiling. Many of the big players in the owners world are getting out and selling their teams. Philip Anschutz, owner of the NBA NHL and MLS team in Los Angeles, Randy Lerner former owner of the Cleveland Browns, John Henry, owner of the Red Sox and Liverpool, have either sold or are looking to sell their teams. These men are considered some of the savviest in their business. Prices of teams are up 11% from a year ago while the economy is in a weak state causing some unease as to when they may topple, and the relationship between management and labour in the sports world is consider to be the worst in business. These factors are making some predict that prices might swing the other way.

It’s always been fascinating to me about how much money is involved in the sports world. The sports market is an interesting one. People are always willing to pay enormous prices to watch sports live, and with no competition besides the other team, the market is always there for you. People even pay large Pay Per View charges to watch sports on TV. It’s an incredibly isolated market.

In a post on Jeremy Sugden’s blog, he speaks of an ethical law decision related to business. Should whistleblowers be exempt and free from any charges that they are confessing and giving evidence to? Jeremy refers to an article from the Washington Post in which one man blow the whistle on a Swedish Bank that was helping American clients evade taxes. He was part of such activities until he came forward. The IRS rewarded him with $104 million but he was sentenced to three years in prison for his actions.

It’s quite an interesting dilemma. The IRS has a reward system in place to encourage people to come forward and yet the US judicial system will prosecute you if you do come forward. It appears rather contradictory. I suppose there are incidences when people have never participated in the activities they are giving evidence towards, but you would imagine the best evidence and the best witnesses would be the ones highest up and most involved in the illicit actions. I think it would be best for whistleblowers to be free from any charges as jail is a strong deterrent to stay quiet. At the same time, I believe the reward is crucial because people could stay at their job and make money instead of the reward. If they come forward, the company certainly won’t want them back as an employee and now they are out of a job and money.

Over a recent dispute written by Bloomberg between China and Japan, anti-Japanese sentiment has flared up in China. Violent protests over the Japanese’s government purchase of the Diaoyu (in China) or Senkaku (in Japan) Islands led Chinese protesters to chant “Down with the Japan devils, give back Diaoyu,” on the 81st anniversary of the Manchurian Incident. Protesters anti-Japan campaign has spilled over into the auto sector. Japanese made vehicles such as Honda, Mazda, Mitsubishi, Nissan, and Toyota have all been targeted. Protesters have flipped cars and attacked and vandalized dealerships. People have gone to such lengths as to take the bus and leave their vehicle at home. Toyota, Honda, and Nissan have all ceased production at Chinese plants. Dealerships say the walk in customer average over the weekend was half the normal. Market share for Japanese automakers is expected to drop below that of German automakers.

It is amazing how influences completely beyond the control of companies of the Japanese auto industry can have such effects on the business. Ill feelings towards a company can last a long time and in no way has the company brought this upon themselves or could they have planned for it. It’s an incredible way the economy can work and some analysts say this could hurt these companies worse the tsunami last year. All due to consumer taste.

This article from Foreign Policy focusses on the iPhone and the many ethical situations around its materials, production and use. This post will disuss one particular material used within the iPhone, and other electronic devices, found in the Democratic Republic of Congo: Coltan.

Coltan, short for columbite-tantalite, is used in almost every electronic device around the world including the iPhone. The mineral coltan is able to hold a high electrical charge for lengthy periods of time and for that reason, all mobile devices as well as the iPhone use coltan to improve battery life.

While 50% of the world’s coltan resources are mined with fair practices from Australia, many mines in Congo are controlled by rebel groups. The DRC does not benefit from the profits of the mines. In fact, the mines create dangers in the country. Not only are the working conditions extremely hazardous, but the war over control of the mines has killed nearly seven million people in the last twelve years. Apple claims it requires suppliers to “certify that the materials they use have been produced in a “socially and environmentally responsible process”” but the mineral is very hard to trace. As a company, business, or even consumer in the electronics world, how do make sure your electronics avoid coltan mined from the Democratic Republic of Congo?

Welcome to UBC Blogs. This is your first post. Edit or delete it, then start blogging!