Crain’s New York Business, Education Report: “Startup Factories”

New York’s colleges are stepping up support of budding entrepreneurs with courses, mentoring, networking, awards. High marks were given to Pace’s Lubin School of Business, where a 2011 pitch contest drew an audience of 400 — including venture capitalists, angel investors and bankers.

A special Education Report in the April 23 issue of Crain’s New York Business focuses on how New York’s colleges and universities have ratcheted up their commitment to supporting budding entrepreneurs in recent years.  With courses, mentoring, networking and cash awards, they are growing crops of would-be entrepreneurs that they say are far better prepared than their predecessors. 

Lubin Professor Bruce Bachenheimer,  Director of Pace’s new Entrepreneurship Lab, was interviewed by Steve Garmhausen for the article and his comments are highlighted below.  Read the Education Report in its entirety by clicking here:

  • One of the latest manifestations of the trend: the February launch, by Pace University’s Lubin School of Business, of an entrepreneurship lab that aims to facilitate collaborations between students in schools as diverse as nursing and business.  “The idea is that it will involve all Pace students and faculty from all the schools,” said Bruce Bachenheimer, director of the lab and of Lubin’s entrepreneurship program. “We’re stressing an interdisciplinary, hands-on experience to find new ways to solve difficult problems.”
  • Entrepreneurship programs are trying to teach just about everything else. The most straightforward subjects include writing a business plan and doing financial, competitive and market analysis.  “When it comes to the harder stuff, such as the ability to recognize opportunities, Pace and other schools use case studies, brainstorming lessons and other exercises to nurture that skill. “It’s kind of like teaching music or painting,” explained Mr. Bachenheimer.
  • Pitch programs—in which teams of students, alumni and others vie for cash prizes by developing and pitching business ideas—are a centerpiece of the entrepreneurship push among the city’s schools.  Pitch contests have also proved to be a great way to network and meet investors. The most recent contest at Pace drew an audience of 400, including venture capitalists, angel investors and bankers, said Mr. Bachenheimer.
  • Schools are grappling with the question of how to gauge the success of their entrepreneurship programs.  And by one definition, entrepreneurship training doesn’t have to result in a business launch to be successful. If a person is trained to size up opportunities and take initiatives, he and his employer have an edge, said Mr. Bachenheimer. “The nature of work is changing dramatically,” he said. “There’s no more ‘Give me a job and tell me what to do.’ ”

 

 

 

 

The Christian Science Monitor: “No, Chinese inflation isn’t a good sign”

Experts say that Chinese inflation is a natural side effect of a healthy economy. Here’s why they’re wrong, acccording to “Guest Blogger” Joseph Salerno, a professor of economics in Pace’s Lubin School of Business.

The Christian Science Monitor writes that it has “assembled a diverse group of the best economy-related bloggers out there – “The Circle Bastiat” – and we are proud that Lubin’s Joseph Salerno is one of them!

Dr. Salerno’s most recent article focused on inflation in China. It is embedded below, or read it online.

No, Chinese inflation isn’t a good sign

Experts say that Chinese inflation is a natural side effect of a healthy economy. Here’s why they’re wrong.

By , Guest blogger / April 10, 2012

Well, well, well, the Chinese economy is experiencing inflation. Overall consumer prices rose by 3.6 percent in March 2012, year-over-year, including an upsurge in food prices of 7.5 percent. Even the prices of venerable Chinese herbal medicines took an upward leap of 8.3 percent. According to a CNNMoney report, inflation is “the price of prosperity.” The report goes on to fatuously instruct us, “While inflation poses challenges for consumers, it is the byproduct of one of the most robust economies in the world.” A comparison of China’s 9.2 percent real GDP growth in 2011 with the paltry 1.2 percent growth rate for U.S. real GDP in the same year is thrown in as supposed proof of this statement.

But this is utter nonsense and one of the most deeply entrenched myths in both academic economics and media commentary. Basic economic theory demonstrates that “economic growth,” which is nothing but  an increase in the supplies of various goods and services, is in and of itself deflationary. An increase in the supply of any good (or service), with the supply of money and all other factors fixed, results in a fall in its price and a growth in its sales, as the excess supply of the good drives the equilibrium price down and expands the quantity demanded. This irrefutable economic truth has been illustrated time and again since the late 1970s by sharp declines in the prices of items like personal computers, video game systems, HDTVs, digital cameras, and cell phones and of (uninsured) medical procedures like Lasik eye surgery and cosmetic surgery. Furthermore, this fall in prices has not caused stagnation in these industries but has instead coincided with their rapid expansion. I have explained this phenomenon of  “growth deflation” in more depth elsewhere.

What then is the cause of the accelerating Chinese inflation? We need look no further than the money supply. The broad measure of the Chinese money supply, M2, which includes currency in circulation and all bank deposits, increased by 13.6 percent in 2011, although the People’s Bank of China had targeted a 16 percent increase. The PBOC has announced that it will set the money supply growth rate at 14 percent for 2012. This inflation targeting policy, so beloved by contemporary macroeconomists, augurs more rapid price inflation for Chinese consumers for years to come. More important,  China’s long-standing super-loose monetary policy means that inflationary credit expansion has fueled a great part of the rapid growth of the Chinese economy, which is therefore unsustainable and doomed to collapse. Indeed, the pace of Chinese economic growth has already begun to falter in the last two quarters. In response, the PBOC has already cut reserve requirements twice in the last three months.

Having allowed the inflation tiger out of its cage, the Chinese government is now desperately hanging on to its tail. It must either cage the tiger forthwith  and confront the damage it has already wreaked in the form of a collapse in its economic growth rate; or it must inevitably lose its grip and permit its burgeoning market economy to be devoured by the beast in an inflationary breakdown and reimposition of direct controls.

The Christian Science Monitor has assembled a diverse group of the best economy-related bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers’ own, as is responsibility for the content of their blogs. To contact us about a blogger, click here. To add or view a comment on a guest blog, please go to the blogger’s own site by clicking on blog.mises.org.

Time.com: “The ‘Cash Cow’ of U.S. Universities: Professional Certificates Instead of Degrees”

In February, Pace’s Lubin School of Business and the Association of International Bank Auditors joined forces to introduce a six-month program leading to a Certified Compliance and Regulatory Professional certificate. Professional certificates are valuable for mid-career professionals who don’t have time to plod through the programs of study required for advanced degrees but who need to update their skills regularly.

An article written by Jon Marcus for The Hechinger Report and appearing on Time magazine’s website today focused on the boom in certificate programs at four-year colleges.
 
Certificate programs can be added and updated more quickly than conventional academic ones.  And they can help workers keep up with fast-changing fields such as information technology and intelligence, or get raises or promotions.
 
But a main reason for the explosion in the number of professional certificates at traditional universities, administrators concede, is that they bring in revenue, largely from mid-career students who pay the full cost without needing institutional financial aid, or whose employers reimburse them for tuition.
 
 
“A global economy and the rapidity of progress in technology require continuous education,” said Neil Braun, the dean and a former president of the NBC Television Network and CEO of Viacom Entertainment. “Certificate programs are very useful for people who see the world around them changing faster than they can keep pace.”
 
Students see the benefit of a professional certificate more narrowly: to distinguish them from other candidates for scarce jobs.

Military Advanced Education: “Pace to Encourage Entrepreneurship”

Military Advanced Education, the Journal of Higher Learning for Today’s Servicemember, reports on the opening of Pace’s new Entrepreneurship Lab in the April issue.

Military Advanced Education saluted Pace’s launch of an Entrepreneurship (E-Lab) which is expected to both nuture the entrepreneurial spirit on campus and serve as a beacon for innovation in the Lower Manhattan community. In addition to the site in Manhattan, the publication noted that Pace opened an Entrepreneurship Lab at the Goldstein Academic Building on its Pleasantville, NY, campus.

Military Advanced Education quoted Neil S. Braun, dean of the Lubin School of Business, on the meaning of entrepreneurship:

“Entrepreneurship, in its broadest sense, is a personal approach for developing ideas into plans and plans into reality. It is interdisciplinary ‘doing.’  Entrepreneurial leadership is as important in large companies as it is in startups; it’s a mindset toward relentless problem solving that leads to successful execution” said Braun, who in his career has assumed many different type of roles, including internet entrepreneur, television network president, corporate attorney, CEO and film producer. “It is therefore at the heart of business education; it is the ultimate capstone for applying the knowledge and skills of the discrete disciplines to a product or service for a specific market opportunity.”

Professor Bruce Bachenheimer, the E-Labs leader, discussed the importance of an entrepreneurial mindset:

“The Entrepreneurship Lab aims to foster an entrepreneurial mindset – a way of thinking and acting that focuses on developing new ways to solve problems and create value,” said Bachenheimer, who drafted the initial proposal of the E- Lab. “These skills are important not only for those seeking to establish a new venture, but are increasingly critical in a wide variety of professional careers given today’s hyper-competitive marketplace, where rapid technological innovation and globalization has led to corporate downsizing and a dramatic change in the very nature of work.”

NYConvergence: “FinTech Innovation Lab Makes Wall Street Sexy Again”

In a double play … Professor Bruce Bachenheimer’s recent quote in MIT’s “Technology Review” concerning Wall Street losing some of its allure due to the financial crisis was picked up by NYConvergence.com, which reports on digital media technology in the Tri-State region.

Since Wall Street’s profits and prestige have slumped, the best and the brightest are looking elsewhere for jobs, making it harder to lure promising recruits. Bruce Bachenheimer, director of entrepreneurship at Pace University, told Technology Review that in the 1990s it was ”exciting and sexy to say you were working on Wall Street.”  But that’s changed. Those formerly positive perceptions have flipped 180 degrees.

Meanwhile, the prospect for tech entrepreneurs joining startups with the potential of a lucrative IPO is looking brighter all the time, reported NYConvergence in an article about the FinTech program.  Launched in December 2010, the lab is an incubator of NYC-based financial technology startups.

Technology Review: “Wall Street’s Search for Innovation”

Lubin Professor Bruce Bachenheimer, Director of Pace’s Entrepreneurship Lab, discusses the technology brain drain from Wall Street, how it’s become possible to be a force in financial services development without being in Manhattan, and what Wall Street is trying to do about it.

New York is investing in financial startups to make sure technologists and new ideas stick around.

After banking deregulation took off in the 1990s, it became “exciting and sexy to say you were working on Wall Street,” says Bruce Bachenheimer, clinical professor of management and director of entrepreneurship at Pace University. Money and prestige helped lure top academic talent, including mathematicians and computer scientists, to hedge funds.

But that has changed, beginning with 2008 and the financial meltdown. 

“The perception of working on Wall Street went from positive to negative,” Bachenheimer told Erik Sherman, author of  the article, “Wall Street’s Search for Innovation,” published in MIT’s Technology Review on March 16. Wall Street reached its latest low this week when a Goldman Sachs executive resigned and publicly excoriated the company’s ethics in a New York Times op-ed.

Meanwhile, places like Silicon Valley, Boston, and other hotbeds of high tech suddenly look like the most attractive places to be. With the recent spate of Web-company IPOs, technology startups are also potentially a faster ticket to wealth than Wall Street, where bonuses fell 14 percent last year, continuing a multi-year slide.

“Perceptions of desirability are very important in entrepreneurship. [Technologists] want to go where the action is and want to be doing cool stuff,” says Bachenheimer.

U.S. News & World Report: “Weigh Costs of Part-Time and Full-Time M.B.A. Programs”

The Lubin School of Business’s Part-Time M.B.A Program offers working professionals like Morgan Stanley’s Saj Sahni (pictured) the opportunity to earn a graduate business degree while continuing to pursue a full-time career. Sahni discusses the challenges of balancing his school and work lives.

Pursuing a part-time M.B.A can offer flexibility, as well as financial and professional advantages.

However, even for M.B.A. candidates for whom a part-time program makes the most sense, there are potential issues beyond finances to consider.

For part-time Pace University Lubin School of Business student Saj Sahni (pictured), balancing his responsibilities poses daily challenges, he told U.S. News & World Report’s Katy Hopkins in the March 14 article,  “Weigh Costs of Part-Time and Full-Time M.B.A. Programs; The major difference is often not in what you pay, but how.”

“It’s really difficult with the workload and your deadlines at work and trying to balance your school work,” says Sahni, who squeezes in homework during lunch breaks at Morgan Stanley. “It’s tough, but you have to do it for the short run.” 

 

 

MO.com: “Live Deliberately”

MO.com – a website for entrepreneurs that stands for Modus Operandi or Method of Operating – interviewed Professor Bruce Bachenheimer about his passion for entrepreneurship, early influences, how he fosters creativity and innovation in his students, mentors, social entrepreneurship, job challenges and his most important piece of advice for those ready to embark on the adventure of starting a business.

MO.com interviews entrepreneurs from all walks, across all industries, and from around the world.  The online publication recently spoke with Pace’s Bruce Bachenheimer and asked him to share his strategies and business philosophies with its readers.  The article is embedded below or read it online where you can vote for Professor Bachenheimer as giving the month’s best interview by clicking here

“Live Deliberately”

Written by MO

Bruce Bachenheimer, Pace University

Director of the Entrepreneurship Lab

http://webpage.pace.edu/bbachenheimer/

Bruce Bachenheimer is a Clinical Professor of Management, the Director of the Entrepreneurship Lab and a Faculty Fellow of the Wilson Center for Social Entrepreneurship at Pace University. He teaches undergraduate and graduate courses, primarily in the areas of entrepreneurship, management, and strategy.

Bruce has been widely quoted in a variety of publications, interviewed on radio and television, and has spoken on entrepreneurship at numerous conferences, including the Annual Youth Assembly at the United Nations, the Global Consortium of Entrepreneurship Centers, and the Make Mine a Million $ Business program, where he also served as a judge. Mr. Bachenheimer is a reviewer for the CASE Journal, the founding faculty advisor of the Pace Association for Collegiate Entrepreneurs, a Students In Free Enterprise (SIFE) Sam Walton Fellow, and the organizer of the Pace Business Plan Competition and the Pace Pitch Contest.

Bruce is a member of the Board of Directors and past Chairman of the MIT Enterprise Forum of New York City and has served on the organization’s Global Board. He also serves on the Board of Directors & Advisors of LeadAmerica and has served as a consultant to the NYC Department of Small Business Services and the New York City Economic Development Corp. He founded Annapolis Maritime Corp. and co-founded StockCentral Australia.

Bachenheimer began his career as a Wall Street trader then had the courage to take a step back from the rat race and go sailing … for several years. After sailing through the Caribbean to South America, he headed to Annapolis, Maryland, where he launched a business importing teak lumber and taught himself yacht joinery. Bachenheimer then transitioned to a career in high-tech forensic science, where he served as the International Product Manager for an entrepreneurial venture, conducting business in over 20 countries. Several years later, he received the prestigious McKinsey & Company Leadership Scholarship to pursue and MBA degree, which he earned from the Australian Graduate School of Management. While completing his degree, he co-founded StockCentral Australia, which grew to become one of the largest financial websites in the country. A Pace alumni, Bachenheimer earned a BBA, Summa Cum Laude, from the Lubin School of Business. He was conversational in Japanese and spent a semester at Tsukuba National University in Japan as an undergraduate.

MO: Where does your passion for entrepreneurship come from? Who or what were your early influences or inspirations?

Bruce: I grew up in a somewhat rural area and there were hardly any local businesses where neighborhood kids could find part-time or summer work. Out of necessity, I created my opportunities; building things such as rabbit hutches and photographing neighborhood homes, which I printed, mounted and sold myself. I also did a fair bit of hiking and camping, which instilled a sense of independence and self-reliance. Another early influence was Henry David Thoreau’s Walden, particularly the line “I went to the woods because I wished to live deliberately, to front only the essential facts of life, and see if I could not learn what it had to teach, and not, when I came to die, discover that I had not lived.” I later bought a boat and sailed from New England to South America and back to Annapolis, Maryland – I named it Deliberate, which is how I try to live.

MO: How do you foster creativity and innovation in your students? Is creativity something that we’re born with or can it be taught and developed?

Bruce: Some people are certainly born with more creativity than others, but I believe creativity and innovation can be taught and developed. I use a variety of methods to encourage students to think and act more innovatively. Conducting engaging classroom exercises, selecting non-traditional texts, using interesting case studies, bringing in dynamic guest speakers, showing inspirational video clips, incorporating business simulations in the curriculum, assigning challenging projects, and taking students on filed trips or extracurricular activities are some examples. I try to remember something Confucius said: “I hear and I forget. I see and I remember. I do and I understand.”

MO: Have you had any mentors during the course of your career?

Bruce: Sure, there were many and I’m grateful to each of them. Instead of a seeking an individual mentor for general career or life advice, I have turned to a variety of mentors for help in specific areas: interviewing, negotiating, presenting, managing, serving on a board, and teaching.

MO: Why do you think that the field social entrepreneurship has recently exploded? Why are people looking for more meaningful ways to carve out a career and how will this trend impact the start-up landscape?

Bruce: There are so many reasons. But in a way, I believe it is just a natural progression for people in an advanced society – a sort of move up Maslow’s hierarchy towards self-actualization. Generally, I think we are increasingly aware of important social issues and have more resources available to address them. Entrepreneurship is really about finding new ways to solve problems and add value, commercially and/or socially. More locally, it appears that the 9/11 terrorist attacks have had a profound and lasting impact on people’s desire to find meaningful careers. I’d recommend David Bornstein’s book ‘How to Change the World’ to better answer the question.

MO: You’re in constant contact with bright, young innovators. What aspects of teaching and mentoring are most inspiring for you? On the flip side, are there any aspects of your job that you find specifically challenging?

Bruce: I really do enjoy working with bright, young, motivated entrepreneurs and innovators. I am inspired by them and honestly believe that nobody learns more that the person standing at the front of the classroom. I don’t only work with my own students, but many throughout Pace and from numerous other universities. I organize the Pace Pitch Contest, which attracts competitors from schools such as NYU, Columbia, Princeton, Harvard, MIT, and Stanford. It’s been great to help teams prepare for the competition and then see them ace their pitch. I’ve kept in contact with many of them and am proud of what they are accomplishing. I have also enjoyed working with young entrepreneurs as a member of the board of the MIT Enterprise Forum of New York City over the past decade and as a mentor at the Kairos Society Global Summit this past year. I guess the biggest challenge is being as critical as I believe is necessary, while not dampening passion or discouraging persistence. But that’s passion and persistence, as opposed to arrogance and stubbornness.

MO: What is the most important piece of advice you have for those looking to start a business?

Bruce: Start by looking for something you’re truly passionate about. If you haven’t found that, don’t start a business – keep looking. There are so many challenges in launching a new venture – requiring so much time, energy, resources, social capital, and emotional commitment – it better be something you really love. Another thing is to find great people – great mentors, great partners, great advisors, and great employees.

 

Westchester County Business Journal: “Bachenheimer now runs E-Lab”

Pace University’s new Entrepreneurship Lab, known as the E-Lab, is available to all Pace students, in New York City and in Pleasantville.

Pace University’s new Entrepreneurship Lab, known as the E-Lab, now has a CEO –  it’s professor Bruce Bachenheimer of Chappaqua. A clinical professor of management at Pace, Bachenheimer is now also the director of the E-Lab. It is available to all Pace students, in New York City and in Pleasantville.

Bachenheimer will advise all aspiring student entrepreneurs, in everything from accounting and computer science to law and the performing arts, noted the Westchester County Business Journal.

He came up with the idea for the annual Pace Pitch Contest and Business Plan Competition, which he introduced in 2004, just after joining the Lubin School of Business faculty.

“The Entrepreneurship Lab aims to foster an entrepreneurial mindset – a way of thinking and acting that focuses on developing new ways to solve problems and create value,” said Bachenheimer. “These skills are important not only for those seeking to establish a new venture, but are increasingly critical in a wide variety of professional careers given today’s hyper-competitive marketplace, where rapid technological innovation and globalization has led to corporate downsizing and a dramatic change in the very nature of work.”

Bachenheimer began his career as a Wall Street trader, and then took several years off to sail through the Caribbean to South America. After that, he launched an importing business and then moved into high-tech forensic science before joining Pace.

U.S. News & World Report: “Amidst M.B.A. Inflation, Executives Recommend Business Doctorates”

Students who choose to supplement their graduate work may benefit from an evolving doctoral business field, which increasingly caters to students who want to work in industry rather than academia.

Some say that business-related Ph.D.’s and D.B.A.’s provide the exclusivity M.B.A.’s once offered.

Admission to doctoral programs is very competitive, and many doctoral students and executives recommend that students get practical work experience between graduate school and doctoral applications, writes Menachem Wecker, education reporter at U.S.News & World Report in an article on doctorate degrees which featured one of Pace’s recent DPS graduates.

Andrew Forte, president of Forte, Inc., which operates the Stroudsmoor Country Inn in Stroudsburg, Pa., recommends a doctorate to aspiring executives. Forte says that whereas M.B.A. programs teach students the tools and methods of how to do things, doctoral programs train students to understand why situations arise in organizations. 

“When I finished my M.B.A., I wanted to know more [and get] more perspective,” he says. Forte has also been able to leverage his doctorate to land positions on boards of local nonprofits and corporations—something that he says he wouldn’t have been able to do with just an M.B.A. 

Students who are considering a doctorate can prepare by getting used to heavy academic reading and demanding schedules, and by laying some groundwork in statistics, says Forte, who holds a doctor of professional studies from the Lubin School of Business at Pace University.