the economics of business, job, wealth and revenue creation. · 3 jobenomics fulfilled predictions...
TRANSCRIPT
The economics of business, job, wealth and revenue creation.
20 by 20: Create 20 million new private sector jobs by 2020.
Chuck Vollmer
Jobenomics, Author and Founder 9 October 2011
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Jobenomics
Goal: 20 million US private sector jobs by year 2020.
A Book Released September 2010 Details threats to our economy Provides a detailed plan for
American business and jobs creation
Business Generation Projects Seven major Jobenomics proof-of-
concept projects underway Raising $650M of private sector
capital from US and foreign sources
A Grassroots Movement 1,500 small business owners have
endorsed the Jobenomics plan 3 million reached by radio and TV Growing political interest
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Jobenomics Fulfilled Predictions Source of US economic problems primarily is with government.
Government $12 trillion stimulus package would not spur recovery.
$12T infusion power-lifted stock market and secured banks but did little for small business, jobs creation and the general economy.
Debt crisis would be hard to resolve and divide the country.
US dollar’s value would erode and US credit rating be lowered.
State and municipal government layoffs would accelerate.
Government cannot create jobs, only the private sector can.
Big business would not use excess cash ($Ts) to create US jobs.
Small business is the only source for meaningful jobs creation.
The US economy will continue to falter unless a small, emerging and self-employed business plan is implemented.
US economy is likely to suffer another major set back by mid-2012.
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Future Economic Shocks That Could Cause A Double-Dip Recession Or Worse
Domestic Political gridlock Social unrest, protests, riots Public/private debt crises State/local government
insolvencies and mass layoffs Stock market shock Derivatives crisis 2nd real estate crisis/strategic
defaults Pension fund defaults Black Swan event
The potential for shocks is relatively high, while the Fed’s ability to offset shocks with fiscal and monetary policy is at an all-time low.
Foreign Sovereign default/debt
restructuring Eurozone crisis Iran conflict/Strait of Hormuz
closure Arab-Israeli crisis/Arab Spring Terrorist/organized crime cartels Narcotization of Latin America Withdrawal from US treasuries New reserve currency Unknown-unknown(s)
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12.0 10.7
17.119.4 18.1
21.7
40s 50s 60s 70s 80s 90s 00s 10s
-0.9 ?
Lost Decade
US cannot afford another lost decade of private sector jobs.
Lost Decade
Total New US Jobs Millions per Decade
Prosperity 20.0
Collapse
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Unemployment By The Numbers
13.7 million are “officially unemployed” (U3 rate). 111.5 million are “total/marginally unemployed” (U6) or “not looking for work” (86.1).
Unemployment As of: September 2011Rate Definition Percent Millions
U1 Long-Term
Unemployed 15 weeks or longer, as a percent of civilian labor force
5.4% 8.3
U3 Official
Total unemployed, as a percent of civilian labor force
9.1% 13.7
U6 Total
Total unemployed + marginally attached workers + part time employed
16.5% 25.4
154.0 50%
86.1
Remainder (mainly children) 68.9Total US Population 309.0 100%
Unemployed
Source: Bureau of Labor Statistics
Table A-1 Not in labor force (those who have no job and are not looking for one)
Civilian labor force (ages 16+ including employed and unemployed)
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Too Few Supporting Too Many
Civilian workforce is decreasing while overhead is increasing.
Non-Working Sector Welfare Recipients 51 million receive Social Security payments 45 million are Medicare beneficiaries 59 million receive some form of Medicaid 44 million receive food stamps monthly 37 million fall below the poverty level 26 million are unemployed
Government Sector Workforce 22 million civilians 10 million government contractors 3 million in the armed forces
Private Sector (non-farm) Workforce 18,000 large, 6 million small and 22 million
self-employed businesses 87% work in the service industry
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Jobs Creation In The ‘10s
The US is producing 35% the number of jobs needed as measured by the traditional benchmark of 250,000 jobs per month.
Employment (1000s)
1 Jan 2010
30 Sep 2011
Total
Private Sector 106,835 109,349 2,514 100% Small Business Gains
Government 22,485 21,985 (500) 96% State/Local Losses
Total 129,320 131,132 1,812
Source: BLS 86 21 Month Average250 Traditional Benchmark
35% Shortfall
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Private Sector Jobs Creation In The ‘10s
Jobenomics 20 by 20 goal of 167,000 is for new private sector jobs (excluding government) and is currently 58%-72% of goal.
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‘10s Jobs Growth: 100% Small Business
With better government and financial institution support, small business would have added significantly more jobs.
Small business produced 100% net new jobs in this decade. Small businesses succeeds without government stimuli and
limited bank lending.
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Big Business Unlikely To Reemploy Many
Corporate Recovery
Increased Employment ≠
The Fortune 500 has not added any net new jobs in decades.
Reasons for not hiring: Hoarding cash Making money-on-money
rather than re-capitalizing Downsizing & outsourcing Getting more with less
(productivity) Use of part-time workers Mergers and acquisitions Investing in foreign emerging
markets rather than the USA
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Small Business: US Economic Backbone
US small businesses receive little US government support in comparison to large corporations and financial institutions.
Small businesses:
Employ 70 million US citizens
Represent 99% of US firms
Generate 90+% of all new jobs
Have $6 trillion annual revenues (2nd largest economy in the world)
Pay 45% of total US payroll
Hire 40% hi-tech workers
Produce 13 times more patents than large firms
Produce 30% of all exports
Large Businesses18,000
SmallBusinesses6 Million
Self-EmployedBusinesses21.7 Million
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Jobenomics 20 by 20 Campaign Plan
18 million new US small, self-employed, and emerging businesses.
10 Million New Jobs
Small & Self-Employed Businesses
Community-based business incubators and training centers
Cloud computing initiative
Women-owned business initiative
Direct-Care (elder, child, healthcare) Centers
Real estate owned (REO) property initiative
Business ministries
Capital to the base-of-the-pyramid initiative
Large US Businesses
Foreign Businesses 3 Million New Jobs (15%)
Bring foreign manufacturing back to the USA
EB-5 foreign investor program
Energy Tech Revolution Plan 5 Million New Jobs (25%)
National initiative for system-of-systems approach to: Energy independence Energy assurance
Emerald Planet initiative
Em
erg
ing
Bu
sin
esse
s
2 Million New Jobs (10%)
10 Million New Jobs
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Current Proof-of-Concept Projects
Each of these projects are highly scalable across the USA.
20 by 20
Jobenomics Cloud Computing Programs • MetroCore Initiative • SNVC Small Business Beta Test • ACTS Google Certification Program
Jobenomics eWaste Program Jobenomics-Harlem, Jobenomics-
Washington DC Jobenomics Center for Industrial
Development (Foreign Business/Investors) Veterans Jobenomics Center Jobenomics International Mining
Collaboration (Liberty Star) Jobenomics Charter Community Concept
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Presentation Outline
Jobenomics 20 by 20 Campaign Plan
Jobenomics Proof-of-Concept Programs
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20 by 20: Top Small Business Initiatives
Jobenomics has started all these initiatives with significant private sector involvement and support.
Establish community-based business generators
Incentivize women-owned business creation
Develop a national in-home direct-care program
Start a national cloud computing initiative for small businesses
Establish a combat veterans-owned business generation center
Start real estate private equity/ property management initiatives
Develop business ministries Create a national capital to the
base-of-the-pyramid initiative
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Community-Based Business Centers Community-based
business centers helps train, implement and fund small, emerging, and self-employed businesses.
Jobenomics emphasis is on services-providing industries that provide 87% of all US jobs.
A center is comprised of:
• Community-based business incubators. • Community-based business generations.
Our goal is to create a community-based business centers in every American major city by 2020.
Jobenomics is partnered with CEO Space, a 20 year old, entrepreneurial training network that has trained over 100 thousand
entrepreneurs and has hundreds of chapters throughout the USA.
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Incubators Versus Generators
Business Incubator Creation of individual
entrepreneurial-based businesses.
Examples: • High-tech startups • Foreign-owned businesses
and investment (EB-5) • Service industry startups
By “bundling” the most viable opportunities, major sources of
investment capital may be obtained.
Business Generator Mass production of
businesses in a particular industry sector.
Examples: • Cloud computing • Residential energy audit
and weatherization • Direct-care centers
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Women-Owned Businesses
Jobenomics is partnered with Woman’s Online and Education Network and The Women’s Information Network that reach out to over 3 million women.
The Jobenomics is supported by major women’s groups.
The 2010s should be the decade of women-owned businesses: greater financial needs and incentives, more qualified women and heads of households, more opportunities, highly educated, and less cultural barriers.
10.1 million US women-owned businesses: • 90% of women-owned firms are self-
employed businesses • Overall economic impact at $2.8T with
23 million direct and indirect employees Generate over 70% of all new small business
start-ups
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Cloud Computing
Jobenomics is developing CC business practices for small businesses.
Cloud computing is as big a paradigm shift away from personal computers as were PCs were from mainframes in the 1990s.
Cloud computing is the practice of using a network of remote servers hosted on the Internet to store, manage, and process data, rather than a local server or personal computer.
Cloud computing offers lower start-up costs, significant savings and operating efficiencies to small and self-employed businesses.
Mainframe Computers
Personal Computing
Cloud Computing
1990s 2010s
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Direct-Care Initiative Direct-care services include:
• Elder-care • Healthcare • Child-care • Handyman services
By 2020, assisted-living facilities are projected to have a 17 million bed shortfall for an aging US population.
A community Direct-Care Center would coordinate service providers and clients via call-center and a web-based information systems.
The Center would also help create home-based small businesses that are certified to provide in-home services.
Information technology enables direct-care business creation.
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REO Initiative
REOs present a major opportunity for small real estate and property management firms that can convert REOs into rental properties or low-cost homes.
Jobenomics is working with small business specializing in REOs.
0 %
2 %
8 %
4 %
17.5 %
% of Houses in ForeclosureSeptember 2010
Source: CoreLogic/Washington Post, 19 Oct 10
Foreclosed bank-owned properties, called REOs, are a triple threat to recovery: loss of value to homeowners, banks unequipped to be property managers, and loss of property taxes to municipalities.
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The largest social network in America, 327,000 churches, is the one that is the least prepared for a joblessness—the need is great.
Families broken by unemployment, poverty and financial hopelessness justify development of business ministries.
Business ministries include small focus groups, counseling and training, part-time and volunteer services, business incubators, and micro-financing programs.
Business Ministries
Business ministries provide inspiration and skills to the unemployed.
Full-time Jobs
Part-time Work
Training Internships
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Capital to the Base-of-the-Pyramid Community-based incubators
• Identify and prioritize opportunities
• Government underwriting • Small business bank loans • State and municipal bonds • Federal grants/incentives
Angel and 504/506 investor debt and equity financing
Public offerings (OTC, Pink Sheets, Penny Stocks)
Foreign financing (e.g., EB-5) Direct Public Offering (DPO)
A national initiative is needed to deliver capital to small businesses.
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2010s Energy
Technology Revolution
(ETR)
5 million new jobs Jobenomics Goal
20 by 20: National Energy Technology Revolution (ETR) Initiative
The country that dominates the ETR will be the next superpower.
Post WWII Military
Technology Revolution
(MTR)
1990s Information Technology Revolution
(ITR)
10s of millions of new jobs
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20 by 20: International Investment Over the next decade, much of the business growth within the US will
be from companies in emerging economies in Asia and the MidEast.
1990s
Japanese Auto Plants $20B Investment
Create 3 million new jobs in the US via international corporations and investors by 2020, to gain preferred access to US market.
2010s
International Plants $200B to $400B Investment
3 Million Direct & Indirect
Jobs
150,000 Direct & Indirect
Jobs
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20 by 20: Large Business Initiatives
Create 2 million new corporate jobs by 2020.
US multinational corporations: 1 million US expatriate positions overseas to develop bi-national business opportunities.
US domestic corporations: 1 million new jobs. • Re-shoring US jobs • Reciprocal-trade policy • Preference to US companies for
US taxpayer funded programs • Improved federal government
support, promotion and protection
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Presentation Outline
Jobenomics 20 by 20 Campaign Plan
Jobenomics Proof-of-Concept Programs
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Jobenomics Cloud Computing
Goal: create jobs, new businesses and social transformation.
Jobenomics is partnered with SNVC ($20M/yr, 110 employees) as a small business beta-test to verify cloud computing business efficiencies, and offer these efficiencies to other small businesses via consulting, technical services, and proprietary cloud computing solutions.
Jobenomics is partnered with The ACTS
Institute, a non-profit organization, that administers cloud computing educational services to assist individuals to acquire higher-level skills, prepare them for new career opportunities, or start new cloud computing small businesses.
R. Michael Buehler, CEO
Jobenomics is part of the MetroCore Consortium that is developing a national ultra-secure cloud computing and financial services platform.
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Jobenomics MetroCore Initiative
MetroCore is a national-level initiative that can create or enable creation of millions of new businesses and jobs.
MetroCore 3.0 Software (Net 3.0) is a next generation semantic web (Web 3.0) system that integrates cloud computing services (Iaas, PaaS and SaaS) and is deployed via private/hybrid clouds.
MetroCore Prime is a ultra-secure information security system.
MetroCore Fiber consists of long and short-haul, state-of-the-art telecommunication systems.
MetroCore Super Back-Office systems provide financial/supply chain management and underwriting.
Institutional Investors & Underwriters are investing to deploy MetroCore in target US markets and underwriting the financial services elements of projects.
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Jobenomics Electronic Waste Program
US discards millions of tons of eWaste. Most is dumped in landfills. The rest is exported.
Europeans are operating 60 sophisticated processing plants that are highly profitable and produce many entry-level jobs.
Jobenomics established eCycling USA with an exclusive agreement with the Europeans for 10 turnkey US plants.
eCycling USA will donate a percentage of its profits to Jobenomics community-based business generators.
Objective: 100s of US eWaste plants employing tens of thousands.
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Jobenomics Harlem
Jobenomics Washington DC is also underway.
Michel Faulkner
Objective is create 1,000 new small businesses per year for inter-city residents of Harlem, New York.
Lead by Michel Faulkner: • Runs Institute For Leadership • Ran for 112th Congress on Jobenomics
platform (Jobs Now Party) Key efforts:
• Jobenomics business generator started at the Institute For Leadership
• Four new businesses areas: eWaste, ACTS cloud computing, energy audit & weatherization, Music Wizard Academy
• $20 million micro-business line of credit established with local banks
Institute For Leadership Class
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Jobenomics Center for Industrial Development for Establishing and Financing Foreign Businesses in the USA
Objective is to train foreign businessmen how to start US businesses.
Lease-purchase agreement signed for 1,200,000 sq. ft. industrial center, hotel and training center.
EB-5 Foreign Investor Visa program joint venture formed for foreign investors.
Raising $25M to commence operations at pilot site in Massachusetts.
Southbridge, Massachusetts
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Veterans Jobenomics Center
Objective is to assist vets to start their own businesses.
Few jobs are available for returning US combat vets. Vet unemployment is higher than national average
The Center will help vets: • Incorporate their own business. • Train how to run a business. • Finance start-up businesses. • Provide transition counseling.
Started a non-profit company, securing alliances, and raising public/private funding.
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Jobenomics Int’l Mining Collaboration
Project involving the exploitation of existing mining claims in Alaska, Arizona that contain trillions of dollars of mineral reserves.
$200M worth of private sector funding is being sought from domestic and foreign investors.
Initial meetings with Arab and Chinese officials indicate significant interest. In addition to economic value, collaboration has political and diplomatic value.
Jointly exploit major copper, gold, moly and uranium claims in North America and help GCC countries explore Arab Gulf.
Alaska
Arizona
Big Chunk
North Pipes (431 Uranium Breccia Pipes)
East Silver Bell Walnut Creek
Bonanza Hills
Gold, Copper, Molybdenum
Claims
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Jobenomics Charter Community Concept
Goal is to establish entrepreneurial-based communities. Jobenomics is working with Project Metamorphosis to build a
practical integrated blueprint and comprehensive architecture for sustainable economic communities.
A Charter City will be sustainable and eco-friendly communities tailored to entrepreneurs who want to start their own businesses.
Concept deals with transformation of how the US does business in the future starting with a few pilot projects that are scalable and repeatable across America.
The team is now business planning and developing a superfund.