Yesterday I wrote about the failure of IndyMac bank and how it was seized by federal regulators on Friday, but I didn’t cover the “what’s next?” aspect. There are a couple of things in particular that investors who have IndyMac loans need to know, and for those without IndyMac loans it is still good information to understand in case you deal with other bank failures in the future.

Some of the most important things that could be impacted by IndyMac’s failure are construction loans. For those who are not familiar with construction loans, typically banks pay out the loans based on certain milestones. So, after a builder gets the foundation done, they receive a payment which covers the expenses until the next milestone, and so on. Well, now all the builders who rely on these distributions to fund the construction of their homes might have some problems. Because the FDIC (who now controls IndyMac) has certain protections, they are able get out of these loans if they so choose.

One developer’s concern was captured in The Wall Street Journal: "’I don't know what's going to happen,’ says Raymond Pacini, chief executive of Hearthside Homes, a small builder based in Irvine, Calif., that has two loans totaling $34 million from IndyMac. ‘We are just waiting for the dust to settle.’” According to the same article, a FDIC representative was quoted as saying the FDIC was prepared to do a case-by-case review of the construction loans. So, if you are a developer with an IndyMac loan, you had better cross your fingers and hope for the best. But if I were you, I would start looking for a backup plan just in case.

Another interesting development, which is not necessarily part of a typical FDIC bank seizure, is that the new IndyMac is putting all foreclosures on hold. The FDIC chairman Sheila Bair has been one of the most outspoken parties about how banks should cut borrowers some slack and really try to work things out before proceeding to foreclosure. Now that the FDIC has taken control of one of the biggest mortgage lenders in the country, Bair has a chance to test out some of her ideas and seems ready to do so. They didn’t specify whether or not they were willing to work out deals with investors who have bad loans with them but, chances are, if you were ever going to be able to cut a deal now is the time. The FDIC is actively trying to sell off IndyMac’s assets and it is very likely that the purchasing party will not be as friendly as Bair wants IndyMac to be.

Lastly, it appears that the FDIC is prepared to let depositors withdraw up to 50 percent of their uninsured deposits at this time according to the Wall Street Journal. This is probably a welcome surprise to most depositors, given the circumstances. The FDIC is hoping that the balance of those deposits will be covered eventually, but that is not guaranteed.

Labels: Banks, business, economy

If most people had to guess about the employment prospects for recent college graduates, they would probably paint a pretty dim picture. The economy is certainly not hitting on all cylinders right now, and there are more companies laying off folks right now than there are companies hiring. Coupled with the timid business investment environment, you can see why most have this view. Yet things might not be so bad after all, at least for some graduates, according to a press release from the National Association of Colleges and Employers (NACE).

NACE reports that, while job opportunities for college graduates are down in number, salaries for college graduates have actually increased 7.1 percent over last year. So for those graduates lucky enough to get a job, they are in great shape. The rest are probably doomed to spend some more time living with Mom and Dad.

On the surface, this wage increase may seem like a surprise, but at the same time it really shouldn’t be. In this competitive job market, companies are enjoying the luxury of selecting only the best and the brightest. For the increased productivity they are going to get from these individuals they are willing and able to pay more. During the last several years, businesses have been focusing a lot on increased productivity. Ideally, businesses want to have as few people as possible producing as much possible, while still being economically beneficial, of course.

If you happen to be in college, know that it is now more important than ever to set yourself apart. The best of the best have great prospects, and the rest do not. Moral of the story: Make sure you are one of the best.

On another note, if you have the right skill set and aren’t interested in corporate America, then maybe you should consider starting your own business. More than ever, young people are making a name for themselves as entrepreneurs. It is hard work, loaded with risk, but just take a look at Bill Gates or Michael Dell (of course, they both dropped out of college, though I don't necessarily recommend that path), or any number of other young entrepreneurs to see the potential rewards.

Labels: business, economy

Though some sectors of commercial real estate remain stable and profitable, many retail and hospitality spaces are sitting vacant as poorly-performing tenants shut their doors. Beyond the lack of cash flow, commercial real estate investors with vacant spaces face a vicious cycle much like the Broken Windows effect in foreclosure-struck neighborhoods, wherein the vacant space may attract crime, loiterers and vandalism, which further decreases traffic and eventually compels existing tenants to move when the lease is up. However, some commercial real estate investors are overcoming this problem by turning to unconventional tenants to fill these spaces.

A recent AP article highlights some interesting examples of this trend. My favorite:

“In November, mall owner Pennsylvania Real Estate Investment Trust snagged New River Community College as a tenant for a former theater space in its New River Valley Mall in Christianburg, Va. The satellite location features seven classrooms, four computer labs, a science lab, two auditoriums, testing and conference rooms and office space."

A cinema complex seems difficult to convert successfully, but using theatres as auditoriums with plenty of study space just outside in the lobby and a concession stand is honestly quite brilliant. I like it much better than my idea to convert an abandoned Chuck E. Cheese into a funeral home (though I still insist that a ball-pit and an animatronic band would improve any wake).

Shopping malls and strip malls especially are facing high vacancy rates as larger chains begin to falter in leaner economic times. Levitz, Zales, Ann Taylor, PacSun and Foot Locker are closing hundreds of stores this year. Linens 'N Things and Sharper Image have already filed for bankruptcy protection. I guess radio-controlled backscratchers and self-cleaning plungers aren’t quite recession proof.

To generate income from vacant stores, larger malls are leasing empty storefronts as billboards while they search for new tenants. Malls large and small are also courting first-time and independent business owners by offering short-term leases with attractive rates, according to the AP article.

This may be bad news for many corporate retailers and their employees, but it isn’t necessarily bad news for commercial real estate investors in the long term and it is certainly good news for small business owners. Larger companies with more overhead will continue to suffer in a recession, but savvy entrepreneurs in control of their own expenses can still come out on top. Meanwhile, their landlords will still enjoy a regular income and a more diverse use of their property, which could guard against future fallout like that of Sharper Image.

Beyond all of that, this sea-change could even benefit the consumer, as erstwhile interchangeable chain shops become inoculated with local talent and independent ventures. In years to come, some malls may have a local flavor beyond the bland corporate spumoni that one customarily finds. The times may be sour for some retailers, but as in all upheavals, there could be sweet results for those who can adapt—most of all, investors and entrepreneurs.

Labels: business, economy, real estate, recession

This just in: Inflation is real and the Fed may not be able to stop it. That’s the reality for small businesses as they are forced to deal with the strain caused by rising food and energy costs.

The dramatic growth of the suburbs, as a result of rising home prices, combined with $4 per gallon gasoline is creating significant pressure for businesses with employees who commute. “Emerging suburbs and exurbs -- commuter towns that lie beyond cities and their traditional suburbs -- grew about 15% from 2000 to 2006, nearly three times as fast as the U.S. population,” according to the Detroit Free-Press.

This hits small businesses the hardest, since they tend to employ a greater percentage of employees at entry level salaries, and thus may have more employees who have moved further away to find affordable housing. This leaves many small employees in a bind when combined with an economy that may not support price hikes to consumers.

Some business, however, are finding creative ways to deal with the problem:

Virginia Commonwealth University Health Systems gave away $1 million to its 7,200 employees as a one-time bonus to help ease the burden of rising commuter costs, according to the Richmond Times Dispatch.

Du-West Foundation Repair recently moved 90 workers to a 10-hour, four-day workweek, according to the Dallas Morning News. Du-West is not alone. The city of Birmingham, Alabama will move to a four-day workweek for more than 4,000 employees July 1, according to Inc. magazine

Other solutions have been adopted by various businesses, including:

• Offering incentives for riding mass transit, including purchasing bus or train passes for employees.

• Offering carpool incentives, such as prime parking spaces or cash incentives for carpool riders/drivers.

• Offering additional work from home days for employees capable of telecommuting.

At NuWire, we’ve decided to explore the possibility of transitioning many of our positions so employees can telecommute. This creates a unique set of challenges but also offers the potential of a win-win for employer and employee. Having fewer employees in the office would allow us to reduce office space and some office costs. Employees would save money on gasoline, car maintenance and insurance and time lost commuting.

Although it remains to be seen whether we can create a telecommuting plan that will work for all involved, it is clear that we are not the only small business looking to retain good talent by finding creative (and proactive) ways to tackle inflation without raising prices (or in addition to raising prices).

Labels: business, inflation

In response to high fuel costs truckers in Spain have decided to go on strike. The truckers want the government of Spain to pass a law establishing a minimum price for their services, and to make sure that their contracts better reflect the fluctuating cost of fuel, which has risen by more than 20 percent since the beginning of the year, according to BBC News.

This fuel strike, which involves around 90,000 drivers--most of whom are self-employed--has the potential to cause some serious problems for Spain and its inhabitants. Already people are lining up at grocery stores and gas stations around the country, trying to get as many supplies as they can before stores start running out of goods. The striking truckers have warned the public that stores will only be able to last a couple days, according to the BBC article.

The truckers know that the country can’t run without them and they are making their voices heard, but are they going to be successful in their campaign? Part of the problem is that the Spanish government has a limited number of options available to it thanks to its arrangement with the EU. For example, it is required by the EU that member countries place at minimum a 15 percent value add tax (VAT) on fuel. In addition, the EU restricts the use of certain fuel subsidies, according to the BBC.

What the truckers want is more money to account for the business cost increase of more than 20 percent, and one way or another, they are going to have to get it. "We have no more solutions. We can't afford diesel any more. It's as simple as that," Jean-Claude Ferrand told Spanish national radio, according to the BBC.

If the government can’t offer subsidies what they might have to do is help negotiations between the truckers and the suppliers. Ultimately, either the government offers a subsidy or the suppliers are going to have to pay more to have their goods delivered. Looking at the options available it appears that likely the suppliers will be the ones fronting the costs, which of course will be represented in price increases and in the end borne by the consumer. Either way, though, it was going to come down to the consumer; they were going to pay for it either through their tax dollars or through increased goods prices.

Spain is making the headlines now, but with the way fuel costs keep rising, they are unlikely to be the last ones with this problem. Look for more and more truckers to substantially raise their prices or go on strike--or else out of business. Either way, supply and demand pressures are going to push prices higher to account for the increase in transportation costs.

Labels: business, European Union, international

The national unemployment rate surged a half a point to 5.5 percent in May, signaling the largest increase since 1986 and far surpassing analysts' expectations, according to Bloomberg. To show how surprising these numbers were, not a single analyst forecasted the unemployment rate to go this high, and the consensus among the analysts was an unemployment rate of 5.1 percent, according to a Bloomberg news survey.

The funny part about this is that just yesterday, people were starting to feel better about the prospects for the economy. In fact, this was the headline on YahooFinance yesterday afternoon: “Wall Street shrugs off spike in oil and finds solace in upbeat jobs data, retailer sales.” Yesterday the Dow was up almost 214 points, the biggest one-day gain since April 18, according to the Associated Press. The great jobs news everyone was excited about was the drop in number of laid-off workers seeking unemployment benefits. Oh, how the economic winds can change.

After today’s job data, and with the price of oil continuing to surge, the markets shed (in less than an hour, I believe) all of yesterday’s gains and then some. Once again this is evidence of how traders cling to every little glimpse of good news and look past the big picture. If people would have just sat back and thought things through, they would have seen that the jobs outlook in the U.S. is not a rosy one. The data that was reported yesterday is a bit misleading. Just look at report after report after report about how business owners are hesitant to add jobs right now and how many of them are actually planning to cut staff. Read about how consumer confidence continues to slide and how housing prices continue to tumble. A report from CNNMoney stated that Americans lost $1.7 trillion from their collective net worth in the first quarter of 2008 alone. Does any of this news seem to make a case for businesses to bring on additional workers? All I’m seeing are reports of pending layoffs. Am I missing something?

GM is cutting 19,000 workers by July 1; Ford and the other auto companies are also trimming staff, according to Bloomberg. While the government actually added 17,000 employees, cuts are on their way in the local governments (see the previous post: Pension Plans Could Lead More Cities To Bankruptcy), and of course home builders are continuing to cut workers as they fend for their livelihood. These are just a few of the headlines. So the fact that people were getting excited because one piece of data was published tells me they so desire good news that once they have it, they lose sight of everything else.

While it might be okay to believe the economy is coming around and is on the right track (not my belief, but hypothetically speaking), even if that is true, it is going to still require some time. Problems like we have now don’t just disappear overnight, and the investor reaction to yesterday’s news was way overblown. As an investor, make sure you understand and can see the big picture. I’m not saying, you shouldn't invest, but that you should do so with your eyes open. Don’t be like everyone else out there throwing your money into the market at the first glimpse of hope, only to pull it out the next day when things don’t look so hot anymore. Investing with a long term focus can help solve this problem for the most part, and overall is a great strategy, but don’t lose sight of the big picture.

Labels: business, economy, investments

In the first quarter this year, Canada’s economy shrank by 0.3 percent, according to Bloomberg. So while all the talk is about a U.S. recession, surprisingly, Canada may just beat us to the punch.

This news came as a shock to me because of how strong Canada’s economy has been, including their oil industry. The biggest problem area apparently was the auto industry. If the auto- and auto-related industries were removed from the, calculations then Canada’s economy would have actually still grown, according to Bloomberg. The biggest importer of Canadian automobiles, of course, is the U.S. and we just aren’t buying too many cars right now. Not only is Canada suffering from the drop in consumer confidence in the U.S., which is the number one importer of Canadian goods, but more importantly, Canada is suffering from their strong currency.

Ever since the Canadian dollar surged against the U.S. dollar, the trade balance between the countries has changed. Canadians are buying more U.S. goods and the U.S. is buying fewer Canadian goods because the U.S. goods are comparatively cheaper thanks to the weak U.S. dollar. Now the Bank of Canada is likely to cut interest rates in response. This should lead to the Canadian dollar dropping against the dollar, as it already has begun to do.

Labels: business, dollar, economy, international

So American Airlines has started charging $15 for checked luggage. Wednesday, it was the lead story on the “Nightly News.” Thursday, an ABC headline read, “Checked Bag Fees: Money for Nothing.”

What’s the big story? Is it the same as taxes, where once they start charging, there’s no turning back? Or is it just that sensational statements draw readers?

Who knows, but frankly, I’m getting a little tired of the media bashing the airline industry. If it’s not incessant coverage about scheduling delays or lost luggage, it’s about security. Today it’s about charging for luggage. As I write this, the price of oil is topping $130 a barrel and is projected to exceed $200 by the end of the summer. That’s the story, and it’s way bigger than the airline industry trying to stay afloat--or should that be aloft?--by adding $15 to the price of a flight. But I think it goes beyond that.

I think people love to complain and the media gets paid by giving people what they want to hear.

Does this sound familiar? For the last 20 years, most people have agreed that airline food sucked. They’d say things like, “all three of the coach entrée choices were inedible.” Then, all of a sudden, the elimination of free food service is seen as huge disappointment. “Oh no, I won’t be getting ‘Something Over Rice’ on my two-hour flight home?”

It’s similar to people in Seattle, where I live, who, when we finally get a sunny, 80-degree day after nine months of rain, whine, “ Put on the air-conditioner, it’s too hot.” But I think it goes beyond the weather weenie mentality.

Here’s my theory about why the $15 per bag issue is so hot: The story is not about the cost of flying going up, it’s about the reality that the average Joe is getting squeezed out of the American dream. Ever since the inception of commercial airlines, flying has been a hallmark of living large. Images of pretty flight attendants, macho pilots and wealthy travelers became icons of the glamorous American lifestyle that created the “jet-setter” as an American model. Today, the air travel experience has lost its sizzle. You go through security, do what you’re told, wait for a couple of hours to board, stay seated with the buckle fastened, don’t use the toilet facilities in the front of the plane--for security reasons--and de-board without a welcome.

The whole flying experience today is threatening the average American’s chance to feel like a jet-setter, and they don’t like it. Except for when you were boarding and had to shuffle your way through the first class gauntlet, flying always allowed Americans to feel like someone special. Today, the flying experience is more like taking a bus. Airlines have always charged us for the mysticism of flying. Americans just miss the allusion in the old slogan, “It’s The Ooooonly way to fly.” Today it’s more like, “Pay up, sit down, and get out--it’s the only way to fly.”

Then again, you can always drive.

This was a guest post by James Krieger. If you want to read more from James check out his blog www.nicaraguarealestateinvestment.org.

Labels: business, economy, Oil

America is embracing Hispanic culture, and investors should too. The Hispanic population is the fastest growing segment of the U.S. population, and according to the most recent Census Bureau release Hispanics now comprise 15 percent of the total population or some 45 million people. Furthermore, it is projected that by 2050 Hispanics will make up 25 percent of the total U.S. population. There are numerous ways in which investors can embrace and profit from the emergence of Hispanic culture in America. I will mention a couple.

Real estate investors in particular can capitalize on this trend is by making their rental properties more Hispanic-friendly. Advertise and use signage with both English and Spanish. If you are having a property manager service your property, why not find one that is bi-lingual? A bi-lingual property manager would be able to capitalize on both English and Spanish speaking tenants, offering you more coverage. Depending on your location—California and Texas in particular—you might think about pulling out all the stops to make your rental Hispanic-friendly.

There are many businesses one could start that take advantage of this growth. One of the more interesting ones to my mind was included in our Business Ideas article, namely the creation of bi-lingual call centers in Latin America that service the U.S. population. There is a plethora of bi-lingual natives in Central America in particular that offer cheap labor. How long do you think it will be before U.S. companies stop outsourcing call center business to places like India, where labor is rapidly becoming more expensive? In addition to rising costs in places like India, there is also the difference in time zones, which isn’t a problem in Latin America. Labor might be a tad more expensive, but it is well worth it when you can have employees who speak the top two languages in the U.S. and who reside in the same time zone as you.

No matter what business or type of investment you’re in, there is probably a way which you can better cater to the Hispanic population. Investors who embrace this culture stand to do well in coming years, while those who ignore it could have serious regrets.

Labels: business, investments, real estate

Typically I would shy away from calling things such as Costco and Sam’s Club memberships “investments,” but in light of recent events they might just be entering into that category. I read an article from the Wall Street Journal yesterday that opened my eyes to the concept. In the article, it is explained that food prices are increasing by so much that it makes sense for people to stock pile non-perishable food rather than put that money into savings or money market accounts.

According to the article, food inflation for the average American household is running around 4.5 percent right now. Many foods are seeing price increases much higher than that. Cereal prices are rising by more than 8 percent a year, and flour and rice are up more than 13 percent. Milk, cheese, bananas and peanut butter are all up by more than 10 percent. Eggs have increased 30 percent in the past year and ground beef and chicken prices are up 4.8 percent and 5.4 percent respectively.

It is obviously not possible to stock up on perishable items such as milk and eggs, but you can buy extra cereal, rice and flour. You certainly aren’t going to make 13 percent on any bank account, so in actuality using some of your savings to purchase extra food might not be such a bad idea, or investment, for that matter.

That is where the Costco and Sam’s Club memberships come in. These warehouse stores offer much better prices than typical grocery stores; the catch is that you have to buy large quantities of the items. If you are planning to stock up on certain staple goods, you can save money by buying at these stores. So let's say you can save 5 percent off of the items you purchase at Costco or Sam’s Club over your neighborhood grocery store (though, in my experience, buying in bulk at these stores should save you much more than that)--now your “investment” looks that much better. Instead of making a 13 percent return on your money, purchasing your rice now actually could earn you 18 percent. Obviously those numbers don’t take into account the cost of your membership, or any subsequent storage or other costs which may be associated with holding the extra food, but I think you get the picture.

Also, as an added bonus, you will be in good shape in the event of a complete economic collapse, as many Ron Paul supporters are predicting.

Labels: business, inflation, investments

Pawn shops are ringing up big profits in the midst of a faltering U.S. economy. As people struggle to make ends meet, they have increasingly turned to pawn shops for fast cash. Pawn shops historically do not offer the best terms on loans, or the best prices for sold items, so it is ominous that people are turning to pawn shops en masse. This is a trend that is very typical in times of financial hardship though.

Investors who wish to profit from this trend could invest in stock of a large pawn shop company, such as Cash America (CSH) which is traded on the New York Stock Exchange, buy an existing pawn shop, or open a new pawn shop.

Online pawn shops are an emerging trend, as even brick and mortar pawn shops are now selling inventory for a higher amount on EBay. Low overhead can mean higher profits for online pawn shops, and also allows them to offer customers more money for their valuables or better terms on loans. In addition online pawn shops are able to offer their services to a wider geographic area. It appears clear to me that the future of pawn shops is on the Web.

If you ever were thinking of getting into the pawn shop business, then now is the time. If you prefer a brick and mortar business, and don’t want the added hassles of a startup company, there are also pawn shop franchises available. Two of these franchise opportunities are Cash America and PeoplePawn.

Labels: business, economy, franchise, investments

International tourism is ready to explode with investment opportunities, according to an article published in the Harvard Business Review titled “The Tourism Time Bomb.” The writers--Paul F. Nunes, a research fellow at the Accenture Institute, and Mark Spelman, global managing director of Accenture’s strategy practice--state that international tourism is growing exponentially, and that this growth will soon lead to dramatic changes in major tourism destinations as well other locations which are likely to benefit from the resulting overflow

The following are important excerpts from the article:

“According to the United Nations World Tourism Organization, international tourist visits are expected to double soon, from roughly 800 million in 2008 to 1.6 billion by 2020.”

“First, most tourism-related prices, such as hotel room rates in popular cities, will continue to escalate as demand outstrips supply.”

“Second, rationing, and the resulting waiting lists, will become commonplace. Some groups, for example, are already calling for limits on traffic to ecologically sensitive destinations, such as the Incan ruins at Peru's Machu Picchu.”

“Finally, jaw-dropping prices and decades-long waiting lists will prompt the creation and the expansion of destinations in both developed and developing economies. The Chinese, for example, are developing Hawaii-like Hainan island and Macao, a gaming paradise on China's southern coast.”

“Companies and governments are also creating facsimiles of popular destinations.” (for an example read The Brink Tank’s post: How Do You Say Rocco In Arabic?)

“Just as sites and structures can be successfully replicated in new locations, so can institutions. If the swelling ranks of global travelers can't all come to you, you can go to them.”

“As the scarcity of places grows, many companies will find opportunities to profit by meeting new levels of demand for authentic, and inauthentic, experiences.”

“A billion or two additional international travelers represent both a massive potential headache and an opportunity for business.”

Real estate in both urban and suburban areas is one of many investments that may benefit from this explosion. As demand increases, tourism and hospitality businesses should also perform well, and there are many new businesses that could be created to cater to international tourists. An entrepreneur’s imagination is the only limit.

Labels: business, international, investments, real estate, tourism

The boutique hotel industry was created in response to demand for hotels offering unique, chic and intimate environments, with top-notch service. Demand has spread as vacationers and business travelers who have fallen in love with the boutique hotel industry want to be able to stay in boutique hotels even when visiting the suburbs. The boutique hotel industry has listened and is starting to deliver.

According to Jim Anhut of InterContinental as quoted in a USA Today article, business in the suburbs has really begun to thrive in the last 10 years. “More business is being done in the suburbs, and mass retailers such as Ikea, Pottery Barn and Target helped pave the way for ‘democratization of design,’” Anhut said. This means that more people, including business travelers, are visiting the suburbs than ever before. The suburbs have suddenly become an attractive market for the boutique hotel industry. And let’s not forget another big bonus for boutique hoteliers: Land is much cheaper in the suburbs.

There are several major boutique hotel operators building in suburbs across the country, but most of them are focusing on the suburbs of the 25 largest cities, according to the USA Today article.

Aspiring boutique hotel owners can follow suit and stick to the larger cities, or they can blaze their own trail in a smaller market. Personally, if I were looking to start a boutique hotel in suburbia, I would probably avoid competing with the larger companies. Larger hotel chains have the luxury of big marketing budgets and intercompany referrals. The suburb market is still fairly new and untested, and it could become saturated if too many boutique hotels enter the same suburb. New boutique hoteliers are probably better off focusing on the suburbs of the 26 to 50 largest cities. This would allow them to both enjoy a good-sized market and avoid major competition until they can at least establish their boutique hotel brand.

Business travelers and tourists are the lifeblood of the boutique hotel industry, and investors should analyze the numbers of both of those groups in a city when seeking a market. Some suburb locations are more business-oriented or tourism-friendly—or both—than others. Curious investors and entrepreneurs should read our article for more information: Boutique Hotels: Owning, Operating and Investing.

Labels: business, real estate

Violence brought about by the elections in Kenya has stymied—but not stopped—an inspiring story of entrepreneurial innovation and spirit. Kenya’s Youth Ministry was holding a business plan competition to inspire and support entrepreneurs and create new businesses. From an initial 5,000 participants, the best 100 were chosen for further training and judging. Kenya recognized the need for new businesses and the benefits that they bring to the economy. Some experts estimate that for every one person who receives work in Africa, 10 others will have food, clothing, shelter, school fees and other necessities. Unfortunately, six weeks after the competition began, so did the horrific violence which has claimed over a thousand lives and displaced hundreds of thousands.

But now the entrepreneur competition has brought about a new life, and there is a film already being made about the events which have taken place. The film is called “Kenya Stories”, and it was originally intended to be a simple documentary about the competition, but it has now become something much more important. On their website, they discuss the film and the 100 top entrepreneurs in greater depth. Their goal is to generate interest in what is happening right now in Kenya, tell more about these aspiring entrepreneurs, and hopefully create support for the cause. They are looking for mentors, angel investors, referral business, networking help, donations and so on.

In the midst of such tragedy, it is truly inspiring to see how people can rise up. I wish the very best for each of these entrepreneurs, and hopefully we will witness their business plans come to fruition someday. I also wish the best for the “Kenya Stories” film team, and I can’t wait to see the finished product.

For more background information on the violence in Kenya, read The New York Times’ article.

Labels: business, international, Kenya