Northwest Minnesota Foundation ~ Developing Community Assets ~ Serving 12 Counties SPRING 2009
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Number 49
Igniting Innovation: Starting, Sustaining and Growing Businesses Heartland Entrepreneurship - Keynote by Rich Karlgaard
Rich Karlgaard
The American heartland has a chance to “get the most out of its nickels” in an economic turnaround, according to Rich Karlgaard, publisher of Forbes magazine. Karlgaard was the keynote speaker at the NMF Regional Summit: Igniting Innovation, held in the University of Minnesota Crookston’s Bede Ballroom. The Bismarck, ND native said the heartland doesn’t boom or bust as much in an economic bubble as urban areas do. He said leading companies have a one in three chance to falling out of favor with consumers, allowing entrepreneurs and small businesses to offer better value propositions. “Urban coasts are really in bad shape,” Karlgaard said, “Housing prices
Panelist Pete Birkeland, NMF Chair Eric Bergeson, NMF VP for Programs Marty Sieve
cannot come down enough.” In comparing the heartland to the urban coasts, Karlgaard said the cost of living gap has broadened at a time when markets and information are readily available on the internet. He said the heartland’s more favorable economy creates opportunity because consumers want to start spending again. “I think consumers will be more prudent and really look for value,” Karlgaard said. “Trust is really low and they want value for their money. It wouldn’t be bad to become greater savers.” Karlgaard said he believes there will be inflation, but he added that usually helps farmers and rural economies. He said he expects economic growth in the second half of the year, and once the gross domestic product reaches 2 percent, the Federal Reserve could withdraw money from the trillion dollars it has printed since September, easing inflation. He said there’s a place for green energy, including ethanol and wind, but it’s tough to plan for because it competes with the fluctuating price of oil. Karlgaard said he believes government bailouts are coming to an end, plus the stock market and housing market have bottomed out, and the (Continued on page 3)