I read a recent post from the CEO of Gallup, who provided a good reminder that, like politics, ultimate business success is often locally driven. Yes, policies from Washington and state capitals make a big difference — but so does leadership in communities and companies.
A few highlights from Jim Clifton:
Throughout this year’s long election season, I was often asked: “Who will be better for jobs and the economy, President Obama or Governor Romney?” My reply most surely disappointed partisans from both sides: The president of the United States doesn’t make as much difference in terms of creating economic energy as you’d think, according to Gallup data.
In fact, if the president mattered that much, why is it that cities and states have such extreme variation in their local GDP and job growth? Shouldn’t they all go up or down together with each president?
Instead, Austin, Texas, and Nashville, Tenn., are booming, while Albany, N.Y., and Stockton, Calif., are failing. Texas is prospering while California is almost surely going broke. Austin’s jobless rate is around 5%, while the unemployment rate in Stockton is above 13%.
The difference, in my view, is that Austin has deeply caring, highly engaged business, political, and philanthropic leaders with principles, policies, beliefs, and values about human nature that work. They understand how to build a thriving, growing economy — one that welcomes business and entrepreneurship. Albany has the opposite, as I see it: Leaders with principles, policies, values, and beliefs that discourage business and entrepreneurship, if not outright scaring them away.
Cities across the country with great leadership are filled with booming startup companies, and those cities have thriving economies that create authentic, organically grown good jobs. These cities are saving America, while the others are letting the country down.
Great city leadership has never been so needed. Nationally, business startups are currently growing at under 400,000 annually. If this rate doesn’t double soon, in my view, absolutely nothing will fix our current nightmare of joblessness.
Of course good policy for small businesses is better than bad policy, but in my opinion, the estimated 10,000 business, political, and philanthropic leaders of all shapes and sizes who drive the performance of America’s top 100 cities are the most important people in our country right now.