[MUSIC]
Good morning again, welcome to The State
of Latino Entrepreneurs of 2016.
My name is Phil Pompa,
I am the executive director for
the Latino Business Action Network,
or LBAN.
This morning we've got some opening
remarks by Dean Jonathan Levin
from the Stanford Graduate School
of Business.
And the event will cover an overview of
mostly Stanford Latino
Entrepreneurship Initiative.
We'll explain all of these different
organizations that are part of this.
In addition to that, we'll go through
all of the data for the research for
this year.
And then following that,
we have a discussion of
the implications of that data by Mr.
Rupert Murdoch and Mr. [INAUDIBLE]
>> It's a real pleasure
to welcome all of you to
the Stanford School of Business.
I'd like to start by thanking
Professor Jerry Porras and
Professor who are going to
be presenting today, and
our GSP alumni Ramirez
have been drivers of
the Stanford Latino
Entrepreneurship Initiative and
support the organization LBAN.
[INAUDIBLE] Arreaga help
support this event and
just the fact that we are Huggy Rao
who's been actively contributing to the.
This is the second annual State
of Latino Entrepreneurship Event.
Doug and Jerry and
Ignacio Rodriguez are going to discuss
today what the ecosystem of Latino
entrepreneurs looks like today.
The size of the Latino
economic opportunity and
what sets apart Latino led growth in
million dollar companies from their peers.
I'd like to particularly
recognize our faculty member,
Professor Emeritus Jerry Porras,
who's the co creator and
the heart and soul of the this initiative.
Jerry has a passion for
advancing Latino entrepreneurship and
Latino careers that is truly inspiring.
And SLEI's executive education program
focuses on Latino owned companies and
the research that you're
going to hear about today, both
conducted here at the business school,
are really realizations of his vision for
Latinos helping to drive economic
growth and prosperity in this country.
This is who we are excited to continue
to support SLEI as they academia and
the world better understand the Latino
entrepreneurship domain and for
Stanford to help lead the way in creating
a better future for our country,
with successful Latino entrepreneurs
as a pillar of our economy.
So thank you for being here for seeing
all the research that has been completed.
>> [APPLAUSE]
>> Thank you Dean Levin.
Now, let's go ahead and take some time
this morning to understand a little
bit about how this research began.
And how this whole program began.
And with that,
I think the best person to do that
is the founder of this organization.
Also, as we described,
was also the professor emeritus of the
Stanford School of Business [INAUDIBLE].
And the chairman of LBAN [CROSSTALK]
>> [APPLAUSE]
>> I want to thank you, Phil, and
thank you all for
being here on such a sunny day.
>> [LAUGH]
>> We hope that the traffic
wasn't too much of a challenge and
I suspect that more of you will be
arriving in the next few minutes, so
[COUGH] pleased to have you here.
This effort really has been
driven by two very powerful
realities that are going on right now.
One is the population growth of Latinos.
Currently, to repeat some statistics
that many of you probably already know,
currently 17% of the population
of the United States is Latino.
By the year 2060 that's
expected to be 30%.
So this is a growing
segment of the society,
both from the perspective of consumers,
and
also from the perspective of labor, and
providing labor for
the society to prosper.
A second important fact that's going
on is the growth of Latino businesses.
Over the last 15 years, every five years,
1 million new lucky participants
have been added to the total pool.
Given that a lot of businesses fail,
and there are estimates of 20 and
30% failed each year,
then the total growth is more than a
million, but the net growth is a million.
So every five years,
the number of Latino businesses
are increasing by about a million.
Today it's estimated that a little
over 4 million Latino businesses.
This is a growing segment
of the business community.
These two factors really led us to create
the first Latino business active network.
And then out of that, create the Stanford
Latino Entrepreneurship Initiative
which we call SLEI.
I want to give you a history of it so you
can put the effort today in perspective,
to put it in context of all of
the things that I think need to be done
in order to really strengthen
this country by improving and
promoting Latino entrepreneurship and
successful Latino businesses.
So what is SLEI?
SLEI is a collaboration between Stanford
and the Latino Business Action Network.
So, Stanford and LBAN have come together
to create this organization we call SLEI,
this initiative that we call SLEI.
It all began back in 2012 when I was
meeting with a group of Latino MBA alums,
which had been mentioned by Jon.
And we were talking about what is
it that's going on in the country.
And more importantly,
what can we do to contribute,
to give back to the Latino community, and
also to restrengthen the country by
giving back to the Latino community?
That sort of has been our perspective,
that helping the Latino community
develop and grow is in the context of
helping a whole country become strong.
So the focus is really on
strengthening the country.
Out of that meeting came LBAN,
Latino Business Action Network,
a 501(c)(3) organization,
a non profit organization.
And those of you who have read Bill know
that I'm really big on the notion of
purpose of an organization.
So the purpose of LBAN in terms of
its long term, hundred-year goal,
if you will, was to strengthen the country
by improving the lives of Latinos.
Very simply put.
And a lot of things could be done to
improve the lives of Latinos, but
the end goal for doing that is
really to strengthen the country.
That's the end result of
improving lives of Latinos.
More specifically, then,
the creation of SLEI was focused
on improving the lives of Latinos by
really focusing on Latino owned companies,
and specifically, helping to create
large Latino owned companies.
At present, there are about,
as I said, 4 million Latino companies.
Less than 2% of them gross
over a million dollars a year.
So Latinos seem to like
to start companies, but
are unable to really grow big
ones at a very high rate.
So our focus was to say, let's
promote the growth of those big ones.
And that's what this collaboration,
SLEI So in order to do that,
we came up with ideas of what
are the major thrusts that we can develop.
And the first one was that
we should do education.
We should create educational
programs to help Latinos learn
how to grow big companies.
To provide, support of various sorts.
And I'll elaborate them to do then.
Second was on research,
it was create a reasearch program.
One that would start with building
a data base of Latino owned companies.
And out of that draw samples
to do annual research on them.
To try to find out exactly
what their state is and
what their problems are,
et cetera, specifically and
most importantly around what
are the barriers to their growth.
What's keeping them from growing?
What's keeping them from [INAUDIBLE]?
We want to understand that more.
Believe me that if we understood it,
then more informed decision making
could be done by policy makers both
in government and in business.
The third component of our
efforts was development
of a stronger ecosystem to support Latino
businesses and Latino entrepreneurs.
Ecosystem is extremely
important as a component of
what's going to determine success.
And ecosystems surrounding Latino
businesses is not all that strong,
and needs to be made stronger.
So, we want to contribute to that.
Let's say they'll do more about our
educational program because it's not
something you'll to hear about today
because we're going to focus mainly
on the research dimensions of
what it is that we've been doing.
We partnered with Huggy Rao, who is
a professor here in the Business School.
And he and Bob Sutton, who is a Professor
in the School of Engineering,
have created an online program
that focuses on scaling companies.
And since that fit exactly
what our goal was.
We collaborated with [INAUDIBLE] who was
very enthusiastic about championing this,
to create a program that was customized
to focus on the needs of
the Latino entrepeneur.
The online program is six weeks long.
At the beginning of the program students
come to Stanford for a few days.
And at the end,
they come back for one day.
So we have this, sort of,
book ends visits here at Stanford.
Today, well we offered that,
this program twice a year, in the spring,
in the late spring and in the fall.
Today, we have been averaging roughly
240 applicants for 80 positions.
Of the Asian people who
entered the program
who had a graduation rate of about
92% which for an online program for
those of you who are new to
that is astoundingly high.
because people usually drop
out of online programs.
We focused on two particular
groups of Latino business owners.
The first is a lucky company
that has been in existence for
at least three years and ahs had sales
of at least a million dollars a year.
So, we are trying to focus on those
companies to reset threshold of million
dollars.
And so, we are doing that to try
to focus on the individual compan,
they have the highest probability of
being successful and growing even more.
The second group that we focused
on is people at the startup
phase who have raised at least a half
a million dollars from outside resources.
So, half a million in investment funds or
that have achieved those in sales.
Program is augmented by
a series of specific
activities that help develope
the Latino entrepreneur.
The first thing we've done is added to
the program is a video series, in which
we interviewed ten Latino entrepreneurs
who have success with scaling.
We wanted to have them
explain how they were doing,
how they were dealing
with the various issues.
And focusing on issues that
every entrepreneur faces, but
specifically trying to add issues that
they face as Latino Contributors.
What might have been unique
about their experiences,
unique to [INAUDIBLE] Latinos?
We have mentors for every student.
So, every student meets with a mentor
online for at least one hour a week.
And this has been a very powerful way of
engaging community of people who really
are experienced and knowledgable about
businesses and how to run businesses.
And helping those Latino entrepeneurs and
business owners who are at their younger
stage of growth and development.
We've treated webinar's that
focused on primarily money.
There's money out there but
there's different types of money.
And not every company can use or
can get every type of money.
We need to know more about the types of
money that's out there and you match your
own interest and your own ability with
that's that source of that money.
And so that's a very important
educational component,
because as you're going to find out,
one of the issues around Latino
entrepreneur growth is
their access to money.
And changing that I think,
is going to be important component to
sharing future success
of Latino businesses.
We've created a process in
which we have the participants
interacting with capital providers.
On the last day of the program,
we bring in about 35 capital providers and
we conduct speed dating session,
in which each entrepeneur gets a chance to
talk with three or four capital
providers about their efforts.
We are finding the deals
are getting started.
And some deals are getting made, in terms
of providing capital to the participants.
And finally,
we create a network of the participants,
not the highly participants but
the alumni.
So, we're growing a bigger and
bigger network of individuals
that have common experience,
having come to this programand it can
begin interacting in a variety of ways.
One of the most important
ways that they can react and
interact with each other and a mantra that
we start to preach in the program is,
do business with each other and
get business with each other.
So, we're trying to
promote the interaction of
all the participants in doing
actual business with each other.
Not just interacting,
not just collaborating,
not just talking but
actually doing business with each other.
Now, I want to tell you a little story
that happened in cohort that we just
finished in November because it really
symbolizes that sort of activity and
energy that is spontaneously
starting to come up.
[INAUDIBLE] We have
a session in which we ask
each of the participants
to introduce themselves.
And talk about the business that they're
in, and businesses that they have.
Seconds to do that, so
it's really pretty fast.
And as we were going around,
one person stands up.
And a woman says, I just founded a liner.
And it's something we laughed about.
As the introduction goes on,
another gentleman stands up and he says,
well I have a chain of grocery
stores in Los Angeles,
and then he looks up at
the owner of the winery and
he says, and I'm going to stock
your wine in my grocery stores.
Your choice.
>> [LAUGH]
>> Wow, we were surprised and amazed and
impressed with that.
But then, a little while later,
another woman stands up and
says I run a chain of restaurants.
In San Francisco and we're going to
put your wine on our wine list.
That's what we want to have happen.
We want to have more of that happening
spontaneously where people are not only
thinking about doing
business with anybody.
But doing business
specifically with Huckley.
And the more that than can happen,
I think the more will promote the growth.
In addition,
all Latinos businesses do business with
other businesses that are not Latino.
And the interactions and relationships
that they've built up, they recognize that
the businesses that they're doing business
with might have a need for something.
Maybe some marketing research or
maybe some legal help or
maybe some county help, etc.
And that there are Latino businesses that
do that, and they make note of them.
So we'd like to have them start connecting
those people to the non-Latino businesses.
And that way expand the business
opportunities for Latinos.
So in these ways we're trying to
promote the development of stronger and
stronger ecosystem that
surrounds the Latino business.
Let's turn to the research.
In the research we created this database,
as I mentioned,
well over 1.3 million Latino
businesses are in it.
We did a survey in 2015 and
had a report that was presented
a year ago this past November.
That was with about
2,000 Latino businesses.
Today, we are going to be commenting
on a survey that was done with
5,000 Latino businesses, one of the
largest surveys in its time in existence.
And we are talking about
the results of that.
Now I was pleased to see that some
of the ideas that we generated and
built to last are getting reflected in
the daily refinement of Latino businesses.
And most specifically I know you'll here
more about this in much more detail is
the issue of the impact of culture.
One of the findings in the last
research was a culture that
played an extremely important role in
creating and enduring great companies.
These companies built strong cultures and
it built up from very early on.
And that these cultures really
helped create a sharp focus for
the company overall
determined [INAUDIBLE].
We're finding some of these
things happened in your business.
Things they start doing at the very
beginning to promote the book later on.
Ecosystem trying to focus to build on
consists of components of the efforts
already described.
So we're trying to include
mentors in the ecosystem,
capital providers in our ecosystem.
The alumni and
also a lot of Latino-based or
Latino-oriented organization
throughout the country.
For example,
the Hispanic Chamber of Commerce is one,
or trade organizations often
have Latino components.
So we've established relationships with
many of them and we're pulling them in and
trying to create a broader and
bigger ecosystem.
So that's what is all about,
that's what has been
doing in our efforts in both research
[INAUDIBLE] [COUGH] and in ecosystem.
So I want to thank you all again for being
here I hope that the information I've
given about our broad
efforts will be helpful.
And will be useful in helping you
understand and put in context,
what it is that we're trying to
accomplish here at Stanford.
Thank you very much.
>> [APPLAUSE]
>> Thank you, Jerry.
One of the things now we move to is
of course is the main information for
the day and that's the research
here that we completed last year.
Again, Jerry talked a little bit about how
we just increased the size of the survey.
The other thing I want to point out is
that what we try to do is make sure that
we supplement other
reesearch that's out there.
So the intent is not to recreate the wheel
over and over again, but to help
supplement surveys that are done by the
US Census, by the Foundation and others.
We try to look for those things
are kind of the unique opportunity
to conduct rigorous I also
set up Latino entrepeneurs.
And as part of that for
anyone in the academic world that
data will be open to anyone for
academic purposes.
And that's on a national scale as well,
so not just here at Stanford.
So please make sure you work with us or
with Dr. Rivers and Dr.
about getting that information and making
sure that we start that communication.
So with that what I'd
like to do is present and
to introduce the folks that are going to
go through the material this morning.
So first of all is Dr. Rivers.
He's a critical investigator and
faculty sponsor for our survey research.
He is also the senior fellow
of Huber institution and
a professor of political
science at Stanford.
And one of the things you want something
done right you find a busy person.
Because he is also the president and
CEO [INAUDIBLE] so he's a pretty busy guy,
and thanks Doug for
the time you put in to help us with this.
Secondly, next is the lead
research manager at.
She has a Stanford PhD in sociology and
education policy.
And Natasha coordinates and
produces many of the reports and
information that you'll see here today.
So again for myself, thank you to both of
you for the hard work I know that went
into this and the great job that
you both did in doing that.
So with that,
I think Doug's going to start.
>> [APPLAUSE]
>> Morning, We seem to be living
sometimes in a fact free universe.
So at the risk of boring you I'm going
to introduce a few facts and some data.
I'm going to cover a bit of what we
know about Latino entrepreneurship
from federal statistics.
Particularly those
collected by the census.
Which tell you pretty much
the what of what's been happening.
And then the research that we've
done is to try to extend that and
find out the why.
And will be covering
So these are the main
takeaways of this research.
And will go into these
in detail [INAUDIBLE].
I think we're all aware,
Jerry mentioned the pretty rapid growth in
the Latino population
in the United States.
In the 1990 Census,
there were 22 million Latinos.
And here later that growth is 30 times and
the most recent census
was about 50 million.
That's the red line you
can see at the top there.
But as rapid as the growth of
the Latino population this year.
There's another story
that hasn't been told,
which is even faster rated growth
of Latino entrepreneurship.
The black line in this graph shows
the increase in the number of Latino
businesses counted by
the federal government.
In 1992 there were less than one
million Latino owned businesses
in the United States.
In 2012, The most recent data
collected by the federal government,
there are over 3.2 million, triple in
a period of less than a quarter century.
The black line there is
steeper now than the red line.
Which means that Latino businesses
are growing faster than
the rate of Latino population
in the United States.
Of course, nothing stands still.
As I'm sure you know, Latino population
has been growing faster than other groups.
So, going from, as Jerry mentioned,
about 8% of the population
in 1990 to about 17% of
the population today.
A larger fraction of the US
population is Latino.
There's a somewhat different story
associated with Latino businesses.
In 1990, about 5% of the businesses
in the US were Latino-owned.
So there was a smaller fraction
of Latino-owned businesses than
there were of Latinos
in the US population.
And that was not growing
particularly rapidly, okay?
So I can see it's over on the left,
the percent of businesses that were
Latino-owned was relatively flat.
But then starting after 2000,
there was a rapid growth in
the younger Latino businesses.
So in the 1990s,
growth rate was about 5% per year.
In the 2000s, it's been over 7% per year.
What that means is that the fraction
of businesses that are Latino-owned
is catching up to the fraction of
the population that is Latino.
7% growth is a massive growth rate.
Imagine if we're able to grow
the US economy at 7% a year.
That would be truly impressive.
Furthermore, in the midst of this period,
we had a rather bad recession.
The great recession of 2007 through 2009
was something that slowed business growth.
In fact,
the total number of new businesses created
in the US between 2007 and
2012 was only about
300,000, about 2% growth rate.
Essentially, you had a flat rate of growth
of business creation in that period.
It's not widely known, but
over the period from 2007 to 2012,
the number of Latino businesses
grew by a rate of 47%.
Over a million Latino-owned businesses
were created between 2007 and 2012.
That's a remarkable number given
the economic environment in that period.
In fact, if you live in any of
the Latino-owned businesses from
the number of businesses created,
US economy would impact fewer
businesses in 2012 than it had in 2007.
Contrary to what you may have heard,
Latinos are not a drag on the US economy.
If anything, the US economy has
been a drag on Latino businesses.
>> [APPLAUSE]
>> As good as that news is,
however, there's still a lot of room for
improvement.
So what we've been doing is,
in particular,
looking at the nature of these businesses.
What industries are they in?
Well, it turns out they're
spread relatively evenly across
the businesses in the US economy.
There is, not surprisingly, a somewhat
disproportionate share in services.
That's not true that these
are all service businesses.
One of the striking things we've
seen though is that the growth rate
of these businesses is not as fast as
it is for non-Latino-owned businesses.
And that is Latino-owned businesses
are smaller on average than
non-Latino-owned businesses.
The red bars here show the growth
rates of Latino-owned businesses
compared to non-Latino-owned businesses.
They're about one-third the size.
They're growing at a less than half
the rate from the revenue and employment.
Lower revenues means lower employment,
less profit and less wealth creation.
We don't know what's blocking
the growth of Latino-owned businesses.
That's the focus of our research and
what Natassia will be talking about.
It's not function of what
industries they are in.
And it's certainly not a function of
entrepreneurial spirit as evidenced by
the large number of Latino-owned
businesses that they created.
But the fundamental problem remains
that Latino businesses are smaller and
growing more slowly than
non-Latino-owned businesses.
To quantify this, we did a calculation
which is a thought experiment saying,
what would happen if Latino-owned
businesses were as large or
growing as quickly as
non-Latino-owned businesses?
So from 2002 to 2012,
the growth was large.
200 billion in revenue to 500 billion.
However, what's possible
beyond what we're seeing?
In particular, suppose Latino-owned
businesses had the same average
revenues as non-Latino-owned businesses.
What that would've meant
is that 500 billion
would have grown $1.9 trillion in 2012.
That is almost quadrupling of the amount
of revenue of these businesses.
That would have had an enormous impact on
employment and on the overall economy.
So I'm going to turn it over to Natassia,
who took over the running of
the SLEI survey this year.
She joined the project last summer.
And is collecting fascinating data
about Latino-owned businesses
that will help fill in our
understanding of these processes.
>> [APPLAUSE]
>> Good morning.
>> Good morning.
>> Good morning.
>> As Dr. stated, we begin our research in
reaction to a lack of in depth quality
information on Latino entrepreneurs and
their businesses and
why this opportunity gap exists.
In 2016, we conducted a national
survey of Latino entrepreneurs.
Where we asked them about their businesses
and about characteristics of themselves.
Our goals were to answer
questions such as what types
of financial capital do Latino firms use?
What communities are Latino firms serving?
And what traits best characterize the
Latino businesses that are able to scale?
Which we define as reaching $1 million and
more in annual revenue.
So I'll be presenting key
findings in these areas
based on analysis of the national survey.
Let's start by talking
about business funding.
One of the most commonly held views as to
why Latino firms aren't able to grow and
why this opportunity gap exists relates to
their ability to get financial resources.
Here we have graphics showing the number
of funding sources businesses use at two
distinct stages.
The earlier startup stage on the left,
and the growth stage on the right.
Let's start by looking at the use
of startup funds by Latino firms.
Firms that are now scaled, which are firms
that are over a million dollars or
more in revenue, or at or
over a million dollars in revenue,
are represented by the inner circle.
And firms that are not scaled
are represented by the outer circle.
We find that 58%, close to 60% of scaled
firms report that they use at least
two funding sources at the start up stage,
compared to only 45% of unscaled firms.
This to us suggests a relationship
between using more funding sources at
an early stage and being scaled later
on in a business's life course.
So keep in mind that in
our analysis we count for
differences such as industry type and
differences in company age.
So these aren't likely to
explain these differences in
types of funding that
businesses report using.
Looking now at the use of funds for
business growth, the chart on the right,
we see a very similar pattern
in the number of funding sources
used by scaled and unscaled firms.
That is the scaled firms continue
to use more sources of funding than
unscaled firms at their growth stage.
It's also worth noting here that we don't
see a jump in the number of sources
used by Latino firms.
We would expect that once firms reach
the growth stage we'd see an increase in
the number of funding sources
they're reaching out to and
the different types, but
we don't see that here.
We see pretty much a consistency
between the start up and
growth stage in the number
of funds they use.
Next we looked into the types of
funding sources that businesses used.
We find that 50% of all Latino firms
used only internal funding
sources to start their business.
This means that 50% of firms use just
sources such as their personal savings,
money from family and
friends, or inheritance.
The other 50% use some mix of internal and
external sources, where external refers to
sources such as venture capital funding,
angel investors, business bank loans,
government loans, etc.
Now, we know that external
sources of financial capital
are crucial to helping a business scale.
And when a company moves from the startup
to the growth stage, we would
hope that more companies would start to
use these external sources of capital.
We find that whether a firm took
external funding in the startup stage
is statistically related to
their likelihood of taking external
funding in the growth stage.
That is we find of the businesses
that use no external capital
to start their business,
the dots shown in red here,
30% go on to use external
capital at the growth stage.
Comparatively of the businesses that use
some form of external capital early on at
the growth stage, the dots shown in blue,
75%, more than double the number,
75% went on to use external
capital at their growth stage.
This suggests that owners who use
external funding sources early on and
create that culture of
reaching out externally for
financing are to somewhat at an advantage
or able to scale their business.
Clearly funding patterns even just at
the start of a business's life course
are relevant to pay attention
to because of this relationship
to funding opportunities
they take later on.
Let's look in more detail at
the most common sources of funding.
So, we collected information on
a variety of funding sources,
some of which we show here.
And I would like to spotlight
three in particular.
First, the use of personal funds
by scaled and unscaled firms.
We find that personal funds are the most
common source of internal financing.
And one of the most common
sources of financing,
in general, reported by Latino firms.
Over half of businesses at the start
of end-growth stage report using these
personal funds.
So using funds from their family,
friends, or their own personal savings.
And this goes for
both scaled and unscaled firms.
Second, turning now to the external
sources of funding, we see that business
and bank loans are the most common source
of external funding that businesses use.
The proportion of businesses
using business or
bank loans actually doubles from
the startup to growth stage for
unscaled businesses and even triples for
the businesses that are scaled.
Third, looking next at hard money,
which tends to be a more expensive form
of financial capital for businesses.
We find that the opposite, so we find that
unscaled businesses are more likely to
take this more expensive form of
capital than the scaled businesses.
Next lets look at where Latino businesses
are located around the United States.
Almost 60% of Latino businesses can be
found in just four states, California,
Florida, Texas and New York.
The five cities with the largest
concentrations of Latino businesses
are perhaps unsurprisingly
located within those states.
One in nine of all Latino firms
is located in these five cities.
These geographic concentrations
of Latino businesses
map fairly well onto the largest
concentrations of the Latino population.
However, the mapping is not one-to-one.
That is, there are some states where
there are more or fewer Latino businesses
relative to what we would expect based
on the population size in that state.
For example, Florida contains
8.5% of the Latino population,
but 12% of all Latino firms in the U.S..
Meanwhile, across the country,
27% of the U.S.
Latino population resides in California,
but
only 22% of U.S.
Latino firms are in California.
The implication here is that the
distribution of Latino population it does
not necessarily dictate
the distribution of Latino firms.
We explore this finding further by looking
into exactly who it is Latino businesses
are serving.
And contrary to popular belief, we find
strong evidence that Latino businesses
are well integrated into the U.S. economy.
75% are located in zip codes outside
of majority Latino communities.
75% serve mostly non-Latino clients and
50% employ mostly non- Latino workers.
And this shows us that Latino firms
are not operating in a bubble,
that they are in fact well
integrated into the general U.S.
economy and serving more than
just their fellow Latino people.
One possibility is that this
integration of firms is limited to
the larger companies, the scaled firms.
But importantly,
we find that this is not the case.
In other research, we find that these
percentages look very similar for
scaled and for unscaled companies.
So this dispels the notion that,
perhaps, the unscaled Latino businesses
are stuck in step, quote end quote,
in smaller Latino neighborhoods
serving a limited population
unable to expand their clientele.
Because of our strong interest in
learning more about scaled companies,
we also examined the distribution of
scaled Latino businesses across the U.S..
The numbers in black boxes here, indicate
the proportion of scaled firms in the U.S.
that are located in different states.
We see for instance,
that the Latino business economy
is flourishing in Florida.
12% of Latino businesses
are in this state but
18% of U.S. scaled Latino
firms are located in Florida.
In California and Texas,
on the other hand,
we find that million dollar companies,
the scaled companies,
are underrepresented relative
to what we'd expect.
40% of Latino businesses are located
in those two states, but
only 26% of scaled Latino businesses
are located in those states.
What is it that separates firms such as
those in Florida where there's a high
concentration of scaled firms versus
firms such as those in Texas,
where we see a low concentration of scaled
firms relative to firms in general?
Well, one thing that we find that's
different is their use of financial
capital, and particularly their
use of external financial capital.
60% of firms in Texas use
external funds to grow.
To other business compared 80%
of the scaled firms in Florida.
The difference in use of external funds,
we see even begins at the start of it.
So it isn't just a difference in funds
to grow, also to start their businesses.
We find that close to 50% of the scaled
firms in Texas use external funds to
start, compared to 70% of
the scaled firms in Florida.
It is possible that there is a number
of different reasons why this could be.
A couple that we posit would be that's
it's possible there is a culture of using
external sources in some states, where
you have more scaled firms in general.
And more scaled firms that
are using external capital.
Another alternative is that
there could be networks here.
So, businesses are seeing other
businesses that they work with and
do business with,
take on these external sources.
And so this is something that we plan to
look more into in our future research.
Now, most of the presentation thus far has
been focused on characteristics of Latino
businesses.
I want to next turn to characteristics
of the business owners themselves.
And specifically, the characteristic
of being immigrant generation,
generation in the US.
We find that 61% of Latino business owners
are immigrants or children of immigrants.
Specifically, around 30% of Latino
entrepreneurs report being born abroad.
And another 30% report that their parents
were born abroad, they were born here.
This clearly shows that Latino
immigrant families make
up a substantial share of Latino
entrepreneurs, and are not to be ignored.
Their share of owners in scaled
business is even more striking.
Among firms with $1 million or
more in revenue, we find 42% of
entrepreneurs are immigrants.
Among firms with 50 or more employees,
an alternative measure of scale.
And the proportion that
are born abroad is even higher,
that close to 50% are immigrants.
The over-representation of
Latino immigrants among owners
of scaled businesses suggests that
Latino immigrants are job creators,
and are making a positive
contribution to the US economy.
Given the substantial portion of
business owners who are immigrants,
we took a closer look at
the characteristics of those immigrants.
To see if those immigrant owners differed
in other ways aside from their country of
birth that compared to
the other Latino firm owners.
Some of the findings here include Latino
immigrants are less likely to report their
personal goals standing in the way
of their business's growth,
compared to the non-immigrant owners.
Pointing to a unique spirit and
optimism that they may operate with.
Additionally, we find that
immigrant owners tend to be older,
more educated, and
typically are more likely to be
running an existing family business than
the owners that were born in the US.
The knowledge and
experience from these ties in education
potentially could point to,
potentially could be related to their
over-representation among
scaled business owners.
This is something else we'd like
to look into moving forward.
So, I think the take away here is that
even though these immigrant entrepreneurs
are new to the country, they're not
necessarily new to the business world.
They're coming with experience and
knowledge about how to run a business.
Let's recap the main findings.
We find that Latino firms
are distributed across the US, and
serve more than just Latino people.
They do not operate in an independent
economy that is segmented from the rest.
But instead are integrated into
the broader economy in terms of the people
served, and
the locations where we can find them.
Additionally, immigrants
are over-represented among scaled firms.
This sheds light on the positive impact
of Latino immigrants in particular
among business owners and
that they're having on the economy.
And reveals the need to explore what sets
these immigrant entrepreneurs apart and
how we can help other
entrepreneurs in the US too.
Finally, we find that scaled firms
receive more external funding and
are promoting a culture of
early-stage external financing.
So that they're looking for
external financing earlier on.
And this is potentially related to
their ability to succeed in scaling
later in their life course.
And this opens the door for
us to understand why some Latinos
are able to scale and others do not.
And possibly look into the implications
for that opportunity gap and how we can
help smaller Latino businesses to increase
their total sales and size in general.
So in closing, I want to emphasize that we
see our work here is just getting started.
We already had set up
several followup surveys to
our 5,000 Latino entrepreneurs
that were initially surveyed.
And we plan to further investigate these
topics as well as others including
gender differences across entrepreneurs.
Additionally I want to encourage everyone
to take a look at our full report,
which goes live today, and everyone
will be receiving a link post event.
It will be available through the Stanford
Graduate School of Business websites and
contain details on these findings, and
others that we were unable
to talk about today.
Thank you.
>> [APPLAUSE]
[APPLAUSE]
>> Thank you, Dr. Rivers and
Dr. great job in putting
this information together.
And I know how difficult it is to
crawl through all of this, and
find where is the significant
data in the mountains of
information that I know that
you can collect in the process.
So again, thanks for
the great job in doing that.
So one of the things that
comes out of that though,
is you start looking at the information,
or the data that you look at.
And trying to make sense of that,
and implications of where this is
going next is what our next two
speakers are going to be able to cover.
So with that I would like to introduce Mr.
Rupert Murdoch and Mr.
Sotrujillo who will be up here on stage
to discuss some of this information.
As well as some other observations
on the US economy as well, so.
>> [APPLAUSE]
>> Thank you Phil.
I want to start where Rupert and I,
we've known each other for awhile.
We were business partners in
a cable company in Australia.
SInce then we've stayed in touch and
we have lots of conversations
about lots of things.
The economy, technology, occasionally
politics, and a lot of things.
And Rupert, I won't spend
a lot of time introducing him,
but I'm going to introduce him in my way.
And one of the things that
I think is important with
this lay initiative that
we have going here.
Is I would like everybody in this country,
and around the world to think when
they see this word, Latino, and
they think about a synonym.
One of the synonyms is entrepreneurs.
Because the data shows that if,
essentially, if you do the math,
you divide the total number of population
by number of people in a household.
You'd see that almost one
out of every four households
essentially owns a business.
If you're a Latino kind of family.
Now, what's the relevance
to Rupert Murdoch?
Well for me, Rupert represents again,
he's almost by name synonymous
with being a true entrepreneur.
If you look at his history,
in terms of starting in his native county,
in the publishing business,
newspaper business and
how he expanded there,
how he expanded there into this other
English speaking country
called the United Kingdom.
It's more than a country,
but the whole region there.
And then obviously,
his big bets on into the US,
in terms of scaling and enterprise,
which was relatively sizable in Australia.
But all the time thinking
about scaling up.
And this notion of scaling
involves expertise.
It involves essentially a risk appetite,
and in Rupert's case he's made some of
the biggest bets I've ever seen anybody
In business ever make in a personal way.
And it also means staying current with all
the attendant issues that you have and
whatever business or
sector that you operate or compete in.
And so when you think today about
21st Century Fox, in terms of what in
encompasses, I would encourage
all of you to go online and
just look at 21st Century Fox, and
see the enterprise that he's built.
But starting from where he started, and
essentially exemplifying what
we're talking about here.
And so,
when I think about entrepreneurship,
I think about, again,
knowledge about something.
If you're going to start a business, you
better know something about that business.
Number two, you better have some
continuous learning capabilities,
which is what we're doing here at Slay,
as Dr. Boras talked about.
And the third thing, which is the most
difficult, almost noncontrollable
variable at start,
is this notion of capital, and
how you leverage capital over time
as you continue to scale a business.
So I say all of that in terms of
introduction of Rupert because
Rupert has done all the above.
He's done it at a smaller scale.
He's done it at a massive scale.
He's had to,
through the businesses that he covers.
And one of my favorite publications.
You'll see me walk around almost
every day with this publication,
because it's a global view
of what's happening, and
it's about as independent a view as
there is in today's media environment.
And what I mean by that,
is that if you look today, you might
see something here that says dollar
sinks as Donald Trump talks it down.
Is that a positive or is that a negative?
Right?
You don't know unless you read the story,
because there are always pluses and
minuses to almost everything.
And if you were to read
the Wall Street Journal religiously, and
I'm not doing a commercial for Rupert.
He didn't ask me to do this.
If you read the Wall Street Journal,
you will be able to see
more coverage of Latinos
and their importance to our economy
than any other publication out there.
And I mean it, because this is both
digital and analog version, right?
And I can say that if you look at
editorial policy, you will see,
again, more coverage about the importance
of Latinos in the Wall Street Journal.
And I say that only because this
gentleman, along with his leadership team,
they spend time trying to understand data,
trends, facts, and other things.
So, I'd like to just start off this way,
by giving this background
about Rupert Murdoch, who
really does care about ways
that we can grow the economy,
and he cares about it in a way
that is important to our country.
And so Rupert and
I have had a lot of conversations,
probably over that last four years,
five years about this.
I mean, we've spent a lot of time,
and he's engaged his leadership
people within his company to
make sure that they understand.
So I say all of that and ask all of you to
help me welcome up here Rupert Murdoch.
>> [APPLAUSE]
>> Now, Rupert,
I want to start by asking you just this
broad question about entrepreneurship,
and why you think entrepreneurship
is important for any country.
Why it's important for almost any
community, as you think about it, and
why it's important for each of us
as individuals to understand it.
>> I should first thank you for
the welcome anyway.
A lot of flattery, but it does well.
>> It's all truth.
It's all truth.
>> Yeah, it's about entrepreneurship.
I mean, it's the fundamental thing
that's going to create not only good for
the people who engage in it, but
opportunities for everybody.
And I think it's the very basest chance
we have for growing the economy.
And I think we're all very
lucky to be in America where
there's a better climate for entrepreneurs
than anywhere else in the world.
Certainly for
immigrants who come here, and
we're going to talk about some
handicaps that exist, I'm sure.
But, you know, there's no one,
if you go to any country in the world,
there are people who want to come and live
here and take advantage of it and grow.
And I think that's a wonderful thing for
America.
Now, of course, at the moment,
it's overwhelmingly a question of Latino
immigrants and
how they've got to be helped.
I think public education is
a huge issue in this country.
I think the access to capital for small
people is another equally huge issue.
But we'll come to those.
>> Well, so Rupert, as you think about
your engagement with us here today
and your firm has committed
some resources and support of
the initiative here,
why are you even here today?
Why are you committed to this notion
of entrepreneurship, growing companies,
understanding more, etc?
I think it would be helpful
to understand that,
why a guy like you would even
be spending time on this.
Because I really want
the Stanford people to hear this.
>> Well,
I'm in the business of communications.
You know, I started with a small
newspaper, got some more,
realized that there's great
transformation coming.
So we've got the television.
Television in Australia in those
days,you were taking what you were fed
from America.
Long term, the idea, first to get
out of Adelaide, have a network, and
then to get at the source of it,
which was the studios in Hollywood.
That was how we got out of those.
But if you are in media,
you have newspapers,
you have news channels and things.
You have a responsibility.
And I am lucky, I was brought up by a
father who was an editor and a journalist.
It's natural for me to be interested and
very understanding of the responsibility
one has to partake in
debates about public policy.
>> So talking then more specifically
about the Latino population in the U.S.,
and in particular,
this notion of this growing tsunami,
let's call it,
of Latino entrepreneurs,
how do you think about it?
If you were sitting down with Donald Trump
today, and you were trying to
help him understand this, what would be
the key insights that you've picked up
over the last several years looking at it,
and through the eyes of your editors and
reporters and other people that do
their own independent research?
>> I can't share.
I've tried already, but you get attention.
If you're going to get a recovery and
you're going to get growth,
you have to get the mass
formation of small businesses.
I think our history shows that,
how we came out of depressions and
recessions in the past.
It has always led by the formation
of small businesses.
And he can make some political
statements about getting Ford for
1,000 jobs or 10,000.
You've got to understand that the jobs
are really going to come from small
businesses.
And to create an atmosphere for
growth, I think the biggest thing,
bigger than taxes almost, is deregulation.
But if you get corporate taxes down, then
it would apply to small businesses too,
and that will also be a magnet for people
here, and an encouragement to get started.
>> Part of the reason why Rupert and
I chat periodically, is
wherever I've been around the world,
I've proclaimed myself as a capitalist, as
a market based person, because I believe
that markets work 92.5% of the time.
Right.
Not 100% of the time,
because there's always
frailties in almost anything.
But I think Rupert's point about small,
medium sized businesses,
for the last three decades,
over 70% of all new jobs created have
not been created by the big companies,
like the ones I run or Rupert runs, but
they're really created by small,
medium sized businesses.
And so, that focus is important and
that's why the work here at Stanford is
important, just reinforcing
Rupert's point.
But one of the things, Rupert, that you
saw in the the presentation and the data
is that Latino owned businesses,
they are proliferating, right?
And part of the good news of
that that we don't cover so
much at the Stanford level in
terms of our research is that
those people that are maybe creating
a business that's generated 100 or
$150,000 of revenue, and maybe they're
taking home 80 or $90,000 of profit.
That means I'm earning an income
that doesn't put me on some sort
of welfare or
whatever it might be in terms of support.
And that's really important
when we think about GDP and
productivity and all the driver
variables as we grow an economy.
And so one of the things, though,
that has been pointed out is that, yes,
volume is growing, and
it's growing at a high rate.
But the attainment levels
are not quite the same.
And one of the things that's starting
to emerge from year one research,
year two research,
is this notion of other sources of
capital besides what I can pull out of my
credit card and friends and family, etc.
And Latinos are not networked well
enough into other sources of capital.
There are not funds targeted yet here in
a prolific way, and there's some people
here in the room that are starting funds
and getting into that business today.
But this notion of capital and
access to capital, and
networking,and I'm not talking
about government programs.
I'm talking about just
the way markets work.
Sometimes if you're not familiar
when you're going to enter India or
Indonesia or some place,
you create a network.
You create relationships, and
people know people that have capital and
there's people that are seeking capital.
You can broker those kinds of
marriages through awareness and
knowledge, data that
tracks how performance is.
What do you think would be helpful
as we think about strategies of
creating this networked visibility,
accessibility, to those sources in
capital that seem to work well for
what you may call the traditional
categories of people.
But Latinos in particular don't
seem to have them yet, and
we're going to do more research around it.
But any thoughts there?
>> Well, I don't really understand that
because I think when we're talking about
Latinos and Catholicism, it's a cultural
thing too that make them entrepreneurs.
They want to get their
families to do better.
It's not a selfish thing at all.
I don't understand why
people don't network better,
because maybe churches
are not as strong as they used to be, and
those sort of community organizations
have fallen down a bit in
most Western countries.
So maybe we can do more at that level.
But can we, with young people,
with youths, get them together more.
>> Yeah, one of the things,
if you went through the data,
you saw this example of Florida
versus Texas for Latinos.
So two things stood out.
One was that in Florida, the percentage
of millennials as entrepreneurs
was significantly higher than in Texas,
where they tended to be older.
Interesting data point,
which may be correlating to average
age located in Florida of Latinos.
Don't know that.
I don't know that.
>> Is it Cubans and
their background in Cuba?
They're refugees in a sense, politically.
They might have lost a business,
their families.
And have lost everything,
come here to start again.
I don't know.
>> Yeah.
>> Do they hold together better,
because they are political refugees?
And are they educated better
in Florida than they are in-
>> My personal view,
this is a personal view.
We don't have the data yet, but
we're going to get it in
our next wave of research.
Is that in Florida, and in particular,
in Miami The first generation
of let's call them refugees, right,
people that literally left the country.
They were business owners, as you said.
They had education.
They had a lot of things.
Maybe they didn't have
the money that was in the bank
when they left in their pocket, but
they had all the knowledge and expertise.
>> Right.
>> And they had the networks, right?
If I used to be the banker.
And I used to be the construction company.
And I used to be the doctors and all that.
They all got together networked and
they operated much like what we all
either publicly or maybe not so publicly
talk about like the Jewish community has,
in various places where they've immigrated
from and to, where they network,
they support each other, they make capital
available, they do all that sort of thing.
And in Miami, I think that's really,
truly the case.
But now it's happening with the
Millennials, right, where the Millennials,
because their parents might have done
that they're now proliferating it by
using all kinds of traditional in today's
context, traditional sources of capital.
But in other parts like Texas or
even California,
it's not quite happening at the same
rate so we need to get the data.
But I'm a believer that like with
anything if you're launching a new
tv show in the fall you have
to promote it, right, so
that people are aware of its existence in
order for them to want to watch it, right?
And in this case,
the story about Latinos as entrepreneurs,
the story about them in terms
of their growth rates, etc.
is something that I would like to
personally see more funds evolve.
If you look at the venture capital
world here in the Silicon Valley and
you did a survey of them.
Nobody has done this because
it's all fairly private.
And you saw in reverse
a survey of Latinos that
are getting funding from Venture Capital,
you'd see it's very, very, very small.
And part of that may be awareness,
just of-
>> Awareness, I don't think they're biased
against Latinos, Indians,
people that walk in if the idea is good.
>> Yeah.
>> How would he think a lot of it,
I'm talking about mass of people
that come back to education.
I guess the biggest particular
group of Latino's will be
in sort of greater Los Angeles,
south of there.
That is the single worst school
district in America by a fair margin.
Chicago is probably second.
New York third.
They're turning out kids
that can't read or write.
They're terrible schools.
We have to get that right.
>> Well, one of the good things
though that is happening and
I think you're right
Rupert in the macro sense.
>> Then they might stick together more.
See there are other things that are hugely
transformational in society at the moment.
Talking about newspapers,
they're against the wall at the moment.
Now with television,
the thing is happening,
where do people get their entertainment,
where do they get their news from,
the answer is Facebook or Google,
which cuts right across everything.
Doesn't bring any sense
of community at all.
They're going to get their escapism.
They get on television.
Sort of a lot of that, but it's older.
You're going to find young people
are going to get kind of sort of videos or
Snapchat, all these things happen very,
very fast.
>> Yeah, no I mean, there's new ways of
networking and that's the interesting
thing about some of our research this
year is that if you see that in Florida,
it's heavily predominated by Millennials,
in terms of higher percentage.
They're probably using the social
tools to essentially create awareness,
to create networks, to do other things,
that may be a more difficult process In
what I would call more of the analog world
of going to a traditional venture capital.
Maybe trying to get private equity
if you're growing fast enough and
you need larger chunks of capital,
and or it's the old story,
it depends on my growth rate as to
whether I'm going to get an angel.
I have to be old enough
to get a bank loan.
>> Right.
>> And then I have to essentially have
higher growth rates or be in what I
would call a comfortable sectors for
VCs in particular tech VCs
to want to be interested.
>> So, as you think about it,
if somebody came to you,
and said, Rupert,
we're trying to solve this conundrum.
Prolific growth in numbers,
not having essentially enough
attainment and it's not necessarily
the businesses are failing, but
they're being stymied by
capital availability.
>> Sure.
>> What would you speculate or think about
that says, gee, I think we should do, we
if you were in charge of this initiative,
what would you think we should be doing?
I don't think it's just a Latino problem,
no I think it's have a very
small business to get started.
Not just all the regulations, you've
also got what's happened at the banks,
and the lending since the Dodd-Frank Bill,
and
big banks are being stood over by
the big ones, by the Fed saying
look at your risk portfolio, get your
capital base up, get your profits up.
They're not in the business
of lending to small people,
even mortgage to small people.
The small regional banks,
they've been wiped out very largely.
We have to turn that back.
>> Yeah, and that's again,
facilitating what used to be
a traditional source of capital.
Frank [INAUDIBLE] beginnings
of Bank of America story.
>> Yes, sure.
There once were loans to people starting.
>> Yeah, I was once upon a time on that
board, and it was interesting when it was
in San Francisco to see the culture
about helping Californians grow.
>> Sure.
>> And that is stymied,
because I've also been on the board,
an investor in a Latino owned bank in LA.
Largest market, etc., etc.
And when Dodd-Frank passed,
we essentially had to start acting
like Bank of America and Wells Fargo.
>> Right.
>> Because of all the compliance
requirements, etc., etc.
And all of a sudden, all the Latinos
that thought they could get a loan from
a Latino essentially
owned controlled bank.
[FOREIGN], right?
It changed for everybody.
>> Sure
>> And so that is important.
So again, taxes, so
that when you think about cash flow.
Regulations when you think about speed and
lowering your cost of operations.
>> Somewhere in New York.
I'll guarantee it'll take well over
18 months to get into business.
You've got Feds, you've got the city.
They'll be inspecting you for months
at a time, and the state is endless.
People just, say to hell with it.
>> Okay.
So, that's a real dither.
I will have to.
Bring that back in waves.
But I think with this new
administration doing it,
it certainly intends to
deregulate a lot of fronts.
And I think they've got very good
intentions on public education.
We'll have to see what's possible.
>> So Rupert, as you look at some
of the research we did last year,
because you were involved
in supporting that.
And you look at the research this year,
and I'm saying now put on your Wall
Street Journal or whatever specific hat.
And say, gee, Saul, that's all been good.
And then you've created this spotlight
on Latinos and entrepreneurs.
So we get that, but
here's what we'd really now like to
see as information about Latinos and
the economy, the Latinos driving
growth in the economy so
that we can achieve 3% GDP
growth instead of 2, right?
because I really do think-
>> Or 4.
>> Yeah, I mean, I personally
think 3% GDP growth is possible.
It's not an easy-
>> Consistently, yes.
>> Yeah, it's not easy, but
we've gotta do exactly what you said.
Not think about Carrier and some of
that kind of stuff, because that's-
>> That's a bit of fun.
>> Yeah, but really focus on this core.
And this is the driver of that core
of small and medium-sized businesses.
So what would you like to see
as a news person that says,
boy, if I could have this kind of data,
there's a really compelling story
here beyond what we've already told.
>> I think we need more than just,
to dramatize it a bit more,
the big figures we have now.
Can we really survey or
sample large numbers of Latino businesses,
small ones, medium-sized ones, and
what have been their experiences,
what have been their
problems in getting started.
Are they just employing family?
They want money to buy out a competitor or
some of the next and broaden themselves.
But what have been their problems?
We need to get, I think,
specific examples.
I mean, lots of them, to build a case.
>> One of the things that I did for
today, but, as you probably know,
I do all the time,
is I like gathering factoids.
>> Right.
>> Right, factoids about Latinos.
Because as an American,
I think about our economy as being so
critical for superiority in
everything else we do, right?
>> Everything.
>> So, I'm going to, for
everyone's benefit but for yours,
because some of these you've heard before.
I just want to repeat these
because it goes to your point.
The US Latino population grew
from just over 12% in 2000 to
nearly 18% in 2015, and
Doug covered that earlier.
The US census bureau anticipates
US population growth to grow
by nearly 50 million people by 2015.
Now think how many countries that is,
right?
Latinos are better
educated than ever before.
The US Latino high school drop out rate
decreased from more than 40% in 1980,
to just over 10% in 2015.
And closing in on the overall US drop-out
rate of 6.4% and continuing to decline.
And this again is census bureau data.
And Latinos are going to college,
the share of Latino high school graduates
going straight to college has jumped
over in the last 15 years now exceeding
over all U.S. matriculation rate.
So the kids that are graduating
from high school
at a slightly higher percent they're going
on to college, which is terrific, right?
For those of us that have been
dealing with some of these issues for
a number of years,
the US Latino's are driving a large and
increasing share of economic growth
including, this is out of a recent study
done by the National Economic
Research Associates in DC,
a total of US real income growth.
US Latino's contributed 30%, 29% sorry.
29% of all the real income
growth in the United States
of America in the last decade, okay?
I want everybody in this room and anybody
that's watching this on the streaming
that we're doing, 29% of all real
income growth in the United States of
America over the last decade
was driven by Latinos.
That's going to quickly go to 35 and
40% within the next five to ten years.
That's massive, right?
That's not ethnic.
That's not niche.
That's what I call mainstream.
So, when we keep going and
we think about today the consumer market's
about $1.5 trillion, it's growing
at $80 to $90 billion per year.
Now what does that mean?
One and a half trillion makes us about
11th or 12th largest economy in the world,
but it's growing as fast
as India's been growing.
So at the top of the class,
the average age is 28 of all Latinos.
And the native born average
age is closer to 20.
So when you think about a perfect
description of a growth story for
a country,
What else would you like, right?
And so those are all drivers.
Obviously it still has to be attained.
And that's why what you said at
the very beginning about when we think
about economic policy in the United States
of America, the spotlight needs to be
on this kind of stuff because this
will drive millions of new jobs.
It will drive billions of dollars
of growth in the economy.
And I could go on and on in terms of
the consumption side of our economy.
But this is really important, and this
is why we've invited you here, Rupert.
Because, for
everybody in the room, Rupert,
his day may look like today he's
talking to somebody from South Korea,
the next day from China, the next day
Africa, the next day from somewhere,
because of the global requirements he has
as the CEO and Chairman of his company.
And so when we then hone in
just on the US, we want to
get better at telling this story,
getting more visibility to this story,
so that people are really
focusing on how we catalyze more.
Not just pay attention, right, because
almost everybody now that you probably
talk to says yeah, I understand Latino's
are growing, right, but so what?
There's a lot of so what here.
>> Mm-hm.
>> And your perspective can be
helpful to us in terms of how we
should talk about it,
how we should research around it and
get that story told through
the Wall Street Journal, through TV shows.
>> Sure.
>> That you all have where
a Latino is the star.
Saving the lawsuit, or
creating the enterprise, or
whatever it might be
that your storyline is.
But all of that because
that's all about markets.
And I love this notion of driving
everything through markets.
So, any commentary on that?
I think it does.
>> And the media is certainly up to me and
other people to.
It's a great opportunity.
But we gotta be looking for
more educated young Latinos to come and
be reporters on our television stations.
They do well,
then come on national cable television.
Yeah.
>> If they're of the more creative
type, we got to get them into Hollywood,
basically.
Which is very difficult.
I mean its, I don't want to be
No i see Mary [INAUDIBLE] but it's a very
Jewish, tight community in Hollywood.
To go there and press, which we do.
We have some.
But not nearly enough of
Latino actors coming up.
>> Yeah.
I would agree wholeheartedly with you,
as you know with some of
the conversations that we've had.
I'm going to open it up for at least two
questions from the audience out there
and we'll start with whoever wants to,
yes sir?
>> Can you guys hear me okay?
So this question is a general question.
Looking at the research startups,
small businesses in California,
Texas, Florida, New York,
in terms of mapping what are we
doing in terms of building and
network in the service jobs Areas
such as Oklahoma, Alabama, or
other swing states, like Ohio,
where there are many Latinos.
And I don't want us to be
ignored in encouraging building
the infrastructure and
the network in those states.
So Starletts could be paid
attention in those areas.
>> Well,
let me just say first of all thank you for
that point in addition to what
might be a question there.
And the question that you're asking is,
is how can we do that?
And, I think, really, behind the question
is, we should be doing that, so
that everybody understands
the national map, and
you can go to Kansas,
you can go to an Arkansaw.
You can go to lots of places,
Oklahoma Where you-
>> In North Dakota, everywhere.
>> Yeah.
>> Where there are opportunities,
they're there.
>> So your suggestion I mean, I think is
a valid one, what would you suggest we do?
Let me just turn it back to you.
>> Well.
>> Can you stand up?
>> Okay.
So by the way South Purdue is
being honored at some kind of
Latino leadership [INAUDIBLE]
>> It's an honor
to meet you here in person.
What I would suggest is really
collaborating with professors from those
areas, and data is everything.
Data is everything.
And really bringing the resources
together so that we can start there.
That's a starting point.
And Dr
[INAUDIBLE]
>> Great, Jerry, you think this is doable?
>> [INAUDIBLE]
>> [LAUGH]
>> Okay, thank you, thank you, yes.
Hello.
My name is Amy Williams.
I'm with AB Unlimited Worldwide.
And my question, Mr.
Murdoch touched on recovery.
It's one thing for Latinos.
It's not working.
It's one thing for Latino businesses
to start Maintenance is another thing.
How can we help these
Latino businesses recover,
when they have financial disaster.
When they've hit road blocks?
What other programs can we try to instil,
such as this
Active Latino Entrepreneur Leadership
Program in other parts of the country so
that we can maintain
these small businesses?
Jerry do you want to?
[LAUGH]
>> Jerry did you or
Phil want to talk about that?
Because we have been serving business
from around the country in the program.
>> One of the things that we're
doing is finding that [INAUDIBLE].
One of the things we
are doing is trying to build
a network that's beyond just Stanford So
as an example,
we're working with accelerated
programs out of Ohio, as an example.
We're doing this with Hispanic chambers
and have built accelerated programs both
out of Tuscon, out of Chicago area,
out of other locations throughout.
The other is also accelerated programs
that are being run Through equity funds in
certain cases.
This is from the family.
Help me, Victor.
>> [INAUDIBLE]
>> Unanue,
who's part of the Goya Food family,
that's created that.
Who's got their own accelerator program
for Latino firms in the food industry.
So we're trying to build that network up,
so as we come in and
we hear about companies that need help
we can point to the right people, and
we can cross reference to each other.
So we're trying to, right now we
have a lot of single nodes and
we need to build a network, so
I think that's the opportunity.
>> A shame of plug.
>> Yes.
>> For
our business what the program did for
us was really help us identify what our
broken windows were So
that we can improve our internal.
>> There you go.
>> Systems as well as our output for
[INAUDIBLE] with our staff.
So I'm really grateful to
have been an alumni from too.
>> That's great.
>> Thank you.
>> That's great to hear.
Thank you.
Yes, in the back?
>> My name is [INAUDIBLE] with
the National Association of
Hispanic Real Estate Professionals.
Mr. Saloner I want to thank you for
your participation with Nara over
the years, and my question to you is,
how can we accelerate
the collaboration between Nara and
the real estate entrepreneurs to
leverage all of their networks so
that we can Increase Latino wealth.
>> Thank you.
Thank you for the question.
Again, these are all terrific.
We have been working very
recently with Gary Acosta.
Who's your organization, yeah.
And Gary is just terrific.
>> And the NAHREP is the organization,
National Association of
Hispanic Real Estate Professionals.
I had the pleasure of speaking
to their national event
a few months ago and
they knocked my socks off.
It was one of the most professionally
done You know annual conferences,
people that are building businesses.
Whether it'd be, I mean it's all centered
around the real estate profession.
And entrepreneurs that
are creating mortgage companies,
creating their own real estate companies
etcetera, which was just wonderful to see.
And you've seen the data abound 51% of
all new home mortgages in the last decade
being out by latino families.
>> Right.
>> Well, these are the people
that are now, what I would call,
the mainstream real estate
organization in the country.
And so, we're looking to collaborate,
use the data as part of the research in
the coming year
>> Is what, the NRA you're talking about?
Then.
>> Sorry, [INAUDIBLE].
I'm sorry.
>> And so, we're going to be
looking to coordinate even more
to get that data to show
that there's entrepreneurs.
The great this is that there's
entrepreneurs everywhere.
Every sector.
We cannot be stereotypical.
And the nice thing is that,
there's a woman I met that's
part of the organization there.
She only has a 15 billion dollar mortgage
finance business down in Orange County.
>> Wow.
>> I had never heard of her.
Never met her.
Gary introduced me to her.
And she's a Latina,
doesn't have a college education, but
she's got a PhD in real world business,
and she's built this business.
You go into her complex,
I mean she has all kinds of agents,
people online, etc., working and
I just was blown away
by everywhere I get asked to speak now,
and I get to know these organizations.
It's like I"m discovering all these great,
talented entrepreneurs
in almost every sector.
So yes, we are going to work more closely.
And it's a great story.
And one of the things that I'll Talk to
Gerard, and to even Paul and some others.
>> Mm-hm.
>> because there's so
many great stories about people boot
strapping their business like you did.
>> Sure.
>> And making it big.
>> [INAUDIBLE]
>> Thank you.
Maybe one more question.
>> [INAUDIBLE]
>> What's that?
>> Murdoch.
>> Hold on.
>> This is a private,
this is a question specifically for you.
If you've seen this book today and you are
a new entrepreneur, a Latino entrepreneur.
What business would you start?
Where would you start it?
And how would you network it?
>> [LAUGH]
>> [LAUGH]
>> I mean clearly,
is that there's a huge opening for
people in building houses and
contracting work.
I mean if you're more ambitious,
you need a little bit of
capital if you're going to start a
>> And then you're gotta start.
But I think you could see it.
It's just a lot of room.
If you're going to grow the economy gain
again, you gotta grow in population,
serve in that population.
Particularly, if you're one of them.
you take advantage of that
as you say networking.
Surely if we can get the economy growing,
you will be a big part in causing that.
The opportunities will lift everybody
up and they'll be much better.
But you still all remember that the heart
of capital and entrepreneurship is risk.
You've got to have
the courage to take risks.
And people fell, and
I nearly fell two or three times.
And it did almost take years
to dig myself out of holes.
But that's the nature of it.
You can't complain about that.
You partnered up with for MundoFox.
Is that correct?
If I'm not mistaken.
>> Yeah, I think that's over now.
Didn't work.
>> But
you branched out to the Latin culture-
>> Sure.
>> And actually tried to create a
>> An in between, not a Spanish station,
not an English station.
But someone, so I applaud you for that.
>> Mm-hm.
>> It was a great,
I got interviewed a lot by them.
But I wanted to know how you were
looking at the Latin culture and
said, I need to do this.
Why did you do that?
Where was your
>> I understand our Latin culture
certainly, and we're looking to try and
learn about it, absolutely.
>> Okay, well we need to move on, and Mr.
Murdoch has some other commitments.
>> That's fine.
>> If you want to take another question or
two-
>> Sure.
>> Okay, great.
Yes, sir?
>> Hold on.
>> Hold on.
>> Go ahead.
[CROSSTALK]
>> [LAUGH]
>> Hi, [INAUDIBLE]
>> [INAUDIBLE]
>> Okay,
[INAUDIBLE] Mid-Atlantic Hispanic Chamber
in Washington, DC.
I have several.
One is, the level of education
that the hispanic community,
hispanic children are getting
all over America.
Somebody already mentioned
>> That the poorest school districts
are in areas where Hispanic children live.
So, high school education is not anymore
a ticket for success in America.
It can be if you're a good
business person, but most people
don't have the knack for business, so
you're not employable at a high level.
If you don't have more than
high school education.
The other thing is four year education is.
The future of America is
the STEM technologies, you know.
And if we don't go in that direction and
they just learn it to be a teacher
in Spanish and all of that.
Yeah that can give you a living But
it doesn't ensure success.
At the end of the day,
it's more than just business.
It's lifting an entire Hispanic community,
to be as productive
as resourceful and
as successful as the rest of America.
I know they're speaking
just about Hispanics.
African Americans you said disaster for
this happening.
Where living areas in DC, Baltimore
were essentially they are ghettos.
I mean most African Americans will I'll
not will resent using that phrase but
the reality is, drug addiction,
lack of education, lack of housing.
It seems to be many panics in an area.
Say what is wrong with
this picture in America,
because we grew up in countries
where you didn't have that problem.
So my question is, what we need to do
to really push the Hispanic community?
If you built Like the Jewish community.
If you have a community that embraces
lifelong earning, not just hard work.
Hammering all day may be admirable but
that doesn't get you too far.
That allows you to use the knowledge
you have useful knowledge.
For whatever endeavor you choose in life.
What we need really to do,
where do we need to start?
Business is important,
I'm president of a chamber.
I'm an advocate for all the things.
But I need to learn from you.
What was the reason for
your success, Mr. Murdoch?
>> Well, I was lucky,
I had a sort of decent education.
But I don't think.
College and universities are fine,
and that's good but we just mentioned
that lady in Irvine county,
no college just a natural business woman.
Clearly intelligent, but
what you're saying about the schools.
It's you see I think
Latinas have still got a family culture,
and that's absolutely essential.
It's gone from the African Americans.
72%, 80% of them the children
are born out of wedlock.
They're in those places like in Baltimore,
the mother's try to bring up their kids,
they got no hope.
Schools are terrible They
don't get a challenge.
They can't get jobs.
That the rate of unemployment of African
Americans under 30 is just enormous.
And they turn to crime or gangs or
if you like, just a lot of welfare.
And this is a problem we have to tackle.
I don't know quite where we start.
But I think Latinas have an advantage,
they still,
more than any other group,
have a family culture.
So hang on to that at all costs.
>> I would just add one other thing
to what Rupert said because I'm
a glass is half full guy, right?
I like focusing on all that can be done
as opposed to what hasn't been, okay.
So let me give you a scenario
in today's economy.
I can take you to parts of LA, to Phoenix,
to a lot of cities around
the country where, 15-20 years ago.
because I've lived in
several states in the US, and
I've been very active wherever I've been.
And I can show you bad numbers,
high dropout rates,
high gang membership,
all the negative stuff.
What's happened in that last 15,
20 years is that people did
get their high school degree.
Maybe they were pounding nails
as a carpenter or working for
a construction company or
whatever as an employee.
But in today's context some of those
people have now become Lucero Contracting,
Garcia Plumbing, whatever.
And they've turned from being a mechanic,
if you will,
in a trade to being an owner
of a business now employing,
some cases familia and
in other cases other people,
as we saw in some of the research data.
And now, when we're looking at
4.5% unemployment, and yes,
there are some people that
are not on the rolls.
But the Wall Street Journal just did
a story a few days ago that showed who
those people might be.
And they are not these kinds of people.
They tend to be older, they tend to
be people that have been displaced in
an industry, and they are not
looking to be reeducated at 53 or
55 or 60 or whatever it might be.
My point is is that I can show you,
and the data shows this,
the proliferation of businesses
that have names like Garcia,
Martinez, Aragon, whatever it might be,
wherever it might be.
Because they've learned a trade,
they may not have a master's degree,
they may not have a PhD.
But they're getting a PhD in real
business, growing their businesses, etc,
etc.
That's the hope,
that's the glass is half full opportunity.
And as Rupert said,
because of this family orientation,
because of a community dedication,
these things are still very possible.
And they're actually happening,
and dropout rates are falling.
More of their kids are now going on
to college and doing other things.
And I'll say one other thing.
I spoke at the Republican governors
group the week after the election.
And they asked me to come and
talk about how do we grow our economy.
Now I have a phrase that I use,
which I believe in which is,
we have a new mainstream economy.
And Rupert's heard this many times.
We've talked about it, and I think we
all agree that this is happening, right?
People don't quite see it yet,
but it's unfolding.
Well, one of the governors that was
there was the governor of Arkansas.
And he was talking about what they're
doing for these kids that you described.
That they haven't traditionally
been the kind that graduate or
go on to college or whatever.
And so he's implemented a program in
the state of Arkansas where every
kid has to take a class,
it's a mandatory class, on coding.
Because today in a digital
world everything
has software associated with it, and
somebody's got to write the software.
Sometimes somebody's
gotta fix the software,
sometimes somebody has to edit or
review the software.
So there's all kinds of jobs that don't
require a degree, per se, or a PhD.
And there's lots of those evolving in
our digital economy that we have today.
And so I was listening to
this governor of Arkansas.
And it prompted other
governors to talk about
similar things that they're doing in
North Dakota and in other states.
And I'm sitting there thinking,
wow, forget what we hear about
with President-elect Trump.
Okay, because I have certain opinions
about is that the right focus or not.
But put that aside.
The governors in states where
they see people everyday,
they interface with people every day.
These governors now,
we have a new generation of governors
that are starting to make real differences
in terms of dealing with that.
And again,
when we're at 4.5% of unemployment and
you go around to almost every state now.
And you see help wanted signs, and you go
online and you see all these job postings.
There's a lot of opportunity now, and
people should now seize that moment and
remember that the glass is half full.
>> All right.
>> [APPLAUSE]
>> My name is Anna Bermudez.
I am the founder and CEO of TAGit and
I was a graduate of Slope 1.
So thank you both for your time.
Mr. Murdoch,
you brought up a very good point and
you said the word risk
just a few minutes ago.
Having been in the finance industry for
almost ten years,
the majority of my job was to not
only quantify but also analyze risk.
Now there's no data or study behind this,
this is solely my personal experience.
But what I've encountered
as an entrepreneur in tech,
as a Latina tech entrepreneur,
Is that the risk on
the investor side within my
demographic isn't as big.
So within my company,
the majority of my investors,
with the exception of one,
only one investor is a Latina.
All others are non-Latinos and
they are men, that's just
the way it's worked out for us.
So in your opinion, what do you believe
is the risk that the community is having?
Because when I approach a non-Latino and
they ask me,
well, is your community investing in you?
I say, yeah, one.
[LAUGH] One of my investors
decided to invest in us.
How do you quantify that risk, or
what do you think is raising that level
of risk for an entrepreneur like me?
>> Do you want to explain while
he's thinking about his answer?
Explain what TAGit is?
>> Yes, TAGit is a software
platform that TV networks use
to monetize ads and product placement.
Through an app,
you click on it and you're able to buy
exactly what you see on TV as you see it.
>> Great.
Well you say, how do we assess the risk?
>> In your opinion, what do you
think is the risk that investors
in my community are seeing in
Latino tech entrepreneurs?
>> In tech, I think they're looking for
the idea, looking for
the person and the people.
I mean, the best investors I know
around here tend to come in maybe in
the second stage of a company.
But they first see there's
going at the chief executive.
The founder is still chief executive.
Get to know them,
get satisfied with their character.
That they're really hardworking,
that they're intelligent, and they invest.
You look at people and their characters,
I know a lot of people in the early days
For a while, no one would touch me,
then people I got to
know backed me personally,
banks took risk with me.
And it worked out but
you have to when you're deciding,
when you're investing, you gotta look at
the person who's the got the idea, and
what sort of people are they?
Sorry, more than just the idea.
>> Just a quick comment.
I think one of the things
that we're going to, again,
pursue in research next year Is
that with most Latino entrepeneurs,
I'm not talking about your case because
I don't want to personalize anything.
But one of the things that
people are learning if you
did a comparative study to
non-Latino entrepeneurs.
And those that are scaling and
why they're growing faster is that there
is a willingness to give up equity early.
So that if I really need that core capital
that's going to allow me to really grow
fast, I may give up more equity now
because 100% of nothing is nothing, right?
But if I keep 70% or 60% or
80%, whatever the number is,
of something but
I get all the capital I need.
The math works out much better and
the continuous fund raising and
all that kind of stuff.
I've done this, learned up myself So
I've been through the stages of
rasing that first round and the second
round and all that sort of thing.
So I've lived the big corporate life and
I've also done startups and
I've invested in some.
I would say that one of the things
here is the familiarity or equity and
managing equity, do you give it up?
How soon do you give it up?
There's some of that that becomes
part of the consideration that every
business has to think about.
So in the case of, let's say Rupert in his
situation, where you look at, now snap,
is going to have a big I-P-O,
and they're structuring.
They're understanding that they
might need some capital and
maybe they want to take some
money off the table too.
But they're structuring voting rights and
control so
that they can keep what they
want in terms of control.
But they're giving up other form of equity
so that they can attract the capital.
So, there's some thinking here about what
is your medium term, your long-term.
How fast do you want to get there, so
that then you think about these tradeoffs?
I've been through a lot of these
personally as an investor and and
also sitting on a couple boards
of some of these companies.
And it's always the same question, so
Phil is standing up, we have to move on.
>> [LAUGH]
>> Sorry.
>> Rupert does have a committment
>> So help me thank Rupert again for
taking the time to come out here.
>> Thank you, thank you very much.
Thank you.
>> [APPLAUSE]
There's a couple
of networks that want to talk to you guys.
If you'll go with Roberto here,
he'll help you,
we need to catch them when
we can with the two of you.
Again, there's a few things I
want to do before we move on.
I'll try to do it very quickly.
I want to thank also some of
the other folks here from Stanford
that took the time to be a part of this.
So, Professor Galario Thanks for
being here Professor Professor Van Horn
here earlier.
Also we have trustees and former trustees
of the University so [INAUDIBLE].
And also the next speaker
whom I'm going to introduce
is, a good friend of mine,
also a classmate of mine, Victor.
Victor is VP at International,
Stanford University Trustee Emeritus,
also one of the other board members of.
So Victor if you'd join us, and
as he's walking up, I'd also like to
acknowledge and thank another board
member in the back who's Frank Ramirez.
Frank, you want to wave at folks to
let them know who you are here and-
>> [APPLAUSE]
>> I appreciate the support and
of course Saul Trujillo is also
one of the Alban board members and
has been extremely, extremely
supportive of all our efforts here.
So with that I'll turn it over to Victor.
>> Thank you.
[INAUDIBLE]
>> [LAUGH]
>> [FOREIGN] A very famous philosopher
from Mexico, Vicente Fernandez.
>> [LAUGH]
>> And
>> So the story really is,
it's not necessary to be number one,
but we have to know how to get there.
And I think that's what this is about,
this is about how we pull each other
across that goal line, and
how we help each other.
And just giving to questions, it's
going to take, there's a lot of interest
here, and conveying lots of different
groups and making us as successful.
Thanks again to Rupert and
to Dean Levin for
also for convening and hosting us here.
And I also want to thank in absentia
President Mark Atessie Levin.
One of the things our former
president John Hennessey said
This is very important.
It's so important that there's
should be no other place
that this kind of effort should
take place other than Stanford.
And Rupert talked about education.
This educational institution pulls
people in from the communities and
that's what give us strength.
So, let me just introduce
My colleague here who is currently on
the Board of Trustees at Stanford.
He is originally from Las Cruses,
New Mexico, anybody know where that is?
Okay, it's a suburb of El Paso, Texas.
No, I'm just kidding.
[LAUGH] No, I'm just kidding you.
But very close communities
at work together.
But friend has had an incredible career,
he went to Stanford, studied econ,
and then went to law school at Stanford
and has had a very storied career.
As an attorney he worked as
an appointee by President Reagan,
and the Department of Labor.
He is one of the pre immanent
employment lawyers in this country.
And so it was important for Fred to come
here and at least Tell us a little bit
about what this means to Stanford
as his role as a trustee.
So please welcome Fred Alvarez.
>> [APPLAUSE]
>> [LAUGH]
>> Las Cruses is really the bedroom
community for El Paso, Texas.
>> [LAUGH] If you could drive 40 miles.
Hector, thank you so much.
I won't take much more of your time.
It's been a great morning.
But I have to say that when you hear and
see the results that we saw today.
It's hard not to get inspired
by the possibilities.
It's hard not to see the upside for
all of us,
not just the Latino community but
for all of us.
If we can leverage
the entrepreneurship that's alive and
well and a part of the Latino community.
Just a quick thought,
I have to think and I thought about
this morning, my grandfather in Mexico,
he scraped together what little he had
to open a little, tiny grocery store.
It didn't even qualify to be a corner
grocery store because it was so
small, probably the size of this stage.
And as hard as he worked,
as long as he spent at it,
it wasn't ever going to
get Any bigger until,
unless and until he got someone to invest
in it, which, which he never could.
I think we've heard about the same
sort of spirit in our community, but
we're running up against the obstacles
about getting more invested in it.
We've heard about the spirit that,
that the Latino community has, and
that untapped upside potential.
And I submit that,
that potential is accretive.
It's not deductive.
If we can invest in this community,
they'll come up with things that
we didn't even know we needed.
They'll serve needs that
currently go unmet.
So like my grandfather if we
could just find a way to unlock
what that contribution can be.
So I say thanks to the Stanford Latino
Entrepreneurship Initiative for
showing us what's possible.
Thanks to the Graduate School of Business,
its faculty and its alumni for
providing the platform for
this great and important work.
It's hard to imagine a place that
understands and supports and
reimagines entrepreneurship
better than the GSB.
You add to that the work that this
conference,it shows that there's a real
commitment and a real interest in
the diversity of our business community.
So those things are operating here.
And so when you put those
together,we start to see how
empowerment of the Latino business
community can be achieved.
And it can be achieved right here.
An important way that Latino
business community serves everybody.
It serves everyone, all of its customers.
It serves all of its employees.
And so for everyone empowerment,
the empowerment strategies we're
talking about here is really a win-win.
So on behalf of the university, I want to
thank you for help making this case to us.
It's a compelling case, and
thanks for making it here
where it deserves to be made.
We're proud of your work, and we're
excited to see what you come up with next.
So thank you very much.
>> [APPLAUSE]
>> Thank you Doug.
>> [APPLAUSE]
>> Great, thanks again, Fred.
I appreciate your comments, and
I appreciate the support of the University
and of the GSB specifically.
With that, what I'd like to do is,
before we forget is to thank the folks
that helped put this together.
So first of all for the for both
the circle staff under Wendy York Best as
well as the CES staff under Deb Whitman,
wherever Deb may have joined and
their staff that is here to make
this work so thank you very much.
It wouldn't have happened without
your help and your support.
Along with that is also
the staff that's also here
to make all of this happen again I
appreciate everyone's hard work.
You might imagine the hours
that go into this and
the hard work that helps
make this possible.
So again, thanks to the folks
that are doing the real work
rather than folks like myself that have
to remember how to put a tie on again.
So with that, one last thing I
want to do is Is just close by
reminding everyone that the day
that we showed today, I think is
very instructive of what the opportunities
are and what some of the challenges are.
And that's great to do because you've got
to have a data to know where you need to
direct your efforts and then be able to
measure the results of those efforts.
But the other piece I'd also
like to mention is the education
portion of what we do here because
that's where we get to see it live and
in action,
that's where we get to see the results.
And that's where, quite frankly, my job's
the best, because I get the great and
the warmth and the feedback from
the attendees that come through this and
we can see the impact that we have.
The impact is with part of the GSB
that wants to change people,
change organizations,
and change the world.
Well I can guarantee you,
when you go through the program,
you can see from the results
is that we're changing people.
And we're changing those organizations,
and
I'm leaving it up to them
to help change the world.
So thanks to everyone for
their help today and their attendance.
Again what I'd also like to
do is just welcoming you,
you got some refreshments outside.
We'd love to continue conversation
with you so don't run off just yet.
I ask you, can I ask real quick?
For the folks who've gone through this
whole program the hold up their hands.
So, for those who haven't take a look at
some of these folks and ask them about it.
I challenge you to do that.
I want you to understand what
they think about the program, so
its not just me talking about it.
So again, thank you very much and
we will see you next year.
[MUSIC]
