Old News on Startups

Jump-Start Job Creation through Startup Businesses

Pittsburgh Post-Gazette (Pennsylvania) October 3, 2010 Sunday

While most believe that small businesses drive the economy, a recent study from the National Bureau of Economic Research showed that the biggest contributor to net job growth isn’t small businesses but new businesses, more specifically, startup firms. Business startups accounted for all of the net new jobs created in the U.S. between 1980 and 2005. Older and larger firms create jobs, but they also eliminate jobs through layoffs, plant closing, and bankruptcies. Pittsburgh has gone from one of the most entrepreneurial places to one of the least. It has one of the lowest rates of startup businesses compared to other regions.

 

Silicon Valley economy more diversified

Contra Costa Times

Silicon Valley’s startup culture is much more diversified than it was before, spread out across a broader range of high tech. This makes it less vulnerable to a bubble burst, according to the BLS. Only 1 in 6 high tech firms from 2000 still exist. But those that did survive, doubled in size. The companies now are a lot more stable and profitable.

 

Helping Small Businesses Survive, Succeed

The Maryland Gazette

Hollis Minor is a business counselor for the Maryland Small Business Development Center. After owning four businesses of her own, she offers advice on loan packaging, business and marketing-plan development, strategic planning, and earning certifications. Of the businesses she consults, 40 percent are startups and 20 percent have been hard hit by the economy and struggling. The other 40 percent are looking to get to the “next level.” She attributes the number of startups to layoffs that forced workers to become entrepreneurial.

 

I feel like these local stories on startups mirror the kinds of stories that might work in Athens. Downtown Athens is filled with local businesses and is also home to the tech incubator, FourAthens.

Business/Downtown Interview

I did an interview with a local pharmacist named Joe Smith at Horton’s Drugs. Horton’s Drugs is a locally owned pharmacy in downtown Athens. In the business world, there has been a price hike in Epipens, a life-saving injector used for those with severe allergies. I worked on localizing the story for the Red&Black and did an interview with a pharmacist downtown.

 

me: Hi. I just want to know about Epipens. I read recently that Epipens are getting quite expensive. Over the last decade, people have seen a 400 percent price increase. I was wondering, since you’re a pharmacist, if you could comment on that.

Smith: We’ve seen people who have gone away empty handed because they couldn’t afford them, and that’s unusual with medicine. There’s nothing else in that segment. There was another pen called…are you familiar with that?

me: yeah, there’s a second producer but there was something wrong with the mechanism so they dropped out of the market.

Smith: It didn’t work right so, so yeah it’s been very disappointing. What other kinds of things are you looking for?

me: Actually, something like that. Could you tell me about the alternatives? I heard epinephrine itself is not very expensive.

Smith: It’s not. It’s getting it in a sterile formulation that you can eject.

me: So is there an alternative?

Smith: Well certainly you can get a vial of it and draw it up and inject it yourself but that wouldn’t be useful if you’re going into anaphalactic shock. You need something that’s easy to carry around and easy for a stranger to use.

me: So it’s not like you could not have an Epipen and just wait to call an ambulance?

Smith: No no. It certainly isn’t. I’d say that any patient that’s allergic to bee stings with insurance that doesn’t cover the Epipen is in danger by these high prices.

me: Are insurances not required to cover Epipens?

Smith: Well they are. And so there was an alternative for a little bit, Auvi-Q, the one with the mechanism that didn’t work…the manufacturer gave out coupons because they thought it was important to keep their prices more affordable with a competitor on the market. But since the recall occurred, they haven’t given out any coupons. Insurances just need to cover one of them, and a lot of them just cover Auvi-Q even though they’re off the market now.

me: Okay

Smith: Inspite of insurance reform, not everyone has insurance. There are people who come in, can’t afford it, and so they walk away.

me: wow. So currently there are no coupons that they can use?

Smith: Not unless they have one of the old ones.

me: Okay. At this current time, in Athens, about how much does an Epipen cost? I looked online and some of them are like $600-$800.

Smith: Well, um. You know, we’re an independent pharmacy so our prices are set locally. They’re based on what we paid our distributor. Which is what they pay their manufacturer. So our prices are a little bit different from other pharmacies. We are able to sell them for close to $300.

me: really? So Horton’s sells them for like $300, but CVS is selling them for $600, $700?

Smith: That’s right.

me: So is it Mylan that’s doing this? Or is this the pharmacy? Because you’d expect them to have lower prices because they’re buying them in bulk.

Smith: Well, they’re selling them in bulk too. If someone is already steered toward CVS by their insurance or they’re out of town and don’t know where to go, then they’re gonna buy the Epipen from that store. CVS has a huge marketing…I don’t want to say scam, but CVS has a huge marketing budget and that marketing is paid for by drugs like Epipens that are being sold for twice as much as we’re selling them for.

New York Times- Business Day Vertical

As someone who is very much interested in writing business/financial news, Business Day, from the New York Times might be one of my favorite verticals to follow. More than just reporting the stock market like a horse race, this vertical explains larger market trends and makes them relevant to the general population. Often times, the writers make typically hard to understand or “boring” business issues more interesting by centering them around a particular subject. It might be a family affected by the recession, a young couple selling their house in a recovering housing market or a student that’s worried about the rising cost of higher education. When it comes to writing business news for the general public, a lot can go wrong. Sometimes writers use too much jargon to the point where readers can’t keep up. Sometimes, they fail to make the story relevant to their audience and readers lose interest. Other times, writers fail to grasp the general business concept themselves, misinterpreting numbers or concepts that are vital to understanding the point of the article. I feel as though keeping up with this particular vertical can give me a lot of pointers and new techniques so that I can be a more effective business journalist.

New York Times- Modern Love

Though my interests have changed, sometimes going through phases: tech, business, fashion, etc. I have consistently followed the New York Times’ Modern Love vertical. The Modern Love column of the paper moves away from breaking news and politics. It becomes much more personal, and strikes a chord, especially with millennial readers who navigate new relationships and a new world of technology. The Modern Love vertical offers a snapshot into the lives of young lovers.

Through the years, several stories have stuck out to me. One talked about the complications that can come with navigating a new relationship and new type of relationship. It explained the nuances of having an open relationship. Another, focused on the fairly new phenomena of “ghosting” that occurs in the dating world. After communicating extensively with social media, sometimes the other person just disappears and stops responding. The piece did a great job of capturing the confusion and humiliation that sometimes comes with this experience. There is no closure.