Haley, Lend for America

Reblogged from TU Changemakers:

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Hola Changemakers! My name is Haley Burns and I am rising sophomore studying International Relations, International Development and a minor in Philosophy.  This summer, I will be interning at The Capital Good Fund in Providence, Rhode Island. This Lend for America-affiliated microfinance institution works to give small loans and training to local and low-income business owners. My time at The Capital Good Fund will not only give me real-world experience in…

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Millennial generation at it again. This is an interesting read for an up and coming social leader on her campus. Check it out!

The definition of value in business

What is it that drives our economy? Do shareholders and profits make the world spin?

I think there is a trend in caring about social returns as opposed to just capital returns. I understand that a measure of a healthy economy and healthy business is primarily monetary. Profits, dividends, ROI, gross income, net loss etc etc. Profits allow companies to pay their employees, provide benefits (which is more capital going to benefit providing companies) and give them a 401(k) (this also employs people). Keeping people employed  keeps people happy.

So, people need to put food on their tables, gas in their tanks, and a roof over their heads. Without profits we cannot run business and when business collapses we have major issues. This is primarily the case for very large employers, since start ups often start up and fail (or succeed) in a relatively short time frame. But if a big company fails, lots of people are out of jobs. When people are out of jobs they can’t feed their children, pay their mortgage, or get to work anymore. A deadly chain reaction that. This  is why our economy had Quantitative Easing. Keeping businesses afloat was a priority for the government. When a business like Ford or Wachovia begins to fail a panic looms in the near future. The idea that “too big to fail” spreads. We aren’t really sure what would happen if big companies fell. Could this be another chain reaction except on a macro scale? Had the Fed let these businesses fail, who knows what could have happened.

How did our economy get here? What was the result of the 2008 crash? The result is that our financial system is very unstable. The United States has been in a bear market since 2008 and investor confidence is shaken. Not only is our system unstable but it is also mind-numbingly complex. When major investment firms can “invest” on whether or not sovereign debt in Greece will be paid or not we have an issue. There is no inherent value in this transaction. I see this as gambling.  Now I’m not saying that all complex financial situations are bad and I am far from being an expert in finance. Buying commodity futures could give a competitive advantage to an airline or food distributor. I just do not think a financial system that places huge sums of money on whether or not someone is going to default is good for our economy.

Hypothetically, you and I bet 100 dollars on our neighbor Bob. You think that Bob isn’t going to be able to make any of his payments and he will be foreclosed in 6 months. His mortgage is underwater and he just got cut down to part-time work. I think he will be able to make payments but only after 6 months. We shake hands.

Have we just created value in the economy? Have we produced anything? Have we created an advantage somewhere? Just my two cents (For a better understanding and an expert view, read something by Joseph Stiglitz. He’s a smart dude).

Now take the financial transaction of Delta Airlines buying oil futures for the next five years at 100 dollars/barrel.  They believe they have better information than the other airlines and they just know that oil is going to skyrocket in two years. For any financial transaction there are two sides of the coin. Delta buys the futures believing prices of oil will go up in the future, and the seller whoever it is sells the futures believing oil prices will fall. Because the market is zero sum one will win and one will lose. If Delta wins, they can provide cheaper flights and sell more tickets. If they lose, maybe they have to shrink their business and cut employees. This type of transaction is essential to capitalism. Inequality and liquidity are essential elements to capitalism.

Now, we have all heard the saying “One in the hand is worth two in the bush”. Having money in hand is valued way more than having a lot of money somewhere else. This is how our boy Bernie Madoff played so many organizations. In his case one in the hand was worth twenty in the bush. He was so successful because he appealed to the human desire of more, more, more. When we begin to make profits the end-all be-all to business we start to deviate from how business should be run.

Yes, profits are hugely important but I emphasize a focus on business that has a “triple threat” of returns. A focus on profits, environmental sustainability, and social returns (social responsibility and giving back to the community). Social returns are very difficult to monitor and evaluate, and a lot of businesses throw it in the “too hard to deal with” basket. Regular profits and numbers are a lot easier to deal with. Quantifying the efficacy and value of investing in programs for development in your community is much harder to quantify. If we are going to be a global community we need to start thinking a little harder about how business is run.

If I had a 100 dollars….

What would I do with it?

I could fill up my tank 2 1/2 times @ 3.40 per gallon. My car gets around 35 mpg and my tank is about 12 gallons. So with 100 dollars I can drive  about 1050 miles. So I can drive from Washington D.C. to New York and back twice, or drive to Miami once. I could also go back and forth to work for about a two and a half months (10 mile commute one way). I might believe that I can earn money to get myself to go to places. My 100 dollars goes to Safeway (they have the best gas prices).

I could buy an outdated pair of Jordans. If I was in middle school or high school these shoes would probably be uncool. I might be mocked by my other friends who have the newest pair of Jordans. My brother would probably borrow them without asking, get them dirty and I would get angry. I might believe that money can’t make me cool. My 100 dollars goes to Nike.

I could donate 100 dollars to church/mosque/temple. I know that God loves a cheerful giver and giving to philanthropic events is the right thing to do. My money might go to paying the heating bill of the building, or feeding homeless people on Thursday nights. It might go to paying the clergies salary. I might believe that money could do something to make the world a better place (You can also get a tax write off for all you cynics). My 100 dollars goes to a religious organization.

I could take 100 dollars and put it under my mattress for a rainy day. Bankers might get mad at me. Greece might cry “Bank Run”. I could feel safe that I have something of value under where I rest my head at night. I know that in my time of dire need I could buy myself food for a couple of days or pay one bill. My 100 dollars goes to myself.

Gelemseyer miner and me in Prestea,Ghana.
Photo courtesy of Natalie Lampert.

I might donate to a non-profit like Kiva. They are a micro lending organization. I could provide four 25 dollar loans to some of the poorest people on the planet. They could make loans to help people bring themselves out of poverty (The efficacy of microfinance is a subject of heated debate). They might prevent the man like the one next to me in this picture from working in squalor to feed his family. These men work in makeshift shafts that are anywhere from 80-140 feet deep with sketchy support at best. These mining shafts collapse occasionally, resulting in the death of anyone unlucky enough to be caught in it. My 100 dollars goes to some of the world’s poorest.

Having 100 dollars is a really nice luxury. Most of us don’t really blink when we spend that much. We might cringe if our tab came to that, and I might be a little blown that my Sperry’s cost that much but all in all, it’s gone as easily as it came. Where has your latest 100 dollars gone?

Mine has gone to the following:

1) $105 dollars on car insurance. But my last discretionary spending was on some drinks with friends, chicken nuggets, books from amazon, and a tank of gas.

So, how about you?

You’ve got that one thing

So I just heard this new song by the new modern day boy band – One Direction. Here’s the link.

I was oddly intrigued by this song and began to think about cultural taboos against boybands (random right?). Only teenage girls between the ages of 10-19 can like boybands. Oh yeah, college girls too and also young professional women as well. Actually we’ll just include all women.

But why is it that men can’t openly enjoy boy bands? We can enjoy Led Zeppelin, Pink Floyd, DJ Tiesto, maybe some Christ Tomlin (He’s a Christian artist). But liking N’sync, Backstreet Boys, Justin Bieber, One Direction, or basically any other “boy band” is major uncool for teenage guys, and even more uncool as boyz become men. Why?

My first thought is that it’s just so uncool to like teeny bop music. But that still doesn’t explain why I instantly lose credibility in my taste in music from everyone I know. Maybe because the poppy music doesn’t align with my more sophisticated taste in music, like amazing Robert Plant guitar riffs or amazing 30 minute spins by Armin Van Buuren. Or my individualized experience with Indie Bands at Cats Cradle in downtown Carrboro, NC. So it’s not cool because it’s different from what I like? That could be one reason. It’s not cool because a bunch of barely-hit-puberty teenagers are millionaires and it’s unfair? Possibly. But the real reason why I really, really don’t like the band One Direction, is because it’s expected by people that I know that I don’t like the band One Direction. There is something fishy going on here…

I don’t like boybands because it’s uncool, boybands are uncool because my friends will harass me mercilessly for liking them, therefore boybands are uncool because my friends will harass me mercilessly. It’s just the cost of liking boy bands is way way too high.

For the record, I for one am not a gigantic advocate for boy band music. However, I draw an argument from my British friends- Just because something is uncool (Because of social pressures among other reasons) doesn’t mean it’s actually uncool.

Social pressures may say that it is wicked uncool to donate your time to the poor because you are not 1) Advancing your career 2)Hanging out with your friends at the latest bar/club/concert 3) Able to feel comfortable around people who have so little.

Whatever the reason is for doing a certain thing, I invite you to reflect on daily actions. Even if it’s only for five minutes in the car. Reflect on why you listened to that song on the radio. Reflect on why you spent 45 minutes on Facebook at work. Reflect why you’ve got that one thing that you are ashamed you like. Think about it. But don’t think about it too much, just five minutes.

Changing the workplace – A look at Millenials

Our generation – Gen Y or Millennials are shifting the workplace. At some point in our lives we ask, what are we doing? Is my work meaningful? When I die, will I have lived a life worth living? Am I going to spend my life working the 9-5?

Credit: ourfantasyworld.blog.com

The answer for many of us is (I hope) no. We are a generation interested in shifting the idealism we were taught into action. Making difference in your community and around the world is easier today than it has ever been in all of human history. Quite a claim, I know. But VC firms like Greylock and SAP no longer have exclusive access to the plethora of great ideas that are being funded. Crowdfunding is becoming more popular and enables every entrepreneur to pitch their idea. Anyone can now have multiple dog-and-pony shows and pitch it to the greatest investment bank ever, the American middle class.

The U.S. government has been collecting taxes from the middle class for a long time, and it represents the greatest amount of capital available for any entity. Johnny Joe the entrepreneur wants to create a sustainable aquaponic system in DC. Pitch it to the middle class via one of the social mediums. Mark Zuck, a very famous millenial, pitched his service to the American public last Friday. Albeit, he did have some help from Bono, Russian steel tycoons and Silicon Valley firms but the idea remains the same. Obtain capital in the beginning from others who can believe in an idea. To believe in an idea is so important at the beginning stages of any start-up. Have the passion to stick with it until the end. Fight for it, tooth and nail even if it means eating Ramen and sleeping on a cot.

So what does it mean to be an entrepreneur? Think outside the box! Everyone, I repeat, everyone can be an entrepreneur. You can be innovative in any workplace. Whether it be a start-up like FFR Trikes which focuses on transportation that is less reliant on oil or a well-established non-profit vaccinating children in need. Don’t just sit around and hope for a raise. Help increase attendance to a company event by being creative in your marketing campaign. Think of a way to create a better “best practice” in the human resources process. Experiment. Fail. Failure is just another way of not succeeding. Imagine if success was instant all the time? We would be in trouble. Failure is essential to growth and maturity and it definitely feeds the soul. The path to success is consistently littered with obstacles. Here’s a look at my cookie cutter path so far:

Work hard in high school, get a good GPA (4.0), get a good SAT score (1200 – this was pretty average), get into a good college (Elon University), graduate with a degree (B.A. 3.3GPA), secure a good job (At least I have one), advance through the corporate ladder (Get a pay raise), advance more through the corporate ladder ( Get another pay raise), die (not there yet either).

I know that sounds a little cynical, but Millenials are looking at work differently. The 9-5 is encumbering. For young people, the time is now. The time isn’t tomorrow. We are leaders today. The recession has shown that no longer can a generation accept the traditional models of how work is done. With job security falling ( I even hear of teachers unable to get and keep jobs), we need to create value in our work wherever we go. We need skills that are valuable across all sectors (accounting, html5, database management to name a few). We may be idealistic to an older workforce, but there is value in being young. Young people don’t see the walls preventing innovation. The perspective is different. It is fresh. Vibrant. Colorful.

Get out and start innovating friends.

P.S. Congrats to Elon University class of 2012!!

Communication – Tips on relating

Dear Blog,

So I finally decided to take my writing on-line. For those of you who know me, I have kept a journal since the beginning of my sophomore year of college. These journals were often free-writing allowing me to express whatever I felt like. Sometimes I would write about my experiences, other times I would write short stories about some girl who used to collect shells and sell them on the shores of some made up country. Other times I would write about non-fiction topics like a piece on how to spot liars or how the brain processes thought. However, the purpose of this blog is to inform and educate people and encourage others to take action. I shall start off with a skill I think is increasingly important on helping others.

Communication. This cannot be overlooked. I think throughout my time at college as I was constantly fine-tuning my communication skills. I was talking to kids my own age, talking to professors with varied experiences and administrators whose professional careers have almost always been academia (I apologize in advance for this generalization). I think that most of my communicative growth was just a natural response of my ENFP, type 1 personality and my time at college. However, this is not entirely true. Communication can definitely be learned. It just so happens that college is  amazing for learning because it brings people together from such varied backgrounds.

Being able to relate to people of every different creed, race, height, and ethnicity is  important in our ever increasingly complex world. As the world shrinks languages, cross-cultural communication, and weak ties are vital to achieving social change.

So how can we be better communicators? How can we speak to people on their level? Here are a few pointers I think could help.

A) Listen.

I don’t know how many times I’ve heard this. Before formulating what you want to say during the other persons’ senten.. – don’t. Just don’t formulate what you want to say, don’t react. This is particularly difficult for me because I love to chat and relate so much. To sharpen this skill of listening, sometimes at work I simply do not say anything during a conversation unless directly asked a question. I soak up as many details as I can and then try to recall them a few minutes later.

B) Pay attention to non-verbal cues that you send.

I think that people are inherently good at reading others. We tend to mimic others that we like. We might mimic a new acquaintance we really like at the bowling alley (since everyone goes bowling now a days) or turn away from the person who is uncomfortably staring at us. We often communicate non-verbally what we are thinking and other people know what you are saying even before you say it. I’ve even heard that married couples start to look like each other after three or so decades. They like each other so much that they end up looking like their better half! That’s pretty crazy. Any who, all of this is to say make sure to pay attention to your body language. The next conversation you have pay attention to the non-verbal communication that’s going on and see if any of it bothers you are comforts you.

C) Take advantage of weak ties and acquaintances.

We are what we consistently do. To become better communicators we need to be social. Try and meet two new people a week. What does meeting a new person look like?

- Smile at the person standing next to you in line at Starbucks. Comment about the coffee /water/juice/your favorite barista/how you’re broke (maybe not the last one).

- Instead of plugging in your Ipod on the metro (which signals you aren’t interested in talking) comment on the weather to the person next to you. Strike up a conversation on the most recent Arab Spring/financial crisis/book you read. Notice your body language when sitting beside someone  and when you are sitting across from someone.

- Make eye contact! Making eye contact is so important in meeting new people. When I work on my eye-contacting skills (I call it a skill because it is) I try various things. I try visualizing a triangle from their left eye-right eye-forehead or an upside down triangle from right eye-left eye-mouth. I always had a problem doing the thousand mile stare through people. Lots of tiny movements with your eyes helps smooth the facial recognition out.

Now how does implementing any of these ideas make you a glocal citizen? By getting socially involved in your community. That acquaintance at work? Invite them to church/temple/mosque/book club/hang out with friends. A group setting takes the edge off the social pressure. The person you chatted with at Starbucks? Ask if they’d like to join you at the yoga studio or weekly volleyball game you go to. In the end the more people that we touch in our everyday lives, the greater our social network, and the greater our social network the better we are at solving social problems ( I know these are loosely correlated but just bare with me). So get out there and try something new! Meet someone new! Do something new! We’ll all be the better.