Small-Busines Bankruptcies Rise: What Drives Business Success—or Failure—in Emerging Markets

According to the article below, business bankruptcies appear to be increasing, which is something worth watching closely going forward. As more businesses are started, closure rates naturally rise as well—most new ventures do not survive their early years, and that is a normal part of the business cycle. There are also well-established economic theories that explain these boom-and-bust patterns in business development. The market constantly changes so small business adapt the best they can through the cycles. A rise and change in trend could indicate other things are going on.

Conference Board Boom and Bust

Business Life Cycle

Illustrative only.
Aron knows that much of his business
success comes from finding
the right start up location. He also
knows that if he keeps learning about
business and adapting while
keeping an eye on unnecessary 
expenses he can match
market need while 
making a strong profit. 

He works with some of the other
businesses on Ludington St. to  enhance
the downtown environment
and community because he has experienced
that his business is part of a network
of other busineses in the area. 

One key area of focus should be retaining businesses beyond their first few years so they can establish viable structures that support sustainable growth. A business may begin with a strong product or idea, but it must eventually develop a repeatable and profitable process that meets market needs. It doesn’t have to be large-scale or mass-produced, but it does need to deliver enough value for customers and generate sufficient returns to remain financially viable.

Rising costs can place pressure on businesses to adapt and make changes to improve efficiency. In some cases, this can be a healthy exercise that leads to better operations and leaner processes. However, when cost increases are rapid or structural—affecting inputs that cannot easily be reduced—bankruptcies become more likely. This is why factors such as inflation, infrastructure, taxes, and tariffs are so important to business survival.

From a theoretical perspective, business clusters can create efficiencies by sharing inputs, talent, and infrastructure, which can lower costs for individual firms. Certain environments naturally attract startups, and when those businesses are supported and connected to export markets—either nationally or internationally—overall wealth can increase. Entrepreneurial hubs often resemble startups themselves, experiencing cycles of experimentation, failure, and eventual stability as they mature. (In theory one might call this Perpetual Sustainable Development which furthers Creative Destruction concepts. If the environment is right it will continue to rejuvenate more cycles. It is just an idea so feel free to discard. This blog is about ideas.)

Government decision-making plays a significant role in shaping these outcomes, particularly through policies that influence costs, regulation, and legal frameworks for business development. When decisions balance economic realities with broader societal needs, they can foster more stable and sustained growth. Markets also exert pressure, requiring businesses and policymakers alike to adapt. Pressures are applied on all levels of governance from local to national creating the business environment and climate. Together, these forces shape the foundational conditions that determine whether a particular location is conducive to starting and sustaining successful businesses. If you find one then consider starting a business there. 

Small Business Bankruptcy Up

Sunset Isle Painting: To Soon Be Lost to the World!

Some type of sunset

I paint a little on the side purely for the joy of learning and the process. I’m not the world’s greatest artist—probably not even the best within a mile—but I am out here painting, which feels important (ok maybe not). If you’d like this piece, it’s available for $40 via PayPal (link below). Free shipping, because I’m generous like that. 😆

If you don’t buy it, it will eventually be painted over and quietly disappear from existence, like a forgotten civilization. Please consider its feelings.

Sunsets have fascinated people for centuries. I’m drawn to the water, and sunsets are a reminder that nature operates on its own schedule, completely indifferent to our plans. We live in nature and are part of it—though we often forget that, especially when scrolling indoors.

Sunset Isle Painting. 

Social and Economic Development is a Little Like Team Rowing (The Story of the Clan)

Isaac thinks of ways
to teach people about
the core values of society
and how economics
and root value
 assumptions relate.
Creating thriving communities.

Correcting wrongdoing is essential to the healthy development of any organizational system (Different shapes, sizes and purposes). It generally doesn't make much of a difference the type. The same is true for societies built on shared values, a sense of purpose, and expectations of fair treatment and exchange. To explore this concept, consider the story of the clan. It helps formulate how hate and corruption may lack sufficient checks and balances and how to better protect future victims as well as encourage communities/socieities to thrive. The issue is less about the individual actors and more about general response and capacity; like a stress test that points to a brighter or slightly darker future. You fill your own glass so half full or empty is up to you.

The story of the clan is a philosophical thought experiment that examines what happens when justice defaults—when systems fail to function as they should. Large groups of people, a judge and a couple of rogue officers knew about misbehavior and engaged in coordinated wrongdoing because of influence of a social network and unwritten expectations of institutional outcomes filtered through a lens of hate. In this scenario, the failure of justice leads to significant harm inflicted on families identified as “out-group” members, regardless of race, religion, or political affiliation (Any "ism" can go too far including clannism.). Because the mistreatment is highly coordinated and patterned, it suggests that others may have been victimized in similar ways in the past. A wider issue of entitlement bullying and intentional mean spiritedness that seems to have special priviledges others don't get. No correction occured and the risks continue forward....

The perpetrators have no legitimate reason to hate out-group members. Instead, they have formed a kind of insular, cult-like social network inner members struggle to think independently (The fish in the fishbowl that may not see any other fishbowls. Consumed by their own social world.).  The victims were convenient scapegoats and a pathway to enrichment of friends through threats and intimidation suggesting a possible alternative type of citizenship with less rights (greed, bigotry and identity are tied together so this is why corruption and hate are often associate around the same latent issue(s). of projected self.) . A type of maladaptation of not only the people stirring the pot but also those who listen without critical thinking or outside anchors/perspectives. If you sort of look at this group with squinty eyes you may see the markers of Plato's cave of mental slavery where their lack of broader knowledge limits their internal knowledge (Some of used the word cultish. Exploring the Cult in Culture.)

You can actually feel a little sad for such groups....they don't know what they don't know.....

Society's sometimes create checks and balances to ensure such groups do not bend or warp the purpose of law or institutions for personal gain. For the most part, anytime bad behaviors occur on a group level and there is no correction or accountability we find biased and distorted views that have dehumanized others by fostering a perception of lower inherent value (i.e.slavery, hate crimes, and collective mistreatment all come from the same dark line of thinking and exclusion.). Since this appears to nearly always been destructive in society it helps to foster a sense of wholeness and togetherness by the way we interact and encourage the highest possible expectations of institutions along with those we trust to run them. If a group of wrongdoers are engaged in wrongdoing, even if we may not like this or that,  we have a collective interest in fostering certain foundational rules. As a metapher, if a good rower is thrown off the boat for inappropriate reasons not tied to merit/performance then the entire team will suffer. Races will start to be lost. Maybe more will start to fall out as well. We can't run a team by a high percentage of free riders who say they know alot but accomplish little (people who are not pulling their weight). 

Representing lots of people 
who are rowing together and
have enough motivation
to show up.

High performing teams work
together and pull the whole
team up.

The silver lining in our learning story is that many people at the community level understand the difference between right and wrong and begin to encourage higher moral standards (The vast majority of people outside the cultish clan seem to agree that the group has caused problems at various places and times. Most just childishness but sometimes they step way beyond that into something else. Literature has shown that in Game Theory eventually the perpetrators lose when people catch onto selfish or manipulative play. We have an inherent need to treat each other fairly so when it smells stinky it likely is stinky. Always try and do the right thing). As trust returns, economic activity and investment increase. With that growth comes a renewed sense of vitality and hope—more jobs, improved public spaces, and greater care for the community as a whole. The short and long tail of doing right over wrong. When people choose what draws us together through our shared values (i.e. unity) and reject what drives us apart, they create social patterns that can impact economic patterns (It is all just choice. Neural economics. ☝). It is the shared values that build a society and it is those shared values that create transactional activities that lead to social/economic exchanges and growth (In Theory: Economic Needs Feel free to reject that idea as well. It is just for philosophical purposes anway.💁).

The lesson is clear: doing the right thing often requires persistence even in the face of coordinated wrongdoing. The principles should be protected and this is why some may stand for what is right and why some default (decorative values to get them what they want). It requires people with real dense bedrock values that are not like dust in the wind. That is why when obvious wrongdoing is uncorrected despite its knowledge it is a sign of who they feel they serve and their value systems. Upholding certain shared values increases those who also believe in the very definition and purpose of society. Not all leaders are qualified for their roles nor are they the best that society can bring forward (High levels of vetting based on special interests may be limiting the candidates and the voices that can improve decision making leading to environments where defaults like this occur). Strong intuitive leaders help provide pathways to broad based needs fulfillment around shared values and oaths.  Wrongdoing must be challenged to ensure constant alignment to unifying values—principles that reflect generational to generational unfinished societal work that will make society's unbeatable as a single team rowing in well polished unison and propelled forward by purpose (If you don't trust that a leader understands that sacred duty or they don't have the capacity to correct wrongdoing then vote them out and find someone more capable.). No other team will catch up to a team like that where the best of the crew's skills and abilities are brought forward. We are all in this ship together so a general suggestion is for people to start rowing together. Failing us all for some is going to make us weaker. I hope we know where we are going....

What Makes People Think That an Action is Morally Wrong?

*This is a philosophical thought experiment so feel free to change around the elements and come to your own conclusion. 

The Three Components of Effective Training: As they relate muscle fatique (Fitness Training)

 

Effective training relies on three major components:

1. Physical stress,

2. Nutrition, and

3. Recovery.

Setting nutrition aside for the moment—generally higher protein intake and plenty of vegetables—we can focus on physical stress and recovery. Physical stress involves pushing the body to new levels through activities such as cardio and weight training. Recovery, in turn, allows the body time to heal and adapt to the stress placed on it. Workout and recovery rely on each other.

There is ongoing debate about whether it’s better to train muscles to complete fatigue or to stop just short of that point. For individuals who pursue multiple skills across sports and physical activities, training slightly below full fatigue often produces better results. One reason is that these individuals use their bodies through a wider range of motion, where coordination, control, and functional strength matter more than pure muscle bulk.

Nick the Squirrel realizes
that if he wants to stay competitive
in his sport of dropping acorns on 
cars along Lake Shore Dr.
he will need to
train all his muscles and 
eat sufficient protein
for recovery.

Last year he beat out all the squirrels
from Odged to compete against
squirrels in Gladstone, Rock, and 
Rapid River in the
Nut Dropping Olympics.

It’s also not always practical to train to full fatigue in every workout and still expect high performance in daily activities. Full fatigue often requires longer recovery periods. I’ve experienced this myself and found that if your goal is to use your body for a variety of physical tasks, your training approach needs to differ from that of someone focused solely on maximizing muscle size. I will get many more reps in the activities I do then simply at the gym alone. (It might not look like a six pack at first but under that layer of chub is sculpted work of art. Just use your imagination. 😏)

Full-body workouts with complex, compound movements are often better suited for tactical or functional strength training. One would want to mix in traditional weight training to build the bulk muscles and the complex movements to get the stabalizers and functional muscles. The ultimate goal for sports people should be improving coordination, range of motion, and strength across muscle groups that support real-world actions—such as throwing, kicking, running, or swimming.

Workouts designed around these goals naturally differ in structure, and recovery times may be shorter when using broader movement patterns rather than isolating muscles to exhaustion. For this reason, it often makes sense to avoid full fatigue if you plan to stay physically active the following day. Taking a long-term approach also helps reinforce muscle memory alongside refined strength development.

I hold a fitness trainer license, yoga and additional certifications. If you’d like help building a routine tailored to your specific goals, fitness training advice, or basic nutrition guidance, feel free to reach out and we can set something up virtually.

I also came across the piece below, which I found particularly interesting, as it explores fitness concepts related to training to fatigue in greater depth. It is important to read from a variety of experts because each person has learned something a little different. 

Training to Fatigue? Rethinking Limits for Muscle Growth and Strength

Auto Extrication for Firefighters: B Post Blowout or Full Side Removal (Firefighting Techniques)

Watching videos like these helps build practical, hands-on knowledge. From time to time, firefighters must extract victims from vehicles, and the Jaws of Life are a critical tool in those situations. Because vehicle designs vary widely, knowing how and where to cut can make a significant difference in how safely and efficiently someone is extricated. The more you learn, the more you know, the more help you are and the more lives saved.

I especially like this video because it demonstrates how to remove an entire side of a vehicle when necessary. This approach can be essential when the door frame has been crushed and standard openings no longer function as intended. While some people have extensive experience with these tools, it’s important for more individuals to learn how to use them effectively.

Consider getting involved with your local fire department. One department is bucking the trend of declining participation and has attracted many young volunteers, while others continue to struggle with recruitment. IIt could be a model. If you’re interested in supporting a fire department in Michigan’s Upper Peninsula in obtaining an updated electric set of Jaws of Life, please reach out to the right and I will point you in the right direction. Donations are tax-deductible.

Ethical Leadership and Institutional Performance (Example 1: The Clan and Example 2: Organizational Performance)

 Leadership and sound judgment play a critical role in the development and performance of organizations and institutions. Every organization operates with defined goals and directives, often formalized in a mission statement. That mission should serve as the guiding framework for decision-making at every level. The quality of leadership—and its genuine commitment to that mission—has a direct impact on employee performance and organizational outcomes.

Joe recommends
a few good books
for those who want to 
develop leadership traits
and build strong organizations
 and institutions.

It is worth considering whether poor employee performance often reflects a lack of leadership commitment to the stated mission. This applies equally to private companies and public institutions, including those responsible for justice. Where there is a deep, shared commitment to core values, performance tends to be higher. Where that commitment is weak or inconsistent, performance usually suffers.

Consider two examples.

Example One:
An organization needs to compete in the global market but consistently misses its growth projections due to poor leadership and nepotism among elite circles. Favoritism and unethical behavior send mixed signals, leaving employees uncertain about expectations and priorities. In such an environment, it becomes difficult for individuals to act in ways that advance the organization’s mission. Establishing clear expectations, reinforcing ethical standards, and rewarding merit-based performance aligned with the mission would likely improve outcomes.

Example Two:
In a more serious philosophical thought experiment, good officials are forced to work alongside corrupt ones, creating a fragmented and dysfunctional environment. A change in leadership begins to shift attitudes, gradually restoring trust and improving performance for everyone. In this example, a “clan court” held biased views, arbitrarily dismissed human and civil rights, and engaged in backroom agreements that intentionally harmed victims, witnesses and whistleblowers while enriching in-group members. These implicit values shaped an environment in which corruption, bias, and extremism were normalized as long as the targets were dehumanized enough. They were unable to muster the moral conscious to correct wrongdoing.

Representing decorative values.
They sparkle in front of others
but just don't drop one because
they are made of glass.

This is why the phrase “walk the talk” matters. A mission statement must be more than lip service. While the relationship between leadership values and performance is not always immediately visible, it can be studied, measured, and understood. Unwritten norms often override written policies, and sustained leadership commitment is essential for long-term success. Without it, some individuals will inevitably come to believe they are above the mission and above ethical accountability (Some actually may be).

Such individuals will always exist, which is why leadership selection must prioritize ethical integrity and genuine commitment to the organization’s mission. Generally you also also need some levels of checks-and-balances. In both examples, improved performance followed changes in leadership and a realignment of processes around core values.

Mission statements should never be decorative. If they exist merely to look good, like ornaments on a tree, they fail their purpose. Organizations must either appoint leaders who are truly committed to those missions or revise the missions themselves if they no longer reflect meaningful or relevant goals.

The Paradox of Trust: How Leadership, Commitment, and Inertia Shape Sustainability Behavior in the Workplace

Feel free to discard or find your own examples. 

Salute to Vienna New Year’s Concert (San Diego)

It was once said, 
"Music is a moral law.
It gives a soul to the universe,
wings to the mind, flight to the imagination,
 a charm to sadness, and life to everything."
Plato

I attended the Salute to Vienna New Year’s Concert at the Jacobs Music Center, and as always, the sound was far better live. The arts are something society truly needs more of. Music and dance take years of dedicated practice, and they connect us deeply to our human nature.

The choreography was strong, and there was a spectacular fouetté solo that really stood out. The Jacobs Music Center is spectacular in its design. 

You can find more information on the Salute to Vienna New Year’s Concert on their website.

More broadly, connecting to our historical and cultural roots matters. Every culture has its own forms of dance and artistic expression, developed within social settings for a reason. Understanding their deeper purpose helps us appreciate how humans have long used art to express, relate, and connect with one another.

San Diego Symphony