Friday, October 25, 2013

Better Opportunities in the Corporate Sector

I'm in New Jersey for some training, so I will post two news events for consideration:

1) The Securities Exchange Commission, which regulates the financial sector, has finally voted to allow small companies to offer stocks to potential investors. As part of Obama's JOBS Act to help small business owners thrive, the SEC will now pass rules to help small businesses offer shares of ownerships to microlenders who may not otherwise invest in large corporations.  It is an extension of the crowdfunding rave, which connects small investors and small businesses to raise money for entrpreneurship. This gives small businesses the opportunity to grow and have access to more capital. There are conditions and exceptions, but this is a step in the right direction for anyone looking to invest in growing companies. The new rules will allow small businesses to circumvent the strict procedures surrounding the sale of securities larger companies are bound by and make it less costly to raise much needed cash. To learn more, visit the SEC's site at http://1.usa.gov/1a4uQZy

2) Twitter has been in the news lately, and not as a headline grabber. The company announced plans to finally go public and has been working to raise money to offer its first set of stocks to the public. As expected, everyone is comparing this IPO to Facebook's experience last year, when that company went public. Where Facebook's potential earnings were questioned, Twitter is being scrutinized for its hiring strategies. That's right. Apparently, there are no women serving in high positions at Twitter and it has everyone irritated. Now the debate has reached a new level: should a company be expected to hire women to fulfill gender representation? The company argues that it's tough getting women on high seats at a tech company. There are just not enough women working in the industry to choose from. Critics are arguing that the company should hire women anyway. While they raise good points, hiring should never be about getting any employee for a job to meet a quota. Companies thrive only when they are managed by the right people, not just by any person - regardless of their gender. What this means is that the tech sector needs to ban together and work with communities to recruit more women into tech positions. Another solution is to change recruiting strategies and look beyond technical skills in potential hires. Having the relevant expertise is key, but there are other leadership qualities that can help Twitter through its transition into the corporate world. The good news is this uproar will now force other companies to examine their own hiring strategies, which means better opportunities for women. Bad news is that Twitter should expect this debate to impact its stock offering. 

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