The following global forces are reshuffling which and how enterprises win, he says:

  • Rapid change provides a huge premium for innovation. A more dangerous world hurts trade and growth and boosts risk a lot, he says. “In this environment, farmers who innovate will be highly rewarded.”

  • New food, new markets and a consumer focus on fresh, local authentic quality food spell opportunity. “Old markets don’t work to deliver the products consumers want today,” Drabenstott says. “Processed food from commodities delivered yesterday represents an outdated model. Today, food is all about choice and freshness.”
  • Weaker economic growth, more volatile markets and historically low interest rates are disincentives to save (money) and invest.
  • More U.S. businesses have been dying than being born recently.  The overburden of regulation has stifled innovation at a time when it is needed most.  Even the biggest companies are struggling to keep up. “Three-quarters of the current Standard and Poor’s 500 companies will be gone in 13 years,” he says. 

 

U.S. business deaths and births
There are now more businesses dying each year than starting, says Mark Drabenstott, digital commerce executive, Federal Reserve veteran and global economist. The marketplace pays a premium for new, innovative forms of business, he says. “The future belongs to those who innovate, doing better things.”