Tuesday, January 22, 2019

Identifying Opportunities in Economic and Regulatory Trends


1.     Economic trend: Global aggregate demand is gaining momentum
b.     I believe this means that an opportunity exists because consumers are finally showing signs of increasing spending after years of recovering from the financial crisis in 2008. Greater spending means greater opportunity for new goods and services.
c.     The protypical customer is someone living in a developed country (e.g. US, EU, Japan) with disposable income. The article also mentions the emergence of China’s middle class which is creating a consumer society in China. In this case, members of the Chinese middle class would also be protypical customers.
d.     I think this opportunity is relatively easy to exploit. Basically any entrepreneurial idea for a new good or service would work in this case.
e.     My attention was immediately drawn to the information about China’s emerging middle class and what that could mean for American exports to China. I am majoring in economics and political science, so watching this shift in Chinese society is particularly interesting because of its repercussions on Chinese demand for foreign goods and services.
2.     Economic trend: Baby Boomers are not retiring
b.     This suggests an opportunity to me because there is a two-fold effect: (1) Baby Boomers are saving more for retirement thus staying in the workforce longer and (2) Millennials entering the workforce are being forced to abandon the traditional “career track.” The second part is what presents an opportunity to me because Millennials are looking for alternatives to the office jobs being occupied by Baby Boomers.
c.     The protypical customer is a Millennial looking for a more freelance contractor style of work.
d.     This opportunity is a bit more complicated to exploit. You would have to come up with a business plan that appeals to the Millennial generation being kept out of the traditional workforce by Baby Boomers.
e.     I think I saw this opportunity because my parents are currently in the position of the Baby Boomers described: forced to work a few extra years because of the hit their savings took during the 2008 financial crisis. I had never considered what that meant for young people entering the workforce.
3.     Regulatory change: The Clean Water Act was amended in 2018 to allow municipalities to develop a plan that integrates wastewater and storm water management.
b.     This could present an opportunity for improved water management technologies, including environmentally friendly approaches.
c.     The protypical customer would be the local government that controls water management in an area.
d.     This opportunity would be difficult to exploit without prior knowledge of water management or connections to local government officials. However, an innovative idea for how to handle wastewater and/or storm water could succeed.
e.     I love nature and the outdoors, so I am concerned at the impact humans are making on our planet. Since this regulation encourages the use of green technologies, I see it as a great opportunity to improve water management systems and help the environment at the same time.
4.     Regulatory change: Sales tax will be enforced on e-commerce purchases as of 2018
b.     This presents an opportunity for CPAs and other tax professionals because small online businesses will need support in this transition. Large corporations will also need more tax professionals helping them navigate the new rules. Online sales tax could become a new specialty within the tax profession.
c.     The protypical customer would be an individual looking to expand his/her career in helping corporations manage tax laws.
d.     This opportunity would be difficult to exploit for someone not familiar with tax processes. For someone who is already in this field, it could be useful.
e.     I am an avid online shopper, so this regulation affects me personally which is why I was interested in the impacts it could have.

2 comments:

  1. Beatriz,
    I really enjoyed reading your post. I liked how this assignment made us identify problems that don't just affect us or our community, but entire countries. I agree with you that the regulation of sale tax on e-commerce purchases will present an opportunity to accountants. This is something I would not have thought of. I think that being able to look at things on a global scale is a great characteristic to have as an entrepreneur.

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  2. Hi Beatriz,

    I found the article about The Clean Water Act to be the most interesting. As I’ve grown older, I’ve become more environmentally conscious and want to do my part in making this planet cleaner for future generations. I think this act will point us in the right direction. This will also require entrepreneurs like ourselves to come up with unique solutions to implement this plan. I truly do believe we as a nation are starting to take environmental issues more seriously and am excited to see what we will come up with in the next decade or two.

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