Social | Outsourcing | Founders' Review Editorial

Society comprises both traditional and growth industries. Traditional industries are characterized by flat or fluctuating share prices, Ivy League hiring practices, and debt financing. In contrast, growth industries are marked by higher risks, equity financing, and exponential increases in share prices. Interestingly, the leading growth companies act as educators, aligning and enhancing the skill sets of their employees.

Link of the day.
GPU rental from top VCs. Here.

Link of the day.
Growth is pricing. Here.

Link of the day.
The next candidates of private closed door investment. Here.

So how is growth built? It's not easy. A primary obstacle is the income distribution curve within societies. Typically, this curve reveals high inequality, with steep growth at the top ten percentile and especially at the top one percentile. We also noted that an average citizen might expect the opposite - a fairly flat curve at the high-income end with steep growth on the lower end. This discrepancy highlights what we call the "eye of the tiger," representing the potential for growth.

The core issue lies in communication and the flow of information. Every time you attempt to sell something to a company that doesn't respond or politely delays the discussion, you hit a wall at the edge of the eye. The same happens when you receive a low return on investment from digital marketing spending. Companies either lack extra funds or prefer to save them for later. They're satisfied with their current state and perceive growth as risky.

The clear solution is to continue what you're doing when you have a high income or substantial wealth. If you don't, you need to build your own economic circles. This means that laws should protect your ability to do so against the monopolies of high earners. No marketing loopholes should artificially increase your spending, laws shouldn't introduce barriers to do business, and licensing should allow banks to expand lending.

Sometimes the banking system isn't suitable for growth. Periods of quantitative tightening are such times. You need to find companies willing to engage in discussions about growth. Because growth is risky, companies will likely outsource it, opting to spend only when necessary.

This means you can approach traditional companies with management consulting outsourcing contracts to cut their costs, since their revenues are quite flat. Their employees have stable incomes and don't want to jeopardize them. Data scientists and artificial intelligence models can secure contracts in this way.

Growth companies will likely outsource hiring and recruitment. They expect to increase headcount, making it a lucrative business for recruitment firms that need scale. Often, these firms are linked to schools that try to get you to sign exclusive agreements to hire solely from them. Hiring companies may obtain a consistent skill set from candidates, not risking the quality and cohesion of existing groups. Those who fall out can seize the "eye of the tiger" opportunity and found a competitor. Often, skill differences are just a professional book away from one another.

Ultimately, the growth of the economy relies on both the demand and supply sides. Increases in efficiency of traditional companies result in layoffs and growing margins. This expands the labor supply, allowing additional capital to fund extra employees for growth companies to jump on the exponential train.

If a society misses any of the phases - ”productivity improvements, restructuring, quantitative lending, or labor migration” - growth will suffer. Only long-term educational changes can train a new group to build their own circles, and licensing, antitrust laws, and intellectual property regulations can prevent further building.

The path ahead is clear. Extra GDP requires a buy-in from both traditional and growth industries in terms of success rate, risk, insurance payments, exchange rates, and interest rates.