Entrepreneurialism, to me, is the miracle of creating value out of nothing, a business from a blank sheet of paper, a product from a daydream, careers out of thin air. It’s creativity, combined with courage and a vision. It has a short memory for pain, and a long one for the thrill of seeing ideas become reality. And entrepreneurialism isn’t always where you expect to find it.
Sisters, Oregon, is a town of about 1,700 residents, named after three volcanic peaks nearby, rising over 10,000 feet each. Nestled in the Willamette Forest, this mountain village appears to the average summer tourists (me and Cheri) like the bucolic, sweet-smelling places we imagine of the Old West. One would not expect to find the tenacious, urgent bloom of entrepreneurialism here.
Thirty-four years ago, Ann Richardson turned her love of quilting into one of the largest quilt festivals in North America. Each year, over 30,000 quilt enthusiasts come to Sisters in July, to compete, compare and celebrate the art and craft of quilting. And these quilts are not your average blanket made of fabric scraps, which was the reason quilts were done originally, i.e., to turn pieces of cloth that would otherwise be thrown away into a new blanket when you couldn’t afford to buy a new one. Or you were nowhere near fabric stores. Like in the middle of the Willamette Forest in 1880.
Ann’s idea was to bring together the artisans, the instructors and the suppliers in one location. She built it over the years to become the most financially important factor in Sisters’ regional economy. The week-long event creates a market that generates approximately $21 million, estimated by applying an average vacation spend of $100 per day per person. It’s more likely in excess of that rate, if you take into account the follow-on spending from business transactions occurring after the event, resulting from relationships or contacts made during the festival. You wouldn’t think that a non-profit organization could produce this type of cash impact, would you? The Sisters Outdoor Quilt Show proves that entrepreneurialism is a state of mind, not a particular legal form of operating.
The event is funded through sponsorships from dozens and dozens of businesses, vendor fees, program fees and grants from public agencies who are applying tax dollars to amplify economic benefit in the region. Ms. Richardson and her daughter receive income from their work. And the complete support of the entire community.
So this lone entrepreneur, in a small mountain town of no great repute, decides that her little spec on the map way out in the middle of a sparsely populated rural state should be the center of the quilt universe, drawing nearly 200 times the permanent town population to it each summer. And then she makes it happen. One year at a time, starting small and building slowly until the fire catches and people are reserving hotel rooms a year in advance. This is the spirit of opportunity that created the most successful socio-economic system in the history of the world, i.e., the United States. It is the spirit and spark that must be fanned, now more than ever, if this country is to evolve into its next form of success.
After World War II, the U.S. was the only one of the Allies or enemies that hadn’t experienced attacks on its home soil. Its infrastructure was intact, and its manufacturing capabilities unparalleled. The U.S. at that time was the world’s largest producer of raw materials and finished goods, and it was also the largest consumer. This went on for decades, until around 1971-72, when we first began importing some of our consumed oil. In the nearly four decades since that point, we steadily declined as a producer, while continuing to consume at a rate five times that of the rest of the world. But recently has the U.S. returned to being an exporter of fossil fuels and one of the largest oil and gas producers in the world.
Our gross domestic product has risen dramatically, but the dollars generated are two-thirds from services, not from materials and goods. As the economists will tell you, services can only exist when they can be paid for through reliance on the value created by materials and products. If no one digs ore, grows food or turns materials into goods, then no one will want tax advice, financial advice, legal advice, their windows washed, their homes cleaned, etc.
As the standard of living increases in places like China, India and even Africa, the buying power will steadily transfer from the U.S. to these other regions. Right now, China is on track to being the next nation that holds the crown for being the magnetic center of capitalism, since it already is the biggest producer and will be the biggest consumer in the future. Already, GM is selling more cars in China than in this country. If the U.S. no longer dominates the demand side of the equation, supply will go elsewhere. Our economic future will be dependent upon our own ability to create value through materials and products. That will take creativity, innovation and an entrepreneurial spirit. It will take many more people like Ann Richardson, of Sisters, Oregon.
I found one other example of that spirit while Cheri and I hiked the hills around Sisters. As we prepared to leave, I saw a red pickup drive by with a sign on the side:
“J.T. Spencer: Investments. Handyman”
I love this country.