business research articles

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Model-based financial regulation challenges for the net-zero transition

Current model-based financial regulations favour carbon-intensive investments. This is likely to disincentivize banks from investing in new low-carbon assets, impairing the transition to net zero. Financial regulators and policymakers should consider how this bias may impact financial system stability and broader societal objectives.

• Matteo Gasparini
• Matthew Ives
• Eric Beinhocker

Latest Research and Reviews

A new commercial boundary dataset for metropolitan areas in the USA and Canada, built from open data

• Byeonghwa Jeong
• Karen Chapple

Model-based financial regulations impair the transition to net-zero carbon emissions

As the financial system is increasingly important in catalysing the green transition, it is critical to assess the impediments it may face. This study shows that existing financial regulations may impair the shift of financial resources from high-carbon to low-carbon assets.

• Matthew C. Ives

Compound Matrix-Based Project Database (CMPD)

• Zsolt T. Kosztyán
• Gergely L. Novák

The role of midstream actors in advancing the sustainability of agri-food supply chains

Global food supply chains drive ecosystem degradation and social injustices. This Perspective focuses on the ability of midstream actors operating between agricultural commodity producers and manufacturers of food products to improve supply chain sustainability.

• Janina Grabs
• Sophia Carodenuto
• Emily Stone

Optimally generate policy-based evidence before scaling

To reduce voltage drops—the depreciation of the cost–benefit profile when scaling up solutions to social problems—sufficient policy-based evidence must be generated before policymakers scale up the project.

• John A. List

Corporate social responsibility and individual behaviour

Aguinis et al. review the literature on corporate social responsibility (CSR) at the individual level of analysis and propose a framework for organizing research around three categories: CSR perceptions, CSR attitudes and CSR actions.

• Herman Aguinis
• Deborah E. Rupp
• Ante Glavas

News and Comment

The potential of DAOs for funding and collaborative development in the life sciences

VitaDAO funds longevity research through a blockchain-based decentralized autonomous organization (DAO), showcasing the potential of collaborative, transparent and alternative systems while also highlighting the challenges of coordination, regulation, biases and skepticism in reshaping traditional research financing methods.

• Simone Fantaccini
• Laura Grassi
• Andrea Rampoldi

Growing demand for environmental science expertise in the corporate sector

Growing awareness of environmental risks and mounting regulatory and consumer pressure have driven unprecedented demand for environmental science expertise in the corporate sector. Recruiting skilled individuals with academic backgrounds and fostering collaboration among businesses, research institutions, universities and environmental professionals are vital for enhancing environmental knowledge and capability in companies.

• Alexey K. Pavlov
• Daiane G. Faller
• Jane E. Collins

Can non-profits beat antibiotic resistance and soaring drug costs?

Effective, affordable antimicrobial drugs aren’t moneymakers, despite being desperately needed. Can non-profit organizations pick up the slack?

• Maryn McKenna

Why we should think about more than cash when seeking to eradicate poverty

Catherine Thomas’s research explores different approaches to alleviating poverty, including cash transfers and psychosocial programs.

Scientists question cancer tests that use microscopic nematode worms

Some doctors say a troublingly high number of cancer-free people have tested positive on the tests sold by a Japanese start-up.

• David McNeill
• Momoko Suda

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Unnecessary organizational burden: a conceptual framework

This paper investigates the mechanisms that lead organizations to impose unnecessary burdens on their actors. The prevailing narrative in the literature is that unnecessary organizational burden (UOB) is created ...

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Impact of green technology and energy on green economic growth: role of FDI and globalization in G7 economies

With the increase in economic growth, the world is facing serious challenges concerning environmental sustainability. Hence, the green economic growth is imperative for sustainable and inclusive development. T...

A proposed multidimensional model for predicting financial distress: an empirical study on Egyptian listed firms

Although there has been a growing interest by researchers worldwide over the past decades to identify the factors pertaining to corporate financial distress and to develop financial distress prediction models ...

Indian voters’ attitude and behavior toward a political brand for producing green products: a mediation model

This study explores the attitude–behavior relationship among voters for political party brands that use a sustainable or green marketing approach. A structural equation modeling is used to analyze data collect...

Measuring countries relative efficiencies in using development assistance: a data envelopment analysis approach

Despite the presence of a considerable corpus of literature investigating the impact of aid on nations' development, the efficiency of utilizing this finite pool of development finance remains ambiguous. The m...

Systematic literature review using PRISMA: exploring the influence of service quality and perceived value on satisfaction and intention to continue relationship

This study aims to develop a systematic review of the influence of Service Quality and Perceived Value on Satisfaction and Intention to Continue the Relationship from an international and empirical perspective...

Does work–family conflict lead to abusive supervision in the construction projects? The role of project commitment and psychological resilience

Drawing on conservation of resources theory, the study aimed to investigate the relationship between work–family conflict (time-based, strain-based and behavior-based) and project manager abusive supervision i...

Integrating agency and resource dependency theories: the moderating effect of board size on the relationship between dividends and firm value in Malaysia

This paper aims to examine the moderating effects of board size on the relationship between dividends and firm value in Malaysian settings. The theoretical foundations of this research were the integration bet...

The differential impact of distracted auditors in managing portfolio of financially distressed audit clients on audit quality: the role of professional skepticism

This study hypothesizes that distracted auditors affect audit quality. As a result of resources scarcity, auditors pay more attention to financially distressed audit clients rather than non-financially distres...

Uncovered interest rate parity phenomenon and determinants of domestic interest rates: an analysis of Pakistan and China economies

The core objective of this article is to explore the viability of uncovered interest parity and to reconnoiter major determinants of domestic interest rates of the Pakistan and China economies. It is imperativ...

Post-COVID-19 and global FDI inflows and outflows in emerging economies

Brand authenticity influence on young adults’ luxury sneakers brand preference: the mediating role of brand image.

It is of interest to examine how consumers perceive luxury brands with the different elements of authenticity, leading to brand image, for companies to create and build a brand that is conducive to influence p...

Effects of employee engagement on organizational performance: case of public universities in Ethiopia

The objective of this research is to examine the impact of Employee Engagement on Organizational Performance within Public Universities in Ethiopia. It aims to explore the relationship between employee engagem...

Ties that bind: exploring corporate networks, decision-making dynamics in the financial market, labor-management relations, and organizational performance

Corporate governance relies significantly on the board of directors, who act as custodians of shareholders' interests. The dynamics of social connections between Chief Executive Officers (CEOs) and board membe...

Understanding the impact of human capital on radical and incremental innovation: the role of entrepreneurial passion and alertness

The present study sought to comprehend the impact of human capital on radical and incremental innovation, with a focus on examining the mediating effects of entrepreneurial passion and entrepreneurial alertness.

Examining the global influence of e-governance on corruption: a panel data analysis

This study analyzes the impact of e-governance on corruption using a panel dataset comprising 110 countries over the period from 2003 to 2021. The specific focus of the research is on the relationship between ...

Striving for a life out of shadows: informal entrepreneurial dynamics in time of crisis

Motivated by the unique opportunity that a crisis period provides for capturing and reassessing specific entrepreneurial behaviors, this paper takes on the debate about the entrepreneurial attributes of inform...

Impact of financial distress on the dividend policy of banks in India: evidence using panel data

The study primarily aims to examine the impact of financial distress on the dividend distribution policy of banks operating in India. Panel data analysis was performed using a static model to investigate the i...

Bitcoin adoption in online payments: examining consumer intentions and word-of-mouth recommendations

Online retailers in emerging markets like South Africa are adopting Bitcoin payments. This study explores factors driving consumer adoption and word-of-mouth (WOM) recommendations for Bitcoin in online transac...

The moderating effect of dividend policy on the relationship between the corporate risk disclosure and firm value: evidence from Egypt

This paper investigates the effects of corporate risk disclosure (CRD) and dividend policy (DP) on firm value (FV) for non-financial companies listed on the Egyptian Stock Exchange. Using a sample of 45 non-fi...

The impact of board gender diversity on the accrual/real earnings management practice: evidence from an emerging market

This paper examines the impact of gender diversity on financial reporting quality (accrual and real earnings management). We use a sample of 78 Egyptian listed companies over the period 2009–2021. The quality ...

Emerging trends in social media marketing: a retrospective review using data mining and bibliometric analysis

The study conducts a comprehensive retrospective analysis of the social media marketing literature along with text mining and bibliometric analysis using data obtained from the Scopus database. The analysis is...

Market volatility and crisis dynamics: a comprehensive analysis of U.S., China, India, and Pakistan stock markets with oil and gold interconnections during COVID-19 and Russia–Ukraine war periods

The objective of this paper is to explore the interconnectedness of volatility among the stock markets of U.S., China, India, and Pakistan in conjunction with oil and gold markets. Employing the novel Time-Var...

The impact of climate risk disclosure on financial performance, financial reporting and risk management: evidence from Egypt

Where Egypt stand with climate related-risk disclosures and why stakeholders and organizations require such information? This research aims to measure the climate risk disclosure level in Egyptian companies an...

Corporate social responsibility marketing; a way to firm performance; an empirical study: case of Egypt

This study aims to clarify the impact that CSR marketing has on the firm performance. Benefits of Corporate Social Responsibility Marketing Activities Employed by Companies Explored through Website, Google Sea...

Correction: Systematic review and research agenda for the tourism and hospitality sector: co-creation of customer value in the digital age

The original article was published in Future Business Journal 2023 9 :94

BOD characteristics and their impact on the link between ESG disclosure and integrated reporting disclosure quality: a study of Egyptian non-financial firms

This study examines the impact of environmental, social, and governance (ESG) disclosure on integrated reporting disclosure quality (IRDQ) and the moderating role of board of directors (BOD) characteristics. P...

Exchange-traded funds and the future of passive investments: a bibliometric review and future research agenda

Passive investments such as exchange-traded funds (ETFs) provide an opportunity to invest in indexes, asset classes, and sectors with low maintenance costs and high transparency. Today ETFs dominate the world,...

Examining the relationship of career crafting, perceived employability, and subjective career success: the moderating role of job autonomy

Career crafting has emerged as a significant construct in the field of career development, with the potential to significantly boost individuals’ overall work satisfaction. This study aimed to examine whether ...

The impact of IT governance and data governance on financial and non-financial performance

This paper aims to examine the impact of both information technology governance (ITG) and data governance on information technology (IT) performance in the telecommunication industry. A questionnaire of 308 ma...

Achieving customer loyalty during post-pandemic: an asymmetric approach

The study aims to investigate causal recipes to improve restaurant customers’ loyalty (LOY) during COVID-19 post-pandemic. The study utilizes Fuzzy-set Qualitative Comparative Analysis (fsQCA) within the frame...

Using artificial intelligence for hiring talents in a moderated mechanism

Globally, artificial intelligence (AI) occupies a burgeoning space among recruiters as it replaces many of the recruitment and selection tasks while hiring the talents. Despite the existence and acceptance of ...

Interrelationship dynamics between stock markets of nation under debt crisis and its major trading partners: evidence from Sri Lankan crisis

A series of crises triggered over a decade may bring global recession, which may impact millions of investors, including countries teetering on the brink due to forex reserve shortages; this study addresses th...

Impact of recapitalisation and dividend payout policies on financial sustainability of rural and community banks in Ghana

The study examines the effect of bank recapitalization and dividend policies on the financial sustainability of rural and community banks (RCBs) in Ghana. Data from 135 RCBs from 2011 to 2020 revealed an avera...

Building telework capability in the new business era for SMEs, using spherical fuzzy AHP methodology for prioritizing the actions

Working types are one of the main issues affected by the turbulences in today’s business life and should be handled carefully. Telework is developing in the shadow of information and communication technologies...

A systematic review of gender diversity and its impact on the performance of Microfinance Institutions

This study aims to consolidate the available knowledge on gender diversity and its impact on the dual performance (social and financial) of Microfinance Institutions (MFIs). We specifically focus on MFIs due t...

Does corporate governance spur bank intellectual capital in an emerging economy? A system GMM analysis from Ethiopia

The current study aims to explore the impact of corporate governance (CG) mechanisms, as measured by board size, board meeting frequency, board gender diversity, number of board subcommittees, board remunerati...

Public health expenditure and household poverty: case study of Egypt

The insufficient and inefficient public expenditure on health services by any health system creates physical and financial barriers to using health care services, especially for poor people and uncovered infor...

The impact of ambidexterity on robotic process automation implementation strategy in service enterprises

Robotic Process Automation (RPA) has gained increasing significance in recent years. RPA leverages software bots to automate repetitive business processes traditionally performed by humans, making it one of th...

Evaluating the impact of self-service cash deposit machines on the performance of commercial banks in Tanzania

This study aims to evaluate the impact of utilization of self-service cash deposit machines (SSCDMs) on the financial performance of Tanzanian commercial banks, focusing on key parameters like capital adequacy...

Determinant of credit risk of Islamic banks in Pakistan

This study aims to investigate the influence of macroeconomic variables and bank-specific factors on the credit risk of Islamic banking in Pakistan, through the panel data regression tools. The statistical too...

Online environmental platforms service and green consumer behavior nexus: a multi-mediator study

Green purchase behavior in Pakistan faces challenges due to lack of awareness, limited availability, and greenwashing by companies that demand use of online environmental platforms. The study aims to examine t...

Allocating budget in developing countries, the need to fight corruption: evidence from Sub-Saharan African countries

This paper highlights the need to fight corruption in developing economies to ensure a better allocation of public resources in a context of institutional failure with the discretionary power of budgetary auth...

The dynamics behind private banking growth in Egypt

The research investigates the determinants of private banks profitability in Egypt. The determinants are bank specific (liquidity, capital adequacy, bank size, asset structure, credit risk, and non-performing ...

Trust in the chatbot: a semi-human relationship

Today, the use of chatbots for different functions in various industries has become a very interesting business for companies. Chatbots are promising types of interfaces. It is therefore necessary to understan...

Emerging new themes in green finance: a systematic literature review

There is a need for an extensive understanding of the emerging themes and trends within the domain of green finance, which is still evolving. By conducting a systematic literature review on green finance, the ...

Exploring the General Data Protection Regulation (GDPR) compliance in cloud services: insights from Swedish public organizations on privacy compliance

The adoption of cloud services offers manifold advantages to public organizations; however, ensuring data privacy during data transfers has become increasingly complex since the inception of the General Data P...

Banking sector development and environmental degradation in the Economic Community of West African States: do technology effects matter?

This paper contributes to the discussion on environmental degradation by exploring the connection between banking sector development and environmental degradation in the ECOWAS. In addition, we investigate the...

Measuring the antecedents of university students’ obsessive–compulsive buying behaviour of apparel: the mediating role of brand attachment

This research provides value to marketing researchers and professionals in regard to what triggers customers to purchase compulsively by studying the impact of materialism and self-congruence on the obsessive–...

Data mining twitter for COVID-19 sentiments concerning college online education

In the last decade there has been a large increase in corporate and public reliance on social media for information, rather than on the traditional news and information sources such as print and broadcast medi...

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Adapting the Curriculum for the Future of Business

• The University of Illinois’ Gies College of Business used the reaccreditation process to assess where it is now and identify strategies it will pursue in the coming year.
• The college is creating more offerings that are accessible online and that appeal to a wide range of tech-savvy learners who are looking for flexible learning models.
• The school also is investing in specialized faculty—some of them alumni—who possess deep knowledge in high-demand areas.

  Business schools are facing pressure to adapt to a rapidly changing business environment marked by technological advancements, globalization, and emerging high-growth industries. This requires us to take a critical look at how and what we teach.

To thrive in the years to come, business schools must find ways to reach new learners, meet them where they are, and deliver instruction that is more personal, engaging, and impactful than they can find elsewhere.

At the University of Illinois’ Gies College of Business in Urbana-Champaign, we recently underwent AACSB’s reaccreditation process. This experience gave us a chance to take stock of where we’ve been, where we want to go, and how we want to get there. It allowed us to reassess priorities, gauge our progress, and redouble our efforts. It also reinforced our belief that we’re headed in the right direction.

I think the entire business school community should consider taking a similar pause for reflection—whether as part of an accreditation effort or as a component of ongoing strategic planning. By identifying our strengths, addressing our weaknesses, and looking toward the future, we can collectively prepare our students and our institutions to thrive.

What We Learned

For the Gies College, reaccreditation provided the perfect opportunity for reflection and evaluation. In particular, it gave us clarity in four specific areas.

It showed us how our investments in strategic curricular innovation and management have paid off. In early 2022, we created a Content and Educational Portfolio Strategy unit charged with ensuring that our content is grounded in research and focused on learning objectives and outcomes. This unit has helped departments and individual faculty create materials that are based on learning theory and provide consistent experiences across courses. We are pleased with our results so far and plan to continue investing in this area as we roll into our next accreditation cycle.

It helped us identify challenges and opportunities. These include hiring and developing faulty, diversifying our mix of international students, and maintaining educational quality and meaningful networks in online programs. Because we offer extensive online programming, that last challenge is especially important for us. We know that online learners have very different educational experiences than traditional undergraduates, so we look for ways to make those experiences engaging and give alumni reasons to stay connected with our school.

It led us to consider how we incorporate societal impact into our strategic goals. AACSB encourages schools to select one or two areas of focus and measure the impact of their scholarship, programming, and engagement activities in these areas. While we believe many of the activities at Gies already have positive social, economic, and environmental impacts, we realized we could improve how well we set our goals and measure our results.

When we identify our strengths, address our weaknesses, and look toward the future, we can collectively prepare our students and our institutions to thrive.

It highlighted three key strategies we should follow in the coming year. We have determined that we must broaden the appeal and accessibility of our offerings, invest in specialized faculty, and embrace innovative teaching methods.

I believe, in fact, that all business schools could benefit from adopting these three strategies. Here, I outline the plans that Gies is making and offer suggestions for other schools interested in following the same path.

Creating Accessible Offerings

Today’s business school curriculum needs to appeal to a wide range of tech-savvy learners—from young adults to seasoned professionals—who are looking for flexible learning models that fit into their busy lives. We must meet them where they are. Nowadays, that could be online, on the road, or around the globe in their full-time jobs.

At the Gies College, we recognized this shift eight years ago and began diversifying our offerings beyond traditional on-campus degrees. We first directed our time and resources toward creating a more accessible offering with global reach, and we launched our online iMBA in 2016. To date, more than 5,600 graduates have earned an MBA through our online program, and 3,700 more currently are enrolled in the program.

We learned from this experience that there’s a nearly insatiable demand for all types of flexible, affordable learning. This realization inspired us to expand our online offerings to three advanced degrees; so far, these have served more than 5,300 learners from 97 countries. We’ve also launched 13 fully online graduate certificates and moved our business minor online to make it more accessible to all students on campus. This past year, nearly 3,000 University of Illinois students were enrolled in the business minor, up from about 1,600 students four years ago.

One of our key strategies has been making certificates and degrees stackable. This modular approach allows learners to test the waters of online education and use bite-sized chunks of knowledge to explore new interests and develop valuable skills.

My advice for other schools: Center your strategies on the evolving needs of learners. Determine what aligns with your institutional goals and how you can best serve the learners in your sphere of influence. By improving accessibility, you will be able to attract a much larger, high-performing global student population.

Capitalizing on Specialized Knowledge

As the business world becomes more complex—driven by a global workforce, new technologies, and evolving market dynamics—business schools must adapt their curricula strategically. This often means investing in specialized faculty and centers of excellence. At Gies College, we have found four ways to benefit from our deep knowledge in specific areas.

First, we had our Department of Accountancy appoint its first-ever specialized faculty associate head. Part of his job is to oversee 36 instructors who integrate real-world experience into the classroom. These instructors, many of them alumni, are long-time industry professionals who have come back full-time to teach. Classified as specialized faculty, these “teaching-first” instructors are critically important to the learner experience. Because they don’t have heavy research agendas, they can take on much larger course loads and make an outsized impact on our learners.

To navigate the changing business landscape, you’ll likely need to hire new faculty experts and adjust your curriculum, but that doesn’t mean you need to start from scratch.

Second, we launched the Gies Business Health Initiative, capitalizing on the research of our professors who focus on areas such as health economics, operations, and analytics. In their work, they have examined the impact of climate change on wealth and longevity, and they have developed a model to help physicians and hospitals better rationalize state-of-the-art surgical care.

Third, we established the Disruption Lab, which explores disruptive technologies such as blockchain, NFTs, virtual reality, and quantum computing.

Fourth, we began tracking how our faculty research aligns with our institutional goals. For example, we discovered that more than 70 percent of our faculty—including many tenured professors—conduct research related to the United Nations Sustainable Development Goals.

My advice for other schools: To navigate the changing business landscape, you’ll likely need to hire new faculty experts and adjust your curriculum, but that doesn’t mean you need to start from scratch to get in the game. Identify how your faculty’s current expertise aligns with emerging high-growth industries. Cultivate research excellence and innovation, and don’t be afraid to explore research areas that go beyond a business school’s typical topic areas. By codifying and branding these efforts, you can highlight the ways your curriculum anticipates major business trends.

And don’t hesitate to turn to your alumni for guidance and financial support. In our case, alumni have funded dozens of research grants over the last few years, including one that created the Gies Consumer and Small Business Credit Panel. This tool uses a dataset that combines individual-level data on small business loans, personal credit, and alternative credit to study topical subjects such as unequal access to financing by women and minorities.

Investing in Instructional Excellence

While it is essential to keep up with business and educational trends, we must be careful if we are simultaneously bringing in new faculty, expanding areas of expertise, and shifting to online learning models. We don’t want to create a mishmash of teaching methods and outcomes. It would be easy for us to be pulled in many different strategic directions, but we must maintain a laser focus on our collective goal—educating the next generation of business leaders.

One way we’ve prioritized instructional excellence at Gies is by expanding our Teaching and Learning (T&L) unit. This dedicated group provides expertise, advice, and support in instructional design, learning technologies, and best practices for teaching and learning. It helps faculty create new courses, certificates, videos, credentials, and other learning materials—taking them from course creation to delivery. The team also helps teachers structure courses in ways that mitigate test anxiety and make classes more effective.

It would be easy for us to be pulled in many different strategic directions, but we must maintain a laser focus on our collective goal—educating the next generation of business leaders.

In addition, the T&L unit provides a platform that faculty can use to explore innovative teaching methods and emerging technologies such as artificial intelligence. On the platform, faculty can find research on the impact of generative AI on online learning, information about scaling AI-powered feedback, and tips for developing an AI-assisted grading tool.

Many of our faculty already are exploring the possibilities of AI in education. For instance, Robert Brunner, Gies’ associate dean for innovation and chief disruption officer, is currently using AI technology to build his latest course on Emerging Technology and Disruption. Students in the course have the opportunity to learn from AI and understand how they can adapt it to advance their careers.

My advice for other schools: Recruit professors who have a passion for student engagement. At the same time, equip all faculty with the tools to excel in hybrid and online classrooms, and be certain that support is highly visible. Make it clear that a commitment to student engagement and an ease with technology can be factors in faculty advancement.

Innovating and Evolving

In summary, balancing strategic growth with a commitment to teaching excellence is critical to every business school’s success. By offering flexible, accessible learning models that cater to the diverse needs of today’s tech-savvy students, we can ensure our degrees and credentials remain relevant and impactful in the years to come.

Let’s continue to innovate, experiment, and evolve, meeting our learners where they are and empowering them to succeed in this dynamic business world.

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A look at small businesses in the U.S.

Most U.S. adults (86%) say small businesses have a positive effect on the way things are going in the country these days, according to a recent Pew Research Center survey . Small businesses, in fact, receive by far the most positive reviews of any of the nine U.S. institutions we asked about, outranking even the military and churches.

Despite their name, small businesses loom large in the United States. These businesses – defined here as those with 500 employees or fewer – account for 99.9% of U.S. firms, according to the Small Business Administration . While most of these 33 million firms don’t have paid employees, about 6 million of them do . They account for just under half of total private sector employment (46%).

As National Small Business Week approaches, here’s a look at small businesses in the U.S. and public attitudes about them, based on federal data and Center surveys.

Pew Research Center conducted this analysis to provide a glimpse into the state of American small businesses ahead of National Small Business Week .

In this analysis, “small businesses” are defined as employer firms with fewer than 500 workers. The analysis relies primarily on data from several Census Bureau sources: the Annual Business Survey (ABS), the Business Dynamics Statistics (BDS), and the Business Formation Statistics (BFS).

The ABS – conducted annually since 2017 – includes all non-farm U.S. firms with paid employees and receipts of $1,000 or more. Majority business ownership is characterized in the survey as having 51% or more of the stock or equity in the firm. The Census Bureau counts multiracial firm owners under all racial categories they identify with; Hispanic firm owners may be of any race. Read more about the  ABS methodology .

Data on the age of small business comes from the BDS. Data on the annual number of high-propensity business applications in the United States is based on the number of Employer Identification Number applications used for tax purposes and is not seasonally adjusted. Read more about the BFS methodology . Per capita calculations use state-level resident population data from the Census Bureau; estimates are as of July 1, 2023.

This analysis also draws on findings from recent Center surveys. More information on the methodology for these surveys can be found by following the links in the text.

There’s no single way to define a “small business.” Economists sometimes use the size of the establishment or firm, or turn to industry-specific size standards based on average revenue. For this analysis, we’ve used the U.S. Small Business Administration’s broadest definition: employer firms with fewer than 500 workers .

An establishment is a business with one physical location. A firm is a business organization that may have multiple locations (i.e., multiple establishments).

Just how ‘small’ are small businesses ?

Among the roughly 6 million small businesses with employees, 49% have just one to four workers, according to the latest estimates for 2021 from the Census Bureau’s Annual Business Survey (ABS). About a quarter (27%) have between five and 19 employees; 8% have 20 to 99; and just 1% have 100 to 499 workers. The remaining 14% had paid employees at some point during the year, but not during the March 12 pay period, which the ABS uses to determine employment size.

Overall, small businesses employed an estimated 56.4 million workers in 2021 and brought in over $16.2 trillion in revenue, according to ABS data. Perhaps unsurprisingly, small businesses with more employees tend to account for larger shares of overall revenue than those with fewer workers.

Who owns and runs small businesses?

Some small businesses are family-owned, but the vast majority are not. Among small businesses that reported this type of information for 2021, 27% were family-owned and 73% were not.

So-called “mom and pop shops” account for a relatively modest share of small businesses for which information is available. Overall, 10% of small businesses in the U.S. were jointly owned and operated equally by spouses in 2021. Another 11% were jointly owned by spouses but separately operated, with men more likely than women to serve as primary operators.

Franchises aren’t very common among small businesses. Just 5% of small businesses that reported this information were fully or partially operated as franchises in 2021.

In terms of demographics, men own a greater share of small businesses overall. About six-in-ten small businesses (61%) were majority-owned by men in 2021, while 22% were majority-owned by women. Another 14% were owned equally by men and women. (The ABS defines majority ownership as having at least 51% equity in the firm.)

Looking at small businesses where estimates of majority owners’ race and ethnicity are available, most (85%) had majority-White ownership in 2021. Smaller shares were majority-owned by Asian Americans (11%), Hispanic adults (7%), and Black or African American adults (3%). About 1% were estimated to have either American Indian and Alaska Native, or Native Hawaiian and other Pacific Islander majority owners.

Related: A look at Black-owned businesses in the U.S.

Despite owning small shares of these firms overall, many Black and Asian Americans see entrepreneurship as a marker of success, according to Center surveys.

For example, 30% of Asian Americans say owning a business is important to their own view of the American dream, according to a Center survey conducted from July 2022 to January 2023 . And 36% of Black adults say owning a business is important to their personal definition of financial success, with another 22% saying it’s essential , according to a September 2023 survey .

Still, Black and Asian Americans are more likely to place emphasis on other measures asked about in these surveys, such as owning a home, having a good family life and being debt-free, among others.

How old are most small businesses?

Many small businesses have stood the test of time. In 2021, the majority of these firms (59%) had been operational for at least six years, according to the Census Bureau’s Business Dynamics Statistics . This includes 15% that had been in business for more than 25 years.

On the other end of the spectrum, about a third of small businesses (35%) had been running for five years or fewer in 2021, including 9% that had launched in the last year. (The bureau could not determine the age of the remaining 6% of firms.)

How often do new businesses open?

Small businesses have reported financial and staffing challenges in the years following the coronavirus pandemic . But federal data reveals the staying power of entrepreneurship in the U.S.

The number of high-propensity business applications – those that are highly likely to turn into businesses with payrolls – remained relatively stable between 2009 and 2019, according to Census Bureau data . But the number of applications has risen since before the pandemic: There were nearly 1.8 million high-propensity business applications in 2023, up from about 1.3 million in 2019.

On the state level, places with larger populations saw the most high-propensity business applications in 2023. Florida (225,809) topped the list, followed by California (221,571), Texas (151,888), New York (131,206) and Georgia (80,403). But Missouri, Wyoming, Delaware, Florida and Colorado had the most applications per capita that year.

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Rebecca Leppert is a copy editor at Pew Research Center

Majorities of adults see decline of union membership as bad for the U.S. and working people

A look at black-owned businesses in the u.s., from businesses and banks to colleges and churches: americans’ views of u.s. institutions, 2023 saw some of the biggest, hardest-fought labor disputes in recent decades, older workers are growing in number and earning higher wages, most popular.

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Restoring sight is possible now with optogenetics

People suffering from macular degeneration, along with other diseases that impair sight, may soon benefit from gene therapy

As a child, Max Hodak learned to develop film in a darkroom with his late grandfather who was almost blind.

Hodak’s grandfather had retinitis pigmentosa, a congenital disease that affects one out of every 5,000 people — more than 2 million worldwide. Most people with the condition are born with their sight intact. Over time they lose peripheral vision first, then central vision, and finally, their sight, sometimes as early as middle age.

“He clearly had this career and was a photographer, and I saw that,” Hodak said of his grandfather, who became an aerospace engineer and briefly worked on heat shields for spacecraft. “But most of my memories as a kid was that he was pretty profoundly blind.”

Possible solutions, though, are within reach. Science, a start-up company in Alameda, Calif., has designed a visual prosthesis called the Science Eye which could restore vision, albeit in a limited form, in people with retinitis pigmentosa. Hodak, its CEO, co-founded the startup after a stint at Elon Musk’s company Neuralink. Other companies such as Paris-based biotechnology company GenSight Biologics and Bionic Sight in New York are also experimenting with methods to restore sight.

All are basing their work on a research tool in neuroscience called optogenetics, a form of gene therapy that delivers proteins called opsins via injection into the eye to boost the light sensitivity of cells in the retina, the layer of tissue at the rear of the eyeball.

Therapeutic optogenetic therapy for vision restoration certainly has promise, according to Anand Swaroop, a senior investigator at the National Eye Institute in Bethesda, Md., who has worked on inherited retinal degeneration for close to four decades. But there’s still room for improvement.

“At least at this stage, it seems to be very good in cases where someone is completely blind,” Swaroop said. “You should be able to find your way around. You’re not going to bump into things, which is great. But you’re not going to be distinguishing many different features.”

How optogenetics work

In normal vision, light enters the eye through the lens and forms an image on the retina. The retina itself is composed of several different types of cells, mainly photoreceptors. Photoreceptors are light-sensing cells shaped like rods and cones that contain opsins. Normally, photoreceptors convert light into electrical signals that travel to the retina’s ganglion cells, which in turn transmit those electrical signals via the optic nerve into the brain. That’s how you’re reading the words on this page right now.

In retinitis pigmentosa, the rods and cones in the photoreceptors break down and ultimately die. First the peripheral vision goes, and people develop tunnel vision: They have to turn their whole head just to view the world around them. Many people with tunnel vision require a cane to assist in navigating the world (and to avoid bumping into things, like furniture.) Blindness follows not long after. The breakdown of the photoreceptors, however, doesn’t diminish the brain’s ability to process electrical signals — and, critically, the ganglion cells remain intact.

Optogenetics seeks to circumvent the usual choreography by delivering opsin proteins directly to the ganglion cells, meaning they can be stimulated by light in order to send signals to the brain.

The Science Eye contains two elements. The first is an implant composed of a wireless power coil and an ultrathin, flexible micro-LED array that’s applied directly over the retina — surgery that’s more extensive compared to other eye procedures like repairing cataracts. According to Hodak, the array — prototypes of which are being tested in rabbits — provides eight times the resolution of an iPhone screen.

The second element is a pair of frameless glasses, similar in size and shape to regular prescription glasses, that contain miniature infrared cameras and inductive power coils.

Put it all together and the process looks like this:

Inject opsins into the ganglion cells of the eye.

Install the implant.

The glasses activate the modified ganglion cells by wirelessly communicating information from the visual world; in turn, the new light-sensitive ganglion cells transmit that information through the optic nerve to the brain.

The eye isn’t receiving an image anymore, but rather digital information. And the results?

“You should be able to walk across town to buy a sandwich without being hit by a car,” Hodak said.

More research into retinitis pigmentosa

Other companies are already helping to bring back vision in people with retinitis pigmentosa.

GenSight Biologics uses an optogenetics-plus-glasses approach to amplify light that genetically edited ganglion cells can decode. According to clinical trial results published in 2021 in the journal Nature Medicine, GenSight’s method was able to help in locating objects on a table. That patient, a 58-year-old man, was diagnosed with retinitis pigmentosa at age 18.

Innovations

Bionic Sight has firsthand experience with patients beginning to make distinctions between features. Its method involves a gene-therapy vector that transfers an opsin called Chronos via injection into the eyes of their patients to boost the light sensitivity of intact ganglion cells. For those with tunnel vision, the injection of the opsin seems to be enough.

For patients with more impaired vision, Bionic Sight pairs the optogenetic therapy with a pair of goggles containing a camera and a neurocoding device: The camera takes in images and converts them to code, which is then sent out as light pulses to activate the opsin in the genetically modified ganglion cells. So far Bionic Sight has treated 13 people, ranging from the very blind to patients with tunnel vision.

“It’s really significantly helping,” said Sheila Nirenberg, founder of Bionic Sight as well as a professor of computational neuroscience at Weill Cornell Medical College.

Consider the large letter “E” on the eye chart you might examine during a visit to the doctor’s office. The visual acuity of a person who is nearly blind is 20/200: What someone with 20/20 vision is able to see at 200 feet away is only visible at 20 feet away to someone who is nearly blind.

Many of her patients with retinitis pigmentosa, Nirenberg said, can’t see a letter like the big “E” from just two feet away. But one patient whose visual acuity was 20/150 — he had to stand 20 feet away from the chart in order to see the letters, whereas a normally-sighted person could stand 150 feet away and see the same letters — is now down to 20/40. Another patient was unable to distinguish the suits on playing cards. After receiving the opsin, the patient was not only able to tell the difference between clubs and diamonds, for instance, but he was also able to notice the differences in color.

Another challenge had him trying to spot differences between plastic fruits arranged in front of him. He was able to spot the stem of the apple to tell it apart from oranges and peaches. Finally, he was asked to walk a maze with black squares on the bottom — and made it through successfully.

“I can’t explain to you how thrilling it is,” Nirenberg said. “It’s very hopeful.”

One form of gene therapy for treating blindness has been available for over five years. Luxturna, a prescription approved by the Food and Drug Administration in 2017, is for children and adults with a rare genetic mutation that impacts the retinal pigment epithelium, the membrane at the back of the retina on which the photoreceptors sit. The prescription adds in a functional version of the gene to create an epithelium more favorable to the photoreceptors.

“It might slow the progression of the disease,” Hodak said. “But it does not regenerate any loss.”

That, ultimately, is the goal of Science Eye. Clinical trials should begin, Hodak said, sometime in the next 18 months. The company is also looking at ways to use Science Eye to help people with dry age-related macular degeneration, which unfolds slightly differently compared with retinitis pigmentosa: Patients lose central, high-resolution vision first, and then their peripheral vision.

There are milestones to cross for every company using optogenetics to help people improve their eyesight. More patients enrolled in clinical trials should help refine both opsin delivery and the ability to improve light sensitivity in retinal cells. But Hodak predicts that over the next five years, there will be products on the market for people like his grandfather.

“You always have to be really careful with what you say to patients because they’re holding on for any piece of hope,” Hodak said. “But there’s a lot of things on the horizon that are converging. It’s not at a point where any one thing will fail and derail the whole field. Real progress is coming.”

About this story

Bionic Eye illustrations by Washington Post; Science. Editing by Bronwen Latimer. Copy editing by Paola Ruano. Design and development by Audrey Valbuena. Design editing by Betty Chavarria. Photo editing by Haley Hamblin. Project development by Evan Bretos and Hope Corrigan. Project editing by Marian Chia-Ming Liu.

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Research: Why People Really Buy Upcycled Products

• Sara Caprioli,
• Christoph Fuchs,
• Bram Van den Bergh

Creativity is more of a selling point than sustainability.

Researchers who analyzed consumer feedback from Etsy discovered that what consumers value most about upcycled products is not their sustainability but their creativity. Their findings offer some guidelines for companies who hope to design and successfully market upcycled products: 1) Designers should consider using components from other industries to enhance the appeal of their products and encourage cross-industry collaboration; 2) Product designers and managers should identify new uses for product components; 3) Marketers should emphasize creativity, as well as sustainability, in their messaging about upcycled products; and 4) Companies can boost the appeal of new products by emphasizing design elements that remind consumers of upcycled products.

Upcycling — the creation of new products by reusing one or more components from ones — is having a moment.

• SC Sara Caprioli is a postdoctoral researcher at the TUM School of Management in Germany. Her work focuses on the effects of creativity and artificial intelligence on human behavior.
• CF Christoph Fuchs is a professor of marketing at the University of Vienna in Austria. His research is situated at the interface of marketing, technology, and human behavior.
• BB Bram Van den Bergh is professor of marketing at the Rotterdam School of Management, Erasmus University Rotterdam. His research focuses on decision making and persuasion.

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‘To the Future’: Saudi Arabia Spends Big to Become an A.I. Superpower

The oil-rich kingdom is plowing money into glitzy events, computing power and artificial intelligence research, putting it in the middle of an escalating U.S.-China struggle for technological influence.

More than 200,000 people converged on the Leap tech conference in the desert outside Riyadh in March. Credit... Iman Al-Dabbagh for The New York Times

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By Adam Satariano and Paul Mozur

Adam Satariano reported from Riyadh, Saudi Arabia, and Paul Mozur from Taipei, Taiwan.

• April 25, 2024

On a Monday morning last month, tech executives, engineers and sales representatives from Amazon, Google, TikTok and other companies endured a three-hour traffic jam as their cars crawled toward a mammoth conference at an event space in the desert, 50 miles outside Riyadh.

The lure: billions of dollars in Saudi money as the kingdom seeks to build a tech industry to complement its oil dominance.

To bypass the congestion, frustrated eventgoers drove onto the highway shoulder, kicking up plumes of desert sand as they sped past those following traffic rules. A lucky few took advantage of a special freeway exit dedicated to “V.V.I.P.s” — very, very important people.

“To the Future,” a sign read on the approach to the event, called Leap.

More than 200,000 people converged at the conference, including Adam Selipsky, chief executive of Amazon’s cloud computing division, who announced a $5.3 billion investment in Saudi Arabia for data centers and artificial intelligence technology. Arvind Krishna, the chief executive of IBM, spoke of what a government minister called a “lifetime friendship” with the kingdom. Executives from Huawei and dozens of other firms made speeches. More than $10 billion in deals were done there, according to Saudi Arabia’s state press agency.

“This is a great country,” Shou Chew, TikTok’s chief executive, said during the conference, heralding the video app’s growth in the kingdom. “We expect to invest even more.”

• Shou Chew, TikTok’s chief executive, promoted the video app’s growth in Saudi Arabia during the Leap conference. Iman Al-Dabbagh for The New York Times
• One of the booths at the Leap conference, which was attended by executives from Google, Amazon, TikTok and others. Iman Al-Dabbagh for The New York Times
• A robotic dog walking through the Leap conference. Iman Al-Dabbagh for The New York Times

Everybody in tech seems to want to make friends with Saudi Arabia right now as the kingdom has trained its sights on becoming a dominant player in A.I. — and is pumping in eye-popping sums to do so.

Saudi Arabia created a $100 billion fund this year to invest in A.I. and other technology. It is in talks with Andreessen Horowitz, the Silicon Valley venture capital firm, and other investors to put an additional $40 billion into A.I. companies. In March, the government said it would invest $1 billion in a Silicon Valley-inspired start-up accelerator to lure A.I. entrepreneurs to the kingdom. The initiatives easily dwarf those of most major nation-state investments, like Britain’s $100 million pledge for the Alan Turing Institute.

The spending blitz stems from a generational effort outlined in 2016 by Crown Prince Mohammed bin Salman and known as “Vision 2030.” Saudi Arabia is racing to diversify its oil-rich economy in areas like tech, tourism, culture and sports — investing a reported $200 million a year for the soccer superstar Cristiano Ronaldo and planning a 100-mile-long mirrored skyscraper in the desert.

For the tech industry, Saudi Arabia has long been a funding spigot. But the kingdom is now redirecting its oil wealth into building a domestic tech industry, requiring international firms to establish roots there if they want its money.

If Prince Mohammed succeeds, he will place Saudi Arabia in the middle of an escalating global competition among China, the United States and other countries like France that have made breakthroughs in generative A.I. Combined with A.I. efforts by its neighbor, the United Arab Emirates, Saudi Arabia’s plan has the potential to create a new power center in the global tech industry.

“I hereby invite all dreamers, innovators, investors and thinkers to join us, here in the kingdom, to achieve our ambitions together,” Prince Mohammed remarked in a 2020 speech about A.I.

His ambitions are geopolitically delicate as China and the United States seek to carve out spheres of influence over A.I. to shape the future of critical technologies.

In Washington, many worry that the kingdom’s goals and authoritarian leanings could work against U.S. interests — for instance, if Saudi Arabia ends up providing computing power to Chinese researchers and companies. This month, the White House brokered a deal for Microsoft to invest in G42, an A.I. company in the Emirates, which was intended partly to diminish China’s influence.

For China, the Persian Gulf region offers a big market, access to deep-pocketed investors and a chance to wield influence in countries traditionally allied with the United States. China’s form of A.I.-powered surveillance has already been embedded into policing in the region .

Some industry leaders have begun to arrive. Jürgen Schmidhuber, an A.I. pioneer who now heads an A.I. program at Saudi Arabia’s premier research university, King Abdullah University of Science and Technology, recalled the kingdom’s roots centuries ago as a center for science and mathematics.

“It would be lovely to contribute to a new world and resurrect this golden age,” he said. “Yes, it will cost money, but there’s a lot of money in this country.”

The willingness to spend was front and center last month at a gala in Riyadh hosted by the Saudi government, which coincided with the Leap conference. Hollywood klieg lights blazed in the sky above the city as guests arrived in chauffeured Maseratis, Mercedes-Benzes and Porsches. Inside a 300,000-square-foot parking garage that had been converted two years ago into one of the world’s largest start-up spaces, attendees mingled, debated opening offices in Riyadh and sipped pomegranate juice and cardamom-flavored coffee.

“There’s something happening here,” said Hilmar Veigar Petursson, the chief executive of CCP Games, the Icelandic company behind the popular game Eve Online, who was at the gala. “I got a very similar sense when I came back from China in 2005.”

A Sci-Fi Script

Prince Mohammed’s Vision 2030 project, unveiled eight years ago, seems taken from a science-fiction script.

Under the plan, new futuristic cities will be built in the desert along the Red Sea, oriented around tech and digital services. And the kingdom, which has piled billions into tech start-ups like Uber and investment vehicles such as SoftBank’s Vision Fund, would spend more.

That drew Silicon Valley’s attention. When Prince Mohammed visited California in 2018, Sergey Brin, Google’s co-founder, escorted him through a tree-lined path at the company’s campus. Tim Cook, Apple’s chief executive, showed him the company’s products. The prince also traveled to Seattle, where he met with Bill Gates of Microsoft; Satya Nadella, the company’s chief executive; and Jeff Bezos of Amazon.

It was a key moment for Saudi Arabia’s tech ambitions as Prince Mohammed presented himself as a youthful, digitally savvy reformer. But enthusiasm dimmed a few months later when Jamal Khashoggi, a Washington Post columnist and critic of the crown prince, was killed at the Saudi Consulate in Istanbul. Prince Mohammed denied involvement, but the C.I.A. concluded that he had approved the killing .

For a brief period, it was seen as untoward to associate with Saudi Arabia. Business executives canceled visits to the kingdom. But the lure of its money was ultimately too strong.

A.I. development depends on two key things that Saudi Arabia has in abundance: money and energy. The kingdom is pouring oil profits into buying semiconductors, building supercomputers, attracting talent and constructing data centers powered by its plentiful electricity. The bet is that Saudi Arabia will eventually export A.I. computing muscle.

Majid Ali AlShehry, the general manager of studies for the Saudi Data and A.I. Authority, a government agency overseeing A.I. initiatives, said 70 percent of the 96 strategic goals outlined in Vision 2030 involved using data and A.I.

“We see A.I. as one of the main enablers of all sectors,” he said in an interview at the agency’s office in Riyadh, where employees nearby worked on an Arabic chatbot called Allam.

Those goals have permeated the kingdom. Posters for Vision 2030 are visible throughout Riyadh. Young Saudis describe the crown prince as running the kingdom as if it were a start-up. Many tech leaders have parroted the sentiment.

“Saudi has a founder,” Ben Horowitz, a founder of Andreessen Horowitz, said last year at a conference in Miami. “You don’t call him a founder. You call him his royal highness.”

Some question whether Saudi Arabia can become a global tech hub. The kingdom has faced scrutiny for its human rights record, intolerance to homosexuality and brutal heat. But for those in the tech world who descended on Riyadh last month, the concerns seemed secondary to the dizzying amount of deal-making underway.

“They are just pouring money into A.I.,” said Peter Lillian, an engineer at Groq, a U.S. maker of semiconductors that power A.I. systems. Groq is working with Neom, a futuristic city that Saudi Arabia is building in the desert, and Aramco, the state oil giant. “We’re doing so many deals,” he said.

Torn Between Superpowers

Situated along the Red Sea’s turquoise waters, King Abdullah University of Science and Technology has become a site of the U.S.-Chinese technological showdown.

The university, known as KAUST, is central to Saudi Arabia’s plans to vault to A.I. leadership. Modeled on universities like Caltech, KAUST has brought in foreign A.I. leaders and provided computing resources to build an epicenter for A.I. research.

To achieve that aim, KAUST has often turned to China to recruit students and professors and to strike research partnerships , alarming American officials. They fear students and professors from Chinese military-linked universities will use KAUST to sidestep U.S. sanctions and boost China in the race for A.I. supremacy , analysts and U.S. officials said.

Of particular concern is the university’s construction of one of the region’s fastest supercomputers, which needs thousands of microchips made by Nvidia, the biggest maker of precious chips that power A.I. systems. The university’s chip order, with an estimated value of more than $100 million, is being held up by a review from the U.S. government, which must provide an export license before the sale can go through.

Both China and the United States want to keep Prince Mohammed close. A.I. ambitions add a new layer of geopolitical significance to a kingdom already key to Middle East policy and global energy supplies. A 2016 visit to Saudi Arabia by Xi Jinping, China’s leader, paved the way for new tech cooperation. Accustomed to top-down industrial policy, Chinese companies have expanded rapidly in the kingdom, forming partnerships with major state-owned companies. The United States has pushed Saudi Arabia to pick a side, but Prince Mohammed seems content to benefit from both nations.

Mr. Schmidhuber, the researcher leading KAUST’s A.I. efforts, has seen the jostling up close. Considered a pioneer of modern A.I. — students in a lab he led included a founder of DeepMind, an innovative A.I. company now owned by Google — he was lured to the desert in 2021.

He was reluctant to move at first, he said, but university officials, via a headhunter, “tried to make it more attractive and even more attractive and even more attractive for me.”

Now Mr. Schmidhuber is awaiting the completion of the supercomputer, Shaheen 3, which is a chance to attract more top talent to the Persian Gulf and to give researchers access to computing power often reserved for major companies.

“No other university is going to have a similar thing,” he said.

Some in Washington fear the supercomputer may provide researchers from Chinese universities access to cutting-edge computing resources they would not have in China. More than a dozen students and staff members at KAUST are from military-linked Chinese universities known as the Seven Sons of National Defense, according to a review by The New York Times. During the Trump administration, the United States blocked entry to students from those universities over concerns they could take sensitive technologies back to China’s military.

“The United States should quickly move to deny export licenses to any entity if the end user is likely to be a P.R.C. actor affiliated with the People’s Liberation Army,” Representative Mike Gallagher, a Republican from Wisconsin, said in a statement.

A senior White House official, speaking on the condition of anonymity, said that the default U.S. policy was to share technology with Saudi Arabia, a critical ally in the gulf, but that there were national security concerns and risks with A.I.

The Commerce Department declined to comment. China’s Ministry of Foreign Affairs did not respond to faxed questions for comment.

A KAUST spokeswoman said, “We will strictly comply with all U.S. export license terms and conditions for the full life cycle of Shaheen 3.”

Mr. Schmidhuber said the Saudi government was ultimately aligned with the United States. Just as U.S. technology helped create Saudi Arabia’s oil industry, it will play a critical role in A.I. development.

“Nobody wants to jeopardize that,” he said.

The Gold Rush

Aladin Ben, a German Tunisian A.I. entrepreneur, was in Bali last year when he received an email from a Saudi agency working on A.I. issues. The agency knew his software start-up, Memorality, which designs tools to make it easier for businesses to incorporate A.I., and wanted to work together.

Since then, Mr. Ben, 31, has traveled to Saudi Arabia five times. He is now negotiating with the kingdom on an investment and other partnerships. But his company may need to incorporate in Saudi Arabia to get the full benefit of the government’s offer, which includes buying hundreds of annual subscriptions to his software in a contract worth roughly $800,000 a month.

“If you want a serious deal, you need to be here,” Mr. Ben said in an interview in Riyadh.

Saudi Arabia was once viewed as a source of few-strings-attached cash. Now it has added conditions to its deals, requiring many companies to establish roots in the kingdom to partake in the financial windfall.

That was evident at GAIA, an A.I. start-up accelerator, for which Saudi officials announced $1 billion in funding last month.

Each start-up in the program receives a grant worth about $40,000 in exchange for spending at least three months in Riyadh, along with a potential $100,000 investment. Entrepreneurs are required to register their company in the kingdom and spend 50 percent of their investment in Saudi Arabia. They also receive access to computing power purchased from Amazon and Google free of charge.

About 50 start-ups — including from Taiwan, South Korea, Sweden, Poland and the United States — have gone through GAIA’s program since it started last year.

“We want to attract talent, and we want them to stay,” said Mohammed Almazyad, a program manager for GAIA. “We used to rely heavily on oil, and now we want to diversify.”

One of the biggest enticements for A.I. start-ups is the chance to make the deep-pocketed Saudi government a customer. In one recent meeting, Abdullah Alswaha, a senior minister for communications and information technology, asked GAIA’s start-ups to suggest what they could provide for the Saudi government, including for megacity projects like Neom . Afterward, many of the companies received messages introducing them to state-owned businesses, Mr. Almazyad said.

“I would say this process at the first stages is not organic,” he said. “You don’t find this in Silicon Valley. Eventually the process will be organic.”

Deciding to set up in Riyadh comes with challenges. There’s the heat, reaching more than 110 degrees in the summer, as well as the adjustments of moving to a deeply religious Muslim kingdom. While Saudi Arabia has loosened some restrictions in recent years, freedom of speech remains limited and L.G.B.T.Q. people can face criminal penalties.

Mr. Almazyad, who hopes to eventually study in the United States, said cultural differences could make it hard to recruit international A.I. talent. But he cautioned against underestimating Saudi Arabia’s resolve.

“This is just the beginning,” he said.

Adam Satariano is a technology correspondent based in Europe, where his work focuses on digital policy and the intersection of technology and world affairs. More about Adam Satariano

Paul Mozur is the global technology correspondent for The Times, based in Taipei. Previously he wrote about technology and politics in Asia from Hong Kong, Shanghai and Seoul. More about Paul Mozur

Explore Our Coverage of Artificial Intelligence

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Meta projected that revenue for the current quarter  would be lower than what Wall Street anticipated and said it would spend billions of dollars more on its artificial intelligence efforts, even as it reported robust revenue and profits for the first three months of the year.

Microsoft introduced three smaller A.I. models  that are part of a technology family the company has named Phi-3. The company said even the smallest of the three performed almost as well as GPT-3.5, the system that underpinned OpenAI’s ChatGPT chatbot.

A new flood of child sexual abuse material created by A.I. is threatening to overwhelm the authorities  already held back by antiquated technology and laws. As a result, legislators are working on bills  to combat A.I.-generated sexually explicit images of minors.

The Age of A.I.

A new category of apps promises to relieve parents of drudgery, with an assist from A.I . But a family’s grunt work is more human, and valuable, than it seems.

Despite Mark Zuckerberg’s hope for Meta’s A.I. assistant to be the smartest , it struggles with facts, numbers and web search.

Much as ChatGPT generates poetry, a new A.I. system devises blueprints for microscopic mechanisms  that can edit your DNA.

Could A.I. change India’s elections? Avatars are addressing voters by name, in whichever of India’s many languages they speak. Experts see potential for misuse  in a country already rife with disinformation.

Which A.I. system writes the best computer code or generates the most realistic image? Right now, there’s no easy way to answer those questions, our technology columnist writes .

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4 people who relocated and regretted it share the biggest mistake they made and what they learned

• Four people who moved to new places share their regrets and what they'd do differently.
• One person Business Insider that they would spend more time in their new destination before moving.
• Another said they regretted underestimating the importance of living near their friends and family.

Relocating to a new state or country can be good for your work-life balance , career and finances .

But switching cities, trying out rural life or experiencing a completely different culture can come with surprises.

Business Insider spoke with four people who shared their biggest regret and what they learned from it.

1) Spending too little time in your new destination before moving

Amanda Loudin , a remote worker, moved from her home in Maryland to Boulder, Colorado, during the COVID-19 pandemic. She relocated because she loved outdoor activities and wanted to be near the mountains.

Loudin found it harder than she'd anticipated to find friends and a community — and returned to Maryland two years after she moved.

She told Business Insider she found people in Boulder more introverted than in Maryland. "My neighbors didn't invite me to cookouts, I found no regular running groups that didn't require paying to play, and I didn't fall into fun conversations at the dog park," Loudin said.

Loudin said she'd visited Boulder several times before her move and tried out living there for a month. After relocating, she realized her previous visits were closer to vacations, and she wished she'd spent more time in Boulder before deciding to move.

"More time for real-life experience — efforts to find peers and friends, running partners, and the like — could have helped me learn it wasn't right for me," she said.

2) Not finding more affordable housing

Wendy Wang and her husband moved from Pennsylvania to Silicon Valley, California, in 2020 to work for a tech startup.

She told BI she found the transition difficult. Her work-life balance suffered, and she struggled to find a sense of community.

Wang said that the cost of housing, transport, and groceries was much higher than the national average in the US. It meant they couldn't afford to buy a house and had to rent a two-bedroom apartment for $3,500 a month, not including utilities.

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"This financial strain was a constant in our lives, adding to the stress of demanding jobs," she said, adding that she wished she'd looked into more affordable housing outside the city before making the move.

Wang returned to Pennsylvania with her husband two years after they moved to California. Back in Pennsylvania, the couple could afford to buy a four-bedroom house with a mortgage that costs less than their rent in Silicon Valley.

"Living without constant financial worry has given us the freedom to enjoy life," she said.

3) Not doing enough research

Eric Michiels moved from Atlanta to Denver in 2021 with his wife and two kids. He moved for work, but also said the idea of spending more time in nature was appealing.

Michiels told BI that the weather was colder and less predictable than he'd imagined.

"The winters were especially terrible for us," he said. "I remember being informed by our apartment complex that the temperature would drop below negative 5 degrees for three days in a row and to be prepared if the power went out."

He struggled to make long-lasting friendships and said Denver lacked the "Southern hospitality" he'd found in Atlanta. "After I left one church I visited, no one ever spoke to me or followed up."

He said he felt "naive" and he wished he'd done more research before he moved.

After two years in Colorado, Michiels and his family moved again — this time to Spain in 2023. He got a digital nomad visa and said, in many ways, he prefers Spain to living in Colorado.

4) Prioritizing location over amenities or community

Jackie Branholm moved from New York City to Denver in 2019 with her now-husband. They wanted to try a new city before they settled down.

The couple loved living in Denver and decided to buy their first house there after a year, but they were priced out of the city. "During our search, we fell in love with the idea of living in the mountains with our growing family," Branholm told BI.

They bought an old fixer-upper in a small mountain town 45 minutes from Denver. However, the couple was unprepared for mountain living. "What we loved about the town when we visited on the weekends was not the same experience as a resident," Branholm said.

She told BI living in the small mountain town was beautiful and great for outdoor activities but "logistically and physically isolating." "If we wanted to go to Target or the grocery store, we had to drive at least 20 minutes," she added.

The couple felt cut off from their Denver friends, cafés, and bars. After giving birth to their firstborn, Branholm said the isolation became unbearable.

"Ultimately, we realized how and who we spent our time with was more important than where we lived. Even though we loved going outside and hiking, our priorities changed when we had our son. We wanted life to be easier."

Branholm and her husband moved back to New York to be closer to family in 2023. She said the experience taught them the value of convenience and proximity to friends and family.

Watch: Marriott International's Tina Edmundson tells Insider that the travel mindset has changed since the pandemic

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• 24 Apr 2024
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Helping Companies Become More Climate Resilient

In this episode in our adaptation series, Peter Hall, Managing Director at Resonance Impact Advisory, draws upon his experience in global engineering and professional services firms to share how consulting and advisory companies can help their clients assess their risks and take actions to become more resilient to climate change. He walks through several adaptation frameworks and roadmaps recently developed by governments, civil society, and private companies to help provide clarity and guidance on the steps necessary for more resilient companies and societies. For notes and resources visit; climaterising.org

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• 22 Apr 2024
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Building Climate - Resilient Cities and Infrastructure

This episode in our climate adaptation series features HBS Professor John Macomber. John discusses how companies and governments need to incorporate climate resilience as they develop and finance real estate and infrastructure to address the risks of flooding, wildfire, extreme heat, drought, and sea level rise. John describes “five R” options to address these risks—to reinforce, rebound, retreat, restrict, and rebuild—and highlights best practices from insurance companies and the governments of Amsterdam, Rotterdam, and Singapore. He also identifies entrepreneurial opportunities to foster adaptation and resilience. Climate Rising Host: Professor Mike Toffel, Faculty Chair, Business & Environment Initiative Guest: John Macomber, Senior Lecturer at Harvard Business School. For transcripts and other resources, visit climaterising.org

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How Do Great Leaders Overcome Adversity?

In the spring of 2021, Raymond Jefferson (MBA 2000) applied for a job in President Joseph Biden’s administration. Ten years earlier, false allegations were used to force him to resign from his prior US government position as assistant secretary of labor for veterans’ employment and training in the Department of Labor. Two employees had accused him of ethical violations in hiring and procurement decisions, including pressuring subordinates into extending contracts to his alleged personal associates. The Deputy Secretary of Labor gave Jefferson four hours to resign or be terminated. Jefferson filed a federal lawsuit against the US government to clear his name, which he pursued for eight years at the expense of his entire life savings. Why, after such a traumatic and debilitating experience, would Jefferson want to pursue a career in government again? Harvard Business School Senior Lecturer Anthony Mayo explores Jefferson’s personal and professional journey from upstate New York to West Point to the Obama administration, how he faced adversity at several junctures in his life, and how resilience and vulnerability shaped his leadership style in the case, "Raymond Jefferson: Trial by Fire."

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Morningstar CEO Kunal Kapoor: How AI can raise the investment IQ

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Futures Extend Gains After March PCE Data

FILE PHOTO: A street sign for Wall Street is seen outside the New York Stock Exchange (NYSE) in New York City, New York, U.S., July 19, 2021. REUTERS/Andrew Kelly/File Photo

(Reuters) - U.S. stock index futures extended gains on Friday, as fresh evidence of progress on the inflation front reignited hopes that the Federal Reserve could cut interest rates sometime this year.

The personal consumption expenditures (PCE) price index rose 0.3% in March, compared to a 0.3% increase forecast by economists polled by Reuters. In the 12 months through March, PCE inflation advanced 2.7% against expectations of 2.6%.

Excluding the volatile food and energy components, the PCE price index increased 0.3% last month against expectations of a 0.3% increase. Annually, it came in at 2.8% versus forecasts of 2.7%.

At 8:32 a.m. ET, Dow e-minis were up 122 points, or 0.32%, S&P 500 e-minis were up 46.75 points, or 0.92%, and Nasdaq 100 e-minis were up 197 points, or 1.12%.

(Reporting by Shashwat Chauhan in Bengaluru; Editing by Maju Samuel)

Copyright 2024 Thomson Reuters .

Tags: United States

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