The Engine – Where Our Economy Gets Its Strength
By Steve Ernst

I live in a town that actually has a "Main Street." Family owned restaurants, auto dealerships, small law and accounting firms, a flower shop, a locally-owned jewelry store, a community bank, a dentist's office, three doctors' offices, two shoe stores, a shoe repair shop, a number of locally-franchised fast food eateries, a camera shop, and a book store. That's within 5 blocks, keep walking and you'd see even more. What do all of these small businesses have in common? The businesses and their owners represent ideas, a penchant for risk-taking, fortitude and, to top off even those attributes, they employee people who are earning a living, supporting families and probably formulating ideas, working to reduce their aversion to risk and gathering the guts to go out on their own, to be their own boss, to create their own space and identity. In short, these are entrepreneurs.

When I see this street and the lives and efforts of people that make it what it is I think of my father. My dad was a strong, big but quiet man with closely held dreams. A World War II veteran who came back from the war and went to work in a factory, he was there until, over 30 years later, he was the last one to leave the plant, walk out of the gate and, literally, turned off the lights. By day, he built huge earth movers, the descendants of the steam shovels of an earlier age but, at night, he was an artist whose medium was wood. He created beautiful, long-lasting pieces of furniture for which people would wait months until he said it was ready. He could not hide his passion to create these masterful pieces and his dream was to have his own business. It was not to be but, whenever I think about entrepreneurial spirits, I think of him.

I had the above thoughts in mind when I was fortunate enough to attend the 21st Annual Ernst & Young Entrepreneur of the Year Awards weekend in late November. The EOY Awards gala is the culmination of a year-long search for and celebration of the entrepreneurial spirit which Ernst & Young conducts in 26 different geographic regions within the U.S. Along with the other national sponsors, Bank of America and The Kauffman Foundation, SAP proudly sponsored the 2007 EOY Program and I was fortunate to attend the event where, from over 1,600 nominees in the U.S., a distinguished panel of judges selected Entrepreneurs of the Year in 10 separate categories and, from that group, an overall Entrepreneur of the Year. If one trait, if one descriptor, if one distinguishing characteristic had to be identified that separated these entrepreneurs who had been nominated and who took part in this program throughout 2007, it would have to be passion. That's Passion with a capital P. That's not just a bias for action, it's a passion to succeed, to see one's dream come to fruition and to see the impact that dream can have on others when it blossoms into reality.

The 2007 Ernst & Young Entrepreneur of the Year in the U.S. is Isaac Larian, President, CEO of MGA Entertainment, Van Nuys, CA. Earlier in the evening, prior to his being named the overall recipient of the Entrepreneur of the Year Award, Mr. Larian had been named the winner in the Retail & Consumer Product category. To say his acceptance speech was tremendously moving and an example of a modest person truly appreciative of the country and people who made his and his family's success possible would be an understatement. When Mr. Larian left Iran at the age of 17, his destination was America and, as he said, a place where, if you worked hard, you could pursue your dreams. When he arrived in Los Angeles, he had $750 in his pocket and a heart full of determination. At the end of his first month in the U.S. and with his funds dwindling he eventually found a job as a dishwasher at $1.65 an hour and the will power to save and persevere to the extent that he eventually earned a degree in civil engineering. He never lost sight of his dream, never gave up on himself and continued to be bolstered by the fact he was in the United States of America. Step after step, decision after decision, idea after idea, he progressed from a licensing agreement, to a line of toys and products which children had to have, to acquiring Little Tykes and then to the acquisition and rescue of Smoby, France's largest toy company, and Europe's second largest Today, MGA Entertainment is the largest privately-owned toy company in the world. His advice when looking back? "Trust your instincts, stay humble, and be true to your roots." As he tells his children, "I came here with little, started as a dishwasher, and got the chance to live the American dream."

Entrepreneurs, the engines of our economy, we at SAP salute you.

As we wrap up 2007, I want to thank you for the opportunity to present you with my thoughts, musings and stream of consciousness when it comes to our CPA profession and the small and midsize businesses in which we work or who are our clients. A very Merry Christmas and truly happy and safe holiday season to all. See you in 2008.

Steve Ernst, CPA, leads the SAP CPA Advisor and other influencer programs for SAP America, Inc. Prior to joining SAP, Steve provided consulting services to boards and executive staff on accounting, auditing, business processes, and internal control systems, as well as sales, marketing, and business development initiatives. He has more than 30 years of experience, including 10 years with PricewaterhouseCoopers LLP and more than 20 years in international finance and operations in the consumer product and technology markets. You can contact him at steve.ernst@sap.com.