Politicians and the City need to trust each other

This coming week is the pre-Budget report, and both leading political parties are going for growth. But do they know what that means? James Carville, the campaign manager of Bill Clinton&rsquo;s Presidential campaign coined the phrase which led Clinton to victory: &ldquo;it&rsquo;s the economy, stupid&rdquo;. Faced with an incumbent president who had 80 per cent approval ratings and thought he would coast through the election, Carville uncovered what was bugging Americans as well as his opponents Achilles&rsquo; heel.<br /><br />Today we could say with the UK election upon us &ldquo;it&rsquo;s the entrepreneur, stupid.&rdquo; This is the age of the entrepreneur, but the political parties have scarcely noticed except to fundraise from successful ones.<br /><br />Just as the Industrial Revolution ushered in social change, so the rise of the internet, entrepreneurship and individual capitalism is altering the face of society today. <br /><br />Trust has been forever destroyed with government and big business. What contracts remain are exclusively utilitarian, but there is no sense of common good or transparency. If I can&rsquo;t have job security and confidence in management&rsquo;s steering of the ship, then what exactly am I getting from this employment set up?<br /><br />There is a new global business elite which is emerging, and its characteristics have come into sharp focus over the past decade. <br /><br />These firms come from anywhere in the world. They are both start-ups which get big fast, and established players who can adapt successfully. They are defined by how fast they are growing and whether they are aligning the business model for the ecosystem in which they operate. Whether you are in the software, banking, publishing or another trade, you won&rsquo;t be able to escape the fact that the next phase of business is about the quality of your business model. <br /><br />Successful entrepreneurs know how to think big, start small and move fast. If you can get an entrepreneur into a large company with assets to leverage through an acquisition, you have an unbeatable proposition. One of the main reasons to acquire new companies is not their additive effect on revenue or profits but that they will take you into new growth markets. The financial value of acquisitions can be small; their strategic value is exponential.<br /><br />If you are operating inside a large company today, like it or not, you are competing today with other entrepreneurs. Size is not the predictor of success; growth is. Politicians &ndash; nota bene: Follow the Entrepreneur. <br /><br />Julie Meyer is chief executive of Ariadne Capital<br />