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Adjunct professor accesses local economy
Ask Brian Schoenborn, an alumnus and adjunct professor at SCSU, what ruinous influence the economic downturn is having on his business and career interests and you may wonder if he has heard of recession claims at all. The awkward silence following such a question is put sharply into perspective when he declares that not one of his clients is being negatively affected by current economic conditions.
Schoenborn manages the St. Cloud office of Leonard, Street and Deinard, professional association of attorneys based in Minneapolis since its opening this August. His view is that while people hear about the recession and forecasts for the future, most are cautious to the extent that they “check their wallets and for the most part are okay, so its business as usual.”
Enabling a business as usual approach could well be the upshot of the Federal Reserve’s intervention - increasing the money supply at the start of this year in an effort to bolster the sliding economy. The intent being to lower interest rates to 2 percent, one third of what it was in December, 2000, and encourage households and businesses to invest. In the same vane that a horse led to water can’t be forced to drink, economists can only sit back and watch for consumer reaction to attractive interest rates.
And the horses are thirsty if findings from a recent Mason-Dixon poll are anything to go by. Minnesotans’ spending and investment decisions aren’t being radically altered by weakness in the economy or the Sept. 11 terrorist attacks - a state of affairs that Schoenborn can substantiate.
“All day, every day I’m working with businesses across the country and all are in full-blown growth mode,” he said. “Business actually has a better opportunity right now and one that may not be repeated for decades. People have access to capital and finance with rates that are incredibly attractive.”
Governmental assistance may contribute to the larger picture, but on a community level another reason put forward to explain the general stability of business in St. Cloud is the locale’s relative independence from the technology sector. Acknowledging that many areas have been hit hard by layoffs, Aaron Crandall, Schoenborn’s colleague said, “we are somewhat insulated here and the St. Cloud experience is different to the east and west coasts.”
But St. Cloud certainly hasn’t been insulated from the affects of the Sept. 11 terrorist attacks. Schoenborn has witnessed a positive impact in that many clients are focusing on loved ones and are taking care that family affairs are in order. Estate planning, once something that could wait until next year is now becoming a pressing concern and clients “want it done now.”
But Schoenborn’s commentary on business trends isn’t merely the consequence of practicing of law since 1995, he is a successful business owner in his own right and appreciates risk taking in less than ideal conditions. As an advocate of the notion that economies can be described in cyclical terms - that there are long established patterns of booms and busts - he contends that the “current situation is not unique” and that business should take advantage of prevailing opportunities.
That is something he continues to do himself. In 1997, he invested in a United States Hockey League franchise expansion in Sioux Falls, South Dakota. Two years later, he acquired a second and existing franchise in Iowa, the Sioux City Musketeers, and the two teams now boast a total of 31 home game events. At 5,000 tickets per event and a fan base on the rise, his current business success reflects his willingness to “engage in business” and he adds with a smile, that he “got lucky.”
This type of entrepreneurial acumen and the challenge for businesses in changing economic times will no doubt be part of discussions this spring at SCSU when Schoenborn and Crandall team-teach an introductory law class.
Lorna Watson can be reached at: [email protected]
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