Pop quiz: What very large entity is typically left out of conversations about global business? Don’t bother looking at the Fortune Global 500 list for an answer. That’s because it’s not a single enterprise, though it is a market force like no other: government.
Consider the sheer size of the world’s governments: Collectively, they account for approximately $17 trillion of revenue, employ more than 100 million people, and allot more than $400 billion to research and development annually. Commercial assets are double the world’s total pension savings and ten times the holdings of all the world’s sovereign wealth funds. Divided into nearly 200 operating units, the world’s governments have more than seven billion shareholders.
The roles and fates of businesses and governments have long been intertwined. Government has the power to create, eliminate, and change markets overnight. But today, they both face the challenge of operating in a world where the pace of change is accelerating at speeds that make it difficult to keep up. Businesses have to calculate the impact of this velocity on their operations and markets. Governments too must understand the challenges and adjust to rapid change brought on by technology and transparency. Both entities need each other to navigate through the uncertainly of the future, especially if they are to benefit society while doing so.
Every business leader–regardless of country, size, and industry—should have a plan for managing their relationship with the public sector. On September 17, join our next Expert Connect on building trust with government officials. The one hour live discussion will be led by David W. Beier, venture capitalist and former senior White House official and Dean Krehmeyer, Executive Director of the Darden School’s Institute for Business in Society at the University of Virginia.
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