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April 28, 2014

Confusing Macro and Micro – missing the big picture.

I love when people reference the unemployment rate when talking about a specific industry or company in a market.  I live in Columbia SC where unemployment is still hovering north of 6.5%.  Things are not back to where they should be by any means.  But that does not mean that every company can hire the people they need or want.

Macro – unemployment is high and lots of people need and are looking for jobs.

Micro – you are a small start-up in need of specific computer development skills in the real estate industry.  Not easy to find.

If you happen to join a conversation with the CEO of that start-up firm, don’t tell her that she shouldn’t have a hard time hiring because unemployment is high.  You might just annoy them and make yourself look like a fool.

Large populations are not homogeneous.  They are still made of components that may not meet the needs of everyone.  This is the difference between macro and micro.

The area of your square peg may be the same as the area of the square hole, but that doesn’t mean it will fit.

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