I’m not an economist by any stretch of the imagination. Well, I did take multiple economics and management classes in college, but those were basic lessons about money supply, market fluctuations, and elasticity. Regardless, it doesn’t take a degree in economics to know that the US economy is not in great health right now.
The real question I’m trying to answer, as the CEO of a growing technology business, is “what are going to be the downstream effects of this current mess on our ability to grow, gain capital to meet demand, and predict our community’s ability to grow as well.”
In a blog post just last week, I pointed out a few thoughts about the natural conclusions from the Lehman Brothers fall. However, with the much more severe failures we’ve seen in just the past 7 days, I’m becoming more bearish on our non-profit tech market’s ability to move through this smoothly.
Essentially, it all comes down to access to capital. If the small businesses that are the true engines of innovation in our sector (define “small business as you see fit”) are unable to obtain even small loans at competitive rates to build up capacity or roll out new features, we’re likely going to see a speed-up of the market’s consolidation as well as slowing innovation.
In short, there’s a good chance that all the nptech innovation fun we saw in 2002-2005 will be remembered fondly as “the good old days”. Of course, I don’t want to see this innovation slowdown. Our community deserves the best tools we can provide. I’m hopeful that with the growing support and use of open source technology within non-profits will continue to drive down costs and enable groups to still have access to powerful tools like Joomla during this downturn.