To dig out of the prolonged economic quagmire, America needs to believe in its entrepreneurial spirit again and invest in little companies that have the potential to someday become worldwide giants, says Muhtar Kent, chairman and chief executive officer of Coca-Cola.
Speaking to the World Affairs Council of Atlanta on Thursday, Kent told the audience not to believe naysayers who preach that America has peaked. The nation, he said, is still the destination of choice for immigrants, is on track to outpace population growth of many competitors and produces more patents and inventions than the rest of the world combined.
"Two out of three new jobs in this country are created by businesses less than 5 years old," he said. "Women entrepreneurs alone account for $4 trillion in GDP in the U.S. That's nearly the entire GDP of China today."
Kent's remarks were part of a wide-ranging business speech that included his thoughts on Coke's direction for the future, and the parallels between the beverage giant's growth over the past 125 years and its hometown of Atlanta.
He said that like Coke, Atlanta's beginnings -- a small, Southern reconstruction-era town -- were humble. Both grew over the years, entered the world stage and prospered. Now 10 percent of Coke's stock -- or about $15 billion -- is owned by Georgians or Georgia institutions. Last year, $350 million in dividends were injected into the state's economy, he said.
"Today, both Atlanta and Coca-Cola are large, well-known and vibrant," he said. "[They are] global in reach and character, embodying optimism and good times, connecting friends and communities."
Coke also invested in the community, including connections to Emory University's Goizueta Business School, named for former Coke chief Roberto Goizueta, and the Woodruff Arts Center after Coke giant Robert Woodruff.
Kent, who attended the recent G-20 summit in Cannes, France, said he's optimistic because Coke has done what many said it couldn't: improve its North America business. The company's recently released third quarter earnings showed profit up by 8 percent and volume up by 5 percent.
"When we first started talking about growing our U.S. business, some people thought we were talking about ‘taking a glider to the moon,'" he said.
In addition to improving the bottom line in North America, he said the company has created jobs, including a plan in Auburndale, Fla., that is producing citrus that is shipped to China.
"That's right, our business in China is creating jobs and economic stimulus right here in the U.S.," he said.
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