1. Richard Kihilstrom and Jean-Jacques Laffont, “A General Equilibrium Entrepreneurial Theory of Firm Formation Based on Risk Aversion,” Journal of Political Economy 87 (1979): 719–748.
2. Hongwei Xu, Martin Ruef. “The Myth of the Risk-Tolerant Entrepreneur,” Strategic Organization, 2004.
3. https://www.edge.org/conversation/the-adjacent-possible.
4. http://www.pucpr.br/noticia.php?ref=1&id=2014-12-08_54855. See also https://www.theverge.com/2016/10/6/13184094/apple-app-academy-opens-italy.
5. Robert Coram, Boyd: The Fighter Pilot Who Changed the Art of War (Boston: Little, Brown, 2002).
6. Pilot-to-pilot confrontation became obsolete with heat-seeking missiles.
Chapter 11: Becoming a Successful Entrepreneur
1. Francis Arthur Jones, Thomas Alva Edison: Sixty Years of an Inventor’s Life (T.Y. Crowell, 1908).
2. http://www.1millioncups.com/.
3. https://startupweekend.org/.
4. https://www.blackstonelaunchpad.org/.
5. http://www.techshop.ws/.
Index
A note about the index: The pages referenced in this index refer to the page numbers in the print edition. Clicking on a page number will take you to the ebook location that corresponds to the beginning of that page in the print edition. For a comprehensive list of locations of any word or phrase, use your reading system’s search function.
Affordable Care Act (Obamacare), 182
Airbnb, 34, 199, 250n
Allen, Paul, 10, 13, 41, 159
AlliedSignal, 130, 134
Amazon, 3, 24, 38, 117, 132, 165, 175–76, 197, 222, 246
Ambron, Patrick, 82–86, 89, 230
Amezcua, Alejandro, 197
Apple, 10, 13–14, 32, 35, 41, 46, 114, 117, 197, 220, 240, 245–46
CBL program of, 213–18, 243
Classrooms of Tomorrow program of, 213
iOS Developer Academy of, 215
ATDynamics, 210
Auntie Anne’s, 148, 156
Barra, Mary, 37
Baumol, William, xii, 23
Bed Bath & Beyond (BB&B), 94
Bell, Glen, 145, 147
Bezos, Jeff, 24, 132, 165, 236, 246
Blackstone Foundation, 243
Blockbuster, 35, 154
Blume, Wally, 88
Boggs, Wade, 187
Boyd, John, 216–18
BrandYourself, 83–86, 89
Branson, Richard, 25–26, 47, 62
Bratton, Susan, 95–97
Brooke-Marciniak, Michelle, 92–94, 234–35, 237
Bruner, Robert, 19–20, 208
Buffett, Warren, 78, 252n
Burger King, 145, 152
Burnham, Daniel, 26
Burns, Matthew, 145
Burrell, Gary, 130–31, 134–35
business incubators, 10, 202–5
Foster and, 189–90, 192, 195
funding of, 195, 244, 253n
how they work, 195–97
startups and, 16, 18, 41, 49, 189–90, 192, 195–98, 204, 228
value of, 197–98, 228
business plans, 7–10, 19, 31, 49, 115, 134–35, 137, 163–64, 185
DiMare and, 166–67, 169, 174
and education of entrepreneurs, 73–74
on exit strategy, 15–16, 39, 234
failure and, 174, 177
innovations and, 26, 242
Levin and, 3–4, 9, 180, 233
and motivations of entrepreneurs, 84, 92, 97
and time needed for startups, 39, 234
value of, 8, 13–14, 20, 192–95, 197, 228, 245–46
VCs and, 9, 12, 14–15, 30, 39, 192
writing of, 8–9, 12–14, 17–18, 20, 27, 166, 190, 192–95, 197, 203–5, 207, 228, 245–46
Butterfield, Herbert, 78
cancer, 95–96
Candy, Don, 108
capital, 7, 15, 40–41, 132, 194, 229, 250n
copycat entrepreneurs and, 152, 155, 157
as resource for success, 219, 221–23
see also venture capital funds
cargo cult metaphor, 188, 194, 204
Carlucci, Bob, 146–49, 152, 211
Carnegie, Andrew, 68, 244
causality, 187–88
Center for Advanced Retailing and Technology (CART), 67
Challenge Based Learning (CBL), 213–18, 243
Chang, Morris, 88–89
Chick-fil-A, 157
Chobani, 184
Ciocca, Art, 211
and big companies as schools for startups, 118–23, 127–28, 132–35
Coke and, 118–20, 123, 133–35, 229–30
Gallo and, 119–20, 128, 133
Cisco, 10, 13, 62, 245
Coca-Cola, 118–20, 122–23, 128–29, 133–35, 137, 229–30
Collison, Patrick and John, 33
comfort, 21, 81, 93, 95, 97
communication, 37, 176, 179
and big companies as schools for startups, 123, 125, 130
entrepreneur’s curse and, 109–10
and motivation of entrepreneurs, 80–81
as resource for success, 219, 222–23
companies:
built to flip, 15–16
business to business (B2B), 3–4
business to consumer (B2C), 3
of families, 66–67, 71, 120
as schools for startups, 117–35
starting of, see startups
threat of big, 244–45
competitors, competition, 26–27, 138, 203, 208, 240, 242, 245, 252n–53n
athletes and, 227–28
and big companies as schools for startups, 118, 120–21, 124, 128, 131, 133
business plans and, 14, 193–94
copycat entrepreneurs and, 153–54
DiMare and, 167, 174
entrepreneur’s curse and, 104, 106
failure and, 171, 174–75, 177, 181, 183–84
Kauffman and, 32, 61
and motivations of entrepreneurs, 61, 66–67, 69, 84–85, 93–94
Corner Bakery, 151
customers, 16, 22, 27, 29–30, 39, 50, 200, 205, 229, 241, 246
and big companies as schools for startups, 123–28, 130, 133–34
and characteristics of entrepreneurs, 24–25
copycat entrepreneurs and, 139, 142–45, 149–51, 154, 156–57
DiMare and, 167–68, 174
and education of entrepreneurs, 35–36
entrepreneur’s curse and, 102, 110, 112–14
failure and, 174–75, 181
Franano and, 163, 171
Gladwell’s story and, 137–38
healthcare economics and, 5–6
helping them like your product, 238–40
and importance of sales, 45–46
Kauffman and, 32, 61
Levin and, 3–4
monthly diaries and, 223–24
and motivations of entrepreneurs, 52, 61, 66–67, 70, 75, 83–86, 88, 96–97
planning and, 208, 223–24
resources and, 220–23, 243
Schramm’s startup and, 7–8, 46, 239
vision-platform-product testing-scale iteration and, 218–19
Dan (Kauffman employee), 51–53, 71
Dean & DeLuca, 139
decision making, 6, 31–32, 43–44, 192, 211, 214, 239–40, 245
and big companies as schools for startups, 118–19, 122–23, 125, 132
and characteristics of entrepreneurs, 25–26, 28
copycat entrepreneurs and, 145, 152–53, 158
DiMare and, 168, 174
dyslexic entrepreneurs and, 62, 64
and education of entrepreneurs, 34–35, 212, 217–18
entrepreneurial moment and, 28, 229–30
entrepreneur’s curse and, 100, 109, 111
failure and, 174, 177, 184–85
Foster and, 189, 191
managing chaos and, 237–38
mentors and, 200, 203
and motivations of entrepreneurs, 56, 58–59
, 61–62, 64, 67, 70, 84, 86–87, 90–91, 93, 95, 97
OODA Loop in, 216–17
planning and, 12, 208–9
resources and, 221, 241
Defense Advanced Research Projects Agency (DARPA), 79
Denali Flavors, Denali Ingredients, 88
D’Eredita, Mike, 227–28
diaries, 223–25
Diebold, 123–24, 128–29, 134–35
DiMare, Anthony, 166–71, 173–75
Dion, Celine, 56, 211
Disney, Walt, 12–13, 159, 197
Doerr, John, 164–65
Dollar Shave Club, 9
Dupey, Michael, 22
Dyslexic Entrepreneurs Network, 65
Dyson, James, 140, 218–19, 234, 236, 240
comparisons between Head and, 103, 110, 115
comparisons between Kasbar and Stebbins and, 114–15
vacuum cleaners and, 99–103, 110, 115, 218
Dyson Institute of Technology, 115
Edison, Thomas, 11, 42, 62–63, 100, 141, 164, 232
employees, employment, 2, 11, 15–16, 18, 23, 26, 30, 178, 200, 205, 216, 236
and big companies as schools for startups, 122–23, 125, 128–29, 131–33, 135
copycat entrepreneurs and, 138–39, 141, 146, 149–50
DiMare and, 167–68
and education of entrepreneurs, 34–35
and entrepreneurs as employers, 43–45, 61–62, 220
entrepreneur’s curse and, 105, 110–13
job creation and, xii, 22, 48, 197, 246
Kauffman and, 61–62
of Kauffman Foundation, 51–53, 71
luck and, 50, 210
monthly diaries and, 224–25
and motivations of entrepreneurs, 52, 56, 58–62, 78, 82–85, 87, 93, 98
resources and, 219–21, 243
and working for yourself, 58–62
engineers, engineering, 41, 73, 130, 205, 209, 215, 252n
DiMare and, 166–68, 174
and education of entrepreneurs, 36–37
entrepreneur’s curse and, 99–100, 102–4, 106–7, 109, 115
entrepreneurship vs., 189–91
Foster and, 189–90
and motivations of entrepreneurs, 78, 89, 93
union of design and, 100, 102
entertainment, 55–57, 80–81, 139, 252n
entrepreneurial accelerators, 41, 45, 198–99, 228
entrepreneurial moments, 28, 60, 83, 98, 126, 229–30
readiness for, 229–30
entrepreneurial partners, 144–45
entrepreneurial synergy, 148–49
entrepreneurs, entrepreneurship:
academic courses on, 11–14, 17–18, 20, 30, 54, 68–69, 73–74, 148, 166–67, 189–95, 203, 251n
accidental, 229
attractiveness of, 9, 250n
characteristics of, 2, 6, 20–28, 30, 33–34, 37, 68, 78, 82, 99, 140, 148, 150
co-, 146–47
copycat, 137–58
curse of, 99–116
definitions of, 21–22, 47, 148
discovery, 23
as dyslexic, 62–66
education and training of, 31–32, 34–37, 45–46, 49, 52, 54, 68–69, 73–74, 110–11, 117–20, 133, 137, 166–67, 189–95, 203, 212–14, 216–18, 227–28, 245, 253n
Everyman, 10, 229
memes on, xi–xii, 1–2
merchant-, 23–24, 205
positive public perception of, 68–70
replicative, 23, 140
resources for nascent, 241–44
role of money for, 47–49
social, 48, 250n
spin-out, 23, 121–35
stereotype of, 33, 127
supportive ecosystem for, 12, 16–18, 20, 196–98, 204, 244, 253n
telling truth to, 46–47
time of, 109–10
unscrupulous, 157–58
what they do, 21–22
Evolve Biosystem, 185
Exit, Voice, and Loyalty (Hirschman), 135
Facebook, 14, 37, 41, 69, 179, 183, 246, 250n
failures, failure, 23, 31, 157, 197, 203, 214
avoidance of, 25, 28, 160, 166, 170, 172–85
of entrepreneurs, 4, 48, 159–60, 163, 165–66, 168–82, 184–85, 231, 240, 245
making innovation happen and, 231, 233
planning and, 208–9
regulations and, 177–79
research and, 170, 173–76, 178
and role of money, 47–48
of startups, 2, 4, 18, 20, 25–27, 30, 37, 40, 43, 45–47, 69, 71, 159–60, 163, 165, 168, 170–84, 199, 205, 222, 231, 236
Fairchild Semiconductor, 10, 129–30, 134
Fairchild Camera, 129–30
family businesses, 66–67, 71, 120
Farnsworth, Ted, 32
Feynman, Richard, 187–89, 194
Filet-O-Fish, 149–50
FIRST Robotics, 252n
flexibility, 26, 45, 78, 104–5, 179–80
Ford, Henry, 26, 62–63, 75, 110, 144
Foster, Denny, 189–92, 195
Foundry, The, 253n
Franano, Nick, 160–63
failure of, 163, 170–72, 185
Proteon and, 162–63, 177, 233
franchise agreements, 152–53, 155–56
franchises, franchisors, franchisees, 1, 23–24, 205, 207, 218
asking for information from, 154–55
of Carlucci, 147–49, 152, 233
as copycat entrepreneurs, 144–58
expert advice for, 157–58
as first businesses, 152–58
profitability of, 155–56
questions for, 153–57
successful, 150–51, 156–57
support for, 156–57
Fry, Jeremy, 100
Gallo Brothers, 119–20, 128, 133
Garmin, 130–31
Gates, Bill, 1, 10–11, 13, 41, 48, 159, 246
GEICO, 88, 252n
General Electric (GE), 11–13, 42, 117, 146, 232
George, Jeff, 239–40
German, Bruce, 184–85
Gladwell, Malcolm, 137–38, 204
global positioning system (GPS), 79, 130–31, 176
Goodwin, Leo, 87–88
Google, 13, 38, 79, 82, 140, 176, 197, 201
GoPro, 38
Graham, Paul, 41, 43, 236
Green Hills Farms, 66–67
Grey Poupon, 138, 140
growth, 10, 18, 22–23, 42, 48, 179, 198, 218–19, 221, 250n
and big companies as schools for startups, 117, 119–24, 127–29, 131–32, 135
copycat entrepreneurs and, 145, 155, 157
and education of entrepreneurs, 34–35, 212–13
entrepreneur’s curse and, 105, 113–14
failure and, 176, 183–84
of ideas, 183–84
incubators and, 196, 253n
and motivations of entrepreneurs, 52, 66, 71
planning and, 207–8, 223
startups and, xii–xiii, 14, 22, 27, 235–36
Hawkins, Gary, 66–67, 71
Head, Howard, 140, 177, 218–19
comparisons between Dyson and, 103, 110, 115
entrepreneur’s curse and, 102–10, 114–16
on entrepreneur’s time, 109–10
helping customers like your product and, 239–40
innovativeness of, 104–5, 109, 114–15
Schramm’s relationship with, 108–9
skis and, 102–6, 109–10, 114–16, 211, 218, 239
tennis racquets and, 106–10, 115, 239
health, 4–8, 29, 123–25, 153, 229
failure and, 178, 181–82
and motivations of entrepreneurs, 61, 79–81, 89–92, 95–97
Schramm’s startup and, 6–8, 46, 209
Heinz ketchup, 137–39
Hewlett-Packard (HP), 13, 34, 117, 197
Hirschman, Albert, 19, 135, 208, 232–33
Hollingsworth, Rogers, 77–78
Home Depot,
24, 123
hospitals, 5–8, 29, 161, 211, 249n
and big companies as schools for startups, 123–25, 135
and motivations of entrepreneurs, 95–96
Schramm’s startup and, 6–7, 46, 209, 238–39
IBM, 13, 35, 42, 62–63, 117, 122, 245
iBot, 164
ideas, xi, 10, 23, 30–31, 41, 47, 74, 164, 204, 229, 234, 241–45
and big companies as schools for startups, 121–22, 129, 134
copycat entrepreneurs and, 140–42, 146–47, 149, 157–58
DiMare and, 166–67, 169, 174
Dyson and, 218–19
entrepreneur’s curse and, 99, 110, 115
failure and, 172–74, 176, 178–84
Foster and, 189, 192
Head and, 218–19
incubators and, 189, 196, 198
luck and, 50, 210
making innovation happen and, 231–33
and motivations of entrepreneurs, 53–54, 60, 70, 78
planning and, 12, 193–95, 197, 207–8, 224
protecting and growing of, 183–84
resources and, 219–20, 222, 241–43
and startups as life defining, 235–36
innovators, innovation, xi–xii, 1–2, 27, 29, 46, 49, 164, 218, 250n
Apple and, 213, 215
and big companies as schools for startups, 117, 121–23, 125, 129, 131–32, 134–35
and characteristics of entrepreneurs, 26, 33–34, 148
copycat entrepreneurs and, 139–45, 149–50, 152, 157
and education of entrepreneurs, 34–36, 74, 212
entrepreneurial moment and, 229–30
entrepreneur’s curse and, 99, 101–2, 104–5, 108–10, 113–16
failure and, 166, 184
incubators and, 196, 198
Kauffman and, xi, 61
making it happen, 230–33
and motivations of entrepreneurs, 52, 54, 57, 61, 65–67, 70–71, 75–79, 81–82, 86, 89, 92–94
planning and, 26, 208, 223, 233, 242
resources and, 219–20, 244
and threat of big companies, 244–45
traits of, 76–78
and types of entrepreneurs, 22–24
and what entrepreneurs do, 21–22
Intel, 10, 13–14, 117, 130, 245
International Harvester, 143
Internet, 9, 79, 110, 141, 165, 193, 213–14, 223, 228
failure and, 170, 176–77
Levin and, 3–4
and motivations of entrepreneurs, 53, 57, 69, 82–83, 91–92, 96–97
vision flexibility and, 179–80
inventors, inventions, 11, 22, 28, 30, 34, 37, 209, 219, 232
copycat entrepreneurs and, 140–43, 148–50
of entrepreneurial partners, 143–45
entrepreneur’s curse and, 102, 109, 116
failure and, 172, 174, 176, 181
Kamen and, 164–65
and motivations of entrepreneurs, 51–52, 54, 58, 71, 75–77, 79–80
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