Last week, the Washington Post article, “More businesses are closing than starting. Can Congress help turn that around?” grabbed my attention. My response was whether or not all the startup support power laid in the hands of our nation’s policy makers.
The doom-stricken headline also caught the eyes of two Harvard Business Review bloggers, Daniel Isenberg and Fernando Fabre. Their response? Give me a break. In their article, “Don’t Judge the Economy by the Number of Start-Ups,” the pair dismisses the idea that lots of startup failures are a definitive sign of a crumbling economy. They state, “Isn’t it a basic economic tenet that well-functioning markets will have many entrances and exits, that weak businesses (including thousands of one-person enterprises) will get recycled quickly (fast failure) and that over time, vigorous, well-regulated markets will support strong and growing companies, which in turn provide dignified jobs and prosperity?”
They challenge some of the latest findings (from some of the most well respected research institutions I might add) that American innovation and entreprenruship is on the decline and introduce the idea of “scale-ups” over startups. The notion is that scale-ups— (both young and old companies run by growth-driven, entrepreneurial leaders who, at any stage of their businesses’ lives, might launch a new growth trajectory—are the companies that have the most impact on the economy.
Take a read through the article and see what you think. Is startup failure overall a dismissible statistic, economically speaking, as long as these scale-ups are still around? Share your thoughts on this and any other interesting articles on entrepreneurship on Twitter using #TopOfMind.
Don’t Judge the Economy by the Number of Start-Ups
A common assumption is that new businesses are good for the economy. A recent Washington Post piece stated, “More businesses are closing than starting. Can Congress help turn that around?” The question is though, is starting more businesses always a good thing? The basis of free enterprise is functioning markets will allow for strong businesses to thrive and the weaker ones to fail. The strong American companies are surviving and are growing beyond 16 years.
Equity Crowdfunding at Year One, What’s The Impact?
534 out of 3,361 companies hit their equity crowdfunding target in one year. According to Crowdnetic, $217.7 million was raised, which averages $407, 685 per company. The sectors that are leading the way in equity crowdfunding are services and technology, consumer goods, financial products and healthcare. We still have yet to tap into the unaccredited market. But when we do, 180 million adults will have the opportunity to add to the funding pool.
Meet the game developer who codes entirely with his feet
Max Strzelecki was born without arms. Therefore, he codes entirely with his feet using a regular mouse and keyboard. He released Warlock’s, a magical-action game, on Kickstarter and reached his goal of $25,000. He started teaching himself to code at age ten.
The Biggest Dating Problem Entrepreneurs Have
Entrepreneurs are typically 100% involved in their business because they are responsible for most aspects of the business initially. Many entrepreneurs approach relationships like they do transactions for their company. Many entrepreneurs try to find a great love rather than simply looking for love. They do not want to settle, which is why many entrepreneurs are single. Entrepreneurs just might miss out on an opportunity to meet someone. So rather than holding on to a mediocre relationship, fail fast and move on.
Are You Making These Common Entrepreneurial Mistakes?
Here are some common mistakes that entrepreneurs make.
- Going with your gut feeling alone.
- Failing to Market
- Ignoring Your Customers
- Lacking Focus
- Failing to Hire Help