Published on March 3, 2014
“Scale up is the New Startup” by Joe Haslam Executive Director, #OEMP Associate Professor, IE Business School Madrid, Spain Monday, 3rd March, 2014.
1. Startup 2. Scaleup 3. Drucker 4. Government 5. Capital
“Entrepreneurship and startups are not one and the same. Many startups are not entrepreneurial and much entrepreneurship is not about startups.” Scaling up is vastly harder than starting up It typically takes a decade or longer, not months or a couple years, to build a venture of value, with any semblance of robustness and return. The few that pop through in a few years are by far the aberration The entrepreneur is almost always swimming against the current. There is no explosion suddenly pushing him or her along
There are two distinctive views. The first is the popular view: that entrepreneurs are people who run their own companies, the self-employed or smallbusiness people. The second is Joseph Schumpeter’s view that entrepreneurs are innovators: people who come up with ideas and embody those ideas in high-growth companies.
“the majority of the world’s wealthy entrepreneurs acquired their riches by starting a business: 65% in America, 42% in Europe and 52% overall. Entrepreneurs tend to be highly educated: 45% of American self-made entrepreneurs have advanced degrees, a sharp contrast with the early 20th century, when men like Henry Ford dropped out of school to become tinkerers
“Without startups, net job creation for the American economy would be negative”
“A look at the age distribution of the world’s 500 largest listed companies showed that European ‘champions’ are generally much older than American ones, let alone those from emerging markets. “ “Strikingly, Europe’s corporate giants included only 12 companies born in the second half of the twentieth century, against 51 in the US and 46 in emerging countries; of these, only three were created after 1975 in Europe, compared with 26 in the US and 21 in emerging markets.”
The first is the world's most mature venture-capital industry. The second advantage is a tradition of close relations between universities and industry The third advantage is an immigration policy that, historically, has been fairly open A fourth reason for America's entrepreneurial success —“venturesome consumers”
Known as “J-Ro” around Facebook’s campus according to sources close to the company, Rothschild was by far the oldest person to work there when he started.
-- It was Drucker who introduced the idea of decentralization -- in the 1940s -- which became a bedrock principle for virtually every large organization in the world. -- He was the first to assert -- in the 1950s -- that workers should be treated as assets, not as liabilities to be eliminated. -- He originated the view of the corporation as a human community -- again, in the 1950s -- built on trust and respect for the worker and not just a profit-making machine, a perspective that won Drucker an almost godlike reverence among the Japanese. -- He first made clear -- still the '50s -- that there is "no business without a customer," a simple notion that ushered in a new marketing mind-set. -- He argued in the 1960s -- long before others -- for the importance of substance over style, for institutionalized practices over charismatic, cult leaders. -- And it was Drucker again who wrote about the contribution of knowledge workers -- in the 1970s -- long before anyone knew or understood how knowledge would trump raw material as the essential capital of the New Economy
"If you want me to do things only for ROI reasons, you should get out of this stock."
"In business a lot of things are, I call it, folklore. They're done because they were done yesterday and the day before. So what that means is if you're willing to ask a lot of questions and think about things and work very hard, you can learn business pretty fast. It's not the hardest thing in the world." “Throughout the years in business, I found something. I always ask why you do things. The answers you invariably get is, ’That’s just the way it’s done.’ Nobody knows why they do what they do. Nobody thinks about things very deeply in business, that’s what I found.”
“A company's primary responsibility is to serve its customers. Profit is not the primary goal, but rather an essential condition for the company's continued existence and sustainability” The need for "planned abandonment." Businesses and governments have a natural human tendency to cling to "yesterday's successes" rather than seeing when they are no longer useful A belief in what he called "the sickness of government." Drucker made nonpartisan claims that government is often unable or unwilling to provide new services that people need and/or want, though he believed that this condition is not intrinsic to the form of government.
“The most memorable stories in Hatching Twitter almost invariably involve Dorsey, who rises from his early programming days as an anarchist with a speech impediment to a man who co-founds two billion-dollar companies while styling himself as the psychic heir to Steve Jobs.”
“It’s a difficult market to get into because all of the credit history and information on the SMEs is stored in the incumbent, it’s not generally available
Research by the European Commission shows that 85% of net new jobs in the EU between 2002 and 2010 were created by small and medium sized outfits. But British business has long grumbled that getting hold of finance is too difficult the most important funding gap was for amounts between £250,000 and £1 million.
The number of public companies has fallen dramatically over the past decade—by 38% in America since 1997 and 48% in Britain. The number of initial public offerings (IPOs) in America has declined from an average of 311 a year in 1980-2000 to 99 a year in 2001-11. Small companies, those with annual sales of less than $50m before their IPOs—have been hardest hit. In 1980-2000 an average of 165 small companies undertook IPOs in America each year. In 2001-09 that number fell to 30
Venture Industrial Complex (VIC) -- a loose group of venture capitalists, bloggers, mentors, advisors, seed funds, accelerators, and conferences that feed the American fascination with all-or-nothing entrepreneurship for personal gain. You need deep insight into the trends driving an industry and the needs of customers in that industry, the stomach and nest egg to slog through years of uncertainty, self-awareness to change when things aren't working, confidence to surround yourself with people smarter than you are, and courage to be alone with your thoughts.
4. Sales Cures All. Know how your company will make money and how you will actually make sales.
1. Startup or Small business? 2. Scaleup is harder than Startup! 3. Drucker “focus on customer” 4. Don´t rely on government 5. Sales cures all
Thank You joehas at gmail www.linkedin.com/in/joehas twitter.com/joehas “The greatest pleasure in life is doing what people say you cannot do” Walter Bagehot 1826 - 1877
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