Let us begin today with a quick quiz? Name some entrepreneurs. The odds are the top-of-mind names will be some mix of Bezos, Jobs, Musk, Zuckerberg, and Gates. All such answers would be true but, despite what you see and hear from the media, they are only the tiniest sliver of entrepreneurs in both the United States and globally.
The 18th century economist/banker Richard Cantillon** appears to have been the first person who defined what an entrepreneur is. His definition is logical and deceptively simple and hinges on only two facts:
1) They work for themselves
2) They were willing to accept financial uncertainty that is a given in self-employment.
So, an entrepreneur does not have to be a Silicon Valley whiz kid who cashes out for a billion +dollars when his company goes public. A farmer, an owner of a car repair shop, a coffee shop operator are all entrepreneurs even if the media and population at large do not see it. They often live a precarious financial existence and most of their business ventures fail. Some make it but on the third or fourth try.
Today, most colleges and universities have a course or two in some form of entrepreneurship. The bigger universities and some MBA programs have a major or concentration allocated to the discipline. Some, with huge endowments and proximity to large Venture Capital pools, can get students introduced to deep pocketed players in tech. They have a smooth pitch deck at the ready and can last for a long time waiting for a break due to their parent’s affluence. On the other hand, the young dreamer from the hinterlands sleeps on someone’s couch (for a few thousand a month), showers at the gym and tries to have coffee with someone whom he thinks is a “player” in this exciting tech world. Very few of these unconnected people every breakthrough and launch their dream.
Millions of self-employed people do live their dreams. To me, they have always been the backbone of America. They pay their taxes, are involved with their communities and have their feet on the ground.
They do not fair get coverage in the media. What is a hired worker? They get a regular salary, report to a boss, and operate within clearly and oftentimes carefully defined rules. The bootstrap entrepreneur just “has to be their own boss” and accepts the financial roller coaster ride that they are on in their small business.
I once exchanged e-mails with a professor at a VERY prominent university and told him how much I enjoyed his article about venture capital (VC). He thanked me but annoyed me by dismissing the smaller players when I asked him about the role of the smaller entrepreneurs. Then, he really annoyed me. He expressed open disdain for “lifestyle entrepreneurs” who are not dedicated to their business.
Okay, a lifestyle entrepreneur is an entrepreneur but on their own terms. The business is important to them but is not an all-consuming passion and is generally not how they define themselves. Let me give you a great example. Some years back, I was stuck in a small city working on a major project for a big client. Each day, I would get a morning coffee or a lunchtime sandwich at a small shop near my client’s headquarters. On my last day, I arrived around 2:15 pm as a client meeting ran really late. The lady who owned the shop was leaving. I said something to the effect that it was nice she could leave early. She laughed and said “I leave every day at this time. When I opened this business, I promised myself that I would always be there to pick up my children from school.” She went on to tell me that she work in corporate America for 15 years and hated it and was worried about her health. Now, she rises early and meets her baker to open the shop. Her husband gets the kids up, makes breakfast, packs their lunches and takes them to school. She says that she has a “normal” family life these days and loves it. Her business will never be franchised but she is happy. My distinguished professor does not see that her life is a success yet she is still very much an entrepreneur. There are many thousands such as she and they have my admiration and respect. The pompous professor does not get it.
Noted economist Joseph Schumpeter stated that much progress in a market economy came from a term he popularized dubbed “Creative Destruction.” Innovation crowds out the status quo and old habits are dropped as new ways to do business and make things emerge.
I have no argument with the reality that Bezos, Jobs, Zuckerberg and Gates have changed our lives in largely positive ways. Please do not forget (even though most media have) the millions of gutsy people who have gone out on their own and changed their little corner of the world. They, too, are entrepreneurs.
If you want to contact Don Cole directly, you may reach him at doncolemedia@gmail.com or leave a message on the blog.
**Richard Cantillon was a fascinating character. Irish born, he was a successful speculator and banker in Paris. Then he got in involved with world class swindler John Law. He left Paris and moved to London. Angry people who said that he owed them money burned his house down. He was said to perish in the house. Others claim, a man looking very much like Cantillon popped up in remote Suriname sometime later calling himself Chevalier de Louvigny!
