The Origin and Evolution of New Businesses
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The Origin and Evolution of New Businesses
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Additional insights : The Origin and Evolution of New Businesses
Arnold Kling has an oustanding review of this book, but I wanted to add my two cents on the subject.
Basically, Bhide provides interesting insights into the entrepreneurs themselves as well. Entrepreneurs can generally be divided into two types: 1) those that plan a venture very carefully, and 2) everyone else. The former group gets most of the press because they tend to be associated with VC funding, corporate partnerships, and eventually IPOs. Careful planning can be a prerequisite to funding, but as the book notes, VC funding, especially with the amount of capital available today, does not automatically mean things have been well thought out.
In many ways, I am more intrigued by the latter group of entrepreneurs focused on the marginal businesses. They lack the pedigree (i.e. MBA education and experience) and resources, but create many more businesses. The real key is that these investments make sense. Unlike the current state of Internet investing, these entrepreneurs look to make low-risk bets (say $50,000 of money from family and friends), which can be turned into a big hit but also have limited downside risk.