Marquis on Entrepreneurs
Significant vacuum created in agriculture, healthcare, education, and environment life support systems that have spurred the growth of “innovators” called entrepreneurs.
The global pandemic has recently contributed to the boom in startups around the world. Primary reason? Workers who were laid off and started their own business. But also, awareness of critical support of fundamentals has rung an alarm bell.
Changing consumer demand is also spinning up demand. The number of startups in the IT industry grew by 20% between 2019 and 2020.
American entrepreneurs filed 4 million applications to start new businesses in 2021 as of September, compared to 3 million at the same time last year. In France 84,000 new businesses were registered as of October, a 20% increase from the previous year. Japan registered 10,000 new businesses last year, up by 14% from 2019. And in the U.K. the number of registered companies increased by 30%.
Forbes called it – a “startup frenzy.”
But failure threatens success. What does it take to succeed? Why do so many fail?
There are also different definitions of failure. If failure means liquidating all assets, with investors losing all their money, an estimated 30% to 40% of high potential U.S. start-ups fail.. If failure is defined as failing to see the projected return on investment—say, a specific revenue growth rate or date to break even on cash flow—then more than 95% of start-ups fail, based on research.
“Such a natural accelerator of startups as the pandemic has undoubtedly had a positive effect on the global economy,” wrote Yusuf Berkan Altun, a technology entrepreneur, angel investor and co-founder of Suixo. He went on to say, “However, at the same time, some of the newly formed enterprises may not be able to withstand competition or find an application and are likely to quickly go bankrupt.”
“Entrepreneurs succeed when they overcome the barriers of a startup, at early stage, at mid stage and even when the balance sheet is at an envious state,” noted Stephen Anderson, Founder of Marquis Advisory Group (www.marquisadvisory.com), a Philadelphia headquartered management firm focused on Agriculture, Entrepreneurs, Environment and Education. During Covid, experienced entrepreneurs with a profitable business were swept down into the sewer. Why? Unwillingness to be agile and adjust. Not taking the time to assess and adjust. Not knowing what could be done.”
Encouragement comes from the fact that globally, there is an entrepreneurial economy.
“Wrenching structural changes in the nation’s industrial base have largely obscured an important new reality: small, new businesses have formed the main driving force for the nation’s economic growth.” Peter F. Drucker – Harvard Business Review – January 1984.
Another industrial revolution is in play.
One of the earliest recognized Industrial Revolutions began in Britain in the 18th century and spread across Europe and into North America. The drives were not unlike those we have today,
Emergence of capitalism, startups in coal mining, and the agricultural revolution.
At that time, absolute monarchs ruled over vast empires and controlled the economy. There are some signs of that today in China, Russia and other countries. Same control, but by “elected” monarchs.
However, the lock was unlocked in the 18th century by prominent thinkers like Scottish writer Adam Smith who wrote: “Of the Wealth of Nations” that is often credited with creating the foundation for capitalist theory in this 1776 book.
The critical source of power for industry at that time was coal. Little did we know that it was going to be the beginning of what we now add to the cause of our serious environmental issues.
In 1894, George Washington Carver became the first African American to earn a Bachelor of Science degree. Impressed by Carver’s research on the fungal infections of soybean plants, his professors asked him to stay on for graduate studies.
Carver worked with famed mycologist (fungal scientist) L.H. Pammel at the Iowa State Experimental Station, honing his skills in identifying and treating plant diseases.
In 1896, Carver earned his Master of Agriculture degree and immediately received several offers, the most attractive of which came from Booker T. Washington (whose last name George would later add to his own) of Tuskegee Institute (now Tuskegee University) in Alabama.
Washington convinced the university’s trustees to establish an agricultural school, which could only be run by Carver if Tuskegee was to keep its all-Black faculty. Carver accepted the offer and would work at Tuskegee Institute for the rest of his life.
Major creative entrepreneurs started the core of our life today. Alexander Graham Bell, in 1876 at the age of 29, invented the telephone and also the photophone, a device that enabled sound to be transmitted on a beam of light.
What is on the horizon? More or less success? Capabilities we cannot imagine becoming standard like Bell phone to cell phone.