My palms were moist as I shared a U-shaped table with 12 strangers this past Friday morning.
We were all freshies, waiting to matriculate into DePaul University’s Doctorate in Business Administration (DBA) program. It was day one of our cohort’s coming three-year journey together.
When you meet those interesting, successful people in the startup community—the serial entrepreneur redefining yet another industry or the marketing exec tossing out incisive insights as if she were seeding her lawn—have you noticed how often they reference favorite authors and book concepts?
Take note the next time you have the opportunity. You’ll notice they discuss their own experiences and ideas in language garnered from the books they’ve read.
Books expand awareness of both language and higher-level concepts, literally making readers more intelligent. And, successful people read, at least, an order of magnitude more than the average American.
Virtually every company leader will say they believe continuous improvement and being a “learning organization” are requirements to stay competitive. But, do leaders act on this belief—or is this just what one says in polite company?
In their 2015 article, “Why organizations don’t learn,” Francesca Gino and Bradley Staats explain how “biases cause people to focus too much on success, take action too quickly, try too hard to fit in, and depend too much on experts.”
The authors break down the reasons for these biases and recommend specific changes leaders can make in their organizations to mitigate against them.
There is an ongoing debate about whether investors should bet on the jockey or the horse, i.e., the founders’ abilities to succeed or the quality of the entrepreneurial opportunities pursued. There is no doubt, though, that high-quality opportunities are an important ingredient contributing to startup success, particularly when they revolve around technological innovations.
But, how do entrepreneurs discover opportunities? Scott Shane, in his 2000 article, “Prior knowledge and the discovery of entrepreneurial opportunities,” studies eight different companies that launched in an effort to exploit the 3DP™ process in different ways. Shane’s research shows “entrepreneurs discover opportunities related to the information that they already possess” and those discoveries are immediate epiphanies—not the result of systematic search and evaluation.
Human cognition research suggests that we are not a totally rational species: Thinking errors and biases are part of the human condition. Baron’s 1998 article explores how entrepreneurs think differently from non-entrepreneurs and how these differences could lead to an increased susceptibility to certain thinking errors and biases. He then examines five specific thinking errors and their relevance to entrepreneurs.
Humans are riddled with thinking biases. We rely on two different cognitive systems for decision making. System 1 thinking relies on intuition, whereas System 2 uses rational, deliberate reasoning. Unfortunately, both systems are imperfect and wrought with thinking biases that can lead to poor decision making. Soll, Milkman, and Payne, in their 2015 article, provide an assortment of methods to help managers identify and overcome some of the most common decision-making traps.
Bhide’s paper presents a strategic framework for entrepreneurs based on asking themselves three questions to clarify the goals for their business, pick the right strategies to achieve those goals, and importantly, determine if they can successfully execute those strategies. The framework doesn’t prescribe answers, but instead, “helps entrepreneurs pose useful questions, identify important issues, and evaluate solutions.”
Sixty-three percent of Americans desire self-employment. So what’s stopping them? And, are those who work for themselves really more satisfied than those working for others? In their 1998 article, “What makes an entrepreneur?” Blanchflower and Oswald analyzed data gathered from the United States and other industrialized countries, uncovering answers to these fundamental questions about who becomes an entrepreneur.
The authors’ analysis answers timeless questions still relevant to today’s aspiring entrepreneurs.
In Why I started this entrepreneurship site I explained my motivations for launching yet another entrepreneurship site. Now, I’m excited to tell you more about the content I have planned and, specifically, what you can expect to see in the coming weeks. A multitude of useful and entertaining blogs are available today from leading founders and […]
I started this entrepreneurship site for three reasons: I have had a lifelong fascination with entrepreneurship. Thoughtful writing forces a deeper level of understanding. I want to share both interesting research I discover and my experiences as a successful entrepreneur and technologist. A strategically-minded business will define a mission statement, or purpose, that provides a focus […]