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What Schumpeter Got Wrong About Innovation and Entrepreneurship

Posted on Jun 5, 2016 in Articles, Authored, LinkedIn

Which is entrepreneurial, and which is innovative: Venture A or Venture B (real but disguised)? Venture A, an eight-year old startup with patents, a vision to disrupt a large growing market (think big data in a basic industry), $3 million of revenues, a $20 million operating deficit funded by investors, and an implied valuation of $200 million? The founders have 40% of the equity. Venture B, the eight-year-old acquisition of a 35-year-old copycat business (think generic drugs), no patents, that has grown in eight years from $37 million of legacy revenues to $1 billion, $200 million of operating surplus, and an implied valuation of $2 billion? The team also has 40% of the equity. You can hardly say both because, except the equity stake, they are diametrically opposed. Most people confuse entrepreneurship and innovation. Entrepreneurship and innovation are distinct...

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The Misconceptions of Entrepreneurship

Posted on Aug 12, 2013 in Book Coverage, LinkedIn, Print

Originally posted on Richard Branson’s Linked In page August 12, 2013 By Richard Branson In the past few decades entrepreneurship has been transformed from a dirty word into one of the most aspirational careers people strive for. So what does being an entrepreneur really mean? We’ve discussed how you would define the word ‘entrepreneur’ on LinkedIn before, but The Economist’s excellent Schumpeter column got me thinking about the subject again when it described entrepreneurship as: “The modern-day philosopher’s stone: a mysterious something that supposedly holds the secret to boosting growth and creating jobs.” The article points out the confusion around the purpose of entrepreneurship, as well as the motives behind what makes entrepreneurs tick. As the term has to encompass so many different personalities, businesses and viewpoints, it is only natural that misconceptions crop up. Nevertheless, there are some common traits...

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Entrepreneurship: Worthless, Impossible and Stupid?

Posted on Jul 16, 2013 in Book Coverage, LinkedIn, Print

Originally postedy by Vivek Wadhwa on LinkedIn, July 16, 2013 One of the best and most fun books I’ve read on entrepreneurship is by my friend Daniel Isenberg, titled Worthless, Impossible and Stupid: How Contrarian Entrepreneurs Create and Capture Extraordinary Value. Isenberg, who is a professor at Babson, challenges conventional wisdoms, presents great examples, and takes a global perspective. With his and the publisher’s permission, I am sharing this excerpt. Entrepreneurship is a contrarian process in which the entrepreneur uniquely realizes and reaps extraordinary value by seeing its potential where others do not, largely because the particular constellation of factors at that moment is perceived by virtually everyone but the entrepreneur as valueless. But the potential extraordinary value becomes actual because of the entrepreneur’s ability to recognize, realize (as in “bring forth”), and then reap the value that no one...

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