Entrepreneurship as Social Evil

[cross-posted from nontrapreneur]

Little-e entrepreneurship is the charming eccentricity that drives business innovation in our culture and economy.

It’s a willingness to accept risks that others would shy away from, in exchange for eventual rewards nobody else can see.

It’s the Earliest Adopter’s enthusiasm for a fad that doesn’t yet exist.

It’s the heady taste of hubris that helps you move step past thinking I could do that, and actually give it a try.

It’s an inordinate willingness to ignore risks, to forge ahead, to plot a course into the unknown. On a promise.

Big-E Entrepreneurship is the cultural fetishization of that risk-seeking behavior, magical thinking and obsession. It’s taught in business schools. It’s the sole focus of some economic development institutions, it gets investors’ hearts racing, it’s the stated core of our government’s hope for the national future.

This cartoon “Entrepreneurship” has become a pervasive economic fetish.

Why is that a problem? Look:

Some young women are naturally beautiful, and also naturally thin. Our culture’s fetishization of Thin Beauty has fostered deadly anorexia, poor self-images among normal women, the sexualization of children, drug abuse, and more.

A real cottage in the country is unusual, and can also be pretty and restful. Our culture’s fetishization of Suburban Life has fostered an industry of chemical lawn treatments, greige developments at the edge of every city where the windows never open, social isolation, mortgage debt, financial crisis, the necessity of driving everywhere, and more.

It’s rewarding and healthy to play sports. Our culture’s fetishization of Professional Sports has built media empires and lobbying companies, offered false promise to disadvantaged youth, encouraged drug abuse by even school-age athletes, glossed over the effects on city centers, and more.

We’ve fetishized commerce and craft into shopping mall sprawl. We’ve fetishized the complex consensus-bulding of politics into talking points and intransigent argument. We’ve fetishized combat and national defense into gun sports.

In the same way these other unusual but natural extremes have given birth to social evils, the notion of big-E Entrepreneurship depends on over-exaggeration and over-generalization of natural but unusual extremes: the little-e entrepreneur’s eccentricities of risk-seeking, and magical thinking and obsession.

We’re told we can be “entrepreneurial” church members, “entrepreneurial” social activists, “entrepreneurial” artists, “entrepreneurial” employees.

Think about that. What does that really mean?

You don’t need Angels or VC to change the world. They need you. They need you to rush ahead. They need lots of you in their portfolios; your rare returns are their sole resource. You are their crop. You are their slot machines.

You don’t need to monetize everything, or promise ten-fold returns. Financial capital is not the only kind. A project can make you rich in social capital, intellectual capital, individual capital.

You don’t need to grow forever, or to burn down to bankruptcy. Maybe what you’ve done so far is enough. Even if you disappoint business culture because you’ve started a “lifestyle business”, at least you still have a life to live.

You don’t need to think of people as tools and resources. People are people. This institution you’ve started must be for the people who comprise it, more than they are expected to work for it. Never lose sight of the fact that it is an it.

You never have just one goal. Your venture is not your world. Even the most obsessive investor will admit that reducing risk is as much a goal of any venture as increasing returns. When you begin to believe some subset of “winning” is the only goal, when your investors drive you to forge ahead at all costs, when your instinct is to cut away the parts of your life that other people think are important just to make it to launch? That’s when you’ve become a danger to yourself, and to society.

Big-E Entrepreneurship is just like Hollywood and the NBA and the Billboard charts and the bridal magazines. You are not going to make next Google or Facebook. Your idea isn’t as original as you imagine, your skills aren’t all you need, your beautiful office in a fashionable ZIP code won’t make your product any better.

And those successful, rich people you find egging you on, “advising” you and “supporting” you and “connecting” you?

They’re just as caught up in the illusion as you are. Pity them. It was their luck that got them through the maze. Not their skill, not their mentors, not their investors, not their “best people”, and certainly not The System as a whole.

The culture reinforces them at every turn. Is it any coincidence they’re surrounded by all the evidence they need to keep believing that their illusion is universal and valid? They’re swimming in success. They see evidence of the System of Accepted Business Practices and Rituals working around them, all the time.

Because they have arranged life so they never see it fail. They’re not allowed to see anything else as success.

Where are the Big-E Entrepreneurs whose ventures didn’t grow? Didn’t hit it big? They were torn down for parts and raw materials, skillsets and capital, and dumped right back into hopper to be fed into the machine.

Who are you? If you define yourself by your project, I don’t think you’ve answered the question.

What do you want? If you only mention your project, you’re a liar.

What are the risks? If you don’t know, I can start your list with this one: “I don’t know the risks”.

What will be enough? If you don’t have any idea, I’ll guarantee that “more” isn’t the only answer.

What will you sacrifice? If you didn’t say “myself”, then take a moment to consider the Big-E Entrepreneurship complex out there, waiting and ready, yearning to drop you into the hopper.

You’re a pile of raw materials.

Portfolio filler for investors.

Promotional material for your city.

Future donating alumni of your University.

The cover of unsold magazines.

Oh yeah, and you did some stuff once. What was that thing, that company you did back when?

That was your vision? Huh. Who knew?

Mutual Business Coaching?

I find myself disenchanted with what you might call “traditional” business culture lately. Now you, a savvy Interwebz reader, may be the sort of person who lives on a Coast near a Valley or in a town with a Needle, the kind of town with lots of people and loads of young up-and-coming goateed creatives and stuff. Living as I do in the middle of flyover country, I’m not sure “traditional business” means for you what it does here: lots of golf, inordinate striding, breakfast networking meetings, calling important people by their first names, and—the kicker, for me—a tendency to assume that people who made money in the last business cycle, or the one before that, or one a Long Long Time Ago, that those people are rich now because they are good businessmen.

This is the kind of self-reinforcing unexamined mythology that leads young entrepreneurs to their doom. You get an economic development infrastructure in place, you get boards and angel and VC investors all used to what they’re used to and standing by the claim that “business is always essentially the same no matter what the domain.” They set up boot camps and training seminars and they arrange these networking lunches and earnest young people in black suits or khakis show up and eat slices of pizza (at Tech Startup Events) or hors d’oeuvres (at Future Of Our Region Events), and they listen to that crap.

When I invest in a company, it’s the team I’m looking at. And by that I mean: I want to see somebody who reminds me of me when I was a kid.

When I hear an pitch, I need to understand it in the time the elevator door takes to open. And by that I mean: (a) we live in a town with stringent “human-scale” building height restrictions, so (b) you can tell we’re pretty fucking provincial so use only a few small words I’ve known since I was on the football team.

When you’re getting ready to launch, you need to get your business plan ready and make a convincing case for your market and your prospects over the next five years. And by that I mean: nobody ever reads the damned things, but at least we know we can tell you what to do and expect you to listen to your betters, sonny boy.

When you’re trying to raise serious money, you need somebody in charge of the firm who’s familiar with the language of business, of marketing, and the culture of startups. And by that I mean: When somebody paying more attention than me tells me you have a clue, I’ll stiff you with some tried-and-true club buddy of mine and you’ll fucking do what he says if you know what’s good for you.

And so forth.

Of course, I know you don’t live in this imaginary town I do. These are all straw man exaggerations. I’m just resorting to hyperbole to stage my own pitch. Right?

You betcha.

That said, and strawmen aside: I think smart people are actually smart, and that dumb people mess up new businesses.

There’s a sign on the administration view of every website I’ve run for ten years. It’s on my laptop’s desktop, too. It’s a reminder to me, as a manager and a meddler and a planner and a guy who’s trying to help and at the same time make a buck. Every one of these reminders says the same thing: This doesn’t work the way you think it does.

The biggest danger, in my mind, to a person starting a business—whether it’s some hare-brained entrepreneurial thing, or a nonprofit, or a “lifestyle” business (a term I despise)—is taking advice from people who assume they succeeded because of what they did.

The core of my advice to folks wanting to found a business is simple enough to pass along here: listen to “coaches” and “bootcamps” and economic development people only enough to convince them you respect them, and to learn what they expect so you can use that to your advantage, but don’t let them fuck with your money or ideas.

Notice I didn’t say stay away from them: I said be nice, try to really listen, do your best to learn, and along the way do the minimum amount necessary to ingratiate yourselves to them. If you can’t do those things, you actually do need a “people person” around, because it’s all about risk amelioration, not financial returns. Because you’re doing this to minimize the disruptive influence of their received wisdom.

Here’s why: These people succeeded by chance. Quirks of fate. They happened to sell off their companies or execute some other exit strategy just before some random economic downturn. They had rich relatives. They happened to be in the room when some dude wanted to invest in a startup. They had a smart administrator who kept them out of the research wing. They were middle managers in some global giant fucking firm and (more’s a pity) never heard a real human idea in their lives, and now they think they can tell you how to run your business. They go to meetings with their own clones and nod and shout Hallelujah whenever somebody utters a mantra about “invest in the team” or “business savvy” or “demographic targeting”. They not only imagine, they will say outright that every business is essentially the same, and that what matters is making the right mystical passes in the right order and also running it by your guts.

Bullshit. These people are human beings.

That said, they’re the small fraction of human beings who have the goddamned money. It’s not your customers who are going to make your new idea into a company, Startup Grrrl: it’s those fools with all the money.

Let me be as precise as I can be: human beings are stupid. You are too, by the way. But they are moreso, because they’ve had success after navigating an uncertain course through the ratmaze to their perceived cheesy Winning State. And when that happens, our intrinsic human mental wiring kicks in and all of a sudden they’re doing pattern-recognition on scant data. They’re superstitious. They are poor at modeling. They suck at generalizing, and for the most part their culture is founded on principles of reinforcing their notions.

[Like yours is, and mine is... but leave that for another day.]

Risk, reward, reinforcement. So strong, they don’t even have to repeat it to get it engrained; they just play off one another.

This doesn’t work the way they think it does.

Here’s what I think, instead.

Save your money, if you can, and don’t burn it at the altar of the priests in black turtlenecks and sports coats. Hang out with the ones you can, as stated above, but don’t waste money. Don’t risk your money or your time on them.

Instead, find five other startups. Seriously.

Form a Guild. Form an association that lets you each do what you want, spread the work around, support one another. Form a community of 30 people, not three, that can demand the attention (when needed) of one rare but actually useful business advisor at a time, and aggregate your risks across all your firms, and kick the bastards out when you’re done with them.

Coach each other.

I believe smart people, people with ideas like you have, are actually smart. And I think people with new ideas are more likely to understand the one true thing I plaster all over my own sensorium: This doesn’t work the way you think it does. This doesn’t work the way they tell you it does. This doesn’t work by formula, by superstition, by the novel application of pat anecdotal hand-waving or ritualized networking or in-group marketing to people who can’t bother to learn the difference between a social network and a website before telling you how to run your company.

There is no heuristic.

What you need is advice on how to fill out forms. Names of people who give out money, and what they expect. Examples, hard and factual, of business plans that have actually been followed. Access to people who are running businesses like yours, and right now.

What you don’t need is pabulum. You don’t need obfuscation, a gatekeeper who will let you get access to the people they convince you will help, or who wants to dabble and sees your idea as a good starting point. You don’t need people who are a bad match for your culture; any asshole who tries to change that culture you have now, no matter how much a n00b you think you are, without first convincing you beforehand that there are measurable returns and you can undo the changes if things go wrong? They gonna fuck you up.

Hell, you don’t need anybody at all whose advice doesn’t come with a warranty and a money-back fuck-off clause that kicks in when they give you bad advice backed by misleading credentials.

In other words: Sure, you need expertise you don’t have, but treat your “advisors” the same way you would treat your accountant: protect yourself from stupid people.

Any human being is as good as another, when it comes to common sense. Unless they’ve presumed they are winners because they did something a long time ago, under completely different circumstances.

When that’s the case, they’re a liability.

Further: If you want a good example of how economic development professionals can undermine perfectly functional ideas and business models by just not knowing what the words mean, have a look at this.

Melissa Thompson is a social marketing moron

Hello,

Recently I visited your website http://notanemployee.net;while visiting your site I noticed that you link to http://vielmetti.typepad.com at this address:http://notanemployee.net/blog/2008/05/ann-arbor-town-hall-meeting-on-coworking/. As we are closely related to them, I would love to exchange links with your website, currently there are about 5,000 – 7,000 people per day that goto my site and search for information, Therefore I would to link to an excellent site like yours.

I have taken the liberty of adding your site to my home page:

Melissa, this extract from an email you’ve sent me? This is the sort of thing that makes you not only look like an idiot personally, it ruins the reputation of your firm as well.

Maybe your name has been misappropriated by some malefactor. Maybe you’re just filled in the blanks, like the websites your email makes clear you’ve never read. Maybe you’re not even a Realtor™, but some high school student or a granny whose name was scraped just like our sites’ names were.

Doesn’t matter: indeed, I’m really talking to the useless fucking spam bot who sent the email.

Now normally spam isn’t worth commenting on, these days.

But if you think about it, this is as good an example as any why I try so hard to shoo away marketers, personal brand managers, social media gurus, and the other earnest but clueless folks whose living depends on convincing third parties they can “help” them through by leveraging social media. Folks: using social media to market a person or a product is not social.

It’s abuse. It’s going to backfire on you and your clients. It leads to crap like this.