The only startup founders who can embrace failure are the privileged ones

http://qz.com/772173/the-only-startup-founders-who-can-embrace-failure-are-the-ones-privileged-enough-to-survive-it/

by bing_dai • 10 years ago

16 6 10 years ago

Aenima• 10 years ago

I agree with the gender disparity, but not race. The Kaufman Index of Startup Activity claims that more startups are from male entrepreneurs than female ones, but white entrepreneurs account for a lower portion of startups in 2014 than 1996.

The author cites studies on self employment in the United States. I think there is a difference between being self employed and an entrepreneur. For example, I can be a self employed contractor, but not aiming to grow a business as an entrepreneur would.

When it comes to tech startups I could see the industry remaining white and male dominated. Access to angel investors and VCs from a privileged network increases the probability of obtaining funding for a new company. This is especially helpful as more tech entrepreneurs are in school or recent graduates. If I am around college age trying to get a tech startup off the ground, can I find an investor without existing social contacts? Yes, but it will be much more difficult for me than the kid with the contacts.

internaut2• 10 years ago

This is why I advocate for what I think of as a zero marginal lifestyle.

If you can create a Passive Tiny House with renewable energy sources then you've a safety net while you work on your crazy schemes. I estimate that shall take 25k - 50k per person which is doable.

Should communities of geeks do the same thing you could have a hackerspace and central utility hub too. Under such conditions a very low income can provide you with sustenance and net access. Suddenly putting lots of project oriented people in one place to rub shoulders becomes economically feasible for a trivial amount of capital.

I don't think it has been done but I like this idea. It reminds me of that blueseed venture thing they were trying on that ship off the coast of San Francisco.

dsfyu404ed• 10 years ago

If you can create a Passive Tiny House with renewable energy sources then you've a safety net while you work on your crazy schemes. I estimate that shall take 25k - 50k per person which is doable.

That sounds good on paper but when push comes to shove a an apartment in a "bad" neighborhood or mobile home in a park or middle of nowhere has substantially cheaper up-front costs and similar day to day costs. The downside is that you can't make smalltalk about that lifestyle, or at least not amongst the middle and upper class you can't.

internaut2• 10 years ago

Oh I know all about bad neighborhoods and cheap rents. They are cheap for good reason.

I have twice left a house share because it was becoming frankly unsafe to live in. In the first instance I should have taken the hint that the house next door had not burnt to the ground by accident (several broken windows later I moved out!) and the second time a lunatic car thief threatened to kill me. Hard to concentrate under the circumstances.

Having better company around you in a geek community is well worth it! Arguments about functional programming or open source are significantly less likely to result in death or injury. It is also nice not to have your life mortgaged to some [expletive].

The concept is that each person kicks up 25k - 50k depending on whether they build their own with other fellow TH builders or get it done for them. Common utilities to be installed and paid for can be paid back via loan or some other arrangement. For power I would recommend actually making a micro hydro station together, it's not that difficult and you could easily supply dozens of THs.

Cost of land can be small since you could be in a rural area, with periodic trips or public transport nearby to a city.

The reason why I'm calling this 'marginal cost' is important. It is not free (but monthly bills would seem miraculously low in comparison to most people's situation). It is just that if you do it you're unlikely to become indebted/homeless or not have the funds to stick at your project long enough. Lots of interesting ideas need considerable time and patience to gestate. VCs operate within a relatively narrow window of opportunity in time, and this is a concept that could open up more long term possibilities.

The only threat to this I see is that having some pressure on your back can be a positive thing, but I feel that is a separate discussion with workarounds possible.

ladytron• 10 years ago

I would have to respectfully disagree. Many, many successful entrepreneurs come from modest backgrounds, with little or no education. What they all have in common is the belief that hard work developing their business and laser focus on their customer's needs will make them successful.

I often feel sorry for privileged young people - I think they have it much harder in some ways. They sometimes live in a bit of a bubble due to their upbringing and that makes it hard for them to understand the mass market. Also, they might have a harder time developing a work ethic and grit if they did not need to go to work at a young age or face adversity.

The whole tiny VC funded startup club in SV may be an exception to this rule, but vast numbers of successful entrepreneurs in the USA never get a penny of VC $ and find some way to startup themselves.

rajacombinator• 10 years ago

I don't think anyone embraces failure. For most startups, failure embraces you. (More like a tackle.) Then you either shake it off and keep moving, or not. Most people who have the balls to do a startup in the first place will go with option #1.

The only startup founders who can embrace failure are the privileged ones

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