This is a good thing—new ventures are important for injecting new
energy and ideas into the economy, and are a major source of wealth
creation for those lucky and smart enough to be involved in a firm that
defies the odds and prospers. Billionaire founders from Sam Walton to
Mark Zuckerberg are familiar characters in business lore, and
successes can create whole tribes of wealthy people overnight. The
“Microsoft millionaire” is a cultural touchstone in the Seattle area,
where one economist estimates the company created 10,000
millionaires by 2000.
Culturally, we have elevated the entrepreneur to iconic status,
along with sports heroes and entertainment stars. It’s a fundamental
American myth, from Ayn Rand’s still influential personification of
entrepreneurial independence in Hank Rearden to the mythmaking
that erupted upon the death of Steve Jobs. Entrepreneurs are seen as
individual, self-made visionaries with vast wealth. They are perhaps
the purest expression of the American hero. Superhero, even.
Superman can reverse the rotation of the Earth, but Iron Man Tony
Stark would be better on an earnings call and is a very human
superhero—Elon Musk.
As we’ve discussed, it’s not for most people—and the odds against
you seem heavier by the year. In fact, very few people have the
personality characteristics and skills that make up a successful
entrepreneur. And it isn’t about being “good enough” or “smart
enough”—indeed, some of the characteristics of successful
entrepreneurs are real detriments in other aspects of life.
So, how do you know if you’re an entrepreneur?
The traits of successful entrepreneurs haven’t changed much in the
digital age: you need more builders than branders, and it’s key to have
a technologist as part of, or near, the founding team. There are three
tests or questions:
1. Are you comfortable with public failure?
2. Do you like to sell?
3. Do you lack the skills to work at a big firm?