All Articles Tagged "entrepreneur strategy"

5 ‘Thinking Traps’ That Hurt Entrepreneurs

July 6th, 2011 - By TheEditor
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(Businessweek) – Confirmation bias: Rather than being purely rational actors, research shows that individuals often unknowingly fall into gaps in their reasoning, McPherson says. One of the strongest is confirmation bias, the tendency to favor data that confirms our preconceptions or hypotheses. “In business, teams have to fight the temptation to take new information and see it as fitting into certain sets of facts,” he says.  When choosing which companies to work with and fund, Idealab is not afraid of entrepreneurs who have experienced failures in the past. Success after success is wonderful, but often it leads to confirmation bias that a lucky chief executive officer with good timing is a golden leader who can do no wrong, McPherson says. “Adversity is a crucible that tempers people. We have one CEO who has threatened to quit multiple times during a difficult startup. He came from a big company and never had to handle adversity. With a successful CEO, you want to know whether they just rode the escalator up or ran up it faster than it would otherwise have gone.”

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Entrepreneurs Tap Social Networks

December 9th, 2010 - By TheEditor
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(Wall Street Journal) — When recent college graduate Bronson Chang wanted to renovate his uncle’s candy shop in Honolulu, he decided to tap his social network for the funds via a “crowdfunding” website, instead of seeking a loan at a bank.  Crowdfunding sites—such as ProFounder.com, Peerbackers.com, Kickstarter.com and IndieGoGo.com—allow entrepreneurs to raise money collectively toward a monetary target. Entrepreneurs can create a profile on a crowdfunding site listing their monetary goals, an explanation of how the funds will be used, and an end-date for the campaign. Once the information goes live on the site, investors can pledge money toward the entrepreneur’s goal. These sites typically take a small percentage of the funds that an entrepreneur takes home.

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