More Entrepreneurs and Better Entrepreneurs
There are two theories about the quantity and quality of entrepreneurs in the world: one is that the quantity and quality are fixed; the other is that our environment can change the quantity and quality of entrepreneurs.
Entrepreneurship is difficult to learn but so is reading and writing. We have seen how enhancing the environment can impact global literacy rates. So what are the factors that lead to more and better entrepreneurs?
1. Worse alternatives
A lack of economic stability and opportunity through traditional means has historically been the main driver of increased entrepreneurship. This is clearly the case now as jobs for life are not returning. Fortunately, unlike history, there are also other drivers which are fundamentally more positive.
2. Increased transparency
Previously entrepreneurs could only learn from firsthand experience, direct mentorship or outdated books which discussed the big success stories from previous decades. Now there is an endless, and timely, supply of online and offline information about what goes on behind the scenes at startups.
3. Decreased friction
Starting a company is still hard but it used to be a lot harder. It is now easier than ever to test market assumptions, build products plus services and scale with platforms. Early stage capital is more accessible and exponentially more productive because startup costs have collapsed and time to market has decreased significantly.
4. Globalization of startup culture
Startup ecosystems are growing across the world. It is still early and most of them need years or even decades to mature but these early seeds of entrepreneurship will grow in quantity and improve in quality over time.
5. Application and deployment
Even as new technologies are being developed on the horizon, there is still plenty of opportunity left in the application and deployment phase of more mature technology sectors. This application and deployment phase requires a more diverse skill set, allowing less technical people to create meaningful value by leveraging existing technology.
The idea that there is a fixed quantity and quality of entrepreneurs in the world is outdated because there are several structural shifts which are changing the environment to create more entrepreneurs and better entrepreneurs. Just as improved literacy rates helped society as a whole, the structural change in entrepreneurship is a cornerstone for building a better future.