The New Builders

The New Builders
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Despite popular belief to the contrary, entrepreneurship in the United States is dying. It has been since before the Great Recession of 2008, and the negative trend in American entrepreneurship has been accelerated by the Covid pandemic. New firms are being started at a slower rate, are employing fewer workers, and are being formed disproportionately in just a few major cities in the U.S. At the same time, large chains are opening more locations. Companies such as Amazon with their «deliver everything and anything» are rapidly displacing Main Street businesses. In The New Builders , we tell the stories of the next generation of entrepreneurs – and argue for the future of American entrepreneurship. That future lies in surprising places – and will in particular rely on the success of women, black and brown entrepreneurs. Our country hasn't yet even recognized the identities of the New Builders, let alone developed strategies to support them. Our misunderstanding is driven by a core misperception. Consider a «typical» American entrepreneur. Think about the entrepreneur who appears on TV, the business leader making headlines during the pandemic. Think of the type of businesses she or he is building, the college or business school they attended, the place they grew up. The image you probably conjured is that of a young, white male starting a technology business. He's likely in Silicon Valley. Possibly New York or Boston. He's self-confident, versed in the ins and outs of business funding and has an extensive (Ivy League?) network of peers and mentors eager to help his business thrive, grow and make millions, if not billions. You’d think entrepreneurship is thriving, and helping the United States maintain its economic power. You'd be almost completely wrong. The dominant image of an entrepreneur as a young white man starting a tech business on the coasts isn't correct at all. Today's American entrepreneurs, the people who drive critical parts of our economy, are more likely to be female and non-white. In fact, the number of women-owned businesses has increased 31 times between 1972 and 2018 according to the Kauffman Foundation (in 1972, women-owned businesses accounted for just 4.6% of all firms; in 2018 that figure was 40%). The fastest-growing group of female entrepreneurs are women of color, who are responsible for 64% of new women-owned businesses being created. In a few years, we believe women will make up more than half of the entrepreneurs in America. The age of the average American entrepreneur also belies conventional wisdom: It's 42. The average age of the most successful entrepreneurs – those in the top .01% in terms of their company's growth in the first five years – is 45. These are the New Builders . Women, people of color, immigrants and people over 40. We're failing them. And by doing so, we are failing ourselves. In this book, you'll learn: How the definition of business success in America today has grown corporate and around the concepts of growth, size, and consumption. Why and how our collective understanding of «entrepreneurship» has dangerously narrowed. Once a broad term including people starting businesses of all types, entrepreneurship has come to describe only the brash technology founders on the way to becoming big. Who are the fastest growing groups of entrepreneurs? What are they working on? What drives them? The real engine that drove Silicon Valley’s entrepreneurs. The government had a much bigger role than is widely known The extent to which entrepreneurs and small businesses are woven through our history, and the ways we have forgotten women and people of color who owned small businesses in the past. How we're increasingly afraid to fail The role small businesses are playing saving the wilderness, small

Оглавление

Seth Levine. The New Builders

MORE PRAISE FOR SETH LEVINE AND ELIZABETH MACBRIDE'S THE NEW BUILDERS

THE NEW BUILDERS. Face to Face with the True Future of Business

CONTENTS

Guide

Pages

FOREWORD: OWN YOUR FIERCE POWER

Becoming an Entrepreneur

Power Moves

INTRODUCTION: THE REBIRTH OF THE GREAT AMERICAN ENTREPRENEUR

PART I Who are the New Builders?

CHAPTER ONE A New Generation

The New Builders

Entrepreneurs Are Everywhere

Hope

Choosing What to See

What Is an Entrepreneur?

Silicon Valley and the Rise of the Giants

Notes

Endnotes

CHAPTER TWO How Change Really Happens

Main Street USA

How Big Became Beautiful

Why a Dynamic Economy Is Important

Innovation Comes from Surprising Places

Can You Tell an Innovator When You See One?

Innovation and Invention; Entrepreneurship and Science

The Easy Story of the Big Movers

Notes

Endnotes

CHAPTER THREE The Definition of Success

Entrepreneurial Dreams

The Great Disappearance

It's About Capital. Hard Stop

Note

Endnotes

CHAPTER FOUR More than Grit

Relentless Pursuit

Doing What It Takes

Ghost Startups

Sometimes It's the Journey That Counts

Endnotes

PART II How We Got Here / What We're Up Against

CHAPTER FIVE Opportunity When You Don't Expect It

Note

Endnotes

CHAPTER SIX A Brief History of Entrepreneurship in the United States

Part Myth, Part History

Entrepreneurial from the Beginning

The Age of Exploration

Colonial Ingenuity

The Business of Revolution

The Revolution of Business

The Land of Opportunity. For Some

Starting Over versus Failing

Collaboration Thrives

The Dawn of the Internet Age

Venture Capital Is Born

The Silicon Valley Version of Entrepreneurship

Notes

Endnotes

CHAPTER SEVEN The Elephants in the Room

Go Big or Go Home

Where Did Our Love Affair with Size Come From?

Big and Politically Powerful

Signs of Change?

Who Can Fight Back?

Notes

Endnotes

CHAPTER EIGHT Where's the Money?

Women‐Owned Businesses Are Our Single Biggest Potential Source of Economic Growth

A Different Flavor of Iced Tea

The Nexus of Capital, Network, and Culture

Grassroots Growth

Capital Matters

Banks

The Slow Decline of Community Banks

More than Just Capital

Note

Endnotes

CHAPTER NINE Failure, a Hallmark of Builders New and Old

Are We Starting to Fail at Failing?

Redefining Failure

Institutionalized Failure, in a Good Way

Teaching Resilience

Note

Endnotes

PART III The Invisible Army

CHAPTER TEN Unlikely Heroes

Notes

Endnote

CHAPTER ELEVEN Crossing the Divide

Big Prairie and Open Pastures

An Uphill Climb

Fights That Don't Exist

Notes

Endnotes

CHAPTER TWELVE Sum of Our Parts

Beauty Matters

The Old Boys Network Put to Good Use

Proudly Supporting “Lifestyle Businesses”

The Stonewall Jackson Sign Finally Falls

Endnotes

CHAPTER THIRTEEN No One Develops on the East Side

It Takes Money

The Death of the American Bank

Financial Giants

Redlining Is Real, Even Today

“That Evil Woman”

The Forgotten Hero of Community Finance

Fewer Loans and Higher Interest Rates

The Relationship Factor

Endnotes

PART IV Face to Face with the Future

CHAPTER FOURTEEN A Secret of Silicon Valley

No One Does It Alone

Serendipity

Focus on the Numbers

Two Times More Likely

Metcalfe's Law

Notes

Endnotes

CHAPTER FIFTEEN New Capital Models

Financing at Scale

The Definition of Investor and Financier

Connecting Investors with Main Street

A Trailblazer 40 Years in the Making

A Laboratory for Innovation

New Builders Supporting New Builders

A Call for Creative Finance

Endnotes

CHAPTER SIXTEEN Hope and Promise

See New Builders and See Ourselves

Change Starts with Individuals, but Collective Action Is What Really Matters

Safety Nets and Backstops

Rebalance Regulations to Help Small Business

Create a Movement of Support for New Builders

Broadening Capital Ownership

Why Should You Act? Because Communities Matter

Note

Endnote

EPILOGUE

Endnotes

ACKNOWLEDGMENTS

ABOUT THE AUTHORS

INDEX

WILEY END USER LICENSE AGREEMENT

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“Across various chapters of my professional career, one of which as head of Investment and Innovation of the U.S. Small Business Administration, I've seen first hand the seismic changes our entrepreneurial economy is going through. The New Builders perfectly captures these important and interconnected trends – trends that many people fail to see.”

—JAVIER SAADE, Former Associate Administrator, Chief of Investment and Innovation, U.S. Small Business Administration

.....

In the coming chapters, we'll explore places like Staunton, Virginia, which is home to a local angel network that has invested more than $1 million and is home to a makerspace that has helped rejuvenate the downtown. The story of the Staunton Makerspace shows what happens when the spirit of New Builders takes root in a community and is nurtured there. About a year after it was opened, a fire destroyed the fledgling operation in downtown Staunton. A 92‐year‐old former machinist, George Saugui, read about the fire in the newspaper. “I thought we lost everything,” Dan Funk, the founder of the Makerspace told us. “But he showed up.” The duo hoisted George's old workbench into a truck and brought it down to the ruined Makerspace. “He sat for four weeks, repairing all of our woodworking equipment,” Dan recalled. The Makerspace was rebuilt with the help of George and others in the community who turned up to rally around this important asset. It is now back in operation and has since expanded to include members working on a variety of hobbies, as well as entrepreneurial ventures in everything from textiles to 3D printing (which quickly became important during Covid‐19).

Indeed, entrepreneurs, especially those with unexpected success stories, have given the United States much of our identity as a nation of builders and doers, risk‐takers, and innovators, of economic prosperity and deep community identity. The story we tell ourselves about America, although part myth and part reality, is inexorably linked to this entrepreneurial spirit.

.....

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