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Entrepreneurs Are Better Off Going It Alone, Study Says

26 pointsby kennethfriedmanabout 6 years ago

4 comments

_Nat_about 6 years ago
Abstract from &quot;Sole Survivors: Solo Ventures versus Founding Teams&quot; [1], Jason Greenberg (2018-01-23):<p>&gt; A widespread scholarly and popular consensus suggests that new ventures perform better when launched by teams, rather than individuals. This view has become so pervasive that many of the foremost investors rarely, if ever, fund startups founded by a solo entrepreneur. Despite this belief in the superiority of teams in the startup process, little empirical evidence has been used to examine this key question. In this paper, we examine the implications of founding alone versus as a group by using a unique dataset of crowdfunded companies that together generated approximately $358 million in total revenue. We show that companies started by solo founders survive longer than those started by teams. Further, organizations started by solo founders generate more revenue than organizations started by founder pairs, and do not perform significantly different than larger teams. This suggests that the taken-for-granted assumption among scholars that entrepreneurship is best performed by teams should be reevaluated, with implications for theories of team performance and entrepreneurial strategy.<p>This study&#x27;s from early-2018, while the parent-article is recent. Just a late report, or did this same author publish a follow-up study recently?<p>[1]: <a href="https:&#x2F;&#x2F;www.ssrn.com&#x2F;abstract=3107898" rel="nofollow">https:&#x2F;&#x2F;www.ssrn.com&#x2F;abstract=3107898</a>
PaulRobinsonabout 6 years ago
As ever, surely the true answer here is &quot;it depends&quot;. Prickly personalities are going to do better in solo enterprises (less arguing), whilst people with a tendency to procrastinate might find a team dynamic encouraging.<p>I think I personally would thrive more in a partnership or team, but then I&#x27;ve been running a limited company with a mate for over a decade as a side business, and it&#x27;s hard for us to agree on anything. He&#x27;s not a bad guy, he just has different goals to me.<p>And when I reflect on that, I realise many of my goals are about being able to be my own boss. As such, my next venture will likely be solo.<p>Definitely not for everybody, though!
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Data_Junkieabout 6 years ago
People need to stop posting links to paywalls. Hacker News should ban this.
ecmascriptabout 6 years ago
Paywall, is there any way around it?
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