This Skin We're In by Dale Beermann

Why the Term "Serial Entrepreneur" Makes Me Want to Vomit

Is it bad that I dislike the term "Serial Entrepreneur?"  I consider myself an entrepreneur.  As such, I also consider myself a serial entrepreneur (I just threw up in my mouth a bit).

First of all, let's differentiate between small business owners and entrepreneurs.  This is a sticky point, and certainly one up for contention, but I don't believe that they're one in the same (nor am I the only one who thinks so).  My definitions:

Entrepreneur: One who leverages their ideas to create value and take advantage of new markets.

Small Business Owner: One who provides a sustainable product or service through their own business entity.

Entrepreneurs are most often also small business owners or part-owners, but many small business owners are not necessarily entrepreneurs. 

There are also a few key aspects of an entrepreneur that a small business owner doesn't share.  Entrepreneurs generally have a desire to innovate.  Second, they're looking for the big exit.  I don't believe that most small business owners have either of these ideas in mind.

The Successful Entrepreneur

Let's think about the idea of the big exit.  Once an entrepreneur's venture has succeeded, the entrepreneur does one of three things:

1. He/She hangs it up, taking their earnings and retiring to a beach in the Carribean.
2. He/She stay on with the company to help it succeed through retirement.
3. He/She starts another company.

I'm guessing that very few entrepreneurs actually choose the first option.  Most entrepreneurs are driven by a passion that isn't going to disappear once you succeed.  You might even try but my guess is that you'll come back to it some day.  Mark Cuban thought that he would just retire and drink everywhere he could.  Chances are you've heard of him since.

Image by niallkennedy via Flickr

That leaves us with #2 and #3.  I also don't think that there are many entrepreneurs that fall into the second category.  Bill Gates is the first one that comes to mind.  Guess what though: he started another company before Micro$oft.  He also had a better opportunity with Microsoft than he could have had anywhere else.  Furthermore, he has now moved into a role as more of a social entrepreneur. 

In the second case the entrepreneur continues to innovate, turning new ideas into better outcomes.  They just have more resources and less risk in doing so.   If you're someone who has managed to take their innovation to huge success and then decided to ride that success out, you are no longer an entrepreneur. You are a small business owner. You have lost the desire to innovate and were never looking for the exit in the first place.

The Serial Entrepreneur

Obviously, in the third case you're a "serial entrepreneur."  Here's the thing.  #1 doesn't exist and as far as I can tell #2 doesn't either. 

So if you're an entrepreneur, you're also a serial entrepreneur. 

Ok, so what about when a venture fails?  Well, either you start a new one and, once again, you're a "serial entrepreneur."  Or you give up.  I'll admit that this probably happens.  But I doubt it's by choice.  The passion that drives entrepreneurs doesn't die with their failed companies.  It's just not in their personalities.

So when someone introduces themselves to me as a serial entrepreneur, all I can think is: So... you're better than me?

Austin GDC '08: Google to Release API for Google Gadgets, Lively

I'm currently sitting in on the Google Lively keynote at Austin GDC. A lot of people have been wondering why exactly Google entered the 3D chat space and I think we just heard the reason.

Google is announcing that they will eventually be opening up the API for Google Gadgets and Google Lively. What exactly does this mean?

Currently Lively users can embed Google Gadgets into their 3D spaces. For the most part, these are non-interactive desktop applications that can be included in these virtual environments. As Google opens this up it will allow for much more interactive content. Soon, we will be seeing web-based 3D spaces with interactive objects such as televisions or kiosks (think: commerce).

Similar to Playstation Home, Google is now bridging the gap between 2D and 3D, only they are doing it for the mainstream web user rather than the hardcore gamer. It is already being described as “democratizing the 3D Web.”

As Google continues along this path they will also be opening up the API for Lively itself, allowing game developers to build right on top of the Lively platform. And, taking it further yet, Google is going to provide a scheme for peer to peer transactions where creators can sell their content directly to the end users. This will not be through a virtual currency and seems I'm guessing that Google Checkout might be a start for this.

This is huge news for game developers, for a lot of reasons:

First, in a way, Google really is building something similar to Second Life by allowing developers to create the content for their 3D spaces.

Second, they are creating a platform for developers of 2D games in Google Gadgets.

Third, they are creating a commodity game engine in Google Lively.

Fourth, they already have a 3D content creation tool in Sketchup for game creators.

Fifth, all of this allows game creators to circumvent the game publishers, taking out the middle man and allowing them to sell directly to the users.

There is no timeline for when these features will be released but I'm sure that a lot of people will be eagerly anticipating them. It will be interesting to see how Lively grows as a result.

What if Barack Obama's name was Jake Williams?

It's clear to me that the results of current polling aren't determined by the candidates' actual policies (or lack thereof). Recently, in fact, it seems that the biggest factor deciding whether an individual leans left or right has to do with gender. Or exactly which pig is wearing the lipstick.

Why else would we be talking about the Sarah Surge? What does she add to the Republican ticket other than a female name? Obama's pick of Biden seems to make sense. Biden has experience in foreign policy, a common criticism of Obama's own candidacy. We know very little about Palin (which makes you wonder exactly what the Clinton-turned-Palin-supporters are thinking).

Yet, the naming of Palin as the Republican candidate for Vice President has tipped current polls in favor of the Red. But, when it comes down to the naming of the Vice Presidential candidate, what exactly should we be looking for? In my eyes there are two things: First, someone who will provide important advice to the President. Second, someone who will be a suitable replacement should some disaster prevail. Palin, as far as I can tell, provides neither.

This makes me believe that our next president will be determined by one thing alone: American's preconceptions of the candidates and how our sensationalist media can take advantage of those feelings.

I just finished reading Freakonomics (which has probably influenced some of my thinking). There is a chapter that talks about the effects of a person's name on his or her life and, specifically, whether a more predominantly “black” name might be a disadvantage. The findings are that a person's name doesn't directly have an effect on their life. What a name might have an effect on is in people's opinions of that person.

There is an example of “audit studies” that made an impression on me. As the book states of such studies, “if DeShawn Williams and Jake Williams sent identical resumes to the same employer, Jake Williams would be more likely to get a callback.” One possible reason is that “'DeShawn' may simply signal a disadvantaged background to an employer who believes that workers from such backgrounds are undependable.”

This is a scary prospect if those two resumes have the names Barack Obama and John McCain at the top of them. What does Barack's name, and his very well-known upbringing, really signify to the majority of Americans?

We are currently partaking in one of the biggest interviews of our lives, but from the other side of the table. The past eight years should be an example of how the outcome can have a profound effect on everyone. As in any interview, we need to learn to dissect the two candidates and make an educated decision, rising above the issues of gender and race.

If not, maybe Barack should just change his name.

Original Flickr image by DrumDog.

Lackluster Information Technology Spending in the Midwest

The time has come for the Midwest to step outside its comfort zone.  For too long has there been an emphasis on investing in biotechnology, life sciences, energy, and health care. 

Yesterday Wisconsin Senator Russ Feingold announced his E4 initiative for small business innovation.  The plan targets "energy innovation; water quality and security; domestic security and transportation."  This is a step in the right direction and there is no doubt that these are some of the areas are the ones in which the Midwest is strongest. 

It's a good idea to play to your strengths.  But that isn't to say that there aren't other strengths in the Midwest.  Of the top twenty Computer Science graduate schools in the Nation, the Midwest has four with the Universities of Illinois, Wisconsin and Michigan as well as Purdue.  The exact same can be said for Biomedical Engineering, yet there is a significant gap in funding between the two disciplines.

Looking at the list of Wisconsin angel investments in the past year, this discrepancy is still apparent.  Over $69 million in funding went to life sciences and biotechnology with another $50 million going to energy.  In comparison, Information Technology saw only $7 million in angel investment.  In addition, Feingold's plan really amounts to increasing funding for Federal grants through the SBIR and STTR programs. This doesn't necessarily flow as easily into IT as the other industries.

Despite this gap in funding there is significant evidence that large IT companies are taking an interest in the region.  Recently, both Google and Microsoft have opened offices here in Madison and there is expectation that more will follow.  It's time for the policy makers and investors in the Midwest to catch on to what everyone else is staring to see.  There certainly isn't a lack of talent here, we just need to be better at retaining it.