Category: Entrepreneurship

French Billionaire Entrepreneur Starts Small and Cuts Costs

On Mon., October 13, 2014, Iliad dropped its bid for T-Mobile, after lack of interest from some of the T-Mobile board and from the majority owner, Deutsche Telekom AG.

(p. B1) Iliad wants to improve T-Mobile US’s cost structure by applying its own ultraslim cost base, under which it has kept costs to a minimum in everything from IT services to back office to equipment purchases. Iliad estimates it will be able to save about $2 billion annually by cutting out costs such as sending paper bills, and savings on equipment and IT systems, Mr. Niel said.
. . .
(p. B4) . . . before Mr. Niel can execute his American dream, Iliad has to win over T-Mobile US’s board, which could prove a formidable challenge.
. . .
He says he is sticking to the same principle that has guided his ascent from a teenage computer programmer in a working class Paris suburb to one of France’s richest men.
“I always follow the same idea: Start small and disrupt to create something big,” he said.

For the full story, see:
RUTH BENDER. “Will This Billionaire Bring $3-a-Month Phone Plans to U.S.?” The Wall Street Journal (Sat., Aug. 2, 2014): B1 & B4.
(Note: ellipses added.)
(Note: the online version of the story says it was updated on Aug. 4, 2014.)

Feds Constrain Startups

(p. A15) Virtually every state has suffered a drop in startups, which suggests that this is a national, and not a regional or state, problem.
. . .
If history is any indication, many of today’s economic heavyweights will ultimately decline as new businesses take their place. Research by the Kaufman Foundation shows that only about half of the 1995 Fortune 500 firms remained on the list in 2010.
Startups also have declined in high technology. John Haltiwanger of the University of Maryland reports that there are fewer startups in high technology and information-processing since 2000, as well as fewer high-growth startups–annual employment growth of more than 25%–across all sectors. Even more troubling is that the smaller number of high-growth startups is not growing as quickly as in the past.
. . .
Surveys by John Dearie and Courtney Gerduldig, authors of “Where the Jobs Are: Entrepreneurship and the Soul of the American Economy” (2013), show that entrepreneurs report being hamstrung by difficulties in finding skilled workers, by a complex tax code that penalizes small business, by regulations that raise the costs of doing business, and by difficulties in obtaining financing that have worsened since 2008.

For the full story, see:
EDWARD C. PRESCOTT and LEE E. OHANIAN. “Behind the Productivity Plunge: Fewer Startups; New businesses were created at a 30% lower rate in 2012 than the annual average rate in the 1980s.” The Wall Street Journal (Thurs., June 26, 2014): A15.
(Note: ellipses added.)
(Note: the online version of the story has the date June 25, 2014.)

Analyst Conflict of Interest in Predicting Tesla Stock Price

(p. A1) Just like the Internet stocks of yore, Tesla has its own Wall Street cheerleader: Adam Jonas, Morgan Stanley’s auto analyst. Jonas could not be less interested in mundane factors like earnings per share; indeed, he has had to lower his 2015 earnings estimates several times; he now predicts the company will lose $2.70 a share. But never mind: In the future that he envisions, Tesla will be the most important car company on earth.
Just a few weeks ago, in fact, Jonas raised his share price target for Tesla from $280 to $465, which would make Tesla more valuable than General Motors or Ford. Had anything fundamental changed for Tesla? Of course not!
Jonas based his new target on something he labeled Tesla Mobility, which he describes as “an app based, on-demand mobility service.” Where did he learn about Tesla Mobility? Who knows? Tesla, a company hardly averse to hype, has never acknowledged its existence.
And that’s not the worst of it. No, the worst is the timing of his call. It came days after Tesla announced that it would be issuing stock to raise yet more money — and that Morgan Stanley was among the underwriters. (The company raised close to $800 million.)

For the full commentary, see:
Joe Nocera. “The Tesla Cheerleader.” The New York Times (Sat., AUG. 29, 2015): A1 & A19.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date AUG. 28, 2015.)

Belgian Government Mandates Mayo to Be No Less than 80% Fat

(p. A1) BRUSSELS–Mayonnaise here is a sauce celebre, so important that a 60-year-old royal decree governs what goes in it.
. . .
Belgian mayonnaise must contain at least 80% fat and 7.5% egg yolk. European rivals are permitted to sell mayo with a mere 70% fat and 5% egg yolk.

For the full story, see:
TOM FAIRLESS. “No Yolk, Belgian Food Producers Fed Up with Mayonnaise Rules; But effort to relax royal recipe doesn’t go down well with chefs; yellow peas.” The Wall Street Journal (Mon., Sept. 20, 2015): A1 & A10.
(Note: ellipsis added.)
(Note: the online version of the story has the date Sept. 20, 2015 and the title “In Belgium, Mayonnaise Makers Want a New Recipe; But effort to relax royal recipe doesn’t go down well with chefs; yell;ow peas.”)

Autism Is “Inseparably Tied to Innovation”

(p. 11) “NeuroTribes” is beautifully told, humanizing, important. It has earned its enthusiastic foreword from Oliver Sacks; it has found its place on the shelf next to “Far From the Tree,” Andrew Solomon’s landmark appreciation of neurological differences. At its heart is a plea for the world to make accommodations for those with autism, not the other way around, and for researchers and the public alike to focus on getting them the services they need. They are, to use Temple Grandin’s words, “different, not less.” Better yet, indispensable: inseparably tied to innovation, showing us there are other ways to think and work and live.

For the full review, see:
JENNIFER SENIOR. “‘Skewed Diagnosis; A Science Journalist’s Reading of Medical History Suggests that the ‘Autism Pandemic’ Is an Optical Illusion.” The New York Time Book Review (Sun., AUG. 23, 2015): 11.
(Note: the online version of the review has the date AUG. 17, 2015, and has the title “‘NeuroTribes,’ by Steve Silberman.”)

The book under review, is:
Silberman, Steve. Neurotribes: The Legacy of Autism and the Future of Neurodiversity. New York: Avery/Penguin Random House, 2015.

Disneyland Started as a “Nightmare” and “Fiasco”

(p. C12) Sixty years ago, on July 18, 1955, the “Happiest Place on Earth,” better known as Disneyland, opened to the public. But on that day, the former orange grove in Anaheim, Calif., was one of the most miserable places in America. A heat wave caused the park’s new asphalt to stick to people’s shoes. A gas leak forced parts of the site to close, a plumbers strike led to a water shortage, and lax security resulted in dangerous overcrowding.
Reviewing the $17.5 million theme park, a journalist wrote in a local newspaper, “Walt’s dream is a nightmare…a fiasco the like of which I cannot recall in 30 years of show life.”
Undeterred, Walt Disney added ever more attractions and innovations, transforming mass leisure from its violent origins in the ancient world to today’s amusement-park industry, with $12 billion of annual revenue in the U.S.

For the full commentary, see:
AMANDA FOREMAN. “HISTORICALLY SPEAKING; From Gladiators to Mickey Mouse: Disneyland Turns 60.” The Wall Street Journal (Sat., July 18, 2014): C12.
(Note: ellipsis in original.)
(Note: the online version of the commentary has the date July 15, 2015, an has the title “HISTORICALLY SPEAKING; From Gladiators to Mickey Mouse: Disneyland Turns 60.”)

112 Years of Spectacular Progress Started With Wilbur Wright

PlutoYouthfulMountains2015-08-16.jpg
“New close-up images of a region near Pluto’s equator reveal a giant surprise: a range of youthful mountains.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A1) LAUREL, Md. — The first close-up image of Pluto has revealed mountains as tall as the Rockies, and an absence of craters — discoveries that, to their delight, baffled scientists working on NASA’s New Horizons mission and provided punctuation for a journey nine and a half years in the making.

Only 112 years after the Wright Brothers were barely able to get their airplane off the ground, a machine from Earth has crossed the solar system to a small, icy world three billion miles away. The flyby on Tuesday, when New Horizons buzzed within 7,800 miles of the former ninth planet, came 50 years to the day after NASA’s Mariner 4 spacecraft made a similar first pass by Mars.

For the full story, see:
KENNETH CHANG. “Pluto’s Portrait From New Horizons: Ice Mountains and No Craters.” The New York Times (Thurs., JULY 16, 2015): A1 & A17.
(Note: the online version of the article has the date JULY 15, 2015.)

Antiquated Education Needs Reform to Encourage Entrepreneurship

(p. 22) . . . “Most Likely to Succeed: Preparing Our Kids for the Innovation Era,” by Tony Wagner and Ted Dintersmith — argues that the only way to ensure any kind of future security for our children is to totally upend the education system and rethink what school is for.
“Disrupt” is a buzz word these tech-world gurus use sparingly, but that’s what they mean. Wagner works at Harvard’s Innovation Lab, Dintersmith in venture capital, funding education and tech start-ups. . . . Their argument is this: Public education in America is based on antiquated late-19th-century priorities, on the need “to educate large numbers of immigrants and refugees from farms for basic citizenship and for jobs in a growing industrial economy.” Most of the stuff children are forced to know, and on which our culture’s sense of achievement is based, is unnecessary in the age of Google. But tests and test-makers still run the show, and kids are required to “jump through hoops” and drill and drill to assimilate reams of facts (“content”) instead of learning the skills that will keep them employed and employable for years to come — which is to say, the skills to be entrepreneurs.
. . . .
. . . the assumption that undergirds this whole tract: that every person can — or should — be molded into an entrepreneur.

For the full review, see:
LISA MILLER. “Raise Them Up; A Vision of Education for an Entrepreneurial America.” The New York Time Book Review (Sun., AUG. 23, 2015): 22.
(Note: ellipses in original.)
(Note: the online version of the review has the date AUG. 18, 2015, and has the title “‘Most Likely to Succeed,’ by Tony Wagner and Ted Dintersmith.”)

The book under review, is:
Wagner, Tony, and Ted Dintersmith. Most Likely to Succeed: Preparing Our Kids for the Innovation Era. New York: Scribner, 2015.

Disneyland “Immersed the Viewer in the Story Itself”

(p. A11) On July 17, 1955, about 28,000 people (roughly half of whom had been sold counterfeit tickets) walked, for the first time, through the gates of Disneyland and into history. To say it didn’t go smoothly would be an understatement: The temperature was 101 degrees (hot, even for Southern California) and difficulties with both the plumbing system and the labor unions made it impossible for anyone to get a drink. Only a handful of the rides and attractions were open at all, and most of those were continually breaking down and closing. Even the animals–the horses and mules in the Wild West attractions–refused to cooperate. That walk may have been historic, but it was made even more difficult by all the asphalt–poured only a few hours earlier–that kept sticking to everyone’s shoes.
. . .
With Disneyland, Walt Disney took the concept of narrative to the extreme: Rather than merely showing the viewer a story, even with the heightened naturalism of sound, color and a combination of cartoon characters and real actors, the theme park actually immersed the viewer in the story itself.
. . .
Walt Disney–who famously said, “Disneyland will never be completed. It will continue to grow as long as there is imagination left in the world”–would be pleased that in the half century since his death, his creation has been constantly tinkered with. Although very little remains of the park that opened in 1955, he would still recognize it, and love it.

For the full commentary, see:
WILL FRIEDWALD. “CULTURAL COMMENTARY; Finding Disneyland; Celebrating 60 Years of Disneyland, a Park that Was ahead of Its Time.” The Wall Street Journal (Sat., July 15, 2015): D5.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date July 14, 2015, and has the title “CULTURAL COMMENTARY; Celebrating 60 Years of Disneyland; In honor of Disneyland’s 60th birthday, a look back at a park that was ahead of its time.”)

Should We Have a Right to the Silence that “Contributes to Creativity and Innovation”?

(p. D5) The benefits of silence are off the books. They are not measured in the gross domestic product, yet the availability of silence surely contributes to creativity and innovation. They do not show up explicitly in social statistics such as level of educational achievement, yet one consumes a great deal of silence in the course of becoming educated.
. . .
Or do we? Silence is now offered as a luxury good. In the business-class lounge at Charles de Gaulle Airport, I heard only the occasional tinkling of a spoon against china. I saw no advertisements on the walls. This silence, more than any other feature, is what makes it feel genuinely luxurious. When you step inside and the automatic doors whoosh shut behind you, the difference is nearly tactile, like slipping out of haircloth into satin. Your brow unfurrows, your neck muscles relax; after 20 minutes you no longer feel exhausted.
Outside, in the peon section, is the usual airport cacophony. . . .
. . .
To engage in inventive thinking during those idle hours spent at an airport requires silence.
. . .
I think we need to sharpen the conceptually murky right to privacy by supplementing it with a right not to be addressed. This would apply not, of course, to those who address me face to face as individuals, but to those who never show their faces, and treat my mind as a resource to be harvested.

For the full commentary, see:
MATTHEW B. CRAWFORD. “OPINION; The Cost of Paying Attention.” The New York Times, SundayReview Section (Sun., MARCH 8, 2015): 5.
(Note: ellipses added.)
(Note: the online version of the commentary has the date MARCH 7, 2015.)

The commentary quoted above is related to the author’s book:
Crawford, Matthew B. The World Beyond Your Head: On Becoming an Individual in an Age of Distraction. New York: Farrar, Straus and Giroux, 2015.

How Jack Dorsey Achieves Work-Life Balance: “I Don’t Have a Family”

(p. B1) Maybe Jack Dorsey needs to clone himself.
On July 1, the technology entrepreneur took on the challenge of turning around Twitter, the social media site that he co-founded and that he was asked to run as interim chief executive. At the same time, Mr. Dorsey has filed confidential paperwork to sell stock to the public in the other company where he is chief executive, Square, a mobile payments provider, a person briefed on the action said on Friday [July 24, 2015].
The collision of events adds fodder to one of Silicon Valley’s hottest topics: how Mr. Dorsey will juggle the companies, and whether he will forgo responsibilities at one to concentrate on the other.
. . .
(p. B2) On Tuesday [July 28, 2015], Mr. Dorsey will face Twitter investors when he reports the San Francisco-based company’s quarterly earnings. The executive has been preparing for the event, where his performance will be scrutinized.
Mr. Dorsey has also spent time at Square, which has offices about a block away from Twitter’s on Market Street in San Francisco. Last week, he moderated a panel discussion on women in technology at Square’s twice-monthly staff meeting, featuring three women — Sarah Friar, Alyssa Henry and Francoise Brougher — who head finance, engineering and business operations, respectively, at the mobile payments company.
During a part of the session that focused on parenting, according to a person who attended the meeting, Mr. Dorsey was asked how he managed to achieve work-life balance. He told the audience, “Uh, I don’t have a family.”

For the full story, see:
MIKE ISAAC and VINDU GOEL. “Square’s Filing Turns Talk to Dorsey’s Juggling Skills.” The New York Times (Sat., JULY 25, 2015): B1-B2.
(Note: ellipsis, and bracketed dates, added.)
(Note: the online version of the obituary has the date JULY 24, 2015.)