Category: Entrepreneurship

“Senior Communist Party Leaders” Call Coronavirus “a Major Test of China’s System and Capacity for Governance”

(p. A1) Mr. Xi presided over a meeting of senior Communist Party leaders at which they acknowledged shortcomings in policies on public health and emergency management, according to a report by China’s official news agency. The leaders called the coronavirus epidemic “a major test of China’s system and capacity for governance.”

Xinhua quoted Mr. Xi as saying that officials who resist orders and “lack boldness” could be punished– . . .

For the full story, see:

Sui-Lee Wee. “China Foresees ‘Test’ as World Shuts Its Doors.” The New York Times (Tuesday, February 4, 2020): A1 & A6.

(Note: ellipsis added.)

(Note: the online version of the story has the date Feb. 3, 2020, and has the title “Beijing Sees ‘Major Test’ as Doors to China Close and Coronavirus Deaths Surpass SARS.”)

Is Jeff Bezos Still a “Project Entrepreneur”?

In my Openness to Creative Destruction: Sustaining Innovative Dynamism, I suggest that different innovative entrepreneurs have different motives. Some mainly want money for its own sake, some mainly want fame, some mainly want to win the competition. Then there are those who mainly want to bring their project into the world. These are the project entrepreneurs, who often sacrifice for their project, forgoing conspicuous consumption in order to “make a ding in the universe.” (The phrase is due to Steve Jobs.) In my book I give Walt Disney as one example, and Jeff Bezos as another. Was I wrong? Or has Bezos changed? Or is there some other way to account for what looks like Bezos’s conspicuous consumption, as described below?

(p. B4) The national housing market has cooled, but in Los Angeles the ultrarich are still shattering price records. An heiress to the Formula One racing empire sold her home for $119.75 million last July. In December, Lachlan Murdoch paid $150 million for a home in Bel Air.

The latest buyer at the top: Jeff Bezos, the Amazon chief and world’s richest person.

Setting a new high for a home sold in California, Mr. Bezos is paying $165 million for a Beverly Hills estate owned by David Geffen, the media mogul and co-founder of DreamWorks, according to two people familiar with the purchase.

That wasn’t all. In a separate transaction, Bezos Expeditions, which oversees The Washington Post and Mr. Bezos’ charitable foundation, is buying 120 undeveloped acres in Beverly Hills for $90 million, the two people said.

For the full story, see:

Candace Jackson. “Bezos Is Setting Record By Paying $165 Million To Buy Geffen’s Estate.” The New York Times (Saturday, February 15, 2020): B4.

(Note: the online version of the story has the date Feb. 14, 2020, and has the title “Jeff Bezos Buying $165 Million Estate, a California Record.”)

My book is:

Diamond, Arthur M., Jr. Openness to Creative Destruction: Sustaining Innovative Dynamism. New York: Oxford University Press, 2019.

“The Traveling Loner Who Helps Locals Fight off Bad Guys”

(p. A9) The Mandalorian is an inscrutable masked mercenary who wears a blaster on his hip, rides speeder bikes and giant lizards across desert landscapes, and has a bit of mysterious theme music, like the trill that once announced Clint Eastwood’s “man with no name” gunslinger on screen. All this helped endear the spacefarer to viewers who grew up with a lot of characters from the same template.

“I enjoy the hell out of it,” says 72-year-old Dennis Burdick of Las Vegas, who has deep-seated memories of watching shows like “Have Gun Will Travel” during the peak of the genre, when 31 prime-time Westerns aired in the 1958-’59 TV season alone. “They weren’t really great guys, they were just great with their guns. Same with the Mandalorian. He’s not looking to save anybody, but he’s there, and he can and he will,” Mr. Burdick adds.

Among TV tropes, the traveling loner who helps locals fight off bad guys has been a sturdy one.

. . .

Finally: Baby Yoda. That, of course, is the nickname the internet immediately bestowed on the breakout star of “The Mandalorian” after it appeared in the first episode’s final moments. The Child, as characters in the show refer to it, is a half-century-old toddler because of the slow aging process of its species. The bounty hunter was initially paid to capture or kill it, but something beneath his chest armor melted at the sight of the wrinkly green creature in a floating baby pram. Mando broke the code of his profession and became Baby Yoda’s protector.

For the full review, see:

John Jurgensen. “Old-School TV Tactics Propel ‘The Mandalorian’.” The Wall Street Journal (Thursday, December 26, 2019): A9.

(Note: ellipsis added.)

(Note: the online version of the review has the date Dec. 25, 2019, and has the title “The Old-School TV Tactics That Make ‘The Mandalorian’ Tick.” The last sentence quoted above appears as in the print version, and not as in the slightly longer online version, of the article.)

Thiel Advises Zuckerberg to Defend Free Speech

(p. A5) Facebook Inc.’s senior leadership is increasingly divided over how to address criticism of the company’s effect on U.S. politics, with board member and billionaire investor Peter Thiel serving as an influential voice advising CEO Mark Zuckerberg not to bow to public pressure, according to people familiar with the matter.

One flashpoint of late: political advertisements. Mr. Thiel has argued that Facebook should stick to its controversial decision, announced in September [2019], to continue accepting them and to not fact-check those from politicians, the people said.

. . .

Some of Mr. Thiel’s views are shared by others within Facebook, including on political ads, with many current and former executives advising Mr. Zuckerberg that the company shouldn’t be in the position of deciding what claims are accurate, people familiar with the matter said.

. . .

Mr. Zuckerberg has long valued Mr. Thiel’s advice. Some people close to both men described their current relationship as an alliance, based in part on their long history together.

Mr. Thiel, 52 years old, was the first outside investor in Facebook, and ultimately made more than $1 billion on his stake. Early on, Mr. Thiel advised Mr. Zuckerberg, now 35, to focus on growing the Facebook platform’s user base rather than on making money, contrarian advice at the time that laid the groundwork for Facebook’s riches today. Mr. Thiel and his funds have since sold off most of their Facebook shares.

. . .

Mr. Zuckerberg and Chief Operating Officer Sheryl Sandberg have said repeatedly that they value ideological diversity on the board, although that view isn’t shared by all of the company’s workforce.

“Mark is friends with Peter Thiel and a lot of Republicans,” said a former Facebook employee who worked in its political group. “It’s a reality people aren’t willing to accept.”

For the full story, see:

Emily Glazer, Deepa Seetharaman and Jeff Horwitz. “Political Divisions Roil Facebook.” The Wall Street Journal (Wednesday, December 18, 2019): A5.

(Note: ellipses, and bracketed year, added.)

(Note: the online version of the story has the date Dec. 17, 2019, and has the title “Peter Thiel at Center of Facebook’s Internal Divisions on Politics.” The last sentence quoted above appears in the online version, but not in the print version, of the article.)

Newark Charter Schools Increase Math and Reading Scores

(p. A15) In a new study for the Manhattan Institute, I find that attending a Newark charter school that participates in the city’s common enrollment system leads to large improvements in math and reading scores. The benefits are especially pronounced for students who attend a charter school run by either the KIPP or Uncommon Public Schools network, which together account for half the city’s charter-school enrollment. These national networks employ models that focus on high expectations for both academic performance and student behavior. Researchers have found similar results in Boston and Denver.

That’s significant because, thanks largely to a $100 million gift from Facebook CEO Mark Zuckerberg and his wife, Priscilla Chan, Newark’s charter schools are among the most extensive and inventive in the nation, enrolling about a third of the city’s roughly 55,000 public-school students.

For the full commentary, see:

Marcus A. Winters. “Cory Booker Goes Down Fighting.” The Wall Street Journal (Wednesday, January 15, 2020): A15.

(Note: the online version of the commentary has the date Jan. 14, 2020, and has the same title as the print version.)

The “new study” mentioned above, is:

Winters, Marcus A. “Charter Schools in Newark: The Effect on Student Test Scores.” Manhattan Institute Report, January 2020.

To Be Happy, “We Need to Have Goals”

(p. B8) A little over a year ago, I drove home from the airport with the windows down and the radio on full blast after filming the last scenes for the Netflix docu-series “The Innocent Man.” I was so proud of the work I’d done investigating two wrongful murder convictions in a small city in Oklahoma in the 1980s. This was work that mattered, and I was thrilled to be a part of it.

A few days later, I sat in my truck and cried. An empty work schedule yawned before me, and I was sure that my most meaningful achievement was in my rearview mirror.

This wave of hopelessness has a name: I was experiencing arrival fallacy.

“Arrival fallacy is this illusion that once we make it, once we attain our goal or reach our destination, we will reach lasting happiness,” said Tal Ben-Shahar, the Harvard-trained positive psychology expert who is credited with coining the term.

. . .

To be clear, acknowledging the power of arrival fallacy does not mean we should settle for a life of mediocrity.

“We need to have goals,” Dr. Ben-Shahar said. “We need to think about the future.” And, he noted, we are also a “future-oriented” species. In fact, studies have shown that the mortality rate rises by 2 percent among men who retire right when they become eligible to collect Social Security, and that retiring early may lead to early death, even among those who are healthy when they do so. Purpose and meaning can generate satisfaction, which is part of the happiness equation, Dr. Gruman said.

So wait. Reaching a goal can make us unhappy, but setting goals makes us happy? It sounds like a conundrum, but it’s not if you plan correctly, Dr. Ben-Shahar said. His advice is to lay out multiple concurrent goals, both in and out of your work life.

For the full commentary, see:

A.C. Shilton. “Success Doesn’t Always Bring Happiness.” The New York Times (Monday, June 3, 2019): B8.

(Note: ellipsis added.)

(Note: the online version of the commentary has the date May 28, 2019, and has the title “You Accomplished Something Great. So Now What?”)

OUP Offers Free Download of Chap. 9: “Innovation Bound or Unbound by Culture and Institutions”

Oxford University Press (OUP) has created a list of 6 books they recommend on business innovation. If you follow the link below, you can download a free PDF of Chapter 9 (“Innovation Bound or Unbound by Culture and Institutions”) of my Openness to Creative Destruction: Sustaining Innovative Dynamism. Alas, I think the free download is only available through February 29, 2020. (Chapter 9 is not my favorite chapter, but free is free;)

My book is:

Diamond, Arthur M., Jr. Openness to Creative Destruction: Sustaining Innovative Dynamism. New York: Oxford University Press, 2019.

Leapfrog Innovation May Solve Frustration of Multiple Charger Connectors, Without Government Regulations

(p. B3) LONDON — The European Union wants to make it easier to charge your cellphone and other devices.

This week, members of the European Parliament held a hearing on a measure to require smartphone makers to produce a common charger for all mobile and portable devices sold in the region, including tablets, e-readers and digital cameras.

The goal: no more frustration at borrowing a friend’s charger only to find it has a Lightning connector when you need a USB-C.

. . .

The European Commission is scheduled to publish a study in the coming weeks to deliberate the next legislative steps.

But device makers may eventually decide the issue before the legislators do. Each year, an increasing number of phones arrive on the market with another option: wireless charging.

For the full story, see:

Geneva Abdul. “E.U. Keeps Up Its Push For Common Chargers, Citing E-Waste ‘Ocean’.” The New York Times (Saturday, January 18, 2020): B3.

(Note: ellipsis, and bracketed date, added.)

(Note: the online version of the story was updated Jan. 19, 2020, and has the title “A Common Charger for All Phones? The E.U. Is on the Case.”)

The Odgers paper, mentioned in the passage quoted above, is:

Odgers, Candice L., and Michaeline R. Jensen. “Annual Research Review: Adolescent Mental Health in the Digital Age: Facts, Fears, and Future Directions.” Journal of Child Psychology and Psychiatry (published first online Jan. 17, 2020).

“You Can’t Donate People Out of Poverty”

(p. A9) Dr. Polak, . . . , found that poor people valued and cared for things they had bought. “You can’t donate people out of poverty,” he told The Wall Street Journal in 2007.

The trick was to figure out which tools were needed and how to make them at an affordable cost. For nearly four decades, Dr. Polak roamed the world’s poorest regions and quizzed farmers about their needs. “The small farmers I interviewed became my teachers,” he said in a video posted by one of the organizations he founded, iDE, formerly known as International Development Enterprises.

While visiting Somalia in the early 1980s, he noticed people lugging water and other items by hand or with awkward donkey carts. Working with local blacksmiths, he devised a better donkey cart, using parts from junked automobiles. From that point, he relied on market forces: Blacksmiths began making and selling the carts for the equivalent of about $450. Buyers of the carts could earn $200 a month for transporting goods, according to iDE.

. . .

Paul Polak (pronounced POLE-ack) . . .

. . .

He wrote or co-wrote two books drawing on his experiences, “The Business Solution to Poverty” (2013) and “Out of Poverty” (2008).

For the full obituary, see:

James R. Hagerty. “Roving Entrepreneur Built A Better Donkey Cart.” The Wall Street Journal (Saturday, October 26, 2019): A9.

(Note: ellipses added.)

(Note: the online version of the obituary has the date Oct. 25, 2019, and has the title “Paul Polak Built Better Tools for Farmers in Poor Countries.”)

The books authored, or co-authored, by Paul Polak, mentioned above, are:

Polak, Paul. Out of Poverty: What Works When Traditional Approaches Fail. San Francisco, CA: Berrett-Koehler Publishers, 2008.

Polak, Paul, and Mal Warwick. The Business Solution to Poverty: Designing Products and Services for Three Billion New Customers. San Francisco, CA: Berrett-Koehler Publishers, 2013.

Cheering Entrepreneurs “Because They’ve Lived the American Dream”

(p. B1) Wall Street’s disdain for the bottom-up populist campaigns of Senators Elizabeth Warren of Massachusetts and Bernie Sanders of Vermont has gotten a lot of attention. The candidates’ full-throated attacks on corporate greed, extreme wealth and banking excesses are backed up by ambitious plans to upend the industry’s everyday operations.

Wariness extends far beyond an elite financial fellowship, though, to many small and medium-size businesses whose executives are not reflexively Republican but worry that the ascendancy of a left-wing Democrat would create an anti-business climate.

. . .

Michael Brady, the owner of two employment franchises in Jacksonville, Fla., is one of the independent business executives interviewed who feel unappreciated. “I get up before 6 o’clock every morning and work hard,” he said. “I put 200 people to work every week.”

Mr. Brady, 53, said he voted for Barack Obama in 2012 and Mr. Trump in 2016. Since then, he said, some of the president’s actions and “some of his tweets” have made him cringe.

He said he could vote for a Democrat this year. But he finds several of the economic proposals from the party’s left wing off-putting, mentioning free college tuition and a nationwide $15-an-hour minimum wage.

What particularly irks Mr. Brady, though, are some of Ms. Warren’s statements about successful entrepreneurs’ not having built their businesses entirely on their own. Attacks on the country’s wealthy elite have also grated.

“When did the word millionaire or billionaire become a bad word?” he asked. “I cheer those people on because they’ve lived the American dream.”

For the full story, see:

Patricia Cohen. “Employers Are Leery Of Warren And Sanders.” The New York Times (Saturday, January 18, 2020): B1 & B5.

(Note: ellipsis added.)

(Note: the online version of the story has the date Jan. 17, 2020, and has the title “Trump Fans or Not, Business Owners Are Wary of Warren and Sanders.”)

“The Churning, Extravagant, Perfectionist Imagination of” Walt Disney

(p. A15) As understatements go, this one’s a doozy. Its source was Roy Disney, the less heralded, less handsome and—as gleaned from Richard Snow’s richly engaging “Disney’s Land”—less headstrong brother of Walt Disney. Since 1923, Roy had been the business brains of the Disney company was no stranger to his kid brother’s “screwy ideas.” But when he was informed after the war that his sibling had been, over his objections, slyly seeking funds to develop his own amusement park, Roy’s response was: “Junior’s got his hand in the cookie jar again.”

. . .

. . . when Roy first happened upon his brother’s maneuvering, amusement parks were passé at best, crime-ridden at worst and financial sinkholes at their core. Walt, having hired the Stanford Research Institute for a feasibility study, was told that he would fail if his park didn’t include such proven winners as a Ferris wheel, a roller coaster and games of chance—none of which Walt wanted cluttering his dreamscape.

Joining the chorus of dissent was Walt’s wife, Lillian. She had tolerated her hobbyist-husband taking over her backyard rose garden with his steam locomotive, but she “raised the dickens” (Walt’s words) when her perennially boyish 52-year-old spouse told her that he had sold their desert vacation home and borrowed $250,000 against his life insurance so that he could seed his plans for the sort of enterprise that looked to be, as she put it, “not fun at all for grown-ups.”

. . .

Roy, Mr. Snow acknowledges, “never lost his calm understanding that the company’s prosperity rested not on the rock of conventional business practices, but on the churning, extravagant, perfectionist imagination of his younger brother.” For Walt’s part, he is quoted saying in 1957, just as Disneyland was making him rich, that “if it hadn’t been for my big brother, I swear I’d’ve been in jail several times for checks bouncing.”

For the full review, see:

Stephen M. Silverman. “BOOKSHELF; A Day in the Park With Walt.” The Wall Street Journal (Friday, December 13, 2019): A15.

(Note: ellipses added.)

(Note: the online version of the review has the date Dec. 12, 2019, and has the title “BOOKSHELF; ‘Disney’s Land’ Review: A Day in the Park With Walt.”)

The book under review, is:

Snow, Richard. Disney’s Land: Walt Disney and the Invention of the Amusement Park That Changed the World. New York: Scribner, 2019.