Entrepreneurship – Page 92 – artdiamondblog.com

“A Litigious, Protective Culture Has Gone Too Far”

(p. A1) SHOEBURYNESS, England — Educators in Britain, after decades spent in a collective effort to minimize risk, are now, cautiously, getting into the business of providing it.
. . .
Limited risks are increasingly cast by experts as an experience essential to childhood development, useful in building resilience and grit.
Outside the Princess Diana Playground in Kensington Gardens in London, which attracts more than a million visitors a year, a placard informs parents that risks have been “intentionally provided, so that your child can develop an appreciation of risk in a controlled play environment rather than taking similar risks in an uncontrolled and unregulated wider world.”
This view is tinged with nostalgia for an earlier Britain, in which children were tougher and more self-reliant. It resonates both with right-wing tabloids, which see it as a corrective to the cosseting of a liberal nanny state; and with progressives, drawn to a freer and more natural childhood.
. . .
(p. A12) Britain is one of a number of countries where educators and regulators say a litigious, protective culture has gone too far, leaching healthy risks out of childhood. Guidelines on play from the government agency that oversees health and safety issues in Britain state that “the goal is not to eliminate risk.”

For the full story, see:
ELLEN BARRY. “In Britain, Learning to Accept Risk, and the Occasional ‘Owie’.” The New York Times, First Section (Sunday, March 11, 2018): A1 & A12.
(Note: ellipses added.)
(Note: the online version of the story has the date MARCH 10, 2018, and has the title “In Britain’s Playgrounds, ‘Bringing in Risk’ to Build Resilience.”)

“Puttin’ On the Ritz”

(p. C9) The Savoy, which opened in 1889, was glamorous and cosmopolitan, an antidote to Victorian stuffiness. Its owner, Richard D’Oyly Carte, the backer of Gilbert and Sullivan’s comic operas, had a theater next door, and his ambition was to create a modern luxury hotel the likes of which had never been seen. To fulfill his vision, in 1890 he turned to Escoffier and the Swiss hotelier Ritz, a man known for his impeccable taste, and in short order the two men, who’d had a previous success at the Grand Hotel in Monte Carlo, made the Savoy into the most famous and profitable hotel and restaurant in the world.
“Ritz & Escoffier,” Luke Barr’s entertaining narrative history, reads like a novel (complete with cliff hangers and descriptions of the characters’ private thoughts). Both of its subjects had grown up poor, but were opposites temperamentally.
. . .
Neither man had to use the stairs at the Savoy, since the hotel had six elevators, the largest ever seen in Europe, which D’Oyly Carte called “ascending rooms.” There were 400 guestrooms and an unheard-of number of bathrooms–67 all told, many en suite and at no extra charge. (The recently opened Hotel Victoria provided just four for 500 guests.) The Savoy also had electric light that you could switch on or off in your room without getting out of bed, also at no extra charge.
. . .
. . ., D’Oyly Carte gave Escoffier and Ritz free rein from the start. The restaurant became enormously popular, a gathering place open to all who could afford it: aristocrats, the nouveau riche, royalty, Jewish bankers and fur traders (Jews weren’t freely accepted in society at the time), and stars of the theater and opera. Formal evening dress was de rigueur in the dining room and women were admitted–except those of “doubtful reputation and uncertain revenue,” who arrived unaccompanied, wearing makeup and large hats. Mr. Barr writes, “An extravagant hat worn in the evening, Ritz had discovered, was a sign of trouble.” But Ritz not only gave ladies’ banquets, he also successfully campaigned to change the laws against eating out on Sundays. Soon those formerly grim at-home evenings of “cold joint and gloom” became the most fashionable times of the week to dine at the Savoy.
. . .
Ritz had opened the hotel’s doors to anyone with money wearing the right clothes. The old social rules were broken. Mr. Barr comments, “Indeed, there was an element of decadence in the Savoy’s brand of luxury–it was this decadence that made it modern, the sense that pleasure was to be celebrated.”

For the full review, see:
Moira Hodgson. “‘Modern Hospitality.” The Wall Street Journal (Saturday, March 31, 2018): C9.
(Note: ellipses added.)
(Note: the online version of the review has the date March 30, 2018, and has the title “‘Ritz & Escoffier’ Review: Modern Hospitality.”)

The book under review, is:
Barr, Luke. Ritz and Escoffier: The Hotelier, the Chef, and the Rise of the Leisure Class. New York: Clarkson Potter, 2018.

Silicon Valley Warms to Trumps Lower Taxes and Deregulation

(p. B1) SAN FRANCISCO — Two days after Donald J. Trump won the 2016 election, executives at Google consoled their employees in an all-staff meeting broadcast around the world.
“There is a lot of fear within Google,” said Sundar Pichai, the company’s chief executive, according to a video of the meeting viewed by The New York Times. When asked by an employee if there was any silver lining to Mr. Trump’s election, the Google co-founder Sergey Brin said, “Boy, that’s a really tough one right now.” Ruth Porat, the finance chief, said Mr. Trump’s victory felt “like a ton of bricks dropped on my chest.” Then she instructed members of the audience to hug the person next to them.
Sixteen months later, Google’s parent company, Alphabet, has most likely saved billions of dollars in taxes on its overseas cash under a new tax law signed by Mr. Trump. Alphabet also stands to benefit from the Trump administration’s looser regulations for self-driving cars and delivery drones, as well as from proposed changes to the trade pact with Mexico and Canada that would limit Google’s liability for user content on its sites.
Once one of Mr. Trump’s most vocal opponents, Silicon Valley’s technology industry has increasingly found common ground with the White House. When Mr. Trump was elected, tech executives were largely up in arms over a leader who espoused policies on immigration and other issues that were antithetical to their companies’ values. Now, many of the industry’s executives are growing more comfortable with the president and how his (p. B5) economic agenda furthers their business interests, even as many of their employees continue to disagree with Mr. Trump on social issues.
. . .
. . . quietly, the tech industry has warmed to the White House, especially as companies including Alphabet, Apple and Intel have benefited from the Trump administration’s policies.
Those include lowering corporate taxes, encouraging development of new wireless technology like 5G and, so far, ignoring calls to break up the tech giants. Mr. Trump’s tougher stance on China may also help ward off industry rivals, with the president squashing a hostile bid to acquire the chip maker Qualcomm this month. And Mr. Trump let die an Obama-era rule that required many tech start-ups to give some workers more overtime pay.
Mr. Trump “has been great for business and really, really good for tech,” said Gary Shapiro, who leads the Consumer Technology Association, the largest American tech trade group, with more than 2,200 members including Apple, Google, Amazon and Facebook.
Mr. Shapiro said that he had voted for Hillary Clinton, Mr. Trump’s opponent, in 2016, but that he and many tech executives had come around on Mr. Trump. While they disagree with him on immigration and the environment, they have found areas where their interests align, like deregulation and investment in internet infrastructure.
“This isn’t Hitler or Mussolini here,” Mr. Shapiro said. And even though the president’s new tariffs on steel and aluminum could hurt American businesses and consumers, “disagreement in one area does not mean we cannot work together in others,” Mr. Shapiro said. “Everyone who is married knows that.”

For the full story, see:

JACK NICAS. “Silicon Valley, Wary of Trump, Warms to Him.” The New York Times (Saturday, March 31, 2018): B1 & B5.
(Note: ellipses added.)
(Note: the online version of the story has the date MARCH 30, 2018, and has the title “Silicon Valley Warms to Trump After a Chilly Start.”)

Labor-Intensive Tinkering Can Advance Science

(p. A24) When John E. Sulston was 5 years old and growing up in Britain, the son of an Anglican priest, his parents sent him to a private school. There, he discovered, sports were his nemesis.
“I absolutely loathed games,” he said. “I was hopeless.”
When it came to schoolwork, he said, he was “not a books person.”
He had only one consuming interest: science. He liked to tinker, to figure out how things were put together.
. . .
The Nobel he received, shared with two other scientists, recognized the good data he amassed in his work on the tiny transparent roundworm C. elegans in an effort to better understand how organisms develop.
. . .
At the time, it was widely believed that the 558 cells the worm had when it hatched were all it would ever have. But Dr. Sulston noticed that, in fact, the worm kept gaining cells as it developed. And by tracing the patterns of divisions that gave rise to those new cells, he found, surprisingly, that the worm also lost cells in a predictable way. Certain cells were destined to die at a specific time, digesting their own DNA.
Dr. Sulston’s next major project was to trace the fate of every single cell in a worm. It was a task so demanding and labor-intensive that other scientists still shake their heads in amazement that he got it done.
Each day, bending over his microscope for eight or more hours, he would start with a worm embryo and choose one of its cells. He would then watch the cell as it divided and follow each of its progeny cells as, together, they grew and formed the organism. This went on for a total of 18 months.
In the end, he had a complete map of every one of the worm’s 959 cells (not counting sperm and egg cells).

For the full obituary, see:
GINA KOLATA. “John Sulston, 75; Tiny Worm Guided Him to Nobel.” The New York Times (Friday, March 16, 2018): A24.
(Note: ellipses added.)
(Note: the online version of the obituary has the date MARCH 15, 2018, and has the title “John E. Sulston, 75, Dies; Found Clues to Genes in a Worm.”)

Amazon Hires Thousands of Low-Tech Workers

(p. B1) TROMEOVILLE, Ill. — Brandon Williams arrived at an Amazon fulfillment center here, about an hour outside of Chicago, around 7:30 a.m. on Wednesday [August 2, 2017], one of thousands across the country who turned up for the company’s first Jobs Day. While he appeared to wilt slightly during the five hours he waited before an M.C. summoned him for a tour, his enthusiasm did not wane.
“What’s not great about a company that keeps building?” he said, seated in a huge tent the company erected in the parking lot as a kind of makeshift waiting room.
The event was a vivid illustration of the ascendance of Amazon, the online retail company that, to a far greater extent than others in the tech industry, has a seemingly insatiable need for human labor to fuel its explosive growth.
Like other tech giants, Amazon is recruiting thousands of people with engineering and business degrees for high-paying jobs. But the vast majority of Amazon’s hiring is for what the company calls its “fulfillment network” — the armies of people who pick and pack orders in warehouses and unload and drive delivery trucks, and who take home considerably smaller incomes.
The event on Wednesday, held at a dozen locations including Romeoville, Ill., was intended to help fill 50,000 of those lower-paying positions, 40,000 of them full-time jobs.
Those high-low distinctions did not seem to bother the attendees of the jobs fair, many of them united in the conviction that Amazon represented untapped opportunity — that a foot in the door could lead to a career of better-compensated, more satisfying work, whether in fulfillment, I.T., marketing or even fashion.
Mr. Williams, a military veteran studying computer network security at a nearby community college, said he hoped to eventually work his way up to an I.T. job with Amazon. But even those whose ambitions were more in line (p. B7) with the vast majority of available jobs could not hide their excitement.
. . .
Arun Sundararajan, a professor of information, operations and management sciences at New York University’s Stern School of Business, said Amazon’s employment needs are unique among tech companies.
. . .
“While the digital disruption is destroying the traditional retail business model,” Dr. Sundararajan said, “the Amazon model that replaces it will continue to live in the physical world and require human labor for the foreseeable future.”

For the full story, see:
NOAM SCHEIBER and NICK WINGFIELD. “Amazon’s Clear Message: Hiring.” The New York Times (Thursday, August 3, 2017): B1 & B7.
(Note: ellipses, and bracketed date, added.)
(Note: the online version of the story has the date AUG. 2, 2017, and has the title “Amazon’s Jobs Fair Sends Clear Message: Now Hiring Thousands.”)

Dockless Scooter Startups Follow Uber in Asking Regulators for Forgiveness Instead of Permission

(p. B1) Electric scooters have arrived en masse in cities like Los Angeles, San Francisco and Washington, with companies competing to offer the dockless and rechargeable vehicles. Leading the pack is Mr. VanderZanden’s Bird, with rivals including Spin and LimeBike. The start-ups are buoyed with more than $250 million in venture capital and a firm belief that electric scooters are the future of transportation, at least for a few speedy blocks.
The premise of the start-ups is simple: People can rent the electric scooters for about a $1, plus 10 cents to 15 cents a minute to use, for so-called last-mile transportation. To recharge the scooters, (p. B5) the companies have “chargers,” or people who roam the streets looking to plug in the scooters at night, for which they get paid $5 to $20 per scooter.
The problem is that cities have been shocked to discover that thousands of electric scooters have been dropped onto their sidewalks seemingly overnight. Often, the companies ignored all the usual avenues of getting city approval to set up shop. And since the scooters are dockless, riders can just grab one, go a few blocks and leave it wherever they want, causing a commotion on sidewalks and scenes of scooters strewn across wheelchair ramps and in doorways.
So officials in cities like San Francisco and Santa Monica, Calif., have been sending cease-and-desist notices and holding emergency meetings. Some even filed charges against the scooter companies.
“They just appeared,” said Mohammed Nuru, director of the San Francisco Public Works, which has been confiscating the scooters. “I don’t know who comes up with these ideas or where these people come from.”
Dennis Herrera, the San Francisco city attorney who sent cease-and-desist letters to Bird and others, described the chaos as “a free for all.”
Mr. VanderZanden said given how enormous a social shift he believes his scooters are, he was not surprised it ruffled some feathers. But people would eventually adjust, he said.
“Go back to the early 1900s, and people would have a similar reaction to cars because they were used to horses,” he said. “They had to figure out where to park all the dockless cars.”
If there is something familiar about these scooter companies’ strategy of just showing up in cities without permission, that’s because that has now become a tried-and-true playbook for many start-ups. In its early days, Uber, the ride-hailing giant, also barreled into towns overnight to launch its service and only asked for forgiveness later.
“Cities don’t know what it is,” Caen Contee, the head of marketing for LimeBike, said of the arrival of electric scooters. “They don’t know how to permit it until they’ve seen it.”
. . .
“My brother and sister legislators from Santa Monica warned me that that phenomenon has hit their cities,” said Aaron Peskin, who is on San Francisco’s board of supervisors, the city’s legislative branch. Referring to the scooter start-ups, he added, “These people are out of their minds.”

For the full story, see:
Nellie Bowles and David Streitfeld. “Charged Up Over Scooters Despite Uproar.” The New York Times (Sat., April 21, 2018): B1 & B5.
(Note: ellipsis added.)
(Note: the online version of the story has the date April 20, 2018, and has the title “Electric Scooters Are Causing Havoc. This Man Is Shrugging It Off.”)

Dockless Bikes Flood Dallas as Officials Scramble to Regulate

(p. B4) . . . in recent months, Dallas has become ground zero for a nascent national bike-share war, as five startups armed with hundreds of millions of venture capital dollars have blanketed the city with at least 18,000 bikes. . . . . . . , the bikes flooding Dallas are “dockless.” In other words, these bikes–popular in many Chinese cities–can be left almost anywhere when the rider is done.
. . .
City officials are scrambling to write regulations. “You drive down a street, you see bikes everywhere, all scattered out,” said Dallas City Council member Tennell Atkins. “We’ve got to think it through. It’s a mess.”
Other U.S. cities are having a similar experience, if on a smaller scale. The startups, which include China’s two leading bike-share companies, are in the early stages of a plan to blanket U.S. cities with hundreds of thousands of dockless bikes in the coming year.
Typically acting with cooperation and encouragement from city governments, companies seed a city with bikes placed on sidewalks, by bus stops and throughout downtowns. Users pay $1 per half-hour or hour for a bike they locate and unlock with an app on their smartphones, eliminating the need for a bike rack.

For the full story, see:
Eliot Brown. “It’s the Wild West for Bike Sharing.” The Wall Street Journal (Tuesday, March 27, 2018): B4.
(Note: ellipses added.)
(Note: the online version of the story has the date March 26, 2018, and has the title “Dockless Bike Share Floods into U.S. Cities, With Rides and Clutter.”)

“Searing Portrait” of Uber Entrepreneur Travis Kalanick

(p. B3) Mr. Lashinsky’s book gives readers an inside view of the ride-hailing giant’s creation and what created the broken corporate culture that yielded so many negative news stories this year.
“Wild Ride” offers a searing portrait of Uber’s former chief executive, Travis Kalanick, whom Mr. Lashinsky shows to be both a genius and wildly headstrong (and not in a good way). Because of when it was published, the book does not include many of the episodes that consumed Uber in 2017, including Susan Fowler’s viral blog post about the company’s misogynistic culture and the ouster of Mr. Kalanick. But until that book is written — and it surely will be — “Wild Ride” is a good primer.

For the full commentary, see:
Sorkin, Andrew Ross. “DEALBOOK For a Year Filled With News, A List of Books Worth a Look.” The New York Times (Tuesday, DEC. 26, 2017): B1 & B3.
(Note: the online version of the commentary has the date DEC. 25, 2017, and has the title “DEALBOOK; In a Year of Nonstop News, a Batch of Business Books Worth Reading.”)

The Lashinsky book mentioned above, is:
Lashinsky, Adam. Wild Ride: Inside Uber’s Quest for World Domination. New York: Portfolio, 2017.

Individualistic Cultures Foster Innovation

Source of graph: online version of the WSJ commentary quoted and cited below.

(p. B1) Luther matters to investors not because of the religion he founded, but because of the cultural impact of challenging the Catholic Church’s grip on society. By ushering in what Edmund Phelps, the Nobel-winning director of Columbia University’s Center on Capitalism and Society, calls the “the age of the individual,” Luther laid the groundwork for capitalism.
. . .
(p. B10) Mr. Phelps and collaborators Saifedean Ammous, Raicho Bojilov and Gylfi Zoega show that even in recent years, countries with more individualistic cultures have more innovative economies. They demonstrate a strong link between countries that surveys show to be more individualistic, and total factor productivity, a proxy for innovation that measures growth due to more efficient use of labor and capital. Less individualistic cultures, such as France, Spain and Japan, showed little innovation while the individualistic U.S. led.
As Mr. Bojilov points out, correlation doesn’t prove causation, so they looked at the effects of country of origin on the success of second, third and fourth-generation Americans as entrepreneurs. The effects turn out to be significant but leave room for debate about how important individualistic attitudes are to financial and economic success.

For the full commentary, see:
James Mackintosh. “STREETWISE; What Martin Luther Says About Capitalism.” The Wall Street Journal (Friday, Nov. 3, 2017): B1 & B10.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date Nov. 2, 2017, and has the title “STREETWISE; What 500 Years of Protestantism Teaches Us About Capitalism’s Future.” Where there are minor differences in wording in the two versions, the passages quoted above follow the online version.)

Case Study of Effects of Closing a Factory

(p. B1) Perhaps the most illuminating business book of the year, for me, is Amy Goldstein’s “Janesville: An American Story.” If you really want to understand what’s going on in today’s real economy — beyond the headlines about new stock-market highs, tax policy or the latest list of billionaires — spend some time with this true tale of what happened in the middle-class town of Janesville, Wis., after General Motors closed a factory there.
Ms. Goldstein admirably shows all sides of this story, capturing in microcosm all of the issues that so many communities across the United States are facing. You will probably be left doing some hard thinking about what is driving the politics of the moment, although Ms. Goldstein brilliantly, and respectfully, paints the book’s characters with such nuance that readers from across the ideological spectrum are likely to arrive at different conclusions about heroes and villains.
In crafting this deeply reported and riveting read, Ms. Goldstein spent considerable time in Janesville. As a result, you get a palpable sense of what life is like there; of the financial and psychological impact that a major plant closing has; and of the knock-on effects such an event has on other businesses and institutions. She paints vivid portraits of characters who include laid-off workers seeking retraining, union officials and local politicians, Speaker Paul D. Ryan among them. If you liked “Hillbilly Elegy: A Memoir of a Family and Culture in Crisis,” J. D. Vance’s best-seller about growing up in Ohio and the decline of the industrial Midwest, I think you’ll find that “Janesville” makes these issues real in a new and compelling way.

The Goldstein book mentioned above, is:
Goldstein, Amy. Janesville: An American Story. New York: Simon & Schuster, 2017.

Mackenzie Was Wrong in Thinking He Was a Failure, but Was Right About the Northwest Passage

(p. 10) In the summer of 1789, a young fur trader named Alexander Mackenzie led an expedition in search of a Northwest Passage. He and his voyageurs and Chipewyan guides were attempting, 14 years before Lewis and Clark, to cross North America, paddling birch bark canoes down a river they hoped would pierce the Rocky Mountains. Mackenzie was a businessman who wanted to speed the pace of trade by connecting New York and China via an interior passage through the continent. He did find such a route, without knowing it. Mackenzie died thinking he was a failure, when he was really just 200 years early.
Some ideas are fantastically ahead of their time. In 1636, René Descartes created contact lenses, using glass tubes filled with water; unfortunately, the wearer was unable to blink. Charles Babbage invented digital “difference engines” — essentially modern programmable computers but powered by steam — in the 1820s. And Kodak developed digital cameras in 1974 but discarded the product idea because it thought no one wanted to look at photos on televisions.
In a particularly ill-timed episode, Giovanni Caselli invented the fax machine in 1856. Letter writers could scribble a message onto electrically charged foil, and the portions covered by ink would block the flow of current. The stylus of Caselli’s device then scanned each line of text, transmitting the signal via telegraph lines to a second machine, which would scrawl out a “fac simile” of the letter.
To be practical, the system required a coordinated investment throughout a region, and Napoleon III had plans to modernize all of France with Caselli’s pantelegraph, more than a decade before Alexander Graham Bell’s telephone. But before it could be installed, Napoleon III lost the Franco-Prussian War, his government fell, and Paris descended into the brutal anarchy of the Commune. Caselli faded into obscurity, and his technology was forgotten for a century.
Like the fax machine and computer, Alexander Mackenzie’s Northwest Passage was too forward-looking to be practical or useful. Today the melting Northwest Passage — along the North Slope of Alaska, through the maze of Canadian Arctic islands, then back down along Greenland’s west coast, to the Atlantic — is regularly in the news. A holy grail for generations of explorers is now finally open, because of climate change. Giant cargo and oil tankers regularly ply those seas, and even the Crystal Serenity cruise ship, with 1,700 people onboard (many in black tie), has made the journey the past two summers.
. . .
Ideas do not exist only on their own merits. Timing matters.

For the full commentary, see:
Brian Castner. “The Northwest Passage That Might Have Been.” The New York Times, SundayReview Section (Sunday, March 11, 2018): 10.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date March 10, 2018.)

Castner’s commentary is related to his book:
Castner, Brian. Disappointment River: Finding and Losing the Northwest Passage. New York: Doubleday, 2018.