Is This The Black Swan Moment To Solve Big Problems?

Summary of Study

Bottom Line: Coronavirus is the black swan event that will affect everyone. Friends, family, and loved ones will be impacted in some way. During these difficult economic times, it's important to prioritize entrepreneurship, which creates employment and increases wellbeing, more than ever.  This difficult moment creates an opportunity for the next wave of innovative entrepreneurs. 

Young companies are the job creation engine of the world, with about 95% of the net new jobs created in the US over the last 20 years from companies less than 5 years of age. Airbnb, Uber, and Square are just a sample of the many great companies that were forged in the middle of a downturn – and these companies alone have created over 45,000 jobs and created value for millions of customers globally. 

There are several ways for an entrepreneurial spirit to continue during these difficult times: 

  1. Stay open for business: Entrepreneurs and founders drive the economy and job creation, so they must continue to dream big and execute on their ideas. Entrepreneurs must make it clear that they are still open for business during these difficult times and not let the economic situation make them pessimistic. 

  2. Pursue "coopetition":  Balance cooperation and competition. Continue to build relationships and networks. Listen to emerging managers and continue to move forward on novel investment theses. This is an unprecedented time where managers have an even greater responsibility to support themes that serve society. These managers will soon be the new face of venture capital.

  3. Practice empathy: Managers and CEOs have the great privilege and responsibility of helping move humanity forward. They must recognize that everyone is on the same team. They must practice empathy for individuals on the other side of the table.  

Read the full study HERE

Feature Charticle

Net New Job Creation By Firm Age

Kauffman Foundation

Findings:

  • Young companies are the job creation engine of the world, with about 95% of the net new jobs created in the US over the last 20 years were from companies less than 5 years of age.

  • The black swan coronavirus event creates an opportunity for the next wave of innovative entrepreneurs. 

  • There are several ways for an entrepreneurial spirit to continue during these difficult times, including staying open for business, pursuing "coopetition," and practicing empathy. 

Read the full study HERE.