My friend and former classmate Bryan Hernandez recently posed this question, “Is there meaning in entrepreneurship?”. This question is so important that I had to find some time during my travels to answer it. It’s difficult, but I like these questions, as they always lead somewhere interesting. There’s a summary at the end for the quick take.
A Word on Meaning
Answering a question like this requires at least a brief examination of the meaning of meaning. Since Bryan originally posed the question, I asked him what he thought got to the essence of meaning so I could answer his question. I thought his response was pretty good:
I think meaning comes from a combination of intention and end-of-the-day value. If you intend to solve a problem the meaning of work can be just as important as that problem is bad. If you happen to solve a problem (end-of-the-day value) then your work was still meaningful, you just didn’t necessarily intend it to be.
His answer alludes to the distinction of process and outcome. I think this distinction is important to recognize. Meaning flows from both the process and the outcome.
Process
For me, and I believe in general, entrepreneurship is a way of life just as much as an occupation. You’ll find entrepreneurs in big companies and academic institutions, as well as “out in the wild.”
So what does the process of being an entrepreneur entail? Although many essays could be written on this (and have been), here’s two key aspects:
Identifying a meaningful problem. Important problems are the ones worth solving and worth building an organization in order to deliver the solution. But, I’d caution passing judgments on companies that seemingly provide the answer to meaningless problems. A meaningful problem does not need to be to end world hunger (although doing that in a sustainable way is incredibly meaningful.) For instance, the world would continue without sticker manufacturers. But is producing stickers meaningful? If you asked the founder of a sticker company, someone who probably sacrificed a lot to start this company, you’d probably learn that there is incredible meaning in something so simple. The sticker manufacturer enables self-expression and provides a medium of communication that make people smile, laugh, etc.
So are stickers a frivolous detail of the modern world? Maybe. But the world is an aggregation of many details. Big problems are a result of many small problems, so I wouldn’t be so fast to write them off. (Then of course comes the question of, does producing economic growth have meaning? Despite the form it takes? This is a big question that merits careful thought that won’t be addressed here. )
I’ll turn to Guy Kawasaki, author of Art of the Start. I think Guy has some good thoughts on entrepreneurship. Guy feels the first and most important task for an entrepreneur to accomplish is to “Make Meaning.” Here’s Guy’s words from his book:
The best reason to start an organization is to make meaning…. Meaning is not about money, power, or prestige. It’s not even about creating a fun place to work. Among the meanings of meaning are to
- Make the world a better place.
- Increase the quality of life.
- Right a terrible wrong.
Some may say that entrepreneurship should be more about solving problems with a big market. While I think it’s important to have a big market, I think this is secondary, if anything, by the nature of motivation itself. It’s difficult to take the step from inspiration to perspiration, but it starts with identifying a meaningful problem.
Impact. Entrepreneurship is an avenue for exerting influence on world. Part of engaging in developing a solution to a meaningful problem is believing that one can influence the world’s future for the better. Entrepreneurs must do this. And I believe this part of being an entrepreneur is extremely important and meaningful.
It’s easy to fall victim to the “nihilist’s trap” of believing nothing matters. The world is a big place full of random injustices. It’s easy to say, “what I do doesn’t matter.” This state of mind is dangerous for the individual and the world. It leads to apathy, unhappiness, and the devolution of meaning.
Entrepreneurs are the Nihilist’s doppelganger. They epitomize the complete opposite of “meaninglessness”. Entrepreneurship lends credence to the idea that the future is built one person at a time. (This statement puts me at risk of the reader thinking that I’m probability blind. It certainly takes luck to achieve a successful outcome, or even any outcome. But, the outcome is only achieved by groups of people engaging in the entrepreneurial process.) The sheer determination held by entrepreneurs causes them to be impact players, which makes their actions meaningful. In the engineer’s terms, significant change in a signal (i.e. impact) is indicative of something meaningful, its not just noise.
Outcome
A very intelligent friend of mine, Peter Bojo, once posed the question, “if an entrepreneur doesn’t fill an opportunity [solve a problem], you can’t say that someone else won’t come along and do it.”
This is certainly rational, and at the time, I found it difficult to argue against its accuracy (although not necessarily the interpretation). After gaining a little more experience, I realize this isn’t necessarily true.
The outcome of the entrepreneurial process is subject to randomness, the fickle nature of humans, regulatory and legal systems, technical limits, economy, and so on. And similar to the birth of a child, or the evolution of a single-celled organism, upon studying the process, it seems very unlikely that, through the chaos, the pieces could come together in a meaningful way. And since it is a chaotic process, the outcome is often unexpected.
With this in mind, there are two things to think about. First, this may actually imbibe the process itself with more meaning. By engaging the process, value and meaning can be produced. Second, and more importantly, whether engaging in the entrepreneurial process was motivated by a meaningful problem or not, the outcome of the entrepreneurial process can be very meaningful independent of the motivations.
And what exactly is the outcome? Since the frequent failures seem to result largely in no outcome, the outcome of entrepreneurship is a company, a repeatable (and sustainable) group of processes that generate wealth and address a market need. Yet again, we’re left with the question, are companies and economic growth necessarily meaningful?
To provide a metric for the importance of the venture capital industry, and consequently a proxy for the importance of entrepreneurs, the NVCA has a stat: venture capital-backed companies accounted for $2.3 trillion dollars in revenue in 2006 (17.6% of the US GDP) and %9.1 of private sector employment.
The jobs aren’t necessarily meaningful. But, this doesn’t have to due with the meaning of entrepreneurship or even companies. This has more to do with the difficulties humans encounter when working in large groups.
And the meaning of some companies may be questionable, but the economic benefits and necessary wealth creation are at least a platform that allow us to engage in other meaningful activities. Without private enterprise, who knows where we’d be (not that this isn’t answerable, in fact I’d like to see some good analysis of this question). But, I would venture to guess that we’d be much closer to just subsisting, as opposed to investing our time and resources in other meaningful activities that one could engage in.
[But, I shouldn't leave you with the thought that entrepreneurs only attempt only goal is to start company. As I said earlier in the post (way back, 100 lines previous), entrepreneurship is a way of life. You'll find entrepreneurs in other contexts as well. Not long ago I discovered that world class researchers are also very entrepreneurial, and not just because they're founding companies.]
Summary and Closing Thoughts
It’s difficult to put a finger on meaning. But, I would say it’s safe to say that there is meaning in entrepreneurship, if anything at all is to be considered meaningful. By engaging in the entrepreneurial process, entrepreneurs commit to solving meaningful problems. Even if they fail to engage a truly meaningful problem, they create an opportunity for the creation of a meaningful outcome. And it’s through these outcomes that we have the potential of living a life with meaning beyond subsistence.
On the level of the individual, entrepreneurs exemplify and thrive off impact. They influence the future and others around them one persistent step at a time. The entrepreneurs I’ve met have been among the most inspirational people I’ve encountered. And when I meet someone inspiring that isn’t necessarily trying to found companies, I usually find that they’re very entrepreneurial.
Kevin
9.8.2009