HT: Do nine out of 10 new businesses fail, as Rand Paul claims? – The Washington Post.
For venture capital start-ups, about three or 4 out of 10 fail; three or 4 out of 10 return the original investment, with the rest offering a substantial profit.
What is the survival rate of new small businesses?
02 Mar 2015 Leave a comment
in economic history, entrepreneurship, survivor principle
Digital ad revenue by company
02 Mar 2015 Leave a comment
in economics of media and culture, industrial organisation, survivor principle Tags: creative destruction, legacy media
This is what is killing the legacy media
28 Feb 2015 Leave a comment
in economics of media and culture, industrial organisation, survivor principle Tags: creative destruction, legacy media
Creative destruction versus the Guardian: A £2-a-month levy on broadband could save our newspapers
20 Feb 2015 Leave a comment
in economics of media and culture, entrepreneurship, rentseeking, survivor principle Tags: legacy media, The Guardian
A small levy on UK broadband providers – no more than £2 a month on each subscriber’s bill – could be distributed to news providers in proportion to their UK online readership. This would solve the financial problems of quality newspapers, whose readers are not disappearing, but simply migrating online.
via A £2-a-month levy on broadband could save our newspapers | Media | The Guardian.
Did The Guardian just come out in support of a poll tax? Most people have broadband, so it’s the same practical effect?
Actively managed share funds are on the way out
20 Feb 2015 Leave a comment
in entrepreneurship, financial economics, industrial organisation, survivor principle Tags: active investing, efficient markets hypothesis, passive investing, William F. Shape
After costs, the return on the average actively managed dollar will be less than the return on the average passively managed dollar for any time period.
—William F. Sharpe, 1990 Nobel Laureate
4 out of 5 actively managed fund portfolios underperformed all index fund portfolios in all scenarios tested.
via The tide is turning as investors switch from high-cost, actively managed funds to index funds for lower costs, higher returns » AEI | Carpe Diem Blog » AEIdeas and Mutual Fund Expenses | Lion’s Share.
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Managerial Econ: Top 5 problem-solving mistakes by MBA’s
19 Feb 2015 Leave a comment
in entrepreneurship, industrial organisation, managerial economics, organisational economics, personnel economics, survivor principle Tags: entrepreneurial alertness, management, MBA
“Avoid jargon” because most people misuse it. Force yourself to spell out what you mean in simple plain English. It will help your thinking and communication.
“What about the organizational design?” Figure out what is causing the problem, and then think about how to avoid the problem. A lot of papers identified a bad decision, and then suggested reversing it. But they neglected to address the issue of why the bad decision was made, and how to make sure the same mistakes wouldn’t be made in the future.
“Don’t define the problem as the lack of your solution.” For example, if the problem is “the lack of centralized purchasing,” then you are locked into a solution of “centralized purchasing.” Instead, define the problem as “high acquisition cost” and then examine “centralized purchasing” vs. “decentralized purchasing” (or some other alternative) as two solutions to the problem.
“What is the trade-off?” Every solution has costs as well as benefits. If you list only the benefits, it makes your analysis seem like an ex post rationalization of a foregone decision, rather than a careful weighing of the benefits and costs. If you spent some time thinking through the tradeoffs, show it. If not, then you should.
“Which language is this?” I write this when I get gobbledygook written in the passive voice with big words that don’t mean anything. Instead write simple declarative sentences that clarify rather than obfuscate. Form is not a substitute for content.
via Managerial Econ: Top 5 problem-solving mistakes by MBA’s.
Words used in Chinese books illuminate how a nation’s values changed during economic reforms | UCLA
19 Feb 2015 Leave a comment
in Austrian economics, development economics, economic history, economics of media and culture, growth miracles, industrial organisation Tags: China, transitional economies
Use of the word “communal” rose sharply during the Cultural Revolution, especially from 1970 to 1976; it decreased during the 1980s. (China launched economic reforms in 1978, and they continue to this day.)
The word “autonomy” was used just one-third as frequently as “obedience” in 1970. In 2008, the ratio had flipped and “autonomy” appeared three times as much as “obedience.”
The increase in use of words like “choose,” “compete,” “private,” “autonomy” and “innovation” demonstrated a growing prevalence of individualistic values coinciding with sharp rises in urban population, household consumption and education levels.
Words reflecting communal values, such as “help” and “sacrifice,” declined in frequency.
via Words used in Chinese books illuminate how a nation’s values changed during economic reforms | UCLA.
An ice-cold whisky dispenser, 1950s.
18 Feb 2015 Leave a comment
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