John Thornill writes about Covid entrepreneurs: “Based on past experience, most of these new businesses will fail, or will fail to grow. But those that succeed could help transform economies around the world. Historic US data shows that surges in new business formation have, with a short time lag, led to corresponding surges in productivity, says John Haltiwanger, professor of economics at the University of Maryland. “Younger businesses are highly innovative, put competitive pressure on mature businesses and lead to productivity growth.” Many governments are currently intent on regulating Big Tech, for understandable reasons. But this should not distract them from nurturing a fresh Covid generation of creatively destructive entrepreneurs, who may be best placed to exploit the business parklands of the post-pandemic world.”
Kumar Mangalam Birla: “The world is awash in capital and there has perhaps rarely been a better time to be an entrepreneur, as everyone from angel investors to the public markets line up to back ideas. The competition for investment opportunities and the Fear of Missing Out (FOMO) have driven up valuations of many fledgling companies to stratospheric levels. Historically, the key question for any new business was whether it fulfilled an unmet consumer need. A hallmark of some new businesses today is that they seek to use the brute force of capital, combined with smart technology and operations, to create new needs that you did not even know existed!…Ultimately, my own view is that at some stage unit economics will have to matter. And trusty old concepts like cash flows and gross margins will guide behavior and actions. The only sustainable moat is the one based on intellect. Large waves of cheap capital will eventually erode all other entry barriers.”
Atanu Dey: “Good governance can work miracles. Lee Kuan Yew demonstrated that. Bad governance can reduce a very capable nation to destitution. Nearly every government that India has had since 1947 has demonstrated that. It is hard to avoid blaming Indians for the lousy leaders they elect. First, they are not very keen on understanding the problem. And when they are faced with hard truths, too many are too ready to find excuses to deny the reality.”
