Ethics and Values: September 2008 Archives

One of the commons myths about entrepreneurs is that when they were in grade school they probably got a "does not play well with others" on their report card.  But, nothing could be farther from the truth.

This Lone Ranger Myth is perpetuated by many first-time entrepreneurs as they launch their first ventures.

Jonathon Fields has a great post on his own tendency to fall into the Lone Ranger Myth at his blog:

My thought process went something like this, "I'm pretty smart, I work harder and faster than anyone I know, I can learn entire new fields in the blink of an eye. And, though it often takes an ounce of blood and a whole lot of pain, I almost always achieve what I'm shooting for. So, really, why would I need anyone else to help me out? All other people do is muck up MY process!"

But the truth is that we all do benefit from help and counsel of others and from building a solid team. 

As Robert Reich points out in his classic essay "Entrepreneurship Reconsidered: The Team as Hero," we seem to want to celebrate the Heratio Alger type stories of entrepreneurs overcoming all odds to make it on their own in our society.

But the truth is, most successful entrepreneurs rely on teams.  They may be formal teams that come together either as partners or as key employees supporting the entrepreneur.  Or, they may be informal teams the entrepreneur pulls together as advisors and mentors. 

Fields reflects on the impact of learning this lesson and letting go of the Lone Ranger Myth:

In business, mentors, partners, managers and staff joined as a family to allow me to accomplish what I ever could have done alone. And, in my personal life, simply asking questions of people close to me, yet far more experienced in the ways of being a good dad, husband and son...and being open to their answers has added so much to my ability to nourish my relationships.

I read an interesting post at the blog Escape From Cubicle Nation.  Pam Slim states the following:

I have a theory I am postulating in The Book that once people disconnect from the "my corporate job sucks and I am trapped in cubicle hell" world and start a successful entrepreneurial venture that they naturally become more compassionate and interested in social change.

I like to ask my students what they would do if they had enough money to take care of all of their financial needs for the rest of their lives.  The majority talk about such things as giving back to parents who have supported them, focusing their time and resources toward addressing social problems, and giving to their church. 

I see evidence every day -- from my students and from the entrepreneurs I meet in the community -- that supports Pam's assertion. 

F. Scott Fitzgerald said, "Optimism is the content of small men in high places."

I could not disagree more.  Optimism is the content of free people who have been empowered to make change. 

Once entrepreneurs are freed to make economic change through their ventures, their desire to turn that energy toward making social changes makes perfect sense.

I received information about a study that reminded me once again that business ethics is messy.

We would like to think that being ethical is a simple process of deciding right from wrong.  Although sometimes it is, more often it seems to take us into a murky gray of ambiguity and seemingly irresolvable dilemmas.

The study was conducted by Experian, a global information services company.  The study examines the payment behavior of the small-business owner in relation to the current mortgage crisis. The study found that business owners with a severe mortgage delinquency were more likely to pay their business obligations instead of their mortgage. It seems that because of deteriorating equity, high mortgage payments and limited refinancing options, business owners chose to ensure the business' survival, preserving their source of income at the risk of losing their home. For the report, Experian compiled a sample of 2.7 million business owners and analyzed the payment behavior of those owners with a mortgage over the course of one year.

New entrepreneurs often struggle with the need to put their house at risk to help start a new venture.  This study suggests that once the business is operating they will tend choose their business over their home.

What an agonizing choice this must be for most of these business owners.

Keep your business afloat, but lose your home.  Keep your home, but risk losing your business.  Ethical choices are not always as clear cut as we would like.

Virtual Entrepreneur reflects on some of the ways that entrepreneurship builds a person's character in a post about the non-financial rewards of starting a business.

While there is no guarantee of riches, through the pursuit, you will obtain rewards of character. And the development of sound character is perhaps the most important perk of entrepreneurship. At the end of the day, no one really cares how much money you made. They care about who you are.

I could not agree more.  And we need to be deliberate in our decision making and actions in business, as each one shapes our character.  From Bringing Your Business to Life:

[T]he moral and spiritual character of an entrepreneur or businessperson will be captured in the responsible relationships he has forged with others in the actions of running his business. More specifically, this can be shaped by the opportunities he pursues, who he chooses to do business with, who he hires, decisions he makes about products and markets, decisions about whether and how fast to grow, the corporate culture he builds, and his engagement with the community as a leader and/or citizen.