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Why Entrepreneurs Hate Working at Big Companies

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Re: Why Entrepreneurs Hate Working at Big Companies

#21
I am an entrepreneur. And I now work in a big company. It has been 10 months since they acquired my company. As far as I am concerned this article is completely inaccurate. I don't give a damn about compensation. IBM gave me enough money for my kids to retire - I don't need more money from them.

It's not easy though. My number one issue is inefficiency. My number two is politics. But I wish I could make it work as within a company like IBM I have the potential to do things that I couldn't have dreamt to do in my own company.

Re: Why Entrepreneurs Hate Working at Big Companies

#22

As someone in a 'big company', I'm often frustrated (although not surprise) that entrepreneurs seem to see this is a binary problem. This piece did touch on the real issue startup founders have with big companies - but only touched on it. The issue is not compensation, the issue is an inability to understand how to traverse the system in order to execute and achieve what you want (and that can include 10x returns). T…

Is it really an "inability to understand", or just an "unwillingness to tolerate"?

"tolerate" makes it sound like it's a negative system.

My experience is that corporations contain systems which startup founders would absolutely love to utilise given the chance.

I have built technology within organisations that within months is in use by multiple clients who have $1B+ market caps. I've seen projects funded with higher risk profiles than most VC's would tolerate because those funding it truly believed it was a good idea.

The idea that corporate systems are something that should be tolerated vs. something that can be navigated and leveraged for a positive outcome is, as I said above, terribly shortsighted.

Re: Why Entrepreneurs Hate Working at Big Companies

#23

I disagree. Many entrepreneurs would love to work for a big company IF they were at the controls and not the cogs. Steve Jobs. He had full control over Apple and could tell it to build whatever he wanted. He worked for a big company. From what I've read, he was happy working there. Larry Page and Sergey Brin, they seem happy working for a big company. Larry Ellison loves working for Oracle. I have yet to hear any dis…

Oh my god... this explains so much.

Re: Why Entrepreneurs Hate Working at Big Companies

#24
post #8

The word "entrepreneur" is getting used as a blanket term way too much to the point that anyone with an idea, CRUD app or working at a startup is an "entrepreneur."

Add the words 'lean' and 'disruptive' to that list. Is there any startup that doesn't claim to be lean and disruptive?

Re: Why Entrepreneurs Hate Working at Big Companies

#25
This article makes me think there are only two kinds of people: entrepreneurs and non-entrepreneurs. And all entrepreneurs hate work at big companies... You see the problem? The article didn't recognize that there are variations about entrepreneurs and there are variations among big companies.

Re: Why Entrepreneurs Hate Working at Big Companies

#26
post #8

The word "entrepreneur" is getting used as a blanket term way too much to the point that anyone with an idea, CRUD app or working at a startup is an "entrepreneur."

This is silly. An entrepreneur is someone who takes a financial risk to organize and operate a business. It doesnt matter what they are doing.

Re: Why Entrepreneurs Hate Working at Big Companies

#27
post #16

>The answer is compensation. Not that big companies don’t compensate them enough, but that the compensation structure is not aligned with an entrepreneur’s world view. As far as I can tell the dominating decision factor for everyone I know who runs their own company seems to be "freedom from management". That's why people work for years at an expected value of a below-market wage. That's why people leave a year into…

You're right to pick this quote. The central thesis, which is about money, rests on the assumption that entrepreneurs are categorical idiots, unable to accurately assess the wealth of data that clearly indicates the vast majority of entrepreneurs earn less than corporate careerists.

Re: Why Entrepreneurs Hate Working at Big Companies

#28
I think the biggest issue for me is the fact that I have to work with people who should have been fired a long time ago instead of some co-founders that know how to execute. Working at a company that has never had a lean year can be very frustrating, people can have little motivation outside of CYA and a paycheck, it's the lack of desire to build something focused and exciting and to push back against bad ideas. This is not every large corporation, but it is many.

Re: Why Entrepreneurs Hate Working at Big Companies

#29
Insane determination when you are building a dream does not always map into insane determination when [whatever you are asked to do in big company].

Consider that many entrepreneurs grow out of even their own company - their own baby - when it moves from startup phases to an x year old mature company.

Re: Why Entrepreneurs Hate Working at Big Companies

#30
It's naive to make blanket statements about entrepreneurs. "Entrepreneurs" are not a homogenous group. It appears the author believes that entrepreneurs generally are overconfident, find insolvency to be an acceptable outcome so long as they have a lottery ticket in hand, and fashion themselves as arbitrageurs.

First, it's worth pointing out that arbitrageurs seek to exploit opportunities that are, in theory, risk free. So to suggest that entrepreneurs are looking to "arbitrage the system" while at the same time shooting for the stars when the odds are "slim" is a curious and entirely inconsistent argument.

That notwithstanding, if you look beyond a small group of 20-something entrepreneurs in the Bay Area, you'll find plenty of people who have started businesses who worked at mid-sized and large companies for years. For some, the knowledge and experience gained allowed them to spot the opportunity they're pursuing. For many, the relationships established and good money earned during those years of service put them in a position to pursue the opportunity with far less risk than they would have taken on if they tried to start a company before they had domain expertise, a professional network and financial resources of their own.

It's sad to see folks reduce entrepreneurship to short-sighted risk-taking by individuals who somehow can't or won't function in an organization that isn't their own. Smart entrepreneurs take calculated risks, start businesses in industries they know and don't begin their journeys with a few thousand dollars in the bank.

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