Realize the Dream� This article is a re-printed from the�February 2011� edition, as approved by the�

UP Business Today�

By�Dar Sheperd�

I�n the history of the United�States, there has never been�a greater focus on entrepre-�neurial development than�now. Why? Because the�economy continues to suffer�and we are undergoing a�fundamental shift in how�business is performed here�at home and around the�world. How does an aspir-�ing entrepreneur position�themselves to succeed when�the majority of small busi-�nesses fail?�

In a recent article published�by Alyson Shontell for En-�trepreneur magazine, the�answers as to why busi-�nesses succeed and fail were�documented. Paul Gomp-�ers, Anna Kovner, Josh�Lerner and David Scharf-�stein set out to find why�some entrepreneurs are�more successful than others.�They put together a Harvard�Business School working�paper entitled,�Performance�Persistence in Entrepre-�neurship�.�

Here is a summary of their�findings:�

1. Do serial entrepreneurs�succeed more than first�time entrepreneurs?�Answer: Yes. According to�the Harvard researchers,�there is performance persis-�tence in entrepreneurship.�The authors noted, "All else�(being) equal, a venture-�capital-backed entrepreneur�who succeeds in a venture�has a 30 percent chance of�succeeding in his next ven-�ture."�

2. Who is more likely to�get funded by a VC firm, a�new entrepreneur or a�tried and true one?�Answer: A new entrepre-�neur.�

3. Is entrepreneurial suc-�cess a skill, or is it luck?�Answer: Starting a com-�pany at the right time in the�right industry is a skill.�

4. Does success breed suc-�cess?�Answer: Yes. Entrepre-�neurs with previous suc-�cesses can mobilize more�resources based on their�past success.�

5. Are companies that are�funded by VC firms more�likely to succeed?�Answer: Yes. VCs are bet-�

ter at identifying potential�success and they bring�greater value to the start-up.�

6. If a company's founder�has been successful before,�how important is the VC?�Answer: If a startup is�founded by previously suc-�cessful entrepreneurs, then�the VC firm doesn't really�matter.�

7. Where do most entre-�preneurs get their ideas�from?�Answer: From former em-�ployers.�

8. Will VCs give the same�entrepreneur funding on�their next venture?�Answer: Not usually. You'd�think successful entrepre-�neurs would have no prob-�lem getting funding from�venture capital firms that�previously backed�them...but you'd be wrong.�

9. Who closes VC funding�quicker, serial entrepre-�neurs or newbies?�Answer: Serial entrepre-�neurs receive venture capi-�tal sooner than first-time�entrepreneurs.�

10. Who receives a higher�initial valuation, seasoned�entrepreneurs or new�ones?�Answer: New entrepre-�neurs.�

Real Odds:� Only 3,000�patents out of 1.5 million�are commercially viable, ac-�cording to Richard Mauls-�by, Director of Public�Affairs for the U.S. Patent�& Trademark Office.�

Trade Secret:� Many aspir-�ing entrepreneurs believe�there is abundant govern-�ment money available to�start a new business venture.�This belief is simply not�true. We suggest you do�your homework and begin�working with experienced�professionals who have�achieved entrepreneurial�success themselves.�

Dar Shepherd is Project�Coordinator for the e-Loft�(�www.theeloft.com�), the�business information hub�for aspiring entrepreneurs.�The e-Loft provides con-�sulting and coaching ser-�vices, educational�programs, and venture�capital.�