Monday, August 2, 2010

Why do we need startups? How many startups are enough? Will we ever not need any more new businesses?

Years ago I heard Kenneth Boulding, perhaps the most famous economist to ever teach at the University of Colorado, give his answer to this question.

"The problem is the economists pie chart," he said. "There is no pie. There is just a bunch of damned little tarts."

Large businesses and labor unions will always exist because of economies of scale. But eventually these large organzations get better and better at doing the wrong thing. As technology changes, new opportunities are created.

What's your tart?

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