Diamond District: Ideas in Short Supply

" Thank you -- Welcome to the diamond district every watch as you know I love hearing the from all of you budding entrepreneurs. Are all hoping that we will have the next best thing. And I'm not aren't -- So you know we. You're an entrepreneur. I've ever going to happen sound effect there. All right well you some idea. Segments from. So you think you're not -- but to screen. Bucky balls in one of them city's -- Test paper. Create pizza box cupcakes stock yeah property -- and all right well some of them. Who knows they could be the next school -- Guitar Hero. How have her. My next gas in the diamond district say yeah. Entrepreneurship. In America is sick I mean. Scott Shane is a professor of entrepreneurial studies at case western university and author of allusions aren't in their -- Scott thanks for joining me. Today in the diamond district -- are you. What I'm telling you. All right thanks so much -- This little doesn't thirteen and depressing you know we always like to promote entrepreneurs sit here on the diamond district. But you're saying that -- now see all the businesses in these big dream that people pat. They're going to go any hair and a few months."

" Well I don't think that's necessarily true I think. Got on increasing weight upon motion that's about small portion of the population starting businesses. Every year but actually the same percentage of people every year on our successful for about the past twenty to 25 years -- have to cut back. Family to -- with the have been through constant -- the -- Improvements starting with going down."

" Off IC okay okay in the bid that's good because I I was actually the other way around. Tom what he's then to the success of these businesses they used to seeing your studies."

" What one of the things is actually. Having a good reason for starting -- business Lotta people started business because they don't want to have a Foster trying to. -- something that tends to not be very good reason people who I'll start for that reason are much more likely to fail and people who start because they think some sort of faith in the marketplace that would be served by a fifteen companies."

" The financial factor he -- talking about the credit crunch out there in Nat thing to be the number one concern. Even if I do start with my credit card well wait. They've got my credit line on my credit cards. You know you can't necessarily go to the -- getting -- this Small Business Administration may -- its lending a little more but that maybe get funds aren't necessarily variant wow. The money issue what do people do about that."

" Well -- actually one of the things that people who told members most of the money that comes from. Just to finance business figures started comes from themselves so. Really if you have capital to find yourself in -- you can put money into your business that's the first thing that's most important thing. It's tough though right now because people aren't able to get the money from credit card companies soared to I think second mortgage on the house to finance their business. And -- generally. It's hard to find money -- that. -- And that is that if it's harder to find money to people who are cannot be very successful they -- to quit earlier and the people. And and going to have less competition."

" What would you suggest people look at having apparently all the time we have these experts on the talk about health care. They talk about the and potentially education is a lot ever going back to school in anything related to the government doling out. These billions upon billions in stimulus are you walk on that same page those area us."

" Well I think that a little bit different picture of this because one thing that's. Important to be successful if not war. He's starting a business having some experience in the industry with a product or service that you're pursuing. So I always tell people can look at what they know him well that's more important trying to achieve that. -- the next fad because most of the time in case the fab four long anyway."

" All right good info there is Scott saying professor. Of entrepreneurial studies at case western university thank you for joining me in the diamond district today's there."