Say you were given a choice: money or power. Which would you pick? We're guessing that most of you would go for the money (because that's what we'd do). That's not just a wild guess, though. If anything, that's what the Angelo Mozilos of the world and their golden parachutes have taught us—if you can't have both, take the money and run. So, we're vaguely perplexed by the argument venture capitalist Pascal Levensohn makes to VentureBeat in a guest column today. He claims that entrepreneurs these days are less interested in money:
"This unbound spirit has been confirmed by a recent study showing that business professionals are prioritizing power and autonomy over financial gain."
Levensohn goes on to site a Harvard Business School survey that asked entrepreneurs to prioritize what's most important to them. Among young entrepreneurs (ages 20-29) men ranked power and influence as the most important factors driving them, while financial gain was number four on their list. Young women entrepreneurs ranked financial gain as the ninth most important thing them. And that trend stuck in all age groups. Levensohn argues that a turn away from money is an indication that there will be a dramatic surge an entrepreneurship. He writes:
"So if money is not the force pulling your strings - as seems to be the case with many business-minded individuals today - what's to stop you from diving into the entrepreneurial pool sooner than later?...In this context, an economy characterized by climbing rates of unemployment, scarce credit and a shaky stock market may set just the right stage for an entrepreneurial surge."
Setting aside that we're always a little skeptical of these surveys (who wants to put down that they're a money grubber?), it strikes as a strange argument because the premise seems off. The trouble is that power and money aren't mutually exclusive and, in fact, tend to go hand and hand. Think about it: can you call to mind anyone who has substantial influence, but little money (barring American Presidents, who, while their salary is low, still have plenty of perks)? We'd argue that despite this survey, oftentimes the risks that entrepreneurs take—in the face of tremendous adversity like the economic meltdown—have everything to do with a potential and substantial financial gain down the road along with the influence that comes with that. And we don't mean that in condemning way. Levensohn does make a nice point though—after all, who wouldn't want to see a wave of entrepreneurship? The question is whether it reflects reality.
So tell us, how would you answer the survey question? And if you're an entrepreneur, what drives you?
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