Is Entrepreneurship Now Only for the Elite?

As a daughter of entrepreneurs who has spent the last 20 years investing in startups, I have watched with a mix of fascination and dismay as the definition of an entrepreneur has evolved. Today, it seems that being an entrepreneur is like getting a membership into an elite club, where visionary innovators are flush with venture capital dollars, trying to disrupt industries and bring their products to the masses in the shortest amount of time.

The Misfits of Yesteryear

When I think of an entrepreneur, I think of my parents. They were misfits. As immigrants, they didn't fit into the conventional corporate American world. For most of their young adult lives, they were often overlooked or looked down upon, struggling against a system that neither understood nor valued their contributions or capabilities. It was their very status as outsiders that fueled their determination and ingenuity.

Contrary to the romanticized image of the visionary dreamer, my parents were pragmatists at heart with an optimistic outlook on life because their survival depended on it. A simple, burning need to survive and thrive despite the odds drove them. They focused on solving real problems with practical solutions, always mindful of the bottom line and the harsh realities of the market. I learned what entrepreneurship was from witnessing them in action.

The Rise of the Elite Entrepreneur

Fast forward to today, where I see a different breed of entrepreneur. Many startups come out of stealth (if they’re lucky), or prestigious incubators and accelerators, armed with glossy pitch decks and well-rehearsed narratives that appeal to a select group of venture capitalists. These entrepreneurs are often well-connected, well-educated, and well-funded from the outset. While there's nothing inherently wrong with this, it has shifted the perception and accessibility of entrepreneurship.

The Consequences

Our society is increasingly divided into the haves and have-nots. Historically, entrepreneurship offered a pathway to bridge this divide, providing opportunities for those who didn't fit the traditional mold of success to create their own fortunes. However, I see too many founders today allowing their inability to raise capital to hold them back from succeeding. This is a false belief. True entrepreneurs don't let the lack of external funding define their potential or their success. They find ways to make things work with whatever resources they have, proving their mettle through resilience and ingenuity.

A Call to Return to Our Roots

It’s time to return to the roots of entrepreneurship. We need to support and celebrate the misfits and pragmatists who challenge the status quo and find creative solutions to everyday problems. This means:

• Lowering Barriers: Creating more accessible pathways for funding and support, particularly for those outside elite circles.
• Valuing Pragmatism: Recognizing the importance of practical, incremental innovations alongside visionary ideas.
• Fostering Resilience: Encouraging a culture that values grit and determination as much as, if not more than, polish and connections.

Entrepreneurship should not be an exclusive club for the privileged few. It should remain a beacon of hope for those who don’t fit into the traditional molds, who are driven by necessity and the desire to make a difference. By embracing the pragmatists and the misfits, we can foster a more inclusive, resilient, and innovative entrepreneurial ecosystem.

At Crescent Ridge, we celebrate and want to fund the scrappy, determined individuals who, against all odds, build businesses that solve real problems and create lasting value. They are the true heart of entrepreneurship, and it's time we remember that.

What do you think?

Allison