Category: Entrepreneurship

Some Entrepreneurs Support Big Government, Except When They Are the Ones Regulated

(p. A11) In October [2015], author Steven Hill will publish a book called “Raw Deal: How the ‘Uber Economy’ and Naked Capitalism Are Screwing American Workers.” At the political conventions next summer, which party’s attendees will be most likely to have read that book?
The ironies run deep. The Uber driver who ferried Jeb Bush around San Francisco said the former Florida governor was a nice chap but added that he still planned to vote for Mrs. Clinton–the candidate who regards the innovations that has led to the creation of his job as a problem that government needs to solve.
But is Uber co-founder Travis Kalanick any different? Even as he struggles with regulators taking aim at his business model, Mr. Kalanick has spoken up in favor of ObamaCare. During a visit to New York last November, he enthused that ObamaCare was “huge” for companies like his, on the grounds that the individual market has democratized benefits such as health care.
That’s true insofar as it means he doesn’t have to provide it for his drivers. But the reality is that ObamaCare is to health what taxi commissions are to transportation. And if Uber’s co-founder can’t see the difference, maybe he deserves the Bill de Blasios and Hillary Clintons coming after him.

For the full commentary, see:
WILLIAM MCGURN. “MAIN STREET; Uber Crashes the Democratic Party; The ride-share app is bringing out the inner Elizabeth Warren.” The New York Times (Tues., July 21, 2015): A11.
(Note: bracketed year added.)
(Note: the online version of the commentary has the date July 20, 2015.)

Those Who Suffer from a Problem, Can Invent to Solve It

(p. 1) Is it possible to extract blood from people without causing pain? For decades, this problem has stumped the medical industry. In an effort to replace the old-fashioned needle, companies are trying to deploy laser beams and tiny vacuums to draw blood.
In 2014, an engineer at Harvard named Ridhi Tariyal hit on a far simpler workaround. “I was trying to develop a way for women to monitor their own fertility at home,” she told me, and “those kinds of diagnostic tests require a lot of blood. So I was thinking about women and blood. When you put those words together, it becomes obvious. We have an opportunity every single month to collect blood from women, without needles.”
Together with her business partner, Stephen Gire, she has patented a method for capturing menstrual flow and transforming it into medical samples. “There’s lots of information in there,” Ms. Tariyal said, “but right now, it’s all going in the trash.”
Why did Ms. Tariyal see a possibility that had eluded so many engineers before her? You might say she has an unfair advantage: her gender.
. . .
(p. 4) Eric von Hippel, a scholar of innovation at M.I.T., has spent decades studying what seems like a truism: People who suffer from a problem are uniquely equipped to solve it. “What we find is that functionally novel innovations — those for which a market is not yet defined — tend to come from users,” he said. He pointed out that young Californians pioneered skateboards so that they could “surf” the streets. And surgeons built the first heart-and-lung machines to keep patients alive during long operations. “The reason users are so inventive is twofold. One is that they know the needs firsthand,” he said. The other is that they have skin in the game.

For the full commentary, see:
PAGAN KENNEDY. “The Tampon of the Future.” The New York Times, SundayReview Section (Sun., APRIL 3, 2016): 1 & 4-5.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date APRIL 1, 2016.)

Pagan Kennedy’s book, that is related to her commentary quoted above, is:
Kennedy, Pagan. Inventology: How We Dream up Things That Change the World. New York: Houghton Mifflin Harcourt Publishing Co., 2016.

Tesla Model 3 Excites Venturesome Consumers

America’s venturesome consumers are hungry for products exciting enough to justify enthusiasm. They are desperate for evidence that the future can continue to look bright.

(p. B2) DETROIT — Despite a steady stream of new models from a number of automakers, sales this year of electric and hybrid vehicles have failed to keep pace with the growth in the overall American market.
But if the market for electrified cars was slumbering, Tesla Motors woke it up with a jolt Thursday [March 31, 2016] with the unveiling of its coming Model 3 lineup of affordable, zero-emission vehicles.
Given that electric and hybrid vehicles account for only about 2 percent of last year’s record-setting sales in the United States, the extraordinary reaction to Tesla’s first mass-market model was a vivid demonstration of the potential demand in the segment.
“It shows that the future of electric vehicles is not necessarily bleak,” said Alec Gutierrez, an analyst with the research firm Kelley Blue Book. “Maybe we’ve been waiting for the right products that resonate with consumers.”
Tesla said on Friday that it had booked reservations — at $1,000 each — from nearly 200,000 people for the first Model 3 sedans, which will not be available until next year.
With a starting price of $35,000 and a battery range of 215 miles, the new Tesla is a big leap in the company’s expansion beyond expensive luxury models.
“The final step in the master plan is a mass-market, affordable car,” Elon Musk, Tesla’s chief executive, said at the lavish introduction of the Model 3 held at the company’s design studios in Hawthorne, Calif.

For the full story, see:
BILL VLASIC “In Clamor for new Tesla, Signs of an Electric Future.” The New York Times (Sat., APRIL 2, 2016): B2.
(Note: bracketed date added.)
(Note: the online version of the story has the date APRIL 1, 2016, and has the title “Tesla’s New Model 3 Jump-Starts Demand for Electric Cars.”)

Feds’ Regulatory Delay Supports High-Fare Trans-Atlantic Airline Oligopoly

(p. B1) In the past three years, Norwegian, one of Europe’s biggest low-cost airlines, has quietly established a beachhead in the trans-Atlantic market by offering low-fare, no-frills service on long-haul flights.
Thanks to a small but expanding fleet of fuel-efficient planes combined with deeply discounted ticket prices, Norwegian Air Shuttle has attracted a growing number of leisure travelers looking for cheap flights.
It is all part of the vision of Norwegian’s outspoken chief executive, Bjorn Kjos, who is determined to force the same kind of low-fare competition on international routes that has been so successful in domestic markets for airlines like Southwest and Spirit, and Ryanair in Europe.
. . .
But Norwegian’s expansion has been stymied by vigorous opposition. Legacy airlines on both sides of the Atlantic see a low-cost competitor on their cash-cow routes as a major threat to their long-term profitability. Labor unions object to Norwegian’s plans to hire flight crew from Thailand, a practice they have repeatedly described as “labor dumping.”
The airline has also faced lengthy delays in receiving regulatory approvals in the United States.
. . .
(p. B4) A spokeswoman for the Transportation Department did not give any reasons for the delays that have left Norwegian in bureaucratic limbo in the United States. The airline’s first request was filed more than two years ago. . . .
The long delay in approving the application “does not reflect well on the political independence of the Department of Transportation with respect to the free trade principles behind the E.U.-U.S. open skies agreement,” according to a report by analysts at the CAPA Center for Aviation. “The calculated inaction only serves to restrict competition and to deny consumer choice.”
. . .
“There is still a lot to do,” Mr. Kjos said. “We have to think about how to fly more people more cheaply. There are hundreds of millions of people that don’t have access to cheap flights.”

For the full story, see:
JAD MOUAWAD. “Norwegian Air Flies in the Face of the Trans-Atlantic Establishment.” The New York Times (Tues., FEB. 23, 2016): B1 & B4.
(Note: ellipses added.)
(Note: the online version of the story has the date FEB. 22, 2016.)

Tech Replaces Labor When Government Raises Labor Costs

(p. A11) In late 2013, Chili’s and Applebee’s announced that they were installing more than 100,000 tableside tablets at their restaurants across the country, allowing customers to order and pay their bill without ever talking to a waiter. The companies were soon followed by Buffalo Wild Wings, Panera Bread, Olive Garden and dozens of others. This means fewer servers covering more tables. Quick-service restaurant chains are also testing touch-screen ordering.
. . .
So why the increased use of technology? The major reason is consumer preference. Research shows that many appreciate the speed, order accuracy, and convenience of touch screens. This is particularly so among millennials who already do so much on smartphones and tablets. I’ve watched people–young and old–waiting in line to use the touch screens while employees stand idle at the counter.
The other reason is costs. While the technology is becoming much cheaper, government mandates have been making labor much more expensive.
In 2015, 14 cities and states approved $15 minimum wages–double the current federal minimum. Additionally, four states, 20 cities and one county now have mandatory paid-sick-leave laws generally requiring a paid week of time off each year per covered employee. And then there’s the Affordable Care Act, which further raises employer costs.

For the full commentary, see:
ANDY PUZDER. “Why Restaurant Automation Is on the Menu; Forget about robot waiters, but technology helps cut government-imposed costs. And consumers like it.” The Wall Street Journal (Fri., March 25, 2016): A11.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date March 24, 2016.)

Frackers Have “Enthusiasm, Empiricism, Technical Inventiveness, and Fearlessness to Try and Err”

(p. A9) It’s a complicated yarn that Gary Sernovitz, a novelist and energy investor, spins in “The Green and the Black” and one that is still revealing fresh plot twists. Just last week, the shale boom’s most Shakespearean figure, Aubrey McClendon, died in a car crash the day after he was indicted on charges that he had rigged bids for oil and gas leases in Oklahoma. McClendon was dazzlingly ambitious and persuasive, if perhaps blithe to humdrum legalities.
Other pioneers of America’s new energy age have been equally vivid. George Mitchell of Mitchell Energy was a Greek immigrant who began wildcatting in the 1950s and fracked the Barnett Shale in Texas for nearly two decades before he could make it work financially. By that time he was 77. Harold Hamm of Continental Resources, the 13th child of Oklahoma sharecroppers, became a multi-billionaire by fracking the Bakken formations across Montana and North Dakota. It was men like these, willing to keep buying land and drilling whether they were nearly bankrupt or billionaires, that Mr. Sernovitz credits for the shale revolution.
. . .
He writes: “For those who lament that America no longer makes anything but bond traders, for those who think that ‘maker’ culture only exists in a bearded guy pickling compassionately farmed okra in Austin, spend some time with oil industry engineers to absorb their enthusiasm, empiricism, technical inventiveness, and fearlessness to try and err.”

For the full review, see:
PHILIP DELVES BROUGHTON. “BOOKSHELF; The Shale Revolutionaries; There are energy deposits all over the world. Yet drilling oil and gas out of once-inaccessible shale was only pursued vigorously in the U.S.”The Wall Street Journal (Fri., March 18, 2016): A9.
(Note: ellipsis added.)
(Note: the online version of the review has the date March 17, 2016.)

The book under review, is:
Sernovitz, Gary. The Green and the Black: The Complete Story of the Shale Revolution, the Fight over Fracking, and the Future of Energy. New York: St. Martin’s Press, 2016.

Federal Regulations Restrict Concrete Innovation

(p. B1) Chris Tuan, a professor of civil engineering for the University of Nebraska at the Peter Kiewit Institute, has been perfecting an electrically semiconductive concrete over the past 20 years.
The mixture includes a 20 percent mix of steel fibers, shavings and carbon added to a traditional concrete mix. Steel reinforcing bars serve as the conductor, and once electricity is added, the concrete heats to 35 to 40 degrees — just enough to melt the ice and snow.
. . .
For now, the concrete can’t be used in public spaces. Anything exposed and electrified above 48 volts — much less than the 208 volts used in Tuan’s concrete — is considered high voltage and is not allowed. Federal law will have to be rewritten to change that.
. . .
Tuan said traditional concrete needs to be replaced every five years or so. Without chemical use, the electric concrete lasts much longer, with fewer potholes. His concrete is also maintenance-free, because the power cords and conductive rods are encased in the concrete and not exposed to the elements.
. . .
In 2013 Tuan also implemented his concrete on ramps in China. He recently installed a private driveway in Regency using the legally allowed 48-volt limit, which is less energy efficient.
“If the government or if insurance agencies approve this technology, then everybody can use it,” Tuan said. “But right now, it’s almost cost prohibitive.”

For the full story, see:
Reece Ristau. “In Concrete World, This Is Hot Stuff.” Omaha World-Herald (Tues., JAN. 15, 2016): B1 & B2.
(Note: ellipses added.)
(Note: the online version of the story has the title “Special Concrete Mix Can Melt Snow and Ice All by Itself — Just Add Electricity.”)

The Use of Virtual Reality (VR) in Education and Training

(p. B5) The thing that’s especially difficult to convey about “room-scale” VR–the kind enabled by the HTC Vive, where you can actually walk around with a headset on, exploring a virtual environment in exactly the same way you would experience a real one–is just how compelling it is. “Any VR experience is so much more engrossing than any you’d have on a flat screen,” says Patrick Hackett, senior user interface designer at Google for the Google Cardboard VR headset.
That has potentially huge implications for education.
Amir Rubin, head of VR software company Sixense, is working with a client on a system to train thousands of technicians to decommission nuclear-power plants. “Any application that has high liability, where teaching students has a high cost of insurance, and is high risk, we’re seeing people ask for VR training,” says Mr. Rubin. At Stanford, Dr. Bailenson is taking students on virtual tours of the world’s great works of art–letting them clamber over and deeply experience, for example, Michelangelo’s “David.”

For the full commentary, see:
CHRISTOPHER MIMS. “Virtual Reality Isn’t Just About Games.” The Wall Street Journal (Mon., Aug. 3, 2015): B1 & B5.
(Note: the online version of the commentary has the date Aug. 2, 2015.)

Working for Uber Allows Flexibility for Aspiring Actors

(p. 8) Not long ago, being a waiter at the Ivy or a salesman at Fred Segal was considered the reliable way to earn a living until one got a big break in a Wes Anderson film and got picked up by a major Hollywood agency like CAA or WME.
But Krystal Harris, 27, an actress who appeared in the recent Kevin Hart film “About Last Night,” quickly realized those sorts of jobs were overrated. So now she works primarily for Lyft.
“I was a lead hostess at three different restaurants,” Ms. Harris said. “It really didn’t allow for much flexibility at all. I ended up getting fired for going to an audition. Even when I got my shifts covered, they gave me a hard time.”
In 2013, she turned her Ford Escape into a roving cash register. She had total control over her hours, never needing to clear her schedule with anyone for a last-minute audition. There weren’t even rules against working for both Uber and Lyft.
When acting gigs were hard to come by, she drove as many as 40 hours a week, earning what she estimated was about $20 an hour after Uber and Lyft took their commissions (generally around 20 percent). If the casting gods shined on her, she simply shut off the apps.
“When I’m really on a roll, I don’t have to work,” she said. “As long as my insurance and registration are up to date, I can go back.”
Mr. Totten had a similar experience. Before driving for Uber, he worked at a half-dozen restaurants. All those jobs ended when he had to take off for auditions, or was caught trying to learn lines on the job. Once, he refused to shave because a casting director was looking for someone with stubble.
“My look is my scruff,” said Mr. Totten, who is blond and blue-eyed, with a James Dean meets 90210 appeal. “As soon as I started driving for Uber, things got better.”
. . .
(p. 9) Recently, Mr. Totten considered getting a new side job. “I’m probably going to do Postmates,” he said, referring to the app-based service that delivers artisanal food in under 60 minutes and guarantees its drivers a minimum of $25 an hour. “You can’t live on this anymore.”

For the full story, see:
JACOB BERNSTEIN. “Drivers With Head Shots.” The New York Times, SundayStyles Section (Sun., JAN. 24, 2016): 1 & 8-9.
(Note: ellipsis added.)
(Note: the online version of the story has the date JAN. 23, 2016, and has the title “The New Side Job for Actors and Artists in Los Angeles: Driving.”)

Yamir Jackson-Adens on How You Learn

(p. B4) PHILANTHROPISTS have poured millions of dollars into improving education in the United States — paying for new buildings, buying new computers and even creating new charter schools.
Susan Crown, a member of the billionaire Crown family of Chicago, is trying something different. Two years ago, she began working with organizations that seek to foster character traits like grit, empathy and perseverance, which studies show can be determinants of future success.
But financing organizations that focus on social and emotional learning programs for disadvantaged children was just part of the effort. Ms. Crown said she also wanted to go deeper into understanding why some organizations succeeded so well.
, , ,
Yamir Jackson-Adens, 18, began going to the Philadelphia Wooden Boat Factory in eighth grade. Living in a poor section in the northeast part of the city, he said he had been bullied in elementary school, and he was still shy. The boat program intrigued him, even though he knew no one who owned a boat.
“In boat building, you learn stuff,” Mr. Jackson-Adens said. “You’re free to move. You don’t have a whole lot of restrictions. It’s more of a trial-and-error kind of thing. You learn from those mistakes. In school, if you fail, you’ve failed.”
. . .
Next fall, Mr. Jackson-Adens will be attending Colorado State University to begin studies that he hopes will lead to becoming a veterinarian.
“Boat got me into thinking outside the box,” he said. “It helped me adjust to different situations.”
That is a life skill anyone could use.

For the full story, see:
PAUL SULLIVAN. “A Philanthropist Drills Down to Discover Why Programs Work.” The New York Times (Sat., Feb. 6, 2016): B4.
(Note: ellipsis added.)
(Note: the online version of the article has the date Feb. 5, 2016.)