| Silicon Valley is a special place, a place where | | | | there, and everywhere. Our neighbors and |
| dreams come true. What makes Silicon Valley | | | | colleagues around us seem to all be entrepreneurs |
| different? Why is it so entrepreneurial? Why do | | | | or know someone who has succeeded beyond |
| start-ups sprout like weeds here? Innovation is | | | | their wildest expectations. We don't have to go |
| the lifeblood of economies and of nations. GDP | | | | far to find someone who has started a company: |
| growth is often the result. Many other cities and | | | | they live right next door to us or their children go |
| countries have tried to copy Silicon Valley and yet | | | | to school with our children. |
| no one has really been able to duplicate its | | | | In the technology business, success goes |
| success. This is an insider's answer to these | | | | hand-in-hand with failure. We learn more from our |
| enduring questions. | | | | failures. They define us more than our triumphs, |
| At this point, entrepreneurialism has become | | | | and Silicon Valley has had more failures than |
| ingrained in the local culture. My daughter, who is in | | | | anything else. Access to "how to do it" and "how |
| elementary school, does not have an annual | | | | NOT to do it" is nearby, and everyone is willing to |
| science fair. Her school has an Invention | | | | pass on his or her experience. Most of the |
| Convention. The children are not only expected to | | | | universities in the area have entrepreneurship |
| invent something that makes their lives easier or | | | | programs and competitions. There are not just |
| better, they are expected to write a simple | | | | academics teaching at these colleges: many of |
| business plan as part of their projects. This is 2nd | | | | those teaching are retired entrepreneurs who |
| grade in Silicon Valley! Recently, I attended one of | | | | have started some of the noteworthy Silicon |
| the more popular professional events held in | | | | Valley start-ups. In Silicon Valley, we call this |
| Silicon Valley - Tech Titans of Tomorrow. The | | | | "Mentor Capital." |
| title may be a misnomer as these teenagers are | | | | Silicon Valley has immigrants from all over the |
| more apt to be referred to as Today's Teen | | | | world - India, China, Africa, Europe, Australia, and |
| Titans. This annual event invites teenage | | | | every corner of the world. These entrepreneurial |
| entrepreneurs to talk about their organizations and | | | | immigrants have left their homelands and families |
| their products, and concludes with a session | | | | - they are go-getters because they literally did |
| where the teenagers pitch their products to | | | | get-up-and-go. They are risk takers, they are |
| investors for funding. At this year's event, one | | | | highly educated, they work long hours, they are |
| 17-year-old raised money to start an investment | | | | ambitious, and they are willing to work for less |
| fund that is targeted at providing funding to | | | | than market salaries. This large immigrant |
| teenagers to turn their product ideas into a reality. | | | | workforce has also given Silicon Valley a great |
| Another teenager received a grant to install | | | | advantage in the era of globalization with their |
| centralized energy monitors into local schools so | | | | in-depth knowledge and connections throughout |
| administrators could see which rooms and | | | | the world. |
| equipment were creating their huge energy bills; | | | | Silicon Valley people are stock-option savvy |
| the result is a $5,000 per year savings on their | | | | individuals. Almost everyone works for options in |
| electric bills for each school. Yet, another had | | | | Silicon Valley. There is even one recruiter who |
| started his first company at age 11 and had | | | | specializes in finding "employees without |
| started three companies by the time he entered | | | | paychecks" searching for workers who will work |
| college - a lawn service, an company making | | | | for 100% stock options until the start-up secures |
| accessories for handheld PDAs, and an IT | | | | its first round of funding. It's not just the |
| services firms helping what he termed "old people | | | | employees. Services will also defer payment until |
| like my parents and grandparents" with their | | | | a start-up is backed by investors. Many building |
| computers and mobile devices. Yet another | | | | owners have made their money not from office |
| teenager was proud that he had one of the top | | | | rents, but by taking equity stake instead of |
| iPhone applications. | | | | monthly rent checks. Suppliers will also take an |
| There was nothing like this where I grew up in | | | | equity stake instead of cash payment for |
| New York. My parents expected me to go to | | | | equipment. The eco-system of service providers, |
| college and study science and technology and then | | | | employees, and investors is well established in |
| continue on to graduate school-all in hopes of | | | | Silicon Valley, and it's not the exception-it's the |
| landing a good job for life at a Fortune 500 | | | | norm. It takes an extensive community to create |
| company. The environment my daughter is | | | | and foster start-ups and innovation. |
| growing up in would have seemed alien to me as | | | | Recently, I hosted colleagues from the Midwest |
| a child Entrepreneurialism is taught at a very early | | | | who had never been to Silicon Valley before. |
| age in Silicon Valley. | | | | They noted that people in Silicon Valley people are |
| Ideas flow in the valley like a river. There are | | | | unconventional, and they don't feel the need to |
| numerous technical, business, and entrepreneur | | | | conform. Workers in Silicon Valley don't expect to |
| groups everywhere. There are breakfast clubs, | | | | keep their jobs for life; most don't even expect |
| lunchtime roundtables, meet-ups, and evening pitch | | | | to make a decade at a company. I read the |
| sessions. There are so many of these meetings | | | | average worker in Silicon Valley changes jobs |
| and events that one has to be very selective in | | | | every 18 months. Maybe this, too, is part of the |
| choosing which to attend. An entrepreneur can | | | | secret formula. As W. Edwards Deming once said, |
| find someone to talk to almost anytime, | | | | "Innovation comes from freedom. It comes from |
| anywhere-24/7/365. People present their ideas at | | | | those who are obligated to no one. It comes |
| meetings; they talk with colleagues and potential | | | | from people who are responsible only to |
| investors about them; entrepreneurs gather | | | | themselves." |
| feedback and refine and hone their ideas. Product | | | | The cycle of life in Silicon Valley starts when a |
| concepts and new business models are bantered | | | | venture capitalist, angel investor, or former |
| about on a huge scale. It's a regional brainstorming | | | | start-up company provides seed capital to an |
| meeting. This is the reason why, when an idea | | | | entrepreneur with just an idea. If the idea |
| emerges, there can be dozens of start-ups | | | | succeeds, that same entrepreneur becomes an |
| funded to pursue the same product. | | | | investor and that successful startup creates a |
| Bill Gates, Michael Dell, and Steve Jobs are | | | | corporate venture group to fund the next |
| newspaper headliners. To most people, they may | | | | generation of entrepreneurs and start-ups. And |
| as well be fictitious characters in a bestselling | | | | the cycle of innovation continues. |
| novel. In Silicon Valley, entrepreneurs are here, | | | | |