Smart People Should Build Things

1. Smart people are being systematically funneled into predictable career paths

If you graduate from a national university, there's a very good chance that you're going to become a banker, lawyer, consultant, or doctor, and the odds are high that you're going to pursue one of these professions in New York, Boston, San Francisco, Los Angeles, Chicago, or Washington, DC, regardless of where you originally grew up.

The talent funnel. Top university graduates are overwhelmingly drawn to a narrow set of professional careers and locations. This pattern is driven by:

• Intense recruitment efforts from established firms
• Perceived prestige and high starting salaries
• Well-defined career paths and job security
• Concentration of opportunities in major cities

Consequences of the funnel:

• Limited diversity in career choices for top talent
• Concentration of skills in select industries and locations
• Potential mismatch between individual passions and career paths
• Reduced talent pool for other sectors and regions

2. Professional services industries dominate talent acquisition, creating imbalances

We have reached the evolutionary stage of our economy at which a number of things are happening that have never happened before. Thanks to the institutions and individuals that have preceded us (and lately, some loose Federal Reserve policy), mountains of capital are now available, as well as a massive industry dedicated to managing and allocating this capital.

Talent concentration. Professional services industries, particularly finance and consulting, have developed sophisticated recruitment strategies that dominate the talent market:

• Massive recruitment budgets and on-campus presence
• Well-established internship pipelines
• Prestigious brand recognition among students
• Competitive compensation packages

Resulting imbalances:

• Oversaturation of talent in select industries
• Underrepresentation in other crucial sectors
• Potential misallocation of human capital
• Reinforcement of narrow definitions of success

3. The current system fails to direct talent towards value creation and innovation

We're breeding large battalions of indifferent professionals in a handful of cities when what we need is something very different. We need committed builders.

Misalignment of talent. The current system often directs top graduates away from roles that create tangible value and drive innovation:

• Focus on analytical roles over operational or creative positions
• Emphasis on short-term gains rather than long-term value creation
• Limited exposure to entrepreneurial opportunities
• Reinforcement of risk-averse career choices

Consequences of misalignment:

• Reduced innovation and new business formation
• Concentration of talent in select industries and locations
• Potential lack of fulfillment among professionals
• Missed opportunities for economic growth and job creation

4. Entrepreneurship is challenging but crucial for economic growth and job creation

Entrepreneurship is about organization building—which, in turn, is about people.

The entrepreneurial challenge. Starting and growing a business is inherently difficult, but it's essential for economic vitality:

• Requires diverse skills and perseverance
• Involves high levels of uncertainty and risk
• Demands ability to adapt and solve problems
• Often lacks clear pathways or guarantees

Impact of entrepreneurship:

• Job creation and economic growth
• Innovation and development of new solutions
• Revitalization of communities and industries
• Opportunities for personal and professional growth

5. Building a successful business requires more than just a good idea

There is a common and persistent belief out there that entrepreneurship is about creativity, that it's about having a great idea. But it's not, really. Entrepreneurship isn't about creativity. It's about organization building—which, in turn, is about people.

Beyond the idea. Successful entrepreneurship involves many factors beyond the initial concept:

• Ability to execute and adapt
• Building and managing effective teams
• Securing resources and support
• Developing operational systems and processes

Key components of business building:

• Strong leadership and vision
• Resilience in the face of challenges
• Effective problem-solving and decision-making
• Continuous learning and improvement

6. Early-stage companies need diverse talent to thrive and create jobs

Most people don't build a business alone, and finding quality partners or employees can be time-consuming and unpredictable.

Talent needs. Startups and growth companies require a range of skills to succeed:

• Technical expertise (e.g., engineering, product development)
• Business acumen (e.g., finance, marketing, sales)
• Operational skills (e.g., project management, customer service)
• Leadership and strategic thinking

Impact of diverse talent:

• Accelerated growth and innovation
• Increased ability to solve complex problems
• Improved adaptability to market changes
• Enhanced potential for job creation and economic impact

7. Venture for America aims to redirect talent to startups and revitalize communities

We supply talent to early-stage companies so that they can expand and hire more people. And we train a critical mass of our best and brightest graduates to build enterprises and create new opportunities for themselves and others.

VFA's mission. Venture for America seeks to address talent allocation issues by:

• Recruiting top graduates for startup roles
• Providing training and support for aspiring entrepreneurs
• Connecting talent with opportunities in diverse locations
• Fostering a culture of value creation and innovation

VFA's impact:

• Redirection of talent to startups and growth companies
• Revitalization of communities through entrepreneurship
• Creation of new job opportunities
• Development of a new generation of business builders

8. A new culture of achievement should prioritize value creation and common good

We need to restore the culture of achievement to include value creation, risk and reward, and the common good.

Redefining success. A shift in cultural values is needed to encourage diverse career paths and priorities:

• Emphasis on tangible value creation
• Recognition of risk-taking and innovation
• Consideration of societal impact in career choices
• Broadening definitions of achievement beyond traditional metrics

Elements of a new achievement culture:

• Celebration of entrepreneurship and innovation
• Encouragement of diverse career paths
• Recognition of impact-driven work
• Balance between individual success and common good

9. Universities and institutions must adapt to encourage diverse career paths

Universities, media companies, and public figures should promote startup entrepreneurs as role models and invite them to tell their stories.

Institutional change. Educational institutions and influencers play a crucial role in shaping career aspirations:

• Diversifying career resources and guidance
• Highlighting alternative paths to success
• Incorporating entrepreneurship into curricula
• Fostering connections with diverse industries and locations

Strategies for encouraging diverse paths:

• Expanded internship and co-op programs
• Entrepreneurship courses and incubators
• Mentorship programs with diverse professionals
• Showcasing alumni in non-traditional careers

10. Policy changes can help redirect talent towards entrepreneurship and innovation

We should set human capital allocation goals for startups, growth companies, and innovation the same way we do the number of science, technology, engineering, and mathematics graduates or average standardized test scores.

Policy levers. Various policy changes can help encourage talent redirection:

• Incentives for startups and growth companies
• Support for entrepreneurship education and training
• Loan forgiveness programs for startup employees
• Investment in regional innovation hubs

Potential policy impacts:

• Increased startup formation and growth
• More balanced talent distribution across industries
• Enhanced regional economic development
• Improved alignment between education and economic needs

Last updated: November 19, 2024