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danl

OK. OK. But that's a distorted mirror even though there are truths reflected. The other half of the truth is lack of money or ability to raise some quickly enough is also the death kiss for small enterprises. And I'm not talking about small enterprises on the scale of a but a few million in annual revenues. There are thousands of entrepreneurs with great ideas, solid business plans, customers and expansion potential that bootstrapping alone cannot fund. The cost of entry of bringing any product into the marketplace is exponentially higher today than it was even 20 years ago. It still takes (some) money to make (more) money and bootstrapping entrepreneurs often deplete personal and family capital resources getting the enterprise to the starting line. Lucas may have had few resources relative to what Sony could have thrown at the project but he still invested several tens of millions, while scores of smart investors stood by waiting for him to prove the concept and reduce the risk enough to want to ante in. And let's not forget, by the time they did come crawling out of the woodwork for a piece of the billion plus action, the door was closed.

Bob G

Good point, Danl.

I certainly don't mean to suggest that it is easy for bootstrapers to make it. Certainly more fail than succeed. But the elusive nature, and huge potential payoff of success spawns the sacrifice and "digging" that will lead to innovative, risk taking thinking. Maybe only 1 out of 10 "make it", but the result is that someone take the prize and the rest of us (consumers) benefit from the better product or lower price.

I'd also argue against your point that "the cost of bringing a product to market is exponentially higher today than it was 20 years ago." Today, the supply chain is much more efficient and "anyone" can outsource product development and supply and sell directly to a market online, for example. Again, this is a generalization, but in the "old days" only a small number of companies had the resources and access to get a product or service to market.

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