Science™ Says One Key Warning Sign of a Low-Quality Startup Is Being Named After Its Founder

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I’m reading James Surowiecki’s piece about startup companies, and couldn’t help but laugh when I got to this:

New work by the MIT economists Scott Stern and Jorge Guzman shows that in 15 U.S. states between 1988 and 2014 there was no long-term decline in the formation of what they call “high-quality” startups. Stern and Guzman have figured out the characteristics of startups that are trying to become high-growth firms, which include being chartered in Delaware, registering for patents, and not being named after the company’s founder.

Hmmm. Can we all think of an entrepreneur who (a) names all of his startup companies after himself, and (b) runs about the lowest-quality businesses imaginable? Sure we can. In fact, I’d like Stern and Guzman to rerun their correlations after removing all Trump businesses from their dataset. They might find out that he’s personally responsible for the entire effect.

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America will move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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