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EntHead Podcast: For Entrepreneurs, By Entrepreneurs!

About EntHead EntHead was founded on the premise of growing and publishing entrepreneurial knowledge, for entrepreneurs, by entrepreneurs. The vision is to help business owners move them, and their clients, beyond profitability and into a valuable entity others want to know and trust. EntHead is the only organization with a daily Podcast focused on growth and outcome based content, dedicated to helping entrepreneurs value their business by growing, to include business expertise, free tools, streamlined techniques, and lessons learned from those who’ve done it before them!
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Dec 14, 2016

STUDY:
Using data on software start-ups from 1990 to 2002, researchers unveiled that collective sense-making in starting a company to pursue a trend can result in consensus behavior among entrepreneurs and venture capitalists.

RESEARCH:
Market search is a critical part of the entrepreneurial process, as entrepreneurs enter new markets to find high-growth areas.

FALSEHOOD:
When spectacular financing results in a collective overstatement of the attractiveness of a market, a consensus emerges that the market is rich, and the path is cleared for many entries, including those that do not have a clear fit.

RESULT:
When failures render a market unpopular, only the most viable entrants will overcome exaggerated skepticism and enter, taking the non-consensus route. Venture capitalists likewise exhibit herding behavior, following other VCs into hot markets. The consensus entrants are less viable, while non-consensus entrants are more likely to prosper.

CONCLUSION:
Non-consensus entrepreneurs who follow, then unfollow the trends, are most likely to stay in the market, receive funding, and ultimately go public.

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