If I’m right (which can be debated in the comments), what are some key Silicon Valley behaviors or attributes worth emulating? Here are a few ideas:
- Low barriers to entry: Businesses are inexpensive to start and can be scaled over time.
- Many exit strategy options: Active mergers and acquisitions and the occasional IPO provide entrepreneurs and VC’s multiple opportunities to cash out.
- A large number competing firms with a healthy variety of company sizes: this is key since the large wealthy businesses usually acquire the innovative small businesses – without firm-size variety, an industry has a hard time generating the deals that provide the cash to start the next generation of innovative companies.
- Universities leveraged as “idea incubators”
- Young people armed with the tools, skills, and knowledge necessary to have an immediate impact on the industry’s products and services.
- Short inexpensive product development cycles allow companies to aggressively pursue innovative solutions knowing the costs of failure are low
- Low Government Regulation