On this week's episode of Inside Outside Innovation, we sit down with Seth Levine and Elizabeth Macbride, authors of the new book, The New Builders: Face to Face with the True Future of Business. We talk about the current and future state of entrepreneurship and hear some stories about new builders making an impact in their local communities. Let's get started.

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Interview Transcript with Seth Levine and Elizabeth Macbride, Authors of The New Builders

Brian Ardinger: Welcome to another episode of Inside Outside Innovation. I'm your host, Brian Ardinger. And as always, we have some amazing guests. Today, we have Seth Levine and Elizabeth Macbride, authors of the new book, The New Builders: Face to Face with the True Future of Business. Welcome to the show.

Elizabeth Macbride: Thank you very much.

Brian Ardinger: I'm excited to have you on. Let me start out with a little background and bios for our audience. Among other things, Seth, you are the co-founder of the venture capital firm Foundry Group and Pledge 1%, which is a global network of companies that have pledged equity and time and product back to local communities.

And Elizabeth, you are an award-winning business journalist, and founder of Times of Entrepreneurship, which is a new publication covering entrepreneurs beyond Silicon Valley, which is a topic near and dear to our heart. So welcome to the show. The first question I want to start with is what's the current state of entrepreneurship and what led you to write this book?

Elizabeth Macbride: So, the current state of entrepreneurship in the United States is not nearly as good as people think it is. We concluded after our two years of working on the book, that entrepreneurship in the US is in this, in a state of profound decline. It's been declining over the past 40 years for a whole host of reasons. And I know we'll get into that some more.

But I'll just answer the question as well about how we came to write the book, which is that I'm the original, like overlooked, not the original one, but an overlooked founder myself. Right. So I got a divorce seven years ago and had to reinvent my career pretty fast as a business journalist to feed my two kids.

In doing that, I ended up founding this publication times of entrepreneurship. And along that journey met Seth, who has, a side specialty to being a venture capitalist, which is really supporting overlooked entrepreneurs. And so, we bonded over that and decided to write a book two years ago. That's how it came about.

Seth Levine: Brian, I guess I'd add to that. We knew that there were really interesting stories, right? You tell many of them on your podcast of people building businesses that were for starters outside of Silicon Valley, and the big tech hubs. But also, really interesting businesses, but that weren't necessarily these sort of high growth tech focused businesses.

And we wanted to tell their stories. Frankly, we thought it'd be kind of a lighthearted book. Interesting look at some founders that maybe were a little bit different than what people think of when they think of founders. But as we did all the research, we realized for starters, what Elizabeth just described, which is that entrepreneurship in the US is actually dying.

And then we also learned that the types of people that are starting new businesses are very different than those people realize. Specifically, that the majority of new business owners are black, brown, female, and also quite a bit older than most people realize. And that, we realized as we came across these data, that these stories really need to be told.

That it sort of went from a lighthearted, Hey, this will be fun. And we'll tell some interesting stories of people doing things out of the mainstream media eye. To, oh wow, there are some critical stories that we need to be telling here because we have a window here to change the trajectory of entrepreneurship in the us, and we'd act on it.

Brian Ardinger: You know, and I think that's one of the things that we obviously talk about, you know, Tech Crunch and you hear the stories of the unicorns and things along those lines. And obviously that's important and that. But can you define, like, what is entrepreneurship to you? It's not just the tech giants that we're hearing about. How do you define a new builder? And what's the difference that you saw out there?

Elizabeth Macbride: The way entrepreneurship traditionally has been defined is broader than the way it's currently defined. And so, when we looked at it and really, there's no reason why we should think of entrepreneurship as only the tech founders of Silicon Valley. They're part of the universe. They're not really the center of the universe. And definitely not the entire universe right. They're maybe 1% of all businesses in the US get venture capital funding.

So, the fact that we're so consumed by that is sort of crazy. Because the other 99% are in fact, the drivers of a lot of jobs, they're actually drivers of innovation, we would argue as well. And they support and are part of our communities in just a host of important, different ways. And as the economy transitions, I think they're going to be even more important. So we define entrepreneurs as a very fundamental basic thing, right. They're people starting businesses.

Seth Levine: And that's always been the case in the US. And really, if you look back, I mean, certainly the US was founded by entrepreneurs. I mean, in some cases, quite literally, right? The Massachusetts Bay Companies, you know, all of these initial settlers that came over were essentially entrepreneurs, right? Who are in business ventures to go and settle new land and send raw goods and other materials back to Europe?

And still, we have this long history of entrepreneurship and something changed in the last maybe 30 years or so, where the concept of entrepreneurship, use to be very broadly defined a shopkeeper is an entrepreneur, a local business owner was an entrepreneur.

It got eaten up by the tech narrative, right? And this idea that the only entrepreneurs that were worth talking about were technology, business founders, and frankly, the only businesses that were worth talking about in the entrepreneurship context are businesses that are, have this aspiration for growth. Right?

You referenced unicorns. And we think that that's incredibly dangerous to the overall dinosaur and frankly just the health of the US economy, because it really only describes such a small number of businesses. And frankly, and I say this from inside the world of venture capital, I'm not convinced that venture is a very good model for creating.

Certainly, it's not a good model for creating broad-based economic development. Right. I mean, we know it can create some really big companies. And by the way, those companies are incredibly important. And other businesses end up being built on those companies. So Shopify or Google, like those are incredible innovations that help other small businesses, but it's just, it's not the only ...

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