A review of John Hamm’s HBR

article, “Why entrepreneurs

don’t scale”
One of the best and most insightful pieces of writing about the trials of
entrepreneurship comes from John Hamm writing for the Harvard Business
Review.

His article, entitled “Why Entrepreneurs Don’t Scale,” provides a brilliant

look into the behaviours and tendencies of entrepreneurs as their
companies grow from single product firms run by small teams, to multi-
product organizations with a staff list that no longer fits on a sticky note.

At the core of Hamm’s much-referenced article are four key tendencies that

keep many entrepreneurs from growing with their companies.

Four key tendencies of entrepreneurs that

hinder an entrepreneur’s growth

Strong attachment to a founding team

Entrepreneurs tend to feel very attached to their founding team.
Unfortunately, this team may not have the skills to cope with a larger and
larger scope of responsibility.

Difficulty transitioning through growth cycles

Entrepreneurs spend most of their time “working on things” at their

startups. When their job transitions from “working on things” to “managing
things,” entrepreneurs can have trouble switching gears.
Being caught up with tasks may prevent entrepreneurs from seeing the big
picture, and can siphon valuable thought and resources away from
planning the company’s overall direction.

Entrepreneurs’ intense yet narrow focus

Third, the founder’s ability to focus intensely on a narrow set of objectives
can become a hindrance as his or her company grows.

It is extremely valuable for entrepreneurs to be able to exercise single-

mindedness and devotion in order to achieve early milestones. But this
narrow focus can later blind entrepreneurs to the broader range of issues
that must be addressed as part of running a larger organization.

Personality type of tech entrepreneurs

Lastly, Hamm points out that many entrepreneurs who run technology-
centric startups have a personality type that lends itself best to solitary
work.

Working alone may suffice when running a five-person company, but when
a staff of 50 is looking to the founder for leadership, staying cloistered in an
office for weeks at a time does not inspire a team.

According to Hamm, being able to evolve with the growth of the company
takes discipline and the ability to do what doesn’t come naturally to most
entrepreneurs. For a great read, see Hamm’s full discussion of the topic:
“Why Entrepreneurs Don’t Scale.”