Entrepreneurship Isn’t One-Size-Fits-All—And That’s Exactly the Point

Why do some ventures soar while others stall? The answer may lie in the outliers—founders who operate outside the norm.

Our study challenges the idea of a standard entrepreneurial path by applying a power law perspective to understand how founder endowments—those rare, extreme capabilities—shape venture persistence. Drawing on data from over 1,200 nascent entrepreneurs, we reveal a crucial insight: success isn’t just about having strong resources—it’s about aligning those resources with the right expectations and actions.

Outlier founders thrive when they pursue ambitious, high-growth opportunities using novel methods. But when they “play small,” or when average founders chase big, risky goals, ventures are significantly more likely to fail. In short, misalignment between who founders are and what they pursue can undermine persistence.

Our findings offer a new lens on entrepreneurial success: one that highlights the importance of fit between a founder’s profile and the opportunity landscape.

Not all founders should follow the same playbook—and understanding that could change how we teach, fund, and support entrepreneurship.