The Horizons Tracker

NOVEMBER 17, 2021

The author believes that while lower costs of capital would certainly help raise the entrepreneurship rate, it would be most beneficial to entrepreneurs with lower skills. This would have less of an impact on higher-skilled entrepreneurs, for whom the decline has been most pronounced. in 2012.

Entrepreneur 107

Entrepreneur Long-term Cost of Capital Engineering 107

Harvard Business Review

FEBRUARY 2, 2012

Today, only 9% of businesses in the world have achieved even a modest level of sustained, profitable growth over the past decade on average (5.5%, earning cost of capital) and that is declining — even though virtually all the businesses aspire to something like this or more.

Competitive Advantage 15

Competitive Advantage Porter Goleman Emotional Intelligence 15

Harvard Business Review

JUNE 18, 2015

Rather, they rely on internal rates of return and multiples of invested capital. Furthermore, few PE investors explicitly use the capital asset price model (CAPM) to determine a cost of capital. We gather career history data for the founders of all 76 private equity firms in our survey.

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

MAY 24, 2017

In contrast, today’s scarcest resource is your human capital, as measured by the time, talent and energy of your workforce. Time, whether measured by hours in a day or days in a career, is finite. Invest human capital just like you invest financial capital. Difference-making talent is also scarce.

Human Capital 15

Human Capital Management Company ROCE 15

Strategy Driven

SEPTEMBER 9, 2011

The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital. Your career depended on that business going forward, and the numbers that mattered had to do with the performance of that business, not with Sony as a whole.

Innovation 50

Innovation NPV Business Model Constraint 50