To disrupt is to know the rules

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Living in the greater Washington region means you are probably not the smartest person at that cocktail party. That’s a plus. Yet being close to the federal government is often seen as an impediment to entrepreneurial activity.

The truth is, this region is intensely entrepreneurial; many are surprised to hear that over the past several years, more new businesses are formed here than in both Silicon Valley and Boston.

Entrepreneurs here know how to build an emerging industry within government regulations. We here acknowledge that in a highly complex post-industrial society, rules will always exist and government will likely set them. Some suggest that entrepreneurs should ignore rules and regulation and “disrupt” them. The point is more nuanced, though, because even when a business seeks to disrupt existing practices, it needs to understand the regulatory environment it is entering. Uber may be disrupting the taxi industry by not working within existing regulations, but it is fully aware of them. It defines its business model and practices by offering more than its regulated competitors.

An entrepreneur who ignores existing regulations fails to understand the competitive environment within which he or she operates. It’s what sets our region’s entrepreneurial successes apart: the differentiator is that many founders here actually played an active role in shaping rules and thinking ahead of them. It’s about both proximity and insight — insight that comes from…

Read entire column at WashingtonPost.com.

 

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