Research from the University of British Columbia suggests that initial entrepreneurial success leads to future success. Peter Gustavson certainly hopes this is true. The entrepreneur spent nearly two decades developing Custom House Currency before selling to Western Union. Now he is partnering with another entrepreneur, Marv Holland, to take his company to a new level of performance. Professor Thomas Hellmann says it is not uncommon for successful entrepreneurs to want to try again and not necessarily in the same industry.

QUESTIONS:

1. Describe both Peter Gustavson and Marv Holland as entrepreneurs. Is there a difference? Could this explain why one is “buying in” and the other is “selling out?”
2. Examine the reasons small businesses fail. What synergies does the combined management of Marv Holland and Peter Gustavson bring to Marv Holland Apparel? Do you think the company is more or less likely to succeed with Gustavson involved?
3. In what stage of its life cycle was Marv Holland Apparel prior to the arrival of Mr. Gustavson? What evidence from the article would suggest that he can move the company into the next stage and beyond?

SOURCE: C. Atkinson, “Serial Entrepreneurs Profit From Past Mistakes,” The Globe and Mail (Retrievable online at http://www.theglobeandmail.com/report-on-business/your-business/grow/new-product-development/serial-entrepreneurs-profit-from-past-mistakes/article1783755/)