How To Build a Start-Up Nation


There’s been no shortage of debate and discussion about how to replicate the Silicon Valley startup ecosystem (or whether it’s even possible, worthwhile or applicable to other places). I wrote about it way back when in 2007 and certainly a lot has changed and improved in a few years. But when you read a book such as Start-up Nation: The Story of Israel’s Economic Miracle you realize just how far so many places have to go.

Start-up Nation: The Story of Israel’s Economic Miracle is a book about Israel’s brief, violent and incredible history. It goes through a number of interesting and amazing stories of Israeli entrepreneurs, who essentially built a country surrounded by enemies. It’s a fun, interesting read, but not really about specific lessons that you can learn and apply immediately to your own startup endeavors. It does make you go “Hmmm…”

Since reading the book I’ve been thinking about it a lot and how the Israeli startup experience can be applied to other places, including my hometown, Montreal, Quebec. Truthfully, I don’t think you can apply all the lessons and experiences from Israel, simply because what they experienced is so different from other places. Canada, as an example, was not born out of war. We’re not in a constant state of threat, and therefore can afford to be lazy, slower moving and not as intense (although I don’t think we can afford those things, but we do.)

Still, there are some interesting ideas in the book that I do think can apply and should be talked about a lot more for Montreal and many other small but growing startup ecosystems.

  1. You need chutzpah. If you don’t know what “chutzpah” is, look it up. Suffice it to say, as I was reading the book I kept thinking, “Where is Canada’s chutzpah?” Turns out we might have just captured some of that after winning a Gold medal against the US in Olympic hockey. Startups need chutzpah, lots and lots of it.
  2. Failure is inevitable. A lot of people talk about failure in startups, but it turns out that a lot of that is nothing but talk. In many places, Canada included, failure is still failure. A black mark. In Israel they genuinely tackle failure differently.
  3. Tout the exits. The entrepreneurs that exit in Israel are considered national heroes, the stories become legendary. Canada needs more exits, and it needs to tout those that its had. Those referenced in the book are huge, but I still think Canada could do a lot to promote even the smaller exits we’ve seen.
  4. Keep the entrepreneurs. Israel does a good job of keeping people, although they do struggle with brain drain. Canada doesn’t do as good a job of keeping its successful entrepreneurs. Some of them come back, but not many.
  5. Mature students are more successful. One of the biggest differences in Israel is the fact that nearly everyone spends at least 2 years in the army. While in the army they learn a ton of critical skills. Most importantly, they’re maturing – fast. By the time a 22-year old leaves the army, he or she has experienced something that no Canadian will even come close to understanding. Somehow Canada needs to find ways of providing students with more opportunities – and crappy internships at large companies doesn’t count. Students need to be thrown into incredibly intense and meaningful internships and roles. They need real responsibility with real consequences.
  6. Focus beyond your borders. Because Israel is so tiny and surrounded by enemies, it’s forced to look far beyond its borders for success. That means exporting a lot. It also means having a unique worldview. Too few Canadians look beyond their borders to seek out opportunity, learn what’s going on, etc. Reading a couple blogs like TechCrunch and Mashable doesn’t count (although it doesn’t hurt either!) More entrepreneurs need to be networking past their city limits, and need to recognize how much competition is out there. Smaller startup ecosystems have to work extra hard to be on top of everything that’s going on, and need to get their fingers into every pie.

    I’d like to see more valuable partnerships with US and Israeli-based entrepreneurs and investors. There should be Silicon Valley and Israeli bootcamps and/or exchange programs. I haven’t thought through all the mechanics, but we need to be out there. We need to go out, learn, steal, connect … and then come back to our home base.

I would encourage you to read Start-up Nation: The Story of Israel’s Economic Miracle – there’s a very good chance you’ll find some lessons, examples and ideas in there that will help you and your startup … regardless of where you’re located.

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March 2, 2010 Posted in Startups by

  • AndrewPeel

    Ben,

    An interesting read and I will certainly read the book, I think your point about the difficulties in applying the model to already developed country like Canada are very relevant. The areas where you identified Israel's strengths are certainly areas where I would say many western countries like my own, the UK have fallen back.

    It would be interesting to see if South African Leaders identified the same key issues? As they do see to focus on many of the same issues.

    The real challenge for the world is can the UN use this as a blueprint for getting us out of the mess in Iraq? In addition if we ever have to go into another nation again to do nation rebuilding will they bear in mine these areas as key to focus on.
    Andrew Peel

  • http://www.kampanjtshirt.se/ Profilkläder

    Very interesting. I will definitely read the book!

  • http://www.mp3soul.org/ mp3soul

    Very interesting , thaks

  • http://www.mp3soul.org/ mp3soul

    te?ekkürler adam?m

  • http://www.rosssimmonds.com/ TheCoolestCool

    Great read Ben. As a fellow Canadian Entrepreneur I definitely agree that these changes would make our country more start-up friendly. I've always looked at this book and instead of buying it just walked away – I think its time to actually give it a read.

  • http://philgo20.com/ philgo20

    Hopefully BridgeCamp will help match students and great internships : http://twitter.com/bridgecamp

    Totally agree with no 3. A book would help (somewhere in my backlog ;-)

    Great post Ben !

  • http://www.instigatorblog.com Benjamin Yoskovitz

    BridgeCamp and other efforts to bridge universities, students and startups are great ideas. One of the things startups need is to implement more taxing and meaningful internships!

  • http://www.alka.dk/ Bilforsikring

    Students and startups are great ideas. One of the things startups need is to implement more taxing and meaningful internships!

  • maxfinder

    Just finished the book. Interesting read, makes me proud to be a member of the tribe. I'm just afraid I'm going to end up joining the Israeli Army now because of the entrepreneurial benefits, but I guess that's life!

  • http://www.todayskitchensny.com/ Eugene

    It would be interesting to learn how Israel tackles failure. I would definitely look up the book later in my local bookstore. Great post!

  • http://www.sbp-romania.com/ Jake

    I agree with most of what you're saying, but it's difficult to put internships in real decision making positions. It's a vicious circle actually. They lack experience and confidence of taking the necessary decisions, and companies just can't afford to lose contracts or money over them, so they distribute them to low end, low risk positions, where nobody really learns anything. So they're not getting the necessary experience, and they can't be hired without it.

  • http://www.sunsecurity.com/ dome security camera

    Yes you have taken a right decision…

  • http://firstpagegoogleresults.com/ video seo

    Seems pretty obvious to me — Israel itself is a start-up nation, it would make sense that it might also be populated by people of a similar …

  • golabagbible

    Interesting read defiantly. Will purchase the book :)

  • http://www.instigatorblog.com Benjamin Yoskovitz

    Jake – Agreed, it is a challenge, but somehow there have to be ways of getting around those issues so that we can provide young people with quality, tough internships or early jobs so that they're being properly trained for the future.

  • http://www.instigatorblog.com Benjamin Yoskovitz

    Eugene – They talk a lot about failure in the book. They accept it in Israel quite well, and recognize it as a reality of what's going on. Plus, they compare the failure of a startup to the failure in the army — when you fail in the army people die, which is a much greater failure than anything that could be done with a startup. They live with that every day.

  • http://misteryblog-enrico.blogspot.com/ enrico

    Your article has made me interested. glad to read your article,much knowledge as I can.

    it's great,that's all..^^

  • http://www.todayskitchensny.com/ Eugene

    Now that's intense Ben. No wonder people who come from Israel enjoy much success in most of their endeavors. It's comparable to the discipline of the Japanese people… I mean there was total devastation after WWII but they were the first among Pacific nations to rise back from the ashes (aftermath of their defeat).

  • http://www.thefarmatgreenvillage.com/ Andrew

    Quite an interesting book. Although you have summarized some of the key points here, I'm sure there's more of these in the book. It'll be nice to learn about Israel's secret to success in the business world.

About Ben Yoskovitz
I recently joined GoInstant as VP Product. GoInstant changes how we use the web, making it shareable like never before.

I'm also a Founding Partner at Year One Labs, an early stage accelerator in Montreal. Previously I founded Standout Jobs (and sold it). I'm a hands-on startup guy, helping companies grow successfully from the idea forward. You can reach me at byosko at gmail dot com.

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