The Michael Jordan School of Business

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The situation

Success learns from failure. Over his 15 seasons in the NBA, Michael Jordan missed more than 9,000 shots, lost 366 games, was eliminated 7 times from the playoffs, and on average, he reliably failed to succeed 31 percent of the time. The G.O.A.T.’s failures cultivated his successes. And furthermore, his on-the-court persona framed his off-the-court ventures, amassing him an inspiring net worth, and a culture defining status. What can entrepreneurs learn from him to be-like-Mike?

The complication

The pandemic’s abrupt economic impact highlighted the backbone of the global economy. It isn’t the stock market or composite indexes, but rather small and medium sized businesses and their entrepreneurs who represent the real economy. In Canada, nearly 90 percent of those who work in the private sector are employed by them. In the United States, roughly 30 million enterprises account for nearly two-thirds of net new private sector jobs in recent decades. For the continent of Europe, SMEs represent the majority of businesses in the European Union, employing around 100 million people, and account for more than half of the continent’s GDP. And notably for Africa, nearly 80 percent of new jobs on the continent are provided by African enterprises, where domestic players are seeing exponential growth.

New business models have surfaced narratives on how best to support entrepreneurs. For example, “recovery frameworks” are advocating for capacity building support, more flexible worker training, improving access to diverse labour pools, using more disaggregated data, and including community impact into planning. Furthermore, “resilient entrepreneurship” analyzes digital economy adoption, and the agility of business owners to identify and act.

Novel frameworks are helpful to understand the post-pandemic business environment and what more is needed, but fundamentals remain. Entrepreneurship requires the successful management of risk and constraints. From a business perspective, innovation, influence, and profit, are the fruits sourced from this productive process. But how? Fundamentally, entrepreneurial success requires conquering the mental game within business; as it does in sports. Enter: MJ.

The resolution

The syllabus of the Michael Jordan School of Business would teach two fundamental lessons for conquering the mental game. First, test everything, with a competitive spirit. One must understand both organizational ability and the opportunities available, under very specific circumstances. Knowing how and where you are likely to fail matters, because then you can mobilize knowledge-earned and plan for securing success. This is especially important when conditions tend not to identically repeat, but rhyme. Second, go ahead and sell yourself short. Use the opportunity of time to your advantage. Shorter commitments provide flexible runways allowing oneself to understand “what sticks”, importantly allowing one to appreciate the culture of the moment, while building confidence. This allows for the acceptance of long-term commitments only when they make sense. This is because time leveraged in the short-term provides avenues that in the long-run may actually get you closer to your idealized market value. And most importantly, remembering that failure through these two lessons isn’t the end, it’s just one step closer to another championship, on and off the court.

Go deeper

Entrepreneurship as Experimentation,NBER

“Playing off a comment from the basketball player Michael Jordan about missing shots, “our willingness to fail gives us the ability and opportunity to succeed where others may fear to tread.” Viewing entrepreneurship as experimentation allows individuals and societies to evaluate businesses and technologies in domains with greater uncertainty than otherwise possible, unlocking deep growth opportunities.”

Supporting Entrepreneurship and SMEs: A Post-Pandemic Skills And Training Agenda, Ryerson University

“That is why it is so troubling that the impact of the COVID-19 pandemic on entrepreneurs and SMEs, in most cases, has been much more severe than for larger organizations. Despite their importance, many SMEs are now on the downward slope of what experts are calling a “K-Shaped” economic recovery from the pandemic-induced crisis.”

Women Entrepreneurs Call For Greater Access To Financing ,UN News

“Although there have been significant achievements in the last few decades, women’s socio-economic disadvantage is still reflected in pervasive gender inequalities in earned income, access to productive resources such as credit cards and assets, education, liberty to pursue a profession and access to financing.…With the pandemic creating unprecedented disruptions to global economies and labor markets at all levels, supply chains grounding to a halt and lockdowns resulting in the forced closure of many businesses, it is unsurprising that SMEs were the most heavily impacted.”

8 Entrepreneurial Lessons From Michael Jordan,Inc.

“Entrepreneurs require that same tenacious mindset to grow companies and achieve success. So much of business is a mental game. What separates the most successful entrepreneurs are confidence, commitment and an unflappable belief in themselves, their mission and organization. Once you win the mental game, victory is assured. It worked for Michael Jordan, and it works for entrepreneurs as well.”

Michael Jordan Says No To New Endorsement Deals,George Lazarus

“There was a time early on when any Jordan deal was $1 million plus for five years. Jordan's first endorsement deal was with the Chevy dealers in 1984, his rookie year. Jordan's endorsements were estimated to be worth $47 million in 1997. In addition, he pulled in $36 million in his most recent one-year contract with the Bulls, putting that combined total at $83 million. Jordan has been all over the map in pitching products. The list includes Nike, Gatorade, WorldCom, Bijan Fragrances, Wilson Sporting Goods, Sara Lee meats, Wheaties, Rayovac and the Chicagoland Chevrolet Dealers. Forbes magazine recently estimated that Jordan has pulled down salary and endorsement money exceeding $300 million this decade.”

Michael Jordan Got Paid During The Bulls’ Last Dance,538

“Jordan had earned a combined $27.98 million over his first 11 seasons in the league, so consecutive deals north of $30 million represented quite the raise. During the 1997-98 season — “The Last Dance,” as it were — Jordan earned $33.14 million, which remains without precedent after adjusting for inflation. “He’s in a position to demand pretty much whatever he wants,” his then-teammate Scottie Pippen said in January 1996. “Whether or not this organization will honor it remains to be seen.” At the time, Pippen was, of course, woefully underpaid by comparison, after having earlier elected to sign a long-term contract to prioritize financial security for his family. Jordan went on to earn more than the combined salaries of his teammates and 19 of the 29 teams in the league during the 1997-98 season...As Jordan once put it to the Chicago Tribune: Nobody can really pay me what I’m worth.”