Many companies—and new ventures are no exception to this generalization—proudly proclaim that “our people are our most precious resource.” In other words, they recognize that the knowledge, skills, talents, and commitment supplied by employees are the most important ingredients in the company’s success—or failure. A vast body of evidence in the field of human resources suggests that this is true: People are a crucial factor in determining the success of any business, large preexisting ones and small start-ups alike.1 Indeed, they are just as important in this respect as technological, legal, and financial factors. For this reason, it is very important that the founders of new ventures devote careful attention to the ...
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