fbpx
Wikipedia

Organizational founder

An organizational founder is a person who has undertaken some or all of the formational work needed to create a new organization, whether it is a business, a charitable organization, a governing body, a school, a group of entertainers, or any other type of organization. If there are multiple founders, each can be referred to as a co-founder. If the organization is a business, the founder is usually an entrepreneur. If an organization is created to carry out charitable work, the founder is generally considered a philanthropist.

Henry Dunant, co-founder of the Red Cross

Issues arising from the role Edit

A number of specific issues have been identified in connection with the role of the founder. The founder of an organization might be so closely identified with that organization, or so heavily involved in its operations, that the organization can struggle to exist without the founder's presence.[1] "One practical way to cope with overreliance on a founder is to distribute management duties so that others are clearly responsible for important operations. If the founder is on the nonprofit's board, part of the solution is to make sure that the board is diverse, balanced, and regularly infused with new blood".[1]

Legal status Edit

The language of securities regulation in the United States considers co-founders to be "promoters" under Regulation D. The U.S. Securities and Exchange Commission's definition of "Promoter" includes: (i) Any person who, acting alone or in conjunction with one or more other persons, directly or indirectly takes initiative in founding and organizing the business or enterprise of an issuer;[2] however, not every promoter is a co-founder. In fact, there is no formal, legal definition of what makes someone a co-founder.[3][4] The right to call oneself a co-founder can be established through an agreement with one's fellow co-founders or with permission of the board of directors, investors, or shareholders of a startup company. When there is no definitive agreement, like a shareholders' agreement, disputes about who the co-founders are, can arise.

Founder emeritus Edit

Some organizations maintain a connection with their founder by establishing a position of founder emeritus, either as an entirely symbolic post, or as a position with some power, such as a permanent position on the board of directors. A drawback to such an arrangement is the possibility that the founder will clash with the person who has replaced them as leader of the organization, and that such a conflict will affect the performance of the founder emeritus as a board member.[5]

Founder's dilemma Edit

In some instances, the desire of the founder to maintain control over the organization becomes a problem because, when an entrepreneurial organization is successful, "[i]t outgrows the ability of the founder, or even of a small team around the founder, to control".[6] The Harvard Business Review identified this problem as the founder's dilemma, noting that in most successful companies, the founder is pushed out of control by investors within the first few years after the formation of the company.[7] In some cases, a company may have multiple founders, and a prominent source of conflict can be disagreements between these founders as the company evolves.[8] There are factors beyond the personality and professional accolades of a startup founder that impact the ability of a company to succeed, like trouble in fundings, sudden market shutdown, not having the right team or poor scaling plan.[9]

Forgotten founder Edit

Another problem that can arise is that of the forgotten founder, a person who participates early on in the formation of an enterprise, but leaves or is ousted before it achieves success, and then returns to claim a legal right to equity, intellectual property, or some other fruits of that success.[10] To avoid this problem, it is advised that the entity "incorporate early and issue shares that are subject to vesting over time".[10]

See also Edit

References Edit

  1. ^ a b Pakroo, Peri (2015). Starting & Building a Nonprofit: A Practical Guide (6th ed.). Berkeley, Calif: Nolo. p. 87. ISBN 978-1413320886.
  2. ^ Securities and Exchange Commission (September 12, 2008), "Guide to Definitions of Terms Used in Form D", SEC.GOV, retrieved July 1, 2014
  3. ^ Lora Kolodny (April 30, 2013). "The Other Credit Crisis: Naming Co-Founders". Wall Street Journal. Retrieved July 1, 2014.
  4. ^ Katie Fehrenbacher (June 14, 2009). "Tesla Lawsuit: The Incredible Importance of Being a Founder". Giga Om. Retrieved July 1, 2014.
  5. ^ Atkins, Betsy (2019). Be Board Ready: The Secrets to Landing a Board Seat and Being a Great Director. NEWTYPE Publishing. p. 84. ISBN 978-1949709339.
  6. ^ White, Colin (2004). Strategic Management. Basingstoke, Hampshire: Palgrave Macmillan. p. 445. ISBN 9781403904003.
  7. ^ Noam T. Wasserman, "The Founder's Dilemma", Harvard Business Review (February 2008).
  8. ^ Shah, Dharmesh (2019) [2010]. "Avoid Co-Founder Conflict". In Cohen, David; Feld, Brad (eds.). Do More Faster: Techstars Lessons to Accelerate Your Startup. Hoboken, New Jersey: John Wiley & Sons. p. 67. ISBN 9781119583288.
  9. ^ Kronenberger, Craig (2021-08-20). "The Top 10 Entrepreneurial Mistakes that Startup Studios Help Address". Startup Studio Insider. Retrieved 2022-02-27.
  10. ^ a b Constance E. Bagley, Managers and the Legal Environment: Strategies for the 21st Century (2012), p. 650.

Further reading Edit

  • The Founder's Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup
  • Founder's Dilemma: What is it that you truly desire? Power or Money?

organizational, founder, organizational, founder, person, undertaken, some, formational, work, needed, create, organization, whether, business, charitable, organization, governing, body, school, group, entertainers, other, type, organization, there, multiple, . An organizational founder is a person who has undertaken some or all of the formational work needed to create a new organization whether it is a business a charitable organization a governing body a school a group of entertainers or any other type of organization If there are multiple founders each can be referred to as a co founder If the organization is a business the founder is usually an entrepreneur If an organization is created to carry out charitable work the founder is generally considered a philanthropist Henry Dunant co founder of the Red Cross Contents 1 Issues arising from the role 1 1 Legal status 1 2 Founder emeritus 1 3 Founder s dilemma 1 4 Forgotten founder 2 See also 3 References 4 Further readingIssues arising from the role EditA number of specific issues have been identified in connection with the role of the founder The founder of an organization might be so closely identified with that organization or so heavily involved in its operations that the organization can struggle to exist without the founder s presence 1 One practical way to cope with overreliance on a founder is to distribute management duties so that others are clearly responsible for important operations If the founder is on the nonprofit s board part of the solution is to make sure that the board is diverse balanced and regularly infused with new blood 1 Legal status Edit The language of securities regulation in the United States considers co founders to be promoters under Regulation D The U S Securities and Exchange Commission s definition of Promoter includes i Any person who acting alone or in conjunction with one or more other persons directly or indirectly takes initiative in founding and organizing the business or enterprise of an issuer 2 however not every promoter is a co founder In fact there is no formal legal definition of what makes someone a co founder 3 4 The right to call oneself a co founder can be established through an agreement with one s fellow co founders or with permission of the board of directors investors or shareholders of a startup company When there is no definitive agreement like a shareholders agreement disputes about who the co founders are can arise Founder emeritus Edit Some organizations maintain a connection with their founder by establishing a position of founder emeritus either as an entirely symbolic post or as a position with some power such as a permanent position on the board of directors A drawback to such an arrangement is the possibility that the founder will clash with the person who has replaced them as leader of the organization and that such a conflict will affect the performance of the founder emeritus as a board member 5 Founder s dilemma Edit In some instances the desire of the founder to maintain control over the organization becomes a problem because when an entrepreneurial organization is successful i t outgrows the ability of the founder or even of a small team around the founder to control 6 The Harvard Business Review identified this problem as the founder s dilemma noting that in most successful companies the founder is pushed out of control by investors within the first few years after the formation of the company 7 In some cases a company may have multiple founders and a prominent source of conflict can be disagreements between these founders as the company evolves 8 There are factors beyond the personality and professional accolades of a startup founder that impact the ability of a company to succeed like trouble in fundings sudden market shutdown not having the right team or poor scaling plan 9 Forgotten founder Edit Another problem that can arise is that of the forgotten founder a person who participates early on in the formation of an enterprise but leaves or is ousted before it achieves success and then returns to claim a legal right to equity intellectual property or some other fruits of that success 10 To avoid this problem it is advised that the entity incorporate early and issue shares that are subject to vesting over time 10 See also EditStartup company Founders entrepreneurs Founder s syndromeReferences Edit a b Pakroo Peri 2015 Starting amp Building a Nonprofit A Practical Guide 6th ed Berkeley Calif Nolo p 87 ISBN 978 1413320886 Securities and Exchange Commission September 12 2008 Guide to Definitions of Terms Used in Form D SEC GOV retrieved July 1 2014 Lora Kolodny April 30 2013 The Other Credit Crisis Naming Co Founders Wall Street Journal Retrieved July 1 2014 Katie Fehrenbacher June 14 2009 Tesla Lawsuit The Incredible Importance of Being a Founder Giga Om Retrieved July 1 2014 Atkins Betsy 2019 Be Board Ready The Secrets to Landing a Board Seat and Being a Great Director NEWTYPE Publishing p 84 ISBN 978 1949709339 White Colin 2004 Strategic Management Basingstoke Hampshire Palgrave Macmillan p 445 ISBN 9781403904003 Noam T Wasserman The Founder s Dilemma Harvard Business Review February 2008 Shah Dharmesh 2019 2010 Avoid Co Founder Conflict In Cohen David Feld Brad eds Do More Faster Techstars Lessons to Accelerate Your Startup Hoboken New Jersey John Wiley amp Sons p 67 ISBN 9781119583288 Kronenberger Craig 2021 08 20 The Top 10 Entrepreneurial Mistakes that Startup Studios Help Address Startup Studio Insider Retrieved 2022 02 27 a b Constance E Bagley Managers and the Legal Environment Strategies for the 21st Century 2012 p 650 Further reading Edit nbsp Look up founder or foundress in Wiktionary the free dictionary The Founder s Dilemmas Anticipating and Avoiding the Pitfalls That Can Sink a Startup Founder s Dilemma What is it that you truly desire Power or Money Retrieved from https en wikipedia org w index php title Organizational founder amp oldid 1171219150, wikipedia, wiki, book, books, library,

article

, read, download, free, free download, mp3, video, mp4, 3gp, jpg, jpeg, gif, png, picture, music, song, movie, book, game, games.