Naval views entrepreneurship as the ultimate expression of high agency and courage. The entrepreneur friend he admires most demonstrates this: “He’s the most courageous. So he just does not care what’s in the way”.
True entrepreneurs develop tolerance for systematic rejection. “He’ll call 400 people and get 399 nos. And he’s fine with one ‘Yes’“. This mathematical approach to failure creates asymmetric outcomes: most people quit before the breakthrough.
Entrepreneurship requires specific knowledge that emerges through action. “You find your specific knowledge through action—by doing”. This knowledge becomes irreplaceable when combined with authenticity and accountability.
The principal-agent problem drives entrepreneurial advantage. Principals capture upside while agents trade time for money. Entrepreneurs choose equity over salary, ownership over security.
Successful entrepreneurs compound their efforts through leverage, turning courage into wealth over time.