The Hidden Gems of Business History: Uncovering Lessons from Unpopular Entrepreneurs
The stories of unpopular businesses and entrepreneurs may have been overlooked, but they hold a wealth of knowledge for those willing to dig deeper.
Let's talk about those unsung heroes—the businesses and entrepreneurs who may not have hogged the limelight but have valuable lessons to teach us. Their stories, though hidden from the headlines, hold a wealth of wisdom for today's business leaders.
Do you ever wonder how businesses became the powerhouses they are today? Or what made some entrepreneurs succeed while others failed? Business history provides answers to these questions and much more. The stories of businesses and entrepreneurs from the past offer valuable insights that can be applied to modern-day business contexts.
Studying business history can help us understand how businesses have evolved over time and how they've impacted the world around us. For example, did you know that the Hudson's Bay Company, which was founded in 1670 as a fur-trading business, played a crucial role in shaping Canada's early history? Or that Madam C.J. Walker, who was born into poverty in the late 1800s, became the first self-made female millionaire in the United States through her hair-care business?
By exploring the stories of businesses and entrepreneurs from the past, we can learn about the strategies, innovations, and ethical practices that led to their success or failure. We can also draw insights that are relevant for modern-day business leaders, who face an ever-changing and complex business landscape.
In today's fast-paced and globalized business environment, it's more important than ever to understand the lessons of history. Learning from the successes and failures of those who came before us, we can make better decisions and build more sustainable, innovative, and ethical businesses for the future.
“Everything changes, but business will always be driven by people, and people haven’t changed much at all. On the most fundamental level, people are driven by emotions. Sadly, the strongest emotions in a business context are greed and fear - which is why we will continue to experience asset bubbles that will burst.”
History is full of stories of successful businesses and entrepreneurs, but many of these stories are well-known and have been studied extensively. However, there are many lesser-known businesses and entrepreneurs from history that have valuable lessons to offer modern-day business leaders. In this edition of our newsletter, we will explore some of these stories and draw insights that are relevant to contemporary business contexts.
The Hudson's Bay Company
The Hudson's Bay Company is a Canadian fur trading company that was established in 1670. The company played a major role in the development of Canada and the fur trade industry. Hudson's Bay Company's early success was due to its strong relationships with indigenous peoples, which enabled it to acquire furs and expand its trading network. However, as the fur trade declined, the company had to adapt and diversify its business. Today, the Hudson's Bay Company is a retail conglomerate with interests in real estate, logistics, and digital commerce.
In 2021, the company separated its online store from its physical retailing business and rebranded it as ‘The Bay’. In Canada, The Bay accounted for a 3.7 percent share in the apparel market
Lesson: The story of the Hudson's Bay Company highlights the importance of building strong relationships with local communities and adapting to changing market conditions. Modern-day business leaders can learn from the company's ability to diversify its business and expand into new areas when the old ways of doing business are no longer viable.
Madam C.J. Walker
Sarah Breedlove, also known as Madam C.J. Walker, was an African American entrepreneur who developed a line of hair care products specifically for Black women in the early 1900s. She started her business with just $1.50 and went on to become the first female self-made millionaire in the United States. Madam C.J. Walker's story illustrates the power of determination, perseverance, and innovation in the face of adversity. She not only created a successful business but also became a philanthropist and advocate for women's rights and social justice.
After her death in 1919, her daughter A’Lelia Walker took over as president of the company 2. The company continued for decades until it eventually closed in 1981
However, Madam C.J. Walker’s original brand still lives on. In 2013, Sundial Brands purchased Madam C.J. Walker Enterprises and relaunched the brand as Madam C.J. Walker Beauty Culture, selling hair care products exclusively at Sephora.
Lesson from Madam C.J: Walker's story highlights the importance of determination, perseverance, and innovation in the face of adversity. Modern-day business leaders can learn from her commitment to social justice and giving back to the community as part of a successful business strategy.
The Singer Sewing Machine Company
The Singer Sewing Machine Company was founded in 1851 by Isaac Singer, who improved the design of the sewing machine and made it more affordable for the average person. Singer's company became the world's largest manufacturer of sewing machines and helped to revolutionize the textile industry. Singer's story highlights the importance of innovation and making products more accessible to a wider audience.
In 2004, the sewing business and the Singer trademarks were sold to a private U.S. investment firm. In 2006, it became part of SVP Worldwide, which combined Singer with Husqvarna Viking and PFAFF, two other major sewing machine producers
What we can learn? The story of the Singer Sewing Machine Company underscores the importance of innovation and making products more accessible to a wider audience. Modern-day business leaders can learn from Singer's ability to improve upon an existing product and make it more affordable and accessible for a broader customer base.
The Medici Bank
The Medici Bank was a financial institution founded by the Medici family in Florence, Italy in the 14th century. The bank played a significant role in the development of the Italian Renaissance and was instrumental in financing many of the era's most notable works of art and architecture. The bank's success was due to its innovative financial practices, such as the use of double-entry bookkeeping and the creation of letters of credit. The Medici Bank was also known for its strong relationships with its clients and its commitment to ethical business practices.
The Medici Bank was founded in 1397 and was liquidated in 1499 . The bank is no longer in operation today.
What’s the lesson: The story of the Medici Bank highlights the importance of innovation and strong relationships with clients. Modern-day business leaders can learn from the bank's commitment to ethical business practices and its ability to develop new financial practices that were ahead of their time.
The stories of these unpopular businesses and entrepreneurs from history offer valuable and relevant insights.
How historical lessons can be applied to modern-day business contexts?
“Even when a major technological leap is made, what comes after – the ‘pause’ if you will – is what matters most. For example, you might have a rapid evolution of robotic technology, but what matters most is its application over the next 30 years or so.”
1. Building Strong Relationships with Local Communities
The story of the Hudson's Bay Company highlights the importance of building strong relationships with local communities. In today's business landscape, companies that prioritize community relationships tend to be more successful in achieving their goals. For example, Patagonia, the outdoor clothing and gear company, has built its brand around sustainability and environmental activism. The company has cultivated relationships with environmental organizations and advocates for public policy that supports conservation efforts. As a result, Patagonia has developed a loyal customer base and has been able to expand its business while remaining committed to its values.
2. Adapting to Changing Market Conditions
The Hudson's Bay Company's ability to adapt to changing market conditions is also relevant in today's business environment. Companies that can quickly pivot to new strategies when faced with unexpected challenges tend to be more successful. A prime example of this is Netflix, the streaming video service. Initially, Netflix's business model was based on DVD rentals by mail, but when the company recognized the shift towards online streaming, it adapted quickly and became a leader in the industry. By offering a wide variety of content and investing in original programming, Netflix has continued to grow and maintain its market share.
3. Determination, Perseverance, and Innovation in the Face of Adversity
Madam C.J. Walker's story underscores the importance of determination, perseverance, and innovation in the face of adversity. In today's business world, companies that are willing to take risks and innovate tend to be more successful. A prime example of this is Tesla, the electric vehicle and clean energy company. Tesla's founder, Elon Musk, has been willing to take risks and invest in innovative technology. Despite facing numerous challenges, such as production delays and regulatory hurdles, Tesla has continued to innovate and has disrupted the automotive industry with its electric cars and battery technology.
4. Innovation and Making Products More Accessible
The Singer Sewing Machine Company's success was due to Isaac Singer's ability to improve upon an existing product and make it more affordable and accessible for a broader customer base. In today's business landscape, companies that prioritize innovation and accessibility tend to be more successful. For example, Apple's iPhone revolutionized the smartphone industry by making technology more accessible and user-friendly. By constantly improving upon its products and making them more accessible to a broader audience, Apple has continued to dominate the market.
5. Ethical Business Practices and Strong Relationships with Clients
The Medici Bank's success was due to its innovative financial practices, strong relationships with its clients, and commitment to ethical business practices. In today's business world, companies that prioritize ethical practices and strong relationships with clients tend to be more successful. For example, The Body Shop, the beauty and skincare company, has built its brand around ethical and sustainable practices. The company uses natural ingredients and works with small-scale farmers and suppliers to ensure that its products are sustainably sourced. By prioritizing ethical business practices and developing strong relationships with its customers and suppliers, The Body Shop has developed a loyal customer base and has been able to grow its business sustainably.
Do you know what's fascinating? The stories of these lesser-known businesses and entrepreneurs from history. They might not be the big names we often hear about, but their journeys hold valuable insights that we can apply to today's business world.
Think about it—by digging into the successes and failures of these past businesses and entrepreneurs, we gain a treasure trove of wisdom. We get a better grasp of how to tackle the challenges and seize the opportunities that come our way in the present.
It's like having a roadmap. We can learn from their triumphs and avoid their pitfalls. By taking inspiration from historical examples, we can up our game and boost our chances of success. But it's not just about winning—it's about building businesses that stand the test of time and make a positive impact on our customers and society as a whole.
We're talking about sustainable, ethical, and innovative businesses here. Ones that not only bring in the bucks but also leave a lasting legacy.
Business history is still relevant to today's businesses despite the advancement of social, environmental, and governmental factors, and consumer perception growth.
Here are a few reasons why:
1. Historical lessons can still be applied: Although the business environment has changed significantly over time, many of the fundamental principles of business, such as building relationships with customers, adapting to changing market conditions, and prioritizing ethical practices, remain the same. By studying historical examples, modern-day business leaders can gain valuable insights and apply them to their own businesses.
2. Understanding the evolution of businesses: Business history helps us understand how businesses have evolved over time and how they've impacted the world around us. By understanding the context in which businesses operated in the past, we can gain a deeper understanding of the challenges and opportunities that businesses face today.
3. Anticipating future challenges: Business history can help us anticipate future challenges and prepare for them. By studying historical examples, we can identify patterns and trends and apply them to our businesses to make more informed decisions about the future.
4. Enhancing corporate social responsibility: Business history can also help businesses enhance their corporate social responsibility efforts. By studying the ethical practices and social impact of businesses in the past, modern-day businesses can learn from their successes and failures and develop strategies for promoting social responsibility.
5. Business history to inspire innovation. By studying the innovative strategies and practices of businesses and entrepreneurs from the past, modern-day business leaders can gain new ideas and inspiration for their own businesses. For example, the concept of franchising was pioneered by the Singer Sewing Machine Company in the late 1800s, which allowed the company to expand rapidly and become a dominant player in the sewing machine industry. Today, franchising is a widely-used business model across many industries. By studying the success of the Singer Sewing Machine and other historical examples, modern-day business leaders can find inspiration for their own innovative strategies.
That listed, business history is still relevant to today's businesses despite advancements in social, environmental, and governmental factors, and consumer perception growth. Studying the stories of businesses and entrepreneurs from the past, modern-day business leaders can gain valuable insights and apply them to their businesses, understand the evolution of businesses, anticipate future challenges, and enhance their corporate social responsibility efforts.
Many current businesses and entrepreneurs have applied lessons from business history to achieve success. Here are a few examples:
1. Patagonia: Patagonia, an outdoor clothing and gear company, is known for its commitment to environmental sustainability. This commitment was inspired by the company's founder, Yvon Chouinard, who studied the environmental impact of businesses in the past and wanted to create a company that prioritized ethical and sustainable practices.
2. Airbnb: Airbnb, a popular online platform for booking accommodations, was inspired by the concept of bed and breakfasts, which have been around for centuries. By studying the history of hospitality and travel, Airbnb's founders were able to identify an opportunity to create a new type of travel experience that was more personalized and authentic.
3. Tesla: Tesla, an electric vehicle and clean energy company, was inspired by the history of the automobile industry and the challenges that early automakers faced in transitioning from horse-drawn carriages to automobiles. By studying this history, Tesla's founder, Elon Musk, was able to identify an opportunity to disrupt the traditional automobile industry with electric vehicles.
4. Warby Parker: Warby Parker, an eyewear company, was inspired by the business model of American eyewear company, Bausch & Lomb, which was founded in 1853. Bausch & Lomb revolutionized the eyewear industry by creating high-quality eyeglasses at affordable prices. Similarly, Warby Parker offers affordable, stylish eyeglasses and sunglasses by cutting out the middleman and selling directly to consumers.
5. Square: Square, a mobile payment company, was inspired by the history of credit card processing and the challenges that small businesses faced in accepting credit card payments. By studying this history, Square's founder, Jack Dorsey, was able to identify an opportunity to create a mobile payment solution that was easy and affordable for small businesses.
These examples demonstrate how current businesses can draw inspiration from the successes and failures of businesses in the past and use this knowledge to innovate and create new solutions for modern-day challenges.
In conclusion, studying the stories of businesses and entrepreneurs from history offers valuable insights that can be applied to modern-day business contexts. The examples of the Hudson's Bay Company, Madam C.J. Walker, the Singer Sewing Machine Company, and the Medici Bank demonstrate the importance of building strong relationships with local communities, adapting to changing market conditions, perseverance and innovation in the face of adversity, making products more accessible, and prioritizing ethical business practices.
Drawing insights from these historical lessons can help modern-day business leaders navigate the challenges and opportunities of the present and build sustainable, innovative, and ethical businesses. Business history also provides a rich source of inspiration and ideas for new ventures.
We highly recommend further reading on business history, such as books like "The Wealth of Nations" by Adam Smith,
"The History of the Standard Oil Company" by Ida Tarbell, and
"The First Tycoon: The Epic Life of Cornelius Vanderbilt" by T.J. Stiles. Additionally, online resources such as Harvard Business Review, Business History Review, and The History of Business are excellent sources for those interested in learning more about business history.
Finally, the study of business history is essential for modern-day business leaders to gain a deeper understanding of how to navigate the complex and ever-changing business landscape. By drawing insights from the past, we can build a brighter and more successful future for businesses and society as a whole.
… Do well out there!