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Management article
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Reference no. 92609
Authors: Ken Veit
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1992

Abstract

After 30 years on the corporate fast track, Ken Veit lost his high- powered job at one of the world''s largest insurance companies and was forced to take an entrepreneurial leap of faith. In 1989, Veit signed a franchise agreement to own and operate a Cartoon Corner store in a new mall in Scottsdale, Arizona. But despite Veit''s careful forecasting, he suffered a series of unexpected catastrophes. The mall failed to keep its promises. The franchiser lost its venture capital. The Gulf War dried up retail traffic. When the mall and his store finally opened in May 1991, they did so in the midst of a recession. Although the media is full of the inspirational stories of other former executives, Veit has learned that the life of an entrepreneur is not all it''s cracked up to be.

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Abstract

After 30 years on the corporate fast track, Ken Veit lost his high- powered job at one of the world''s largest insurance companies and was forced to take an entrepreneurial leap of faith. In 1989, Veit signed a franchise agreement to own and operate a Cartoon Corner store in a new mall in Scottsdale, Arizona. But despite Veit''s careful forecasting, he suffered a series of unexpected catastrophes. The mall failed to keep its promises. The franchiser lost its venture capital. The Gulf War dried up retail traffic. When the mall and his store finally opened in May 1991, they did so in the midst of a recession. Although the media is full of the inspirational stories of other former executives, Veit has learned that the life of an entrepreneur is not all it''s cracked up to be.

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