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This American Life

535: Origin Story

09 Mar 2025

Transcription

Why are garages central to corporate creation myths?

1.721 - 21.906 Ira Glass

Pino Audia teaches in the business school at Dartmouth, and he researches the question, how do entrepreneurs get created? And at some point, he noticed that his students and many of his colleagues actually have an opinion about this. They believe entrepreneurs make themselves. You know, you head off on your own, you write a business plan, you start in your own garage.

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22.046 - 34.312 Ira Glass

And the garage, by the way, is not a metaphorical garage. It is a garage, a literal garage. Hewlett Packard started in a garage. Apple Computer had a garage. Disney, the Mattel Toy Company, the Wham-O Toy Company.

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34.652 - 56.802

It is about big dreams and humble beginnings and success in the face of adversity and doubters. And also the idea that regardless of who you are, regardless of how humble your beginnings are, you can turn something into an immense success story if you work hard. And that was the point in time in which I got interested in the story of the garage as a myth.

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58.903 - 67.095

A garage is a place of possibilities. It's a place where things can get invented. and a place where entrepreneurs begin.

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67.115 - 79.203 Ira Glass

This is a promotional video that Hewlett Packard put together after it spent millions to buy and restore the original garage where its two founders started a company that is still one of the largest technology firms in the world.

79.303 - 100.896

In 1938, in a garage in Palo Alto, California, Bill Hewlett and Dave Packard set to work to start a new company. They had a few hand-operated punches, a used Sears Roebuck grill press that had just made the trip west in the back of one of their cars, and they had a rented flat with a garage.

102.036 - 116.61 Ira Glass

Professor Adia doesn't argue with any of this, but he says that when you ask actual entrepreneurs, and this is true in survey after survey, you find that most of them began not by going off into their garage, but by working for somebody else. making contacts, learning the business.

117.01 - 132.107

So this is a very robust finding which tells us that actually if you want to become an entrepreneur, the obvious thing to do is to first go get a job in an industry you're interested in and learn and then eventually later try to create a company.

132.546 - 149.179 Ira Glass

Even Bill Hewitt and Dave Packard weren't exactly outsiders. They studied electrical engineering at MIT and Stanford. Packard had worked at General Electric. A former professor of theirs from Stanford gave them leads and hooked them up, for example, with a firm called Lytton Engineering, who let them use equipment that they didn't know themselves yet.

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