Transforming Entrepreneurs

Dr. Kenneth R. Lenz, MBA CPA PhD

Transforming Entrepreneurs

Christian Entrepreneurs Who Transformed Our World

First published by Entrepreneur Leadership Institute 2021

Copyright © 2021 by Dr. Kenneth R. Lenz, MBA CPA PhD

All rights reserved. This book or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of the author, except for the use of brief quotations in a book review.

Published in Pleasant Garden, North Carolina by Entrepreneur Leadership Institute. Library of Congress Control Number 2021913100

Publisher Note and Legal Disclaimer: All biographical material in this book was obtained from published sources, and as such is not officially approved by the subjects themselves, whether living or deceased. While every attempt was made to ensure the information is accurate, the publisher and author are not responsible for any error or omissions, or for any results obtained from the use of this information.

Scripture quotations are from the ESV® Bible (The Holy Bible, English Standard Version®), copyright © 2001 by Crossway, a publishing ministry of Good News Publishers. Used by permission. All rights reserved.

Library of Congress Cataloging-in-Publication Data is available upon request.

For more information and to purchase books and courses, visit us at www.EntrepreneurLeadership.net

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Contents

Praise for Transforming Entrepreneurship

I. THIS CHANGES EVERYTHING

1. This Changes Everything: Transforming Entrepreneurship

This Changes Everything

Coca-Cola, Mary Kay, and the YMCA.

How to Use This Book

How is Christian Entrepreneurship Transforming?

Statistics And Impact

2. Part One: Saints, Accounting, and the Rule of 72

Introduction

Roman and Greek Societies

Luca Bartolomeo de Pacioli

St. Pachomius

Saint Teresa

3. Part Two: Wars, Shipmasters, and Pirates

Changing Tides

Profiteers, Shipmasters, and Pirates

The Shipping and Merchant Trading is Finally Set

Conclusion

4. Missing Pieces, Vital Ethics, and The Rule of Law

Missing Pieces

Vital Ethics

Rule of Law

5. The Devil vs. The Father of Economics

Champions

The Devil

The Father of Economics

The Invisible Hand, Corn Laws, and 2,000 pins

6. Creative Destruction, Philosophers, and the Constitution

Philosophers

Joseph Schumpeter: 1883-1950

Walter Lippman: 1889-1974

Friedrich Hayek: 1899-1992 & Ludwig Mises: 1881-1973

Milton Friedman: 1912-2006

Harbey Leibenstin: 1922-1994

George Gilder: 1939-current

The Constitution and American Entrepreneurship

II. THE ENTREPRENEURS

7. Diversifying Income Streams, Tithing, and Soap

William Colgate

Renaissance Entrepreneur

8. Accountability, Abolition, and Silk

The Tappan Brothers

Transforming Accountability

Slavery and the Abolition Movement

9. Advertising, Sharing the Bounty, and Reapers

Cyrus McCormick

Transforming Marketing

Sharing the Bounty

10. Education and Social Entrepreneurship Amidst War

Dwight Moody

A Transformed Life

Transforming Communities with Nonprofit Education

11. Affordability, Generosity, and Wood Barrels

John D. Rockefeller

Transforming Affordability

Save All You Can

Market Opportunities & Innovation

Transforming Philanthropy

12. Employee Care, Gospel through Education, and Horseradish

Henry Heinz

Transforming the Food Industry

Raising the Bar for Business Ethics

Transforming Employee Care

Transforming Advertising with Generosity

Spreading the Gospel Through Education

Transforming Employee Benefits

Transforming the Red Light District

Lasting Impact

13. Consumer Desires, Atlanta, and Coca-Cola: Asa Candler

Asa Candler

Seizing Opportunity

Transforming Sales Models

Transforming Atlanta

14. Overcoming Racial Prejudice and Adversity: Part I

Booker T. Washington

A Transformative Education

Transforming Education for His People

15. Overcoming Racial Prejudice and Adversity: Part I

Booker T. Washington

Intellectual Battles

Orator & Educator

A Lifetime of Achievements

16. Building Support for Growth and a Bachelor of Motorcycles

Robert LeTourneu

Bachelor of Motorcycles

Transforming Machinery

The Dean of Earthmoving

God’s Money

17. Creative Problem Solving and Mr. Tropicana

Anthony Rossi

A Trouble Maker, Earthquake, and War

A New Life in the New World

Transformation Begins

Transforming Orange Juice, Tankers, and Trains

Transformation Till the End

18. God’s Employee, Humility, and Plastic

Stanley Tam

Transforming Silver and Plastics

Giving All to God

19. Overcoming Bias to Empower Women

Mary Kay Ash

Transforming Female Entrepreneurship

Transforming Incentives

20. Value, Respect, and the Chicken Sandwich

Truett Cathy

Total Commitment

A Culture of Kindness

21. Drive-through, a Home for Orphans, and Wendy’s

Dave Thomas

Transforming KFC

Transforming Fast-Food

A Home for Children

22. Developing Leadership and Vessels of Transformation

Jerry Falwell Sr.

Satan’s Kingdom

Transforming Evangelism

Racial Tensions

Transforming Christian Education

Vessels of Transformation

23. Hospitality, Family, and Marvel Cave

Jack & Pete Herschend

Silver Dollar City

Bringing Families Together

Lead with Love

24. Stewardship, Wisdom, and Strategic Air Command

Larry Burkett

Strategic Air Command

Transforming Christian Finances

Partnering in Transformation

Nothing to Fear

25. Mark Up, Margin, and Might at Hobby Lobby

David Green

The Crucial Business Idea

Hobby Lobby

Four Fundamentals for Retail Success

Guarding the Bottom Line

Priorities

Ministry in Business and Beyond

26. Synthesizing Ministry and Business

Gil Stricklin

Transforming the Marketplace

27. To the Ends of the Earth

Cher Wang: 1958-current

Dr. Imre Somody: 1954-current

Strive Masiyiwa: 1961-current

The Most Important Recognition

28. You!

The Next Entrepreneur

Getting Started

About the Author

Praise for Transforming Entrepreneurship

"Finally an insightful real world example of how Christian entrepreneurs are doing God’s work! Informative, captivating, and truly motivational."

—Mark Salman, CEO

Skidril Industries LLC

About time someone started chronicling the Acts of the Entrepreneurs!" Ken thoughtfully and briskly takes you through a journey that falls through the cracks of business and church history. What were the unseen motivations and drives that led these men and women to abundant service and success? It certainly was not a separation of business from faith. Calculated risk takers should be seen as vital members of the body of Christ, not just the business world. If ever there were men and women living out being Jesus’ hands and feet, where would we be without those whose self-sacrifice and creativity brings society much opportunity? And the opportunities Christian Entrepreneurs create transcend the millions of temporal and financial benefits; for they bring mercy, charity, and mass planting of Gospel seeds for the Church to help water. If you are thirsty to create a product or service profitable and become a stronger hand or foot for Jesus, then don’t put this book down."

—Rev. Kermit Rickenberg

Executive Director of Support for Missions, Inc

A non-profit dedicated to aiding missions with entrepreneurship.

I

This Changes Everything

The rise of entrepreneurship

1

This Changes Everything: Transforming Entrepreneurship

Do not be conformed to this world, but be transformed by the renewal of your mind, that by testing you may discern what is the will of God, what is good and acceptable and perfect.

Romans 12:2

This Changes Everything

In a world full of poverty, racism, gender inequality, and tragedy, we are all in desperate need of the hope and goodness that God alone can provide. When Jesus sacrificed Himself on the cross, he changed everything. He offers total transformation to each and every one of us. And when we let Him transform our hearts and lives, he equips us—by the truth of His Word and the power of His Holy Spirit in us—to transform the world around us.

For Christians, entrepreneurship isn’t just about making money or experiencing success. For those who have been transformed by God, entrepreneurship is an opportunity to transform the lives of employees, customers, communities, and societies across the globe. Transformation is seamlessly woven into the Christian’s entire way of life.

This book focuses on this special niche of entrepreneurs who both improve society and share the Gospel message in word and deed alongside mere job creation—pointing to their assurance of eternal reward, as well as temporal enhancements to quality of life.

Coca-Cola, Mary Kay, and the YMCA.

What do these businesses have in common? Two core things: These businesses transformed the world as we know it, and they were built by Christian entrepreneurs.

They’re not the only ones.

Heinz, The Associated Press, and monasteries and nunneries around the world—Yes, they’re businesses too!—were formed by Christian entrepreneurs.

Your business could be added to the list of companies like these. Your name could be among the Christian entrepreneurs who transform society.

Many things we take for granted today are the hard work of enterprising individuals who dreamed big, applied creative yet highly practical ideas, risked their own finances, and refused to yield any ground to adversity. The modern world we live in is, in no small part, the legacy of people like you who took great risks, persevered, and did the right thing. Follow in their footsteps, and you are on the path to leaving a legacy of your own.

How to Use This Book

This is a book of mentors. Study these pages. Imitate the qualities and habits that made them successful. Avoid their mistakes. Learn from how they responded to their challenges and rebounded from their errors. But also recognize that they were human beings, using God-given talents to the best of their ability. Their strengths, weaknesses, failures, and successes all form a great testament to how a Christian can live out a Christian life as he conducts business.

Some of the entrepreneurs in these pages were lovable individuals, while others were criticized for their harsh personalities. Regardless, they all have two things in common: 1) They all possess entrepreneurial leadership qualities. 2) They are all Christians who take God’s Word seriously. Both characteristics are essential to developing major, creative, Godly improvements in society.

There is no artificial barrier between Sunday and Monday for these Christian entrepreneurs: No separation between church and business. The Christian’s religious concerns are not separated from their business interests. Rather, they are intricately intertwined. And the one informs the other, as Paul the Apostle notes in Romans 12:2:

Do not be conformed to this world, but be transformed by the renewal of your mind, that by testing you may discern what is the will of God, what is good and acceptable and perfect.

The entrepreneurs in this book did just that. They let God transform their minds in a way that, in turn, transformed their lives and businesses: Monday through Sunday, 24/7.

This is what can happen when people whose minds have been transformed by the Gospel become entrepreneurs: Business becomes more than just something to make money. For the Christian who believes in and lives out the Biblical principle of Commit your work to the Lord, and your plans will be established.¹ business becomes something that transforms lives, communities, societies, and the world.

And we too have the opportunity to partner with God in this kind of transformation when we first let Him transform our lives, hearts, and minds.

How is Christian Entrepreneurship Transforming?

For those of us who come from the perspective of living in the United States of America, it has been observed that there is a synthesis between Christianity and American business, and particularly American entrepreneurial success. As a visitor to America, Alexis De Tocqueville, observed in the 1800s that the spirit of liberty and the spirit of religion combine in a unique way in the United States. The same holds true today.

Every small business provides jobs. In some ways, American’s ongoing entrepreneurial culture is part of the process of creating little platoons of society in a business context that Alexis De Tocqueville wrote about long ago. Many add various types of innovation. They all contribute to both the tax base and spreading prosperity in their communities through the transactions they engage in. The Christian understanding of helping one’s neighbor through employment and bettering the world he lives in for his fellow man is perhaps most alive and well within an entrepreneurial culture informed by Christian ethical principles.

According to the Small Business Administration (SBA), in 2016, the United States had nearly thirty million small businesses (defined as up to 500 employees). Over 50 percent of the entire working population—more than 120 million people—work for small business owners.

For nearly all of the past 400 years of American history, throughout boom times and bust, an enormous number of small businesses commence operations each month—currently more than 543 thousand monthly or over 2.9 million yearly. While the failure rate is high, at least half survive five years, a third for ten years, and a quarter thrive for fifteen years or more.

Some key statistics stand out:

These business owners create 70 percent of all new American jobs—even when large corporations reduce their workforce or outsource to overseas companies.

They generate more than half of the non-farm gross domestic product.²

SBA’s Office of Advocacy research also found that smaller companies are much more likely to develop emerging technologies than larger companies.

They also produced sixteen times more patents per employee than large patent-generating corporations.

Smaller companies account for approximately 8 percent of patents granted.

Twenty-four percent of those patents come in the top one hundred emerging clusters of new technology.

All of this is just a glimpse into the profound influence of company founders. It indicates the enormous impact entrepreneurial companies have on new technology and emerging industries far beyond their mere initial size.

Statistics And Impact

What do all these statistics indicate about the impact of entrepreneurs? Entrepreneurial firms’ impact is greater than just job creation. Entrepreneurial firms are crucial to the health and growth of the American economy. They are vital to the continued affluence of Americans and the foreigners these entrepreneurial companies conduct business with.

Studies conducted by the Philanthropy Roundtable clearly indicate Christians provide the majority of both cash donations and volunteer time to both religious and secular charities. A recent study found that charitable contributions of time and money correlated closely to the frequency of church service attendance.

Ernst & Young, a top global accounting firm, conducted a survey in 2010 for Fidelity Charitable Gift Fund, finding entrepreneurs allocate twice the percentage of profits to charity than America’s largest companies, with 26 percent incorporating corporate philanthropy into their original business plans.

Nearly 70 percent supported charities before achieving wealth.

Seventy-three percent of entrepreneurial companies surveyed actively encourage employees to volunteer their time and expertise, while 53 percent subsidize or supplement financial charitable donations.

Sixty-one percent currently sit on charitable boards, and 50 percent either are serving or have served in the past as chairperson or top officer of a charity (including the many charities started by these entrepreneurs).

A vast majority of entrepreneurs rate the business benefits of charitable activities as very low or no priority for them: In other words, they are interested in charitable work for the sake of helping others, not for any publicity or marketing benefits that might be gained.

Most preferred to give in a low key manner, with 53 percent citing three motivations: gratitude for the help received, empathy for those less fortunate, and achieving the financial freedom to afford generous gifts of time and money.

This charitable impact does not include the additional social entrepreneurship efforts that Christian entrepreneurs engage in to improve social, environmental, and spiritual conditions. Entrepreneurs tend to concentrate charitable efforts in the local communities where they live and conduct business, although some venture globally.

Quiet social entrepreneurial efforts might range from hiring unskilled welfare recipients and patiently working with them to develop healthy job and household management skills (as a group of Raleigh, North Carolina business owners has been doing for many years) to anonymously help with medical and other significant bills for employee families and community neighbors, and to provide Biblical information to customers, vendors, employees, and others.

The impact of Christian entrepreneurs has a ripple effect throughout their local communities and often far beyond. The impact of some of the Christian entrepreneurs you will meet in these pages extends across the globe and across centuries.

Their efforts changed the fabric of society.

How? Because not only did these entrepreneurs and their businesses have a direct impact on the world, they had an indirect impact. So many indirect impacts are hard to measure—like the way a business through its ethics can transform the hearts and minds of men and women and the life-changing choices they make. Others are easier to see.

By producing goods and services that are taxed, they build the government tax base. By hiring and retaining more employees than are essential, they create more jobs. By engaging in charitable efforts, they reduce the need for government expenditures and meet needs in their communities. By connecting with vendors, they create economic activity, which boosts yet more job creation, taxable activity, and possibly more generous charitable donations from the owners of their vendor companies. Through indirect impacts like these, they generate a further rise in the prosperity of their communities.

We can do the same.

Before we meet the entrepreneurs that transformed the world as we know it, we need to understand the world as it was before. We need to understand the men and women before them that set all of this in motion. I’d like you to meet the pre-entrepreneurs:

I’d like to introduce you to the saints and pirates.

¹ The Holy Bible, English Standard Version, Proverbs 16:3

² Despite the 36 percent higher governmental regulatory burden on smaller firms versus large companies.

2

Part One: Saints, Accounting, and the Rule of 72

"I alone cannot change the world,

but I can cast a stone across the water

to create many ripples."

Mother Theresa

Introduction

What do you think of when you think of an entrepreneur? A small business? Historically, Babylonia, Assyria, China, Egypt, India, Persia, and Greece all had artisans and traders who built very small businesses and occasionally achieved great wealth but not high social status. That was because ancient societies made distinctions between farming—which was considered a highly respected occupation in nearly all older societies—versus the trader or merchant group.

Roman and Greek Societies

Rome may have been the first society to organize formal commercial districts. These districts encouraged greater small business activity, the societal structure of laws, road networks, merchant fleets, and other infrastructure. All of this supported and formally encouraged greater commercial activity.

The Phoenicians, however, were the exception in early world history. Their vast Mediterranean empire required writing, accounting, and management skills, which sometimes brought status as high as nobility.

In keeping with the Greek and Roman philosophers’ teachings, smaller commerce was considered a less desirable and sometimes disdainful occupation. Back then agriculture was considered the key to stable wealth and large amounts of leisure time that marked a more honorable and successful lifestyle. On the other hand, there were tradesmen, who were considered better than slaves and freedmen (liberti) but were far below the patrician class in both political and social status. However, a few tradesmen