How Andrew Carnegie Is An Entrepreneur
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The iconic American entrepreneur Andrew Carnegie built a business empire that generated nearly $200 billion of revenues and $10 billion of net income in a career of almost four decades.
After the money was made, he had numerous philanthropic interests. His dedication to the charitable side of his business activities was second only to his financial ones.
Carnegie is well-known as an industrialist and philanthropist. His company, Carnegie Steel, revolutionised steel manufacturing.
He went on to create the largest corporate empire of his time, with interests in coal and cement. With the constant flow of money, his empire grew and grew, reaching 1,923 companies and 38,000 employees.
It became the world’s first company to be valued at $1 billion.
Here are three important lessons we can learn from Carnegie’s entrepreneurial efforts
1. Keeping a risk-free strategy is a business maverick's best friend
Carnegie, who was an engineer, took a big risk when he opened his first steel mill. He raised $55,000 to fund a mill in the Pittsburgh area.
The product was used by the British military for their artillery and railway locomotives.
These early years were extremely tough and Carnegie was not making much money. But, over time, he learned how to expand the business.
And, as his company started to become a success, he allowed a risk-free strategy of acquiring new companies.
2. While the business maverick wants to make money, the business professional focuses on value
Carnegie enjoyed the physical challenges that came with running his business.
When he opened his first mill, it took him three years to turn a profit. He went on to develop the largest steel company in the world.
He used financial results to make important decisions.
Today, entrepreneurs use profit and loss statements to keep control over their finances, but Carnegie also used financial results to shape his business strategy.
He understood that in the end, a business is only valuable if it creates value for its customers. And, as the company grew, Carnegie was able to offer a wider range of products, catering to a wider range of markets.
3. When the business maverick loses control, it doesn’t make business sense
Carnegie started the Carnegie Steel Company with $55,000 of personal capital. He had little knowledge of the business world, and he was unable to answer a lot of the company’s first problems.
After opening the business, Carnegie was caught up in a dangerous relationship with his company’s most important customer, the British government.
The British government often set the prices of steel and coal in the 19th century. They wanted to keep prices high, in order to benefit themselves. This relationship had the potential to ruin Carnegie's company.
In this difficult period, Carnegie understood that controlling his company wasn’t going to help. He wrote, "No amount of however elaborate control, however well-qualified, can bring success, unless the owners also possess common sense and sober judgement."
He knew that he needed a team of employees who understood his strategy and could help him overcome the obstacles.
This is what resulted in the company becoming a dominant player in the industry, and Carnegie was able to pull off the "impossible". That is, giving the British government their money back.
Andrew Carnegie did his work with the US Government, which was drafting new mining laws. His government work and ideas led to the creation of the National Recovery Act, which prevented the unemployment of workers.
Carnegie was very successful in mining, and he became one of the wealthiest people in the US. He was a very successful and generous businessman.
His business ventures earned him millions of dollars and many people were employed by them.
Carnegie's work in steel
Andrew Carnegie was involved in the steel manufacturing industry. He was very successful in this industry.
Carnegie was very rich and successful. He made millions of dollars through his business ventures.
He paid over 50 million in cash and his net worth was more than 200 million dollars.
Carnegie's work with the humanitarian movement
Andrew Carnegie was involved in a humanitarian and charitable movement. He supported numerous charities.
His support of social services, the library and hospital system in Europe was very successful. He was successful with his philanthropy work.
In 1927, Carnegie gave 6 million dollars to the Memorial Museum of Peking. He financed the funding of its construction.
In 1895, Carnegie helped create the Carnegie Hero Fund in the United Kingdom. He sponsored the Carnegie Library in Western Africa, and he donated money to the foundation of the library's building.
Andrew Carnegie's work in education
In 1913, he donated five million dollars to the University of Pittsburgh to fund a school for teachers. He did the same thing with Columbia University in 1915.
He was very successful in the field of education. His support of different universities led to the creation of the Carnegie Institute of Technology (now Carnegie Mellon University) and the Carnegie School of Mines (now Colorado School of Mines).
He paid for the university's headquarters building.
In 1897, he donated 15 million dollars to the City of New York. He paid for the church of St. James.
Andrew Carnegie's work with China
Andrew Carnegie worked in China, and his work contributed to the success of the country. He donated a large amount of money and made some very successful business ventures.
His efforts to help China were very successful, and the country developed into an industrial and technological powerhouse.
Andrew Carnegie's work with women's rights
He supported many women's rights organizations and helped to promote women's right's in the United States and abroad.
He encouraged women to become entrepreneurs and also gave more than $1 million to such organizations.