Yale Case. By: Jeff Stevens / A. J. Wasserstein
This article is a reflective and practical guide for aspiring SF entrepreneurs, urging them to deeply consider their personal motivations, their “why”, before embarking on the demanding path of EtA. Launching a SF is one of the most significant career decisions a young MBA graduate can make, often rivaling life events such as marriage or parenthood in impact and intensity. Given the long hours, emotional intensity, and high risk involved, EtA is not a journey to be taken lightly or impulsively.
The authors begin by contrasting ETA’s growing popularity with its underlying reality: while SFs have become fashionable in elite MBA circles, the work itself (acquiring, running, and growing a small business) is grueling, uncertain, and often far less glamorous than it appears. The proliferation of media attention, podcasts, and campus momentum has sometimes obscured this reality. Therefore, the article is designed to act as a cautionary but constructive framework, helping prospective searchers assess their real motivations and readiness.
The 4 archetypal “Whys”:
Stevens and Wasserstein identify four dominant motivations behind most searchers’ decisions. These are not mutually exclusive, and many entrepreneurs may be driven by a mix of them, but understanding the primary motivation is critical to shaping the strategy, structure, and expectations for the journey ahead.
1/ Status
Some searchers are primarily driven by the prestige that EtA now commands in elite business schools. Unlike in the past, when explaining a SF elicited blank stares, today it is seen as a credible, even enviable, career path. Searchers who raise large amounts of money from A-list investors while still in school often gain status among their peers. For some, EtA is a platform to prove doubters wrong or to ascend the post-MBA hierarchy, eventually transitioning into investing or raising larger funds. However, when status is the central motivator, entrepreneurs may burn out quickly or exit early, especially when the day-to-day reality of running a small, messy business does not match the glamorous narrative.
2/ Lifestyle
For others, EtA is appealing due to the perceived flexibility and autonomy it offers. Being your own boss, setting your own hours, and building a business at your own pace can be deeply attractive, especially compared to the high-pressure environments of consulting or investment banking. Some searchers envision a balanced life where they own a small but profitable company, spend more time with family, and participate in a supportive community of like-minded operators. However, the authors warn that this lifestyle ideal is often a myth, particularly in the early years. Operating a small business requires relentless involvement, and with external capital comes significant pressure and accountability.
3/ Fulfillment
This is considered by the authors as the most authentic and durable why. These searchers are driven by the desire to lead, create value, serve customers, develop people, and build something meaningful over the long term. The first generation of searchers, true operators like Jim Southern, H. Irving Grousbeck, and others, were not pursuing status or riches, but the satisfaction of running a business. Fulfillment-driven searchers tend to stay in their roles longer, avoid quick exits, and often compound significant value simply by staying the course. For these entrepreneurs, the CEO role is not a stepping stone, it is the destination.
4/ Wealth
Many searchers are at least partially motivated by the prospect of financial gain. EtA offers the tantalizing opportunity to build wealth more quickly than traditional post-MBA careers, especially for those who secure favorable equity structures. The allure of a life-changing exit drives some searchers to aggressively pursue deals, apply financial engineering, and maximize short-term value. However, the authors caution that the pursuit of wealth can lead to premature exits or misalignment with the true operational demands of the CEO role. In their view, while wealth can be a powerful motivator, it is often less sustainable unless paired with a deeper sense of purpose.
Strategy & structure: aligning the “why”
The authors emphasize that understanding one’s why is not just about personal introspection, it directly informs the tactical decisions around how to structure and run a SF. Searchers must choose between a traditional funded search, a self-funded model, or an accelerator program. Similarly, they must decide whether to acquire a single company for long-term organic growth, follow a programmatic acquisition strategy, or build a holding company with diverse assets.
Each of these paths fits differently with the various “whys”:
- Status-seekers may prefer high-visibility holding company models.
- Lifestylers may gravitate to self-funded, single-business strategies with manageable complexity.
- Fulfillment-oriented entrepreneurs may seek stable, long-term operating roles in niche industries.
- Wealth-oriented searchers might lean toward fast-scaling strategies, financial leverage, and eventual quick exits.
The risk of misalignment
The article warns of the risks that come from not fully understanding one’s motivations. Misalignment between an entrepreneur’s why and the realities of their chosen strategy can lead to dissatisfaction, underperformance, or even burnout. For example, a fulfillment-oriented leader might struggle in a deal-heavy, investor-driven holding company model. Similarly, a lifestyle-focused entrepreneur may feel overwhelmed by the demands of a business with rapid growth expectations and external stakeholders.
The authors argue that successful searchers are those who enter EtA with clarity and conviction about their why, and who structure their path accordingly. Furthermore, an entrepreneur’s why may evolve over time as personal and professional circumstances change, what motivates someone at 30 may not hold the same meaning at 40 or 50.
Conclusion
Ultimately, “What is your why for launching a SF?” is both a challenge and a guidepost. It urges aspiring entrepreneurs to think deeply, honestly, and practically about their motivations before committing to the ETA journey. There is no single right answer, but the answer must be authentic. Understanding one’s true why increases the odds of long-term success, investor alignment, and personal satisfaction.
The authors conclude with a simple but powerful call to action: know your why before you begin, because once the journey starts, the road will test every assumption you’ve made.
Read the full case in: https://som.yale.edu/sites/default/files/2025-05/What%20Is%20Your%20Why%20for%20Launching%20a%20Search%20Fund.pdf
