In a vitriolic attack on the BBC, Luke Johnson a noted private equity investor and very successful entrepreneur in his own right, wrote a column yesterday in the Financial Times in which he asserts quite harshly that the whole of the BBC assumes “that business is ruthless, domineering and egotistical,” and that Dragons’ Den is a farce, a cartoon, and ludicrous. He notes in passing that “when Dragons’ Den was first shown in Britain, there was a degree of novelty and even a modest element of authenticity about it” but in the whole his view is that “ the concept has been milked dry and has descended to the level of caricature”.
I agree and disagree. I profoundly disagree with his wholesale dismissal of the BBC. It is a complex and large organisation that has much to be proud of. However, I cannot disagree that it struggles with the presentation of business, commerce, entrepreneurship and the profit motive as a force for good.
At the same time I do not disagree that Dragons’ Den is largely an entertainment programme and has become something of a caricature of itself. I have long believed and when I was a part of the show, I advocated that the producers rotate the dragons to keep the show fresh. But there is an odd institutional lassitude, I presume borne out of an aversion to risk, that makes them very shy of changing any element of a successful format even when its obvious that they should do so.
Where I disagree with Luke is whether DD has done a dis-service. I readily grant him that it does not reflect the real investment process (though he is dreaming if he thinks that angel investing mirrors the elite institutional word he inhabits).
But in the trenches where I teach through School for Startups I see a huge variety of informal and uninformed investment behaviour. And I have written extensively about the underhanded people who prey on naive entrepreneurs.
But I also have seen how many people have had their eyes opened by Dragons’ Den. Unlike Luke they don’t see the Dragons: they see the entrepreneurs. They think to themselves, I have an idea, I can do better than that. And it has caused alot of people to take that first step into entrepreneurship.
But then, I am not a big fan of the venture capital investors and how they behave either. It is absolutely true that they engage in rigorous due diligence but they are also notoriously risk adverse in the UK and they frequently use their extraordinary bargaining advantage to drive onerous terms in their investment agreements.
The opportunity that Dragons’ Den misses and the part that makes me cringe when I watch the show these days, is how many of the entrepreneurs are dismissed when their ideas are not fatally flawed, merely not completely ready. With a little help and some mentoring many of the people who do not get funding could actually have successful businesses.
And I also believe that there is a huge demand for TV shows that, like Grand Designs shows how to build a house, could show how to build a business. And I’m afraid in that regard Luke is right. The BBC and the other commercial broadcasters don’t get it, don’t see it and probably never will.
Scott Allison
28 July 2010
11:19 am
One of the things that surprised the BBC with Dragons’ Den is how popular it turned out to be with young people. I witnessed this myself in my last company; we had a TV in the lunch room and the many repeats on Dave(?) were compulsory viewing for my two youngest members of staff. They would discuss each business idea, and often have a passionate debate about the merits of the person or the idea. It’s making people interested in business, and people, young and old are learning from it. This is a very good thing.
But, yes, it’s become a caricature of itself. It needs some fresh unknown faces to replace some of the tanned celebrities now sitting in those chairs. If they do that I think it will keep on going for many years; I hope it does.
Alison
28 July 2010
11:22 am
Thought provoking article. Each series I recognise peers taking part – a couple have done well – others given a mauling. I enjoy hearing the dragon’s insights, but not the “good telly” type berating that sometimes occurs.
I love Mary Queen of Shops, and even enjoyed High St Dreams, so think you’re right, with the right format, there could well be a great TV programme out there showing how it’s done!
Best wishes
alison
Matt Green
28 July 2010
11:27 am
I think some of the issues are endemic to British society – there is a general lack of promotion of the idea that it is ok to run your own business – school careers advisers never even considered the option when I was at school (in the mid 1990′s). The general populace clings to the caricatures of:-
a) the fat-cat director taking fistfuls of £££s from the pockets of the “poor workers” or
b) the very young flash entrepreneurs with fast cars at the age of 18. There’s very little coverage of the vast majority of ‘normal’ entrepreneurs and business people. Or
c) grey men in grey business suites or
d) the “Del Boy” wheeler-dealer always looking to avoid paying tax and the whole “it fell of the back of truck” euphemism.
It’s also very politically biased – any mention of profits, shareholdings and business in many social settings will illicit comments that you’re a “Tory” and inevitably you’re also one of the aforementioned “fat cats”.
Iain Haywood
28 July 2010
11:37 am
Dragons’ Den has incaculable PR value for anyone who goes on it – success or failure. Investment-wise? I’ll take my chances elsewhere…
Mark Straiton
28 July 2010
11:48 am
Dragons’ Den is good! It’s entertainment but it also really puts business and entrepreneurship in the mainstream spotlight which will hopefully encourage more ‘ordinary’ people to get interested and maybe start something up. Which is great! And it’s a two-way street – even if you fall apart on the show, the exposure you and your business gets is priceless.
Lynda Harvey
28 July 2010
12:14 pm
There is definitely something about this particular series that is very uncomfortable viewing – much more so than ever before. I think this is partly to do with the lack of new dragons. They all know each other too well now, which has resulted in a ‘gang like’ mentality amongst the dragons; collectively bullying and ridiculing entrepreneurs.
The more competitive intra-dragon relationship of the early series (part of the entertainment factor) has basically disappeared too, for the same reason. So the ‘entertainment’ is just one way traffic – all at the expense of entreprenuers. Your rotation suggestion may address this.
BUT it does provide nuggets of gold – Kirsty from Worthenshaws for example, a total inspiration to many.
Andy Hanselman
28 July 2010
12:30 pm
As something that originally set out to ‘promote’ entrepreneurship and enterprise, I can’t help thinking that it’s become a great way of ‘ridiculing’ and ‘exploiting’ people, particularly people who maybe dare to try and do something a little differently. OK, so they throw in a couple of people who they invest in (to make them look generous and caring?). I’ve met a number of entrepreneurs who have been on the show, ‘won’, ‘lost’ and ‘turned them down’ and certainly the way it all works, it’s very much a ‘for TV’ thing, not a ‘business’ thing.
I’m not knocking the individual ‘Dragons’ personally – they are all clearly very successful entrepreneurs and business leaders, but I can’t help but feel that they send out the ‘wrong messages’ to aspiring and potential entrepreneurs who need encouragement and role models. It’s a bit like The Apprentice (key message? To get on, look after yourself and ‘screw’ others – ok, the junior one was a little more constructive and positive, which was good to see).
I’ve worked with so many successful business leaders and many tell me they looked for and benefitted from real ’role models’ as they developed – and many still do now even though they are ‘successful’! They are people that they could learn from, in both their successes and their mistakes.
So, come on BBC! Let’s have more ‘constructiveness! Please promote, support and ‘role model’ entrepreneurship, and give people encouragement and constructive support to those ‘aspirers’- This country needs them!
You do it brilliantly with Mary Portas, Queen Of Shops – constructive, enlightening and entertaining – more like that please!
ps looking forward to seeing you in Sheffield, Doug!!!
JunkkMale
28 July 2010
12:49 pm
There are a lot of issues being jumbled up in there, from the programme itself to those who commission/ed it.
Many views exist as to DD’s values and value.
However, I have to err on the side that ‘the BBC’ (rather tarring what is, yes, a massive entity of many diverse pieces and people with a broad brush) tends/ed towards the less than credible conceit that it represents the reality of the creation (of which I know a fair bit) and/or investment (of which I know much less, but still a bit) processes. Which they plug(ged) mercilessly to push both the show and a rather less than credible version of ‘business’ they seemed to feel meet their favoured narratives.
And for that they rightly deserve being critiqued.
Too many people’s expectations of ideas being turned into businesses, including facile hype-obsessed pols, have been shaped by this.
Hand on heart, how many ‘good’ ideas never even saw a camera because the ratings-luvvies didn’t see ‘theatre’?
And how many howlers got taken to the limit because they played well in post?
For heaven’s sake, I still recall some ‘successes’ trumpeted across the entire BBC broadcast estate to boost the show, only to find that even at this stage certain minor aspects such as IP had not, as such, been checked.
I can live with reality. But it needs to be, actually, real.
And by pitching DD as anything other than Big Brother in suits seems… optimistic. Especially by an entity whose grasp of business is rooted in a funding structure they happily chirp is ‘unique’.
Nick Barker
28 July 2010
1:55 pm
A while back I heard a Rachel Elnaugh (Ex-Dragon) talk (http://bit.ly/57mf9) about the inner workings of DD/BBC. I concluded that DD is great entertainment but it does have its darker side.
I agree with Mark Straiton that ‘really puts business and entrepreneurship in the mainstream spotlight’ but there is also a cost.
The show producers deliberately put many unsuitable candidates in front of the investors to provoke and maximize emotional responses on both sides. This makes for exciting entertainment but is frequently at the expense of the entrepreneur.
The entrepreneur’s often become the laughing stock. Some of the entrepreneurs are naive. Some are foolish. Many of them are unprepared but they’ve all taken a significant risk to start their own business.
We now live in a time when our economy needs young fresh businesses the most. So lets celebrate entrepreneurship and give them a helping hand. We have to learn/helped to become entrepreneurs not thrown just aside.
Of course, persistence/determination is a key attribute to being an entrepreneur
John King
28 July 2010
3:02 pm
I totally agree with Doug’s post. Especially with the bit about a ‘Grand Designs’ TV show for startups. I propose Doug Richard in the Kevin McCloud role… how about it Doug?
Nick White
28 July 2010
5:14 pm
It’s infotainment. Good and Evil. A bit of a blood sport really and you know how the Brits love their blood sports. I suppose it is helpful for would be entrepreneurs to see that investors can be: stupid, deluded, rude, charming, helpful, wrong, ignorant, arrogant, uninterested, divided, opinionated and also make bad investment decisions.
What always interests me is that the entrepreneurs never or rarely fight back. They should be challenging the ludicrous statements made by the Dragons on occasions. In real life they do. Perhaps it’s the cameras?
Two companies I know appeared on the programme with absolutely no intention of taking the money from the Dragons. The wrong people for their business; the money was of secondary importance. They wanted the publicity and got it and that brought in more interesting contacts.
I agree a Grand Designs for entrepreneurs would be good but would enough people really watch it? Not enough blood.
Moments that make you cringe? Rachel Lowe and the crappiest investment opportunity that I ever saw!
Robin Griffiths
29 July 2010
9:15 am
Well Doug you and I have pitched to a few venture capitalists in our time and we know how arrogant and dismissive they can be. The uncomfortable truth, however, is the good ones are right most of the time!
The key thing I don’t understand in Dragon’s Den is the level of investment the entrepreneurs are looking for. If you’ve got a great start-up business you truly believe in and have worked hard to create, then most people should be able to come up with £50k for themsleves – bank loan secured against the house for example.
The reality, of course, is it’s about appearing on TV that attracts most entrepreneurs to the show.
Andrew Fern
7 August 2010
12:04 pm
Dragon’s Den is actually pretty sad. The people pitching are mostly inventors not entrepreneurs. The dragons are mostly financially successful entrepreneurs not successful investors.
It’s the equivalent of feeding the Christians to the lions. Good entertainment if you don’t want to think too much about what’s going on.
Cheers,
Andrew
Jacklord
18 February 2011
12:47 pm
Dragon’s Den totally woke me from my daze of of the 9-5 grind. Irrespective of it’s authenticity the fact remains that it’s an effective tool for garnering interest in business and glamorising entrepreneurship.
And I’m very grateful for the shift in perception that it’s affected in myself.
Yousaf
28 March 2011
12:50 pm
I think Jacklord has made a really good point. Egos and harsh comments aside, I think DD is a good wake up call for many youngesters.