Why Scale Doesn’t Always Make Sense

Guy Raz Newsletter – June 20, 2024

Greetings from northern Italy! I’m here on a family trip.

One of the first things I noticed here is the pace of life—it’s slower. Many shops close for a few hours after lunch. No one seems to be in a hurry (except on the roads where cars drive at death-defying speeds!)

I’m not trying to idealize life here. Italy has major structural challenges: a rapidly declining population, a less hospitable climate for entrepreneurs (compared to most states in the US), and a comparatively high unemployment rate.

But at the same time, you find lots of small-scale artisans, clothing designers, and food makers who have no interest in becoming “large-scale” entrepreneurs.

For a few years now, I’ve bought jackets from a small Italian brand called 1st Pat-RN. They hand-make each jacket in a town just outside Venice—mainly using felt wool. These jackets aren’t cheap. But they are beautifully designed and incredibly well-made. They last a long time. And the brand would rather keep it that way. To scale might …