Effectual Entrepreneurship, Third Edition
Practically Speaking
Something from Nothing
Cycling through various products and markets, this company literally turns throw-aways into raw materials while making a profit.
Entrepreneur: Tom Szaky
Entity: TerraCycle
Country: USA
Pages 101-102 in
Chapter 7 Opportunities Are Created as Well as Discovered (pp. 97-110)
"While some entrepreneurs discover their business plans are unintentionally full of excrement, Tom Szaky's was designed around it; worm dung, in fact. Inspired by his friends' success using red wiggler worms to process compost and feeding the resulting dung to plants, Szaky felt there could be a business in commercially producing and distributing a product he would call "Worm Poop." Emboldened by taking fifth place in the Princeton Business Plan Contest, he quit Princeton after two years to form TerraCycle and devote himself to delivering Worm Poop to households everywhere.
The Smell of Success
With 20,000 US dollars—the sum of all of Szaky's bank accounts and credit cards—he purchased a processing machine and began shoveling Princeton University's food waste into it to feed an ever-growing colony of worms. A worm can consume twice its body weight each day, so Szaky was soon up to his knees in product. Committed to a fully sustainable offering, he packaged his prized Worm Poop in paper bags and took it to gardening stores inviting them to stock it. The polite response was that the product looked good, but the aroma was not consumer compatible."
Under Construction: Join Us in Co-Creation!

Video Resources
References & Links
- How Starbucks Became An $80B Business—YouTube. (n.d.). Retrieved April 20, 2025, from https://www.youtube.com/watch?v=XUBeH7VQaFY&t=50s
- Howard Schultz. (n.d.-a). Schultz Family Foundation. Retrieved April 20, 2025, from https://schultzfamilyfoundation.org/team-member/howard-schultz/
- Howard Schultz. (n.d.-b). Forbes. Retrieved April 20, 2025, from https://www.forbes.com/profile/howard-schultz/
- Howard Schultz. (2025). In Wikipedia. https://en.wikipedia.org/w/index.php?title=Howard_Schultz&oldid=1285405168
- Howard Schultz: An Overview of the Entrepreneur’s Career - 2025. (n.d.-c). MasterClass. Retrieved April 20, 2025, from https://www.masterclass.com/articles/howard-schultz-life-and-career
- hpeiper. (2018, September 4). Schultz to young entrepreneurs: ‘It can happen for you’. Starbucks Stories EMEA. https://stories.starbucks.com/emea/stories/2018/bocconni-university/
- Starbucks CEO Howard Schultz: How to Be Strategic Thinkers | Inc. - YouTube. (n.d.). Retrieved April 20, 2025, from https://www.youtube.com/watch?v=Q5Djl9_Xc3w
- Starbucks’ CEO Talks Business—YouTube. (n.d.). Retrieved April 20, 2025, from https://www.youtube.com/watch?v=83yInyY1KLs&t=152s
- Starbucks’s Howard Schultz: From Coffee Entrepreneur to Three-Time CEO. (n.d.). WSJ. Retrieved April 20, 2025, from https://www.wsj.com/story/starbuckss-howard-schultz-from-coffee-entrepreneur-to-three-time-ceo-439768fc
- Taylor, K. (2017, December 13). From Brooklyn to Billionaire: The Story of How Howard Schultz Transformed Starbucks Into an $84 Billion Business. Inc. https://www.inc.com/business-insider/howard-schultz-chairman-former-ceo-starbucks-successful-billionaire-coffee.html
- The Man Behind Starbucks Reveals How He Changed the World—YouTube. (n.d.). Retrieved April 20, 2025, from https://www.youtube.com/watch?v=LnA7n9qSB7E&t=255s
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