Paul Graham has another brilliant and lucid essay on the genius of startups and business ideas at the margin.

...great new things often come from the margins, and yet the people who discover them are looked down on by everyone, including themselves.

It's an old idea that new things come from the margins. I want to examine its internal structure. Why do great ideas come from the margins? What kind of ideas? And is there anything we can do to encourage the process?

I really can't say that I ever created a great or long-lasting business, but the most fun I've ever had in business (including now) has been in the businesses at the margins. My first and only 'startup' was my bicycle shop in the 'margin' of the garage of my parents' business. It was actually a highly profitable enterprise that was actually the only bicycle shop to serve rural Kewaunee county, WI, including service contracts with the high schools and it's own charity ride and junior mountain bike team. Not bad for something that was built in a marginal space, with marginal funds serving a marginal market offering marginal services and selling marginal brands.

Read more of Paul's essay. It's worth a few minutes out of your day. (via Fred Wilson)