Do you agree? Entrepreneurs don’t have a special gene for risk—they come from families with money

Users who viewed this discussion (Total:3)

Joined
May 2, 2017
Messages
124
Points
43
Entrepreneurs don't have a special gene for risk—they're rich kids with safety nets
by Aimee Groth, qz.com]/i]
July 17, 2015

We’re in an era of the cult of the entrepreneur. We analyze the Tory Burches and Evan Spiegels of the world looking for a magic formula or set of personality traits that lead to success. Entrepreneurship is on the rise, and more students coming out of business schools are choosing startup life over Wall Street.

But what often gets lost in these conversations is that the most common shared trait among entrepreneurs is access to financial capital—family money, an inheritance, or a pedigree and connections that allow for access to financial stability. While it seems that entrepreneurs tend to have an admirable penchant for risk, it’s usually that access to money which allows them to take risks.

And this is a key advantage: When basic needs are met, it’s easier to be creative; when you know you have a safety net, you are more willing to take risks. “Many other researchers have replicated the finding that entrepreneurship is more about cash than dash,” University of Warwick professor Andrew Oswald tells Quartz. “Genes probably matter, as in most things in life, but not much.”
Read more...
 

djbaxter

Administrator
Joined
Nov 10, 2016
Messages
2,023
Points
113
I don't think it's necessarily genes or being rich.

There are plenty of stories out there of people being propelled into entrepreneurship - and success - because they had neither money nor a safety net, and often not even employment.

Like the old saying: Necessity is the mother of invention.
 

YoHeadden

Member
Joined
Aug 1, 2019
Messages
6
Points
3
While it's absolutely an advantage and maybe even a safety net by having financial backing from family, in my experience, it is the quest to be independent and be responsible for your own destiny that drives people. One thing that entrepreneurs learn rather quickly and I can attest to, is that you get out of your own business exactly what you put into it. No one is going to be on your back to take care of the dozen little things that will need your attention. This self motivation is the one trait that is needed to be a successful entrepreneur
 
Joined
May 2, 2017
Messages
124
Points
43
I agree. But I think that the article was also trying to frame it in the context of macro economics.

When you look at developed countries versus developing countries, there are more entrepreneurs in developed countries because they do have the socioeconomic safety nets in place.

Same thing when you look at local economies. Cities that depend mainly on large companies and don't provide support for their constituents to create and grow their own businesses often end up bankrupt when these businesses leave.

Yes, there are business that go against the ends. But I can't help but imagine, what if these businesses had the support they need early on. Would have they been bigger than what they are now? Would there have been more businesses like them if there was more support for them?

Even though this article talks about rich kids, the learning I got from this was how important it is for entrepreneurs to have government and public support.
 

JeanLuc

Member
Joined
Aug 19, 2019
Messages
12
Points
3
From my own personal experience I would say it isn't necessarily true. There are different ways to become an entrepreneur nowadays. Of course, if you want to design a new (physical) product you will need capital which can be a problem if you don't have access to that. Especially because most people don't like the prospect of going into debt for a new idea that may or may not work.

If you focus on content marketing online or something of the like, the barrier to entry is much lower. In that sense I would say being a little less financially well off can actually be beneficial. Because if you think about it, why would a person with a good job making $100k/year quit to become an entrepreneur? The opportunity cost is simply too high. People that have less to lose can make the jump a little easier.
 

SkyWriting

Member
Top Poster Of Month
Joined
Nov 3, 2019
Messages
38
Points
6
Access to capital is very likely a pivot point. Fortunately government is losing place to crowd sourcing which will likely dominate in the future. Nobody gets inspired by government programs or even government loans for that matter. As soon as the current health insurance industry is gone, things should pick up dramatically.
 

Latest posts

Top