5 ms·

So why don't many normal people successfully grow a business?

by jimbeam77 9y ago

ghostly_s 9y ago
Because the economy can only support a limited number of business owners, but a large number of employees.
- jimbeam77 9y ago
  The economy doesn't 'support' business owners - business owners (and their customers and employees) are the economy.
  - knieveltech 9y ago
    That business owners are floated on the backs of their employees seems pretty obvious.
    - lacampbell 9y ago
      Yes, you're generally either an employer or an employee in a modern economy. Is this news to anyone?
      - knieveltech 9y ago
        I feel like you are missing or intentionally ignoring the point here.
        lacampbell 9y ago
        I'm giving you the benefit of the doubt.
        knieveltech 9y ago
        Droll, given I'm not the one who appears to be confused here.
  - deleted 9y ago
    [deleted]
omginternets 9y ago
Because they're doing other, equally-valuable things that require the same traits?
deleted 9y ago
[deleted]
lhnz 9y ago
Well, some of them do. And also a lot of people with "grit" don't amount to anything. They lack networks, capital or the right idea. Or they have something else that they feel is more important than building a startup: a family, work flexibility, or a hobby that consumes them.
tboyd47 9y ago
They need health insurance
__jal 9y ago
Because the risk calculation looks different when one has a bank account that can support one's family while working for free for a x% chance of a payout.
- Terr_ 9y ago
  In addition, beware the stories of "self made" tycoons which will conveniently ignore how -- even if they didn't trigger it -- they still had a safety-net of wealthy relatives that they could rely on for emergencies or loans. (Ex: Bill Gates.) Statistically speaking, poorer people can't afford to undertake the same risks, so they can't take advantage of the same opportunities. Once you hit zero, you can't gamble your way back.
- ryandrake 9y ago
  Bingo. Tons of money can't buy you the home run, but it can buy you a stronger bat, a slower pitch, and as many swings as you need to hit that home run.
knieveltech 9y ago
Translation: why don't many normal people have trust funds, expensive educations, the disposable income and lack of financial responsibilities to be able to work for free for extended periods of time, friends in industry, investor class connections, or some combination of all of the above plus a shitload of luck.
- trendia 9y ago
  If those things are required, then why do so many immigrants become entrepreneurs?
  - ladytron 9y ago
    They are not required. Many more here who are successful do not have all or any of those things. They just don't talk much.
  - chickenfries 9y ago
    Many wealthy immigrants have those privlidges...
  - s73ver 9y ago
    They're not required, but they make things a whole lot easier.
  - mschuster91 9y ago
    Spoken from a German POV, it's quite simple: racism. When you're an immigrant and no one wants to hire you because you have a non-German family name (illegal in theory, hard to enforce in practice!), you have four options: be stuck in low-level menial work for the rest of your life, rely on food stamps/government assistance ("Hartz IV" in Germany), turn into crime life or start a small company (costs ~ 50€ or such for a fully-liable company, and for a sorta-limited company "UG" a bit more). Also, immigrants usually do not carry cultural dead weight - once again I refer to Germany. Starting a company is not really popular here, as you will be socially shunned if you fail (even if you not end up bankrupt in the process, but that's another can of worms). Germans are risk-averse to the extreme, immigrants usually not.
maxxxxx 9y ago
Maybe some people just aren't interested in doing that? Many entrepreneurs don't want to be employees and maybe many employees don't want to be entrepreneurs. I think both groups should be happy that the other exists.
metaphorm 9y ago
they do. you just don't read about the successful entrepreneurs that grow their business from 1 gas station convenience store to 4 gas station convenience stores.
- iamacynic 9y ago
  i don't think it really registers in peoples' conscious minds that somebody owns _every single_ restaurant/deli/store/shop/building/etc. in a city, and it's definitely not some rich dotcom guy.
analog31 9y ago
Lack of an idea is the main obstacle for me. My best business idea so far has only produced about $20k/y of sales.
- ktRolster 9y ago
  If you are really skilled at running a business, then going to startup conferences and such will certainly give you a bunch of ideas.
dv_dt 9y ago
I think it's basically the shrinking of the middle class and people with enough capital to contemplate starting a business. Looking at the number of business starts shows an ever decreasing number - which correlates with the stagnation of wages and size of the middle class. Also linked, the number of hours worked has increased steadily, as well as a increase in both parents working, so availability of time in households to supply "labor capital" to start businesses has also shrank.
throwaway18917 9y ago
Clearly they're just not trying hard enough to be rich.
martin1975 9y ago
Why would I/we when between me and my wife we earn > 200k a year with 9-5 jobs? Most SBO owners dont make that much. I get to see my family and children grow. The people I know who run a small business successfully slave away at their workplace because they have to... or the last friend sold it because he burnt out after a year. The only time one would endeavor to run a massive business rather than a small one is if you invented/patented something or provided a service that can be scaled and you need help to bootstrap it... in which case unless BillG or DonaldT is yer uncle, you're gonna be sucking on some VC's titty anyway... i. e. they own you.

So why don't many normal people successfully grow a business?

ghostly_s 9y ago

Because the economy can only support a limited number of business owners, but a large number of employees.

jimbeam77 9y ago
The economy doesn't 'support' business owners - business owners (and their customers and employees) are the economy.
- knieveltech 9y ago
  That business owners are floated on the backs of their employees seems pretty obvious.
  - lacampbell 9y ago
    Yes, you're generally either an employer or an employee in a modern economy. Is this news to anyone?
    - knieveltech 9y ago
      I feel like you are missing or intentionally ignoring the point here.
      - lacampbell 9y ago
        I'm giving you the benefit of the doubt.
        knieveltech 9y ago
        Droll, given I'm not the one who appears to be confused here.
- deleted 9y ago
  [deleted]

omginternets 9y ago

Because they're doing other, equally-valuable things that require the same traits?

deleted 9y ago

[deleted]

lhnz 9y ago

Well, some of them do. And also a lot of people with "grit" don't amount to anything. They lack networks, capital or the right idea. Or they have something else that they feel is more important than building a startup: a family, work flexibility, or a hobby that consumes them.

tboyd47 9y ago

They need health insurance

__jal 9y ago

Because the risk calculation looks different when one has a bank account that can support one's family while working for free for a x% chance of a payout.

Terr_ 9y ago
In addition, beware the stories of "self made" tycoons which will conveniently ignore how -- even if they didn't trigger it -- they still had a safety-net of wealthy relatives that they could rely on for emergencies or loans. (Ex: Bill Gates.) Statistically speaking, poorer people can't afford to undertake the same risks, so they can't take advantage of the same opportunities. Once you hit zero, you can't gamble your way back.
ryandrake 9y ago
Bingo. Tons of money can't buy you the home run, but it can buy you a stronger bat, a slower pitch, and as many swings as you need to hit that home run.

knieveltech 9y ago

Translation: why don't many normal people have trust funds, expensive educations, the disposable income and lack of financial responsibilities to be able to work for free for extended periods of time, friends in industry, investor class connections, or some combination of all of the above plus a shitload of luck.

trendia 9y ago
If those things are required, then why do so many immigrants become entrepreneurs?
- ladytron 9y ago
  They are not required. Many more here who are successful do not have all or any of those things. They just don't talk much.
- chickenfries 9y ago
  Many wealthy immigrants have those privlidges...
- s73ver 9y ago
  They're not required, but they make things a whole lot easier.
- mschuster91 9y ago
  Spoken from a German POV, it's quite simple: racism. When you're an immigrant and no one wants to hire you because you have a non-German family name (illegal in theory, hard to enforce in practice!), you have four options: be stuck in low-level menial work for the rest of your life, rely on food stamps/government assistance ("Hartz IV" in Germany), turn into crime life or start a small company (costs ~ 50€ or such for a fully-liable company, and for a sorta-limited company "UG" a bit more). Also, immigrants usually do not carry cultural dead weight - once again I refer to Germany. Starting a company is not really popular here, as you will be socially shunned if you fail (even if you not end up bankrupt in the process, but that's another can of worms). Germans are risk-averse to the extreme, immigrants usually not.

maxxxxx 9y ago

Maybe some people just aren't interested in doing that? Many entrepreneurs don't want to be employees and maybe many employees don't want to be entrepreneurs. I think both groups should be happy that the other exists.

metaphorm 9y ago

they do. you just don't read about the successful entrepreneurs that grow their business from 1 gas station convenience store to 4 gas station convenience stores.

iamacynic 9y ago
i don't think it really registers in peoples' conscious minds that somebody owns _every single_ restaurant/deli/store/shop/building/etc. in a city, and it's definitely not some rich dotcom guy.

analog31 9y ago

Lack of an idea is the main obstacle for me. My best business idea so far has only produced about $20k/y of sales.

ktRolster 9y ago
If you are really skilled at running a business, then going to startup conferences and such will certainly give you a bunch of ideas.

dv_dt 9y ago

I think it's basically the shrinking of the middle class and people with enough capital to contemplate starting a business. Looking at the number of business starts shows an ever decreasing number - which correlates with the stagnation of wages and size of the middle class. Also linked, the number of hours worked has increased steadily, as well as a increase in both parents working, so availability of time in households to supply "labor capital" to start businesses has also shrank.

throwaway18917 9y ago

Clearly they're just not trying hard enough to be rich.

martin1975 9y ago

Why would I/we when between me and my wife we earn > 200k a year with 9-5 jobs? Most SBO owners dont make that much. I get to see my family and children grow. The people I know who run a small business successfully slave away at their workplace because they have to... or the last friend sold it because he burnt out after a year. The only time one would endeavor to run a massive business rather than a small one is if you invented/patented something or provided a service that can be scaled and you need help to bootstrap it... in which case unless BillG or DonaldT is yer uncle, you're gonna be sucking on some VC's titty anyway... i. e. they own you.