You're right, but undershooting it by a lot. $50k couldn't even open a Subway franchise in a really cheap location. And Subway has really cheap franchises. Most

You're right, but undershooting it by a lot. $50k couldn't even open a Subway franchise in a really cheap location. And Subway has really cheap franchises. Most fast food restaurant franchises will have startup costs in the $250,000 to $3m range. (I use franchises because the numbers are easily available. Independent restaurants vary, and if you're doing an indie-feel coffee shop or hole-in-the-wall you might be able to swing $10k, but $100-200k is what you'll start at for the type of restaurant that might actually make money. Heck, your signage might cost $5k.) The sort of capital needed for most businesses is beyond the ability of most people to save. For some businesses (like software or various types of personal services) you can pay a lot of sweat equity, but there's lots of other types that just plain need money capital. If you're just saving, most of these would be out of range for even the upper middle class. Financing is even more important for business expansion. I can get a loan or raise money to buy equipment/rent space/hire people that'll let me expand my business to meet demand now. It'd take ten years to save that much from current profits.