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You're forgetting opportunity cost here, which is by far the largest factor. Say you worked a 9-5 for two years saving up $30k. You reach the end of two years

You're forgetting opportunity cost here, which is by far the largest factor. Say you worked a 9-5 for two years saving up $30k. You reach the end of two years and youre going to quit your job, losing all of your income, and then also spend 100% of your savings right away on beginning some new business that could fail at any point? You are thinking from the perspective of someone from wealth, missing the realities that would be faced by someone actually considering starting a business without a history of even middle class wealth. Most businesses are not the kind you can start on your off time, as a side project. You cannot keep your salary, you have no investment income, or passive income of any kind. What happens when you fail? you've spent every last cent of your savings, you have no job, you have a sizeable gap in your resume, and going back to your old career means youll have to take a pay cut compared to what you were making before you left to start the business. This is a real fear that keeps many people from going out on their own. If you are from wealth on the other hand, having no savings might not be as big of a deal. You wont become homeless if you have family and friends that have the means to take you in. You wont go hungry, you can even take a few weeks to reevaluate your decisions and decide if you want to start another business with your lessons learned, or if you should return to the job market and get yourself back on your feet.

yummyfajitas 11y ago
You are thinking from the perspective of someone from wealth... That's quite a feat, given that I'm not from wealth at all. I've probably got more money than anyone else in my family and I've earned it mainly from salaried employment and personal investments. The opportunity costs you've described apply equally well to someone who came from wealth - resume gap, time spent not working, no job, etc. I'm not disputing that startup capital from family would be helpful. I'm disputing the article's implication that the amounts of capital needed are unavailable to regular people, or that only people from wealth can start a business.
- unprepare 11y ago
  >I've earned it mainly from salaried employment and personal investments If investment income is a relevant part of your income stream, then congratulations - you are among the wealthiest and most financially literate of all americans. You are now someone who speaks from a position of wealth because of this. >opportunity costs you've described apply equally well to someone who came from wealth Oh really? Because when youre poor and your parents live in a one bedroom apartment and cant afford food for an extra person, maybe youve even been sending them money because they have problems keeping up with their bills and being able to eat everyday. Thats the same as a stanford grad, whose parents live nearby in a 4 bedroom plus house, can easily afford to send their children money when they need it, let alone allowing them to move back home with free room and board at any time. If you honestly dont see a difference, from the perspective of starting a business, between these two people, then we have nothing further to discuss. > or that only people from wealth can start a business. I have yet to see the article or a single commenter make this claim.

yummyfajitas 11y ago

You are thinking from the perspective of someone from wealth... That's quite a feat, given that I'm not from wealth at all. I've probably got more money than anyone else in my family and I've earned it mainly from salaried employment and personal investments. The opportunity costs you've described apply equally well to someone who came from wealth - resume gap, time spent not working, no job, etc. I'm not disputing that startup capital from family would be helpful. I'm disputing the article's implication that the amounts of capital needed are unavailable to regular people, or that only people from wealth can start a business.

unprepare 11y ago
>I've earned it mainly from salaried employment and personal investments If investment income is a relevant part of your income stream, then congratulations - you are among the wealthiest and most financially literate of all americans. You are now someone who speaks from a position of wealth because of this. >opportunity costs you've described apply equally well to someone who came from wealth Oh really? Because when youre poor and your parents live in a one bedroom apartment and cant afford food for an extra person, maybe youve even been sending them money because they have problems keeping up with their bills and being able to eat everyday. Thats the same as a stanford grad, whose parents live nearby in a 4 bedroom plus house, can easily afford to send their children money when they need it, let alone allowing them to move back home with free room and board at any time. If you honestly dont see a difference, from the perspective of starting a business, between these two people, then we have nothing further to discuss. > or that only people from wealth can start a business. I have yet to see the article or a single commenter make this claim.