It is often said that anyone with the right idea and enough hard work can succeed. We are constantly presented with images of billionaires such as Mark Zuckerberg and Richard Branson, who have built empires from nothing, and it is believed that entrepreneurs make more money than salaried employees. However, research has shown that entrepreneurship contributes 35% less to income over a 10-year period than paid work. A career is much riskier than starting a business.
Early influences in life are more important than later ones, and family and community backgrounds account for up to 45% of the variance when it comes to entrepreneurship. Resources, genes, and the neighborhoods of parents all play a role in determining success. You may think that you have to pay your dues before you can take the leap into entrepreneurship, but this is not necessarily true. A career as an entrepreneur is not the only way to generate wealth, nor does it guarantee success.
Many people believe that it was easier for self-made entrepreneurs in the past to create wealth, while those in the modern era have inherited their fortunes. However, entrepreneurs can choose to finish a project or sell a product or service after it has been successful in order to move on to new ideas. This shows that being an entrepreneur is hard work because it is difficult to start and there is no guarantee that your efforts will pay off in the future. Entrepreneurs also create new markets and wealth by developing new products, services, or technology.
It is important not only to encourage people of all backgrounds to become entrepreneurs, but also to encourage lenders, advisors, and investors to welcome entrepreneurs who do not look or think like them. Research has revealed that 81% of entrepreneurs work at night and 89% of entrepreneurs work on weekends. Business gurus and entrepreneurs often boast about the benefits of working for oneself and the disadvantages of working in a traditional office setting. If you think this will not affect your chances of success, ask non-white businessmen, women, or young people who have been there.
A study conducted in Israel found that even those who scored lower on mathematical achievement tests but who came from families with higher incomes and wealth were more likely to become entrepreneurs. It is important to consider both the advantages and disadvantages of being an entrepreneur compared to having a typical 9-to-5 job. Unfortunately, as an early entrepreneur you may have to sacrifice work-life balance in order for your business to succeed. In the business world becoming an entrepreneur is often seen as the only way to escape the “rat race” and get rich.