Entrepreneurs don’t have a gene for risk – they come from families with money • Hacker News Board

Re: Entrepreneurs don’t have a gene for risk – they come from families with money

#251

Post by Mikeb85 » Tue, Sep 01, 2015, 7:13 PM UTC

lhc- wrote: post #219

twcooper wrote: post #189

Earlier quoted context omitted.

But from a broader social standpoint, isn't it a good thing that people who can afford to take risks are the ones taking the risks? It sucks on an individual basis if you're living paycheck-to-paycheck and can't risk failure, but it's not such a bad thing that the affluent are taking larger economic risks than the poor.

It sorta spits at the idea of social mobility ("the american dream") though. The biggest rewards are only really available to those who can take risks like starting a business, and if you restrict that to only those who are already well-off, you remove most chances for the poor to ascend to the higher classes.

This is why a social security net (ie. Welfare state) can actually be good for the economy. In fact, most western countries qualify as 'welfare states' when compared to 3rd world countries.

But this supports the whole idea of a basic income - if everyone is able to live without working, they can take risks such as going to University, starting a business, etc...

A lack of social net prevents risk taking and severly limits mobility, creating a 'have-not' class and keeping them there for the most part.

Re: Entrepreneurs don’t have a gene for risk – they come from families with money

#252

Post by eloff » Tue, Sep 01, 2015, 7:15 PM UTC

lhc- wrote: post #219

twcooper wrote: post #189

Earlier quoted context omitted.

But from a broader social standpoint, isn't it a good thing that people who can afford to take risks are the ones taking the risks? It sucks on an individual basis if you're living paycheck-to-paycheck and can't risk failure, but it's not such a bad thing that the affluent are taking larger economic risks than the poor.

It sorta spits at the idea of social mobility ("the american dream") though. The biggest rewards are only really available to those who can take risks like starting a business, and if you restrict that to only those who are already well-off, you remove most chances for the poor to ascend to the higher classes.

There isn't that much social mobility, there's plenty of statistics that prove that. The American dream is just that, a dream. Like most dreams, the odds are long. You can reduce those odds, but don't kid yourself that it will be easy.

Re: Entrepreneurs don’t have a gene for risk – they come from families with money

#253

Post by aianus » Tue, Sep 01, 2015, 7:16 PM UTC

bicknergseng wrote: post #245

logfromblammo wrote: post #155

Earlier quoted context omitted.

You can consistently get $100k in Silicon Valley, New York City, and Washington DC Metro, although you will need Top Secret security clearance for the latter. It should come as no surprise that the expenses in those areas are much higher. If you settle for a lower salary in an area with lower living expenses, your effective savings rate could be higher. Also, you don't want those DC jobs. Just say no. The military in…

Good luck saving half your income, even at $100k, in any of those places. Median rent alone in SF is way over half of that in a year... BEFORE taxes.

I saved over 80% of my take-home pay when I lived in SF. The rent is expensive, yes, but everything else is cheap and at most jobs you get free food and entertainment.

Re: Entrepreneurs don’t have a gene for risk – they come from families with money

#254

Post by thatusertwo » Tue, Sep 01, 2015, 7:17 PM UTC

mindcrime wrote: post #193

Wow, talk about an article that is completely devoid of value. That stands out as soon as you see "cult of the entrepreneur" in the first sentence. OK, now we know that most entrepreneurs come from "families with money" (according to their definitions anyway). Great, so what do I do with that particular bit of information? I'm most definitely not from a family of means, so do I just quit now? Have I been deluding mys…

I'd figure the message is 'if you are poor your entrepreneurial journey will be more difficult.'

Working a job and starting a business is most likely more difficult than only starting a business.

Re: Entrepreneurs don’t have a gene for risk – they come from families with money

#255

Post by aianus » Tue, Sep 01, 2015, 7:19 PM UTC

justathrow2k wrote: post #205

aianus wrote: post #117

Earlier quoted context omitted.

I think almost all my (upper-year) classmates got offers to at least one of Amazon/Microsoft/Google/Facebook/Twitter/Palantir/Uber. And I went to a school in Canada that nobody's ever heard of (University of Waterloo).

You do realize that Waterloo has a CS program that's highly regarded (internationally), yes?

Outside tech circles most people give me a blank stare or ask me if it's in England or in Belgium. It's certainly not an Ivy League school where my rich parents dropped $200k to ensure my spot in the upper class, like some of these commenters claim.

Re: Entrepreneurs don’t have a gene for risk – they come from families with money

#256

Post by smoyer » Tue, Sep 01, 2015, 7:23 PM UTC

kelukelugames wrote: post #186

smoyer wrote: post #154

Earlier quoted context omitted.

Thirty-five years back, I went to work as the fourth person in a start-up (that's still in business) and loved the fast-paced environment of a start-up life. Fifteen years ago, I went to work for "BigCo", and while our group was essentially an internally funded start-up, I hated the politics, especially as we acquired other companies and tried to integrate their software products into ours. The good news is that succ…

Do people really believe that their upper-middle class upbringings offered no advantages other than cash?

I didn't mean to imply I didn't have advantages ... just being born where I was was a tremendous advantage. On the other hand, I wasn't a legacy dumped into an Ivy League college, I wasn't handed a trust fund or even enough money to even live for a month.

My parents wanted me to follow the "safe path", to be the '50s style company man who would work his 40 years and retire with a good pension. They wouldn't endorse the life I ended up living. I was however encouraged to be curious and the "hack". That was an amazing gift and I am in fact grateful for my privileged upbringing - I'm just not tanned from laying on the beach at the Hamptons.

Re: Entrepreneurs don’t have a gene for risk – they come from families with money

#257

Post by millermp12 » Tue, Sep 01, 2015, 7:25 PM UTC

efaref wrote: post #63

lint_roller wrote: post #34

Earlier quoted context omitted.

I have a very similar story, except I'm on part one. Recent graduate, very modest family, and drank all the Paul G koolaid which got me to jump into the whole scene just to realize I'm mostly surrounded by upper middle class types where there's still risk being taken just not nearly as much. This has taught me to always consider the source of advice more rigorously. I still think he's a great thinker, but some of the…

Agree. The risk of having to run back to mummy and daddy with their tail between their legs is no risk at all. I could be quite entrepreneurial if I didn't also have to pay for my apartment and food every month without fail.

The refrain of posers everywhere...

Re: Entrepreneurs don’t have a gene for risk – they come from families with money

#258

Post by millermp12 » Tue, Sep 01, 2015, 7:29 PM UTC

chrisbennet wrote: post #136

Rainymood wrote: post #111

Earlier quoted context omitted.

TL, DR; It is much easier to do X if you have some basic level of financial security in your life. Same goes for education. "Rich" people can pursue and education in terms of opportunity costs. Some kids I went to HS with had to work part time to support their own families, having less time to invest in their education ... really sad story.

Don't forget the unpaid internships. Only wealthy kids can take advantage of those.

Or protected classes

http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3155774/

Re: Entrepreneurs don’t have a gene for risk – they come from families with money

#259

Post by mikeash » Tue, Sep 01, 2015, 7:32 PM UTC

twcooper wrote: post #189

efaref wrote: post #63

Earlier quoted context omitted.

Agree. The risk of having to run back to mummy and daddy with their tail between their legs is no risk at all. I could be quite entrepreneurial if I didn't also have to pay for my apartment and food every month without fail.

But from a broader social standpoint, isn't it a good thing that people who can afford to take risks are the ones taking the risks? It sucks on an individual basis if you're living paycheck-to-paycheck and can't risk failure, but it's not such a bad thing that the affluent are taking larger economic risks than the poor.

I would rather see the most able taking the risks, because they'll be the ones most likely to succeed, and we all benefit.

Assigning resources to the most able is, of course, an immensely difficult problem that nobody really knows how to solve. But it should be the goal, and I don't see affluence as a good substitute.

How many people are out there right now with the personal ability to change the world in some large beneficial way, but without the necessary finances? What are the rest of us missing out on because they're stuck working a 9-5 job to pay their rent, while some idiot with money is building Twitter for Cats and talking about how much of a risk taker he is because he's living off $50,000 in savings until the VC money comes in?

Re: Entrepreneurs don’t have a gene for risk – they come from families with money

#260

Post by justathrow2k » Tue, Sep 01, 2015, 7:32 PM UTC

aianus wrote: post #255

justathrow2k wrote: post #205

Earlier quoted context omitted.

You do realize that Waterloo has a CS program that's highly regarded (internationally), yes?

Outside tech circles most people give me a blank stare or ask me if it's in England or in Belgium. It's certainly not an Ivy League school where my rich parents dropped $200k to ensure my spot in the upper class, like some of these commenters claim.

For sure. Why you're getting my response, and others like it, is because well, this is a tech circle and we're talking about tech jobs, so in this context, it's certainly nowhere close to being a school no one has heard of.

edit: Your original comment (paraphrased) was, 'I go to this school no one's heard of, but my classmate get offers to ', but the reality of this is that all of these top-tier tech companies are without a doubt quite aware of Waterloo and it's quality. The same can't be said for, what, I don't know, Cleveland State University.