Just How Risky Is Entrepreneurship, Really?
blogs.hbr.org
Just How Risky Is Entrepreneurship, Really?
1–10 of 16 posts
Re: Just How Risky Is Entrepreneurship, Really?
#2If entrepreneurship is such a force for good in our society, why doesn't the government promote the small business interests more? What I am speaking of is the truly overwhelming amount of paperwork and taxes that must be satisfied from day 1. Just to beat a dead horse, the requirement for the 1090 forms for all, including corporate payees, would have absolutely choked most small businesses. And woe be unto those who through ignorance or arrogance didn't file. My plea is to all readers, think before you vote this year. See who is really promoting a better environment for small business, and vote for them. Let us reduce the risk for entrepreneurs and build a better society!
Re: Just How Risky Is Entrepreneurship, Really?
#3[deleted]
Re: Just How Risky Is Entrepreneurship, Really?
#4There is a flaw in this argument.
First they say that 56% of companies started in 2004 were still in business in 2010. Then they reference the VC rule of thumb that 4 of 5 companies will flounder and dismiss VC companies as being "riskier". But then for their argument on making "real money" as an entrepreneur they reference the same VC companies that they already dismissed as being riskier and having a failure rate far higher than the 44% the article led off with.
Re: Just How Risky Is Entrepreneurship, Really?
#5> "First, entrepreneurship is not riskier than working at a big bank or law firm, a fact vividly underscored by the de facto nationalization of the banking sector..."
We might have to rewind the tape here - I think I must have slept through this part.
Re: Just How Risky Is Entrepreneurship, Really?
#6If entrepreneurship is such a force for good in our society, why doesn't the government promote the small business interests more? What I am speaking of is the truly overwhelming amount of paperwork and taxes that must be satisfied from day 1. Just to beat a dead horse, the requirement for the 1090 forms for all, including corporate payees, would have absolutely choked most small businesses. And woe be unto those who…
You are presupposing that the general social interest is well aligned with those of government/bureaucrats/legislators.
Re: Just How Risky Is Entrepreneurship, Really?
#7If entrepreneurship is such a force for good in our society, why doesn't the government promote the small business interests more? What I am speaking of is the truly overwhelming amount of paperwork and taxes that must be satisfied from day 1. Just to beat a dead horse, the requirement for the 1090 forms for all, including corporate payees, would have absolutely choked most small businesses. And woe be unto those who…
It is in the best interest of corporations (which are made of people like you and me) to relentlessly lobby the government to continue to make laws favorable to their existence at the expense of others including SMBs which could eventually threaten their business.
If I run a large bank it might be in my best interest to push for laws that mirror my company's current practices to make competitors play catch-up and to shut out upstarts.
Re: Just How Risky Is Entrepreneurship, Really?
#8Very risky: For the average founder, the expected utility of starting a VC funded company is around -$200k.
Re: Just How Risky Is Entrepreneurship, Really?
#9> "First, entrepreneurship is not riskier than working at a big bank or law firm, a fact vividly underscored by the de facto nationalization of the banking sector..." We might have to rewind the tape here - I think I must have slept through this part.
Yeah.
I'd say working for a big bank or law firm is much more stable (less risky in terms of job security/steady career trajectory), although less stable than other sectors.
On the other hand, it's also arguable that it's harder to go big if you're working at a bank or law firm (more risky in that you're less likely to be able to retire young, and not just because of your extravagant fatcat mcbankster lifestyle).
Re: Just How Risky Is Entrepreneurship, Really?
#10There is a flaw in this argument. First they say that 56% of companies started in 2004 were still in business in 2010. Then they reference the VC rule of thumb that 4 of 5 companies will flounder and dismiss VC companies as being "riskier". But then for their argument on making "real money" as an entrepreneur they reference the same VC companies that they already dismissed as being riskier and having a failure rate f…
> First they say that 56% of companies started in 2004 were still in business in 2010. Then they reference the VC rule of thumb that 4 of 5 companies will flounder and dismiss VC companies as being "riskier".
The fact that having VCs lowers your chance of success seems lost on them.
It is perhaps due to a conflict of interest: Harvard is invested in several VC funds.