Entrepreneurs don’t have a special gene for risk—they come from families with money

theworldismine13

God Emperor of SOHH
Joined
May 4, 2012
Messages
22,621
Reputation
530
Daps
22,588
Reppin
Arrakis
Entrepreneurs don’t have a special gene for risk—they come from families with money
Entrepreneurs don't have a special gene for risk—they're rich kids with safety nets

We’re in an era of the cult of the entrepreneur. We analyze the Tory Burches and Evan Spiegels of the world looking for a magic formula or set of personality traits that lead to success. Entrepreneurship is on the rise, and more students coming out of business schools are choosing startup life over Wall Street.

But what often gets lost in these conversations is that the most common shared trait among entrepreneurs is access to financial capital—family money, an inheritance, or a pedigree and connections that allow for access to financial stability. While it seems that entrepreneurs tend to have an admirable penchant for risk, it’s usually that access to money which allows them to take risks.

And this is a key advantage: When basic needs are met, it’s easier to be creative; when you know you have a safety net, you are more willing to take risks. “Many other researchers have replicated the finding that entrepreneurship is more about cash than dash,” University of Warwick professor Andrew Oswald tells Quartz. “Genes probably matter, as in most things in life, but not much.”

University of California, Berkeley economists Ross Levine and Rona Rubenstein analyzed the shared traits of entrepreneurs in a 2013 paper, and found that most were white, male, and highly educated. “If one does not have money in the form of a family with money, the chances of becoming an entrepreneur drop quite a bit,” Levine tells Quartz.

New research out this week from the National Bureau of Economic Research (paywall) looked at risk-taking in the stock market and found that environmental factors (not genetic) most influenced behavior, pointing to the fact that risk tolerance is conditioned over time (dispelling the myth of an elusive “entrepreneurship gene“).

Resilience is undoubtably a necessary trait for success; many notable entrepreneurs experienced success only after leading failed ventures. But the barrier to entry is very high.

For creative professions, starting a new venture is the ultimate privilege. Many startup founders do not take a salary for some time. The average cost to launch a startup is around $30,000, according to the Kauffman Foundation. Data from the Global Entrepreneurship Monitor show that more than 80% of funding for new businesses comes from personal savings and friends and family.

“Following your dreams is dangerous,” a 31-year-old woman who runs in social entrepreneurship circles in New York, and asked not to be named, told Quartz. “This whole bulk of the population is being seduced into thinking that they can just go out and pursue their dream anytime, but it’s not true.”

So while yes, there’s certainly a lot of hard work that goes into building something, there’s also a lot of privilege involved—a factor that is often underestimated.
 

jilla82

Superstar
Joined
May 17, 2012
Messages
19,693
Reputation
-1,382
Daps
61,664
Reppin
the internet
its more to do with mindset than anything else.

People in rich families think big...they know what is possible.
...hell, people whose parents were middle class business owners think bigger.

This article really doesnt prove/say much.
Its just a cop out for those who dont think much of themselves.

for example...the paper that was quoted in this article only counts incorporated businesses...
...why?

There are tons of people making a lot of money in businesses that arent incorporated.
 

Bubba T

Superstar
Supporter
Joined
Jul 24, 2015
Messages
8,551
Reputation
2,569
Daps
54,690
its more to do with mindset than anything else.

People in rich families think big...they know what is possible.
...hell, people whose parents were middle class business owners think bigger.

This article really doesnt prove/say much.
Its just a cop out for those who dont think much of themselves.

for example...the paper that was quoted in this article only counts incorporated businesses...
...why?

There are tons of people making a lot of money in businesses that arent incorporated.

Well I would say that if you already have your basic needs met, you can focus your thoughts on other things, like entrepreneurial efforts.

It's not to say you can't make it without family money - people have done it and will continue to do it - it's more that rich kids have access to rich parents who not only provide them with capital to start their business, but provide them with their network of other rich people to also invest in their business.
 

jilla82

Superstar
Joined
May 17, 2012
Messages
19,693
Reputation
-1,382
Daps
61,664
Reppin
the internet
Well I would say that if you already have your basic needs met, you can focus your thoughts on other things, like entrepreneurial efforts.

It's not to say you can't make it without family money - people have done it and will continue to do it - it's more that rich kids have access to rich parents who not only provide them with capital to start their business, but provide them with their network of other rich people to also invest in their business.
I know plenty of rich kids that dont do anything w/ what they have.

I hate this narrative of "you have to be rich to make it" because all it does is hurt people who arent rich....especially black people.

It makes kids think its impossible to come up and get yours.
When, in actuality its more about having guts and the self esteem to put yourself out there...go through the rejection, and keep going.

The more affluent kids have a leg up because they know whats possible in life...and going for it is normalized.
If you never see people make real moves...its all foreign to you.

Its why so many black people go into social services...we think thats "giving back"...
...and we have so few focused on trying to get rich.

Ive known plenty of black families that have generations of Doctors/lawyers/professionals, etc....
...why?
because thats whats normalized in their family....its expected of them to go that route.

You grow up poor...whats expected of you?

This article is nothing but propaganda...they cite a paper that is focusing on people growing businesses that revolve around getting investors...
...thats a small fraction of whats really going on out here.

You want to know how to get investors? Go download Dan Pena's stuff...he talks specifically about that world.

All the information in the world is out there...the problem is we arent teaching our people to go after it...we spend too much time focusing on being victims...and worrying about what the world thinks about us.
 
Last edited:

Family Man

Banned
Joined
May 5, 2012
Messages
13,175
Reputation
2,037
Daps
54,971
This article is bullshyt sprinkled with a couple nuggets of truth here and there.
 

Bubba T

Superstar
Supporter
Joined
Jul 24, 2015
Messages
8,551
Reputation
2,569
Daps
54,690
I know plenty of rich kids that dont do anything w/ what they have.

I hate this narrative of "you have to be rich to make it" because all it does is hurt people who arent rich....especially black people.

It makes kids think its impossible to come up and get yours.
When, in actuality its more about having guts and the self esteem to put yourself out there...go through the rejection, and keep going.

The more affluent kids have a leg up because they know whats possible in life...and going for it is normalized.
If you never see people make real moves...its all foreign to you.

Its why so many black people go into social services...we think thats "giving back"...
...and we have so many focused on trying to get rich.

Ive known plenty of black families that have generations of Doctors/lawyers/professionals, etc....
...why?
because thats whats normalized in their family....its expected of them to go that route.

You grow up poor...whats expected of you?

This article is nothing but propaganda...they cite a paper that is focusing on people growing businesses that revolve around getting investors...
...thats a small fraction of whats really going on out here.

You want to know how to get investors? Go download Dan Pena's stuff...he talks specifically about that world.

All the information in the world is out there...the problem is we arent teaching our people to go after it...we spend too much time focusing on being victims...and worrying about what the world thinks about us.

I don't disagree with anything you are saying.

It seems to go back to the family dynamic and education, like many things.
 

jilla82

Superstar
Joined
May 17, 2012
Messages
19,693
Reputation
-1,382
Daps
61,664
Reppin
the internet
I don't disagree with anything you are saying.

It seems to go back to the family dynamic and education, like many things.
this is something im kind of passionate about.

In the future I want to work with kids in the city to teach them how to get money.
I think if more black people were focused on this, we would all be better.

My dad was a dentist because there was a black dentist in his neighborhood that he would always walk pass.
Meanwhile...my grandfather was a drunk that told my pops he wouldnt do shyt with his life.

A lot of black people have plenty of people telling them they wont be shyt...
...but few have examples of black professionals/entrepreneurs
 

rapbeats

Superstar
Joined
Jun 8, 2012
Messages
9,363
Reputation
1,890
Daps
12,849
Reppin
NULL
its more to do with mindset than anything else.

People in rich families think big...they know what is possible.
...hell, people whose parents were middle class business owners think bigger.

This article really doesnt prove/say much.
Its just a cop out for those who dont think much of themselves.

for example...the paper that was quoted in this article only counts incorporated businesses...
...why?

There are tons of people making a lot of money in businesses that arent incorporated.
NO. go back to the op's article.
It's mostly about Money.
Not mentality first.

Money gives you the ability to have said mentality.

MONEY First, mentality second.

You can try to have that mentality and you're broke and see where that gets you.


You can take all the risks you want to get your startup going. but dont have that 30k old girl was talking about from family/friends and your own personal to get it started. and see how far you go with your risks. what are you going to risk? you're to broke to own a home and take out a 2nd/3rd on your home. if you're real broke and black. odds are your house aint going up in value if you live close to other black folks(sad, but real in most areas.) so therefore you can't get but so much excess on the house even if you have one.

so thats out. how you gone get that doe if you just live in apartment? ya mama is broke, she can't hit you with much. pops wasnt around and he dont have much even if he was. he can't help. your sister is late on rent again. she needs help. your bro just got out of jail. he needs a place to stay. and you working a basic 9 to 5 job barely making rent yourself.

so explain how are you going to get that 30k or so to get that startup popping? in reality. you aint. for the most part. this is what i've been telling yall. These american dreams that we're are being sold are doing more harm than helping us. only a select few can slip thru the cracks that dont come from money. and only that top top top come from money like that.

So most people that purse these fake dreams never make it. and its not for not trying or a lack of hardwork/intelligence. its not about that. its about the DOE. you need it as seed money up front in the beginning. So this means the rest of us need to go to work everyday to make a living. maybe you can move up eve
 

rapbeats

Superstar
Joined
Jun 8, 2012
Messages
9,363
Reputation
1,890
Daps
12,849
Reppin
NULL
I know plenty of rich kids that dont do anything w/ what they have.

I hate this narrative of "you have to be rich to make it" because all it does is hurt people who arent rich....especially black people.

It makes kids think its impossible to come up and get yours.
When, in actuality its more about having guts and the self esteem to put yourself out there...go through the rejection, and keep going.

The more affluent kids have a leg up because they know whats possible in life...and going for it is normalized.
If you never see people make real moves...its all foreign to you.

Its why so many black people go into social services...we think thats "giving back"...
...and we have so few focused on trying to get rich.

Ive known plenty of black families that have generations of Doctors/lawyers/professionals, etc....
...why?
because thats whats normalized in their family....its expected of them to go that route.

You grow up poor...whats expected of you?

This article is nothing but propaganda...they cite a paper that is focusing on people growing businesses that revolve around getting investors...
...thats a small fraction of whats really going on out here.

You want to know how to get investors? Go download Dan Pena's stuff...he talks specifically about that world.

All the information in the world is out there...the problem is we arent teaching our people to go after it...we spend too much time focusing on being victims...and worrying about what the world thinks about us.
actually you're wrong about that bolded part.

way wrong. do you know how many black men in particular are trying to get rich? Thru music, sports, slangin, stealing, selling multiple stolen products, 5 links(add on your favorite pyramid scheme nonsense here), etc. etc. etc


Let me explain to you what this article is about and why blacks especially need to listen. we are sold LIES. STOP LYING to people. yes you can do a lot of things if you put your mind to it. but no you can't do ANYTHING. thats a hot damn lie. stop saying it to your kids. Tell your kids the truth. "little jay, look. your daddy makes 28k per year and your mama makes about the same. we dont have college degrees, we dont have any IT certs, and we dont have any licenses to be plumbers or contractors. ... So listen up little Jay. If you want to be better than your parents. you will either need to go the school college route and get degreed up in something thats lucrative, or certed up in something thats lucractive or licensed/trained in something where you work with your hands. This is the highest probability of having more money that both of your parents. if you play your cards right and you catch some breaks/stay ready. You may end up owning your own little business. thats just enough to keep you from having to work for someone. but you wont strike it rich with your business. you will earn enough to keep it going and a little extra. now if everything hits just perfectly and your industry has a big boom. You just might be able to expand. then you can make some good money. still not rich. but good enough to put your kids in a situation where they can one day possibly take over your business. expand on it. and possibly get rich after a long time working that angle and then some. little jay, this is the truth and anything else you hear about dreams isnt fake. but its so far out of the high probability its pretty much a waste of your life trying to get rich when we already know theirs a super high percent of the rich people that were already rich before they ever started a business. the rich get richer. the poor usually do not get richer unless they have some type of INSANE talent that separates them from everyone. are you mike jordan? NO. are you mike jackson? hell no. are you jayz? Hell no, are you nino brown? NOPE. are you a black bill gates? Nope. you're a somewhat smart kid, you can rap a little bit. you got some hoop skills. but you aint Kevin durant and you're surely not 6'10 with crazy athletic ability and a mean jumper. you're 6'1 with a little hops. So now we know what you are. time to be realistic. get what you can get with the highest probability of success. ignore the other bs. sincerely your father kicking real life truth knowledge.."
 
Top