America's Dangerous Obsession with Entrepreneurship

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Edited By: Andrew Gonzales

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I don’t need to tell you about all of the problems with celebrity culture, but America has a more damaging obsession that most people instinctively root for.

Entrepreneur culture is costing everybody a lot of money even if they never start a business of their own.

Last year Americans started five MILLION new businesses a forty two percent [42%] increase from pre pandemic levels. Despite job market uncertainties and rising interest rates, more people than ever believe that now is the right time to start a business.

The pressure from online though leaders has pushed the narrative that trying to start a business has never been easier, never been more profitable and even if you fail you will be right back to where you started anyway. In a survey conducted by the HR and payroll platform Gusto, one thousand six hundred [1,600] new entrepreneurs were questioned about their motivation for starting a business. Being burned out at work and feeling the pain of inflation were the top responses. This is a dangerous trend that will leave most new business owners worse off than when they started, but entrepreneurship is still promoted as something that is a responsible way to fix these problems. Unsurprisingly that’s causing three big issues that will be costing you money, even if you aren’t personally on your hashtag grindset yet, and there are two reasons why it’s becoming more popular every year.

The first problem is that most people simply suck at business. The largest demographic increase in new business owners was young people between eighteen and thirty-five. According to a study by the Harvard Business Review using U.S. Census Bureau data the average age of a SUCCESFUL start-up founder at the time of LAUNCHING their company was FORTY-TWO [42] years old. Founders below the age of thirty had a significantly higher rate of failure and yet the top google suggestion below this article was “is it too late to start a business after thirty?”. A founder’s experience and industry connections will play a big part in a new businesses success. Between one in five to one in three start-ups fail within the first year but there are some businesses started by people with decades of industry experience that are almost guaranteed to be successful.

A well-respected expert with a long list of clients that they can bring into their new business on day one will have a much higher likelihood of success than someone who started a business because they wanted to be their own boss and make a lot of money. Experts going into business for themselves to provide a service in a field they have worked in for decades represent a significant percentage of new businesses, so that means the people that just want to be businesspeople doing business things are going to have even worse odds. Businesses in trendy fields like tech, ecommerce, hospitality and fashion have a significantly higher failure rate than finance, construction and healthcare where business owners are required to have industry experience and accreditations before they are even allowed to start operating. But if you are thinking about starting a business you probably already know the failure rate and you are still willing to give it a go either because you DO have a solid business plan, or because every piece of media has told you how amazing business owners are.

What you might not know, is why it’s so important that you think this way…

So, it’s time to learn How Money Works to find out why most people shouldn’t be entrepreneurs even when everybody says it’s the greatest thing ever.