Various studies have shown that the most straightforward way to become wealthy in the United States is by establishing a business. Given this background, you’d expect majority of the people to be entrepreneurs. But the reality is different: as we see a scenario where majority of Americans have opted to become employees – in spite of the fact that the chances of them becoming wealthy through their salaries are very slim. The question naturally comes up as to why this is the case: that is, why is it that majority of Americans opt to become employees, in spite of the better prospects for success that lie in entrepreneurship.
My analysis has revealed that there are several reasons as to why majority of Americans opt to become employees.
First is the fact that it is ‘simply simpler’ to look for a job. The path of entrepreneurship is a hard one. You have to come up with a solid business idea. You have to look for money to back up the idea. You have to take huge risks… On the other hand, being an employee is usually just a question of reporting to a work station by 9 and leaving by 5. Easy Queasy.
Second is the fact that getting the capital required to start a business is not easy. There are those who argue that the financial system is rigged, and that it is very hard for the ‘average person’ to access the finances necessary to fund a business. Maybe that is true. Maybe that is not true. But we all accept that trying to get capital for a business is hard. It can take five years’ savings to get enough money to fund even the most basic of businesses…
Third is the fact that many lack ambition. They are content to be employees. Many of the people you see are just satisfied to have nice food to eat, decent clothes to wear, a warm place to sleep — and may be a vacation once a year. Very few people actually have the ambition to be billionaires or even millionaires. Yet it takes real ambition to launch into the challenging world of entrepreneurship.
Fourth is the fact that our educational system prepares people for the employment path, rather than preparing them for the entrepreneurial path. And this may be just as well, because the economy can only sustain so many business-people. There has to be business owners, and then there has to be people to work for those business owners: the employees. Surely everybody can’t be an employer. There has to be employers. Then there has to be employees. The designers of our educational system were probably aware of this reality, hence the scenario where the educational system prepares the majority to be employees of the minority.