An Entrepreneurial Mindset Hinders Wealth Building
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"Help Wanted: Entrepreneur."
You have probably never seen an ad like this, because entrepreneurs are not hired. They hire themselves. Merriam-Webster defines an entrepreneur as "a person who starts a business and is willing to risk loss in order to make money" or "one who organizes, manages, and assumes the risks of a business or enterprise."
God bless entrepreneurs. Without them our world would look much different. We would still be living in caves, hunting with clubs, and eating raw meat. They create companies from scratch. In so doing, they create jobs and take significant monetary risks of a business failure.
They also stand to gain substantial rewards for success, but that success is far from guaranteed. Few people realize that most entrepreneurs fail in their attempts in business. According to Investopedia, 50% of all new businesses fail in five years, 66% in 10 years, and 75% in 15 years.
Given those statistics, the entrepreneurs who succeed must be rich, right? A study by Career Explorer found that the average full-time salary of an entrepreneur is $43,240 a year. To put this into perspective, the average starting salary for a graduating four-year degree student at the South Dakota School of Mines and Technology is $63,354. Maybe there should be a song, "Mamas, don’t let your babies grow up to be entrepreneurs."