K. asked in Business & FinanceSmall Business · 3 weeks ago

Are startup founders from disadvantaged backgrounds the rule or the exception?

I was wondering what proportion of startup founders started poor, and couldn t find precise data regarding the subject.

It is clearly possible to start a business regardless of your social status. My question is how one s social standing may affect one s chances of success in creating a business.

Thanks in advance!

3 Answers

  • jim c
    Lv 4
    3 weeks ago
    Favorite Answer

    The vast majority of startups are started by middle class and lower in social status.

    The local restaurant, dry cleaner, print shop, car washes and on and on.

    People get too caught up in the fortune 500 numbers and VC funded startups, and it's deceptive.

    The vast majority of Americans work for small and medium size local businesses by far. It's still mostly controlled by individual businesses for the most part , and the people who start them are not decided by social status.

    If you look at it from a psychological standpoint, the people who launch business have a few personality traits that push them in that direction. They are industrious, conscientious, and driven to work long hours to meet their goals.

    I came from a poor family, and I own several businesses. My brother is a junkie.

    Personality traits.

    If it were not personality traits, then my brother and I would have a similar life outcome based on social theories.

    It's not social theories that make the person, it's their attitude and traits found in modern psychology, and it's measurable and proven.

    The last part is IQ. You can have the most motivated person in the world, but if they lack the intelligence to notice their mistakes, they are doomed because the smarter competitor will end the lower IQ business owner out almost every time. This is also proven in psychology.

    To make this more simple. If an idiot want's to start a business, they will likely fail because if you motivate them, all you have is a motivated idiot running around with their hair on fire.

    This is why over 90% of new startups fail in the first two years.

  • 3 weeks ago

    they would be the exception

  • Anonymous
    3 weeks ago

    Lots of people start poor. Lots fail regardless.

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