Why dont more people start companies?IB
Andy note: Best of WSO - this post originally went up October 2009 and we thought it deserved to go back on the homepage for those who may have never seen it.
Hey guys, so I have a simple yet important question: why is it that so few students from elite schools start their own companies right after graduation?
The richest kids at my Ivy school have parents who own their own companies. It seems like most people with a net worth greater than 10 mil own companies (is this accurate?)
So, then, why is it that the best and brightest students choose to become employees? A shockingly low percentage of HBS grads start companies at graduation, and even fewer do from undergrad schools like Wharton.
Please tell me guys, what am I missing? why is everyone so obsessed with even getting a job to begin with. Am I wrong that business owners make the most money? is it herd mentality? Is it pure risk aversion? Is it that everyone actually thinks doing 100 hours/week of powerpoint may help then start something later on in life?
Why make a million/year at Goldman Sachs when you can make exponentially more money doing something as stupid as running a garbage company????