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Many of the world's richest people say they started out with nothing, but the reality is often a little different. If you look closely, you'll find that many of today's millionaires and billionaires actually received significant financial support from their families when starting their businesses. Sure, they may have faced some difficulties and challenges along the way.
However, the idea of a “self-made” entrepreneur is often more myth than truth. This is what many rich people really mean when they say they started out poor.
The starting capital for the super wealthy
Take Amazon founder Jeff Bezos, for example. He is often held up as the quintessential “self-made” success story. But the truth is that his parents Jacquelyn and Miguel gave Bezos about $250,000 to launch Amazon in 1995. Bezos himself admitted there was a 70% chance he would lose all that money.
Microsoft co-founder Bill Gates also comes from a wealthy family. His mother, Mary, was well connected in the Seattle business world and provided much help and resources to get Microsoft off the ground.
Even Warren Buffett, the famous “Oracle of Omaha,” had a huge head start. His father was a member of Congress and also a broker and trader, so when Buffett started investing at a young age, he made big profits.
And even though Facebook's Mark Zuckerberg isn't super wealthy, he still had to attend the prestigious Exeter Preparatory School, which costs more than $50,000 a year. These educational advantages set him on a path that would eventually lead to the creation of the social media giant.
starting capital privileges
These examples show that for many ultra-rich people, “started out poor” is a relative term. Even if they didn't grow up in luxury, they still had access to far more startup capital than the average person. This speaks to the great privilege of being able to take risks as an entrepreneur and build a successful business.
Access to networks and opportunities
Wealthy families often have extensive professional and social networks that open doors for their children. Access to influential people, mentors, and business opportunities are essential to entrepreneurial success, but are out of reach for those without these connections. The “old boys club” mentality still plays a large role in helping the super-rich maintain their status.
starting point for the average person
In fact, most entrepreneurs without family wealth have to build their businesses from scratch. To get started, you may need to take out a loan, max out your credit card, or resort to crowdfunding. That puts a greater burden of risk and uncertainty on their shoulders than someone with access to mom or dad's checking account.
The myth of “pulling yourself up by your bootstraps”
“Do-it-yourself” stories rely heavily on the idea that anyone can succeed through hard work alone. Unfortunately, this self-capitalist mindset ignores the huge systemic advantages and barriers that determine who succeeds and who fails.
Changing the meaning of “homemade”
The myth of the “self-made” billionaire hides the fact that true entrepreneurial success is often built on a foundation of privilege and resources. When looking at stories of the super-rich, let's keep this context in mind and reconsider what it actually means to be “self-made.”
Redefining entrepreneurial success
Given that many wealthy entrepreneurs have had such a head start, we may need to reframe our definition of success. Instead of celebrating those who “started with nothing,” we can focus on supporting and celebrating small businesses that survive and thrive without the help of their families.
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