How Much Does an Entrepreneur Make in the US?

noun, plural entrepreneurs [ahn-truh-pruh-nurz, -noo rz; French ahn-truh-pruh-nœr]
a person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk.
an employer of productive labor; contractor. __

Note that entrepreneurs assume the risk of starting a business, and of employing productive workers.

Entrepreneur Earnings by Seniority

Experienced Entrepreneur Earnings

Experienced Entrepreneurs in the United States earn:

an hour
per year
Junior Entrepreneur Earnings

Junior Entrepreneurs in the United States earn:

an hour
per year
Starting Entrepreneur Earnings

Starting Entrepreneurs in the United States earn:

an hour
per year

Approximate values based on highest and lowest earning segments.

__ Entrepreneur Salary

There are no university degree requirements for entrepreneurs as a rule, and no particular IQ requirements — as long as the entrepreneur is able to attract the talent necessary for his company to produce the goods or perform the services to the market’s satisfaction.

Compare the above averages for independent entrepreneurs with incomes from some of the most common “jobs” in the US:

Salaried and Wage Occupational Incomes

Salaried and Wage Occupational Incomes

For many of the above occupations, advanced degrees requiring high IQs tend to limit entry into the fields.

Persons employed in the table categories above typically did not start their own businesses, did not assume the risks of the business, do not employ productive workers on their own, and do not generally have ownership of the business, except perhaps for stock options and independent investment.

Most Wealthy People in the US Achieved Wealth via Business

In opportunity societies, markets rule. As long as governments protect contracts, rights of ownership, and rule of law in general, the most dependable path to wealth for independent thinking, ambitious persons of all IQ levels and all educational levels is via the marketplace.

__ “The Forbes 400 of today also are those who were able to access education while young and apply their skills to the most scalable industries: technology, finance, and mass retail,” Rauh and Kaplan write in their most recent study, “Family, Education, and Sources of Wealth Among the Richest Americans, 1982-2012.”

The explosion of information technology has created an entirely new class of the very rich, many of them self-made. __

But we are not just looking at the top 400 wealthiest, as in the article above. We are looking at wealth in general, and the ability to create economic security on one’s own based upon one’s own wits and energy — regardless of IQ or academic degree. For that type of success, which is available to far more people in opportunity societies, the executive functions of the pre-frontal lobes reign supreme.

Innovations leading to patents, business startups, trade secrets, and a significant employment base, typically come about in nations that protect property rights and pay more than lip service to rule of law.

In patronage societies, wealth and position are acquired via connections in government and in government-protected institutions. Rule of law is often less important, and corruption and nepotism tend to be a prominent path to riches. Certainly such is the case in member nations and associates of the League, such as China, North Korea, Iran, Syria, Africa and most of the third world, Russia, etc.

Time to Focus on the Important Aspects of Child Raising at the Proper Times

Having good genes is important for both high IQ and high executive functions. But proper training at the proper time tends to make all the difference for the particular child’s future life trajectory. If the child is taught self-control, persistence, self-discipline, basic money management etc. at the same time as he learns to walk, talk, socialize, and understand simple concepts of cause and effect, he can move on to the more complex and intricate challenges with a better foundation.

Child brain development goes through critical periods where the different parts of the brain mature and develop their connections to other parts of the brain. If Child training takes advantage of these critical periods to build a more self-disciplined, self-directed character, the older child is more likely to be able to adopt a level of independence which will allow him to step out on his own — based upon the broad range of skills and competencies which his caretakers wisely made sure that he learnt in his childhood.

Modern Deferral of Most Formal Learning and Life Skills Until College Age Cannot Build (or Sustain) a Successful Society

The modern, prosperous, advanced societies which one can see today, were not built by the typical child and typical university graduate of today. Forget about the largely sub-par floods of immigrants pouring into Europe and the Anglosphere. The children and youth of modern societies themselves were raised and educated in such a way that they will be unable to sustain their own cultures and societies.

No amount of complaining about immigrants can change the sadly salient fact that our societies have failed to prepare the up and coming generations for the challenges they will face. Not everyone can be a Dangerous Child, of course. The level of dedication required to raise a Dangerous Child is above and beyond what most modern parents believe should be asked of them. But society could be structured in ways — often 180 degrees the opposite of existing structures — to make it easier to raise strong and independent new generations. Expanding junior high school and high school – level training in the trades would give many budding young entrepreneurs of the non-nerd, non-intellectual type a leg up.

Inertia, and corruption of existing institutions block the necessary changes via traditional political and civil society pathways.

And so, as always, it is up to those who can see what is happening and who are willing to assume the responsibilities and the risks to bring about something different, something better. The challenge calls for more than the typical salary man or wage slave of whatever career or occupation. It calls for entrepreneurs in the truest and largest sense of the word.

For those who are new to the idea: Entrepreneurship is as much or more a skill set than an actual career description.

More on Why Opportunity is Scarce in League States

Why Russia Chose Corruption Over Markets

The Russian economy has been and remains essentially as described by Gaddy and Ickes, one based on rents from natural resources subject to bestowal by the Kremlin.

Russia today is in a condition of latent anarchy, held in check by personalized and arbitrary dominance from the Kremlin. The wealth that came to Russia as the oil price rose, at least until 2008, encouraged the comforting illusion in the West that Russia was on a path, however rocky, leading toward some form of convergence with European norms. But in truth there were warning signs from the very beginning of Putin’s rule that centralization and the personalization of power were to be the increasingly dominant strains. His association with corruption and criminal circles as Deputy Mayor in St. Petersburg was the precursor of his unacknowledged use of similar forces today, in Russia, Ukraine, and beyond. The brutality of the assault on Chechnya he initiated as Yeltsin’s Prime Minister foreshadowed Russia’s onslaught in Syria today. The vicious treatment of an inconvenient Russian journalist reporting the truth of what was happening in Chechnya in late 1999 and early 2000 was a clear sign of the virtual elimination of the independent press that was to come. Regional Governors and hitherto independent business figures were taught their dependent place more gradually, but it did not take much to warn them of what was coming. They had after all known what it was to live in the Soviet Union, and had bent the rules in their own interests while securing their local power or building up their business positions. The judiciary had always deferred to the interests of the powerful.

The authoritarian current has by now overwhelmed the possibility of gradual evolution toward a more liberal system on Putin’s watch. It is in the nature of the present regime that the personalized authoritarian current should be self-reinforcing. It results from and over time builds itself up by reason of the regime’s priority interest, to preserve itself. The pursuit of short-term stability at the top as a primary aim of policy is to increase the risks of longer-term instability, and hence the need to buttress central control. __ The Hollow Men in Power

The spirit of hyper-central control starves and suffocates all thought of individual opportunity. Russians accept serfdom as Kremlin insiders accept lordship — easily and naturally.

China has likewise reverted to a hyper-centralism and hyper-militarism that bodes ill for the Chinese people over the next decades. As in Russia, fear and paranoia rule, leaving no room for allowing opportunities to individuals.

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3 Responses to How Much Does an Entrepreneur Make in the US?

  1. “There are no university degree requirements for entrepreneurs as a rule, and no particular IQ requirements”
    Entreprenurs is a vacuous term, it’s not the same thing to be a guy who starts a tech company than being a guy starting a hole in the wall restaurant. There are significant educational and IQ requirements for the first option. Plus, there’s always a need for some form of initial capital to start your own business, you need to at least buy tools and equipment plus getting all the required permits/licenses, etc.

    Also, those earning statistics for entrepreneurs are spurious, they do not take into account the survivorship bias effect; most entrepreneurs/small businesses fail within a few years of their founding and its owners/founders have to go back to being employees.
    After 15 years, +- 75% of companies in the USA fail and that number hasn’t changed in decades.

    • alfin2101 says:

      The statistics are averages, which take into account failed enterprises. Failed enterprises are an integral part of economic evolution within an opportunity society. A true market economy evolves much like a biological ecosystem, with multiple dead-ends and multiple successful branches of various degree.

      Entrepreneurs are by definition a very broad class, just as “employee” is a very broad class. It is much better to focus on the relevant aspects of a discussion, rather than flailing about to find something to criticise, which in the end is quite beside the ultimate point.

      Dropout Billionaires

      US added 300,000 new millionaires in 2015 The most likely path to wealth is via entrepreneurship — across an incredibly broad range of fields. At least in an opportunity society — not in a corrupt League nation, of course.

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