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Entrepreneurs

Entrepreneurs come from families with money

By
Benjamin Snyder
Benjamin Snyder
Managing Editor
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By
Benjamin Snyder
Benjamin Snyder
Managing Editor
Down Arrow Button Icon
July 17, 2015, 4:53 PM ET
171450900
Being a great entrepreneur doesn't happen overnight.Photograph by Getty Images

The secret sauce to being a successful entrepreneur is apparently coming from a family with money. Quartz reported that when a person has more cash on hand, they’re able to take the risks needed to kickstart a business.

“Many other researchers have replicated the finding that entrepreneurship is more about cash than dash,” according to Andrew Oswald, a University of Warwick professor, in an interview with Quartz. “Genes probably matter, as in most things in life, but not much.”

A 2013 research paper cited by the publication also found that shared traits among entrepreneurs included being white, male and well-educated. “If one does not have money in the form of a family with money, the chances of becoming an entrepreneur drop quite a bit,” according to Ross Levine, one of the economists who wrote the study, to Quartz.

Per the article:

The average cost to launch a startup is around $30,000, according to the Kauffman Foundation. Data from the Global Entrepreneurship Monitor show that more than 80% of funding for new businesses comes from personal savings and friends and family.

For more on entrepreneurship, here are 10 quotes from Shark Tank’s “Mr. Wonderful,” Kevin O’Leary, on the subject.

About the Author
By Benjamin SnyderManaging Editor
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Benjamin Snyder is Fortune's managing editor, leading operations for the newsroom.

Prior to rejoining Fortune, he was a managing editor at Business Insider and has worked as an editor for Bloomberg, LinkedIn and CNBC, covering leadership stories, sports business, careers and business news. He started his career as a breaking news reporter at Fortune in 2014.

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