
Are Today’s ‘Entrepreneurs’ Actually the Unemployed? - robg
http://www.nytimes.com/2010/06/02/opinion/02reich.html?pagewanted=all
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patio11
Although my separation from my company was voluntary, they suggested they
might be amenable to hiring me as a contractor, for lower pay and longer hours
than before. As, you know, a favor to me.

That was a brief conversation.

~~~
dkersten
My own (voluntary) separation from my employer was similar, except normal
hours (for short 1 to 6 week periods) and negotiable pay. Of course, so far,
they haven't actually contacted me about any work, so in the end, we're in the
same boat :)

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tibbon
I know far too many 'entrepreneurs' in their 20's who are basically just
unemployed (or unemployable because they won't take anything except a top
level job) trust-fund kids. They never had a successful startup that they
cashed out of, but rather just an inheritance or trust that their parents
bestowed on them. They have big ideas, but little for execution.

There's a reason that wealth doesn't last multiple generations in the US.

~~~
_delirium
Is the last part really true? If you look at wealthy U.S. industrialists of
the late 19th century, many of them now have 4th or 5th-generation descendants
who are still wealthy-- Rockefellers, Vanderbilts, Mellons, etc.

~~~
maukdaddy
Those are the exceptions, not the norms. OP is correct, most 2nd or 3rd
generation trust fund kids end up blowing the family fortunes. No, I don't
have any citations :p

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adammichaelc
There's a book called "The Millionaire Next Door" that gives all the citations
you could ask for on this topic. It basically corroborates what you're saying
-- wealth usually doesn't last past the 2nd generation.

Link: [http://www.amazon.com/Millionaire-Next-Door-Thomas-
Stanley/d...](http://www.amazon.com/Millionaire-Next-Door-Thomas-
Stanley/dp/0671015206)

~~~
billpaetzke
Yep. And this book is an excellent read and resource to have. It is saturated
with great observations and solid data. Highly recommend it.

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wheaties
Insightful but I totally disagree with the government providing yet another
tax-payer sponsored program to ensure that people who were earning an income
at one bracket will earn that same amount while working another job,
regardless of choice. All we need are more entitlement programs or maybe a
government sponsored 2 extra months of pay. We're just not close enough to
Greece.

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fortes
_For starters, they could use what might be called “earnings insurance” that
would pay for up to two years part of the difference between what they earned
on the old job and what they earn now on their own. Employed workers would
contribute to the insurance fund through their payroll taxes, as they do with
unemployment insurance, but the total bill for benefits would be unlikely to
rise because earnings insurance would get them back to work quicker and
thereby reduce the number of weeks they relied on unemployment benefits._

Wow, what a terrible, terrible idea.

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soundlab
I got the impression that Reich's article was more about the reporting of
labor statistics than people working as temps going around claiming to be
entrepreneurs. Economist semantics really without much actionable insight IMO

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eande
The article summarizes with one unemployment number an overall characteristic.
The reporters conclusion is to simplistic and I don’t agree with the
observation.

Sure the increased number of unemployed contributes to the increased level of
startup, but that might not be all the reason. Why are there so many 35-44
starting their own business? Not because the majority got laid off, but rather
they lost the trust to corporate and know major changes will come. Too many
have seen with downturns what can and often will happen to people with
advanced age level.

If you fall into that position you have some serious problem, because the
severance package for 10,15, 20 or more years of service is not a real help.
It helps out a couple of months, but than what. What do you have? I am one of
early 40 pool and decided not to wait, but rather take action.

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d4nt
This strikes me as a very good thing. Yes, many of them will fail but they'll
learn a huge amount in the process and make themselves more employable at the
end of it all. Others will succeed of course. Meanwhile, the state isn't so
many economically inactive people.

~~~
JoachimSchipper
With respect to "more employable", consider
<http://news.ycombinator.com/item?id=1287110> and similar screeds against
people not holding long-term steady jobs.

It's better than being unemployed, but may still "count against" people in the
future. (Note that this does not mean I agree with such assessments, and also
note that there is a difference between a startup and hand-to-mouth
freelancing.)

EDIT: The second paragraph previously just said "It's better than being
unemployed, but not all that much." Replaced with the above.

~~~
robryan
Depends on industry I guess, if a company didn't want to hire me because I'd
spent a couple of years founding (and programming) a startup then I wouldn't
want to work there.

I think one of the great things about programming is that there is always a
way to make a living. Can always start a startup or freelance.

~~~
timwiseman
I agree with what you are saying. Someone who spent years trying to build a
real startup and working hard at it would likely make a fine employee if they
failed (and have no need to work if they didn't want to if they succeeded in a
big way).

But that is not what this article is about. Most the entrepreneurs they are
talking about are not startup founders in the sense you mean. They are not
trying to build the next big thing. They are instead working as individual
contractors at poor pay (compared to what they had before at least) soley
because they cannot get full time work.

While I do not necessarily think this should be held against them, especially
not with the way the global economy has been lately, this is still a very
different situation than being a startup founder trying to build something
brand new.

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tjmaxal
This really throws some light on how misleading "unemployment" numbers really
are. There are an increasing number of underemployed Americans who are
sometimes worse of than the unemployed because they are not eligible for
unemployment benefits

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robgough
Is "George" a typical example? How many contractors work for less than what
they were on when they were salaried? (even after the agency takes their cut).

~~~
starkfist
Although the myth of the super-contrator is popular, in my experience most
contractors are glorified temp labor with poor to average hourly rates.

~~~
jasonkester
Please stop believing this. Every time you accept a job for temp wages, it
creates another unrealistic employer that the rest of us have to explain the
concept of "contracting" to.

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csomar
I'll work as a "self-employed" and earn whatever my work make me earn and not
go for a full time job with annoying co-workers and under a boss. I may
consider working for a big corporation if it's worth the shot (fun, money,
experience).

This may be the reason why Americans are heading towards "self-employment".
Freedom is priceless.

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known
Employment is to survive in life. Entrepreneurship is to succeed in life.

