

Despite the downturn, entrepreneurs are enjoying a renaissance the world over - HSO
http://www.economist.com/specialreports/displaystory.cfm?story_id=13216025

======
swombat
An excellent article on the whole - as is often the case with Economist
articles.

It kind of lacks a point, though. It's a shame that we only have the
introductory article. I'm sure the "special report" (which usually consists of
several articles) will have a lot more meaty recommendations.

Fortunately, I'm subscribed (it's the only magazine to which I subscribe) and
so I'll read it when it comes in the post tomorrow :-)

------
ungajava
When I voiced a positive opinion of the bad stock market, the people in my
office became outraged and I was ostracized and ridiculed for being Un-
American.

The bad stock market and bad economy in general are perfect for people in my
position who are just starting out and are looking for an opportunity.

~~~
jfornear
Sure, but it really sucks for a whole lot more people who are not just
starting out and have lost their retirement. I would be more sensitive about
that.

~~~
patio11
_have lost their retirement_

I would encourage people to not repeat things like this because they might
convince a fiscally illiterate person (i.e. most of the population) that it is
true.

If you had a million dollars in your IRA last year, you are highly likely to
have about $600,000 now. (This is if you had a portfolio 100% concentrated in
equities -- and if you did this close to retirement, well, there is no helping
you now is there.) If you were planning on a 4% withdraw rate ($40k) last
year, it is likely to remain safe currently: even with the 40% drawdown the
market has seen, historically at a 4% withdraw rate you are overwhelmingly
likely to die before your money runs out.

The worst case scenario for the typical investor is that they push back
retirement for a year or two, which has large effects on longevity.

The big threat to retirements isn't transient financial difficulties, however
disruptive they may be. The big threat is underfunding. This goes for pensions
and individual investors. Your IRA/401k is NOT an emergency fund or excuse to
go on a vacation between jobs, people.

~~~
jfornear
A million dollars? Over 50% of Americans have less than $25k in retirement
funds. Even 40% of ages 55+ have less than $25k... Obviously no one literally
_lost_ their retirement (as long as there's a penny in there, right?), but all
I was trying to say was that we should be sensitive about these things.

As young people with nothing to lose, we shouldn't be surprised to offend
someone with optimism in this environment.

~~~
patio11
_Even 40% of ages 55+ have less than $25k..._

I know. These folks have no more lost their retirement due to the financial
downturn than I have lost an aircraft carrier full of Swedish supermodels and
propelled by unicorns.

An inspection of my back pocket will not reveal that aircraft carrier, but
that doesn't mean I lost it.

Clearly if you've got $25k in your retirement account close to retirement,
whether it declines to $15k or explodes to $100k is immaterial to your
prospects of retiring: you're going to be almost wholly dependent on other
sources of income either way. (Social security, pensions, income from working,
familial support, etc.)

~~~
jfornear
> These folks have no more lost their retirement due to the financial downturn
> than I have lost an aircraft carrier full of Swedish supermodels and
> propelled by unicorns.

I LOL'ed. I think you are just taking what I said too literally. I get what
you mean, though.

------
jwb119
"The world’s greatest producer of entrepreneurs continues to be America."

It will be interesting to watch how/if this changes over time, specifically in
regard to the seemingly new attitude exhibited by the world community (i.e.
the indian example discussed in the article).

~~~
eru
Yes. Taking into account that Indian founders have less opportunity costs in
traditional companies and almost equal earnings potential in a startup, this
should be interesting.

------
nazgulnarsil
If america doesn't come around to the fact that our success is due to creating
a positive environment for entrepreneurs we will quickly (by historical
standards) go down the tubes.

------
rrival
"entrepreneurship ... “the pursuit of opportunity beyond the resources you
currently control”" - interesting

------
sarvesh
Had never heard of Joseph Schumpeter. Here is a paper
<http://swopec.hhs.se/iuiwop/papers/iuiwop0533.pdf> on how he was nearly
right. It explores the Swedish economy.

