"Most entrepreneurs head right for the worst industries for start-ups. The correlation between the number of entrepreneurs starting businesses in an industry and the number of companies failing in the industry is 0.77. That means that most entrepreneurs are picking industries in which they are most likely to fail."
What kind of wonky logic is that? I think that perhaps a simpler explanation, is that most new companies tend to fail.
In any case, to make the argument that he's trying to make, he would have to compare failure rates and not absolute numbers.
He's not talking about startups in the sense we mean here, but in the broader sense of newly created companies. I.e. auto body shops, cafes, landscaping services.
"And the typical entrepreneur earns less money than he otherwise would have earned working for someone else."
Money is equally important, right? Then why establish a fulltime startup/sel-owned-business if it will pay less than a fulltime job? Can't base it solely on "personal satisfaction of work".
Why not? I personally get very depressed when I am unhappy at work. Or, as I used to tell myself, if money was all I cared about, I would probably be a real estate broker or selling insurances.
Whenever I read these kind of lists complete with data, I immediately invert every assertion and think of an example of an inversion (or, think of a counterexample for every assertion ...)
What kind of wonky logic is that? I think that perhaps a simpler explanation, is that most new companies tend to fail.
In any case, to make the argument that he's trying to make, he would have to compare failure rates and not absolute numbers.