Hard Work Is Not All It Takes
The largest and most successful institutions throughout the world have had some form of government subsidy; however, America has deflected the scrutiny of how its policies create an unleveled playing field by shifting the responsibility for success solely on the individual trying to succeed.
Unfortunately, motivation, hard work, and perseverance aren’t attributes that are quantifiably measured. They also aren’t attributes that CAUSE economic prosperity. Sure, they may have a CORRELATIVE relationship, but definitely not a causal one. However, 10 factors are both measurable and quantifiable, and they have a direct link to economic prosperity. Below are the following factors:
2.High personal debt
5.Solely dependent on the strength or weakness (inflation) of one currency (no hedge against the currency of your home country)
6.Lack of protection against banking collapses because all of your accounts are in one bank in one country; typically your home country. This is especially problematic if your home country is a poor banking jurisdiction like the United States.
7.Lack of protection against capital controls; this is when a bank chooses to seize or freeze your assets
8.Lack of protection against the personal lawsuits and government-sanctioned seizures like civil forfeiture
9.Lack of protection against natural disasters and other personal crisis
10. Lack of protection against people controls; this is when you only have one passport and a government can restrict your movement to other countries.
Koindanomics’ publications aim at addressing each of the above factors and demonstrate unconventional ways to achieve them. Article 5 of this publication will address personal debt, but let’s continue examining the myth that hard work is all it takes.
So, let’s unveil some details that the media leaves out about entrepreneurial golden boys—you know, the guys that grew their fortunes with humble beginnings. They started their businesses from their college dorms, garages, or co-living spaces. These golden boys include Mark Zuckerberg, Bill Gates, and Jeﬀ Bezos.
Bill Gates. The sensationalized version of the Gates story is that he started his company from his dorm room.
Here’s what the media and gurus leave out. Although Bill Gates was hardworking, his family enrolled him into an expensive private school that had rare, state-of-the-art computers to which the average child would not have access. So, Bill Gates had thousands of programming experience and already sold software that ran on personal computers before he enrolled in college With previous market testing, Gates and his partner had already founded Microsoft by the time he was enrolled in college. Gates didn’t oﬃcially drop out, he simply failed out of college due to the growth and success of Microsoft; however, if Microsoft failed, Gates always had the option to return to his Ivy -League education, with his parent’s footing the bill.
Mark Zuckerberg. The sensationalized version of the Zuckerberg story is that he started his company from his co-living space.
Here’s what the media and the gurus leave out. In addition to paying Zuckerberg’s tuition at Harvard University, his parents gave him working capital in exchange for shares of Facebook. They are now billionaires, along with their son. Jeﬀ Bezos. The sensationalized story of Jeﬀ Bezos is that he started Amazon from a garage. The media and the gurus leave out that Jeﬀ ’s parents, Mike and Jackie Bezos, gave him $245,573.00 in exchange for shares in Amazon. Those shares are now worth $30 billion. Bezo’s’ expansioncontinued because he received Wall Street backing and, billions of dollars in tax-payer- funded subsidies. He also pays his lowest-level employees salaries of 11%-17% below market value.
Typically, entrepreneurship is to recycle an ever-expanding circuit of wealth of white players. They are typically given a competitive advantage because the previous generation’s wealth can aﬀord them opportunities to continue the cycle of wealth, as it is designed. Let’s compare this with the statistics of the overwhelming majority of businesses owners who fail, particularly those who come from marginalized communities, due to under-capitalization, lack of market access, theft, or destruction of assets.
According to the U.S. Census Bureau’s Survey of Business
• 90% of Black-owned or Latino-owned businesses do not have one employee other than the business owner.
• 97% of Black-female-owned companies do not have one employee other than the business owner According to reports prepared for the Center for Global
• 67.3% of businesses without employees had annual sales of less than $25,000 per year.
If this is the only source of income, then it is not enough to keep the owner and their respective family out of poverty.
• Conversely, 57.9% of businesses with employees had annual sales in excess of $249,999. Needless to say, it is more likely that the business is earning enough money to provide for their owners.
According to the data in from the Small Business Administration:
• 70.9% of all businesses are White- owned. These businesses account for 88% of all sales in the United States and 86.5% of U.S. employment opportunities.
• 12.2% of all businesses are Latino-owned. These businesses account for 4% of all sales in the United States and account for 4.2% of U.S. employment opportunities.
• 9.5% of all businesses are Black-owned. These businesses account for 1.3% of total American sales and 1.7% of U.S. employment opportunities.
• White businesses start with an average of $106,702 in capital
• Black businesses start with an average of $35,205 in capital
• Less than 3% of venture capital funding goes to Black or Latino founders
• Less than 1% of venture capital funding goes to Black or Latino female founders.
The last two statistics are important to emphasize because it shows the decreased likelihood that minority owners will be able to grow their organizations to provide jobs in their local communities. Although entrepreneurship can improve the incomes of their individual families, without additional funding it doesn’t improve the community at-large. Furthermore, organizations require more money as it grows.
The diagram reflects the twenty components that must be developed in any organization to get it to run like a well-oiled engine.