A study recently released by the SBA’s Office of Advocacy has some interesting findings related to entrepreneurship, income and wealth. The study finds that in 2001 small business-owning households were more than twice as likely as non-owning households (57.1 percent to 25.5 percent) to be high income (defined as at least $50,000 in family income).
The study also found that small business owners were over eight times more likely (21.2 percent to 2.5 percent) to be high wealth households. High wealth is defined as having at least $1 million in family net worth.
Dr Jeff Cornwall
Co-founder of The Entrepreneurial Mind, serial entrepreneur and professor of entrepreneurship.
I think this is a good study. Like Andrew Carnegie said “Is any would be businessman…content in forecasting his future, to figure himself as labouring all his life for a fixed salary? Not one, I am sure. In this you have the dividing line between business and non-business; the one is master and depends on profits, the other is servant and depends on salary”. So for families with small businesses, the harder they work and the better they manage their business, the higher profit they can earn. Whereas, an employee works and works until his annual review comes around in hopes of a big raise.