The SBA Office of Advocacy has released a study conducted by George Haynes, Income and Wealth: How Did Households Owning Small Businesses Fare from 1989 to 2004?
This study extends work previously sponsored by the Office of Advocacy for the study of income and wealth of business owner households using the Survey of Consumer Finance (SCF), the most recently available data being
2004. By examining two sub-periods, from 1989 to 2004 and 1992 to 2004, the study concluded that:
– Families owning businesses remained significantly more likely to be high income earners and high wealth holders than families not owning businesses. In fact, the income gap widened between business and non-business owners during this time.
– Income and wealth for households owning businesses are more sensitive to fluctuations in economic activities. After all, there is risk in owning a business!
– Owning multiple businesses leads to even greater prosperity.
Dr Jeff Cornwall
Co-founder of The Entrepreneurial Mind, serial entrepreneur and professor of entrepreneurship.
This was interesting, I think that people that are earning a high amount of income by being a entrepreneur requires a lot of discipline to constantly be adapting their business to changes in the marketplace environment. Also, when you see people with a lot of wealth, it was probably generated by multiple ways. When it comes to wealth and income… It is a good thing to not have all your eggs in one basket.