Top of Mind's 5 Must-Read Articles in Entrepreneurship
Last week tax season finally ended, as I'm sure most of you are still trying to forget. I was pretty sure I couldn't stand the sight of any more numbers for the time being, but then I came across an article with numbers I actually cared to take note of--the amount of money an entrepreneur would have to earn to make the equivalent of someone working a job for someone else.
The chart factors in the benefits of full-time work, things like retirement contributions and health insurance, compared to the added expenses of entreprenruship that aren't always top of mind when starting a company, including book keeping fees and office expenditures.
Spoiler alert: the financial comfort of full-time work doesn’t exactly balance with those of the first few years of starting a business. I bring this up not to crush any dreams of starting a new venture, but rather, to give those thinking of taking the leap a better sense of the reality they’re getting themselves into. This look at starting a venture puts very real numbers in front of those who need to be thinking about these things most. Those contemplating it need to know how they’re going to support themselves and (as was in my case) their family when they no longer have the security of a full-time job.
Entrepreneurship has been one of my most rewarding life experiences. It was a life-changer for me, as well as those I’ve witness going through it while at the foundation. But like any great reward, it doesn’t come without risk. Those who prepare for these risks in advance and create growing businesses will, in the end, have much more reward than monetary success.
Find out exactly how much of that risk comes from a guaranteed income.
How Much Do I Have To Make As An Entrepreneur To Replace My Day Job Income?
This interesting exercise gives future entrepreneurs a rough estimate of how much they have to make as an entrepreneur to make the equivalent amount of money as someone with a full-time job.
There Is No 'Next Silicon Valley'
According to CB Insights, venture capital made the most investments this year than they have since 2001. Companies have apparently raised a little under $10 billion in 880 separate deals over these past three months. Venture capital funding did not go to any of the following states: Alabama, Alaska, Idaho, Maine, Mississippi, Montana, North Dakota and West Virginia. States can call themselves the next Silicon Valley, but the reality is that the valley is still the clear leader in terms of venture deals.
Gov. Patrick's Proposed Global EIR Program is a Reassuring Step, But Will it Be Enough?
Governor Deval Patrick announced a Global Entrepreneur in Residence Program last Thursday. This plan is actually a loophole in federal immigration law to keep skilled international students in the Massachusetts post-graduate program. This program could increase the amount of H-1B visas that Massachusetts is given.
Infographic: Kauffman Index of Entrepreneurial Activity, 1996-2013
Entrepreneurship took a dip in 2013, returning to pre-recessionary levels from 2006. The percentage was at .28 percent. In regards to demographics, between 2003 and 2013, new Latino entrepreneurs increased from 16.0 to 20.4 percent. Entrepreneurs ages 45-54 grew from 25.2 to 30.0 percent. The growth in immigrant population and in entrepreneurial ventures can be attributed to a rise in new immigrant entrepreneurs from 19.1 to 25.9 percent. Women are still starting fewer companies than men.
Big Banks Ramp Up Business Lending
Banks are ramping up their lending for companies that are seeking more money. A new fixed-rate 10-year commercial loan dropped to 2.89 percent from 4.51 percent in January. The Federal Reserve Bank found that 14 percent of banks relaxed commercial and industrial loan standards to borrowers of different sizes in the 4th quarter of 2013.
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