Can I make a living as an Entrepreneur?

Posted by: Josh Walsh in Entrepreneurship.

I have a difficult time explaining what I do to my grandfather.  He bears his skeptical face when I tell him that I’m an entrepreneur on the internet.

“Trying to strike it rich, eh?”

Truthfully, I don’t think he understands how I feed my family, but that’s ok.   But, this story does bring up a question that’s raised all the time among prospective entrepreneurs.

Can I strike it rich if I go on my own?

My response is always “yes and no.”  Chad Moutray, the Chief Economist of the Office of Advocacy of the U.S. Small Business Administration, published some of his research on the income likelihood of entrepreneurs.  His research backs up my response nicely.

Chances of Striking It Rich

If you want to be wealthy, then entrepreneurship is your best shot.  I’m not talking about being super wealthy, rather making a consistent $100,000+ income each year.

Chances of being Dirt Poor

However, entrepreneurs are also the most likely to live below the poverty line (by a wide margin).

I just want to Make a Decent Living

If your goal is to make an average income and live comfortably, you are better off getting a “real job.”