Entrepreneurship as a career option - Revision history

Vipul: /* Social value */

2014-05-19T22:35:23Z

Social value

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	* If your expected earnings are higher as an entrepreneur than they are in other careers, then the expected amount that you can donate to charity is higher than it is if you pursue other careers. If you donate a large fraction of your earnings to highly effective charities such as those recommended by [http://www.givewell.org/ GiveWell], the expected social value that you're able to contribute as a result of pursuing entrepreneurship is enhanced substantially.		* If your expected earnings are higher as an entrepreneur than they are in other careers, then the expected amount that you can donate to charity is higher than it is if you pursue other careers. If you donate a large fraction of your earnings to highly effective charities such as those recommended by [http://www.givewell.org/ GiveWell], the expected social value that you're able to contribute as a result of pursuing entrepreneurship is enhanced substantially.

	* There's high variance in social value produced beyond what's captured by income. For example, Google doesn't earn income from those who use its products, and so produces social value out of proportion with its earnings. In the other direction, game developer Zynga arguably [http://www.thewire.com/business/2012/04/your-stupid-game-addiction-earned-zynga-321-million-last-quarter/51628/ does harm] on account of fostering addictive behavior amongst clients. If you're an entrepreneur, you can make a product that produces [~~http~~:~~//en.wikipedia.org/wiki/~~Externality#Positive positive externalities] while minimizing [~~http~~:~~//en.wikipedia.org/wiki/~~Externality#Negative negative externalities], thereby contributing social value out of proportion with your earnings.		* There's high variance in social value produced beyond what's captured by income. For example, Google doesn't earn income from those who use its products, and so produces social value out of proportion with its earnings. In the other direction, game developer Zynga arguably [http://www.thewire.com/business/2012/04/your-stupid-game-addiction-earned-zynga-321-million-last-quarter/51628/ does harm] on account of fostering addictive behavior amongst clients. If you're an entrepreneur, you can make a product that produces [[wikipedia:Externality#Positive\|positive externalities]] while minimizing [[Wikipedia:Externality#Negative\|negative externalities]], thereby contributing social value out of proportion with your earnings.

	See also		See also

Vipul: /* Social value */

2014-03-23T21:37:29Z

Social value

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	== Social value ==		== Social value ==

			{{further\|[[social value of entrepreneurship]]}}

	* In general, [[Social value of work: income as a proxy\|earnings are correlated with social value produced]]. The fact that entrepreneurs' earnings are highly variable reflects high variance in social value produced.		* In general, [[Social value of work: income as a proxy\|earnings are correlated with social value produced]]. The fact that entrepreneurs' earnings are highly variable reflects high variance in social value produced.

Jsinick: /* Relevant personal characteristics */

2014-02-17T00:48:54Z

Relevant personal characteristics

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	Some characteristics relevant to being a successful entrepreneur are:		Some characteristics relevant to being a successful entrepreneur are:

	* Famous venture capitalist Paul Graham [http://paulgraham.com/notnot.html ~~cites~~] ~~'''determination''', saying it's~~ probably the biggest predictor of success.		* '''Determination.''' Famous venture capitalist Paul Graham [http://paulgraham.com/notnot.html says] that this is probably the biggest predictor of success.
	* Strong ability to work independently without much guidance or supervision.		* Strong ability to work independently without much guidance or supervision.
	* Tolerance of high uncertainty. It's often very unclear whether or not an enterprise will succeed, and whether one is working in the right direction at any given time.		* Tolerance of high uncertainty. It's often very unclear whether or not an enterprise will succeed, and whether one is working in the right direction at any given time.

Vipul at 17:45, 13 February 2014

2014-02-13T17:45:37Z

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			{{career option\|entrepreneurship}}

	Entrepreneurs start businesses.		Entrepreneurs start businesses.

Jsinick at 20:39, 11 February 2014

2014-02-11T20:39:14Z

← Older revision		Revision as of 20:39, 11 February 2014
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	Entrepreneurs start businesses.		Entrepreneurs start businesses.


	* In order to be a successful entrepreneur, you need to have unusual personal characteristics.		* In order to be a successful entrepreneur, you need to have unusual personal characteristics.

Jsinick at 20:38, 11 February 2014

2014-02-11T20:38:55Z

@@ Line 1: / Line 1: @@
 Entrepreneurs start businesses.
 * The variance in earnings of entrepreneurs is enormous. Some become multibillionaires, and others go bankrupt. Most entrepreneurs could make more money doing something else, but there's a possibility of making far more money than you would be able to in other careers.
 * As with earnings, the variance in social value that entrepreneurs produce is enormous. As a group, entrepreneurs contribute a great deal of social value, but most produce very little social value.
 If you're interested in the possibility of pursuing entrepreneurship, see our [[entrepreneurship learning recommendations]].
 == Relevant personal characteristics ==
@@ Line 34: / Line 25: @@
 Paul Graham lists factors that he thinks should not play a major role in whether or not somebody should become an entrepreneur in [http://paulgraham.com/notnot.html Why to not not found a startup]. Some of the factors that he lists are factors that we've listed as relevant. Even if some of the characteristics that we list above are not strictly necessary, they still increase one's expected success, and whether one has them should play some role in one's decision.
 == Social value ==

Jsinick: /* Social value */

2014-02-11T19:55:57Z

Social value

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	* The average earnings of entrepreneurs of a given quality are higher than the earnings of the average entrepreneur of the same quality. So your [http://en.wikipedia.org/wiki/Expected_value expected earnings] (in the technical sense) if you do entrepreneurship are higher than your ''probable earnings'' if you do entrepreneurship. Because most people care more about their probable earnings than their expected earnings (on account of [http://en.wikipedia.org/wiki/Risk_aversion risk aversion]), this is a consideration in favor of entrepreneurship having higher expected social value than other careers do. If you're equally good at entrepreneurship and another career, you can probably contribute more expected social value (as measured by earnings) as an entrepreneur than if you pursue the other career.		* The average earnings of entrepreneurs of a given quality are higher than the earnings of the average entrepreneur of the same quality. So your [http://en.wikipedia.org/wiki/Expected_value expected earnings] (in the technical sense) if you do entrepreneurship are higher than your ''probable earnings'' if you do entrepreneurship. Because most people care more about their probable earnings than their expected earnings (on account of [http://en.wikipedia.org/wiki/Risk_aversion risk aversion]), this is a consideration in favor of entrepreneurship having higher expected social value than other careers do. If you're equally good at entrepreneurship and another career, you can probably contribute more expected social value (as measured by earnings) as an entrepreneur than if you pursue the other career.

	* If your expected earnings are higher as an entrepreneur than they are in other careers, then the expected amount that you can donate to charity is higher than it is if you pursue other careers. If you donate a large fraction of your earnings to highly effective charities such as those recommended by [http://www.givewell.org/ GiveWell], the social value that you're able to contribute as a result of pursuing entrepreneurship is enhanced substantially.		* If your expected earnings are higher as an entrepreneur than they are in other careers, then the expected amount that you can donate to charity is higher than it is if you pursue other careers. If you donate a large fraction of your earnings to highly effective charities such as those recommended by [http://www.givewell.org/ GiveWell], the expected social value that you're able to contribute as a result of pursuing entrepreneurship is enhanced substantially.

	* There's variance in social value produced beyond what's captured by income. For example, Google doesn't earn income from those who use its products, and so produces social value out of proportion with its earnings. In the other direction, game developer Zynga arguably [http://www.thewire.com/business/2012/04/your-stupid-game-addiction-earned-zynga-321-million-last-quarter/51628/ does harm] on account of fostering addictive behavior amongst clients. If you're an entrepreneur, you can make a product that produces [http://en.wikipedia.org/wiki/Externality#Positive positive externalities] while minimizing [http://en.wikipedia.org/wiki/Externality#Negative negative externalities], thereby contributing social value out of proportion with your earnings.		* There's high variance in social value produced beyond what's captured by income. For example, Google doesn't earn income from those who use its products, and so produces social value out of proportion with its earnings. In the other direction, game developer Zynga arguably [http://www.thewire.com/business/2012/04/your-stupid-game-addiction-earned-zynga-321-million-last-quarter/51628/ does harm] on account of fostering addictive behavior amongst clients. If you're an entrepreneur, you can make a product that produces [http://en.wikipedia.org/wiki/Externality#Positive positive externalities] while minimizing [http://en.wikipedia.org/wiki/Externality#Negative negative externalities], thereby contributing social value out of proportion with your earnings.

	See also		See also

Jsinick: /* Social value */

2014-02-11T19:55:14Z

Social value

← Older revision		Revision as of 19:55, 11 February 2014
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	== Social value ==		== Social value ==

	* In general, [[Social value of work: income as a proxy\|earnings are correlated with social value]]. The fact that entrepreneurs' earnings are highly variable reflects high variance in social value produced.		* In general, [[Social value of work: income as a proxy\|earnings are correlated with social value produced]]. The fact that entrepreneurs' earnings are highly variable reflects high variance in social value produced.

	* The average earnings of entrepreneurs of a given quality are higher than the earnings of the average entrepreneur of the same quality. So your [http://en.wikipedia.org/wiki/Expected_value expected earnings] (in the technical sense) if you do entrepreneurship are higher than your ''probable earnings'' if you do entrepreneurship. Because most people care more about their probable earnings than their expected earnings (on account of [http://en.wikipedia.org/wiki/Risk_aversion risk aversion]), this is a consideration in favor of entrepreneurship having higher expected social value than other careers do. If you're equally good at entrepreneurship and another career, you can probably contribute more expected social value (as measured by earnings) as an entrepreneur than if you pursue the other career.		* The average earnings of entrepreneurs of a given quality are higher than the earnings of the average entrepreneur of the same quality. So your [http://en.wikipedia.org/wiki/Expected_value expected earnings] (in the technical sense) if you do entrepreneurship are higher than your ''probable earnings'' if you do entrepreneurship. Because most people care more about their probable earnings than their expected earnings (on account of [http://en.wikipedia.org/wiki/Risk_aversion risk aversion]), this is a consideration in favor of entrepreneurship having higher expected social value than other careers do. If you're equally good at entrepreneurship and another career, you can probably contribute more expected social value (as measured by earnings) as an entrepreneur than if you pursue the other career.

Jsinick: /* Social value */

2014-02-11T19:54:50Z

Social value

← Older revision		Revision as of 19:54, 11 February 2014
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	== Social value ==		== Social value ==

	* In general, [[Social value of work: income as a proxy		* In general, [[Social value of work: income as a proxy\|earnings are correlated with social value]]. The fact that entrepreneurs' earnings are highly variable reflects high variance in social value produced.
	\| earnings are correlated with social value]]. The fact that entrepreneurs' earnings are highly variable reflects high variance in social value produced.

	* The average earnings of entrepreneurs of a given quality are higher than the earnings of the average entrepreneur of the same quality. So your [http://en.wikipedia.org/wiki/Expected_value expected earnings] (in the technical sense) if you do entrepreneurship are higher than your ''probable earnings'' if you do entrepreneurship. Because most people care more about their probable earnings than their expected earnings (on account of [http://en.wikipedia.org/wiki/Risk_aversion risk aversion]), this is a consideration in favor of entrepreneurship having higher expected social value than other careers do. If you're equally good at entrepreneurship and another career, you can probably contribute more expected social value (as measured by earnings) as an entrepreneur than if you pursue the other career.		* The average earnings of entrepreneurs of a given quality are higher than the earnings of the average entrepreneur of the same quality. So your [http://en.wikipedia.org/wiki/Expected_value expected earnings] (in the technical sense) if you do entrepreneurship are higher than your ''probable earnings'' if you do entrepreneurship. Because most people care more about their probable earnings than their expected earnings (on account of [http://en.wikipedia.org/wiki/Risk_aversion risk aversion]), this is a consideration in favor of entrepreneurship having higher expected social value than other careers do. If you're equally good at entrepreneurship and another career, you can probably contribute more expected social value (as measured by earnings) as an entrepreneur than if you pursue the other career.

Jsinick: /* Relevant personal characteristics */

2014-02-11T19:54:10Z

Relevant personal characteristics

← Older revision		Revision as of 19:54, 11 February 2014
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	* Willingness to accept the risk of not accomplishing anything significant. Most apparently promising ideas don't lead anywhere.		* Willingness to accept the risk of not accomplishing anything significant. Most apparently promising ideas don't lead anywhere.

	Carl Shulman at the 80,000 Hours blog [~~lists](~~http://80000hours.org/blog/23-entrepreneurship-a-game-of-poker-not-roulette):		Carl Shulman at the 80,000 Hours blog [http://80000hours.org/blog/23-entrepreneurship-a-game-of-poker-not-roulette lists]:

	* Ability to recognize when your product is not promising. Many startup founders are unwilling to acknowledge evidence that their product is not a good one.		* Ability to recognize when your product is not promising. Many startup founders are unwilling to acknowledge evidence that their product is not a good one.