The Rational Reminder Podcast · Thursday, September 24, 2026
Analysis of entrepreneurs shows that, on average, starting a business yields higher earnings than not doing so, even after accounting for failures. The median person also makes more money, suggesting that the potential upside of entrepreneurship outweighs the statistical risk, especially when considering the skills gained.
“And on average, they make a lot more money, like, I think it's like $18k more. The median person also makes more money by $5k.”
“And so, you know, you get this big upside of the downside is actually not quite as bad, just from a statistical point of view.”
“Because if you go and start a business, and you run it for a bit, even if it's not successful, you probably gain a lot of skills. You can go work for somebody else using that expertise.”