Many wonder how rich can you become as an entrepreneur. On-screen, entrepreneurs wear designer clothes, live in huge mansions and drive sports cars. Seeing successful people on the news or in movies creates an image that everyone who runs a business is extremely wealthy, but is that so in real life?

In this article, you will learn how much money entrepreneurs earn in real life and if they are really as rich as one might think. For more insights from experienced entrepreneurs, sign up for our EWOR Platform and gain access to over 17 courses and a plethora of resources.

The Idea Behind Becoming Wealthy

Being wealthy is something many people desire. The idea of becoming rich first became popular in 1931 when James Adams introduced the term “American Dream” in his book, The Epic of America

One of its elements was turning one’s life around and becoming prosperous. The idea became well-known around the world, not just in the United States. It showed that with enough dedication and time, you can also achieve great success and become wealthy.

Entrepreneurship is an expression of this dream. It creates an illusion that with a business plan, a great strategy and a team, you can also become rich. Some people are tired of working 40 hours per week and decide that with entrepreneurship they can be their own boss, and have more free time and money. As a result, it looks like a great option to try. But how much money can they actually earn?

The Average Salary of Entrepreneurs

The average salary of entrepreneurs differs depending on sources. According to Career Explorer, the average salary is about $43,240 a year in the United States. The low bottom is $29,100 and the highest is $134,000 per year. Zippia claims that the average salary is around $70,849 yearly, with the lowest at $42,000 and the highest at $118,000 per year.

According to Seedcamp, entrepreneurs in the United Kingdom earn from £49,000 to £103,000 depending on their level of experience. In the rest of Europe, the number is lower, starting from €40,000 to €114,000 per year.

These numbers are actually not that high compared to other professions like physicians who earn around $200,000 and lawyers around $150,000 a year in the United States. So, why do people have the idea that entrepreneurs are extremely rich?

Percentage of Extremely Rich Entrepreneurs

We often see and hear success stories about people who made their way and achieved great success. Stories about Mark Zuckerberg, Bill Gates, Steve Jobs and Elon Musk. However, there are not as many successful entrepreneurs as one might think.

According to Fortune, the world’s richest people hold 11% of the world’s wealth.  These are 520,000 people who have more than $19 million in fortune. It’s 0.01% of the world’s population. Moreover, individuals whose worth is over $1 million constitute just 1.1% of the population, claims Visual Capitalist.

In the statistics, all professions are included. Some counties have better conditions for entrepreneurship than others, and the numbers vary. What is certain is that the amount of entrepreneurs among the world’s richest people is not high, only about 60%. 

It looks like there are a lot of rich people, but that’s not true. Because you hear about the richest and most successful people in the news, see movies and read books about them, you might think that all entrepreneurs are rich.

Chances of Success and Failure

There is always a chance of making your business successful and profitable. But, according to Forbes, 90% of startups fail. It has to do with things like bad business plans, no market, not enough money, a bad location, or bad marketing strategies. Too much growth is also bad for the business, and it can cause the business to fail.

However, human factors also play a huge role in whether a business will succeed. According to Entrepreneur, many people experience a lack of confidence that prevents them from pursuing their dreams or making important changes to their businesses. Another thing that can get in the way of success is a lack of motivation and a feeling of being lazy. It’s also important to have clear goals because if you’re not sure what you want your business to do, that will show.

The good news is that if you start your business with a clear goal, then your chances of success are much higher. If you’ve done your preparation, then you most likely know what to expect and what difficulties other companies had experienced. It can help you to learn from their mistakes and avoid similar pitfalls.

Entrepreneurs Are Also Rich In…

As we’ve established, most entrepreneurs don’t earn enough money to have a lavish lifestyle. But, apart from the material side, there are other advantages of entrepreneurship. These are:

Critical Thinking

Recognising and fixing problems is one of the tasks of entrepreneurs. You will discover new creative ways to make your company grow. Critical thinking will help you make well-thought-through decisions and analyse situations in an unbiased way.

Personal Fulfilment

Starting something from scratch, and watching your company grow and expand, brings a lot of satisfaction to your life. It boosts your self-esteem and provides a sense of accomplishment. Moreover, it also increases your confidence and allows you to undertake new projects as you’ve already succeeded in the past.

Freedom

You no longer have to work 40 hours per week if you don’t want to. The beauty of being your own boss is that you get to manage your time. Moreover, as an entrepreneur, you get to innovate and take risks. You no longer need to wait for someone’s approval of your ideas, you can just start bringing them to life. Another benefit is you get to choose the location of your office, or maybe you want to work remote. You get to choose who to work with and if someone is not great for your company, you can find someone else who is more skilled. Most importantly, you get to do what you like.

Experience

Learning how to build a company and meet new people creates an experience you can’t replicate with anything else. You will learn to understand the customer better and build new products they are interested in. Effective communication is one of the many things entrepreneurs master during their work. Furthermore, they learn to be flexible and have a strong focus that allows them to spot problems and eventually fix them. 

Network

While running your business, you will meet new people and become acquainted with various experts. These people can help you improve your business strategies and introduce you to successful experts in the field. It can in turn benefit your business and promote its growth.

If speaking in public is not for you, there are plenty of other types of networking events you can choose from. Check out our article Must-Know Types of Networking Events to learn more about it. If you’ve never been to a networking event, check out our article on tips to ensure success.

So, Are All Entrepreneurs Rich?

If talking about the material side, then the answer is no. But many entrepreneurs make enough money to have a good life and be their own bosses. Of course, some lucky people achieve tremendous success, but it is quite rare. The idea that all entrepreneurs are extremely rich is nothing more than a myth. However, entrepreneurs also gain a lot of other benefits, like freedom and connections. For some people, it can be more valuable than some extra zeroes in their paychecks.

About the author
EWOR Team

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