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Business Quote by Dinesh D'Souza

“A third entrepreneurial contribution is risk. While labor gets paid its fixed wage, the entrepreneurs take all the risk. Entrepreneurs might do well, but they might also lose money, ending up worse than they were before they started. The worker’s risk is much lower: at worst, he’s out of a job and…” quote by Dinesh D'Souza
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““A third entrepreneurial contribution is risk. While labor gets paid its fixed wage, the entrepreneurs take all the risk. Entrepreneurs might do well, but they might also lose money, ending up worse than they were before they started. The worker’s risk is much lower: at worst, he’s out of a job and doesn’t get additional wages. No one, however, asks the worker to receive wages only if the company does well, or to give back wages to help the company meet its obligations. So these distinctive entrepreneurial contributions—ideas, organization, and risk—are very different from “labor,” indeed they involve the establishing of a system that then enables labor to function. If labor gets paid “wages” in return for its contributions, entrepreneurs get paid “profits” in return for theirs. There is nothing inherently unfair about that, even when the profits are substantial, since without entrepreneurs, the workers would not have their jobs. Moreover, the parking lot guy seems to be suffering from an optical illusion. He thinks that he is doing the work of parking the car, but he is merely the last man in a chain of employees who are getting this particular job done. The parking lot guy wonders, “All I got paid was $100. Where did the rest of the money go?” Well, it went to all the other people who created and designed, and continue to maintain and manage a resort property in which it is feasible to charge $25 per day to park a car. Instead of wallowing in his grievances, and voting for Obama, the parking lot guy would do better for himself if he asked, “How can I become one of the managers?” or “How can I start a company that builds and operates parking lots?””

Dinesh D'Souza

About This Quote

Source Book: The Big Short of the American Dream, Dinesh D'Souza, 2013

Entrepreneurs bear financial risk and create systems that enable labor, while workers face limited risk and receive wages.

In simple terms: Entrepreneurs take risk, workers get wages.

Key Takeaway

Recognize risk and seek higher roles.

Themes

economics entrepreneurship labor risk systems

Mood

analytical critical motivational

Type

observational inspirational

When to use this quote

  • Starting a business
  • career advancement
  • financial planning
  • employee empowerment
  • industry analysis

Key Concepts

Risk management value creation capital allocation

Questions to Reflect On

  • How can workers transition to entrepreneurial roles?
  • What safeguards protect entrepreneurs from catastrophic loss?
A Different Perspective

Entrepreneurial risk can lead to failure and loss, not just profit.

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