[crazygringo]

But that's exactly the problem.

20-something's shouldn't be wasting their time on things that, with a mature person's wisdom, aren't worth risking their time on. Rather they're better off gaining experience so they have good judgment when they're 40-something.

And 40-something's can handle it with a family and mortgage, because they're not naive enough to think you need to live on ramen to make it big. No: they have connections, put together a team, raise capital like the professionals they are, and continue to pay themselves a salary that can support a family.

Having an appetite for risky things is dumb. Isn't there a quote somewhere about how successful businessmen don't take risks? They try to only do things that seem to be a sure bet, and try to only use other people's money.

[Jagat]

Depends on whom it's good for.

For the 80%(?) of the young entrepreneurs who fail, not so much.

For the city/country that produces a massive company founded by young risk taking individuals - a lot. (Apple, Google, Microsoft, Facebook, Twitter, Airbnb etc)

Thinking of it as the explore-exploit method. Most of the explorers fail. Some of them turn in huge successes.

From a collectivist perspective, the net gain from these successes may dwarf whatever the over-exploitation that non-young non-risk taking individuals would generate.

[treyfitty]

Very well said. Though It’s disheartening to read and a tough pill to swallow.

[xpe]

> Having an appetite for risky things is dumb.

Not necessarily. People have different risk profiles and different ways they value experience. For example, consider this combination: (1) low cost to risk-taking; (2) large financial upside; (3) long-term benefits from the experience; (4) intrinsic enjoyment of the process. My point: there are times when starting a risky business is rational.

[crazygringo]

But that’s exactly my point: if it’s low-cost and large upside, then it’s not exactly a risk is it? It’s just a smart choice.

Risky things are where there’s a large chance of failure while putting all your eggs in one basket, and/or failure comes at a big cost.

The only time starting a "risky" business is rational is when you’re an investor with tons of money so the downside is minimal, or you’re the founder and will enjoy the experience regardless and will lose someone else’s money, not your own. But then, while the “business” is risky, it’s not actually a big risk for either party.

[barry-cotter]

Risk aversion is a taste, not a moral rule. I ended up living in the family home with no employment and very limited money several times in my 20s and everything has turned out fine. If you have a secure fallback petition in case of failure why not take risks?

[ownagefool]

HN obviously has a bias, but such risks when they involve not paying invoices or staff does have a moral composition.

I worked a couple of months for a startup that just didn't pay me. Now I don't believe people should be forced into indentured servitude, but the guys undertaken the same trick several times and many don't neccessairly agree that the slate is morally wiped clean when your 7th startup is finally a success after leaving a trail of misery behind you.

[treyfitty]

Because I have a taste for risk aversion just like one has a taste for hookers and blow. To each their own.

[friendlybus]

Not taking risks is the exact formula that leads to Kodak ditching the DSLR. 3M is built on engineer ingenuity and risk taking. The reason we have 'disruptive' companies like Uber and Netflix is because the old industries did nothing to capitalize upon the internet.

40s something's with capital can. Not everybody can get the capital to take the risks.

[nocman]

"Having an appetite for risky things is dumb."

Well, I guess that depends on how big an appetite we're talking about. I think perhaps older more experienced people might tend to take less stupid risks. But if you don't take any risks at all you rarely get a big payout.

Perhaps the trend with the more experienced is that they have a better idea how big of a risk they can afford to take (without losing their shirt over the deal if it falls through).

[koonsolo]

Business is always risky. But if you have a limited downside, and an huge upside, you are onto something.

Most of the time what regular people think is risky, is actually not because it has a tiny downside. Failing doesn't have to mean that you lost everything.

[Axsuul]

Starting a business is a huge risk in itself. And you have to start early to get used to failing, otherwise you wouldn't be comfortable taking this risk. Yes, your chances of succeeding might increase as you get older but the odds are still overwhelmingly against you. That puts your family at risk so technically you are in a better position to fail and retry again when you have less people depending on you.